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2023-12-31-accounts

ST. STEPHEN ECCLESIASTICAL CHARITY

Charity No.: 251464

TRUSTEES REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

CONTENTS

CONTENTS
PAGE
Reference and Administrative Details 2 - 3
Report of the Trustees 4 - 9
Independent Examiner’s Report 10
Statement of Financial Activities 11
Balance Sheet 12
Notes to the Financial Statements 13 - 15

Page 1

ST STEPHEN ECCLESIASTICAL CHARITY

REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 DECEMBER 2023

Charity Registration Number: 251464

Trustees and Clerk

The trustees who served the charity during the year were as:

Ex Officio: Rev’d Kat Campion-Spall Rector of Harbourside Benefice

Nominated: Mr R. Williams Parochial Church Council of the Ecclesiastical Parish of St Stephen with St James and St John the Baptist Bristol

Mr. P.J. Marshall Parochial Church Council of the Ecclesiastical Parish of St Stephen with St James and St John the Baptist Bristol

Mrs C. Duckworth The Society of Merchant Venturers of the City of Bristol

Mr. I Wilkinson* The Antient Society of St Stephen’s Ringers.

Co-opted: Mr. J Ellis Chairman

Miss M Marshall*

Vacancy

Clerk Mrs A Maddox

*Appointed November 2023

Correspondence Address

Charities Office 1 All Saints Court

Bristol

BS1 1JN

Page 2

Other Information

Independent Examiner Joshua N Kingston, BSc ACA Burton Sweet Limited Chartered Accountants The Clock Tower 5 Farleigh Court Old Weston Road Flax Bourton Bristol BS48 1UR Bankers National Westminster Bank Plc Bristol City Centre 45/49 Broadmead Bristol BS1 3EU Investment Managers J M Finn and Co. Ltd 22/24 Queen Square Bristol BS1 4ND Rathbone Investment Management Ltd 10 Queen Square Bristol BS1 4NT

Page 3

Trustees Report for the Year Ended 31 December 2023

The Trustees present their annual report and financial statements for the year ended 31 December 2023. The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity’s governing documentation, applicable law and the Statement of Recommended Practice-Accounting and Reporting by Charities (The Charities SORP (FRS102))

Objects and Activities

Objects

The object of the Charity is to further the religious and other charitable works of the Church of England in the parish, being the Ecclesiastical Parish of St Stephen with St James and St John the Baptist, Bristol.

Objectives

The main objectives of the Trustees in 2023 were to manage what effect the present financial situation would mean for the charity, and to act accordingly having sought the advice of their investment advisers to stabilise the investment capital.

Strategies for Achieving Objectives and Public Benefit

The value of our two portfolios increased slightly during the year albeit their performance over the year was below benchmark. Trustees at their April 2024 meeting will consider how best to address this.

However, the Charity does continue to maintain a reasonable level of investment income which enables it to meet its objects having regard to the Charity Commission’s 'guidance on public benefit’, in particular the support given to St Stephen’s Church. Their principal building activities are noted in the next section. The Trustees continue to investigate suitable additional recipients of any surplus income. We are also in discussion with two other similar charities in Bristol City Diocese about a possible merger.

Page 4

Achievements and Performance

Review of Activities

During the year St Stephen’s (‘the church’) has been reopened after a substantial redecoration project which shut the church for seven months. The Parish is now a year into its merger with the Parish of Holy Trinity Hotwells and is re-named the Harbourside Benefice widening further the geographical area in which the Charity provides support.

Following the refurbishment of St Stephens (funded by the Antient Society of St Stephens Ringers) other areas were highlighted for further work. The kitchen area and also carpeting and stonework around the Altar. This year we were able to part fund both these projects (in partnership with the Antient Society of St Stephens) which was delivered successfully for the church.

During 2023 previous Chairman Ryan Densham stood down at the November meeting after many years in the role. The health of the charity today in large part is down to his longevity and tireless support of St Stephen Ecclesiastical charity. All trustees thank him for his many years of service. Mr. J.M. Ellis was voted in as the new Chairman.

We welcome two new trustees who joined during the year, Mr. I Wilkinson and Miss M. Marshall. We currently have one vacancy for a co-opted trustee.

Financial Review

The Statement of Financial Activities (SOFA) is set out on page 11 of the Financial Statements and reflects the total income which increased by 3% to £32,843 (2022: £31,648). The monthly grant payable by the charity to Saint Stephen's Church remained at £24,000 for the year (2022: £24,000). Additional grants were made to the church of £23,689 primarily for floor polishing and carpets (2022: £2,486). Legal costs of £2,837 (2022: nil) were incurred as initial spend for the possible merger with other similar charities.

