2020-12-31-accounts

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

Company Number: 00101685 Charity Number: 248796

THE UNITED REFORMED CHURCH (EASTERN PROVINCE) TRUST

REPORT AND FINANCIAL STATEMENTS

YEAR ENDED 31 DECEMBER 2020

MHA MACINTYRE HUDSON Chartered Accountants and Statutory Auditors Rutland House 148 Edmund Street Birmingham B3 2FD

THE UNITED REFORMED CHURCH (EASTERN PROVINCE) TRUST

	Page
Annual Report	1 - 10
Independent Auditor’s Report	11 - 13
Statement of Financial Activities	14
Balance Sheet	15
Statement of Cash Flows	16
Notes to the Financial Statements	17 - 39

THE UNITED REFORMED CHURCH (EASTERN PROVINCE) TRUST

Annual Report

Year Ended 31 December 2020

Reference and Administrative Information

Registered Office

The Eastern Synod Office The United Reformed Church 36 Duxford Road Whittlesford Cambridge CB22 4ND

Directors and Trustees

Revd P R Whittle (Resigned 31 December 2020) Revd Prof D Thompson Mr K Hounsome Mr A East Mr C Patten Mr G Heathcote Revd Dr J Tollington

Bankers

Barclays Bank Plc 5-7 Red Lion Street Norwich NR1 3QH

Legal Advisors

Veale Wasbrough Vizards Second Floor, 3 Brindley Place Birmingham B1 2JB

Auditors

MHA MacIntyre Hudson Rutland House 148 Edmund Street Birmingham B3 2FD

Investment Manager

CCLA Investment Managers Limited Epworth Investment Managers Limited

Synod Officers

Moderator – Revd P R Whittle (Resigned 31 December 2020) Synod Clerk – Mr K Hounsome Synod Treasurer – Mr G Heathcote Company Secretary and Finance Officer – Mr D Smith Resources Officer – Mrs P Davies-Brown

THE UNITED REFORMED CHURCH (EASTERN PROVINCE) TRUST

Annual Report

Year Ended 31 December 2020

The Trustees present their Annual Report and the audited financial statements of the charity for the year ended 31 December 2020. The Trustees have adopted the provisions of Statement of Recommended Practice (SORP) “Accounting and Reporting by Charities” (FRS102) in preparing the Annual Report and financial statements of the charity.

Since the charity qualifies as a small company under Section 383, the strategic report required of medium and large companies under the Companies Act 2006 (Strategic Report and Director’s Report) Regulations 2013 is not required.

The Trustees

The Trustees of the charity are also company directors for the purposes of company law.

All Trustees give their time voluntarily and receive no benefits from the charity apart from those reimbursed expenses set out in note 6.

The Trustees serving during the year and to the date of this report were as follows:-

Revd P R Whittle (Resigned 31 December 2020) Revd Prof D Thompson Mr K Hounsome Mr A East Mr C Patten Mr G Heathcote Revd Dr J Tollington

Aims and Objectives

The charitable company’s purpose as set out in the objects contained in the company’s Memorandum and Articles of Association is the advancement of the Christian religion especially by the means of, and in accordance with, the principles of the United Reformed Church as set out for the time being in ‘The Manual’.

The aims of the charity are to support local churches in their outreach and mission and to share the vision of the URC’s General Assembly with the local churches.

The United Reformed Church (Eastern Province) Trust has two distinct roles. The first is to act as the corporate Trustee of local churches, manses and other local church land. The second is to act as the holding Trustee of the collective financial assets of the Eastern Synod.

In relation to the first role, the Trust acts according to the United Reformed Church Acts 1972, 1981 and 2000: particularly the 1981 Act. Local URC churches operating in the Eastern Synod area are separate and independent charities. There is no common control or unity of administration with any of these bodies and they are not deemed to be connected charities within the understanding of the Charities SORP (FRS 102). None of the financial assets or liabilities of these bodies are incorporated in the Trust’s financial statements as the Trust is not the beneficial owner and there is neither parent nor subsidiary relationships.

In relation to the second role, the Trust’s responsibility is to exercise ultimate oversight over the finances of the Synod (including its budget and accounts), as set out below. The Trust is also responsible for employment of most remunerated Synod staff.

Achieving delivery of the Trust’s aims and public benefit

The strategy for achieving the Trust’s aims and objectives is to provide pastoral, educational and mission, technical and financial support. All these forms of support are designed to promote and share the Christian faith and, in particular, the principles of the URC in each area where a local congregation operates. The Trustees review the aims, objectives and proposed future activities on a regular basis. The Trustees follow the general guidance issued by the Charity Commission on public benefit when doing so and the following sections of this report describe how the Trustees have carried out the purposes of the Trust for the public benefit.

THE UNITED REFORMED CHURCH (EASTERN PROVINCE) TRUST

Annual Report

Year Ended 31 December 2020

It is important to note that the Trust’s functions are generally exercised through the Eastern Synod of the United Reformed Church and its committees (see section headed “Structure, Governance and Management”).

Pastoral Support

The Pastoral Committee works with and through the Synod Moderator and others to provide spiritual, pastoral and strategic leadership, care and challenge to local churches and their ministers. They have a particular role in encouraging conversations about pastorates’ needs, ensuring effective but sympathetic deployment of ministerial resources as well as overseeing churches during ministerial vacancies. They also monitor the progress of those applying for, and undertaking, various types of ministerial training and work to develop ecumenical relations in the area covered by the Synod as well as encouraging local churches to “think ecumenically” when planning all their initiatives.

Educational and Mission Support

The Mission Committee works with and through the Moderator, Mission and Training Officer and Children and Youth Development Officer to provide or encourage training and development for ordained and lay people; organise and support activities for, and work with, children and young people; and encourage mission and outreach activities to be undertaken primarily by local churches in their own towns or villages. The Synod has established a Pioneer Fund (funded from property sales) for the purpose of supporting major new mission activities and in this connection is currently supporting an ecumenical Pioneer Ministry project on a new housing estate at St. Neot’s. Through the Faith in Action group of the Mission Committee, the Synod and local churches are made aware of need and injustice locally, nationally and internationally and challenged to respond in ways which make a difference.

Technical Support

Synod officials are a resource available to help local churches understand and keep up to date with their obligations as charities, employers, providers of services to the public and occupiers of buildings. Where necessary, Trustees and Synod officials also help local churches through the process of considering the acquisition, modification or disposal of premises and issues of trust, property and charity law. The Listed Buildings Advisory Committee (as constituted by the Ecclesiastical Exemption (Listed Buildings and Conservation Areas) (England) Order 2010) offers independent advice to the Synod Property Committee, together with assisting local churches occupying “Listed” buildings through the complexities of the legal processes governing these types of buildings, including offering advice on their care and maintenance.

Financial Support

A range of grants (and, more rarely, loans – constituting much of Programme Related Investments) is made available to local churches and ministers to assist with children and young people engagement, mission and outreach, maintenance and improvement of properties to enhance interaction with their communities and ministerial and lay training and development. In most cases this support is provided through the Resources/Property Committee, which meets four times a year and oversees financial and property-related matters for the Synod. The delegated powers of the Resources Committee and its interaction with the Trust and Trustees are set out in the Synod Financial Policy which is revised periodically by Synod. The Finance Policy sets out the charity’s investment policy and ethical constraints under which it operates. For further details see the section headed ‘Investment Policy’ (below).

Churches are encouraged to retain and invest capital whenever possible and to fund new building works, redevelopments, maintenance works and pastoral assistance from their investment income. Where there are insufficient funds, grants or loans may be made available to Churches and Synod Committees, in the case of loans for periods normally not exceeding five years.

THE UNITED REFORMED CHURCH (EASTERN PROVINCE) TRUST

Annual Report

Year Ended 31 December 2020

Achievements and Performance

Inevitably, the Synod’s work has been significantly affected by the Covid pandemic. The start of the initial lockdown coincided with the March Synod meeting that was therefore cancelled. The October meeting did take place albeit by zoom, and our Committees have also become accustomed to meeting in this way.

For the same reason, the Synod office was closed for most of the year with staff working from home. It has been good how well staff have adapted to this new way of working.

Mission Committee

The Committee continues to oversee activities arising from Walking the Way
The Faith in Action Group continues to present matters of concern to Synod and gives links to websites that provide further information on issues such as social justice, racial justice, the environment and rural matters
Through the Synod’s Mission and Training Officer (Lindsey Brown) mission (including worship) resources have been provided to churches and a range of training and related on-line programmes have been provided to Elders and others
Through the Synod’s Children and Youth Development Officer (Nicola Grieves) training, advice and consultancy has been provided (again on-line for most of the year) to those working with children and young people, as well as advice and training on employment issues and safeguarding. Nicola also organises or helps at events for youngsters, both Synod-wide and in local churches.
Since the start of the first lockdown Nicola and Lindsey (together with the Moderator until he took up a similar role with the Synod of Scotland in January 2021) have produced a weekly update for churches that contains news, material for worship and the younger members of our church family and details of training and other events
The Loves Farm initiative (near St Neots) has been recognised as a Mission Project
In October, the Synod adopted an Environment Policy, and a Working Group has been set up to work through the actions that follow from it

Pastoral Committee

This Committee’s work is largely of an ongoing nature, in particular supporting the Moderator in considering ministerial vacancies and the challenges of deployment
The Committee has oversight of the LMMR process, receiving reports of mission reviews carried out in local churches
It also oversees the process for authorising lay persons to preside at the Sacraments
The Committee also links with the work of the five Area Partnerships and one United Area
The Committee has noted, with sadness, the closure our churches at David Livingstone (Harlow), Great Baddow and Princes Street (Norwich).

