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2021-03-31-accounts

CATHOLIC APOSTOLIC CHURCH TRUST PROPERTY (Registered with The Charity Commissioners)

FINANCIAL STATEMENTS

31 MARCH 2021

Registered Charity Number: 245250

CATHOLIC APOSTOLIC CHURCH TRUST PROPERTY (Registered with The Charity Commissioners)

INDEX

Page
1 - 7 Trustees’ Report
8 - 9 Auditors’ Report
10 Balance Sheet
11 Statement of Financial Activities
12 Statement of Cash Flows
13 - 21 Notes to the Financial Statements

CATHOLIC APOSTOLIC CHURCH TRUST PROPERTY

TRUSTEES REPORT

FOR THE YEAR ENDED 31 MARCH 2021

1. REFERENCE AND ADMINISTRATION

The Trust

The Trust’s aims are best described as for “The advancement of the Christian Religion”. To this end the Trust holds two funds.

The English Property Fund (an endowment fund), which holds land and buildings and the proceeds of land and buildings previously sold, as a capital fund, the income from which, after meeting administration and maintenance costs, is used for religious and other charitable purposes in connection with the advancement of the Christian Religion.

The General Purposes Fund, which holds investments the income from which, after meeting administration costs, is used for religious and other charitable purposes in connection with the advancement of the Christian Religion.

Trustees

The Trustees who served throughout the year were:-

Jonathan Michael Pitts Philip Arthur Whittaker Christopher Benjamin Trevor Benjamin Thomas David Baldwin Anthony John Reynoldson Jonathan Francis Carter (appointed 2nd December 2020)

The Trustees are appointed by a resolution of the Trustees

Charity Registration Number 245250 Secretary to the Trustees J C Stacy Address 2 The Cloisters Gordon Square London WC1H 0AG Bankers C. Hoare & Co Ltd 37 Fleet Street London EC4P 4DQ Solicitors Hunters Law LLP 9 New Square Lincoln’s Inn London WC2A 3QN Registered Auditors Haysmacintyre LLP 10 Queen Street Place London EC4R 1AG Investment Advisers CCLA Investment Management Limited Senator House, 85 Queen Victoria Street London EC4V 4ET Investment Powers The provisions of the Trustee Investments Act 1961 apply, now the Trustee Act 2000

1

CATHOLIC APOSTOLIC CHURCH TRUST PROPERTY

TRUSTEES REPORT (continued)

FOR THE YEAR ENDED 31 MARCH 2021

1. STRUCTURE, GOVERNANCE AND MANAGEMENT

Constitution

The Charity is governed by a Charity Commission Scheme dated 21st November 1973.

Management

The routine affairs of the Trust are executed by the Secretary to the Trustees who has delegated executive powers to manage the day to day operations of the Trust from the Trust Office at no. 2 The Cloisters Gordon Square London WC1H 0AG.

The Trustees normally have four formal meetings each year. Separate sessions are held for the General Purposes Fund and the English Property Fund. The affairs and business of the Trust are agreed by the Trustees at these quarterly formal meetings and thereafter actioned on their behalf by the Secretary.

The Secretary has day to day access to the Trustees.

The Trustees and their Secretary, as part of their Risk Management commitment, have produced a Procedures Manual setting down the day to day functions of the Charity and a panel of Trustees audit and update the document at regular intervals. Risks both to and from buildings and premises are managed by the employment of professionals (architects and building surveyors) and mitigated by insurance cover, which includes cover for terrorism. Financial investment risks are managed by the employment of external fund managers from CCLA, who manage the Trust’s COIF ethical investment portfolio.

Safeguarding issues concerning Christian organisations using the Trust’s church buildings have been investigated. These various bodies’ safeguarding policies have been vetted by a legal advisor specializing in these matters, who advised the Trustees as to their suitability for purpose. The Trustees are monitoring these organisations’ compliance with their written safeguarding policies. The Trustees have their own agreed over-arching policy, which is displayed at each of the Trust’s premises.

With these various measures in place the Trustees are confident that risks are contained at an acceptable level.

Trustees

Trustees are selected from members of previous congregations of the Catholic Apostolic Church or those sympathetic to its objectives. A proposed new Trustee is initially interviewed by the Chairman and Trustees. Following approval and appointment, the new Trustee is issued with an information pack detailing the history of the Trust including copies of the various historical Trust deeds and a booklet explaining the role of the Charity Commission. A one to one induction session with the Secretary to the Trustees structured around the Office Procedures Manual, which covers all aspects of the day to day running and organisation of the Trust, is programmed.

Associated Charities

The Trust has one associated charity “The Paddington Church Trust” Charity Registration number 245205.

Staff

The Trust employs an executive officer with the title of “Secretary to the Trustees” and a resident Caretaker and an Assistant to the Caretaker for the Chapel and associated properties at the Albury site near Guildford.

Caretaking services for the Church and Cloisters in Gordon Square, London are provided by the appointed managing agents, Hudsons Property.

