## **THE FRIENDS OF ESSEX CHURCHES TRUST ANNUAL REPORT AND FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2021** ## **Registered Charity Number: 236033** ## **EDMUND CARR LLP** Chartered Accountants 146 New London Road Chelmsford Essex CM2 0AW ## **THE FRIENDS OF ESSEX CHURCHES TRUST** ## **ANNUAL REPORT AND FINANCIAL STATEMENTS** ## **YEAR ENDED 31 DECEMBER 2021** |**CONTENTS**|**PAGE**| |---|---| |Trustees (The Executive Committee)|1| |Other Officials of the Association|2| |Report of the Trustees|3| |Report of the Independent Examiner|6| |Statement of Financial Activities|7| |Balance Sheet|8| |Notes forming part of the Financial Statements|9| ## **THE FRIENDS OF ESSEX CHURCHES TRUST TRUSTEES (THE EXECUTIVE COMMITTEE) In office during 2021 or at 21 March 2022** |**Chairman**|Mr H.M. Stuchfield, M.B.E., J.P., D.L., F.S.A., F.R.Hist.S.| |---|---| |**Vice-Chairman**|Mrs R.A. Grainger| |**Hon Secretary**|Mr J.E.J. Pickthorn| |**Hon Treasurer**|Canon H.A. Marsh| |**Other Trustees**|Mr J.W. Beale| ||Dr F.J.A. Bettley, J.P., D.L., M.A., Ph.D., F.S.A.| ||Mrs G.J. Jones| ||Mrs C. Leeder| ||Mrs J. Pimblett| -1- **THE FRIENDS OF ESSEX CHURCHES TRUST OTHER OFFICIALS OF THE ASSOCIATION** ## **YEAR ENDED 31 DECEMBER 2021** **Patrons** Rt Rev Dr. G. Francis-Dehqani, Bishop of Chelmsford Mrs Jennifer Tolhurst, H M Lord-Lieutenant of Essex Rt Rev A. Williams, Bishop of Brentwood **President** Rt Rev Thomas McMahon **Holding Trustees** Mr J.W. Beale Mr H.M. Stuchfield Canon H.A. Marsh ## **Registered Office** 5 Vicarage Lane, Great Baddow, Chelmsford, CM2 8HY ## **Charity Commission Registration Number** 236033 ## **Bankers** Barclays Bank plc, 40-41 High Street, Chelmsford, Essex CM1 1DE Shawbrook Bank, Lutea House, Warley Hill Business Park, Brentwood, Essex CM13 3BE Virgin Money, Jubilee House, Gosforth, Newcastle-upon-Tyne NE3 4PL ## **Investment Manager** M & G Securities Ltd, Laurence Pountney Hill, London, EC4R 0HH ## **Independent Examiner** Ray Crace FCA, Edmund Carr LLP, 146 New London Road, Chelmsford, Essex, CM2 0AW -2- ## **THE FRIENDS OF ESSEX CHURCHES TRUST** ## **REPORT OF THE TRUSTEES** ## **YEAR ENDED 31 DECEMBER 2021** The trustees present their report together with the financial statements for the year ended 31 December 2021 which have been the subject of an independent examination. ## **OBJECTIVES AND ACTIVITIES** The principal objects of the Trust are the promotion of public interest in the history of the Christian Churches in the area of the Diocese of Chelmsford and assisting in the preservation, repair and restoration of their fabric, through grant giving. From January 2015 grants are also made for work to improve church buildings. The trustees confirm that they have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing the Trust's aims and objectives and in planning future activities. ## **Grant making policy** The charity invites applications for the funding of repair and restoration projects, and from 2015 also for improvements to churches. Applications are reviewed against specific criteria by the Grants Committee which meets quarterly. Grants are allocated based on the highest priority and the funds available. In September 2019 the Trust received a grant of £20,000 from Allchurches Trust Limited to help fund the cost of alarms/protection systems for roofs of churches in the Diocese of Chelmsford. Half the cost of a roof alarm is funded, up to £2,500 and our Trust adds grants of up to £2,000 to assist with installation costs. No grants were awarded in 2021 (2020 - 1 grant of £2,500). ## **ACHIEVEMENTS AND PERFORMANCE** The 2021 grant allocations for maintenance and improvements were £114,500 (2020: £147,850). Grants were offered to a total of 13 Churches and ranged in amount from £3,000 to £15,000. Grant cheques of £120,500 (2020 - £165,000) were paid in the year for completed projects. During 2021 the total grant allocations included £15,000 