## **THE SOCIETY FOR THE MAINTENANCE OF THE FAITH**
**TRUSTEES’ REPORT AND ACCOUNTS**
## **31 DECEMBER 2021**
**Registered Charity No. 247767**
**SOCIETY FOR THE MAINTENANCE OF THE FAITH**
## **REFERENCE AND ADMINISTRATIVE DETAILS**
|Charity Registration No:|247767|
|---|---|
|Address:|c/o Mr Andrew Carter|
||28 Larksway|
||Bishop's Stortford|
||CM23 4DG|
|Governing Instrument:|Constitution dated 11thMay, 2004 as amended 2011|
|Objects:|To promote and maintain Catholic teaching and practice within the|
||Church of England. This is achieved primarily through the exercise of|
||patronage of 96 Benefices and by making modest grants in aid of the|
||building or restoration of churches within its patronage.|
|Investment Powers:|There are wide powers of investment|
|Charity Trustees:|_Lay Members of Council_|
||Andrew Carter (Treasurer)|
||Vicky Cole (appointed 9 July 2021)|
||Julia Elton DL|
||Christopher Gabriel|
||Anne Gray (appointed 9 July 2021)|
||Tom Middleton|
||Edward Dobson (appointed 16 September 2021)|
||David Morgan (to 26 November 2021)|
||Dr Colin Podmore MBE (President). (elected 19 February 2021)|
||_Clerical Members of Council_|
||The Revd Philip Corbett (General Secretary and Membership|
||Secretary)|
||The Revd Canon Robert Fayers|
||The Revd Canon Geoffrey Harbord (appointed 9 July 2021)|
||The Revd André Hart|
||The Revd Owen Higgs|
||The Revd Canon Philip Ursell (Chairman of the Patronage Board)|
||The Revd Canon Robin Ward (to 16 September 2021)|
|Bankers:|Barclays Bank PLC|
||Bedford Square Business Centre|
||27 Soho Square|
||London|
||W1A 4WA|
|Investment Advisers:|Charles Stanley and Co Ltd|
||55 Bishopsgate|
||London|
||EC2N 3AS|
|Independent Examiner:|Olayinka ACA DChA|
||Longmeade Consult Ltd|
||Regus House|
||Victory Way|
||Admiral’s Park|
||Dartford|
||DA2 6QD|
1
**THE SOCIETY FOR THE MAINTENANCE OF THE FAITH**
**TRUSTEES’ REPORT**
## **FOR THE YEAR TO 31 DECEMBER 2021**
The trustees have pleasure in presenting their report for the year to 31 December 2021.
## **STRUCTURE, GOVERNANCE AND MANAGEMENT**
The government of the Society is vested in a council with the following membership:
- the President of the Society (ex officio).
- one trustee chosen by and from the trustees in whom the Society’s property is vested (see below).
- nine members elected from the members of the Society (for a three-year term).
- the General Secretary, the Treasurer and the Membership Secretary, who are elected for a term of three years at the Annual General Meeting.
- up to three members co-opted by the Council (for terms of up to three years)
Of the members, no fewer than three shall be lay persons and no fewer than three shall be clerics.
All property of the Society is vested in five (custodian) trustees, one of whom is chosen by the trustees to serve on the Council for a term of three years. The President of the Society is an ex officio trustee.
The Officers of the Society comprise:
- The President - a lay person elected by the members in Annual General Meeting, serving for a term of five years with scope for further terms of three years
- Up to five Vice-Presidents elected by the council from the membership
- The General Secretary
- The Treasurer
- The Membership Secretary.
Those wishing to become members of the Society must apply in a prescribed form. To be eligible they must be communicant members of the Church of England, or of a Church in communion with her, and be in full agreement with the objects of the Society.
## **PUBLIC BENEFIT**
The trustees have referred to the guidance contained in the Charity Commission’s general guidance on Public Benefit when reviewing the charity’s aims and objectives, and in planning future activities. In particular they consider how the Society’s activities help to contribute to the aims and objectives they have set.
## **REVIEW OF THE YEAR**
The Society continues to work towards its objects as shown on page 1. Following the relaxation of restrictions relating to COVID-19, members of the Council have been able to increase the number of visits to Society livings, although these are still not at the level as in a normal year. The Council has been able to continue to be active in exercising its rights of patronage through the use of virtual communications and to attend more in-person engagements than in 2020.
