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2021-12-31-accounts

Company Number: 00101685 Charity Number: 248796

THE UNITED REFORMED CHURCH (EASTERN PROVINCE) TRUST

REPORT AND FINANCIAL STATEMENTS

YEAR ENDED 31 DECEMBER 2021

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

THE UNITED REFORMED CHURCH (EASTERN PROVINCE) TRUST

Contents

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 - 40

THE UNITED REFORMED CHURCH (EASTERN PROVINCE) TRUST

Annual Report

Year Ended 31 December 2021

Reference and Administrative Information

Registered Office

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

Directors and Trustees

Mr A East (Chair) Mr G Heathcote Mr K Hounsome Mr C Patten Revd Prof D Thompson 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 L Nevard Synod Clerk – Mr K Hounsome Synod Treasurer – Mr G Heathcote Finance Officer – Mr D Smith Resources Officer – Mrs P Davies-Brown Company Secretary – Mr D Smith (resigned 30 November 2021)

1

THE UNITED REFORMED CHURCH (EASTERN PROVINCE) TRUST

Annual Report

Year Ended 31 December 2021

The Trustees present their Annual Report and the audited financial statements of the charity for the year ended 31 December 2021. 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.

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:-

Mr A East Mr G Heathcote Mr K Hounsome Mr C Patten Revd Prof D Thompson 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.

2

THE UNITED REFORMED CHURCH (EASTERN PROVINCE) TRUST

Annual Report

Year Ended 31 December 2021

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.

3

THE UNITED REFORMED CHURCH (EASTERN PROVINCE) TRUST

Annual Report

Year Ended 31 December 2021

Achievements and Performance

Mission Committee

Pastoral Committee

Resources Committee

4

THE UNITED REFORMED CHURCH (EASTERN PROVINCE) TRUST

Annual Report

Year Ended 31 December 2021

Executive Committee

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.

During the year there has been a change of personnel within the finance function and as part of this process a detailed review of the balances and transactions was undertaken. As a result, there has been a number of prior year adjustments made, see note 24 for further details.

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 £805,538 (2020: £719,192), the majority of which is investment income.

This year the church property grants totalled £171,101 (2020: £(20,662)). 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 £2,186,580 (2020: £1,712,777) and it is important that these capital receipts continue to be invested wisely.

Balance Sheet

The above result led to an increase of £41k (2020: £1.736m) which has resulted in a combined fund balance of £22.845m (2020: £22.803m) at the year-end. An analysis of the movement of funds can be found in note 9.

Programme Related Investments total £755,765 (2020: £818,144) comprising 4 outstanding loans and 8 property investments (2020: 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

The 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. Also, until 2021, the Synod meeting authorised a ‘levy’ to be raised for Synod administration purposes from local churches together with their contributions to the denominational Ministry and Mission Fund. However, it has now been agreed that this ‘levy’ will be abandoned with effect from 2023 and that in respect of the contributions being made by churches in 2022 to cover it the overall amount to be sought from churches for 2023 will be reduced by £78,000, this being the total amount of the 2022 ‘levy’.

5

THE UNITED REFORMED CHURCH (EASTERN PROVINCE) TRUST

Annual Report

Year Ended 31 December 2021

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 a small mission support budget.

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 £965,379 (2020: £1,365,320), 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 2021, and reported to the Trust Directors. The main change is the risk that there may be a very large shortfall on pensions.

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.

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.

6

THE UNITED REFORMED CHURCH (EASTERN PROVINCE) TRUST

Annual Report

Year Ended 31 December 2021

Among the key risk controls used by the charity are:

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

In 2022, the Synod will 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. The Committee will also oversee the work associated with Pilots now being integrated into the denomination’s children’s and youth work. Together with the Resources Committee, it will take forward the work required to be an Eco Synod and for local congregations to develop as Eco Churches.

The Pastoral Committee will continue to support the pastoral work of the Moderator as appropriate and reviewing the Synod’s deployment strategy. It will also continue to oversee the process of declaring and filling vacancies, identifying and training candidates for ministry (both ordained and lay) and for promoting health and healing.

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. It will also participate in the review of the denomination’s pension schemes, recognising that all Synods have a part to play in ensuring the schemes meet the requirements of the Pensions Regulator, and it will oversee a review of the level of contributions sought from churches to the national Ministry and Mission Fund.

7

THE UNITED REFORMED CHURCH (EASTERN PROVINCE) TRUST

Annual Report

Year Ended 31 December 2021

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 thirteen 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:-

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:-

8

THE UNITED REFORMED CHURCH (EASTERN PROVINCE) TRUST

Annual Report

Year Ended 31 December 2021

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. Although the Clerk and Treasurer are entitled to claim a small honorarium both the current (2021) incumbents have declined this and offer their services in a purely voluntary capacity.

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:-

9

THE UNITED REFORMED CHURCH (EASTERN PROVINCE) TRUST

Annual Report

Year Ended 31 December 2021

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:-

Signed on behalf of the Trustees

Andrew East Trustee

Date: 26 October 2022

10

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 2021 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:

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:

11

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:

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:

12

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF

THE UNITED REFORMED CHURCH (EASTERN PROVINCE) TRUST

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.