2

CATHOLIC APOSTOLIC CHURCH TRUST PROPERTY

TRUSTEES REPORT (continued)

FOR THE YEAR ENDED 31 MARCH 2021

3. OBJECTIVES AND ACTIVITIES

The objective of the Trust is advancement of the Christian religion by the making of grants to assist the clergy in the major branches of the Christian Church in the United Kingdom and for the welfare of both poor members and widows of congregations of the Catholic Apostolic Church and for the maintenance of the remaining church buildings from the Catholic Apostolic Church and their appropriate use for worship by other Churches and congregations as agreed.

Public Benefit

The Trustees have consulted the guidance made available by the Charity Commission for England and Wales on the Public Benefit requirement of the Charities Act 2011.

The Trustees are confident that they have complied with their duty under section 17 of the Charities Act 2011 in that they have had due regard to public benefit guidance as currently published by the Commission.

In furtherance of its charitable purposes for the public benefit in the “Advancement of the Christian Religion” the Trustees give details of their activities this financial year under the following two headings “Grants awarded” and “Maintenance of Retained Properties”.

Grants awarded

General Purposes Fund

The Trust holds the General Purposes Fund, which holds investments the income from which, after meeting administration costs, is available for religious and other charitable purposes in connection with the advancement of the Christian Religion.

During the year the following grants were made:- £
Additional Curates Society 55,000
Forward in Faith Chaplaincy support 16,000
Greek Orthodox Church 25,000
Roman Catholic Church 15,000
Greek Orthodox University Chaplaincy support 20,000
Russian Orthodox Church 15,000
Wolverhampton Christian Fellowship 25,000
-----------------
161,000
Various small grants 20,340
-----------------
£191,340
========

English Property Fund

The Trust holds the English Property Fund (an endowment and restricted fund) which holds land and buildings and the proceeds of land and buildings previously sold, as a capital fund, the income from which after meeting administration and maintenance costs is restricted for religious and other charitable purposes in connection with the advancement of the Christian Religion.

During the year the following grant was made:

Forward in Faith general purposes £32,250

3

CATHOLIC APOSTOLIC CHURCH TRUST PROPERTY

TRUSTEES REPORT (continued)

FOR THE YEAR ENDED 31 MARCH 2021

3. OBJECTIVES AND ACTIVITIES (continued)

Maintenance of Retained Properties

The retained properties are maintained as required for historic and listed buildings. During the year the following works were undertaken:-

The Cloisters

The flats in the Cloisters were let by the appointed managing agents Hudsons Property. Routine maintenance tasks were undertaken during the year. Redecoration and some refurbishment works were undertaken on four flats, between occupancies. These were under the supervision, where appropriate, of the Trustees’ appointed Architect for the building, Nye Saunders Ltd.

Rental income from these flats is used to support the Trust’s objects.

Central Church (commonly known as Christ the King)

The English Chapel, meeting rooms and basement office accommodation is currently leased to Forward in Faith, part of the Church of England. Forward in Faith employs a Priest as chaplain and Eucharist services are held each weekday in the Chapel, which is open to the general public for private devotions from 8.30am until 4pm each working day. However, usage has been severely curtailed by the Government, due to the Covid pandemic

The main Church building is licenced to Euston Church an evangelical outreach of the Church of England (under the oversight of the Bishop of London). Morning and evening services are held every Sunday as well as weekday services and Bible study meetings. Again, usage has been partially curtailed by the Government, due to the Covid pandemic, although substitute on-line services were taken by Clergy based on site.

The main Church is normally also used for monthly public organ recitals, for which no admission charge is made. However, these have not been possible this year due to the Covid pandemic.

This property also houses the Church registers for baptism and marriage for closed Catholic Apostolic Churches in the United Kingdom and also the USA and Canada to which church members and the public have access via the Trustees’ Secretary.

Routine maintenance tasks were undertaken during the year. All work is carried out under the supervision of the appointed Architect, Nye Saunders Ltd.

Albury Site Properties

Albury Chapel

This property houses religious archives from the Catholic Apostolic Church and is visited by members of Catholic Apostolic Church congregations from the United Kingdom, Europe, United States, Canada, Australia and S Africa.

Cooks Place

The east end of this property is used by the Albury site Custodian and the west section is leased to a tenant. Rental income from both east and west section accommodation is used to support the Trust’s objects. The rental values of the two sections were reassessed during the year by qualified local professionals. Parts of the house are 13[th] century and it is listed.

4

CATHOLIC APOSTOLIC CHURCH TRUST PROPERTY

TRUSTEES REPORT (continued)

FOR THE YEAR ENDED 31 MARCH 2021

3. OBJECTIVES AND ACTIVITIES (continued)

Lyne Cottage

This building is used by the Caretaker.

Routine maintenance tasks on the various properties at Albury were undertaken during the year. All work is carried out under the supervision of the appointed Architect, Nye Saunders Ltd. Nye Saunders also carried out a detailed fabric inspection of the Chapel during the year, to check for any remedial works likely to be needed in the next few years.