The Council continues to be active in seeking to exercise its rights of patronage, and where the right of presentation has been suspended Officers have co-operated with the diocesan authorities in the appointment of priests-in-charge. Officers have worked with diocesan authorities and with the Church Commissioners on schemes for pastoral reorganisation as required.
Grants paid to churches amounted to £20,333 (2020: £2,332). In 2019, an Evelyn Light Bursary of £500 was paid to one individual but no such payment was made in 2020 or 2021. Details of bursaries and grants paid are set out in the Notes to the Accounts. Serving clergy who wish to be considered for the Evelyn Light Bursary in order to study at Pusey House may in the first instance apply to the Principal, Pusey House, Oxford OX1 3LZ.
During the year the Society’s website was replaced with a new website. Further information about the Society may be obtained from the website www.smftrust.org.uk
2
**THE SOCIETY FOR THE MAINTENANCE OF THE FAITH**
**TRUSTEES’ REPORT**
## **FOR THE YEAR TO 31 DECEMBER 2021**
## **FINANCIAL REVIEW**
The accounts show an excess of payments over receipts of £4,761 (2020: £15,246 excess of receipts over payments), consisting of an excess of payments over receipts of £5,352 in General Funds and an excess of receipts over payments £591 in Designated Funds. The overall value of the Society’s portfolios rose favourably in the year, from £883,142 at 31 December 2020 to £969,692 at 31 December 2021. The total return on the portfolios (income plus/minus capital growth/loss) was approximately 12.6% (2020: -2.25%), which is in line with the averages quoted for the charity sector for the year and is thus considered to be satisfactory.
During the year the Society paid grants and bursaries from the General Fund of £20,333 (2020: £2,332). Details are set out in Note 4 to the Accounts
The Society continues to manage its assets conservatively.
## **RESERVES POLICY**
The Council aims to maintain the charity’s reserves at a level which generates sufficient income to meet the running costs of the Society. Any surplus income may be put to grant-making and occasional projects of the Society. With the uncertain outlook for investment returns and the fall in the capital value of the Society’s investments in prior years, the Council is of the view that the level of overall reserves, or net assets, at the end of 2021 of approximately £1.15m is an appropriate level of funding for its running costs. Expenditure and reserves levels will continue to be kept under review.
Designated Funds are monies which the Council would look to apply to the designated parish or area of activity.
## **RISKS**
The Council continues to monitor the major risks to which the Society is exposed and is of the opinion that appropriate steps have been taken to mitigate these risks as far as possible.
3
THE SOCIETY FOR THE MAINTENANCE OF THE FAITH
TRUSTEES, REPORT
FOR THE YEAR TO 31 DECEMBER 2021
STATEMENT OF TRUSTEES, RESPONSIBILITIES
The trustees of the Charity are required to prepare for financial year accounts which comply with the Charities
{Aecounts and Reports) Regulations and the charity's constituiion.
The truslees are responsible for keeping pmper accounting records which disclose with reasonable ac¢urncy at any time
the financial position of the Charity and io enable them to ensure that the f]nantial statement5 COTnply with ststutory
requirements and with the Constitution ded I l May 2004 as amended in 2011. They are also resw)n5ible for safeguarding
the assets of the Charity and hence for taking reasonable steps for the prevention and detection of fraud and other
irregularities.
Approved by the TnleeS on 5 May 2022 and signed as authorised on their behalf by..
Dr Colin Podmore MBE (President)
**INDEPENDENT EXAMINERS’ REPORT**
## **TO THE TRUSTEES OF THE SOCIETY FOR THE MAINTENANCE OF THE FAITH**
I report to the trustees on my examination of the accounts of the Society for the Maintenance of the Faith (the Society) for the year ended 31 December 2021.
## **RESPONSIBILITIES AND BASIS OF THE REPORT**
As the charity trustees of the Society you are responsible for the preparation of the accounts in accordance with the Charities Act 2011 (“the 2011 Act”).
I report in respect of my examination of the Society’s accounts carried out under section 145 of the 2011 Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
## **INDEPENDENT EXAMINER’S STATEMENT**
I have completed my examination. I confirm that **no** material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
1. accounting records were not kept in respect of the Society as required by section 130 of the 2011 Act; or
2. the accounts do not accord with those records.