Resources Committee

The Committee continues to provide a range of property grants as well as grants for children’s and youth work
The Committee continues to oversee the work of the Ministry and Mission Advocates in their work administering the Fair Share scheme through which local churches contribute to the provision of ministry throughout the denomination. In this respect, the Committee is grateful to local churches for generally how well they have done in maintaining their commitment at what has been a most difficult time financially for them
Two changes have been made to the Synod’s Finance Policy pending a full review in 2021
The Committee is aware that the reserves held by the Synod/Trust are higher than in most other Synods. Notwithstanding the need to set aside a substantial sum for future pension contributions within the denomination the Committee is now looking at how funds can be released to meet the mission work of local churches

THE UNITED REFORMED CHURCH (EASTERN PROVINCE) TRUST

Annual Report

Year Ended 31 December 2020

Executive Committee

The Committee’s work is mainly concerned with organising Synod meetings, ensuring vacancies on Synod committees are filled, coordinating the work of the committees and overseeing staffing matters
On the Committee’s initiative and following consultation with local churches, the Synod have engaged HR consultants to provide employment advice to them, at no cost to the churches

More generally, the Synod’s Committee, including the Executive Committee, have worked though the responses to the Synod Review carried out in early 2019.

Financial Review

Financial Statements

The financial statements, including the notes, have been prepared in compliance with the Statement of Recommended Practice (SORP) “Accounting and Reporting by Charities” (FRS 102). The analysis of income and expenditure reflects the classification of activities, together with costs relating to administration. The Synod and Trust Company do not sell goods or services, nor are there any other trading activities.

A financial review document is made available to all members of Synod, and local churches if requested. This document highlights the main features of these financial statements. The review includes a comparison between the budget and the final operating income resources and expenditure.

Statement of Financial Activities

The Statement of Financial Activities is shown on page 14, with a more detailed analysis of income and expenditure on pages 21 to 24.

The total operating income for the year was £719,192 (2019: £891,445), the majority of which is investment income.

This year the church property grants totalled £(20,662) (2019: £282,464). There was very little activity in property grants this year due to the closure of churches because of the pandemic.

Receipts from church and other property sales totalled £1,503,132 (2019: £787,005) and it is important that these capital receipts continue to be invested wisely.

Balance Sheet

The above result led to an increase of £1.527m (2019: £2.406m) which has resulted in a combined fund balance of £21.938m (2019: £20.411m) at the year-end. An analysis of the movement of funds can be found in note 9.

Programme Related Investments total £818,144 (2019: £944,456) comprising 4 outstanding loans and 8 property investments (2019: 4 loans and 8 property investments). These investments represent funds invested by Synod to assist local churches and retired ministers to purchase or update their properties.

Fundraising Sources

Synod meeting annually authorises a levy to be raised for Synod administration purposes from local churches together with their contributions to the denominational Ministry and Mission Fund. This levy will reduce by 20% each year over the next five years. The other main sources of regular income are investment and rental income. In addition, in some years, substantial sums become available to the Trust as a result of church closures. No fundraising activities are carried out at Synod or Trust level.

THE UNITED REFORMED CHURCH (EASTERN PROVINCE) TRUST

Annual Report

Year Ended 31 December 2020

Investment Policy

The policy seeks to achieve as high an income as possible, subject to protecting the capital value of the funds against inflation. The investments include sharing in some churches’ property developments but are otherwise a mixture of fixed interest and equity marketable securities. The Synod seeks to ensure that none of its investments can be seen to support practices which are against the conscience of Christians following the Ethical Investment Guidelines approved by the URC General Assembly from time to time. These Common Investment Funds are governed by Charity Commission Schemes.

A number of local churches have asked the Synod to hold, and invest, certain funds on their behalf. Such funds are not Synod funds and are not included in the Trust financial statements.

Reserves Policy

The Trust holds funds under a number of different terms. Funds which are restricted may only be used as directed by the funder at the time they were granted to the Trust. Details of the specific restrictions of those individual funds are disclosed in note 18 to the financial statements.

Other funds are unrestricted and can be used at the discretion of the Trustees in furtherance of the Trust’s objects. It is the policy of the Trustees to designate certain funds for particular purposes as agreed from time to time and details of the purpose and use of those designated funds can be found in note 18 to the financial statements.

The Synod seeks to recognise the needs of both the present generation and future generations within the Church by retaining those one-off capital receipts to which it from time to time becomes entitled under the provision of the URC Acts. It is the present policy that, normally, only the income on these reserves is expended upon charitable purposes but an exception is made in relation to money going into the Pioneer Fund or to support mission projects, Eco projects, and a project to upgrade preaching/communication facilities in churches.

The remaining general unrestricted funds are required to cover the support costs and grants awarded. The Synod Finance Policy specifies that, typically, sufficient cash should be held on short or medium term deposits to cover at least one full year’s anticipated revenue expenditure and also allow for the capital purchase of a manse or similar building – though the exercise of discretion is permitted in deciding how much cash it would be advisable to hold at any particular time.

At the year-end general unrestricted funds amounted to £1,365,320 (2019: £1,461,258), excluding designated amounts. The Trustees are satisfied this is sufficient to meet day to day objectives.

Risk Management

The Trustees are responsible for the management of the risks faced by the charity. Risks are identified, assessed and controls established throughout the year. A formal review of the charity’s risks was undertaken in 2020, and reported to the Trust Directors. The main changes are the effect of COVID 19, and threat of ongoing scams. The risk of a very large shortfall on pensions continues.

The most serious risk facing the charity would be the Synod failing to achieve its strategic and charitable objectives, either through resources being put into programmes which do not meet those objectives or through failure of Trustees and other Committees to consider the charity’s objectives when making decisions. To manage and mitigate this risk, the Trustees consider the ‘Aims and Objectives’ section of their annual report each year to ensure this remains appropriate and, in so doing, are reminded of the objectives which they must constantly keep in mind. Also, having Convenors of Committees give an account of their Committee’s decisions to the Synod Executive, on which three Trust Directors sit, ensures effective oversight of their day-to-day activity and decision making.

THE UNITED REFORMED CHURCH (EASTERN PROVINCE) TRUST

Annual Report

Year Ended 31 December 2020

Another principal risk is business interruption: either through absent personnel or a disaster causing restricted or no access to the Synod office. A Business Continuity Plan was approved by Synod Trust Directors in the spring of 2013 and reviewed and updated in November 2015.

Among the key risk controls used by the charity are:

a written financial policy subject to periodic review (an updated version was adopted by the March 2015 Synod meeting and slightly amended in October 2020);
clear financial authorisation and approval levels (reviewed and tightened in 2011);
detailed summary accounts produced for scrutiny by Trust Directors and Resources Committee at every meeting during the year;
financial statements presented at each Synod meeting; and
Synod officers and others having been vetted through the DBS service, where appropriate and Synod operating a ‘Safeguarding’ policy.

Through the risk management process established for the charity, the Trustees are satisfied that the major risks identified have been adequately mitigated where necessary. It is recognised that systems can only provide reasonable but not absolute assurance that major risks have been adequately managed.

Future Plans

Plans for 2021 are inevitably shaped by the uncertainty of when and how we will emerge permanently from lockdown and how our churches will then look. Much of our work will involve responding to that new environment, not least in developing our use of technology both within the Synod and our local churches.

Whilst not as such a Plan, we await the arrival of a new Moderator later in anticipation that we may be led in new directions.

The Synod will, though, continue to strengthen missional discipleship through the “Walking the Way” initiative and will provide a range of resources for local churches to grow more committed in their faith and more able to reach out to help others discover their need for God.

The Mission Committee will continue to have a prominent role to play in enthusing congregations and facilitating the provision of resources. Efforts to reach out to children and young people within the Synod will be pursued and we hope to make progress in building greater awareness of, and commitment to, the World Church as well as promoting justice, peace and the integrity of creation. Particular issues that the Committee will be considering are how best to support churches in their mission work and overseeing the work required to become an Eco Synod.

The Pastoral Committee will continue to support the pastoral work of the Moderator as appropriate, and will oversee the process of declaring and filling vacancies, identifying and training candidates for ministry (both ordained and lay) and for promoting health, healing and spirituality.

The Resources Committee will continue to act in conjunction with and on behalf of the Synod Trustees in administering its various grant awarding processes and safeguarding the Synod’s finances and investments. The Trust is currently in discussions with the United Reformed Church regarding a solution to provide financial support to the Ministers Pension Fund which is in deficit. Due to the structure of the national church and ministerial appointments there is no legal obligation for the Trust but all of the regional bodies have been approached and there is wide acceptance that there is a moral obligation at the regional level and that such support does fall within the charitable purposes of the Trust.

Whilst discussions are still ongoing and there is no binding agreement, the Trust has made an in principle offer of around £3.8m which would be payable over a period of 5 years commencing in 2021. The Trust continues to monitor and review the position to ensure that any such final commitment is affordable and does not put the financial stability of the Trust at risk.

THE UNITED REFORMED CHURCH (EASTERN PROVINCE) TRUST

Annual Report

Year Ended 31 December 2020

Structure, Governance and Management

The United Reformed Church (Eastern Province) Trust (“the Trust”) is a company limited by guarantee formed on 20 March 2007 and is a registered charity, number 248796. It is governed by its Memorandum and Articles of Association as revised in 2008. All of the financial assets and liabilities of the Eastern Synod of the United Reformed Church (“Synod”) are shown in the Trust’s Financial Statements.

However, while the Trust holds the assets and liabilities of Synod, it is the Synod which is the decision making body, except in relation to matters relating exclusively to the business of the Trust for which the Trust Directors are responsible. The Trust is corporate Trustee for most land and buildings utilised by local URC Churches.

The Finance & Trust Officer and the Resources Officer attend Trustee meetings but are not themselves Trustees.

Appointment of New Trustees

The Trustees nominate members to serve as Trustees of the Trust and Synod meeting ratifies the appointments.

