**REGISTERED CHARITY NUMBER: 233814** ## **REPORT OF THE TRUSTEES AND** **UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021** ## **FOR** ## **MANCHESTER DIOCESAN CHURCH OF ENGLAND** Manchester Diocesan Council for Social Aid Church House 90 Deansgate Manchester M3 2GH **MANCHESTER DIOCESAN CHURCH OF ENGLAND** ## **CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021** ||**Page**| |---|---| |**Report of the Trustees**|1 to 3| |**Independent Examiner's Report**|4| |**Statement of Financial Activities**|5| |**Balance Sheet**|6| |**Notes to the Financial Statements**|7 to 12| |**Detailed Statement of Financial Activities**|13| **MANCHESTER DIOCESAN CHURCH OF ENGLAND** ## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2021** The trustees present their report with the financial statements of the charity for the year ended 31 March 2021. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019). ## **OBJECTIVES AND ACTIVITIES Objectives and aims** The objective of the charity is to support and further all or any charitable activates carried out in connection with the Church of England in the Diocese of Manchester. The three main objectives are: - 1 The promotion of temperance and of higher standards of moral life in the individual, the family and the community; - 2 The restoration of the intemperate or delinquent and those addicted to drugs or alcohol or gaming, or indeed in need of help: and - 3 The relief of distress or suffering arising from delinquency or intemperance or addiction. ## **Significant activities** The Trust currently has two funding streams: ## **Small Grants** Applicants may apply to the small grants for one-off funding up to £5,000 to support a specific project. The trustees made grants of £10,000 during the year. ## **Large Grants** The majority of the Trust's activity is carried out through the Large Grants Programme. The Trustees currently make grants, in line with the objects of the charity, for up to three years, usually not exceeding £30,000. This year the Trustees made 3 small grants totalling £10,000 and agreed five new large grants totalling £137,214 for the years April 2020 to March 2023. The beneficiaries are local churches or church affiliated projects whose aims are to support people and families living in challenging and deprived settings, through offering a variety of activities and projects based within their local churches and community centres. The large grants agreed were: |||**Grant**|**Commitment**| |---|---|---|---| |||**for**|**for future**| |||**2020/2**|**years**| |||**021**|| |||**£**|**£**| |Brunswick|Christ|10,000|20,000| |Church|||| |Wythenshawe Team||15,000|15,000| |Lower Kersal St||9,320|9,320| |Aidan|||| |Radclife, St Andrews||10,910|17,680| |Re-Dish Community||10,624|19,360| |Hub|||| |TOTAL||**55,854**|**81,360**| Page 1 The Trustees agreed these large grants before the COVID-19 pandemic commenced in March 2020. The Trustees have liaised with the grant recipients to ensure that they can continue to deliver work under the current COVID social distancing restrictions. Page 1 **MANCHESTER DIOCESAN CHURCH OF ENGLAND** ## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2021** ## **OBJECTIVES AND ACTIVITIES Grantmaking** In furthering the objectives, the trustees have continued to apply the following criteria: - Grants will only be given for periods up to three years - Revenue and capital funding can be sought Applications have to include provision for on-going monitoring and evaluation and show how the proposed grant will make a difference to work envisaged and include an exit strategy and which overall will be of public benefit. Grants are only made for bids from organisations that have adopted and are implementing equal opportunity policies. ## **FINANCIAL REVIEW** ## **Principal funding sources** The Charity's work is entirely reliant on income and investment returns from its endowments. ## **Investment policy and objectives** The charity's capital assets are managed by The Central Board of Finance of the Church of England, which invests the financial capital on behalf of the trustees in ethically based investments. The Investment Fund is specifically designed for long term capital and is invested in equities with a wide diversification of good quality holdings in the United Kingdom and overseas. It aims at steadily growing income and capital appreciation to provide long term protection from inflation. ## **Reserves policy** The trustees have adopted a policy of holding in reserve sufficient cash funds to meet the following year's grant making allocation. Fixed asset investments held in the endowment fund are retained to meet future year' funding requirements, as income from them provides the resources in the unrestricted fund to meet future direct charitable expenditure. ## **STRUCTURE, GOVERNANCE AND MANAGEMENT Governing document** The charity is controlled by its governing document, a deed of trust and constitutes an unincorporated charity. The charity is regulated by a scheme of the Charity Commissioners dated 25 August 1969, amended by their order of 26 April 2001. ## **Organisational structure** Trustees serve for four years after which period they put themselves forward for reappointment. The trustees are required to meet two times a year on a half-yearly basis. However, the trustees aim to meet quarterly, and have met three times this year. ## **Risk management** The trustees have a duty to identify and review the risks to which the charity is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error. ## **REFERENCE AND ADMINISTRATIVE DETAILS