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: 31 October 2022

13

THE UNITED REFORMED CHURCH (EASTERN PROVINCE) TRUST

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

Year Ended 31 December 2021

2020
(As
restated)
Total
Funds
Notes
£
Income
Donations and legacies
134,000
Grants received
2
Charitable activities:
77,767
Rent and loan interest
2
26,004
Other income
2
481,421
Investment
2
719,192
Total Operating Income
2
1,712,777
Transfer from local church
funds
4
2,431,969
Total Income
Expenditure on:
104,143
Raising funds
2
658,697
Charitable expenditure
2
762,840
Total Expenditure
2
(43,648)
Net Income/(Expenditure)
on Operating account
2
1,669,129
Net income/(expenditure)
for the year before
transfers
-
Transfers between funds
1,669,129
Net income/(expenditure)
for the year after
transfers
(494,874)
Realised (loss)/gain on
investments
8
562,245
Unrealised (loss)/gain on
investments
8
1,736,500
Net Movements in Funds
for the year
20,411,197
Fund Balances b/forward
9
656,000
Prior year adjustment
24
21,067,197
Fund Balances b/forward
as restated
22,803,697
Fund Balances c/forward		 2021
Total
Funds
Unrestricted
£
£
112,582
104,000
233,848
-
66,254
156
392,854
44,144
805,538
148,300
2,186,580
-
2,992,118
148,300
184,350
53,610
4,765,704
125,023
4,950,054
178,633
(4,144,516)
(30,333)
(1,957,936)
(30,333)
-
20,000
(1,957,936)
(10,333)
455,035
30,771
1,544,488
(420,379)
41,587
(399,941)
21,938,052
1,365,320
865,645
-
22,803,697
1,365,320
22,845,284
965,379		 Designated
£
8,582
168,805
66,098
285,361
528,846
2,183,620
2,712,466
27,487
4,640,681
4,668,168
(4,139,322)
(1,955,702)
(20,000)
(1,975,702)
394,791
1,644,400
63,489
12,401,420
656,000
13,057,420
13,120,909		 Restricted
£
-
65,043
-
63,349
128,392
2,960
131,352
103,253
-
103,253
25,139
28,099
-
28,099
29,473
320,467
378,039
8,171,312
209,645
8,380,957
8,758,996

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

14

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

As at 31 December 2021

2020
As restated)
Notes
£
Fixed Assets
7,366,589
Tangible assets
10
11,765,585
Investments
11
818,144
Programme related investments
12
19,950,318
Current Assets
670,905
Debtors
13
5,885,972
Cash and short term deposits
14
6,556,877
(3,478,252)
Creditors: Amounts falling due within one
year
15
3,078,625
Net Current Assets
23,028,943
Total Assets less Current Liabilities
(225,246)
Creditors: Amounts falling due after more
than one year
16
22,803,697
Total Assets
18
Funds:
Unrestricted funds:
1,365,320
General
13,057,420
Designated
14,422,740
Total unrestricted funds
8,380,957
Restricted funds
22,803,697
Total Funds
18		 2021
£
7,019,850
13,644,556
755,765		 2021
£
7,019,850
13,644,556
755,765

21,420,171
89,317
3,454,759
3,544,076
(1,978,534)
1,565,542		 89,317
3,454,759

22,985,713
(140,429)
22,845,284
965,379
13,120,909
14,086,288
8,758,996

22,845,284

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 26 October 22 and signed on their behalf by

15

THE UNITED REFORMED CHURCH (EASTERN PROVINCE) TRUST

Statement of Cash Flows

Year ended 31 December 2021

Notes
2021
£
Cash flow from operating activities:
Net cash provided/used in operating activities
A
(4,585,634)
Cash flows from investing activities:
Proceeds from sale of fixed assets
65,142
Dividends, interest and rents from investments
625,201
Purchase of fixed assets
(26,365)
Purchase of investments
(149,000)
Proceeds from sale of investments
1,575,563
Repayment of programme related loans
63,880
Net cash provided by/used in investing activities
2,154,421
Change in cash and cash equivalents in the
reporting period
(2,431,213)
Cash and cash equivalents at the beginning of the
reporting period
B
5,885,972
Cash and cash equivalents at the end of the
reporting period
B
3,454,759
Notes to the statement of cash flows
A)
Reconciliation of net income/expenditure to
net cash flow from operating activities
Net income for the reporting period (as per
the statement of financial activities)
41,587
Adjustments for:
Depreciation charges
6,538
(Gains)/losses on investments
(455,035)
Unrealised gains on investments
(1,544,488)
Dividends, interest and rents from investments
(625,201)
Loan interest
(1,501)
Donated assets
(1,003,000)
(Profit) on the sale of fixed assets
(1,584)
(Increase)/Decrease in debtors
581,588
(Decrease) in creditors
(1,584,538)
Net cash provided by operating activities
(4,585,634)
B)
Analysis of cash and cash equivalents
Cash at bank and in hand
3,454,759		 2020
£
(1,651,530)
486,973
555,031
(1,435)
(3,575,467)
3,514,722
130,469
1,110,293
(541,237)
6,427,209
5,885,972
1,736,500
5,783
494,874
(562,245)
(555,031)
(4,157)
-
(246,973)
(557,843)
(1,962,438)
(1,651,530)
5,885,972

16

THE UNITED REFORMED CHURCH (EASTERN PROVINCE) TRUST

Notes to the Financial Statements

Year Ended 31 December 2021

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. There are no material uncertainties about going concern. 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.

Consolidation

The company is the parent undertaking of a small group and as such is not required by the Companies Act 2006 to prepare consolidated financial statements. It has also taken advantage of the exemption under the SORP not to prepare consolidated financial statements on the grounds of materiality. These financial statements present information about the individual company only and not the group.

Going Concern

The financial statements have been prepared on a going concern basis. The Trustees have considered relevant information, including the annual budget and forecast future cash flows in making their assessment. The covid-19 pandemic and current economic environment has not had a significant impact on the charity’s operations although adaptations have been made to reflect changes in working practices. The Trustees 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 Trustees 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.

17

UNITED REFORMED CHURCH (EASTERN PROVINCE) TRUST

Notes to the Financial Statements

Year Ended 31 December 2021

1. Accounting Policies (continued)

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.

