CHARITY NUMBER 241052 ST STEPHEN'S CHURCH ENDOWMENT FUND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022
ST STEPHEN'S CHURCH ENDOWMENT FUND GENERAL INFORMATION Name The Fund for the Endowment ol the Living of St. Stephen's, South Kensington, London is more generally known by ils working name ol Sl. Stephen's Church Endowtnenl Fund. On 22 May 1997 the Charity Comfflissioners sealed a Scheme whereby the income ol the fund subject lo the trusts ol the 1937 Deed was Ihencelorth to be applied for the purposes ol the 1960 Deed las varied or affected by the Scheme) and other matters were provided for. Trustees The Trustees who held ollice during the year and al the dale ol signature ol this report were as follows.. Mr J M Fiandoipn Ichalrmanl Mr P Rodier Mr D H Colville Mrs D Simpson Charity Number 241052 Investment Managers Cazenove Capital 1 London Wall Place, London EC2Y SAU Solicitors Charles Russell Speechlys LLP 5 Fleet Place London EC4M 7RD Address Saint Stephen's Church Soulhwell Gardens London SW7 4FIL Independent Examiner Tina Allison FCCA Chartered Certified Accountant Crowe U.K. LLP 55 Ludgale Hill London EC4M 7JW Bankers Lloyds Bank plc 70-71 Cheapside London EC2V 6EN
ST STEPHEN'S CHURCH ENDOWMENT FUND TRUSTEES, REPORT YEAR ENDED 31 DECEMBER 2022 OBJECTS The Trust is regislered as a charity under number 241052. 11 was established by a Trust Deed dated 2 April 1937 to promote, aid and further the objects of the Church ol England in the Parish ol Sl. Stephen, South Kensington in the Diocese DI London by the endowment ol the living ol the incurnbenl lor the lime being ol said parish and extended by a Declaration ol Trust dated 21 March l 960. ORGANISATIONAL STRUCTURE Sl. Stephen's Church Endowment Fund Ilhe Trust) is managed by Trustees who have authority lor overseeing the activities of the Trust. There are no sub-committees or slafl considered lo be parl ol the key management slruclure. The original Trustees were appointed al the inception ol the Trust, subsequent Trustees being elected by current Trustees. PRINCIPAL ACTIVITIES AND REVIEW OF THE YEAR The Trustees have managed the Trust's investments lo assist in the provision ol income lo the clergy and parish stall of the parish and lo pay incidental expenses. ACTIVITIES AND ACHIEVEMENTS Objectives and achievements The Trust plays an important role in the work ol Sl Stephen's ChLJrch lor the PLJblic benefit. The Trust supporls Ihe work ol a Church ol England parish chLJrch, with religious services available lo all who wish to attend. The church adopts a policy of keeping church doors open as lar as possible, and the clergy or lay helpers maintain a presence during the day lor visitors wishing to speak lo them. There is a strong sense in which the church provides comfort and security lo the community. In the case ot St Stephen's a significant proportion ol the community is Iransienl and therefore needful ol such benefits. The Trust plans lo continue the above activities lor the foreseeable future. The Trustees have had due regard lo the Charity Commission's guidance on public benefit when considering the Trust's activities and objectives. Financial review The Trust's income arises mainly from investment income and is applied by way ol g rants. Investment income lolalled £36,118 12021. £35,176) covering graiils of £35,600 12021.. £35,050) in the year During the year there were nel losses on Investments of £87,42812021= gains of £62,746). The Trust's funds decreased by £105,457 in the year lo 31 December 2022, resulting In funds carried forward 01 £835.27512021 .' £940.7321.
