CHARITY NUMBER 241062 ST STEPHEN'S CHURCH ENDOWMENT FUND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020
ST STEPHEN'S CHURCH ENDOWMENT FUND GENERAL INFORMATION Name The Fund forthe ErKlowm8nt of the Living of St. Stsphen's, S¢th Kensington, London is more generally known by its working name of St. Stephen's Church Endowment Fund. On 22 May 1997 tho Charfty Commls8loners sealed a Schema wherèby the Income of Ihe fund 8ubloct to the trusts of the 1937 Deed was thenceforth to applied for the purposes of the 1960 Deed las varied or affected by the Scheme) and other matters were provided for. The Trusta Mr J M Randolph (Chairman) Mr P Rodier Mr D H Colville Mrs D Simpson Charlty Numbor 241052 Inv8stm8nt Managers Cazenove Capital Management 1 London Wall Place, London EC2Y SAU Solicitorn Charfes Russell Speechlys LLP 5 Fleet Place London EC4M 7RD Addr• Saint stephen's Churth Southvftll Gardens London SW7 4RL Independent Examin•r Tina Allison FCCA Chartered Certtfied A¢¢ountant Crowe U.K. LLP 55 Ludgate Hill London EC4M 7JW Bankern Lloyds Bank plc 70-71 Cheapside London EC2V 6EN
ST STEPHEN'S CHURCH ENDOWMENT FUND TRUSTEES, REPORT YEAR ENDED 310ECEMBER 2020 OBJECTS The Trust Is registered as a charfty under number 241052. It was estsblished by a Trust Deed dated 2 April 1937 to promote, aid and further tho obiact$ of the Churth of England in the Parish of St. Stephen, South Kensington in the DI0$e of London by the endowment of the living of the incumbent for the time being of saNI parish and extended by a Dedaralion of Trust dated 21 March 1960. ORGANISATIONAL STRUCTURE St. Stephen's chUh Endowment Fund (the Ttust) is managed by Trustees vtho have aLrthority for overseeing the actiVitS of the Trust. There are no sub-committees or staff consKlered to be part of the key management structure. The original Trustees were appointed at the Inception of the Trust. subsequent Trustees being elected by current Trustees. PRINCIPAL ACTivrriES AND REVIEW OF THE YEAR The Trustees have managed the Trust's investments to assist in the provision of income to the clergy and parish sL3ff of the parish and to pay incidental expenses. ACTIVITIES AND ACHIEVEMENTS Objectives and achievements The Trust plays an important role in the work of St Stephen's Church for the public benefrt. The Trust supports the work of a Church of England parish church, with religious ServIS available to all who wish to attend. The church adopts a policy of keeping church doors open as far as possible, and the clergy or lay helpers maintain a preseno during day for visitors wishing to Speak to them. There is a strong sense in which the church provides comfort and security to the communty. In the case of St Stephen's a signrficant proportion of the community is transient and therefor8 needful of such benefits. The Trust plans to o)ntlnue the above actfvltles for the foreseeable future. The Twstees have had due regard to the Charity Commission's guKJance on public benefrt when conshlering the Trust's actNlties and objectives. Flnan¢lal r•vlow The Twst's income arises mainty from investment income and is applied by way of grants. Investment in(x)me lotalled £34,517 [2019.. £36,303) covering grants of £34.500 12019.. £34.0001 in the year. During the year Ihere were net gains on investments of £30,604 (2019.. gains of £75.210). The Trust's funds Increased by £14,525 In the year to 31 Dernber 2020, resulting in funds carried forward of £893,300 (2019.. £878,775).