for improvements to 1 church. ## **FINANCIAL REVIEW** The accounts for the financial year ended 31 December 2021 are set out on pages 7 to 13. The Statement of Financial Activities and the Balance Sheet, together with the accompanying notes, provide a detailed review of the charity’s performance for the year. Our total income received increased from £145,657 in 2020 to £294,461. Both figures including the gross receipts from the Ride+Stride event. The increase was largely due to an increase of £127,436 in legacies received. Support expenditure remained low. During a normal year a number of fundraising events are held at which volunteers provide support. These events, of which a principal one is Ride+Stride, have generated income in 2021 of £40,089. The trustees hope that this level of income will be increased to former levels again after the end of the pandemic. Of the money raised by Ride+Stride approx 50%, net of gift aid, is returned to the participating churches and this figure is shown in the notes. -3- **THE FRIENDS OF ESSEX CHURCHES TRUST REPORT OF THE TRUSTEES** _**(Continued)**_ **YEAR ENDED 31 DECEMBER 2021** ## **Investment Policy** There are no restrictions on the charity’s power to invest. The investment strategy is set by the trustees and takes account of recent demand for funds and the grant making policy set out above. Since 2014 the only stock investment has been in M&G Charifund income units. After earlier realisations in previous years £40,000 fresh investment was made in 2020. The performance of this investment will continue to be monitored by the Trustees. ## **Reserves Policy** It is the policy of the charity to maintain unrestricted reserves at a level consistent with enabling the charity to provide sufficient funds to meet the agreed grants allocation for the year plus expected outgoings and a provision for contingencies. The agreed grants allocation for the year will be constrained by the previous year’s income less expected outgoings plus any reduction in reserves adopted by the Committee from time to time. The reserves policy is reviewed annually and a range of options consistent with prudent investment policy considered. The trustees consider the current level of reserves is just enough to meet this policy. ## **STRUCTURE GOVERNANCE AND MANAGEMENT** The Friends of Essex Churches Trust is registered as a charity with the Charity Commission. The affairs of the Trust are governed by its Constitution which was originally adopted on 29 January 1983 as amended most recently on 13 May 2015. The Constitution was amended on 23 July 1987, 7 May 1991, 11 May 1999, 15 May 2007, 15 May 2014 and most recently on 13 May 2015. ## **Trustees** The trustees of the Trust both during 2021 and at the date of signature are set out on page 1. The Executive Committee (trustees) consists of the honorary officers and not less than 5 and not more than 11 members elected at the annual general meeting, who hold office from the conclusion of that meeting. The honorary officers, being the Chairman, Vice-Chairman, Secretary and Treasurer, are elected by the members from amongst themselves at the annual general meeting. Other Executive Committee members are nominated by members of the Charity in writing to the Secretary of the Executive Committee at least 14 days before the annual general meeting. Should nominations exceed vacancies, elections are by ballot. When a new trustee is appointed appropriate training and induction are provided. -4- ## **THE FRIENDS OF ESSEX CHURCHES TRUST** ## **REPORT OF THE TRUSTEES** _**(Continued)**_ ## **YEAR ENDED 31 DECEMBER 2021** ## **Trustees' Responsibilities** The trustees are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). The trustees are responsible for keeping accounting records that disclose with reasonable accuracy the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charities (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. ## **Independent Examiner** Following the trustees' decision in 2015 to move to an independent examination, Ray Crace FCA of Edmund Carr LLP was appointed as Independent Examiner. Mr Crace has expressed his willingness to continue in office and a resolution to re-appoint him will be proposed at the annual general meeting. The accounts (financial statements) have been prepared in accordance with the statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued on 16 July 2014 and the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and the Charities Act 2011 and UK Generally Accepted Practice as it applies from 1 January 2019. The accounts (financial statements) have been prepared to give a 'true and fair' view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a 'true and fair view'. This departure has involved following Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) 2019 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn. Approved by the trustees on 21 March 2022 and signed on their behalf by: ...................... ## **H.A. Marsh** Hon Treasurer ...................... ## **H.M. Stuchfield** Chairman -5- ## **THE FRIENDS OF ESSEX CHURCHES TRUST INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES** ## **YEAR ENDED 31 DECEMBER 2021** I report to the charity trustees on my examination of the accounts of the charity for the year ended 31 December 2021, which are set out on pages 7 to 13. ## **Responsibilities and basis of report** As the charity’s trustees 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 charity'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** Since the charity's gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the Act. I confirm that I am qualified to undertake the examination because I am a member of the Institute of Chartered Accountants in England and Wales. 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 charity 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. ................................. ## **R Crace FCA** 146 New London Road Chelmsford Essex CM2 0AW .................................... -6- ## **THE FRIENDS OF ESSEX CHURCHES TRUST STATEMENT OF FINANCIAL ACTIVITIES** ## **YEAR ENDED 31 DECEMBER 2021** |**Note**
**Income from:**
Grants, donations and subscriptions
2
Legacies
Fundraising activities
3
Investment income
4
**Total income**
**Expenditure on:**
Fundraising activities
5
Charitable activities
6
**Total expenditure**
**Net gains/ (losses) on investments**
8
**Net movement in funds**
**Reconciliation of funds**
Total funds brought forward
**Total funds carried forward**
**Net (expenditure)/income /**|**Unrestricted**
**2021**
**£**
32,472
213,000
40,089
8,900
294,461
16,230
118,682
134,912
21,860
181,409
288,323
469,732|**Restricted**
**2021**
**£**
-
-
-
-
-
-
-
-
-
-
17,500
17,500|**Total Funds**
**2021**
**£**
32,472
213,000
40,089
8,900
294,461
16,230
118,682
134,912
21,860
181,409
305,823
487,232|**Total Funds**
**2020**
**£**
27,416
85,564
23,994
8,683| |---|---|---|---|---| |||||145,657| |||||9,974
153,663| |||||163,637| |||||( 20,504)| |||||( 38,484)
344,307| |||||305,823| The charity has no recognised gains or losses other than the results for the year as set out above. **The notes on pages 9 to 13 form part of these financial statements.** -7- ## **THE FRIENDS OF ESSEX CHURCHES TRUST** ## **BALANCE SHEET** ## **AS AT 31 DECEMBER 2021** |**Note**
**£**
**£**
**FIXED ASSETS**
Investments
8
185,254
**CURRENT ASSETS**
Debtors
9
43
Cash at bank
10
459,945
459,988
**CREDITORS: Amounts falling due within one year**
11
158,010
**NET CURRENT ASSETS/ LIABILITIES**
301,978
**NET ASSETS**
487,232
**FUNDS OF THE CHARITY**
Unrestricted General Fund
469,732
Restricted Funds
12
17,500
**TOTAL CHARITY FUNDS**
487,232
**2021**|**2020**
**£**
163,394
2,630
303,269| |---|---| ||305,899
163,470| ||142,429| ||305,823| ||288,323
