**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|



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**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 CENTRAL ENGLAND AREA QUAKER MEETING CHARITIES** 

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

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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## **THE CENTRAL ENGLAND AREA QUAKER MEETING CHARITIES** 

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

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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## **THE CENTRAL ENGLAND AREA QUAKER MEETING CHARITIES** 

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

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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## **THE CENTRAL ENGLAND AREA QUAKER MEETING CHARITIES** 

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

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: - 

- March 2020 – report on the work of trustees in 2019, and request for approval from Area Meeting to the transfer of Kings Heath Meeting House from South Birmingham Friends Institute Trust to CEQ (agreed) 

- June 2020 – request for approval from Area Meeting to a grant of £50,000 from the Selly Wood House Fund to the Woodlands Quaker Home Resident’s Support Fund (agreed) 

- July 2020 – briefing on a proposal to employ a Principal Officer for the Area Meeting 

- September 2020 - request for approval to the Principal Officer proposal (agreed) 

- October 2020 – request for approval from Area Meeting to changes to the charity’s Governing Document (primarily to permit trustees to meet and make decisions by video-conferencing, but with some other minor updating).  At the same Area Meeting Trustees Finance Committee ran a workshop titled “ _Understanding Area Meeting Finances_ ”.  Also, in October the 2019 CEQ Report & Accounts were tabled, and an illustrated summary of the Report and Accounts “ _Central England Quakers in 2019_ ” was widely distributed.  Area Meeting was informed of the Service Agreement with the Priory Rooms to provide management services for trustees, and the recruitment of the Principal Officer was put on hold. 

- November 2020 – presentation given to Friends on the central funds’ forecasts for 2020 and budget proposals for 2021, and approval by Area Meeting of the 2021 budgets. 

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

1. Finance 

2. Property 

3. Employment 

4. Records Advisory 

5. Governance & Compliance 

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## **THE CENTRAL ENGLAND AREA QUAKER MEETING CHARITIES** 

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

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 

- General Fund Treasurer 

- Treasurer to Trustees (ex-officio) 

- Administration Treasurer 

- Investment Treasurer 

- Contribution Schedule Treasurer 

- Local Meeting Support 

- Finance Administrator (ex-officio) 

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: - 

- a) Central Funds: 

|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<br>£4,375|
|Offset by Birmingham City Council grant<br> (£10,000)|
|Net additional expenditure<br>£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. 

- c) Priory Rooms (Bull Street) Ltd. 

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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**THE CENTRAL ENGLAND AREA QUAKER MEETING CHARITIES** 

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

## _**Investment Policy and performance**_ 

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

- _Central investment portfolios_ – these comprise the Building Fund and General Fund investments.  During 2020 the centrally-held investments increased by 6%, and despite the sale of £48,000 of Building Fund investments (to fund building projects) the combined portfolio value at 31 December 2020 was close to the 1 January opening value at £690,892. 

- _Trustee Reserve Funds_ - five separate funds, four of which have arisen from the historical proceeds of sale of land or properties (described in Notes 17 and 18 to the accounts) are invested in CCLA COIF Charities Ethical Investment Fund (income units).  This fund is managed by CCLA and monitored by the Finance Committee. During 2020 the CCLA fund unit price increased by 6%, and the combined value of the four Reserve Funds at 31 December 2020 was £466,550.  The fifth Reserve Fund is the Selly Wood House Fund, which is invested in CCLA COIF Charities Ethical Investment Fund (accumulation units) which is described in Note 18 to the Accounts. During the year £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 the Woodlands Quaker Home (£50,000).  The residual balance at 31 December 2020 was £193,688. 

- _Local Meeting and Branch Investments_ - some (but not all) Local Meetings and Branches hold investments which form part of their individual reserves. These funds are managed by the LMs/Branches themselves.  In many cases the investments are in professionally managed unit trusts, but in the case of independently managed portfolios, investment decisions are generally based on professional advice, via a nominated broker. Encouragement has been to given to Local Meetings to invest “spare cash” in the CCLA COIF Ethical Investment Fund, recognising that money held in bank accounts currently earns little or no interest. 

## _**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: 

- to ensure that the charity has adequate funds to undertake its charitable activities and protect itself from fluctuations in income or expenditure; and 

- to reassure CEQ members and the public that it is using its income for charitable work, and not accumulating excessive reserves. 

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: 

- _General and Trustee Funds (Unrestricted)_ - These central funds are used to manage the overall charity’s objectives and encompass a number of individual funds and purposes. The reserves policy for these funds is summarised in a table below. 

- _Local Meetings and Branches (Restricted and Designated)_ – All Local Meetings and Branches should cover their own financial risks as per the charity’s Memorandum of Understanding. 