ST STEPHEN'S CHURCH ENDOWMENT FUND TRUSTEES. REPORT YEAR ENDED 31 DECEMBER 2022 RESERVES POLICY The Trustees have considered the reserves held by the Trust as 0131 Decerrber 2022. 11 is the Trustees. policy lo achieve in the mediLJm lo long term unrestricted reserves al least equal to 12 months, grant expenditure. Grant expenditure in the year lo 31 December 2022 was £35,600, and al the balance slieel dale unreslricled reserves stood al £32.084. The Trustees expect to maintain grants lo Sl Stephen's Church during 2023 at a level al least the same as was the case In 2022 The Trustees expect inveslmenl income received during 2023 to be sullicienl lo enable Ihe maintained grants la be paid without having recourse to reserves. INVESTMENT POWERS, POLICY AND PERFORMANCE The Trustees, investment powers are governed by the Trust Deed and the Trustee Act 2000 which permit the Trustees lo invest in such stock. shares and Investments as they see fil. The Trustees, policy is lo seek returns over the long term to.. provide lor real increase in annual income.. and preserve the capital base ol the Trust in real terms. This policy involves investing some ol the TrLJsI's assets for long lerffl growth rather than to maximise short term income. The Trust's investments are held through the Cazenove Charity Mulli-Assel Fund, which is managed by Schroder Unit Trusts Limited and which operates in conlormily with Ihe Trust's policy. Stock market conditions were challenging in 2022 laroely because ol the move by central banks lo much lighter monetary policy as well as the continued conllicl in Ukraine. As indicated in Note 5 to the accaunls, the units ol the Cazenove Charity Mulii-Assel FLJnd were valued at 54.90p each al 31 Decernber 2022. this compares with 61 .29p al 31 December 2021 . Overa11 there has been na material change in value since the year end,. al 4 May 2022 the unil price stood al 54.17p. RISK ASSESSMENT The Trustees have examined the principal areas of the Trust's activity and considered the major risks which may arise. In the opinion ol the Trustees the Trust has established a process and reviewed systems which, under normal conditions. should allow the major risks identified by them lo be managed lo an acceptable level. The Trustees contin lo monitor the level ol Income expected lo be received from the Trust's investments given the possibility ol renewed market uncertainty against the background described above. As also indicated above, the Trustees expect income in 2023 10 be sufficient lo cover grants payable. The position will be kept under review so lar as concerns lulure periods.
ST STEPHEN'S CHURCH ENDOWMENT FUND TRUSTEES. REPORT YEAR ENDED 31 DECEMBER 2022 GRANT MAKING POLICY This year, 2022, the Trust awarded grants of £35:60012021 '. £35.0501 from unreslricled funds in accordance with its long term commitment lo assist with the funding of salaries, running costs and other recurring expenses ol the clergy and parish stall ol the parish ol St Stephen, South Kensington. STATEMENT OF TRUSTEES, RESPONSIBILITIES The Trustees are responsible lor preparing the Trustees, Annual Report and the financial slalemenls in accordance with applicable law and United Kingdom Generally Accepted Accounting Practice Iuniled Kingdom Accounting Slandardsl. The law applicable lo charities in England and Wales requires the Trustees lo prepare financial slalem8nts far each financial year which give a true and lair view ol the slate of allairs ol the charity and ol the incoming resources and application ol resources ol the charity lor that period. In preparing these financial stalemenls, the Trustees are required to.. select suitable accounting policies and then apply therm consislenlly., observe the methods and principles in the applicable Charities SORP., make judgments and eslimales that are reasonable and prudenl.. slate whether applicable accounting standards have been followed, subject lo any material departures disclosed and explained in the financial slalemenl5', prepare the financial statements on the going concern basis unlèss it is inappropriate to presume that the charity will continue in business. The Trustees are responsible for keeping adeqLJale accounting records that are sufficient lo show and explain the charity s Iransaclions, disclose with reasonable accuracy al any lime the financial position ol the charity and enable them ID ensure that the financial slalemenls comply with the Charities Act 2011 , the Charities IAccounls and Rèporlsl Regulations 2008 and the provisions al the charity s conslilulion. They are also responsible lor salegLJarding the assets of the charity and hence lor taking reasonable steps lor the prevention and detection of fraud and other irregularities. Approved by the Trustees on 2023 and signed on their behalf by: Trustee Trustee