17,500| ||305,823| Approved by the Trustees on …............................... and signed on their behalf by: ….......................... **H A Marsh** Hon Treasurer …................................ **H.M. Stuchfield** Chairman **The notes on pages 9 to 13 form part of these financial statements.** -8- ## **THE FRIENDS OF ESSEX CHURCHES TRUST NOTES FORMING PART OF THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2021** ## **1. Accounting Policies** ## **Basis of accounting** The accounts (financial statements) have been prepared in accordance with the statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (SORP 2019) and the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and the Charities Act 2011 and UK Generally Accepted Practice as it applies from 1 January 2019. The accounts (financial statements) have been prepared to give a 'true and fair' view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a 'true and fair view'. This departure has involved following SORP 2019 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn. ## **General Information** The Friends of Essex Churches Trust is an unincorporated charity which meets the definition of a public benefit entity under FRS 102. The registered office is 5 Vicarage Lane, Great Baddow, Chelmsford, CM2 8HY. ## **Fundraising activities** The committee consider directly attributable expenditure on fundraising activities to be material, therefore income is accounted for gross of expenditure. The return payments to local Churches are shown as outgoings. ## **Income and expenditure** All income and expenditure is recognised once there is a legal or constructive obligation to that income/ expenditure, it is probable that settlement is required and the amount can be measured reliably. ## **Legacies received** Legacies are accounted for when receivable as long as they are capable of financial measurement. ## **Investment Income** Investment income is accounted for on a received basis. ## **Interest on bank deposits** Interest is accounted for on a received basis. ## **Grants Payable** Grants payable are recognised as expenditure when the grant is allocated. ## **Debtors and Creditors** Trade and other debtors are recognised at the settlement amount due. Creditors are recognised at their settlement amount. -9- ## **THE FRIENDS OF ESSEX CHURCHES TRUST** ## **NOTES FORMING PART OF THE FINANCIAL STATEMENTS** _**(Continued)**_ **YEAR ENDED 31 DECEMBER 2021** ## **Fund accounting** Unrestricted general funds - these are funds which can be used in accordance with the charitable object at the discretion of the trustees. All funds received in 2021 were unrestricted. In 2020 no restricted grants was received. Restricted funds - these are funds that can only be used for particular restricted purposes within the objects of the charity. ## **Taxation** As the Trust is a charity, it is exempt from taxation - other than VAT, which is included in the relevant costs in the Statement of Financial Activities - to the extent that any income and gains are applied to its charitable objectives. ## **2. Donations and Subscriptions** |**Unrestricted**
**2021**
**£**
Donations and subscriptions
29,044
Gift Aid
3,428
Grant from Allchurches Trust (restricted)
-
32,472|**Restricted**
**2021**
**£**
-
-
-
-|**Total Funds**
**2021**
**£**
29,044
3,428
-
32,472|**Total Funds**
**2020**
**£**
24,545
2,871
-| |---|---|---|---| ||||27,416| ## **3. Income from Fundraising Activities** |Ride+Stride
- Donations
- Gift Aid
Other Events
- Donations & Charges
- Gift aid|**Unrestricted**
**2021**
**£**
16,203
786
23,100
-
40,089|**Restricted**
**2021**
**£**
-
-
-
-
-|**Total Funds**
**2021**
**£**
16,203
786
23,100
-
40,089|**Total Funds**
**2020**
**£**
12,141
885
10,968
-| |---|---|---|---|---| |||||23,994| ## **4. Investment Income** |Dividends received
Interest receivable|**Unrestricted**
**2021**
**£**
8,809
91
8,900|**Restricted**
**2021**
**£**
-
-
-|**Total Funds**
**2021**
**£**
8,809