Wolverhampton Church

The property is currently leased to The Wolverhampton Christian Fellowship, a non-conformist Church. The Trustees are satisfied that the lessees continue to comply with the issues of a good housekeeping nature identified in the current Fire Risk Assessment.

Routine maintenance tasks have been undertaken during the year, under the supervision of the appointed Architect for the site, Thorne Architecture Ltd.

4. ACHIEVEMENTS AND PERFORMANCE

During the year, the Covid pandemic has necessetated some adjustments. Budgets took account of predicted levels of reduction in various income streams, although in practice income has not suffered as much as anticipated. Office staff (paid and voluntary) worked from home as much as practicable, generally only going in once a week to deal with post received, filing and requests.

Caretaking staff at Albury have not been directly affected by Covid at work, as they live on site. Caretaking in London, after initial concerns regarding the possible effect of changes to public transport, proceeded as normal, subject to appropriate protective measures. Similarly, contractors working at the various properties have generally been able to continue as normal, subject to appropriate protective measures.

The Trustees are satisfied that all current property maintenance requirements as advised by their appointed Architects have either been carried out or are programmed and funded for execution within the time scales recommended.

The Trustees are satisfied that, after providing sufficient funds for building maintenance and reserves for future years, the level of grants made during the year properly utilised the available investment income. The Trustees are satisfied that the Trust is considered a going concern.

The Trustees are satisfied that a reasonable return on investments has been obtained without undue risk (as advised by consultants) and a reasonable income from revenue generating property has been obtained (as advised by consultants). It should be understood that the Trustees maintain an ethical investment policy.

The Trust’s funds are held within the COIF Charities Fixed Interest Fund and COIF Charities Ethical Investment Fund and the COIF Charities Property Fund. These are managed by CCLA and are subject to their Socially Responsible Investment policies with which the Trustees are in agreement. The Funds are promoted as Responsible Funds that consider the economic, social and environmental impacts of the companies in which the funds invest and avoid direct investment in areas such as armaments, gambling and tobacco.

The CCLA COIF fund managers have a proactive engagement process with companies in which it invests on nonfinancial issues which could have a material impact on business such as supply chain management, environmental impacts, human rights and labour standards and the Trustees are in agreement with this approach.

The charity does not carry out any fundraising with the public and has had no complaints in the year with regard to fundraising practices.

5

CATHOLIC APOSTOLIC CHURCH TRUST PROPERTY

TRUSTEES REPORT (continued)

FOR THE YEAR ENDED 31 MARCH 2021

5. RISK REVIEW

Risk Area Likelihood Impact Mitigation Monitoring
External
Economy		 Medium Low Financial Advisors Secretary
Terrorism Low High Insurance Cover Secretary
Internal
Investments		 Low Medium Financial Advisors Secretary
Buildings
Income Cloisters
Maintenance -
Central church
Cloisters
Wolverhampton
Albury
Paddington		 Low/Medium
Medium
Medium
Medium
Medium
Medium		 Low/Medium
Low
Low
Low
Low
High		 Letting Managers
Technical Advisors
Technical Advisors
Technical Advisors
Technical Advisors
Financial Reserves		 Secretary
Secretary
Secretary
Secretary
Secretary
Secretary
Personnel - Secretary
-
Failure
-
Resignation		 Low
Low		 Medium
Medium		 Procedures Manual
Procedures Manual		 Trustees
Trustees
Caretaker
-
Central Church
-
Albury		 Low
Low		 Medium
Low		 Procedures Manual
ProceduresManual		 Secretary
Secretary

6. FINANCIAL REVIEW

The Trust is reliant on the income from its investments, which are long term funds seeking capital growth and sustainable income with protection from inflation. Income from investments amounted to £785,316, an decrease of £12,338 from the previous year. Investment management costs decreased by £251,095 due to one-off roof repairs and external decoration works at the Cloisters property in the previous year. Investments recorded gains of £2,555,993, due to a recovery in stock markets, which compares with losses of £421,754 in the previous year. The charity’s investment properties were revalued in the year by Hudson’s, making a gain of £2,785,000.

Covid 19 has had no noticeable effect on finances to 31 March 2021.

The Trustees maintain reserves at a level to provide sufficient income to fund grants made by the General Purposes Fund and to meet costs that may arise on the properties of the English Property Fund. Unrestricted reserves increased to £9,760,748 and restricted funds rose to £18,562,177.

7. PLANS FOR THE FUTURE

PROPERTY

The Trust has a ten year forward maintenance profile in place, identifying the major property maintenance works that are expected to be required over the period to the current building stock, to which estimated costs have been applied. The Trustees are confident that proper allowance has been made on a year by year basis to meet these expenses.