The value of the Charity’s investments increased slightly during the year to £955,372 (2022: £952,865)

Page 5

Investment Policy and Performance

During the year, the Trustees continued their review of the performances of the investment managers. The trustees were a little disappointed in the performance of one of the investments and are monitoring this. The Trustees decided to retain the two portfolios of investments held separately, so their performances are also reported on separately.

i) The Charity’s main investment portfolio

The Trustees have set a policy and agreed it with the Investment Managers, that the endowment should be invested so as to achieve this charity’s own investment objectives of long-term capital growth with a reasonable level of income and with a medium level of risk. The Trustees review this strategy annually.

The Investment Managers are authorised to act on a discretionary basis and are paid a fee based on a percentage of the market value of the investments at the end of each quarter. The percentage declines as the value of the investments increases. The fee charged for the year was £5,971 (2022: £6,081) including VAT. The Trustees have agreed the basis of a bench mark with the Investment Managers which is the recognised benchmark for many charities, the MCSI PIMFA Balanced Total Return Index, formerly called the FTSE WMA Balanced Index.. However, the Trustees are aware that achieving this benchmark may be difficult because of the requirement for a higher level of income than recognised by this benchmark yet the performance outperformed the benchmark.

The investment performance for 2023 of this charity was across the year +4.9% (2022: -1.7%). This compares with the benchmark performance for the year of 10.1% (2022: - 8.1%).

ii) The second investment portfolio

The Trustees have agreed the basis of a Benchmark with the Investment Managers, being the same Benchmark as used in the other investment portfolio, namely the MCSI PIMFA Balanced Total Return Index.

The investment performance of this second portfolio for 2023 was +1.4% (2022: - 9.4%). This compares with the benchmark performance for the year of +10.1% (2022: - 8.1%).

The Investment Manager is authorised to act on a discretionary basis and are paid a fee on a percentage of the market value of the investments at the end of each quarter. The fee charged for the year was £2,720 (2022: £3,408) including VAT.

Page 6

Reserves Policy

The routine expenditure of the Charity, other than investment manager fees charged to endowment, has been determined to be small, comprising primarily the monthly grant of £2,000 to St. Stephen’s Church. Target reserves are deemed to be equivalent to one year’s payment of the grant i.e. £24,000. The combined total of unrestricted general reserves at 31 December 2023 was £48,464 (2022: £68,885). Routine spend during 2024 is forecast much as this year (or else, c£40,000) with little ad hoc spending forecast. Trustees are content with this reserve value being slightly above anticipated spend during 2024.

Risk Management

The Trustees annually review the issues the Charity faces. The Trustees acknowledge the major risk this charity has is the volatility of the international stock markets. As far as possible this has been ameliorated by agreeing an investment policy and the appointment of investment managers.

Plans for the Future

The Trustees ’objective for the future is to try and maintain the level of investment income to enable them to fulfil the objects of the Charity as set out in the Charity Commission Scheme. We are also in discussions with two other charities, with very similar objectives, to merge with St Stephen Ecclesiastical Charity. This will give us further funds to distribute.

Structure Governance and Management Governing Document

A scheme of the Commissioner for this Charity was agreed and became effective by an order dated 16 May 2005. The name of this charity was changed to St Stephen Ecclesiastical Charity and is a registered charity under Charity Commission Scheme number 251464.

Trustees

The Trust Deed provides for a maximum of eight Trustees; one ex-officio Trustee, four nominated Trustees and three co-opted Trustees who are appointed for a four-year term. In the case of the nominated Trustees, it is the responsibility of the nominating body to make such appointments, usually in consultation with the Chairman of the Trust.

Page 7

The four nominated Trustees comprise:

There is a requirement for one new co-opted Trustee with the retirement of Chairman P.R.C. Densham in November 2023 and we are actively looking to fill this position during 2024.

The Trustees usually meet twice a year during the Spring and Autumn.

Policy Adopted for the Induction and Training of Trustees

The Chairman of the Trustees is responsible for the induction of any new Trustee, which involves awareness of a Trustee’s responsibilities, the governing document, the history and objectives of this charity. A new Trustee would receive copies of the Trust Deed, the previous year’s financial statements and be informed about the Charity Commission’s “The Essential Trustee: What you need to know”.

Organisational Structure and Decision Making

Due to the nature of this charity all decisions on policy are taken by the Trustees and then implemented by the Investment Managers or the Clerk.

During the year Mrs A. Maddox continued her role as Clerk. She reports direct to the Trustees and is paid an appropriate fee for any work undertaken.

Independent Examiner

The Trustees are advised that an independent examination of the financial statements of the Charity is required and accordingly appointed Burton Sweet whose report is included with this report.