There is an informal programme for the induction of Trustees.

Training is also organised for the Trustees (normally annually) to ensure they are aware of current practice and issues of charity law etc.

Constitution of the Synod

Eastern Synod is one of 13 Synods of the United Reformed Church (“URC”) within the United Kingdom. It is constituted in accordance with the Scheme of Union and the United Reformed Church Acts of 1972, 1981 and 2000 (see www.urc.org.uk). It has oversight of the URC in the East of England, covering Norfolk, Suffolk, most of Essex, most of Cambridgeshire and part of Hertfordshire.

In accordance with “the Structure of the United Reformed Church” it is responsible for:-

Overseeing five area partnerships;
Promoting church extension;
Promoting ecumenical relations;
Opening, closing and extending church buildings;
Overseeing matters affecting the ordained ministry, including discipline;
Dealing with matters referred from the general assembly and mission council;
Undertaking such other things which promote the welfare of the United Reformed Church.

The Eastern Synod, which is made up of ministers and lay representatives of each local church together with Synod officers, meets to transact business routinely twice a year but has delegated various powers to a number of committees as well as the Trust. The following committees are responsible for specific elements in the life of the Synod:-

Executive Committee;
Pastoral Committee;
Mission Committee;
Resources/Property Committee; and
Listed Buildings Advisory Committee.

THE UNITED REFORMED CHURCH (EASTERN PROVINCE) TRUST

Annual Report

Year Ended 31 December 2020

Organisational Structure

Day-to-day financial and property activities are dealt with by the Finance and Resources Officers. In accordance with the URC Acts, many decisions need a Church Meeting resolution, a Synod approval (at present Synod has delegated its power of approval to Resources Committee) and a decision by the Trust Directors before actions can be taken by, or on behalf of, the Trust as Trustee.

Related parties

During 2010 a subsidiary company - United Reformed Church (Eastern Province) Design & Build Limited - was established. This company has remained dormant throughout the year.

There have been no significant related party transactions between the Trust and any of its Trustees or Synod officials during the year.

Use of Volunteers

Most ministers of word and sacrament are paid directly from the Finance Office of the United Reformed Church in London. The URC Trust (acting at denominational level) is a separate charity, again not under common control. The Synod office staff, Finance and Trust Officer, Resources Officer and Youth and Children’s Development Officer are paid by the Synod. Other than that, all members of Synod Committees and other supporting and enabling Synod activities are volunteers, almost all being members of their local URC or Local Ecumenical Partnership.

Key Management Personnel

The key management group within the Synod structure is made up of the Synod Moderator, the Synod Clerk and the Synod Treasurer. The first of these is remunerated by the denomination centrally at the same rate as all stipendiary ministers of word and sacrament serving the denomination. The Clerk and Treasurer are entitled to claim a small honorarium and further details are in note 6.

Directors’ Responsibilities

The Trustees (who are also directors for the purposes of company law) are responsible for preparing the Trustees’ Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the Trustees to prepare financial statements for each year, which give a true and fair view of the state of affairs of the charity and the incoming resources and application of resources, including the net income or expenditure, of the charity for the year. In preparing these financial statements, the Trustees are required to:-

Select suitable accounting policies and then apply them consistently;
Observe the methods and principles in the charities SORP;
Make judgements and estimates that are reasonable and prudent;
State whether applicable UK accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.

THE UNITED REFORMED CHURCH (EASTERN PROVINCE) TRUST

Annual Report

Year Ended 31 December 2020

The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

In so far as the Trustees are aware:-

There is no relevant audit information of which the charitable company’s auditor is unaware; and
The Trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information.

Signed on behalf of the Trustees

Andrew East Trustee

Date: 10/09/2021

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF

THE UNITED REFORMED CHURCH (EASTERN PROVINCE) TRUST

Opinion

We have audited the financial statements of The United Reformed Church (Eastern Province) Trust (the ‘charitable company’) for the year ended 31 December 2020 which comprise Statement of Financial Activities, Balance Sheet, Cash Flow Statement 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:

give a true and fair view of the state of the charitable company’s affairs as at 31 December 2020 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.

Basis of opinion

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 charitable company 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 of our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the director's 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 Company'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 director 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, other than the financial statements and our auditor’s report thereon. 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, 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.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

the information given in the Trustees’ report (incorporating the Annual Report) for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Trustees’ report has been prepared in accordance with applicable legal requirements.

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF

THE UNITED REFORMED CHURCH (EASTERN PROVINCE) TRUST

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustee's Report.

We have nothing to report in respect of the following matters in relation to which Companies Act 2006 requires us to report to you if, in our opinion:

adequate accounting records have not been kept or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of trustees’ remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit; or
the trustees were not entitled to prepare the financial statements in accordance with the small companies exemptions in preparing the trustees’ report.

Responsibilities of trustees

As explained more fully in the Trustees’ responsibilities statement, the Trustees (who are also the directors of the charitable company for the purposes of company law) 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 charitable company’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 intent to liquidate the charitable company 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:

Obtaining and understanding of the legal and regulatory frameworks that the Charity operates in, focusing on those laws and regulations that have a direct effect on the financial statements;
Enquiring of management and Trustees around known or suspected instances of non-compliance of laws and regulations and fraud;
Discussing among the engagement team regarding how and where fraud might occur in the financial statements and any potential indications of fraud;
Reviewing minutes of meetings of those charged with governance; and
Performing audit work in relation to the risk of management override, including testing of journal entries and other adjustments for appropriateness and reviewing accounting estimates for bias.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF

THE UNITED REFORMED CHURCH (EASTERN PROVINCE) TRUST

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 report

This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company’s members 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 charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinion we have formed.

Helen Blundell LLB, FCA, FCIE, DChA (Senior Statutory Auditor) For and on behalf of MHA MacIntyre Hudson Chartered Accountants and Statutory Auditors Birmingham, United Kingdom Date: 17 September 2021

THE UNITED REFORMED CHURCH (EASTERN PROVINCE) TRUST

Statement of Financial Activities (including the Income and Expenditure Account)

Year Ended 31 December 2020

2019 Total Funds Notes £ Income Donations and legacies 138,447 Grants received 2 Charitable activities: 112,196 Rent and loan interest 2 91,337 Other income 2 549,465 Investment 2 891,445 Total Operating Income 2 787,005 Proceeds on sale of property 4 1,678,450 Total Income Expenditure on: 158,010 Raising funds 2 731,855 Charitable expenditure 2 889,865 Total Expenditure 2 1,580 Net Income/(Expenditure) on Operating account 2 788,585 Net income/(expenditure) for the year before transfers - Transfers between funds 788,585 Net income/(expenditure) for the year after transfers 513 Realised (loss)/gain on investments 1,616,616 Unrealised (loss)/gain on investments 2,405,714 Net Movements in Funds for the year 18,005,483 Fund Balances b/forward 20,411,197 Fund Balances c/forward 9	2020 Total Funds Unrestricted £ £ 134,000 131,201 77,767 - 26,004 - 481,421 30,413 719,192 161,614 1,503,132 - 2,222,324 161,614 104,143 55,263 658,697 127,849 762,840 183,112 (43,648) (21,498) 1,459,484 (21,498) - 20,000 1,459,484 (1,498) (494,874) (144,498) 562,245 50,058 1,526,855 (95,938) 20,411,197 1,461,258 21,938,052 1,365,320	Designated £ 2,799 23,209 26,004 400,781 452,793 1,400,153 1,852,946 16,087 527,413 543,500 (90,707) 1,309,446 (20,000) 1,289,446 (211,972) 430,240 1,507,714 10,893,706 12,401,420	Restricted £ - 54,558 - 50,227 104,785 102,979 207,764 32,793 3,435 36,228 68,557 171,536 - 171,536 (138,404) 81,947 115,079 8,056,233 8,171,312

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.

THE UNITED REFORMED CHURCH (EASTERN PROVINCE) TRUST COMPANY NUMBER 00101685 Balance Sheet

As at 31 December 2020

Restated
2019
Notes
£
Fixed Assets
7,309,937
Tangible assets
10
11,282,469
Investments
11
944,456
Programme related investments
12
19,536,862
Current Assets
113,062
Debtors
13
6,427,209
Cash and short term deposits
14
6,650,271
(5,658,989)
Creditors: Amounts falling due within one
year
15
881,282
Net Current Assets
20,418,144
Total Assets less Current Liabilities
(6,947)
Creditors: Amounts falling due after more
than one year
16
20,411,197
Total Assets
18
Funds:
Unrestricted funds:
1,461,258
General
10,893,706
Designated
12,354,964
Total unrestricted funds
8,056,233
Restricted funds
20,411,197
Total Funds
18

2020
£
7,065,589
11,410,585
818,144
19,294,318
680,612
5,667,239
6,347,851
(3,478,871)
2,868,980
22,163,298
(225,246)
21,938,052
1,365,320
12,401,420
13,766,740
8,171,312
21,938,052

These financial statements have been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.