6

CATHOLIC APOSTOLJC CHURCH TRUST PROPERTY TRUSTEES REPORT l¢ontiuued) FOR THE YEAR ENDED31 MARCH 2021 8. TRUSTEE ' RESP IBILITIE TATEMENT The 'fru5tees art responsible tor preparing the Tru51ees' Rew and the finaneial 5LalemenLS in accordance iviih applicable laii. and Lnited Kingdom Ac¢ouniirt8 Standard5 (United Kin8dom Generally Accepted Aceountin8 Practice). The laii. applicable io chariiies in EnBlat)d & Wales requires the iN]JttS ¢0 wepare financial 51atement5 for each rinancial year ii'hich 8tN'e a inje and fair vieii of lh¢ of affairs of th¢ ¢hariL> Ind of ¢he incoming resources and applie￿i¢)n of r¢50ur¢¢s of th¢ ¢hariiy for that Peri￿1. In preparing these financia] Sla￿￿¢￿￿ ihe tru$￿t5 are required lo.. Select suitable accountin8 rA>licies and ihcn aFvl> them eotESistrntl>': Observe the methods and principles in the Chariiies SORP. M4k¢ judgemthts ond estimaies that are r¢asonable and Stai¢ ii.hether applicable a¢¢ouniing st3ndaTds haie been follthicd. subjert IO any matthal departures disc105ed and cxplained in the financial 5takrnents- Prepare the financial Maternents on the goin8 concern basis unltss it is inappropriate to presume thai Lhe chariiy vill ¢on¢inu¢ in business. The TTUStets are rtsrx)n5ible for keepin8 proper accountin8 records that disclose i%ith rrdsonable ac¢ura¢y ai any lime Ihe financial rK>sition of the charli) and enable them ￿ ensure ihai the financial ￿atements wmply ii'iih the Chariiies Act 2011. the applicable ChariD' IAccoNJn15 and Rewrtsl Re8ulaiion5 and ihe pro%'isions ot'ihe [rU￿ deed. They are a150 re5pon5ible for 5aft8uardin8 the &s5ets of the charity and hence for tskin8 Te&50n8ble slep5 for the pre¥eniiot) and d¢iection ol-fraud and other irre8ulariiies. Approveil by the Truaees on 16June2021 and signed &$ auihoriscd on their Fthalf b>.: TNstee Trusttt

INDEPENDENT AUDITORS’ REPORT TO THE TRUSTEES OF

CATHOLIC APOSTOLIC CHURCH TRUST PROPERTY

Opinion

We have audited the financial statements of Catholic Apostolic Church Trust Property for the year ended 31 March 2021 which comprise the Balance Sheet, the Statement of Financial Activities, the Statement of Cash Flows and notes to the financial statements, 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 Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder. 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

In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The trustees are responsible for the other information. The other information comprises the information included in the Trustees’ Annual Report. 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

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:

8

INDEPENDENT AUDITORS’ REPORT TO THE TRUSTEES OF

CATHOLIC APOSTOLIC CHURCH TRUST PROPERTY (continued)

Responsibilities of trustees for the financial statements

As explained more fully in the trustees’ responsibilities statement set out on page 6, 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 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:

Based on our understanding of the charity and the environment in which it operates, we identified that the principal risks of non-compliance with laws and regulations related to compliance with employment law and health and safety regulations, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Charities Act 2011 and payroll taxes.

We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to management bias in certain accounting estimates. Audit procedures performed by the engagement team included:

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of this report

This report is made solely to the charity’s trustees, 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 trustees 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’s trustees as a body for our audit work, for this report, or for the opinions we have formed.

Haysmacintyre LLP 10 Queen Street Place
Statutory Auditors London
Date:
16 June 2021		 EC4R 1AG

Haysmacintyre LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006

9

CATHOLIC APOSTOLIC CHURCH TRUST PROPERTY BALANCE SHEET AS AT31 MARCH 2021 2021 2•20 Notes FIXED ASSETS Tangible assds- rreehold Property- charitable use iol soi In¥e51meni wopetty Invr51m¢nts 11285.CXX> 16J92.535 8.5(M).IK 13.836.i42 27.677.535 22.336.542 27.678.036 22.J36.542 CURRENT ASSETS Amount5 dme Y41thl o¢ yur: 112.083 567.327 77.914 533.1)66 Cosh at bank and in hand 679.410 610.980 CREDITORS: amounts due iwithin one y¢or 134.5211 116.4511 NET CURRENT ASSETS 644.889 594.529 £28.322.92i £22.931.572 GenLral Purposes Fund (Unre￿riCted1 rnglish Prowt) Fund (r¢siria¢di 9.760.748 18.562.177 -348.025 14.583.547 FUNDS £28.322.92i £22.93 1.572 I hc linancial siatemenis %iere approvtd thd authorised for is5y¢ by the Board ofthe TTu#ttS on 16 June 2021 nd iiere signed b¢loiY on its behall b)": Tnjstee Trusii 10