- _Building Fund investments (Restricted)_ – Income from the investments is needed to cover annual grants to Local Meetings to avoid using capital.  Average grants are assumed as c. £12,000 per annum with an assumed investment yield of 2.5%. Therefore, target value is £480,000 minimum (value at 31 December 2020: £477,925). 

- _Building Fund bank account (designated)_ is used to support everyday grants and cash flow loans to Local Meetings to cover their building repairs and maintenance.  A minimum cash balance of £30,000 is set for this reserve (value at 31 December 2020: £69,911, but this includes a £40,000 cash contribution from South Birmingham Friends Institute Trust – see property section below – which will be carried forward to 2021). 

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**THE CENTRAL ENGLAND AREA QUAKER MEETING CHARITIES** 

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

- _Trustee Reserve Funds (Restricted and Designated)_ – These (historical) funds with income mandated to Local Meetings are separately identified (see Notes 17 and 18).  Apart from the Sellywood House Fund (see above), there are no plans to expend the capital. 

- _Black Country Fund (Designated) –_ The Black Country Fund will continue to receive income from the Trustee Reserve Fund of c. £9,000 per annum with no target level of reserves to be held. 

- _Redditch Building Fund –_ This fund was established to make repairs and improvements to Redditch Meeting House (which is no longer used for Meetings for Worship and is currently an investment property). There is no income source, and if and when it is depleted the Trustee Fund will be used for ongoing expenditure. 

_Table: Reserves policy for Trustee and General Funds_ 

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

- 9 - 



## **THE CENTRAL ENGLAND AREA QUAKER MEETING CHARITIES** 

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

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<br>Non-CEQ Quaker charities<br> <br>Britain Yearly Meeting<br> <br>Non-Quaker charities<br> <br>Non-charities<br> <br>TOTAL<br>|£<br>Nil<br>205,797 *<br>43,469<br>25,370<br> 450<br> 275,086|
|---|---|



*  includes £150,000 grants to two “sister charities” (see above) and a £41,500 donation to ecobirmingham (formerly a CEQ Branch but from July 2018 an independent CIO supported by CEQ). 

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: - 

- Issuing regular bulletins containing guidance to Local Meetings (5 issued between June and September) 

- Monitoring and communicating guidance from government, Britain Yearly Meeting and other sources 

- Providing guidance on risk assessments, hygiene, cleaning, amendments to room hire agreements 

- Ensuring the safety of staff and volunteers 

- Ensuring Local Meeting compliance with insurance requirements 

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## **THE CENTRAL ENGLAND AREA QUAKER MEETING CHARITIES** 

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

- Purchase of signage for Meeting Houses (ordered locally, funded centrally) 

- Assisting Meetings with the technology needed to support “blended meetings” 

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: - 

- Distribution of Annual Property Questionnaires to all Local Meetings with properties (not required in 2020 due to the Quinquennial Surveys) 

- Arranging Quinquennial Surveys (implemented in 2020) 

- Reviewing the property section of the “Memorandum of Understanding” (between Local Meetings and trustees) and monitoring compliance (completed in 2019, and scheduled for 2021) 

- Managing the charity’ insurance policies and obtaining building and contents valuations (planned for 2021) 

- Developing a Lettings Policy and providing Local Meetings with a model hire agreement (both were reviewed and revised in 2018) 

- Ensuring that risk assessments are undertaken annually and providing local Premises Committees with templates 

- Promoting awareness of the CEQ Health & Safety Policy, and keeping the property sections of the policy under review 

- Arranging and leading annual gatherings of local Premises Committee representatives.  A very successful gathering was held in October 2019, but due to the pandemic it was not appropriate to arrange one in 2020. 

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: - 

- Garden development project at Warwick Meeting House – this was commissioned in 2018 (and a grant from the Building Fund of £15,000 was awarded that year) but unfortunately the work was delayed by problems with the main contractor.  Work started towards the end of 2019, and a further grant of £10,000 was awarded in February 2020. 

- Repairs to part of a boundary wall at Hartshill Meeting House which collapsed in 2018.  Rectification was delayed by a dispute with the neighbour over ownership, since resolved by means of a boundary agreement signed by both parties.  The first phase of work was finally completed at the end of 2019 (with a grant from the Building Fund of £11,342, paid in March 2020).  A second phase, funded by the Local Meeting from its own resources, was completed in May 2020. 

- Ongoing planning for a major refurbishment of Coventry Meeting House, including the installation of a lift (grant from Building Fund of £11,400 to cover professional fees was awarded in November 2020). 