Approved by the Synod Trust Directors on and signed on their behalf by 10/09/2021

Trustee – Gil Heathcote

THE UNITED REFORMED CHURCH (EASTERN PROVINCE) TRUST

Statement of Cash Flows

Year ended 31 December 2020

Notes Cash flow from operating activities: Net cash provided/used in operating activities A Cash flows from investing activities: Proceeds from sale of fixed assets Dividends, interest and rents from investments Purchase of fixed assets Purchase of investments Proceeds from sale of investments Issue of programme related loans Repayment of programme related loans Net cash provided by/used in investing activities Change in cash and cash equivalents in the reporting period Cash and cash equivalents at the beginning of the reporting period B Cash and cash equivalents at the end of the reporting period B Notes to the statement of cash flows A) Reconciliation of net income/expenditure to net cash flow from operating activities Net income/expenditure for the reporting period (as per the statement of financial activities) Adjustments for: Depreciation charges (Gains) on investments Dividends, interest and rents from investments Loan interest (Profit) on the sale of fixed assets (Increase) in debtors (Decrease)/increase in creditors ( Net cash provided by operating activities ( B) Analysis of cash and cash equivalents Cash at bank and in hand (	Restated 2020 2019 £ £ (1,909,186) 4,542,519 486,973 - 555,031 656,334 (1,435) (1,349,647) (3,575,467) (301,000) 3,553,645 868,918 - (60,000) 130,469 68,828 1,149,216 (116,567) (759,970) 4,425,952 6,427,209 2,001,257 5,667,239 6,427,209 1,526,855 2,405,714 5,783 6,026 (106,294) (1,616,616) (555,031) (656,334) (4,157) (5,327) (246,973) (1,401) (567,550) (4,687) 1,961,819) 4,415,144 3,436,041) 2,136,805 1,909,186) 4,542,519	Restated 2020 2019 £ £ (1,909,186) 4,542,519 486,973 - 555,031 656,334 (1,435) (1,349,647) (3,575,467) (301,000) 3,553,645 868,918 - (60,000) 130,469 68,828 1,149,216 (116,567) (759,970) 4,425,952 6,427,209 2,001,257 5,667,239 6,427,209 1,526,855 2,405,714 5,783 6,026 (106,294) (1,616,616) (555,031) (656,334) (4,157) (5,327) (246,973) (1,401) (567,550) (4,687) 1,961,819) 4,415,144 3,436,041) 2,136,805 1,909,186) 4,542,519
		2,136,805
		4,542,519

THE UNITED REFORMED CHURCH (EASTERN PROVINCE) TRUST

Notes to the Financial Statements

Year Ended 31 December 2020

1. Accounting Policies

Basis of Accounting

The charity constitutes a public benefit entity as defined by FRS 102. 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 Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (SORP FRS102), the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011, the Companies Act 2006 and UK Generally Accepted Practice.

The financial statements are prepared on a going concern basis under the historical cost convention, modified to include certain items at fair value. The financial statements are prepared in British Pound Sterling (£) which is the functional currency of the charity.

The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

Going Concern

The financial statements have been prepared on a going concern basis. The Directors have considered relevant information, including the annual budget and forecast future cash flows in making their assessment. The covid-19 pandemic has not had a significant impact on the charity’s operations although adaptations have been made to reflect changes in working practices. The Directors are monitoring the impact of the pandemic on future revenue streams and the impact on our beneficiaries and any support they may require. Based on these assessments and having regard to resources available to the charity, the Directors have concluded that there is no material uncertainty and the financial statements can continue to be prepared on a going concern basis.

Funds Incorporated

The financial statements show the combined income, expenditure, assets and liabilities of the following funds which are administered for the benefit of the United Reformed Church within the Eastern Synod:-

Synod Administration Fund Church Life and Mission Fund Retired Ministers Housing Fund Retired Ministers Holiday Fund Manse Fund Pioneer Fund Heritage Fund

Funds administered on behalf of local churches are not included.

Description and Use of Funds

Restricted income funds are funds whose use is restricted to specific purposes according to the terms on which the funds were received.

Unrestricted income funds may be spent generally for furthering the Christian and charitable work of the United Reformed Church in the Eastern Province. The main fund in this category is the Church Life & Mission Fund. Certain funds have been allocated by the Resources Committee but the committee retains authority to re-allocate such funds and so they are treated as Designated Funds within Unrestricted Income Funds.

THE UNITED REFORMED CHURCH (EASTERN PROVINCE) TRUST

Notes to the Financial Statements

Year Ended 31 December 2020

Accounting Policies (continued)

Income recognition

All incoming resources are included in the Statement of Financial Activities (SoFA) when the charity is legally entitled to the income after any performance conditions have been met, the amount can be measured reliably and it is probable that the income will be received.

Fixed asset gifts in kind are recognised when receivable and are included at fair value. They are not deferred over the life of the asset.

The charity receives grants which are recognised at fair value when the charity has entitlement after any performance conditions have been met, it is probable that the income will be received and the amount can be measured reliably. If entitlement is not met then these amounts are deferred.

Investment income is earned through holding assets for investment purposes such as shares and property. It includes dividends, interest and rent. Where it is not practicable to identify investment management costs incurred within a scheme with reasonable accuracy the investment income is reported net of these costs. It is included when the amount can be measured reliably. Interest income is recognised using the effective interest method and dividend and rent income is recognised as the charity’s right to receive payment is established.

Individual church property

The Trust is sole Trustee of the land and buildings of most local URCs but they are not the property of the Synod and are not shown in the financial statements. Sale proceeds from redundant properties or from part thereof which come into Synod funds are treated as unrestricted income from general funds. The income is recognised when the amount can be measured reliably and it is probable that the income will be received.

Expenditure recognition

All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Expenditure is recognised where there is a legal or constructive obligation to make payments to third parties, it is probable that the settlement will be required and the amount of the obligation can be measured reliably. It is categorised under the following headings:

Costs of raising funds includes of costs of managing investments and programme related investments;
Expenditure on charitable activities includes costs of ministry, mission, training and property grants; and
Other expenditure represents those items not falling into the categories above.

Irrecoverable VAT is charged as an expense against the activity for which expenditure arose. Grants payable to local churches, organisations and individuals are within the charitable objectives. Where unconditional grants are offered, this is accrued as soon as the recipient is notified of the grant, as this gives rise to a reasonable expectation that the recipient will receive the grants. Where grants are conditional relating to performance then the grant is only accrued when any unfulfilled conditions are outside of the control of the charity.

THE UNITED REFORMED CHURCH (EASTERN PROVINCE) TRUST

Notes to the Financial Statements

Year Ended 31 December 2020

1. Accounting Policies (continued)

Support costs allocation

Support costs are those that assist the work of the charity but do not directly represent charitable activities and include premises costs, office costs, governance costs, and salary costs. They are incurred directly in support of expenditure on the objects of the charity. Where support costs cannot be directly attributed to particular headings they have been allocated to cost of raising funds and expenditure on charitable activities on a basis consistent with use of the resources.

Depreciation

Properties recognised in tangible fixed assets are recognised at cost. The residual values of the properties are such that the depreciation charge is negligible. Depreciation is provided on all tangible fixed assets at rates calculated to write off the cost, on a straight line basis over their estimated useful economic lives as follows:-

Office Equipment (including computers)	- over five years
Fixtures and Fittings	- over ten years
Motor Vehicle	- over five years
Audio Visual	- over five years

No amounts under £50 are capitalised. The Trustees conduct an annual impairment review.

Investments

Listed investments are recognised initially at fair value which is normally the transaction price excluding transaction costs. Subsequently, they are measured at fair value with changes recognised in ‘net gains/(losses) on investments’ in the SoFA if the shares are publicly traded or their fair value can otherwise be measured reliably.

Programme related investments are those held to further our charitable purposes. Programme related investments include investment in a percentage share of properties and bridging or other loans.

Related investments in properties are stated at cost subject to any adjustment arising from impairment which is considered on an annual basis. Gains on disposal of these investments are shown as other income in the SoFA. Investments by way of loans are stated at cost. Interest is charged on the loans at the COIF rate of interest, being the rate of interest the Trust would otherwise have earned.

Debtors and creditors receivable/payable within one year

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in expenditure.

Provisions

Provisions are recognised when the charity has an obligation at the balance sheet date as a result of a past event, it is probable that an outflow of economic benefits will be required in settlement and the amount can be reliably estimated.

THE UNITED REFORMED CHURCH (EASTERN PROVINCE) TRUST

Notes to the Financial Statements

Year Ended 31 December 2020

1. Accounting Policies (continued)

Leases

Rentals payable and receivable under operating leases are charged to the SoFA on a straight line basis over the period of the lease.

Contribution to Pension Funds

The charity participates in a defined benefit scheme, The Pensions Trust Defined Benefit Scheme, which is a multi employer scheme where the underlying assets and liabilities are not separately identifiable. In accordance with the SORP, it is accounted for as a defined contribution scheme. Contributions are charged as expenditure as they become payable in accordance with the rules of the scheme.

The charity also operates a defined contribution scheme. Contributions are charged as expenditure as they become payable in accordance with the rules of the scheme.

Tax

The charity is an exempt charity within the meaning of schedule 3 of the Charities Act 2011 and is considered to pass the tests set out in Paragraph 1 Schedule 6 Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes.

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.