CATHOLIC APOSTOLIC CHURCH TRUST PROPERTY

STATEMENT OF FINANCIAL ACTIVITIES

FOR THE YEAR ENDED 31 MARCH 2021

General
Purposes English Property
Fund Fund Total Total
(Unrestricted) (Restricted) 2021 2020
Notes £ £ £ £
Income and endowments from:
Investments 9 321,880 463,436 785,316 797,654
Other trading activities 10 379 - 379 1,048
----------------- ------------------ ------------------ ------------------
Total 322,259 463,436 785,695 798,702
----------------- ----------------- ------------------ ------------------
Expenditure on:
Raising funds:
Investment management costs 11 - 185,535 185,535 436,630
----------------- ----------------- ----------------- -----------------
Charitable activities:
Religious 179,997 35,250 215,247 225,439
Widows and poor 22,248 - 22,248 40,363
Building maintenance 100,645 211,660 312,305 353,103
----------------- ----------------- ----------------- -----------------
Total charitable activities 12 302,890 246,910 549,800 618,905
----------------- ----------------- ----------------- -----------------
Total 302,890 432,445 735,335 1,055,535
----------------- ----------------- ------------------ ------------------
Net
income/(expenditure)		 and net
movement in funds before gains and
losses on investments 19,369 30,991 50,360 (256,833)
Net (losses) gains on investments
- realised and unrealised 4 1,393,354 1,162,639 2,555,993 (421,754)
- Unrealised Gain (loss) on revaluation of
Investment property - 2,785,000 2,785,000 -
-------------------- ---------------------- ----------------------- -----------------------
1,412,723 3,978,630 5,391,353 (678,587)
Transfers - - - -
-------------------- ---------------------- ----------------------- -----------------------
NET MOVEMENT IN FUNDS 1,412,723 3,978,630 5,391,353 (678,587)
Reconciliation of funds
Total funds brought forward 8,348,025 14,583,547 22,931,572 23,610,159
--------------------- ---------------------- ------------------------ ------------------------
Total funds carried forward 8 £9,760,748 £18,562,177 £28,322,925 £22,931,572
========== ========== =========== ===========

All incoming resources and resources expended derive from continuing activities.

All gains and losses recognised in the year are included in the Statement of Financial Activities.

The comparative Statement of Financial Activities for the year ended 31 March 2020 is shown in note 21 to these financial statements.

11

CATHOLIC APOSTOLIC CHURCH TRUST PROPERTY

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 MARCH 2021

2021 2020
£ £
Cash flows from operating activities:
Net cash used in operating activities (see below) (751,055) (1,127,833)
------------------ ------------------
Cash flows from investing activities
Dividends, interest and rents from investments 785,316 869,654
----------------- -----------------
Net cash provided by investing activities 785,316 869,654
----------------- -----------------
Change in cash and cash equivalents in the year 34,261 (258,179)
Cash and cash equivalents at the start of the year 533,066 791,245
----------------- -----------------
Cash and cash equivalents at the end of the year £567,327 £533,066
======== ========
RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES
Net movement in funds (as per the Statement of
Financial Activities) 5,391,353 (678,587)
Adjustments for:
Gains/(losses) on investments (5,340,993) 421,754
Dividends, interest and rent from investments (785,316) (869,654)
(Increase)/decrease in debtors (34,169) (2,732)
Increase in creditors 18,070 1,386
----------------------- -----------------------
Net cash used in operating activities (£751,055) £(1,127,833)
=========== ===========
Analysis of changes in net funds
Other At
At non-cash 31 March
1 April 2020 Cash flows
changes		 2021
£ £ £ £
Cash and bank/deposits 533,066 34,261 - 567,327
========= ========= ========= =========

12

NOTES TO THE FINANCIAL STATEMENTS

CATHOLIC APOSTOLIC CHURCH TRUST PROPERTY

FOR THE YEAR ENDED 31 MARCH 2021

1. ACCOUNTING POLICIES

The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of financial statements are as follows:

a)

Basis of preparation

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Statement of Recommended Practice for Charities (SORP 2015) (Second Edition, effective 1 January 2019) and, the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).

Catholic Apostolic Church Property meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s).

b)

Preparation of the accounts on a going concern basis

Having considered future budgets and cash flows, the trustees confirm that they have no material uncertainties about the entity’s ability to continue as a going concern for the foreseeable future. The most significant uncertainty that affect the carrying value of assets held by the charity are the level of investment return and the performance of investment markets. Whilst Covid 19 may affect the precise level of grants made, the predicted budgets and the Trust’s large investments indicate that it continues to be a going concern for the foreseeable future.

c)

Income

All incoming resources are included in the SOFA 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. The following specific policies apply to categories of income:

Donations & Grants where related to performance and specific deliverables are accounted for as the charity earns the right to consideration by its performance. Where income is received in advance of its recognition it is deferred and included in creditors. Where entitlement occurs before income being received the income is accrued.

Investment income is credited to income when it is receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the bank. Dividends are recognised once the dividend has been declared and notification has been received of the dividend due.

d)

Expenditure and irrecoverable VAT

Liabilities are recognised as resources expended as soon as there is a legal or constructive obligation committing the charity to the expenditure. All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category.