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## **THE CENTRAL ENGLAND AREA QUAKER MEETING CHARITIES** 

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

- Repairs to Bournville Meeting House following damage to a boundary wall caused by a vehicle (the subject of an insurance claim) - a short term “cash flow” loan of £8,000 was awarded in December 2020. _Note that this was the second incident involving damage to the property by a vehicle in two years._ 

- Repairs to flat roof of Northfield Meeting House (a loan of £5,000 was awarded in April 2020) 

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 

- 12 - 



## **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. 

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## **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** 

- 2020 has demonstrated how changes to plans for the future are sometimes beyond our control.  Covid-19 is still with us, and the future seems more unpredictable.  The plans based on uncertainty – how will the charity emerge from the unusual year? 

- In 2021 Local Meetings will be able to make a financial claim from the insurance broker for Loss of Income. 

- Covid-19 has had an impact on Local Meetings’ ability to manage their property and finance.  A new management system is being developed for four of the Meeting Houses.  Setting up the Meeting House Management Group is the start of this new process. 

- Many smaller Local Meetings are finding it impossible to fill the various roles and the Area Meeting is considering how to simplify the structures locally. 

- 14 - 



## **THE CENTRAL ENGLAND AREA QUAKER MEETING CHARITIES** 

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

- Trustees will undertake a review of the charity’s assets, especially property. This will include the use of Meeting Houses when there is no local meeting. 

- In 2021 trustees will need to draw on reserves, in the region of £80,000.  They will review the reserves policy towards the end of the year in light of pandemic. 

- The Service Agreement with Priory Rooms will continue during 2021 and trustees will review their plans for recruiting a Principal Officer from the experience of having a substantial amount of the administrative work of the charity done by paid staff. 

- The concern for Climate Justice is being highlighted in 2021 with the COP26 meeting in November in Glasgow. The Peace Hub, the Climate Emergency Action Group and Friends in Local Meetings are preparing various actions during 2021 to raise awareness of the climate emergency in the UK as well as the rest of the world. 

- The MoU 2021 will be circulated to all Local Meetings and Branches, and the service committees will respond to the completed check lists as required to ensure compliance. 

- The revised safeguarding children and vulnerable adults’ policy and procedures will be presented to trustees and Area Meeting.  When it is adopted, there will be training for the local safeguarding co-ordinators and adopted by the Local Meetings. 

- The risk register will be updated in the light of the 2020 pandemic. 

## **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: 

- Regular holding of public Meetings for Worship. 

- Provision of information about the Quaker way to “seekers”, through courses, discussion, study groups and literature. 

- Meeting Houses which are used by many different groups, when Covid restrictions permit, and are of value to the local community. 

- Support for a Dance School, which leases Redditch Meeting House, and provides tuition for young people 

- Information on energy-saving and lifestyle improvements through CEQ Climate Emergency Action Group. 

- Training in mediation skills in schools and anti-bullying strategies, provided online by the West Midlands Quaker Peace Education Project (Peacemakers). 

- Gifts of food for families in need, through the Quaker Christmas Parcels Project and involvement with foodbanks in local areas. 

- Housing and care for elderly people, in partnership with other Quaker charities. 

- Funding for overseas work and for witness in UK. 

- Working with Interfaith and Ecumenical groups to further community cohesion and understanding 

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

- All who are interested in the Religious Society of Friends, its worship, values, testimonies, business methods, projects and concerns. 

- Members of CEQ, who are encouraged to participate actively in the work of the charity and its decisionmaking. Quakers have no paid clergy, and volunteers who are given training as required, and acquire knowledge and skills carry out much of the work. 

- “Attenders” at Meetings for Worship, who are permitted to take an active part in many Quaker roles, and who may benefit as above. 

- Local communities, which benefit from the use of Quaker Meeting Houses. 

- Local councils, which may benefit from the use of Meeting Houses as polling stations and councillors’ surgeries. 

- Prisoners supported by Quaker prison chaplains, and Quakers involved in the criminal justice system. 

- Asylum seekers, who are supported by various projects and through the work done on their behalf. 

- Mental health patients in the Birmingham area, who benefit from the work of Quaker chaplains. 

- Older people, through the provision of residential care. 

- People interested in developing a more sustainable, low carbon lifestyle, through the Eco Church scheme and the services of ecobirmingham. 

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**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: 

- select suitable accounting policies and then apply them consistently; 

- observe the methods and principles in the applicable Charities SORP; 

- make judgements and estimates that are reasonable and prudent; 

- state whether applicable UK accounting standards have been followed, subject to any material departures that must be disclosed and explained in the financial statements; and 

- prepare the financial statements on a going concern basis unless it is inappropriate to presume the charity will continue in operation. 

The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the 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: 

- there is no relevant information, being information needed by the auditor in connection with preparing their report, of which the group’s auditor is unaware; and 

- the trustees, having made enquiries of fellow trustees and the group’s auditor that they ought to have individually taken, have taken all steps that they ought to have taken as trustees in order to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information. 

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. 