Registered Charity number** 233814 ## **Principal address** 4th Floor Page 2 Church House 90 Deansgate Manchester M3 2GH Page 2 **MANCHESTER DIOCESAN CHURCH OF ENGLAND** ## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2021** ## **Trustees** Ms H Gatenby Revd G Hollowood Revd D Brae Revd H Scanlan (resigned 11/03/21) The Ven K Lund Canon R Lewis Revd F Adman ## **Independent Examiner** Canon Phillip Blinkhorn, FCA 1 Blundell Close Unsworth Bury BL9 8LH Approved by order of the board of trustees on 13 June 2022 and signed on its behalf by: ## **Revd G Hollowood - Trustee** Page 3 ## **INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF MANCHESTER DIOCESAN CHURCH OF ENGLAND** ## **Independent examiner's report to the trustees of Manchester Diocesan Church of England** I report to the charity trustees on my examination of the accounts of Manchester Diocesan Church of England (the Trust) for the year ended 31 March 2021. ## **Responsibilities and basis of report** As the charity trustees of the Trust you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 ('the Act'). I report in respect of my examination of the Trust's accounts carried out under section 145 of the Act and in carrying out my examination I have followed all applicable Directions given by the Charity Commission under section 145(5)(b) of the Act. ## **Independent examiner's statement** I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect: 1. accounting records were not kept in respect of the Trust as required by section 130 of the Act; or 2. the accounts do not accord with those records; or 3. the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination. I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached. Canon Philip Blinkhorn, FCA 3[rd] August 2022 Page 4 **MANCHESTER DIOCESAN CHURCH OF ENGLAND** ## **STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2021** |Unrestricted
Restricted
Endowment
Total
Total
funds
funds
fund
Notes
£
£
£
**INCOME AND**
**ENDOWMENTS FROM**
Investment income
2
114,990
-
-
**EXPENDITURE ON**
**Charitable activities**
Grant Aid
58,854
-
-
Other
1,960
-
-
**Total**
60,814
-
-
Net gains/(losses) on
investments
-
-
643,899
**NET INCOME/**
**(EXPENDITURE)**
54,176
-
643,899|2021
funds
£
114,990
58,854
1,960
60,814
643,899
698,075|2020
funds
£
114,379
14,541
3,540
18,081
(55,270)
41,028| |---|---|---| ## **RECONCILIATION OF FUNDS** ## **Total funds brought forward** 380,431 - 3,347,800 3,728,231 3,687,203 ## **TOTAL FUNDS CARRIED FORWARD** 434,607 - 3,991,699 4,426,306 The notes form part of these financial statements Page 5 3,728,231 The notes form part of these financial statements Page 5 **MANCHESTER DIOCESAN CHURCH OF ENGLAND** ## **BALANCE SHEET 31 MARCH 2021** ||||||2021|2020| |---|---|---|---|---|---|---| ||Unrestricted|||||| ||||Restricted|Endowment||| ||||Total|Total||| |||funds|funds|fund|funds|funds| ||Notes|£|£|£|£|£| |**FIXED ASSETS**||||||| |Investments|6|-|-|3,991,699|3,991,699|3,347,800| |**CURRENT ASSETS**||||||| |Cash at bank||434,607|-|-|434,607|381,355| |**CREDITORS**||||||| Amounts falling due within one year 7 - - - - (924) **NET CURRENT ASSETS** 434,607 - - 434,607 380,431 The notes form part of these financial statements Page 6 ## **TOTAL ASSETS LESS CURRENT LIABILITIES** 434,607 - - 3,991,699 - 4,426,306 3,728,231 ## **NET ASSETS** 434,607 - 3,991,699 4,426,306 3,728,231 ## **FUNDS** 8 Unrestricted funds 434,607 380,431 Endowment funds 3,991,699 3,347,800 The notes form part of these financial statements Page 6 **TOTAL FUNDS** 4,426,306 3,728,231 The financial statements were approved by the Board of Trustees and authorised for issue on 13[th] June 2022 and were signed on its behalf by: ## **Revd G Hollowood - Trustee** The notes form part of these financial statements Page 6 **MANCHESTER DIOCESAN CHURCH OF ENGLAND** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021** ## **1. ACCOUNTING POLICIES** ## **Basis of preparing the financial statements** The financial statements of the charity, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Charities Act 2011. The financial statements have been prepared under the historical cost convention, with the exception of investments which are included at market value, as modified by the revaluation of certain assets. ## **Income** All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably. ## **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 a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources. Grants offered subject to conditions which have not been met at the year end date are noted as a commitment but not accrued as expenditure. ## **Taxation** The charity is exempt from tax on its charitable activities. ## **Fund accounting** Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees. Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes. Further explanation of the nature and purpose of each fund is included in the notes to the financial statements. ## **2. INVESTMENT INCOME** |Other fxed asset inv - UnFII
Bank Interest|2021
£
114,845
145
114,990|2020
£
113,645
734
114,379| |---|---|---| continued... Page 7 **MANCHESTER DIOCESAN CHURCH OF ENGLAND** ## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2021** ## **3. TRUSTEES' REMUNERATION AND BENEFITS** There were no trustees' remuneration or other benefits for the year ended 31 March 2021. ## **Trustees' expenses** There were no trustees' expenses paid for the year ended 31 March 2021. ## **4. STAFF COSTS** The average monthly number of employees during the year was as follows: |2021
Administration
1
No employees received emoluments in excess of £60,000.
**COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES**
Unrestricted
Restricted
Endowment
Total
funds
funds
fund
£
£
£
**INCOME AND ENDOWMENTS FROM**
Investment income
114,379
-
-
**EXPENDITURE ON**
**Charitable activities**
Grant Aid
14,541
-
-
Other
3,540
-
-
**Total**
18,081
-
-
Net gains on investments
-
-
(55,270)
**NET INCOME/(EXPENDITURE)**
96,298
-
(55,270)||2020
1
funds
£
114,379
14,541
3,540
18,081
(55,270)
41,028| |---|---|---| |||| |||| ## **5. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES** ## **RECONCILIATION OF FUNDS** ## **Total funds brought forward** 284,133 - 3,403,070 3,687,203 continued... Page 8 ## **TOTAL FUNDS CARRIED FORWARD** 380,431 - - 3,347,800 - 3,728,231 continued... Page 8 **MANCHESTER DIOCESAN CHURCH OF ENGLAND** ## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2021** ## **6. FIXED ASSET INVESTMENTS** |**FIXED ASSET INVESTMENTS**|| |---|---| ||Listed| ||investments| ||£| |**MARKET VALUE**|| |At 1 April 2020|3,347,800| |Revaluations|643,899| |At 31 March 2021|3,991,699| |**NET BOOK VALUE**|| |At 31 March 2021|3,991,699| |At 31 March 2020|3,347,800| The charity's capital assets are managed by The Central Board of Finance of the Church of England, which invests the financial capital on behalf of the trustees in ethically based investments. The Investment Fund is specifically designed for long term capital and is invested mainly with a wide diversification of good quality holdings in the United Kingdom and overseas. It aims at steadily growing income and capital appreciation to provide long term protection from inflation. At 31 December 2021, 65.07% (2020 – 59,40%) of the Investment Fund was invested in overseas investments. ## **7. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR** |Taxation and social security
Other creditors
**8.**
**MOVEMENT IN FUNDS**
**Unrestricted funds**
Bank account
Interest bearing bank account
Deposit fund
**Endowment funds**
Endowment fund
**TOTAL FUNDS**|2021
£
-
-
-
Net
Transfers
movement
between
At 1.4.20
in funds
funds
£
£
£
10,000
-
-
352,187
54,123
-
18,244
53
-
380,431
54,176
-
3,347,800 643,899
-
3,728,231
698,075
-|2020
£
-
924
924
At
31.3.21
£
10,000
406,310
18,297
434,607
3,991,699
4,426,306| |---|---|---| continued... Page 9 **MANCHESTER DIOCESAN CHURCH OF ENGLAND** ## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2021** ## **8. MOVEMENT IN FUNDS - continued** Net movement in funds, included in the above are as follows: ||Incoming|Incoming|Incoming|Incoming|Resources|Resources|Gains|Gains|and|Movement| |---|---|---|---|---|---|---|---|---|---|---| ||resources||||expended|||losses||in funds| ||||£|||£||£||£| |**Unrestricted funds**||||||||||| |Bank account||||||||||| |||||-||-|||-|-| |Interest bearing bank account||||||||||| ||114,937||||(60,814)||||-|54,123| |Deposit fund||||53||-|||-|53| ||||114,990|||(60,814)|||-|54,176| |**Endowment funds**||||||||||| |Endowment fund||||||||||| |||||-||-||643,899
643,899||| |**TOTAL FUNDS**|114,990||||(60,814)|||643,899||698,075| |**Comparatives for movement in funds**||||||||||| |||||||Net||Transfers||| ||||||movement|||between||At| ||At||1.4.19||in funds|||funds||31.3.20| ||||£|||£||£||£| |**Unrestricted funds**||||||||||| |Bank account||||||||||| |||||10,000||(17,923)||17,923