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:

18

THE UNITED REFORMED CHURCH (EASTERN PROVINCE) TRUST

Notes to the Financial Statements

Year Ended 31 December 2021

1. Accounting Policies (continued)

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.

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 £500 (increased from £50 in 2021 as agreed with auditors) are capitalised. The Trustees conduct an annual impairment review.

Freehold properties includes some burial grounds. Due to the nature of this land, they are included at £Nil value.

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.

Investments in subsidiary or participating interests are stated at cost less provision for impairment.

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.

19

THE UNITED REFORMED CHURCH (EASTERN PROVINCE) TRUST

Notes to the Financial Statements

Year Ended 31 December 2021

1. Accounting Policies (continued)

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.

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

20

THE UNITED REFORMED CHURCH (EASTERN PROVINCE) TRUST

Notes to the Financial Statements

Year Ended 31 December 2021

2. Analysis of Total Operating Income and Expenditure
2020
2021
Total
Total
Funds
Funds
Unrestricted
Designated
Restricted
£
Income from
Donations and legacies:
£
£
£
£
130,000
Local church contributions
104,000
104,000
-
-
-
Grants
5,500
-
5,500
-
4,000
Donations
3,082
-
3,082
-
134,000
112,582
104,000
8,582
-
Income from charitable activities:
Rent and loan interest
73,610
Rental income
232,347
-
167,304
65,043
4,157
Loan interest
1,501
-
1,501
-
77,767
233,848
-
168,805
65,043
Other income
26,004
Miscellaneous
66,254
156
66,098
-
Income from investments
306,687
Investment income – excl. interest
352,736
41,043
249,708
61,985
24,871
Interest
24,577
3,101
20,112
1,364
149,863
Rental income
15,542
-
15,542
-
481,421
392,854
44,144
285,361
63,349
719,192
Total Operating Income
805,538
148,300
528,846
128,392
Expenditure on raising funds
1,164
Legal and professional
5,208
-
5,208
-
32,240
Synod manse scheme
102,593
-
-
102,593
10,788
Leasing of premises
18,276
-
17,928
348
1,501
Investment manager charges
1,465
28
1,125
312
58,450
Shared indirect costs (note 3)
56,808
53,582
3,226
-
104,143
Total Cost of Generating Funds
184,350
53,610
27,487
103,253		 Analysis of Total Operating Income and Expenditure
2020
2021
Total
Total
Funds
Funds
Unrestricted
Designated
Restricted
£
Income from
Donations and legacies:
£
£
£
£
130,000
Local church contributions
104,000
104,000
-
-
-
Grants
5,500
-
5,500
-
4,000
Donations
3,082
-
3,082
-
134,000
112,582
104,000
8,582
-
Income from charitable activities:
Rent and loan interest
73,610
Rental income
232,347
-
167,304
65,043
4,157
Loan interest
1,501
-
1,501
-
77,767
233,848
-
168,805
65,043
Other income
26,004
Miscellaneous
66,254
156
66,098
-
Income from investments
306,687
Investment income – excl. interest
352,736
41,043
249,708
61,985
24,871
Interest
24,577
3,101
20,112
1,364
149,863
Rental income
15,542
-
15,542
-
481,421
392,854
44,144
285,361
63,349
719,192
Total Operating Income
805,538
148,300
528,846
128,392
Expenditure on raising funds
1,164
Legal and professional
5,208
-
5,208
-
32,240
Synod manse scheme
102,593
-
-
102,593
10,788
Leasing of premises
18,276
-
17,928
348
1,501
Investment manager charges
1,465
28
1,125
312
58,450
Shared indirect costs (note 3)
56,808
53,582
3,226
-
104,143
Total Cost of Generating Funds
184,350
53,610
27,487
103,253
-
102,593
348
312
-
103,253

21

THE UNITED REFORMED CHURCH (EASTERN PROVINCE) TRUST

Notes to the Financial Statements

Year Ended 31 December 2021

2. Analysis of Total Operating Income and Expenditure(Continued)
2020
2021
Total
Total
Funds
Funds
Unrestricted
Designated
Restricted
£
£
£
£
£
Expenditure on Charitable Activities
Ministry & Mission:-
330,213
Grants (note 5)
575,025
-
575,025
-
54,968
Pioneer development officer
42,019
-
42,019
-
-
Local leader salary
10,709
-
10,709
-
-
Pension contributions
3,676,967
-
3,676,967
-
3,435
Retired ministers housing society
-
-
-
-
39,156
Shared indirect costs (note 3)
36,295
17,860
18,435
-
427,772
4,341,015
17,860
4,323,155
-
Training:-
(2,000)
Ministers (note 5)
12,894
-
12,894
-
750
Students (note 5)
-
-
-
-
(60)
Lay training (note 5)
483
-
483
-
4,995
Synod organised events
-
-
-
-
52,262
Mission and development officer
50,494
-
50,494
-
58,373
Children and youth development
officer
58,128
-
58,128
-
39,156
Shared indirect costs (note 3)
36,295
17,860
18,435
-
153,476
158,294
17,860
140,434
-
Property:-
(41,953)
Church building grants (note 5)
151,757
-
151,757
-
18,150
Property facelift (note 5)
18,618
-
18,618
-
3,141
Quinquennial survey grants (note
5)
726
-
726
-
98,111
Shared indirect costs (note 3)
95,294
89,303
5,991
-
77,449
266,395
89,303
177,092
-
658,697
Total Charitable Expenditure
4,765,704
125,023
4,640,681
-
762,840
Total Operating Expenditure
4,950,054
178,633
4,668,168
103,253
(43,648)
Net Income/(Expenditure) on
Operating Account
(4,144,516)
(30,333)
(4,139,322)
25,139		 Analysis of Total Operating Income and Expenditure(Continued)
2020
2021
Total
Total
Funds
Funds
Unrestricted
Designated
Restricted
£
£
£
£
£
Expenditure on Charitable Activities
Ministry & Mission:-
330,213
Grants (note 5)
575,025
-
575,025
-
54,968
Pioneer development officer
42,019
-
42,019
-
-
Local leader salary
10,709
-
10,709
-
-
Pension contributions
3,676,967
-
3,676,967
-
3,435
Retired ministers housing society
-
-
-
-
39,156
Shared indirect costs (note 3)
36,295
17,860
18,435
-
427,772
4,341,015
17,860
4,323,155
-
Training:-
(2,000)
Ministers (note 5)
12,894
-
12,894
-
750
Students (note 5)
-
-
-
-
(60)
Lay training (note 5)
483
-
483
-
4,995
Synod organised events
-
-
-
-
52,262
Mission and development officer
50,494
-
50,494
-
58,373
Children and youth development
officer
58,128
-
58,128
-
39,156
Shared indirect costs (note 3)
36,295
17,860
18,435
-
153,476
158,294
17,860
140,434
-
Property:-
(41,953)
Church building grants (note 5)
151,757
-
151,757
-
18,150
Property facelift (note 5)
18,618
-
18,618
-
3,141
Quinquennial survey grants (note
5)
726
-
726
-
98,111
Shared indirect costs (note 3)
95,294
89,303
5,991
-
77,449
266,395
89,303
177,092
-
658,697
Total Charitable Expenditure
4,765,704
125,023
4,640,681
-
762,840
Total Operating Expenditure
4,950,054
178,633
4,668,168
103,253
(43,648)
Net Income/(Expenditure) on
Operating Account
(4,144,516)
(30,333)
(4,139,322)
25,139
25,139