ST STEPHEN'S CHURCH ENDOWMENT FUND TRUSTEES, REPORT YEAR ENDED 31 DECEMBER 2020 RESERVES POLICY Tha Trustees have 0)n$er8d tho reserves held by the Tru8 a8 of 31 Defmber 2020. It 18 the Trustees, policy to achreve in the medium to long temi unrestricted reserves at least equal to 12 months, grant expenditure. Grant expenditure in the year lo 31 Dember 2020 was £34,500, and at the balance sheet dale unrestricted serveS stood at £31,531. The Trustees expect to maintain grants to St Stephen's Church during 2021 at a level at least the same as was the case in 2020. The Trustees expect investment Incorr received during 2021 to be sufficient to enable the maintained grants to be patd without having recourse to reserves. INVESTMENT POWERS, POLICY AND PERFORMANCE The Trustees, investment powers are govemed by the Tnjst D88d and the Trustee Act 2000 which permit the Trustees to invest in such slock. shares and investments as they see fit. The Tru8tees' policy is to seek retums over the long term to.. provide for real Increase in annual income,. and preserve the capital base of the Trust in real terms. This policy invofves investing some of the Twst's assets for long temi growth rather than to maximise short tenn Inco. The Trust's investments are held through the Cazenove Charity Multi-Asset Fund, which is managed by Schroder Unit Trusts Limited and whi¢h operates in confomiity wilh the Trust's policy. Stock markets Nvere volatile in 2020 as the Covid-19 pandemic developed but the overall perfomaneé was satisfactory, as the sharp falls in a&8el prices in the earlier part of the year were more than made good during the remaining months. As indicated in Note 5 to the accounts, the unlts of the Cazenove Charity Multi-Asset Fund were valued at 57.62p each at 31 December 2020,. this compares with 56.04p at 31 Decener 2019. RISK ASSESSMENT The Trustees have examined the princlpal areas of the Trust's activity and considered the major risks which may arise. In the opinion of the Trustees the Trust has established a process and reviewed systems which. under normal O)rKlit)ns, shoukd allow the major risks identtfpd by them to be managed to an acceptable level. The Trustees continue to monitor the level of income expected to be reIved from th8 Trust's investmnts given the possibility of renewed market uncertainty against the background of the continuing Covid-19 pandemic. As indicated above, the Trustees expect incorr£ in 2021 to be sufficient lo wver grants payable. The position viill be kept under reVW so far as nrnS 2022 and future periods. GRANT MAKING POLICY This year the Trust awarded grants of £34,500 (2019.. £34,000) from Unrestrict funds in accordance with its long tem commitment to assist with the funding of salaries, running costs and other recurring expenses of th8 clergy and Parish SL of the parish of St Stephen, South Kensington.
ST STEPHEN'S CHURCH ENDOWMENT FUND TRUSTEES. REPORT YEAR ENDED 31 DECEMBER 2020 STATEMENT OF TRUSTEES, RESPONSIBILITIES The Trustees are responsible for preparing the TNstees' Annual Report and the financkql stalemenls in accordan with applicable law and United Kingdom Generally Accepted Accounting Practice (United Kingdom Ac¢ounting Standards). The law appllcable to charities In England and Wales requires the Trustees to prepare financial slatements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resour¢e$ of the Charity for tr¢at riod. In preparing these financial statements, the Trustses are required to: select suitab18 accounting poliCS and then apply them consistentw; obsenrfe the rrthl$ and principles in the applicable Charities SORP,. make judgments and e8tlmat88 that are reasonab and prudent; state wther applicab accounting standards have been followed, subject to any material departurès disclosed and explained in the financial statements" prepare the financial statéments on the going conc6m basis unless bl is inappropriate to presume that the charity will contlnue In buslnes8. The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charity's transactions, disclose with reasonable accuracy al any time the financial position of the charity and enab them to ensure that the financial statements compty with the Charities Act 2011, Ihe Charities (Accounts and Reports) Regulations 2008 and the provisions of the charity's constitution. They are also responsible for safeguarding the assets of the charity and hen for takirKJ reasonable steps for the prevention and detection of fraud arKI other irregularities. Approved by the Trustees onl8 Syk&4•lr02l and signed on their behalf by.. Trustee Trustee