Page 8

Statement of Trustees Responsibilities

The trustees are responsible for preparing the Trustees’ Report and the financial statements in accordance with 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).

The law applicable to charities in England & Wales requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the income and expenditure of the charity for that period. In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping sufficient accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed/constitution. 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.

Signed on behalf of the Trustees.

............................................................. J M Ellis - Chairman

May 15 2024

Date: .........................................

Page 9

Independent examiner’s report to the trustees of St Stephen Ecclesiastical Charity

I report to the trustees on my examination of the accounts of St Stephen Ecclesiastical Charity (the Charity) for the year ended 31 December 2023.

Responsibilities and basis of report

As the charity trustees of the Charity you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (‘the Act’).

I report in respect of my examination of the Charity’s accounts carried out under section 145 of the 2011 Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.

Independent examiner’s statement

I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

  1. accounting records were not kept in respect of the Charity as required by section 130 of the Act; or

  2. the accounts do not accord with those records; or

  3. the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a ‘true and fair view which is not a matter considered as part of an independent examination.

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

May 15 2024

…………………………….. Date: ……………………….

Joshua N Kingston, BSc ACA, Burton Sweet Limited Chartered Accountants The Clock Tower 5 Farleigh Court Old Weston Road Flax Bourton Bristol BS48 1UR

Page 10 

.                      .

ST. STEPHEN'S ECCLESIASTICAL CHARITY

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR END 31 DECEMBER 2023

Notes
Income and Endowments
Investment Income
3
Total Income
Expenditure
Charitable Activities
4
Costs of Raising Funds:
Investment Management Costs
4
Current Year
Prior year rebate
Total Expenditure
Gains (losses) on Investments
Realised
5
Unrealised
5
Net Expenditure)/Income
Net Movement in Funds
Total Funds Brought Forward
8
Total Funds Carried Forward		 Unrestricted funds
Restricted funds
Total funds 2023
£
£
£
32,843
-
32,843
32,843
-
32,843
53,264
-
53,264
-
8,691
8,691
-
-
-
53,264
8,691
61,955
-
(545)
(545)
-
11,401
11,401
(20,421)
2,165
(18,256)
(20,421)
2,165
(18,256)
68,885
928,355
997,240
48,464
930,520
978,984		 2022
£
31,648
31,648
28,334
9,489
(1,521)
36,302
(7,670)
(42,573)
(4,654)
(54,897)
1,052,137
997,240

The Charity has no recognised gains or losses other than the results for the year as set out above. The notes on pages 13 to 15 form part of the financial statements

All of the activities of the charity are classed as continuing

Comparative fund movements are shown in note 10

Page 11

ST. STEPHEN'S ECCLESIASTICAL CHARITY

BALANCE SHEET AS AT 31 DECEMBER 2023

----- Start of picture text -----
2023 2022
Notes £ £
Fixed Assets
Investments 5 955,372 952,865
Current Assets :
Debtors 6 472 285
Cash at Bank 27,226 46,971
27,698 47,256
Creditors:
Amounts Falling due within one year 7 4,086 2,881
Net Current Assets 23,612 44,375
Net Assets 978,984 997,240
Represented By:
Unrestricted Funds:
General 8 48,464 68,885
48,464 68,885
Endowment Funds 8 930,520 928,355
Total Funds 978,984 997,240
May 15 2024
These financial statements were approved by the Trustees on….................. and are signed on its behalf by:
J M Ellis .......................................................
Chairman
Date .......................................................
May 15 2024
----- End of picture text -----

The notes on pages 13 to 15 form part of the financial statements

Page 12

ST. STEPHEN'S ECCLESIASTICAL CHARITY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

1. Accounting Policies

In preparing the financial statements the following accounting policies have been applied:

a) Declaration

The charity is a Public Benefit Entity as defined by FRS102.

b) Basis of Accounting

The financial statements have been prepared in accordance with the historical cost convention (except where otherwise stated in the accounting policy note) and in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued in October 2019, and the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), and the Charities Act 2011.

The accounts (financial statements) have been prepared to give a ‘true and fair’ view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a ‘true and fair view’. This departure has involved following 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) issued in October 2019 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn

c) Fund Accounting

General unrestricted funds are funds available for use at the discretion of the Trustees in furtherance of the general objectives of the charity

Endowment funds are funds that represent capital endowed on creation of this charity, capital endowed on creation of the merged charity St James and St Mary-Le-Port Ecclesiastical Charity or capital transferred to the fund by another charity. Where the trustees must permanently maintain the whole of the fund it is referred to as the permanent endowment and such a fund cannot be spent as if it is income.

d) Income

All income is included in the Statement of Financial Activities when the charity is entitled to the income and the amount can be quantified with reasonable accuracy. Investment income is represented by dividends and interest received on listed investments

e) Investments

Investments are stated at market value at the balance sheet date. The Statement of Financial Activities includes the net gains and losses on revaluations and disposals throughout the year.

f) Expenditure

All expenditure is accounted for on an accruals basis and has been included under headings that aggregate all costs related to the category; irrecoverable VAT is charged as incurred.