22

THE UNITED REFORMED CHURCH (EASTERN PROVINCE) TRUST

Notes to the Financial Statements

Year Ended 31 December 2021

2020 Comparative figures

a) Analysis of Total Operating Income and Expenditure

Income from
Donations and legacies:
Local church contributions
Donations
Income from charitable activities:
Rent and loan interest
Rental income
Loan interest
Other income
Miscellaneous
Income from investments
Investment income – excl. interest
Interest
Rental income
Total Operating Income		 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		 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		 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		 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		 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		 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
Expenditure on raising funds
Legal and professional
Synod manse scheme
Leasing of premises
Investment manager charges
Shared indirect costs (note 3)
Total Cost of Generating Funds		 1,164
32,240
10,788
1,501
58,450
104,143		 450
-
-
20
54,793
55,263		 714
-
10,453
1,263
3,657
16,087		 -
32,240
335
218
-
32,793

23

THE UNITED REFORMED CHURCH (EASTERN PROVINCE) TRUST

Notes to the Financial Statements

Year Ended 31 December 2021

2020 Comparative figures

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

Expenditure on Charitable Activities
Ministry & Mission:-
Grants (note 5)
Pioneer development officer
Retired ministers housing society
(note 5)
Shared indirect costs (note 3)
Training:-
Ministers (note 5)
Students (note 5)
Lay training (note 5)
Synod organised events
Mission and development officer
Children and youth development
officer
Shared indirect costs (note 3)
Property:-
Church building grants (note 5)
Property facelift (note 5)
Quinquennial survey grants (note
5)
Shared indirect costs (note 3)
Total Charitable Expenditure		 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		 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		 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		 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		 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
Total Operating Expenditure
Net Income/(Expenditure) on
Operating Account		 762,840
(43,648)		 183,112
(21,498)		 543,500
(90,707)		 36,228
68,557

24

THE UNITED REFORMED CHURCH (EASTERN PROVINCE) TRUST

Notes to the Financial Statements

Year Ended 31 December 2020

3.
Indirect Costs
2020
Total
Funds
£
Premises Costs:-
12,240
Rent
-
Insurance
2,309
Gas and electricity
2,129
Cleaning
626
Property repairs
179
Water charges
17,483
Office Costs
2,301
Telephone, internet and website
3,843
Postage and stationery
2,984
Depreciation
5,733
Computer costs
371
Refreshments and office consumables
1,527
Equipment repairs
689
Insurance
1,732
Staff travel, subsistence and training
224
Staff events
(4)
Year book and communications
3,414
Photocopier lease and copy costs
1,684
Moderator expenses
464
Sundries
24,962
157,511
Employment costs
Synod Related Costs:-
15
Synod Council and general assembly
1,172
Synod treasurer and clerk costs
1,500
Honoraria
8,850
Audit and accountancy
3,903
Committee and office holder costs
19,477
Legal and professional
34,917
234,873
Total Indirect Costs		 2021
Total
Funds
Unrestricted
Designated
Restricted
£
£
£
£
11,220
11,220
-
-
2,837
2,837
-
-
1,028
1,028
-
-
2,469
2,469
-
-
586
586
-
-
164
164
-
-
18,304
18,304
-
-
2,850
2,850
-
-
2,487
2,487
-
-
3,436
3,067
369
-
7,133
7,133
-
-
282
282
-
-
-
-
-
-
1,468
1,468
-
-
1,365
1,365
-
-
451
451
-
-
883
883
-
-
3,235
3,235
-
-
1,974
-
1,974
-
2,629
315
2,314
-
28,193
23,536
4,657
-
153,622
115,971
37,651
-
3,357
-
3,357
-
1,258
1,258
-
-
1,500
1,500
-
-
3,506
3,506
-
-
2,958
2,930
28
-
11,994
11,600
394
-
24,573
20,794
3,779
-
224,692
178,605
46,087
-