Critical accounting estimates and areas of judgement

Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Critical accounting estimates and judgements relevant to the financial statements are:

Investments – estimate of fair value Fixed assets – estimate of useful life and estimate of impairment Indirect costs – allocation to activities

THE UNITED REFORMED CHURCH (EASTERN PROVINCE) TRUST

Notes to the Financial Statements

Year Ended 31 December 2020

2. Analysis of Total Operating Income and Expenditure

2019 Total Funds £ Income from Donations and legacies: 130,000 Local church contributions 8,447 Donations 138,447 Income from charitable activities: Rent and loan interest 106,869 Rental income 5,327 Loan interest 112,196 Other income 91,337 Miscellaneous Income from investments 371,109 Investment income – excl. interest 9,676 Interest 168,680 Rental income 549,465 891,445 Total Operating Income Expenditure on raising funds 91 Legal and professional 64,242 Synod manse scheme 29,870 Leasing of premises 1,848 Investment manager charges 61,959 Shared indirect costs (note 3) 158,010 Total Cost of Generating Funds	2020 Total Funds Unrestricted Designated Restricted £ £ £ £ 130,000 130,000 - - 4,000 1,201 2,799 - 134,000 131,201 2,799 - 73,610 - 19,052 54,558 4,157 - 4,157 - 77,767 - 23,209 54,558 26,004 - 26,004 - 306,687 26,788 230,978 48,921 24,871 3,625 19,940 1,306 149,863 - 149,863 - 481,421 30,413 400,781 50,227 719,192 161,614 452,793 104,785 1,164 450 714 - 32,240 - - 32,240 10,788 - 10,453 335 1,501 20 1,263 218 58,450 54,793 3,657 - 104,143 55,263 16,087 32,793	2020 Total Funds Unrestricted Designated Restricted £ £ £ £ 130,000 130,000 - - 4,000 1,201 2,799 - 134,000 131,201 2,799 - 73,610 - 19,052 54,558 4,157 - 4,157 - 77,767 - 23,209 54,558 26,004 - 26,004 - 306,687 26,788 230,978 48,921 24,871 3,625 19,940 1,306 149,863 - 149,863 - 481,421 30,413 400,781 50,227 719,192 161,614 452,793 104,785 1,164 450 714 - 32,240 - - 32,240 10,788 - 10,453 335 1,501 20 1,263 218 58,450 54,793 3,657 - 104,143 55,263 16,087 32,793
		- 32,240 335 218 - 32,793

THE UNITED REFORMED CHURCH (EASTERN PROVINCE) TRUST

Notes to the Financial Statements

Year Ended 31 December 2020

2. Analysis of Total Operating Income and Expenditure (Continued)

2019 Total Funds £ Expenditure on Charitable Activities *Ministry & Mission:-* 100,437 Grants (note 5) 53,974 Pioneer development officer 2,578 Retired ministers housing society 38,550 Shared indirect costs (note 3) 195,539 *Training:-* (4,148) Ministers (note 5) - Students (note 5) 9 Lay training (note 5) 5,161 Synod organised events 54,472 Mission and development officer 55,909 Children and youth development officer 38,550 Shared indirect costs (note 3) 149,953 *Property:-* 233,451 Church building grants (note 5) 41,275 Property facelift (note 5) 7,738 Quinquennial survey grants (note 5) 103,899 Shared indirect costs (note 3) 386,363 731,855 Total Charitable Expenditure 889,865 Total Operating Expenditure Net Income/(Expenditure) on Operating Account 1,580	2020 Total Funds Unrestricted Designated Restricted £ £ £ £ 330,213 - 330,213 54,968 - 54,968 - 3,435 - - 3,435 39,156 18,264 20,892 - 427,772 18,264 406,073 3,435 (2,000) - (2,000) - 750 - 750 - (60) - (60) - 4,995 - 4,995 - 52,262 - 52,262 - 58,373 - 58,373 - 39,156 18,264 20,892 - 153,476 18,264 135,212 - (41,953) - (41,953) - 18,150 - 18,150 - 3,141 - 3,141 - 98,111 91,321 6,790 - 77,449 91,321 (13,872) - 658,697 127,849 527,413 3,435 762,840 183,112 543,500 36,228 (43,648) (21,498) (90,707) 68,557	2020 Total Funds Unrestricted Designated Restricted £ £ £ £ 330,213 - 330,213 54,968 - 54,968 - 3,435 - - 3,435 39,156 18,264 20,892 - 427,772 18,264 406,073 3,435 (2,000) - (2,000) - 750 - 750 - (60) - (60) - 4,995 - 4,995 - 52,262 - 52,262 - 58,373 - 58,373 - 39,156 18,264 20,892 - 153,476 18,264 135,212 - (41,953) - (41,953) - 18,150 - 18,150 - 3,141 - 3,141 - 98,111 91,321 6,790 - 77,449 91,321 (13,872) - 658,697 127,849 527,413 3,435 762,840 183,112 543,500 36,228 (43,648) (21,498) (90,707) 68,557
		3,435
		- - - - - - - - - - - - - 3,435
		36,228
		68,557

THE UNITED REFORMED CHURCH (EASTERN PROVINCE) TRUST

Notes to the Financial Statements

Year Ended 31 December 2020

2019 Comparative figures

a) Analysis of Total Operating Income and Expenditure

----- Start of picture text -----
2019
Total
Funds Unrestricted Designated Restricted
Income from £ £ £ £
Donations and legacies:
- - - -
Grants – Ministry and Mission
Local church contributions 130,000 130,000 - -
Donations 8,447 - 8,447 -
138,447 130,000 8,447 -
Income from charitable activities:
Rent and loan interest
Rental income 106,869 - 25,088 81,781
Loan interest 5,327 - 5,327 -
-
112,196 30,415 81,781
Other income
Miscellaneous 91,337 155 91,182 -
Income from investments
Investment income – excl. interest 371,109 42,384 265,440 63,285
Interest 9,676 2,968 4,723 1,985
Rental income 168,680 - 168,680 -
549,465 45,352 438,843 65,270
Total Operating Income 891,445 175,507 568,887 147,051
Expenditure on raising funds
Legal and professional 91 - 91 -
-
Synod manse scheme 64,242 (43) 64,285
Leasing of premises 29,870 2,114 27,433 323
Investment manager charges 1,848 70 1,212 566
Shared indirect costs (note 3) 61,959 58,633 3,326 -
Total Cost of Generating Funds 158,010 60,817 32,019 65,174
----- End of picture text -----

THE UNITED REFORMED CHURCH (EASTERN PROVINCE) TRUST

Notes to the Financial Statements

Year Ended 31 December 2020

2019 Comparative figures

2. Analysis of Total Operating Income and Expenditure (Continued)

----- Start of picture text -----
2019
Total
Funds Unrestricted Designated Restricted
£ £ £ £
Expenditure on Charitable Activities
Ministry & Mission:-
- -
Grants (note 5) 100,437 100,437
- -
Pioneer development officer 53,974 53,974
- -
Retired ministers housing society 2,578 2,578
- - - -
Minister pension fund
Shared indirect costs (note 3) 38,550 19,545 19,005 -
195,539 19,545 173,416 2,578
Training:-
- -
Ministers (note 5) (4,148) (4,148)
- - - -
Students (note 5)
Lay training (note 5) 9 - 9 -
-
Synod organised events 5,161 5,161
- -
Mission and development officer 54,472 54,472
Children and youth development officer
- -
55,909 55,909
Shared indirect costs (note 3) 38,550 19,545 19,005 -
149,953 19,545 130,408 -
Property:-
- -
Church building grants (note 5) 233,451 233,451
- -
Property facelift (note 5) 41,275 41,275
Quinquennial survey grants (note 5)
- -
7,738 7,738
Shared indirect costs (note 3) 103,899 97,722 6,177 -
386,363 97,722 288,641 -
Total Charitable Expenditure 731,855 136,812 592,465 2,578
Total Operating Expenditure 889,865 197,629 624,484 67,752
Net Income/(Expenditure) on
Operating Account 1,580 (22,122) (55,597) 79,299
----- End of picture text -----

THE UNITED REFORMED CHURCH (EASTERN PROVINCE) TRUST

Notes to the Financial Statements

Year Ended 31 December 2020

3. Indirect Costs

2019 Total Funds £ Premises Costs:- 12,240 Rent 5,016 Insurance 1,179 Gas and electricity 1,972 Cleaning 1,055 Property repairs 180 Water charges 21,642 Office Costs 2,592 Telephone, internet and website 2,824 Postage and stationery 3,659 Depreciation 4,521 Computer costs 1,077 Refreshments and office consumables 472 Equipment repairs 4,862 Insurance 4,145 Staff travel, subsistence and training 150 Staff events (37) Year book and communications 3,442 Photocopier lease and copy costs 1,233 Moderator expenses 1,133 Sundries 30,073 154,665 Employment costs Synod Related Costs:- 2,098 Synod Council and general assembly 2,805 Synod treasurer and clerk costs - Honoraria 13,326 Audit and accountancy 12,212 Committee and office holder costs 6,137 Legal and professional 36,578 242,958 Total Indirect Costs	2020 Total Funds Unrestricted Designated Restricted £ £ £ £ 12,240 12,240 - - - - - - 2,309 2,309 - - 2,129 2,129 - - 626 626 - - 179 179 - - 17,483 17,483 - - 2,301 2,301 - - 3,843 3,843 - - 2,984 2,752 232 - 5,733 5,733 - - 371 371 - - 1,527 1,527 - - 689 689 - - 1,732 1,732 - - 224 224 - - (4) - (4) - 3,414 3,582 (168) - 1,684 - 1,684 - 464 464 - - 24,962 23,218 1,744 - 157,511 120,895 36,616 - 15 15 - - 1,172 1,172 - - 1,500 1,500 - - 8,850 8,850 - - 3,903 1,656 2,247 - 19,477 7,853 11,624 - 34,917 21,046 13,871 - 234,873 182,642 52,231 -	2020 Total Funds Unrestricted Designated Restricted £ £ £ £ 12,240 12,240 - - - - - - 2,309 2,309 - - 2,129 2,129 - - 626 626 - - 179 179 - - 17,483 17,483 - - 2,301 2,301 - - 3,843 3,843 - - 2,984 2,752 232 - 5,733 5,733 - - 371 371 - - 1,527 1,527 - - 689 689 - - 1,732 1,732 - - 224 224 - - (4) - (4) - 3,414 3,582 (168) - 1,684 - 1,684 - 464 464 - - 24,962 23,218 1,744 - 157,511 120,895 36,616 - 15 15 - - 1,172 1,172 - - 1,500 1,500 - - 8,850 8,850 - - 3,903 1,656 2,247 - 19,477 7,853 11,624 - 34,917 21,046 13,871 - 234,873 182,642 52,231 -
		-
		- - - - - - - - - - - - -
		-
		-
		- - - - - -
		-
		-