Independent examiner's reporl lo the trustees of St Stephen's Church Endowment Fund I report lo the Iruslees on my examination ol the accounts ol the St Stephen s Church Endowment Fund Ilhe Trusll lor the year ended 31 December 2022, which are sel out on pages 6 10 14. This report 15 made solely lo the charity's Iruslees. as a body, in accordance with section 154 01 the Charities Act 2011 . My independent examiner's work has been llnderlaken so that I mig hl slate to the charity s trustees those mallers l am required lo stale lo Ihern in an independent examiiier's report and lor no other purpose. To the lullesl extent permilled by law. I do not accept or assume responsibility lo anyon8 other than the charity, the charity s members as a body and the charity s trustees as a body lor my independent exarniner s work. lor this report, or lor the opinians I have formed. Responsibililies and basis of report As the charity Iruslees ot the Trust you are responsible for the preparation of the accounts in accordance with the requiretnen15 01 the Charilies Act 2011 I'lhe Act'l. I report in respect ol my examination ol the Trust's accounts carried out under section 145 01 Ihe 2011 Act and in carrying oul my examination I have followed all the applicable Directions given by the Charity Commission under section 14515llbl ol the Act. Independent examiner's slalemenl Independent examlner's statement I have completed my examination. I conlirm that no material mallers have come lo my allenlion in connection with the examination giving me cause lo believe that in any material respect.. accounting records were not kept in respect ol the Trust as required by section 130 ol the Act, or 2. the accounts do not accord with those records-, or 3. the accounts do not comply with Ihe applicable requirements concerning the form and conlenl of accounts set out in the Charities IAccoLJnls and Reportsl Regulations 2008 other than any requireinenl that the accounts give a 'lrLJe and lair view which is not a maller considered as part of an independent examination. I have no concerns and have come across no other mallers in connection with the examinatioii lo which allenlion should be drawn IN this report in order lo eiiable a proper underslanding ol the accounts to be reached Tina Allison FCCA Crowe U.K. LLP 55 Ludgale Hill London EC4M 7JW 26 May 2023
ST STEPHEN'S CHURCH ENDOWMENT FUND STATEMENT OF FINANCIAL ACTIVITIES YEAR ENDED 31 DECEMBEFI 2022 Year ended 31 December 2022 Prior Period Total Funds 20£1 Endowment Unrestricted Funds Funds Total Funds Notes INCOME & ENDOWMENTS In¢orne from investments 36,118 36,118 55,176 Total income and endowments 36,118 36,118 35.176 EXPENDITURE Expenditure on.. Raising funds Investment manager's fees Finance and other costs Charitable activities Grants Governance Costs 10,458 10,458 91 9,904 91 35.600 35,600 7,855 35,050 5,536 7,855 Total expenditure 18,313 35,691 54,004 50,490 Net operating def icit for the year 118,3131 427 117,8861 (15,314) Net (Lossll gain on investment 187,4281 187,428) 62. 746 Net Movement in funds 1105,7411 427 {105,314) Reconciliation of f unds Total funds brought forward al 1 January 2022 909,075 31,657 940,732 893,300 Total funds carried lorward at 31 December 2022 803,334 32,084 835,418 940, 732 There are no gains and losses other than as recognised above. All activities are continuing. The notes on pages 9 to 14 form part of these financial statements
ST STEPHEN'S CHURCH ENDOWMENT FUND BALANCE SHEET AS AT 31 DECEMBER 2022 Notes 2022 FIXED ASSETS Investments 822,951 918,737 CUFIFIENT ASSETS Cash at Bank and in Hand Current account Cash held by investment managers 1,482 2,060 17,813 27,829 CREDITORS.. Amounts falling due within one year Accruals 5,346 5,834 NET CURRENT ASSETS NET ASSETS 835,418 940, 732 THE FUNDS OF THE CHARITY Endowment funds Unreslricled funds 803,334 32.084 909, 075 37,657 Total Charity Funds 835,418 940, 732 Approved by the Trustees and aulhorised lor issue on XS and signed on their behalf by 2023 Truste Trustee The notes on pages 9 to 14 form part of these financial statements
ST STEPHEN'S CHURCH ENDOWMENT FUND STATEMENTOF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2022 Statement ot cash tlows 2022 2021 Cash flows from operaling activities.. Nel cash used in operating a¢livilies 44.018 49,093 Cash tlows from investing activities.. Dividends and interest from investments Management lees paid Irorm endowment funds Proceeds from sale ol inve51menls Net cash provided by investing activities 36,103 110,4581 8.358 35,176 (9,904) 7, 733 33, 005 Change in cash and cash equivalents in the reporting period Cash and cash equivalents al the beginning of the reporting period Cash and cash equivalents al the end ol the reporting period 110,0161 (1,088) 27,829 34,917 17.813 27.829 A. Reconciliation of net income to net cash flow from operating activities Net (Deficitll income for the reporling period Adjuslmenls for. Lossl Igainsl on investments Dividends and interest from investments Management fees paid from endowment funds Decrease in debtors IDecreasel l increase in creditors Net cash provided by (used in) operating activities 105.314 87.428 136.1031 10,458 (62, 746) (35. 716) 9,904 488 493 Analysis ot cash and cash equivalents Cash in hand Cash held by investment manager Total cash and cash equivalents 1,482 16.331 2,060 25, 769 27,829