I have **no** concerns and come across **no** other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
Olayinka Tomori ACA DChA
Longmeade Consult Ltd Regus House Victory Way Admiral’s Park Dartford DA2 6QD
……….. May 2022
5
## **THE SOCIETY FOR THE MAINTENANCE OF THE FAITH**
## **RECEIPTS AND PAYMENTS ACCOUNT**
## **FOR THE YEAR ENDED 31 DECEMBER 2021**
|**2021**
**General**
**Designated**
**Total**
**£**
**£**
**£**
**RECEIPTS**
Investment income (gross)
22,836
1,563
24,399
Deposit interest
73
16
89
Subscriptions and donations
515
515
Legacies
-
-
-
-------------------
------------------
------------------
**Total ordinary receipts**
23,424
1,579
25,003
Sale of investments
35,847
-
35,847
-------------------
-------------------
-------------------
**Total receipts**
**59,271**
**1,579**
**60,850**
-------------------
-------------------
-------------------
**PAYMENTS**
**Cost of generating funds**
Investment management fees
6,373
-
6,373
-------------------
-------------------
-------------------
**Direct Charitable Expenditure**
Administration expenses
(including AGM and website)
2,344
-
2,344
General Secretary’s honorarium
4,500
-
4,500
Grants and bursaries paid
(Note 4)
20,333
-
20,333
Other
156
-
156
-------------------
-------------------
-------------------
27,333
-
27,333
-------------------
-------------------
-------------------
**Other Expenditure**
Travel and other admin costs
1,289
-
1,289
Professional fees
1,650
-
1,650
-------------------
-------------------
-------------------
2,939
-
2,939
-------------------
-------------------
-------------------
**Total ordinary payments**
**36,645**
**-**
**36,645**
Purchase of investments
28,953
13
28,966
-------------------
-------------------
-------------------
**Total payments**
**65,598**
**13**
**65,611**
-------------------
-------------------
-------------------
**EXCESS OF RECEIPTS OVER**
**PAYMENTS/(PAYMENTS**
**OVER RECEIPTS)**
**(6,327)**
**1,566**
**(4,761)**
**Transfers**
General & Designated Funds
975
(975)
-
-------------------
-------------------
-------------------
(5,352)
591
(4,761)
Cash at bank at start of year
145,933
36,400
182,333
-------------------
-------------------
-------------------
**Cash at bank at end of year**
**£140,581**
**£36,991**
**£177,572**
=========
=========
=========|**2020**
**General**
**Designated**
**Total**
**£**
**£**
**£**
19,969
1,641
21,610
409
149
558
395
-
395
-
-
-
-------------------
------------------
------------------
20,773
1,790
22,563
91,917
-
91,917
-------------------
-------------------
-------------------
**112,690**
**1,790**
**114,480**
-------------------
-------------------
-------------------
6,015
-
6,015
-------------------
-------------------
-------------------
145
-
145
2,000
-
2,000
2,332
-
2,332
120
-
120
-------------------
-------------------
-------------------
4,597
-
4,597
-------------------
-------------------
-------------------
762
-
762
1,650
-
1,650
-------------------
-------------------
-------------------
2,412
-
2,412
-------------------
-------------------
-------------------
**13,024**
**-**
**13,024**
86,086
124
86,210
-------------------
-------------------
-------------------
**99,110**
**124**
**99,234**
-------------------
-------------------
-------------------
**13,580**
**1,666**
**15,246**
-
-
-
-------------------
-------------------
-------------------
**13,580**
**1,666**
**15,246**
132,353
34,734
167,087
-------------------
-------------------
-------------------
**£145,933**
**£36,400**
**£182,333**
=========
=========
=========|
|---|---|
6
THE SOCJETY FOR THE MAINTENANCE OF THE FAITH
STATEMENT OF ASSETS AND LIABILITIES
FOR THE YEAR ENDED 31 DECEMBER 2021
2021
2020
Notes
Net assets of the General Fund
FIXED ASSETS
Investments at market value
Charles Stanley tM)rtfolio
CCLA Income Shares
{a)
(b)
827,671
57,117
749.695
49,969
884,788
799,664
CURREPn ASSETS
Dep)sits
Cash at bank
89.352
56.229
81.897
64,036
145,581
145.933
CREDITORS: Amounts falling due
within one year
(1,8(Kl)
(2.056)
143,781
143,877
1,028,509
943,541
Net assets of designated funds
FIXED ASSETS
Investments at market value
83.478
CURRENT ASSETS
Deposits
36.991
36,400
121,895
119,878
TOTAL NET ASSETS