THE UNITED REFORMED CHURCH (EASTERN PROVINCE) TRUST

Notes to the Financial Statements

Year Ended 31 December 2020

3. Indirect Costs (continued)

Premises costs Office costs Synod related costs Employment costs Total Indirect Costs % % Unrestr. Desig. Funds generated 30 07 Ministry & Mission 10 40 Training 10 40 Property 50 13 Total 100 100	Total Unrestricted Designated Restricted £ £ £ £ 17,483 17,483 - - 24,962 23,218 1,744 - 34,917 21,046 13,871 - 157,511 120,895 36,616 - 234,873 182,642 52,231 - Total Unrestricted Designated Restricted £ £ £ £ 58,450 54,793 3,657 - 39,156 18,264 20,892 - 39,156 18,264 20,892 - 98,111 91,321 6,790 - 234,873 182,642 52,231 -	Total Unrestricted Designated Restricted £ £ £ £ 17,483 17,483 - - 24,962 23,218 1,744 - 34,917 21,046 13,871 - 157,511 120,895 36,616 - 234,873 182,642 52,231 - Total Unrestricted Designated Restricted £ £ £ £ 58,450 54,793 3,657 - 39,156 18,264 20,892 - 39,156 18,264 20,892 - 98,111 91,321 6,790 - 234,873 182,642 52,231 -
		-

2019 Comparative figures

3. Indirect Costs

----- Start of picture text -----
2019
Total
Funds Unrestricted Designated Restricted
£ £ £ £
Premises Costs:-
Rent 12,240 12,240 - -
Insurance 5,016 5,016 - -
- -
Gas and electricity 1,179 1,179
- -
Cleaning 1,972 1,972
- -
Property repairs 1,055 1,055
Water charges 180 180 - -
21,642 21,642 - -
Office Costs
- -
Telephone, internet and website 2,592 2,592
- -
Postage and stationery 2,824 2,824
-
Depreciation 3,659 2,645 1,014
- -
Computer costs 4,521 4,521
Refreshments and office consumables 1,077 1,077 - -
Equipment repairs 472 472 - -
Insurance 4,862 4,862 - -
- -
Staff travel, subsistence and training 4,145 4,145
Staff events 150 150 - -
Year book and communications (37) - (37) -
-
Photocopier lease and copy costs 3,442 3,610 (168)
- -
Moderator expenses 1,233 1,233
Sundries 1,133 918 215 -
30,073 27,816 2,257 -
-
Employment costs 154,665 117,926 36,739
----- End of picture text -----

THE UNITED REFORMED CHURCH (EASTERN PROVINCE) TRUST

Notes to the Financial Statements

Year Ended 31 December 2020

2019 Comparative figures

----- Start of picture text -----
Synod Related Costs:-
- -
Synod Council and general assembly 2,098 2,098
- -
Synod treasurer and clerk costs 2,805 2,805
- -
Audit and accountancy 13,326 13,326
Committee and office holder costs 12,212 9,785 2,427 -
Legal and professional 6,137 47 6,090 -
36,578 28,061 8,517 -
Total Indirect Costs 242,958 195,445 47,513 -
Total Unrestricted Designated Restricted
£ £ £ £
Premises costs 21,642 21,642 - -
Office costs 30,073 27,816 2,257 -
-
Synod related costs 36,578 28,061 8,517
Employment costs 154,665 117,926 36,739 -
Total Indirect Costs 242,958 195,445 47,513 -
% % Total Unrestricted Designated Restricted
Unrestr. Desig. £ £ £ £
Funds generated 30 07 61,959 58,633 3,326 -
Ministry & Mission 10 40 38,550 19,545 19,005 -
Training 10 40 38,550 19,545 19,005 -
Property 50 13 103,899 97,722 6,177 -
Total 100 100 242,958 195,445 47,513 -
4. Proceeds on Sale of Property
2019 2020
Total Total
Funds Funds Unrestricted Designated Restricted
£ £ £ £ £
Proceeds arising from church
-
787,005 closures/disposals 1,503,132 1,400,153 102,979
2019 Comparative figures
Proceeds on Sale of Property
2019
Total
Funds Unrestricted Designated Restricted
£ £ £ £
Proceeds arising from church
- -
closures/disposals 787,005 787,005
----- End of picture text -----

THE UNITED REFORMED CHURCH (EASTERN PROVINCE) TRUST

Notes to the Financial Statements

Year Ended 31 December 2020

5. Grants

The following grants have been charged during the year:-

	Institutions	Institutions		Individuals
	Number	Amount		Number	Amount
Mission:			£		£
Youth and Children’s work				6	9,257
Youth work grants
Churches Together in Suffolk	1		681
Churches Together in Norfolk and
Waveney	1		406
Shared Churches in Ely
Cambridgeshire work relations group
University of East Anglia	1		2,000
CTEEL	1		1,402
Resource Sharing	1	60,000
Sundry mission grants	4	85,617
Sundry grants	8	156,260
Berechurch Road House for Mission	1	12,000
Sundry minister grants	1		1,140
Ministry:
Moderator’s benevolent fund	1		1,450
Retired Ministers’ Housing Society	1		3,435
		324,391			9,257
Training:
Continual Minister Education				9	(2,043)
Minister spring school				2	42
Student book grants				3	750
Lay training				2	(60)
					(1,311)
Property:
Local churches	5	(41,953)
Project facelift	3	18,150
Quinquennial survey grants	7		3,141
		(20,662)			-
Total Grants Charged		303,729			7,946

THE UNITED REFORMED CHURCH (EASTERN PROVINCE) TRUST

Notes to the Financial Statements

Year Ended 31 December 2020

2019 Comparative figures

5. Grants

The following grants have been charged during the year:-

----- Start of picture text -----
Institutions Individuals
Number Amount Number Amount
Mission: £ £
Youth and Children’s work 8 6,096
Youth work grants
Churches Together in Suffolk 1 681 -
Churches Together in Norfolk and
Waveney 1 400 -
Shared Churches in Ely
Cambridgeshire work relations group
University of East Anglia 2 13,333 -
CTEEL 1 1,402 -
Resource Sharing 1 60,000 -
Sundry mission grants 3 2,100 -
Sundry grants 1 67 -
Berechurch Road House for Mission 1 11,720 -
Sundry minister grants 1 150 -
Ministry:
Moderator’s benevolent fund 1 1,900 -
Retired Ministers’ Housing Society 1 2,578 -
Ministers pension fund - -
94,331 6,096
Training:
Continual Minister Education 23 1,100
- -
Student book grants
Lay training 10 9
1,109
Property:
Local churches 15 233,451 -
Project facelift 2 41,275 -
Quinquennial survey grants 10 7,738 -
282,464 -
Total Grants Charged 376,795 7,025
----- End of picture text -----

6. Payments to Trustees and related party transactions

Reimbursed expenses were paid to three Trustees of the Synod in aggregate of £2,766 (2019: £3,986). The Treasurer was paid an honoraria of £1,500 (2019: £Nil) in respect of their role within the Synod. No other remuneration or expenses were paid to the Trustees or members of the Resources Committee, other than the reimbursement of travel expenses.

THE UNITED REFORMED CHURCH (EASTERN PROVINCE) TRUST

Notes to the Financial Statements

Year Ended 31 December 2020

7. Employment Emoluments Wages and salaries Employers national insurance Pension costs The average number of employees was	2020 £ 214,775 19,597 33,774 268,146 6	2019 £ 203,005 19,086 32,976
		255,067
		6

No employee received more than £60,000 (2019 (4: None) per annum or more. All staff are employed by the Synod other than the Moderator whose contracts of employment is held by Church House.

The charity operates both a defined benefit and a direct contribution pension scheme and contributions are charged as expenditure as they become payable (note 19).

8. Gains/(Losses) on Investments 2020 £ Realised (losses)/gains on investments sold (494,874) Unrealised gain on fair value movement of investments for the year 562,245 Net Gain/(Loss) on Investments for the Year 67,371	2019 £ 513 1,616,616
	1,617,129

9. Movement in Funds

1.1.2020 Unrestricted £ Synod administration 1,461,258 Unrestricted Designated Church Life & Mission 9,175,432 Heritage Fund 692,782 Manse Fund 443,395 Pioneer Fund 582,097 Total Designated Funds 10,893,706 Total Unrestricted Funds 12,354,964	Incoming Outgoing Transfers Change in investment value £ £ £ £ 161,614 (183,112) 20,000 (94,440) 988,414 (538,459) (20,000) 176,227 20,812 (51) - 29,234 - - - - 843,720 (4,990) - 12,807 1,852,946 (543,500) (20,000) 218,268 2,014,560 (726,612) - 123,828	31.12.2020 £ 1,365,320 9,781,614 742,777 443,395 1,433,634
		12,401,420
		13,766,740