91
8,900|**Total Funds**
**2020**
**£**
6,930
1,753| |---|---|---|---|---| |||||8,683| -10- **THE FRIENDS OF ESSEX CHURCHES TRUST** **NOTES FORMING PART OF THE FINANCIAL STATEMENTS** _**(Continued)**_ ## **YEAR ENDED 31 DECEMBER 2021** ## **5. Expenditure on Fundraising Activities** |Ride+Stride - Expenses
- Returned to sponsoring Churches
Other Event expenses
**6. Charitable Activities**
Maintenance Grants awarded 12 (2020: 17)
Improvement Grants awarded 1 (2020: 5)
Grants released
Grants for gutter clearance
Installation of roof alarm
Promotion of public interest in churches
Governance and support costs (note 7)|**Unrestricted**
**2021**
**£**
50
6,542
9,638
16,230
**Unrestricted**
**2021**
**£**
99,500
15,000
-
100
114,600
-
1,500
2,582
118,682|**Restricted**
**2021**
**£**
-
-
-
-
**Restricted**
**2021**
**£**
-
-
-
-
-
-
-
-
-|**Total Funds **
**2021**
**£**
50
6,542
9,638
16,230
**Total Funds **
**2021**
**£**
99,500
15,000
-
100
114,600
-
1,500
2,582
118,682|**Total Funds**
**2020**
**£**
50
5,541
4,383| |---|---|---|---|---| |||||9,974| |||||**Total Funds**
**2020**
**£**
108,850
39,000
(1,000)
100| |||||146,950
2,500
2,149
2,064| |||||153,663| No grants awarded in 2021 exceeded £15,000 (2020: Nil) |**7. Governance and Support Costs**
Fees paid to independent examiner:
Accounts preparation and examination
Bookkeeping services
Other administration costs
**8. Investments**
Market value at 1 January
Additional investments
Unrealised gain/(loss) on investments
Market value at 31 December
Historical cost at 31 December|**Unrestricted**
**2021**
**£**
1,670
490
422
2,582|**Restricted**
**2021**
**£**
-
-
-
-|**Total Funds **
**2021**
**£**
1,670
490
422
2,582
**2021**
**£**
163,394
-
21,860
185,254
165,768|**Total Funds**
**2020**
**£**
1,620
-
444| |---|---|---|---|---| |||||1,975| |||||**2020**
**£**
143,898
40,000
( 20,504)| |||||163,394| |||||165,768| All investments are held in M&G Charifund Income units. -11- ## **THE FRIENDS OF ESSEX CHURCHES TRUST** ## **NOTES FORMING PART OF THE FINANCIAL STATEMENTS** _**(Continued)**_ **YEAR ENDED 31 DECEMBER 2021** |**YEAR ENDED 31 DECEMBER 2021**||| |---|---|---| |**9. Debtors**
Gift Aid recoverable
Interest accrued|**2021**
**£**
43
-
43|**2020**
**£**
2,321
309| |||2,630| ## **10. Cash At Bank** |**Current**
Barclays - 5 various accounts for each section
**Deposit**
Barclays - easy access
Virgin Money - easy access
Shawbrook - 12 months fixed deposit|**2021**
**£**
289,845
100
85,000
85,000
459,945|**2020**
**£**
53,269
80,000
85,000
85,000| |---|---|---| |||303,269| ## **11. Creditors: amounts falling due within one year** |Outstanding obligations for grants
Accruals|**2021**
**£**
155,850
2,160
158,010|**2020**
**£**
161,850
1,620| |---|---|---| |||163,470| ## **12. Restricted Funds** |Allchurches Trust|**Balance at**
**01/01/2021**
**£**
17,500|**Incoming**
**Resources**
**£**
-|**Outgoing**
**Resources**
**£**
-|**Balance at**
**31/12/2021**
**£**
17,500| |---|---|---|---|---| The Allchurches Trust provided a grant to assist in carrying out the project of encouraging Churches to install roof alarm systems in order to prevent or minimise the theft of lead from churches' roofs. No grants were awarded in the year. -12- ## **THE FRIENDS OF ESSEX CHURCHES TRUST** ## **NOTES FORMING PART OF THE FINANCIAL STATEMENTS** _**(Continued)**_ **YEAR ENDED 31 DECEMBER 2021** ## **13. Analysis of Net Assets between Funds** |**Analysis of Net Assets between Funds**|||| |---|---|---|---| |Restricted funds
Unrestricted funds|**Investments**
**£**
-
185,254
185,254|**Other Net**
**Assets**
**£**
17,500
284,478
301,978|**Total**
**£**
17,500
469,732| ||||487,232| ## **14. Trustees Remuneration/ Related Party Transactions** No trustees or connected persons received any remuneration or personal expenses either directly or indirectly (2020: nil). There were no related party transactions during the financial year (2020: nil). -13-