Independent examinerfs report to the trustees of St Stephen's Church Endowment Fund I report to the trustees on my examination of the accounts of the St Stepn's Church Endowment Fund {the Trust) for the year ended 31 Dernr 2020, which are set t)ut on pages 6 to 14. Thi8 r8POrt is made $018ly to the charfty's Iruslees, as a body, in accordance with section 154 of the charits Act 2011. My independent examine8 I+}rk has been undertaken 30 that I might stste to the charity's trustees those mattets l am required lo state lo them in an independent examinerfs report and for no other purpose. To the fullest extent pemiitted by law. I do not accept or assume responsibility to anyone other than the charity, the charity's members as a body and the ¢harity's Irustees as a body for my independent examinerfs work, for this report, or for the opinion¥ I have formed. Responsibilitie8 and basi8 of report As the charfty trustees of the Trust you are responsible for the preparation of the accounts in accordance viith the requlrements of the Charities Act 2011 {'the Act'i. I report in respect of my examination of the Trust's accounts carried out under sectron 145 of the 2011 Act and in carying out my examination I have followed all the applicable Directrons given by the ChaTity Commission under secth)n 145(5)(b) of the Act. IndepeThJent examinerfs statement Indep•ndent examlner'8 Statement I have completed my examinalion. I confim 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 Ad,. or 2. the accounts do not accord wth those records; or 3. the accounts do not comply with the applicable requirements ¢onceming the fom and content of accounts set out in the charit5 (Accounts and Reports) Regulations 2008 other than any requ1ment thal the accounts give a 'true aThJ fair view ¥thich ts not a matter considered as part of an independent examination. I have no concems and hav8 come across no other matters in conn8etion wth the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be read)ed Tina Alli80n FCCA Crowe U.K. LLP 55 Ludgate Hill London EC4M 7JW 20 September 2021
ST STEPHEN'S CHURCH ENDOWMENT FUND STATEMENT OF FINANCIAL ACTIVITIES YEAR ENDED 31 DECEMBER 2020 Year ended 31 December 2020 prtor Period Total Fund8 2Q79 Endowment Fund8 Unrestrlctsd Funds Total Fund8 Notes INCOME & ENDOWMENTS Voluntary Income Income from investments Other income 500 34,517 17 500 34,517 17 36,303 Total Income and ondowmonts 35,034 35,034 36,303 EXPENDITURE Expendlture on: Ra181ng fund8 Investment manage18 fee8 Finance and other costs Charltablè actlvitié8 Provision of support to parish of St Slephen's 9,297 9,297 10,391 345 7,316 34,5(Ki 41,816 42,930 Totsl expendilurg 16,613 34,5Crf) 61,113 53,666 Net operatlng deflclt for the year {16,813) 534 (16,079) (17,363) Net gain on inveslment 30,604 30,604 75,210 Net Pknvomant In fund8 13,991 534 14,625 57,847 Raconclllatlon of fund8 Total funds brought forward at 1 January 2020 847.778 30.997 878,775 820.928 Total fvnd6 carrled forward at 31 Decenibor 2020 861,769 31,631 893,300 878, 775 There are no gains and losses other than as re¢oJnised above. All activitl8s ar8 contlnuSng. The notss on pages 9 to 14 form part of these flnanclal 8tatsments
ST STEPHEN'S CHURCH ENDOWMENT FUND BALANCE SHEET AS AT 31 DECEMBER 2020 Notes 2020 2019 FIXED ASSETS Investments 863,724 871,422 CURRENT ASSETS Ca•h at Bank and In Hand Current account Cash hekl by investment managers 2,380 1,338 34.917 13,036 CREDITORS: Amounts lalllng du• wlthln one year AccNaFs (6,341) (5,683) NET CURRENT ASSETS NET ASSETS 893 300 878, 775 THE FUNDS OF THE CHARITY Endowment funds Unrestricted funds 861,769 847, 778 30,997 Total Charity Funds 893 300 878 775 Approved by the Truslees and authorised for issue on i 8 S4ptlX4•b•th 2021 and Sign on their beha by Trusl Trustee Th• notss on pagm 9 to 14 forni part of th880 ftnanclal $tatsm•nt•