25

THE UNITED REFORMED CHURCH (EASTERN PROVINCE) TRUST

Notes to the Financial Statements

Year Ended 31 December 2021

3. Indirect Costs (continued)

3.
Indirect Costs(continued)
Premises costs
Office costs
Synod related costs
Employment costs
Total Indirect Costs
%
%
Unrestr.
Desig.
Funds generated
30%
7%
Ministry & Mission
10%
40%
Training
10%
40%
Property
50%
13%
Total
100%
100%
2020 Comparative figures
3.
Indirect Costs		 Total
Unrestricted
Designated
Restricted
£
£
£
£
18,304
18,304
-
-
28,193
23,536
4,657
-
24,573
20,794
3,779
-
153,622
115,971
37,651
-
224,692
178,605
46,087
-
Total
Unrestricted
Designated
Restricted
£
£
£
£
56,808
53,582
3,226
-
36,295
17,860
18,435
-
36,295
17,860
18,435
-
95,294
89,303
5,991
-
224,692
178,605
46,087
-
Premises Costs:-
Rent
Insurance
Gas and electricity
Cleaning
Property repairs
Water charges
Office Costs
Telephone, internet and website
Postage and stationery
Depreciation
Computer costs
Refreshments and office consumables
Equipment repairs
Insurance
Staff travel, subsistence and training
Staff events
Year book and communications
Photocopier lease and copy costs
Moderator expenses
Sundries
Employment 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
-

2020 Comparative figures

3. Indirect Costs

26

THE UNITED REFORMED CHURCH (EASTERN PROVINCE) TRUST

Notes to the Financial Statements

Year Ended 31 December 2021

2020 Comparative figures

Synod Related Costs:-
Synod Council and general assembly
Synod treasurer and clerk costs
Honoraria
Audit and accountancy
Committee and office holder costs
Legal and professional
Total Indirect Costs
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
4.
Proceeds on Sale of Property
2020 (As
restated)
Total
Funds
£
1,712,777
Proceeds arising from church
closures/disposals
2020 Comparative figures		 Synod Related Costs:-
Synod Council and general assembly
Synod treasurer and clerk costs
Honoraria
Audit and accountancy
Committee and office holder costs
Legal and professional
Total Indirect Costs		 Synod Related Costs:-
Synod Council and general assembly
Synod treasurer and clerk costs
Honoraria
Audit and accountancy
Committee and office holder costs
Legal and professional
Total Indirect Costs		 15
1,172
1,500
8,850
3,903
19,477
34,917
234,873		 15
1,172
1,500
8,850
3,903
19,477
34,917
234,873		 15
1,172
1,500
8,850
1,656
7,853
21,046
182,642		 15
1,172
1,500
8,850
1,656
7,853
21,046
182,642		 -
-
-
-
2,247
11,624
13,871
52,231		 -
-
-
-
-
-
-
-
Premises costs
Office costs
Synod related costs
Employment costs
Total Indirect Costs		 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
-
%
%
Unrestr.
Desig.
Funds generated
30
07
Ministry & Mission
10
40
Training
10
40
Property
50
13
Total
100
100
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
-
4.
Proceeds on Sale of Property
2020
(As restated)
Total
Funds
Unrestricted
Designated
Restricted
£
£
£
£
Proceeds arising from church
closures/disposals
1,712,777
-
1,400,153
312,624

27

THE UNITED REFORMED CHURCH (EASTERN PROVINCE) TRUST

Notes to the Financial Statements

Year Ended 31 December 2021

5. Grants

The following grants have been charged during the year:-

Institutions Institutions Individuals
Number Amount Number Amount
Mission: £ £
Youth and Children’s work 8,408
Youth work grants 5 74,375
Churches Together in Suffolk -
Churches Together in Norfolk and
Waveney 1 406
University of East Anglia 1 10,225
CTEEL 1 1,402
Resource Sharing 1 75,000
Sundry mission grants 11 108,977
Sundry grants 14 161,308
Ministry and mission fund 1 129,340
Berechurch Road House for Mission 1 3,360
Cambridge Ecumenical Council 1 2,224
575,025 0
Ministry:
Moderator’s benevolent fund 1 (1,400)
Retired Ministers’ Housing Society -
Sundry minister grants 2 6,642 -
6,642 (1,400)
Training:
Continual Minister Education 16 2,446
Minister spring school 1 5,206
Lay training - 19 483
5,206 2,929
Property:
Local churches 9 151,757
Project facelift 1 18,618
Quinquennial survey grants 1 726
171,101
Total Grants Charged 757,974 1,529

28

THE UNITED REFORMED CHURCH (EASTERN PROVINCE) TRUST

Notes to the Financial Statements

Year Ended 31 December 2021

2020 Comparative figures

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

6. Payments to Trustees and related party transactions

Reimbursed expenses were paid to three Trustees of the Synod in aggregate of £2,077 (2020: £2,766). Synod recognises an honoraria of £1,500 (2020: £1,500) for the Treasurer in respect of their role within the Synod. During the year the charity acquired services of £8,012 from Lewis Patten Chartered Architects, a company in which Mr C Patten is a director and owner. No other remuneration or expenses were paid to the Trustees or members of the Resources Committee, other than the reimbursement of travel expenses.