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## **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: 

- give a true and fair view of the state of the group and charity's affairs as at 31 December 2019 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended; 

- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; 

- have been prepared in accordance with the requirements of the Charities Act 2011. 

## **Basis for opinion** 

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the 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: 

- the Trustee’s use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or 

- the Trustees have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the charity's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue. 

## **Other information** 

The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The Trustees are responsible for the other information. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. 

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. 

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**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: 

- the information given in the Trustees' report is inconsistent in any material respect with the financial statements; or 

- certain disclosures of Trustee remuneration specified by law are not made; or 

- adequate accounting records have not been kept by the parent charity; or 

- returns adequate for our audit have not been received from Branches not visited by us; or 

- the financial statements are not in agreement with the accounting records and returns; or 

- we have not received all the information and explanations we require for our audit. 

## **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. 

- 18 - 



**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: 

- Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. 

- Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control. 

- Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Trustees. 

- Conclude on the appropriateness of the Trustees' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the charity's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the charity to cease to continue as a going concern. 

- Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. 

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 

- 19 - 



## **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**|
||**________**|**________**|**________**|________|



- 20 - 



## **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**|
|||**________**|**________**|**_________**|________|



- 21 - 



## **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**|<br>**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|<br>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 ) 

- 22 - 



**THE CENTRAL ENGLAND AREA QUAKER MEETING CHARITIES** 

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

|**2020**<br>**Total**<br>**Funds**<br>**£**<br>Net movement in funds<br>(377,230)<br>Depreciation Charge<br>105,854<br>Dividends and interest<br>(274,465)<br>Losses/(gains) on investments<br>(56,946)<br>(Increase)/decrease in debtors<br>83,843<br>Increase/(decrease) in creditors and provisions<br>(74,934)<br>  _<br>**Net cash used in operating activities**<br>**(593,878)**<br>**_______**<br>**Cash flows from investing activities:**<br>Dividends and interest received<br>274,465<br>Purchase of fixed assets<br>(116,088)<br>Net sale/(purchase) of investments<br>250,868<br>**_______**<br>**Net cash provided by investing activities**<br>**409,245**<br>**_______**<br>**Cash flows from financing activities:**<br>Repayment of borrowing<br>-<br>**_______**<br>**Management of liquid resources**<br>Movement in short term deposits<br>50,321<br>**_______**<br> <br>**Increase/(decrease) in cash in the year**<br>**(134,311)**<br>**Increase/(decrease) in short term deposits**<br>**(50,321)**<br>Cash at bank and in hand<br>963,735<br> <br>Short term deposits<br>183,734<br>_______<br> <br>**Net funds brought forward**<br>**1,147,469**<br> <br>_______<br>Cash at bank and in hand<br>829,424<br>Short term deposits<br>133,413<br>_______<br> <br>**Net funds carried forward**<br>**962,838**<br><br>_______|2019<br>Total<br>Funds<br>£<br>401,742<br>101,259<br>(81,884)<br>(409,284)<br>(31,076)<br>11,167<br>______<br>**(8,076)**<br>______<br>81,884<br>(20,429)<br>7,742<br>_______<br>**69,197**<br>_______<br>18,200<br>_______<br>(146,625)<br>________<br>**(67,304)**<br>**146,625**<br>1,031,040<br>37,109<br>________<br>**1,068,149**<br> ______<br>963,735<br>183,734<br>________<br>**1,147,469**<br> _ ____|
|---|---|



- 23 - 



**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: 

- Unrestricted general funds are available for any purpose of the Charity. 

- Designated funds represent amounts set aside for specific purposes but which remain at the discretion of the Area Meeting; and 

- Restricted funds represent contributions, legacies and donations received earmarked by the testator or donor for specific purposes. 

## **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. 

- 24 - 



**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. 

- 25 - 



**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**|
||**_______**|**_______**|**________**|



- 26 - 



**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). 

- 27 - 



**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|
||**_______**|_______|



- 28 - 



**THE CENTRAL ENGLAND AREA QUAKER MEETING CHARITIES** 

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

## **10. Related party transactions** 

- Included within donations to the charity is an aggregate amount of £10,513 received from the Trustees. 

## **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|
||_______|________|_______|______|________|



- 29 - 



**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|



* Kings Heath Meeting House, which is occupied rent free by the Local Meeting, was previously owned by a separate charity, South Birmingham Friends Institute, but was transferred to CEQ in October 2020. 

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. 

- 30 - 



**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**<br>**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. 

- 31 - 



**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. 

- 32 - 



**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|
||**_______**|______|



- 33 - 



**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. 

- 34 - 



**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**|
|<br>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. 

- 35 - 



**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). 

- 36 - 



**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**|
||**________**|**_______**|**_______**|**_______**|**________**|



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## **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**|
||**________**|**________**|**_________**|________|



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**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. 

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