ST STEPHEN'S CHURCH ENDOWMENT FUND sTATEmEr OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2020 Statement of ush Ilov 2020 2019 Cagh flows from operatlng actfvlt8. Net cash used in operating activities Cash flows from investlng activitie8: Dividends and interest from investments Management fees pa from endowment funds Purchase ol Investmenls Proceeds from sale of investments Net cash providgj by investing activities 34.517 (9,297) {20,110) 36,303 (10,391) Change in cash and cash equivalents in the reporting period Cash arKI cash equivalents at Ihe beginning of the reporting period Cash and cash equivalents at the end of the reporting perich 21,881 (2,016) 13,036 15,052 34,917 13,036 A. Reconclllatlon of not Incom• to net u•h flow from operating actlvltles Net incomollexpondltur•lfor the reportlng perlod Adjustments for.. (Gains} on investments Dividends and interest from investments managennt fees pard from endowment funds DecaSe in debtors {De¢ase)/ increase in creditors Not cash provided by {u8ed in) operating activitle8 (30,604) {34,517} 9,297 (75,210) (36,303) 10.391 342 480 Analysls of cash and cash 8qulvalents Cash in hand Cash held by investment manager Totsl cash and cash equivalents 2,380 1.338
ST STEPHEN'S CHURCH ENDOWMENT FUND NOTES TO THE FINANCIAL STATEMENTS AS AT 31 DECEMBER 2020 ACCOUNTING POLICIES al B••i• of Accounllng The Trust is a registered charity in England and Wales and as such is a Public Benefit entity. Govemed by its Trust Deed dated 2 April 1937 and extended by a Declaration of Trust dated 21 March 1960. The Trust's Charity Commission registration number is 241052 and its registered address is St. Stephens Church, Southwell Gordens, London, SW7 4RL The financial statements have been prèpared under the historical cost convention as modified by the revaluation of investments and in accordance with the Financial Reporting Standard applicabb in the UK and Republic of Ireland IFRS1021 and the Statement of Recommended Practice applicable to charities preparing their accounts in accordance with th8 Financial Reporting Standard 8pplIcab in the UK and Republlc of Ireland (FRS 1021- effective 1 January 2015. The financial statements have been prepared to give a 'true and fair, view and have departed from the Charities (Account8 and Reports) Regulations 2008 onty to the extent required to provide a 'lrue and fair view,. The departure has arisen because charities are now required to prepare their accounts in accordan with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 1021 issued on 16 July 2014 rather than the Accounting and Reporting by Charities.. Statement of Recommend1 Practice effective from 1 April 2¢X15 which has since been wthdravén. The Trustees remain of the opinion that tt)e tharity has adequate resources to continue its activities for Ihe foreseeable future, although the Truslees will continue to keep the 18vel of grants paid under review in the light of future investment income r1ved. The Trustees aGrdIng[Y continue to adopt the going o)ncem basis in preparing the financial 8tat8m8nts as outlined in the Statement of Trustaes, Rosponslblllties on pag8 4. b) Critical accounting judgements and kèy 8our¢o$ of gstimation uncertainty In the application of the charity's accounting poliaes, which are described in this note, TNstees are required to make judgements, estimates, assumption8 about the carying values of assels and liabilities that are not readity apparent from other sources. The eslimates ar)d underlying assumptions are based on histori1 experien and other factors that are considered to be relevant. Actual results may differfrom these estimates. The estimates a1 underfying assumptions are reviekn*d on an on-going basis. Revisions to accounting estlmates are recognisad in the period In whith the estimate is revised rf the revision affects only that period, or in th8 period of the r8vision and future pericds.
ST STEPHEN'S CHURCH ENDOWMENT FUND NOTES TO THE FINANCIAL STATEMENTS {Contlnued) AS AT 31 DECEMBER 2020 In the view of the Trustees, no assumptions conceming the futur8 or estimation uncertalnty affecting assets and liabilities al the balan¢a sheet date are Ilkely to rerjult in material adjustment to their ¢arying amounts in the next financial year. The principal accounting policies adopted, judgements arKI key souros of estimation uncertainty in the presentation of the financial statements are as follows.. c) Inv08trnent Income Investment income 18 aCUnted for on an accruals basis as eamed and is all derived from listed investwEnls and bank interest receivable. d) Charltable A¢tlvltlos Charitable a1VitieS comprise all costs which are directly attributabte to the objects of the charity. Grants and other expenses are recognised when a ¢onstfUCtive or legal obligation to the rècipient has been created by the charity. èl Governanc8 Costs Govemance costs comprise the Costs of statutory compliance. Including legal advi, independent examinatron fees and the ¢xsts of preparing the statutory