10,000||| |Interest bearing bank account||||||||||| ||256,022||||114,088|||(17,923)||352,187| |Deposit fund||18,111||||133|||-|18,244| ||||284,133|||96,298|||-|380,431| |**Endowment funds**||||||||||| |Endowment fund||||||||||| |||||3,403,070 (55,270)|||||-|3,347,800| |**TOTAL FUNDS**|3,687,203|||||41,028|||-|3,728,231| continued... Page 10 **MANCHESTER DIOCESAN CHURCH OF ENGLAND** ## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2021** ## **8. MOVEMENT IN FUNDS - continued** Comparative net movement in funds, included in the above are as follows: |||Incoming|Resources|Resources|Gains and|Gains and|Movement|Movement| |---|---|---|---|---|---|---|---|---| |||resources|expended|||losses||in funds| |||£||£||£||£| |**Unrestricted funds**||||||||| |Bank account||||||||| |||-||(17,923)||-||(17,923)| |Interest bearing bank account||||||||| |||114,246||(158)||-||114,088| |Deposit fund||133||-||-||133| |||114,379||(18,081)||-||96,298| |**Endowment funds**||||||||| |Endowment fund||||||||| |||-||-||(55,270)||(55,270)| |**TOTAL FUNDS**||114,379|(18,081)|||(55,270)||41,028| |A current year 12 months and prior year 12 months|||combined position is as||||follows:|| |||||Net||Transfers||| ||||movement|||between||At| |||At 1.4.19|in funds|||funds||31.3.21| |||£||£||£||£| |**Unrestricted funds**||||||||| |Bank account||||||||| |||10,000||(17,923)||17,923||10,000| |Interest bearing bank account||||||||| |||256,022|168,211|||(17,923)||406,310| |Deposit fund||18,111||186||-||18,297| |||284,133||150,474||-||432,607| |**Endowment funds**||||||||| |Endowment fund||||||||| |||3,403,070 588,629||||-||3,991,699| |**TOTAL FUNDS**|3,687,203||739,103|||-|4,426,306|| continued... Page 11 **MANCHESTER DIOCESAN CHURCH OF ENGLAND** ## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2021** ## **8. MOVEMENT IN FUNDS - continued** A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows: ||Incoming|Resources|Gains|and|Movement| |---|---|---|---|---|---| ||resources|expended|losses||in funds| ||£|£|£||£| |**Unrestricted funds**|||||| |Bank account|||||| |||(17,923)||-|(17,923)| |Interest bearing bank account|||||| ||229,183|(60,972)||-|168,211| |Deposit fund|186|-||-|186| ||229,369|(78,895)||-|150,474| |**Endowment funds**|||||| |Endowment fund|||||| ||-|-|588,629
588,629||| |**TOTAL FUNDS**|229,369|(78,895)|588,629||739,103| ## **9. EMPLOYEE BENEFIT OBLIGATIONS** A debt arose because the Council for Social Aid (through the Parkfield Hostel Management Committee - a sub-committee) ceased contributing to the fund in March 1993, following the closure of the hostel. From April 1993 onwards, the Trustees are responsible for increases in the former employees' pensions because the Trustees are no longer contributing to the fund. ## **10. RELATED PARTY DISCLOSURES** There were no related party transactions for the year ended 31 March 2021. ## **11. FEU DUTIES** Feu duties of £2.38 and £2.00 per annum were payable on 22 and 24 Thorntree Street, Leith. The agents have been unable to collect these sums after June 1990 despite several reminders. The Trustees have accepted that further income may not be forthcoming, but register their interest in the land and property. Page 12 ## **MANCHESTER DIOCESAN CHURCH OF ENGLAND DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2021** |**INCOME AND ENDOWMENTS**
**Investment income**
Other fxed asset inv - UnFII
114,845
113,645
Bank Interest
145
734
**Total incoming resources**
114,990
114,379
**EXPENDITURE**
**Charitable activities**
Grants to institutions
**Support costs**
**Finance**
Wages
Pensions
Bank charges
**Governance costs**
Accountancy and legal fees
Total resources expended
**Net income/(expenditure)**|2021
£
114,990
58,854
650
1,276
82
2,008
(48)
60,814
54,176|2020
£
114,379
14,541
1,397
1,520
89
3,006
651
18,081
96,298| |---|---|---| This page does not form part of the statutory financial statements Page 13