29

THE UNITED REFORMED CHURCH (EASTERN PROVINCE) TRUST

Notes to the Financial Statements

Year Ended 31 December 2021

7.
Employment Emoluments
Wages and salaries
Employers national insurance
Pension costs
The average number of employees was		 2021
£
200,333
19,563
41,191
261,087
8		 2020
£
214,775
19,597
33,774
268,146
6

No employee received more than £60,000 (2020 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
Realised gains/(losses) on investments sold
Unrealised gain on fair value movement of investments for the
year
Net Gain/(Loss) on Investments for the Year		 2021
2020
£
£
455,035
(494,874)
1,544,488
562,245
1,999,523
67,371		 2021
2020
£
£
455,035
(494,874)
1,544,488
562,245
1,999,523
67,371
67,371

9. Movement in Funds

1.1.2021
(As
restated)
Unrestricted
£
Synod
administration
1,365,320
Unrestricted Designated
Church Life &
Mission
10,136,614
Heritage Fund
742,777
Manse Fund
744,395
Pioneer Fund
1,433,634
Total Designated
Funds
13,057,420
Total Unrestricted
Funds
14,422,740		 Incoming
Outgoing
Transfers
Change in
investment
value
£
£
£
£
148,300
(178,633)
20,000
(389,608)
1,589,773
(4,371,202)
(20,000)
1,909,874
1,113,455
(254,806)
-
89,924
-
-
-
-
9,238
(42,160)
-
39,393
2,712,466
(4,668,168)
(20,000)
2,039,191
2,860,766
(4,846,801)
-
1,649,583		 31.12.2021
£
965,379
9,245,059
1,691,350
744,395
1,440,105		 31.12.2021
£
965,379
9,245,059
1,691,350
744,395
1,440,105

9,245,059
1,691,350
744,395
1,440,105

13,120,909
14,086,288

30

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
Prior Year (as restated)		 1.1.2021
£
1,131,613
953,445
11,216
6,284,683
8,380,957
22,803,697		 Incoming
£
30,555
18,849
262
81,686
131,352
2,992,118
(		 Outgoing
Transfers
Change in
investment
value
£
£
£
-
-
209,782
(11)
-
80,729
(3)
-
1,098
(103,239)
-
58,331
(103,253)
-
349,940
4,950,054)
-
1,999,523		 31.12.2021
£
1,371,950
1,053,012
12,573
6,321,461
8,758,996
22,845,284
1.1.2020
(As
restated)
Unrestricted
£
Synod
administration
1,461,258
Unrestricted Designated
Church Life &
Mission
9,530,432
Heritage Fund
692,782
Manse Fund
744,395
Pioneer Fund
582,097
Total Designated
Funds
11,549,706
Total Unrestricted
Funds
13,010,964		 Incoming
£
161,614
988,414
20,812
-
843,720
1,852,946
2,014,560		 Outgoing
Transfers
Change in
investment
value
£
£
£
(183,112)
20,000
(94,440)
(538,459)
(20,000)
176,227
(51)
-
29,234
-
-
-
(4,990)
-
12,807
(543,500)
(20,000)
218,268
(726,612)
-
123,828		 31.12.2020
(As
restated)
£
1,365,320
10,136,614
742,777
744,395
1,433,634
13,057,420
14,422,740

31

THE UNITED REFORMED CHURCH (EASTERN PROVINCE) TRUST

Notes to the Financial Statements

Year Ended 31 December 2021

9. Movement on Funds (continued)

Prior Year

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
21,067,197		 Incoming
Outgoing
Transfers
Change in
investment
value
£
£
£
£
20,507
-
-
(67,210)
15,608
(3,442)
-
(7,562)
178
(2)
-
(625)
381,116
(32,784)
-
18,940
417,409
(36,228)
-
(56,457)
2,431,969
(762,840)
-
67,371		 Incoming
Outgoing
Transfers
Change in
investment
value
£
£
£
£
20,507
-
-
(67,210)
15,608
(3,442)
-
(7,562)
178
(2)
-
(625)
381,116
(32,784)
-
18,940
417,409
(36,228)
-
(56,457)
2,431,969
(762,840)
-
67,371		 Incoming
Outgoing
Transfers
Change in
investment
value
£
£
£
£
20,507
-
-
(67,210)
15,608
(3,442)
-
(7,562)
178
(2)
-
(625)
381,116
(32,784)
-
18,940
417,409
(36,228)
-
(56,457)
2,431,969
(762,840)
-
67,371		 31.12.2020
£
1,131,613
953,445
11,216
6,284,683
8,380,957
22,803,697		 31.12.2020
£
1,131,613
953,445
11,216
6,284,683
8,380,957
22,803,697
Tangible Fixed Assets
Audio
Visual
Fixtures
&
Fittings
Office
Equip-
ment
Computer
Equip-
ment
Cost
£
£
£
£
As at 1 January 2021
(As restated)
4,093
27,433
5,561
17,704
Additions
2,869
-
-
3,451
Disposals
(1,402)
(9,675)
(1,019)
(4,784)
Transfer to investments
-
-
-
-
At 31 December 2021
5,560
17,758
4,542
16,374
Depreciation
At 1 January 2021
4,093
18,440
4,723
15,283
Elimination
(1,402)
(9,676)
(1,019)
(4,784)
Charged during the
year
214
1,152
279
1,791
At 31 December 2021
2,905
9,916
3,983
12,292
Net Book Value
At 31 December 2021
2,655
7,842
559
4,082
At 31 December 2020
(As restated)
-
8,993
838
2,421
There are no capital commitments at the year end.		 Motor
Vehicle
£
23,842
20,045
(23,842)
-
20,045
20,810
(22,909)
3,102
1,003
19,042
3,032		 Property
£
7,351,305
-
(63,188)
(302,447)
6,985,670
-
-
-
-
6,985,670
7,351,305		 Total
£
7,429,938
26,365
(103,917)
(302,447)
7,049,949
63,349
(39,788)
6,538
30,099
7,019,850
7,366,589

10. Tangible Fixed Assets

At the year end, the Synod Manse Scheme had beneficial ownership of 22 properties valued at approximately £7.8 million registered in the name of the URC (Eastern Province) Trust. Of this, 17 properties totalling £6.5 million are included within note 10 and 11.