The cost of generating funds consists of the property management and property repairs and maintenance costs are shown in note 11.

Grants payable are payments made to third parties in the furtherance of the charitable objectives of the Charity. The grants are accounted for where either the trustees have agreed to pay the grant without condition and the recipient has a reasonable expectation that they will receive a grant, or any condition attaching to the grant is outside the control of the charity.

Irrecoverable VAT is charged against the category of resources expended for which it was incurred.

Overhead and support costs relating to the charitable activities have been apportioned based on staff time. The allocation of overhead and support costs is analysed in note 13. Governance costs comprise direct cost for the statutory and governance expenditure of the charity and have also been allocated to charitable activities.

13

CATHOLIC APOSTOLIC CHURCH TRUST PROPERTY

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

1. ACCOUNTING POLICIES (continued)

e) Fixed Assets

Freehold properties are shown at a nominal value. The cost of acquiring these properties has been written off in previous years and is now unknown. All the properties are over one hundred years old and are considered to be fully depreciated. Details of the properties are given in note 18.

f) Investments

Investments are a form of basic financial instrument. They are initially recognised at their transaction value and subsequently valued at their fair value at the balance sheet date using the closing quoted market bid price. The Statement of Financial Activities includes the net gains and losses arising on revaluation and disposals throughout the year. The charity holds its Cloister flats as an investment property. These flats are let out and are shown at market value.

g) Funds

The charity has a restricted fund: The English Property Fund, which holds land and buildings and the proceeds of land and buildings previously sold as capital, part of which is endowed. The income from which after meeting administration and maintenance costs is restricted for religious and other charitable purposes in connection with the advancement of the Christian religion.

There is also an unrestricted fund: The General Purposes Fund, which holds investments which may be applied to religious and other charitable objects in connection with the advancement of the Christian religion.

h) Realised gains and losses

All gains and losses are taken to the statement of financial activities as they arise. Realised gains and losses on investments are calculated as the difference between sales proceeds and opening market value (purchase date if later). Unrealised gains and losses are calculated as the difference between the market value at the year end and opening market value (or purchase date if later). Realised and unrealised gains are not separated in the Statement of Financial Activities.

i) Debtors

Debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

j) Cash at bank and in hand

Cash at bank and in hand includes bank accounts, cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

k) Creditors and provisions

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

l) Critical accounting judgements and estimation uncertainty

In preparing these accounts, management has made judgements, estimates and assumptions that affect the application of the charity’s accounting policies and the reported assets, liabilities, income and expenditure and the disclosures made in the accounts. The only significant estimation relates to the valuation of the investment property. In the Trustees’ opinion there are no indications that the value has changed significantly because rental yields remain consistent.

m) 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.

14

CATHOLIC APOSTOLIC CHURCH TRUST PROPERTY

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 MARCH 2021

2. TANGIBLE FIXED ASSETS Churches Other Total
£ £ £
Freehold Properties
As at 31 March 2021 201 300 501
====== ====== ======
As at 31 March 2020 201 300 501
====== ====== ======
See note 18 for more details.
3. INVESTMENT PROPERTY
As at 1 April 2020 8,500,000
Revaluation 2,785,000
------------------------
As at 31 March 2021 £11,285,000
===========

The Cloisters, Gordon Square, have been refurbished in prior years and the flats are let. The property was revalued as at March 2021 by Hudsons Estate Management Services, on an open market basis and have been valued at £11,285,000.

4. INVESTMENTS Cost Market Value
£ £
As at 1 April 2020 9,531,156 13,836,542
Gains and losses on disposals and revaluation - 2,555,993
---------------------- ------------------------
As at 31 March 2021 £9,531,156 £16,392,535
========== ===========
The investments are:
COIF Charities Ethical Investment Fund income units 8,280,009
COIF Charities Property Fund Income units 1,244,845
COIF Ethical Fund 6,867,680
------------------------
£16,392,535
===========
5. DEBTORS 2021 2020
£ £
Prepayments 112,083 77,914
========= =========
6. CASH AT BANK AND IN HAND

The balance shown includes deposits of £198,167 (2020: £383,895) with COIF Charities Deposit Fund. Tenants’ deposits are held by the managing agent and are not included in these accounts.

7.

CREDITORS 2021 2020
£ £
Deferred income 23,421 5,351
Accrued expenses 11,100 11,100
----------------- -----------------
£34,521 £16,451
======== ========