The cost of managing investments is charged against investment capital, reflecting the total return approach to investment management. Any costs associated with the sale or purchase of investments are accounted for as part of the sale or purchase price of the investments.

g) Going Concern

There are no material uncertainties to impact the ability of the charity to continue as a going concern.

h) Debtors

Amounts owing to the Charity at 31 December in respect of fees, rents or other income are measured on initial recognition at settlement amount after any trade discounts or amount advanced by the Charity. Subsequently, they are measured at the level of cash or other consideration to be received.

i) Creditors

Creditors are recognised when the Charity has a present obligation arising from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably

j) Cash at bank and in hand

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

2 Taxation

The Trust is a recognised charity and accordingly is exempt from taxation on its income and gains where they are applied for charitable purposes

3. Investment Income
Listed Investments
Interest
4. Expenditure
Charitable Expenditure
Grants to St. Stephen's Church
Independent examination fees, Current year
Independent examination fees, Prior year adjustment
Legal Costs
Admin Costs
Investment Management Costs		 2023
£
31,246
1,597
32,843
2023
£
47,689
1,320
276
2,837
1,142
53,264
8,691
61,955		 2022
£
31,053
595
31,648
2022
£
26,486
972
-
-
876
28,334
7,968
36,302

Investment management costs are allocated to the endowment and unrestricted reserves designated on the basis of these funds at the beginning of the period to the market value of the investments at the same date.

Page 13

ST. STEPHEN'S ECCLESIASTICAL CHARITY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

5. Fixed Assets - Investments, Market Value
Listed Investments:
Stocks & Shares
Bonds
Cash
Movements in fixed asset investments were:
Market value at 1 January
Additions to investments at cost
Disposal of investments at market value
Net Investments gain (loss)
Realised
Unrealised
Market value at 31 December
The cost of investments held at 31 December
6. Debtors
Investment Income
7. Creditors
Investment Manager's Fees
Independent Examiner fee
Other Fees & Charges		 2023
£
765,333
155,859
921,192
34,180
955,372
914,876
29,989
(34,529)
(545)
11,401
921,192
833,708
472
1,527
1,320
1,239
4,086		 2022
£
773,272
141,604
914,876
37,989
952,865
986,661
45,494
(67,036)
(7,670)
(42,573)
914,876
828,559
285
1,512
972
397
2,881

8. Analysis of Net Assets and Liabilities Between Funds

Year end December 2023:
Fixed Asset Investments
Current Assets
Current Liabilities (-)
Year end December 2022:
Fixed Asset Investments
Current Assets
Current Liabilities (-)		 Unrestricted Funds
(£)
Endowment Funds (£)
Total (£)
24,852
930,520
955,372
27,698
-
27,698
(4,086)
-
(4,086)
48,464
930,520
978,984
Unrestricted Funds
(£)
Endowment Funds (£)
Total (£)
General
24,510
928,355
952,865
47,256
-
47,256
(2,881)
-
(2,881)
68,885
928,355
997,240

The unrestricted funds of the charity may be applied for charitable purposes in accordance with the objects of the Trust.

9. Related Party Transactions

There were no related party transactions during current or preceding year.

None of the Trustees received any remuneration or expenses from the charity during the year

Page 14

ST. STEPHEN'S ECCLESIASTICAL CHARITY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

10. Statement of Financial Activities, Prior Year

10. Statement of Financial Activities, Prior Year
Income and Endowments
Investment Income
Total Income
Expenditure
Raising Funds
Charitable Activities
Total Expenditure
Net gains (losses) on Investments
Realised
Unrealised
Net Income
Transfer between Funds
Net Movement in Funds
Total Funds Brought Forward
Total Funds Carried Forward		 Unrestricted Funds
Endowment Funds
General
Designated
£
£
£
31,648
-
31,648
-
-
-
7,968
28,334
-
-
28,334
-
7,968
-
-
(7,670)
-
-
(42,573)
3,314
-
(58,211)
18,220
(18,220)
-
21,534
(18,220)
(58,211)
47,351
18,220
986,566
68,885
-
928,355		 Total Funds 2022
£
31,648
31,648
7,968
28,334
36,302
(7,670)
(42,573)
(54,897)
-
(54,897)
1,052,137
997,240

Page 15