acunIs. Portfollo Managèment Fees The c£)st of managing the Trust's investment portfolio is met from Endowment Funds. g) Flxgd Asset Investments Fixed asset investments are staled al mid-market value at the balan sheet date. The Statement of Financial Activities includes the aggregate of realised and unr8alised gains and losses during the year. h) Flnanelol In•trum•nt8 The Trust has finanaal assets and finaneial liabilities of a kind that qualfy as basic finanGial instruments. Basic financial instruments are initlally recognised at transaction value (in¢lLing transaction costs) and are subsequentw re-measured where applicable at amortised ¢ost. Financial assets hekl at ajrortised cost Comprise cash at bank and in hand, together With trade and other dektors. Financial liabilities comprise accruals, trade and othèr creditors. Investments, including bonds and cash hekl as part of an investrrpnt portfolio, are held al fair value at the balance sheet dale, with income, gains and losses reo)gnised in the Statement of Financial Activities. 10
ST STEPHEN'S CHURCH ENDOWMENT FUND NOTES TO THE FINANCIAL STATEMENTS (Continued) AS AT 31 DECEMBER 2020 Endowment Fund The endowment fuThJ can be used for any activities of the charity that fall within its charitable objects. Income arising from the assets held within the endowment fund is therefore shown as unrestricted. JI Taxallon No corporation tax is payable by the Trust as it is able to make use of the tax exemptions on income and capital gains available to charitie$. INCOME 2020 2019 Donati¢)ns Equtties Cash 500 34,517 17 36,303 36,303 ANALYSIS OF TOTAL EXPENDITURE Other Govemance Costs Grants 2020 Total 2019 Tot81 Expendlture on r•l8lng funds: Finan and other costs Investment management fees 345 10,391 9,297 9,297 Expendlture on charltable actlvltl•8: Provision of support to parish of St Stephen'8 7,318 34,500 41,816 42,930 Total expondlture 7316 34500 51113 53668
ST STEPHEN'S CHURCH ENDOWMENT FUND NOTES TO THE FINANCIAL STATEMENTS (Continued) AS AT 31 DECEMBER 2020 GOVERNANCE COSTS 2020 2019 Prof8ssional charg8$ Independent examinerfs fees Accountancy seNics 2,616 3,133 1,567 4,380 3,033 1,517 No trustees received remuneralion or re-imbursement of expenses for their seNices in the current or the preLding year. FIXED ASSET INVESTMENTS 2020 2019 Market value at start of year Addrf(ions Disposals Unrealised gains during the year 871,422 20,110 {58,842} {14,538J 31,034 811,079 Market value at end of year 871422 Cost at end of year At the 31 Dernber 2020 the trust held 1,499,000 units in the Cazenove Charity Multi- Asset Fund valued at $7.62 per unit. The most recent valuation of the Cazenove Charity Multi-As$et Fund can b8 found at ¥Mvw. ENDOWMENT FUNDS 2020 2019 Capital account Balance at start of year Movement during year 847,778 791,889 Balance at end of year 881789 847 778 The endovnnent funds consist of.the principal endowment fund established in 1937 and the addttional end¢)wment fund tablished in 1960. Th8 Trustees believe these are pèmanent endowments, subject to a limited power to resort to capitsl. 12
ST STEPHEN'S CHURCH ENDOWMENT FUND NOTES TO THE FINANCIAL STATEMENTS (Continued) AS AT 31 DECEMBER 2020 ANALYSIS OF NET ASSETS BETWEEN FUNDS 2020 Investments Nat Curronl Assets Total Endowment fund Unr8stri¢ted fund 863,724 (1.955) 31,531 861,769 31,631 863 724 893 300 2019 Investments Net Currenl Assets Totsl Endowment fund Unrestricted fund 871,422 123,644) 30,997 847,778 30,997 871422 RELATED PARTIES The are rK) related paty transactions or balances which require disclosure vlthin the financial statements during 2020. {2019- Nil). 13
ST STEPHEN'S CHURCH ENDOWMENT FUND NOTES TO THE FINANCIAL STATEMENTS (Contlnued) AS AT 31 DECEMBER 2020 10. COMPARATNE STATEMENT OF FINANCIAL ACTivrriES Year ended 31 December 2019 Endowment Unrestrlctsd Funds Fund• Totsl Funds INCOME & ENDOWMENTS Income fmm Inveslments Other income 36,306 36,306 Totsl Incomlng Resources 36,31 36,306 EXPENDFfuRE Expendlture on: Ralslng fund8 Investment managels fees Finan and other costs Charltablo actlvltles Provision of support to parish of St Stephen's 10.391 10,391 345 345 8.930 34.000 42,930 Total Expendlture 19,321 34,345 63,666 Net operating deficit for the year (19.321) 1,958 (17,363) Net galn on inve8trnent 75,210 75,210 Net Movemont In funds 55,889 1,958 67,847 Reconclllatlon of fund8 Total funds brought fop•Mrd at 1 January 2019 791,889 29,039 820 928 Total funds carried forward at 31 Docembor 2019 14