15

CATHOLIC APOSTOLIC CHURCH TRUST PROPERTY

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 MARCH 2021

8. ANALYSIS OF CHARITABLE FUNDS – 2021 General English Property
Purposes Fund Fund
There are two funds as described in the (Unrestricted) (Restricted) Total
Trustees’ report. £ £ £
Tangible fixed assets - 11,285,501 11,285,501
Investments 9,524,855 6,867,680 16,392,535
Current assets 246,993 432,417 679,410
Current liabilities (11,100) (23,421) (34,521)
--------------------- ------------------------ -------------------------
Total £9,760,748 £18,562,177 £28,322,925
========== =========== ============
Represented by:
Unrestricted/restricted funds:
Accumulated surpluses 6,009,417 3,526,645 9,536,062
Unrealised investment gains 3,751,331 4,051,964 7,803,295
Capital reserve - 10,216,938 10,216,938
Endowment fund:
Capital reserve - 766,630 766,630
--------------------- ---------------------- ------------------------
£9,760,748 £18,562,177 £28,322,925
========== =========== ============
The movements on the above funds were as follows:-
Unrealised
Capital Investment Accumulated
Reserve Gains/(losses) Surpluses Total
£ £ £ £
At 1 April 2020 10,983,568 2,462,302 9,485,702 22,931,572
Gains on investments - 5,340,993 - 5,340,993
Net profit - - 50,360 50,360
------------------------ --------------------- ---------------------- ------------------------
At 31 March 2021 £10,983,568 £7,803,295 £9,536,062 £28,322,925
=========== ========== ========== ============
ANALYSIS OF CHARITABLE FUNDS - 2020
General English Property
Purposes Fund Fund
There are two funds as described in the (Unrestricted) (Restricted) Total
Trustees’ report. £ £ £
Tangible fixed assets - 8,500,501 8,500,501
Investments 8,131,501 5,705,041 13,836,542
Current assets 227,624 383,356 610,980
Current liabilities (11,100) (5,351) (16,451)
--------------------- ------------------------ -------------------------
Total £8,348,025 £14,583,547 £22,931,572
========== =========== ============
Represented by:
Unrestricted/restricted funds:
Accumulated surpluses 5,990,048 3,495,654 9,485,702
Unrealised investment gains 2,357,977 104,325 2,462,302
Capital reserve - 10,216,938 10,216,938
Endowment fund:
Capital reserve - 766,630 766,630
--------------------- ---------------------- ------------------------
£8,345,025 £14,583,547 £25,537,923
========== =========== ===========

16

CATHOLIC APOSTOLIC CHURCH TRUST PROPERTY

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 MARCH 2021

The movements on the above funds were as follows:-

Unrealised
Capital Investment Accumulated
Reserve Gains/(losses) Surpluses Total
£ £ £ £
At 1 April 2019 10,983,568 2,994,056 9,742,535 23,610,159
Gains on investments - (421,754) - (421,754)
Net profit - - (256,833) (256,833)
------------------------ --------------------- ---------------------- ------------------------
At 31 March 2020 £10,983,568 £2,462,302 £9,485,702 £22,931,572
=========== ========== ========== ============

9. INVESTMENT INCOME
9. INVESTMENT INCOME 2021 2020
£ £
Dividends 529,523 534,598
Bank interest 120 1,598
Rents received 255,673 261,458
------------------ ------------------
£785,316 £797,654
========= ========
10. OTHER TRADING ACTIVITIES 2021 2020
£ £
Book sales 370 1,048
======= =======
11. INVESTMENT MANAGEMENT COSTS 2021 2020
£ £
Property management 32,996 30,609
Property repairs and maintenance 152,539 406,021
----------------- -----------------
£185,535 £436,630
======== ========

17

CATHOLIC APOSTOLIC CHURCH TRUST PROPERTY

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 MARCH 2021

12. CHARITABLE ACTIVITIES - 2021

Activities undertaken directly Activities undertaken directly
Church
almanacs and Property Governance Support
Grants sermons Costs costs Costs Total
£ £ £ £ £ £
Religious 203,250 5,089 - 624 5,284 214,247
Widows and Poor 19,340 - - 624 2,284 22,248
Albury grant 1,000 - - - - 1,000
Building maintenance - - 161,990 11,236 139,079 312,305
------------------ --------------- ------------------ ------------------ ---------------- ------------------
£223,590 £5,089 £161,990 £12,484 £146,647 £549,800
========= ======= ======== ======== ======== ========

CHARITABLE ACTIVITIES - 2020

Activities undertaken directly Activities undertaken directly
Church
almanacs and Property Governance Support
Grants sermons Costs costs Costs Total
£ £ £ £ £ £
Religious 209,000 9,051 - 785 5,603 224,439
Widows and Poor 36,975 - - 785 2,603 40,363
Albury grant 1,000 1,000
Building maintenance - - 219,235 11,236 119,744 353,103
------------------ --------------- ------------------ ------------------ ---------------- ------------------
£246,975 £9,051 £219,235 £15,694 £127,950 618,905
========= ======= ======== ======== ======== ========

12A. CHARITABLE ACTIVITIES ANALYSED BY FUND

General English General English
Purposes Property 2021 Purposes Property 2020
Fund Fund Total Fund Fund Total
£ £ £ £ £ £
Religious 179,997 35,250 215,247 179,439 46,000 225,439
Widows and poor 22,248 - 22,248 40,363 - 40,363
Building maintenance 100,645 211,660 312,305 95,376 257,727 353,103
------------------ ------------------ -------------------- -------------------- ---------------- ------------------
£302,890 £246,910 £549,800 £346,615 £323,508 £618,905
======== ======== ========= ========= ======== ========

18

CATHOLIC APOSTOLIC CHURCH TRUST PROPERTY

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 MARCH 2021

13. ALLOCATION OF SUPPORT COSTS AND OVERHEADS

The breakdown of support costs and how these are allocated between raising funds and charitable activities is set out below.