£1.150,464
£1,063.419
Represented by unrestricted fimds:
General Fund
Accumulated balance at start of year
change in investments (Note 2)
Capital transfers from designated funds
Excess of receipts oY¢r payments
Decrease in creditors
943.541
85,124
5,000
{5.352)
256
933.483
13,5221
13,580
Balance at end of year
1.028.569
943,541
Designated funds
Balances ai end of year
Capital accounts
Accumulated incorne
84,904
36.991
83.478
36,400
121.895
119,878
£1,150,464
£1,063,419
Approved by the Trustees on 5 May 2022 and signed on their behalf by
Dr Colin Pothnore MBE (President)
**THE SOCIETY FOR THE MAINTENANCE OF THE FAITH**
## **NOTES ON THE ACCOUNTS**
## **TO 31 DECEMBER 2021**
## **1. ACCOUNTING POLICIES**
The accounts have been prepared in accordance with the Charities (Accounts and Reports) Regulations and the Constitution dated 11 May 2004, as amended in 2011. These permit the preparation of a Receipts and Payments account. The accounts are prepared on the historical cost basis of accounting, as modified by the revaluation of investments.
Direct charitable expenditure consists of all expenditure directly relating to the objects of the Society.
## **2. INVESTMENTS OF THE GENERAL FUND**
|**VESTMENTS OF THE GENERAL FUND**|||||
|---|---|---|---|---|
||**2021**||**2020**||
||**£**|**£**|**£**|**£**|
|**(a) General Portfolio**|||||
|Market value at 1stJanuary 2021||749,695||756,433|
|Purchases|28,953||86,086||
|Sales|(35,847)||(91,917)||
||---------------||---------------||
||(6,894)||(5,831)||
|Realised and unrealised gains /(losses)|84,870||(907)||
||----------------||----------------||
|||77,976||(6,738)|
|||----------------||----------------|
|Market value at 31 December 2021||£827,671||£749,695|
|||=========||=========|
|**Analysis of investment holdings**|**Cost**|**Market**|||
|||**Value**|||
|Fixed interest stocks|115,668|118,536|||
||------------------|------------------|||
|Equities|||||
|UK Shares|236,439|363,002|||
|North America|39,385|103,905|||
|Europe|23,718|38,156|||
|Asia Pacific|32,507|64,509|||
|Global|20,188|54,055|||
|Property|25,312|22,152|||
|Alternatives|28,157|33,176|||
||----------------|------------------|||
|Total equities|405,706|678,955|||
||-----------------|------------------|||
|Cash|30,180|30,180|||
||------------------|------------------|||
|At 31 December 2021|£551,554|£827,671|||
||=========|==========|||
|**(b) Central Board of Finance Income Shares**|**Shares**|**Cost**|**Market Value**||
||**No.**|**£**|**£**||
|Opening|2,382|1,809|49,969||
|Change in value in year|-|-|7,148||
||------------------|------------------|------------------||
|Closing|2,382|£1,809|£57,117||
||=========|=========|=========||
8
**THE SOCIETY FOR THE MAINTENANCE OF THE FAITH**
## **NOTES ON THE ACCOUNTS (continued)**
## **TO 31 DECEMBER 2021**
## **3. INVESTMENTS OF THE DESIGNATED FUNDS FOR SPECIAL OBJECTS**
|||**2021**|**2020**|
|---|---|---|---|
|||**£**|**£**|
|Market value at 1 January 2021||83,478|79,869|
|Purchases||13|124|
|Sales (Transfer to General funds)||(5,000)|-|
|Realised and Unrealised (losses)/gains||6,413|3,485|
|||----------------------|----------------------|
|Market value at 31 December 2021||£84,904|£83,478|
|||==========|==========|
||||**Market**|
||**Holding**|**Cost**|**Value**|
|||**£**|**£**|
|Central Board of Finance of the Church of England||||
|Investment Fund Shares|2,587|12,829|60,582|
|Central Board of Finance of the Church of England||||
|- Deposit Fund|24,322|24,322|24,322|
|||---------------------|--------------------|
|At 31 December 2021||£37,151|£84,904|
|||=========|=========|
|**RANTS AND BURSARIES PAID**||||
|||**2021**|**2020**|
|||**£**|**£**|
|All Saints, Notting Hill||-|2,332|
|Westbury Upon Trym||5,000|-|
|All Saints Wrington||1,000|-|
|Mendlesham||5,000|-|
|Clevedon||9,333|-|
|||-----------------|-----------------|
|||£20,333|£2,332|
|||=========|========|
## **4. GRANTS AND BURSARIES PAID**
## **5. RELATED PARTY TRANSACTIONS**
The General Secretary (Philip Corbett) received an honorarium of £4,500 (2020: £2,000 honorarium to John Hanks – General Secretary to 10 November 2020). This honorarium was paid in accordance with Clause 8(3) of the Society’s Constitution.