ST STEPHEN'S CHURCH ENDOWMENT FUND NOTES TO THE FINANCIAL STATEMENTS AS AT 31 DECEMBER 2022 ACCOUNTING POLICIES al Basis of Accounting The Trusl is a registered charity in Eng land and Wales and as such is a Public Benefit enlily. Governed by ils Trust Deed dated 2 April 1937 and extended by a Declaration ol Trust dated 21 March 1960. The Trust's Charity Commission registration number is 241052 and ils registered address is si. Stephens Church, Soulhwell Gardens, London, SW7 4RL The financial slalemenls have been prepared Ljnder the historical c051 convention as odilied by the revaluation ol inveslmeiils and in accordance with the Fii)ancial Reporting Standard applicable in the UK and Flepublic ol Irelaiid IFFIS1021 and the Slalement ol Recommended Practice applicable lo charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and gepublic of Ireland IFRS 1021 elleclive 1 January 2015. The financial slalemenls have been prepared lo give a 'lrue and lair, view and have departed from the Charilies (Accounts and Reporlsl Regulations 2008 only to the exlenl required lo provide a 'lrue and lair view,. The departure has arisen because charities are now required ID prepare their accoLsnls in accordance with the Financial Repofling Standard applicable in the UK and Republic ol Ireland l FRS 1021 issued on 16 July 2014 rather than the Accounting and Reporting by Charities.. Slalemenl ol Recomfflended Practice elleclive from 1 April 2005 which has since been withdrawn. The Trustees remain ol the opinion that the charity has adequate resources to continue ils activities for the foreseeable future. although the Trustees will continue lo keep the level ol grants paid under review in the lig hi ol fLJture inveslrnent income received. The Trustees accordingly continue lo adopt the going concern basis in preparing the financial statements as outlined in the Slalemenl of Trustees, Responsibilities on page 4. b) Critical accounting judgements and key sources of estlmatlon uncertainty In the application ol the charity's accounting policies: which are described in this note: Trustees are required lo make judgements, estirnales, assumptions about the carrying values ol assets and liabilities that are not readily apparent from other sources. The eslimales and underlying assLJmplions are based on historical experience and other laclors that are considered lo be relevant. Actual results may diller from these eslimales. The estimates and underlying assumptions are reviewed on an on-going basis. Revisions lo accounting eslimales are recognised in the period in which the estimate is revised il the revision allecls only that period, or In the period of the revision and lulure periods.
ST STEPHEN'S CHURCH ENDOWMENT FUND NOTES TO THE FINANCIAL STATEMENTS (Continued) AS AT 31 DECEMBER 2022 In the view ol the Trustees, no assumptions concerning the future or estimation uncertainty allecling assets and liabilities al the balance sheet dale are likely lo result in a material adjuslrnenl lo their carrying amounts in the next financial year. The principal accounting poSicies adopted, judgements and key sources ol eslimalion uncertainly in the presenlalion of the financial statements are as follows.. c) Investment In¢ome Investment income is accounled lor on an accruals basis as earned and is all derived Irorn listed investments and bank interest receivable. d) Charitable Activities Charitable activities comprise all costs which are directly altribulable lo the objects of the charity. Grants and other expenses are recogn1sed when a conslruclive or legal obligation to the recipient has been created by the charily. e) Governance Costs Governance costs comprise the costs ol stalulory compliance, inclLJding legal advice, independent examination lees and the costs ol preparing the slalutory accounts. f) Portfolio Management Fees The cost ol rnanaging the Trust's investment porilolio is mel from Endowment Funds. gl Fixed Asset Investments Fixed asset investments are staled al mid-warkel value al the balance sheet dale. The Slalemenl ol Financial Activities includes the aggregate of realised and unrealised gains and losses during the year. h) Financial instruments The Trust has financial assets and financial liabilities ol a kind that qualify as basic financial inslrumenls. Basic financial instruments are initially recognised at transaction value (including transaction costs) and are subsequenlly re-measured where applicable al amorlised cost. Financial assets held at amorlised cost comprise cash al bank and in hand, together with trade and other debtors. Financial liabilities comprise accruals, trade and other creditors. Inveslrmenls. including bonds and cash held as parl of an investment portfolio, are held al lair value at the balance sheet dale, with income, gains and losses recognised in the Slalement ol Financial Activities.