32

THE UNITED REFORMED CHURCH (EASTERN PROVINCE) TRUST

Notes to the Financial Statements

Year Ended 31 December 2021

11. Investments

Investment
Funds
Equities
Properties
Bonds
and
Stock
£
£
£
At 1 January 2021 (as restated)
355,000
630,121
10,780,464
Additions
1,003,000
103,000
46,000
Disposals
(110,349)
(904,535)
Transfer from fixed assets
302,447
-
-
Realised gains
-
(4,651)
(556,028)
Unrealised gains/(losses) on
revaluation
358,553
(36,081)
1,677,615
At 31 December 2021
2,019,000
582,040
11,043,516
Historical cost at year end
1,660,447
561,960
7,013,281		 Total
£
11,765,585
1,152,000
(1,014,884)
302,447
(560,679)
2,000,087
13,644,556
9,235,688

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

Subsidiary undertakings and participating interests

The following were subsidiary undertakings or participating interests of the charity which holds ordinary shares in each entity:

Name Company Registered office Holding Principal activity
number %
The United Reformed 07301264 Eastern Synod Office 100% Dormant
Church (Eastern Province 36 Duxford Road
Design & Build Limited Whittlesford
CB22 4ND
Lewis Gibson Limited 04091574 Downing Place 33.3% Letting of property
United Reformed
Church, Downing
Street, Cambridge,
CB2 3EL

The financial results of the subsidiaries or participating interests for the year were:

Name
The United Reformed Church
(Eastern Province) Design &
Build Limited
Lewis Gibson Limited		 Income
Expenditure
£
£
-
-
191,178
(191,094)		 Profit/
(Loss)
Capital and
Reserves
£
£
-
1
84
(180,640)

33

THE UNITED REFORMED CHURCH (EASTERN PROVINCE) TRUST

Notes to the Financial Statements

Year Ended 31 December 2021

12.
Programme Related Investments
At 1 January 2021
Repayments received
Interest charged
At 31 December 2021		 Loans
Property
£
£
520,589
297,555
(63,880)
-
1,501
-
458,210
297,555		 Total
£
818,144
(63,880)
1,501
755,765

By decision of the Resources Committee, the Synod is committed to loans, not yet made, totalling £80,000 (2020: £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
Prepayments
Other debtors
CME and lay training payments recoverable
14.
Cash on Deposit, 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
Moderator’s Benevolent Fund
Petty cash		 2021
£
1,347
87,970
-
89,317
2021
£
1,011,366
285,032
1,036,795
402,244
400,000
314,425
4,732
165
3,454,759		 2020 (As
restated)
£
-
669,570
1,335
670,905
2020
(As
restated)
£
2,795,001
274,637
235,296
1,627,140
400,000
553,744
-
154
5,885,972

34

THE UNITED REFORMED CHURCH (EASTERN PROVINCE) TRUST

Notes to the Financial Statements

Year Ended 31 December 2021

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		 2021
£
330,964
-
68,384
1,444,170
127,775
7,241
1,978,534		 2020 (As
restated)
£
219,235
1,146
15,750
3,078,214
155,350
8,557
3,478,252

Included within other creditors is an amount of £1,230,100 (2020: £3,013,734) held in bank accounts on behalf of certain churches.

16.

Creditors: Amounts falling after more than one year
Grants approved awaiting payment
Other creditors		 2021
£
49,991
90,438
140,429		 2020
£
13,961
211,285
225,246

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.

Other operating lease commitments within one year £2,517 and between 2 to 5 years £629.

1 8. Disposition of Funds as at 31 December 2021

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.

35

THE UNITED REFORMED CHURCH (EASTERN PROVINCE) TRUST

Notes to the Financial Statements

Year Ended 31 December 2021

18. Disposition of Funds as at 31 December 2021 (continued)

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.

Fixed
Assets
Investments
Programme
Related
Investments
Debtors
£
£
£
£
Unrestricted
Synod
Administration
12,845
1,270,343
-
1,347
Unrestricted Designated
Church Life &
Mission
Income
197,604
9,370,295
539,197
65,700
Manse fund
301,000
-
-
-
Heritage
-
746,879
-
22,070
Pioneer Fund
380,000
172,188
-
-
Total
Unrestricted
Designated
Funds
878,604
10,289,362
539,197
87,770

Total
Unrestricted
Funds
891,449
11,559,705
539,197
89,117
Restricted
Funds held for
Churches
-
-
-
Church Life &
Mission
Capital
-
959,665
-
-
Ret’d Ministers
Housing
-
633,792
216,568
-
Ret’d Ministers
Holiday
-
8,056
-
-
Manse fund
6,128,401
483,338
-
200
Total
Restricted
Funds
6,128,401
2,084,851
216,568
200
TOTAL
FUNDS
7,019,850
13,644,556
755,765
89,317
36		 Bank and
Cash
Liabilities
£
£
(213,192)
(105,964)
(393,409)
(534,328)
443,395
-
1,166,944
(244,543)
889,150
(1,233)
2,106,080
(780,104)
1,892,888
(886,068)
1,230,099
(1,230,099)
412,285
-
202,651
1
4,517
-
(287,681)
(2,797)
1,561,871
(1,232,895)
3,454,759
(2,118,963)		 Total
2021
£
965,379
9,245,059
744,395
1,691,350
1,440,105		 Total
2021
£
965,379
9,245,059
744,395
1,691,350
1,440,105		 Total
2021
£
965,379
13,120,909
14,086,288
-
1,371,950
1,053,012
12,573
6,321,461
8,758,996
22,845,284		 -
1,371,950
1,053,012
12,573
6,321,461
8,758,996