The Vicar of Westbury Upon Trym (André Hart) is a Council Member.
A member of the PCC of St Mary the Virgin, Mendlesham (Anne Gray) became a Council Member after the Council approved the grant of £5,000 to the Parish of St Mary the Virgin, Mendlesham.
In the prior year, the Priest-in-Charge of All Saints, Notting Hill (Philip Corbett) became a Council Member after the Council approved a grant of £2,332 to the Parish of All Saints, Notting Hill.
No trustee received any remuneration.
Seven (2020: Five) trustees received reimbursement of expenses amounting to £1,289 (2020: £762).
9
**THE SOCIETY FOR THE MAINTENANCE OF THE FAITH NOTES ON THE ACCOUNTS (continued)**
## **TO 31 DECEMBER 2021**
## **6. TAXATION**
The Society is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.
Irrecoverable VAT is included with the category of expense to which it relates.
## **7. DESIGNATED FUNDS**
Funds donated by parishes have been earmarked for their benefit by the trustees. These funds are set out below. During the year the balances on the Income and expenditure funds were put in individual deposit accounts with the Central Board of Finance of the Church of England Deposit Fund.
## **SCHEDULE OF DESIGNATED FUNDS**
|||**INCOME**|||||**CAPITAL**||
|---|---|---|---|---|---|---|---|---|
||**Un-**|||**Sale/**|**Un-**||||
||**expended**|**Investment**|**Transfers**|**(Purchase)**|**expended**||||
||**Income**|**income for**||**of**|**Income**||||
|||**the year**||**investments**|||||
||**at31**||||**at31**|**No. of**|**Cost**|**Market**|
||**December**||||**December**|**Shares**||**Value**|
||**2020**||||**2021**||||
||**£**|**£**|**£**|**£**|**£**||**£**|**£**|
|**FUND**|||||||||
|Clevedon|||||||||
|Benefices|966|9|(975)|-|-|-|
-|-|
|Wendron|8,494|346|-|-|8,840|574|
392|13,442|
|Strelley|5,100|232|-|-|5,332|386|
263|9,039|
|Mendlesham|2,908|29|-|-|2,937|47|
174|1,101|
|St Albans,|||||||||
|Copnor|9,466|475|-|-|9,941|790|
6,000|18,500|
|All Saints,|||||||||
|Portsea|9,466|475|-|-|9,941|790|
6,000|18,500|
||-------------------|-------------------|------------------|------------------|-------------------|-------------|
------------------|------------------|
||36,400|1,566|(975)|-|36,991|2,587|
12,829|60,582|
|||||||Church of|England Deposit|Fund|
|Mendlesham|-|13|-|(13)|-|24,322|
24,322|24,322|
||-------------------|-------------------|------------------|-------------------|-------------------||------------------|------------------|
|2021|£36,400|£1,579|£(975)|£(13)|£36,991||£37,151|£84,904|
||========|=========|========|=========|=========||========|========|
|2020|£34,734|£1,790|£-|£(124)|£36,400||£42,216|£83,478|
||========|=========|========|=========|=========||=========|========|
Note 3 provides details of movements in capital during the year.
10