Basis of Raising Charitable
Cost type apportionment Funds Activities Total
£ £ £
Salaries Staff time - 92,903 92,903
Office costs Staff time - 53,744 53,744
--------------- ---------------- -----------------
£- £146,647 £146,647
======= ======== ========
Comparative figures
Salaries Staff time - 97,372 97,372
Office costs Staff time - 30,578 30,578
--------------- ---------------- -----------------
£- £127,950 £127,950
======= ======== ========
14. GOVERNANCE COSTS 2021 2020
£ £
Fees paid to the Auditors
- Audit 6,400 6,400
- Accountancy 4,800 4,700
- Other 1,040 2,936
----------------- -----------------
Other 12,510 14,036
Trustees’ travelling expenses (6 Trustees (2020: 6 Trustees)) 244 1,659
----------------- -----------------
£12,484 £15,695
======== ========
15. STAFF COSTS 2021 2020
£ £
Wages and salaries 88,445 91,987
Social security costs 4,458 5,385
------------------ -----------------
£92,903 £ 97,372
======== ========
Number of employees: (1 administration; 2 caretaking) 3 3
======= ========

1 employee earned between £60,000 and £70,000 per annum (2020: the same). No remuneration was paid to any trustees. Total remuneration for key management personnel was £69,598 (2020: £69,250). Included in the 2020 salaries figure was an ex-gratia payment of £10,000 to a former employee.

16. GRANTS GIVEN

Grants are paid to a number of Christian denominations and charities for the Clergy and their dependants. Such donations amounted to £203,250 (2020: £209,000) and are included within total grants paid of £223,590 (2020: £246,975) as detailed in note 12 and the Trustees’ Report. All grants were paid to institutions.

19

CATHOLIC APOSTOLIC CHURCH TRUST PROPERTY

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 MARCH 2021

17. COMMITMENTS

There are no material amounts authorised or contracted for at the year end.

18. FREEHOLD PROPERTIES Insurance Book Value Book Value
Value 2021 2020 Notes
£ £ £
CHURCHES
Gordon Square 59,583,047 100 100 a)
Wolverhampton 7,674,449 100 100 b)
OTHER PROPERTIES
Cooks Place, Albury 3,007,196 100 100 c)
Lyne Cottage, Albury 630,543 100 100 d)
Apostles Chapel, Albury 14,369,479 100 100 e)
OTHER CHURCH
Paddington Church 33,000,000 1 1 f)
----------------------- --------------- ----------------
£118,264,714 £501 £501
============ ======= =======

NOTES

Insurance values indicate the size of the properties but give no indication of the market value if in fact it was possible to sell the Churches. As indicated in the accounting policies, all Churches are over 100 years old and are considered to be fully depreciated. Other properties are adjacent to the particular church, and if now so available are let, but do not, in the opinion of the Trustees, have a sufficiently material value for inclusion in the Balance Sheet, except for the Cloisters which have been refurbished and the flats let (see note 3).

19. RELATED PARTIES

The charity did not have any related party transaction in either the current or prior year.

20

CATHOLIC APOSTOLIC CHURCH TRUST PROPERTY

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 MARCH 2021

20. COMPARATIVE STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2020

FOR THE YEAR ENDED 31 MARCH 2020
General
Purposes English Property
Fund Fund Total
(Unrestricted) (Restricted) 2020
£ £ £
Income and endowments from:
Investments 330,733 466,921 797,654
Other trading activities 1,048 - 1,048
----------------- ------------------ ------------------
Total 331,781 466,921 798,72
----------------- ----------------- ------------------
Expenditure on:
Raising funds:
Investment management costs - 436,630 436,630
----------------- ----------------- -----------------
Charitable activities:
Religious 179,439 46,000 225,439
Widows and poor 40,363 - 40,363
Building maintenance 95,376 257,727 353,103
----------------- ----------------- -----------------
Total charitable activities 315,178 303,727 618,905
----------------- ----------------- -----------------
Total 315,178 740,357 1,055,535
----------------- ----------------- ------------------
Net income and net movement in funds
before gains and losses on investments 16,603 (273,436) (256,833)
Net gains on investments
- realised and unrealised (245,840) (175,914) (421,754)
Unrealised losses on revaluation of
Investment property - - -
-------------------- ---------------------- -----------------------
NET MOVEMENT IN FUNDS (229,237) (449,350) (678,587)
Reconciliation of funds
Total funds brought forward 8,627,262 14,982,897 23,610,159
--------------------- ---------------------- ------------------------
Total funds carried forward £8,348,025 £14,583,547 £22,931,572
========== ========== ===========

21