THE UNITED REFORMED CHURCH (EASTERN PROVINCE) TRUST

Notes to the Financial Statements

Year Ended 31 December 2021

18. Disposition of Funds as at 31 December 2021 (continued)

PRIOR YEAR
(as restated)
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
7,676,833
389,753
Manse fund
301,000
401,000
-
Heritage
-
656,956
-
Pioneer Fund
-
132,795
60,034
Total
Unrestricted
Designated
Funds
1,393,165
8,867,584
449,787
Total
Unrestricted
Funds
1,406,162
10,162,675
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
7,366,589
11,765,585
818,144		 Debtors
£
1,430
622,273
-
35,768
4,978
663,019
664,449
-
-
-
-
6,456
6,456
670,905		 Bank and
Cash
Liabilities
£
£
(23,198)
(11,051)
1,092,087
(736,497)
42,395
-
200,713
(150,660)
1,237,028
(1.201)
2,572,223
(888,358)
2,549,025
(899,409)
2,804,089
(2,804,089)
158,346
-
99,470
-
2,971
-
272,071
-
3,336,947
(2,804,089)
5,885,972
_(_3,703,498)		 Total
2020
£
1,365,320
10,136,614
744,395
742,777
1,433,634
13,057,420
14,422,740
-
1,131,613
953,445
11,216
6,284,683
8,380,957
22,803,697

37

THE UNITED REFORMED CHURCH (EASTERN PROVINCE) TRUST

Notes to the Financial Statements

Year Ended 31 December 2021

19. Pension Scheme

The Trust contributed £13,208 (2020: £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:

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 £27,983 (2020: £21,834).

20. 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.

21. Contingent Liabilities

The Trust has a mortgage charge over freehold land which is held in trust under the URC Acts and therefore does not appear in the balance sheet of the Trust. The loan was advanced to Lewis Gibson Limited, a company in which the Trust holds one third of the share capital, in connection with construction on the land. Loan repayments are made by Lewis Gibson Limited and there is a charge in place between the lender and Lewis Gibson Limited. In the event that Lewis Gibson Limited were to default on the loan and its security was insufficient then the Trust security could be called upon. The balance outstanding on the loan in the financial statements of Lewis Gibson Limited at 31 December 2021 was £373,626 (2020: £426,440).

38

THE UNITED REFORMED CHURCH (EASTERN PROVINCE) TRUST

Notes to the Financial Statements

Year Ended 31 December 2021

22. Financial Instruments

Financial instruments measured at fair value in the financial statements are fixed asset investments totalling £13,644,556 (2020: £11,765,585).

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
Transfer from local church funds
Total Income
Expenditure
Raising funds
Charitable activities
Total expenditure
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
(as restated)
Fund balances carried forward		 2020
(As restated)
Total
Unrestricted
Designated
Restricted
£
£
£
£
134,000
131,201
2,799
-
77,767
-
23,209
54,558
26,004
-
26,004
-
481,421
30,413
400,781
50,227
719,192
161,614
452,793
104,785
1,712,777
-
1,400,153
312,624
2,431,969
161,614
1,852,946
417,409
104,143
55,263
16,087
32,793
658,697
127,849
527,413
3,435
762,840
183,112
543,500
36,228
1,669,129
(21,498)
1,309,446
381,181
1,669,129
(21,498)
1,309,446
381,181
-
20,000
(20,000)
-
(494,874)
(144,498)
(211,972)
(138,404)
562,245
50,058
430,240
81,947
1,736,500
(95,938)
1,507,714
324,724
21,067,197
1,461,258
11,549,706
8,056,233
22,803,697
1,365,320
13,057,420
8,380,957		 2020
(As restated)
Total
Unrestricted
Designated
Restricted
£
£
£
£
134,000
131,201
2,799
-
77,767
-
23,209
54,558
26,004
-
26,004
-
481,421
30,413
400,781
50,227
719,192
161,614
452,793
104,785
1,712,777
-
1,400,153
312,624
2,431,969
161,614
1,852,946
417,409
104,143
55,263
16,087
32,793
658,697
127,849
527,413
3,435
762,840
183,112
543,500
36,228
1,669,129
(21,498)
1,309,446
381,181
1,669,129
(21,498)
1,309,446
381,181
-
20,000
(20,000)
-
(494,874)
(144,498)
(211,972)
(138,404)
562,245
50,058
430,240
81,947
1,736,500
(95,938)
1,507,714
324,724
21,067,197
1,461,258
11,549,706
8,056,233
22,803,697
1,365,320
13,057,420
8,380,957
8,380,957

39

THE UNITED REFORMED CHURCH (EASTERN PROVINCE) TRUST

Notes to the Financial Statements

Year Ended 31 December 2021

24. Prior Year Adjustment

The basis of inclusion of assets in the financial statements which are in use by the local churches is underpinned by the legislation of the URC Acts. During the year there has been a change in personnel and triggers which have led to a complete review of the properties and balances with local churches and the Trust.

As a result a number of adjustments have been identified where assets should have been recognised in the financial statements of the Trust:

Increase in fixed assets functional properties of £301,000 and brought forward reserves having been purchased by the Trust as a replacement Manse for a church under the Synod Manse Scheme

Increase in fixed assets investments and brought forward reserves of £335,000 for a property where the church has previously closed and the asset, which is being let, becomes the property of the Trust under the URC Acts.

Increase in transfers from local church funds and reduction of creditors of £209,645 in respect of funds received in the prior year which had been incorrectly treated as still belonging to the local church.

Increase in bank and creditors of £218,733 in respect of cash balances held on behalf of local churches where they have not been held separately from the Trust’s own funds.

The SOFA income has increased by £209,645 and the net movement in funds for 2020 has increased by £209,645 which were previously stated at £2,222,324 and £1,526,855 respectively.

On the charity Balance Sheet Tangible assets have increased by £301,000, Investments have increased by £355,000, Debtors have increased by £9,707 and Cash at bank has increased by £218,733. These were previously stated at £7,065,589, £11,410,585, £680,612 and £5,667,239 respectively.

40