THE UNITED REFORMED CHURCH (EASTERN PROVINCE) TRUST

Notes to the Financial Statements

Year Ended 31 December 2020

9. Movement on Funds (continued)

Restricted Church Life & Mission Retired Ministers Housing Retired Ministers Holiday Manse fund Total Restricted Funds Total Funds	1.1.2020 £ 1,178,316 948,841 11,665 5,917,411 8,056,233 20,411,197	Incoming Outgoing Transfers Change in investment value £ £ £ £ 20,507 - - (67,210) 15,608 (3,442) - (7,562) 178 (2) - (625) 171,471 (32,784) - 18,940 207,764 (36,228) - (56,457) 2,222,324 (762,840) - 67,371	Incoming Outgoing Transfers Change in investment value £ £ £ £ 20,507 - - (67,210) 15,608 (3,442) - (7,562) 178 (2) - (625) 171,471 (32,784) - 18,940 207,764 (36,228) - (56,457) 2,222,324 (762,840) - 67,371	Incoming Outgoing Transfers Change in investment value £ £ £ £ 20,507 - - (67,210) 15,608 (3,442) - (7,562) 178 (2) - (625) 171,471 (32,784) - 18,940 207,764 (36,228) - (56,457) 2,222,324 (762,840) - 67,371	Incoming Outgoing Transfers Change in investment value £ £ £ £ 20,507 - - (67,210) 15,608 (3,442) - (7,562) 178 (2) - (625) 171,471 (32,784) - 18,940 207,764 (36,228) - (56,457) 2,222,324 (762,840) - 67,371	Incoming Outgoing Transfers Change in investment value £ £ £ £ 20,507 - - (67,210) 15,608 (3,442) - (7,562) 178 (2) - (625) 171,471 (32,784) - 18,940 207,764 (36,228) - (56,457) 2,222,324 (762,840) - 67,371	31.12.2020 £ 1,131,613 953,445 11,216 6,075,038 8,171,312 21,938,052
*Prior Year*	*1.1.2019*	*Incoming* *Outgoing* *Transfers* *Change in* *investment* *value*					*31.12.2019*
*Unrestricted* £ Synod administration 1,321,232 *Unrestricted Designated* Church Life & Mission 7,976,053 Heritage Fund 696,071 Manse Fund 443,395 Pioneer Fund 632,595 *Total Designated* *Funds* 9,748,114			£ £ 175,507 (197,629) 531,978 (387,621) 27,413 (132,343) - - 9,496 (104,520) 568,887 (624,484) (		£ 20,000 (20,000) - - - 20,000)	£ 142,148 1,075,022 101,641 - 44,526 1,221,189	£ *1,461,258* *9,175,432* *692,782* *443,395* *582,097* *10,893,706*
*Total Unrestricted* *Funds*	11,069,346		744,394	(822,113)	-	1,363,337	*12,354,964*

THE UNITED REFORMED CHURCH (EASTERN PROVINCE) TRUST

Notes to the Financial Statements

Year Ended 31 December 2020

9. Movement on Funds (continued)

----- Start of picture text -----
Prior Year Change in
investment
1.1.2019 Incoming Outgoing Transfers value 31.12.2019
£ £ £ £ £ £
Restricted
Church Life &
Mission 1,038,510 31,856 - - 107,950 1,178,316
Retired Ministers
-
Housing 853,121 19,070 (2,604) 79,254 948,841
Retired Ministers
Holiday 10,495 285 (8) - 893 11,665
Manse fund 5,034,011 882,845 (65,140) - 65,695 5,917,411
Total Restricted
Funds 6,936,137 934,056 (67,752) - 253,792 8,056,233
Total Funds 18,005,483 1,678,450 (889,865) - 1,617,129 20,411,197
10. Tangible Fixed Assets
Fixtures Office Computer
Audio & Equip- Equip- Motor
Visual Fittings ment ment Vehicle Property Total
Cost £ £ £ £ £ £ £
At 1 January 2020 4,093 25,998 5,561 17,704 23,842 7,290,305 7,367,503
Additions - 1,435 - - - - 1,435
- - - - -
Disposals (240,000) (240,000)
At 31 December 2020 4,093 27,433 5,561 17,704 23,842 7,050,305 7,128,938
Depreciation
At 1 January 2020 4,093 17,269 4,444 13,749 18,011 - 57,566
Charged during the
year - 1,171 279 1,534 2,799 - 5,783
At 31 December 2020 4,093 18,440 4,723 15,283 20,810 - 63,349
Net Book Value
At 31 December 2020 - 8,993 838 2,421 3,032 7,050,305 7,065,589
At 31 December 2019 - 8,729 1,117 3,955 5,831 7,290,305 7,309,937
----- End of picture text -----

There are no capital commitments at the year end.

At the year end, the Synod Manse Scheme had beneficial ownership of 27 properties valued at approximately £9.622million registered in the name of the URC (Eastern Province) Trust. Of this, 18 properties totalling £6.44million are included within note 10.

THE UNITED REFORMED CHURCH (EASTERN PROVINCE) TRUST

Notes to the Financial Statements

Year Ended 31 December 2020

11. Investments

Investment Funds Equities Bonds and Stock £ £ At 1 January 2020 662,772 10,619,697 Additions 112,500 3,462,967 Disposals (173,000) (3,380,645) Realised gain - (455,950) Unrealised gains on revaluation 27,849 534,395 At 31 December 2020 630,121 10,780,464 Historical cost at year end 569,310 4,799,949	Total £ 11,282,469 3,575,467 (3,553,645) (455,950) 562,244
	11,410,585
	5,369,259

The investments are invested within a number of Charity Investment Funds, managed by CCLA and Epworth.

12. Programme Related Investments At 1 January 2020 New amounts advanced Repayments received ( Interest charged At 31 December 2020	Loans Property £ £ 646,901 297,555 - - 130,469) - 4,157 - 520,589 297,555	Total £ 944,456 - (130,469 4,157
		818,144

By decision of the Resources Committee, the Synod is committed to loans, not yet made, totalling £80,000 (2019: £80,000). All loans are subject to the COIF rate of interest that would otherwise have been received.

The Synod has no contingent liability arising from any undertaking to guarantee the repayment of loans made by the General Assembly of the URC to congregations in the Synod.

In relation to the Residential property, no interest is charged on the initial value of the investment. A proportion of the costs of repair are met by the Trust during the period of investment but the benefit should arise on disposal of the properties when the Trust receives a proportion of the proceeds relating to the investment proportion of the total original cost.

13. Debtors Other debtors CME and lay training payments recoverable	2020 £ 679,277 1,335 680,612	2019 £ 111,727 1,335
		113,062

THE UNITED REFORMED CHURCH (EASTERN PROVINCE) TRUST

Notes to the Financial Statements

Year Ended 31 December 2020

14. Cash on Deposit, at Bank and in Hand Cash at bank and in hand Bank deposits held for local churches CCLA Charities Deposit Fund Barclays Bank current account Epworth Affirmative Deposit Fund CAF 60 Day Deposit Account Cambs and Counties 180 Day Deposit Petty cash 15. Creditors: Amounts falling due within one year Grants approved awaiting payment Receipts in advanced Accrued expenses Other creditors Ministry and mission fund Pension, PAYE and NIC	2020 £ 1,407,238 2,795,001 248,887 235,296 1,627,140 400,000 360,761 154 5,667,239 2020 £ 219,235 1,146 15,750 3,078,833 155,350 8,557 3,478,871	Restated 2019 £ 2,432,209 3,995,000 238,603 562,816 880,636 400,000 350,000 154
		6,427,209
		Restated 2019 £ 396,535 2,919 14,250 5,178,696 58,771 7,818
		5,658.989

Included within other creditors is an amount of £2,795,001 (2019: £3,995,000) held in a bank account on behalf of certain churches.

16. Creditors: Amounts falling after more than one year Grants approved awaiting payment Other creditors	2020 £ 13,961 211,285 225,246	2019 £ 6,947 -
		6,947

17. Operating Lease Commitments

The office used by the company is situated on land that is registered in the name of The United Reformed Church (Eastern Province) Trust and held on statutory trust in favour of Whittlesford United Reformed Church. The agreement term has lapsed however, the Trust continues to pay a sum of £1,020 per month to the Church for use of the building.

THE UNITED REFORMED CHURCH (EASTERN PROVINCE) TRUST

Notes to the Financial Statements

Year Ended 31 December 2020

18. Disposition of Funds as at 31 December 2020

The Church Life & Mission Fund has been created from the asset apportionments of former Trustee bodies and the sale of proceeds of redundant churches. Income only is used for grants and training support but the capital can be loaned to churches in accordance with the Synod Finance Policy. Included within these funds is Project Facelift which is used for the benefit of smaller churches.

In October 2005 the Synod Manse Policy was endorsed. A number of property sales were recognised and set aside as initial funding. The fund is designed to allow churches to release their interest in a property to the Synod’s control thereby allowing Synod to position manses where they are required and to ensure that the houses within the manse scheme are kept in a good state of repair.

The Retired Ministers’ Housing Fund is available to help in housing ministers in retirement.

The Retired Ministers’ Holiday Fund was established from the sale proceeds of the Synod caravan and is used to benefit ministers.

The Heritage Fund has been set up specifically to support those churches who have the responsibility of maintaining buildings which are listed on the National Register. Grants of up to 50% of the cost will be awarded up to a maximum of £25,000 providing churches can demonstrate that they have regularly maintained their properties up to a reasonable standard. The money to support such grants comes from part of the proceeds of sales of redundant Listed buildings.

The Pioneer Fund was approved by Synod in October 2008 with the sole purpose to support churches envisioned with a pioneer project costing in excess of £250,000. In March 2013, Synod meeting amended the normal minimum project cost to £100,000. The money in this fund comes from part of the proceeds of sales of redundant buildings which are not Listed.

The Pioneer St Neots Fund is a sub-fund of the work of the Pioneer Fund set aside to support a five year project in the St Neots area.