ST STEPHEN'S CHURCH ENDOWMENT FUND NOTES TO THE FINANCIAL STATEMENTS (Continued) AS AT 31 DECEMBER 2022 Endowment Fund The endowrnent fund can be used lor any activities ol Ihe charily that lall within Ils charitable objects. Income arising from the assets held within the endowment fund is therefore shown as unrestricted. Il Taxation No corporation lax is payabSe by the Trust as il is able lo make use of the lax exemptions on income and capital gains available lo chaiilies. ANALYSIS OF TOTAL EXPENDITURE Other Governance Costs Grants 2022 Total 2021 Total Expenditure on raising funds: Investment management lees Finance and other costs 10.458 91 10,458 91 9,904 Expenditure on charitable activities: Governance Costs Grant Total expenditure 7,855 7,855 35,600 35,600 7,855 35,600 54 004 5,536 35,050 50.490 GOVERNANCE COSTS 2022 2027 Professional charges Independent examiner's fees Accountancy services 2,875 3,320 1,660 716 3.207 1,613 5.536 No Iruslees received remuneration or re-imbursement of expenses lor their services in the current or the preceding year.
ST STEPHEN'S CHURCH ENDOWMENT FUND NOTES TO THE FINANCIAL STATEMENTS (Continued) AS AT 31 DECEMBER 2022 INCOME 2022 2021 Donations Equities Cash 36,103 15 35,176 35,176 FIXED ASSET INVESTMENTS 2022 2021 Market value al start of year Additions Disposals Unrealised (Lossesll gains during the year 918,737 863, 724 18,358) (7, 733) 62,746 Market value al end ol year 822 951 918,737 Cost a1 end ol year 823 024 823, 024 Al the 31 December 2022 the trust held 1,499.000 units in the Cazenove Charity MLJIti- Asset Fund valued al 54.90 pence per unil. The most recent valLJalion ol the Cazenove Charity Mulii-Assel Fund can be found al www.cazenoveca ital.com/uklcharities ENDOWMENT FUNDS 2022 2021 Capital account Balance at start ol year Movement during year 909,075 105741 861, 76g 47,306 Balance at end ol year 803,334 909, 075 The endowment funds consist of the principal endowrnent fund established in 1937 and the additional 8ndowmenl fund established in 1960. The Trustees believe these are permanent endowments. subject lo a limited power lo resort lo capital.
ST STEPHEN'S CHURCH ENDOWMENT FUND NOTES TO THE FINANCIAL STATEMENTS (Continued) AS AT 31 DECEMBER 2022 ANALYSIS OF NET ASSETS BETWEEN FUNDS 2022 Investments Net Current Asselsl Total Endowment fund Unreslricled fund 822,951 119,6171 32,084 803,334 32,084 822 951 835,418 2021 Investments Nel Current Asselsl Total Endawmenl fLJnd Unreslricled fund 918,737 19,6621 31,657 909,075 31,657 918 737 RELATED PARTIES There are no related party transactions or balances which require disclosure within the financial statements during 202212021. Nil). 13
ST STEPHEN'S CHURCH ENDOWMENT FUND NOTES TO THE FINANCIAL STATEMENTS (Continued) AS AT 31 DECEMBER 2022 COMPARATIVE STATEMENT OF FINANCIAL ACTIVITIES Year ended 31 December 2021 Endowment Unreslricted Funds Funds Total Funds INCOME & ENDOWMENTS Income from investments 35,176 35,176 Total Incoming Resources 35,176 35,176 EXPENDITURE Expenditure on: Raising funds Inveslmenl manager's lees Charitable activities Grants Governance costs 9,904 9,904 35.050 35,050 5,536 5,536 Total Expenditure 15.440 35.050 50,490 Net operating def icit for the year 115,4401 126 {15,314) Net gain on investment 62.746 62.746 Net Movement in funds 47,306 126 47,432 Reconciliation of f unds Total funds brought forward al 1 January 2021 861 769 31,531 893 300 Total lunds carried forward al 31 December 2021 909 075 940 732