THE UNITED REFORMED CHURCH (EASTERN PROVINCE) TRUST

Notes to the Financial Statements

Year Ended 31 December 2020

18. Disposition of Funds as at 31 December 2020 (continued)

Fixed Assets Investments Programme Related Investments £ £ £ Unrestricted Synod Administration 12,997 1,295,091 90,051 Unrestricted Designated Church Life & Mission Income 1,092,165 7,321,833 389,753 Manse fund - 401,000 - Heritage - 656,956 - Pioneer LF - - - Pioneer - 132,795 60,034 Total Unrestricted Designated Funds 1,092,165 8,512,584 449,787 Total Unrestricted Funds 1,105,162 9,807,675 539,838 Restricted Funds held for Churches - - - Church Life & Mission Capital - 973,267 - Ret’d Ministers Housing - 597,385 256,590 Ret’d Ministers Holiday - 8,245 - Manse fund 5,960,427 24,013 21,716 Total Restricted Funds 5,960,427 1,602,910 278,306 TOTAL FUNDS 7,065,589 11,410,585 818,144	Debtors £ 1,430 631,980 - 35,768 - 4,978 672,726 674,156 - - - - 6,456 6,456 680,612	Bank and Cash Liabilities £ £ (23,198) (11,051) 1,092,087 (746,204) 42,395 200,713 (150,660) 98,776 (1,201) 1,138,252 - 2,572,223 (898,065) 2,549,025 (909,116) 2,795,001 (2,795,001) 158,346 - 99,470 - 2,971 - 62,426 - 3,118,214 (2,795,001) 5,667,239 (3,704,117)

THE UNITED REFORMED CHURCH (EASTERN PROVINCE) TRUST

Notes to the Financial Statements

Year Ended 31 December 2020

18. Disposition of Funds as at 31 December 2020 (continued)

----- Start of picture text -----
PRIOR YEAR Programme Restated Restated
Fixed Related Bank and Total
Assets Investments Investments Debtors Cash Liabilities 2019
£ £ £ £ £ £ £
Unrestricted
Synod
Administration 14,316 1,371,792 90,051 1,430 (2,488) (13,843) 1,461,258
Unrestricted Designated
Church Life &
Mission
Income 848,221 7,119,590 516,065 77,836 1,994,435 (1,380,715) 9,175,432
Manse fund 532,049 401,000 - - (489,654) - 443,395
- -
Heritage 627,721 22,163 268,101 (225,203) 692,782
Pioneer - 119,988 60,034 4,978 448,272 (51,175) 582,097
Total
Unrestricted
Designated
Funds 1,380,270 8,268,299 576,099 104,977 2,221,154 (1,657,093) 10,893,706
Total
Unrestricted
Funds 1,394,586 9,640,091 666,150 106,407 2,218,666 (1,670,936) 12,354,964
Restricted
Funds held for
Churches - - - - 3,995,000 (3,995,000) -
Church Life &
- - - -
Mission Capital 1,027,586 150,730 1,178,316
Ret’d Ministers
Housing
- - -
600,964 256,590 91,287 948,841
Ret’d Ministers
Holiday
- - - -
8,754 2,911 11,665
Manse fund 5,915,351 5,074 21,716 6,655 (31,385) - 5,917,411
Total
Restricted
Funds 5,915,351 1,642,378 278,306 6,455 4,208,543 (3,995,000 ) 8,056,233
TOTAL
FUNDS 7,309,937 11,282,469 944,456 113,062 6,427,209 ( 5,665,936 ) 20,411,197
----- End of picture text -----

THE UNITED REFORMED CHURCH (EASTERN PROVINCE) TRUST

Notes to the Financial Statements

Year Ended 31 December 2020

19. Pension Scheme

The Trust contributed £6,420 (2019: £6,420) to The United Reformed Church Final Salary Scheme, a pension scheme principally for lay staff which is administered by TPT Retirement Solutions Trust (formerly The Pensions Trust). The scheme is a defined benefit scheme but the Trust is unable to identify its share of the underlying assets and liabilities – each member in the scheme pays a common contribution rate – and accordingly it has accounted for its contributions as if it were a defined contribution scheme.

The most recent formal actuarial review of the scheme was at 30 September 2019, when the scheme had a surplus of £2,689,000. The assumptions underlying that valuation include:

Discount rate of 1.4% pa
Pensionable earnings growth of 2.5% for three years, 2.75% thereafter
Price inflation and pension increases of 2.55%
Retirement age (active members) of 65, with maximum commutation

The employer contribution rate is 26%.

A defined contribution scheme has also been opened for more recently appointed staff. Contributions for the year to this scheme were £21,834 (2019: £26,556).

20. Commitments to the URC Pension Scheme

The pension scheme for ministers run nationally as a central function of the United Reformed Church has been in deficit for some years despite several attempts to resolve the underfunding based on the valuation approach required of the scheme actuaries. After the most recent valuation, all Synods were requested to confirm an ongoing willingness to help reduce the underfunding. At the balance sheet date, no further commitments had been given.

21. Contingent Assets

At the year end, the property of five churches are held on Statutory Trusts in accordance with the United Reformed Church Acts of 1972, 1981 and 2000 by the Company following church closures. The proceeds of sale will revert to the Trust on sale in accordance with the Statutory Trusts on which the properties are held.

THE UNITED REFORMED CHURCH (EASTERN PROVINCE) TRUST

Notes to the Financial Statements

Year Ended 31 December 2020

22. Financial Instruments

Financial instruments measured at fair value in the financial statements are fixed asset listed investments totalling £11,410,585 (2019: £11,282,469).

23. Comparative Analysis by Fund

The key components from the prior year figures are analysed below by fund:-

Income Grants received, church levy and donations Rent and loan interest Other incoming resources Investments Total operating income Profits on sale of property Total Income Expenditure Raising funds Charitable activities Net Income for the year Net income before transfers Transfers between funds Realised gains/(losses) on investments Unrealised gains/(losses) on investments Net Movement in funds for the year Fund balances brought forward Fund balances carried forward	2019 Total Unrestricted Designated Restricted £ £ £ £ 138,447 130,000 8,447 - 112,196 - 30,415 81,781 91,337 155 91,182 - 549,465 45,352 438,843 65,270 891,445 175,507 568,887 147,051 787,005 - - 787,005 1,678,450 175,507 568,887 934,056 158,010 60,817 32,019 65,174 731,855 136,812 592,465 2,578 889,865 197,629 624,484 67,752 1,580 (22,122) (55,597) 79,299 788,585 (22,122) (55,597) 866,304 - 20,000 (20,000) - 788,585 (2,122) (75,597) 866,304 513 456 35 22 1,616,616 141,692 1,221,154 253,770 2,405,714 140,026 1,145,592 1,120,096 18,005,483 1,321,232 9,748,114 6,936,137 20,411,197 1,461,258 10,893,706 8,056,233	2019 Total Unrestricted Designated Restricted £ £ £ £ 138,447 130,000 8,447 - 112,196 - 30,415 81,781 91,337 155 91,182 - 549,465 45,352 438,843 65,270 891,445 175,507 568,887 147,051 787,005 - - 787,005 1,678,450 175,507 568,887 934,056 158,010 60,817 32,019 65,174 731,855 136,812 592,465 2,578 889,865 197,629 624,484 67,752 1,580 (22,122) (55,597) 79,299 788,585 (22,122) (55,597) 866,304 - 20,000 (20,000) - 788,585 (2,122) (75,597) 866,304 513 456 35 22 1,616,616 141,692 1,221,154 253,770 2,405,714 140,026 1,145,592 1,120,096 18,005,483 1,321,232 9,748,114 6,936,137 20,411,197 1,461,258 10,893,706 8,056,233
		8,056,233

24. Prior Year Adjustment

It has been identified that funds held on behalf of Churches are being held in the sole name of the Trust and therefore a prior year adjustment has been made to bring the bank balance and equal liability onto the balance sheet. There is no impact on the income and expenditure account. Cash at bank has increased by £3,995,000 and creditors increased by £3,995,000 which were previously stated at £2,432,209 and £1,663,989 respectively.

THE UNITED REFORMED CHURCH (EASTERN PROVINCE) TRUST

REPORT AND FINANCIAL STATEMENTS

THE UNITED REFORMED CHURCH (EASTERN PROVINCE) TRUST

Contents

THE UNITED REFORMED CHURCH (EASTERN PROVINCE) TRUST

Annual Report

Reference and Administrative Information

Registered Office

Directors and Trustees

Bankers

Legal Advisors

Auditors

Investment Manager

Synod Officers

THE UNITED REFORMED CHURCH (EASTERN PROVINCE) TRUST

Annual Report

Year Ended 31 December 2020

The Trustees

Aims and Objectives

Achieving delivery of the Trust’s aims and public benefit

THE UNITED REFORMED CHURCH (EASTERN PROVINCE) TRUST

Annual Report

Year Ended 31 December 2020

Pastoral Support

Educational and Mission Support

Technical Support

Financial Support

THE UNITED REFORMED CHURCH (EASTERN PROVINCE) TRUST

Annual Report

Year Ended 31 December 2020

Achievements and Performance

Mission Committee

Pastoral Committee

Resources Committee

THE UNITED REFORMED CHURCH (EASTERN PROVINCE) TRUST

Annual Report

Year Ended 31 December 2020

Financial Review

Financial Statements

Statement of Financial Activities

Balance Sheet

Fundraising Sources

THE UNITED REFORMED CHURCH (EASTERN PROVINCE) TRUST

Annual Report

Year Ended 31 December 2020

Investment Policy

Reserves Policy

Risk Management

THE UNITED REFORMED CHURCH (EASTERN PROVINCE) TRUST

Annual Report

Year Ended 31 December 2020

Future Plans

THE UNITED REFORMED CHURCH (EASTERN PROVINCE) TRUST

Annual Report

Year Ended 31 December 2020

Structure, Governance and Management

Appointment of New Trustees

Constitution of the Synod

THE UNITED REFORMED CHURCH (EASTERN PROVINCE) TRUST

Annual Report

Year Ended 31 December 2020

Organisational Structure

Related parties

Use of Volunteers

Key Management Personnel

Directors’ Responsibilities

THE UNITED REFORMED CHURCH (EASTERN PROVINCE) TRUST

Annual Report

Year Ended 31 December 2020

Andrew East Trustee

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF

THE UNITED REFORMED CHURCH (EASTERN PROVINCE) TRUST

Opinion

Basis of opinion

Conclusions relating to going concern

Other information

Opinions on other matters prescribed by the Companies Act 2006

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF

THE UNITED REFORMED CHURCH (EASTERN PROVINCE) TRUST