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2021-03-31-accounts

ANNUAL REPORT AND ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2021

Presented to Parliament Pursuant to Section 57(21) of the Mission and Pastoral Measure 2011 (2011 No.3)

July 2021

ANNUAL REPORT AND ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2021

Presented to Parliament Pursuant to Section 57(21) of the Mission and Pastoral Measure 2011 (2011 No.3)

July 2021

© The Churches Conservation Trust copyright (2021)

The text of this document (this excludes, where present, the Royal Arms and all departmental or agency logos) may be reproduced free of charge in any format or medium provided that it is reproduced accurately and not in a misleading context.

The material must be acknowledged as The Churches Conservation Trust copyright and the document title specified. Where third party material has been identified, permission from the respective copyright holder must be sought.

Any enquiries related to this publication should be sent to us at central@thecct.org.uk This publication is available at https://www.gov.uk/government/publications

ISBN 978-1-5286-2729-0

Printed in the UK by the APS Group on behalf of the Controller of Her Majesty’s Stationery Office.

CCS 0521507066

Printed on paper containing 75% recycled fibre content minimum

The Churches Conservation Trust (‘The Trust’) is the national charity protecting historic churches at risk. We’ve saved over 350 beautiful buildings which attract almost two million visitors a year. With our help and with your support they are kept open and in use – living once again at the heart of their communities.

Our aims are:

CONTENTS

1. INTERIM CHAIR’S FOREWORD ................................................................................. 1 2. INTRODUCTION ....................................................................................................... 2 3. REVIEW OF THE YEAR .............................................................................................. 5 4. AIM ONE: Supporting communities to use and love their historic places of worship 7 5. AIM TWO: Sharing our skills to sustain churches ................................................... 11 6. AIM THREE: Promoting the value of our shared cultural heritage .......................... 12 7. PERFORMANCE AGAINST TARGETS ........................................................................ 14 8. SUSTAINABILITY ................................................................................................... 16 9. FINANCIAL REPORT ............................................................................................... 19 10. GOVERNANCE STATEMENT ................................................................................... 23 11. INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF THE CHURCHES CONSERVATION TRUST ........................................................................................ 29 12. FINANCIAL STATEMENTS ..................................................................................... 32 13. NOTES TO THE ACCOUNTS ................................................................................... 35

REPORT OF TRUSTEES AND ACCOUNTING OFFICER

1. INTERIM CHAIR’S FOREWORD

It is with great sadness that I write this introduction to the annual accounts 2020/21. Shortly after the end of the financial year our Chair, Peter Ainsworth, died very suddenly and unexpectedly. This news was a terrible blow, not only to his family, but also to the Churches Conservation Trust and the wider heritage sector. Peter provided sure and steady leadership before and during the Covid pandemic and represented us, in his effective and affable style, to Government, the Church of England and to everyone else who could be persuaded to support us. Peter was a passionate and knowledgeable advocate for historic churches and we consider ourselves very fortunate to have had him as our Chair for five years. He will be missed by us all.

As the financial year began and the pandemic took hold, we acted quickly to protect our volunteers and move all our staff to work from home. This was managed very well by our chief executive and senior team who were able to limit the impact on our operations. Financially, we faced a significant drop in our income because of cancelled fundraising events and a lack of visitor donations, so we worked hard to curtail all non-essential expenditure. However, thanks to a lot of hard work by our staff and the vital and timely support of DCMS, National Lottery Heritage Fund and Historic England, we managed to invest around £1.6m in essential repairs to our buildings, also helping to support the livelihoods of crafts people and the companies that deliver conservation work.

Our major projects at Sunderland and Worcester, generously supported by NLHF funding, have been significantly delayed over the course of the year and we were hoping to have had them completed, but this will now happen in 2021-22. We are excited at the benefit that these significant cultural assets will offer the communities surrounding them once they open.

I am grateful to all those who have continued to support us and to the large number of people who have joined our membership scheme on the back of our successful Thursday lunchtime lecture series. Although our churches stayed open as much as possible, we really missed our local communities who use and love the church buildings in our collection. Bringing people together online, from across the world, to hear erudite lectures on all aspects of church history and heritage was an unexpected highlight. Our online lectures are a lasting legacy of this extraordinary year and we now have a programme booked up into 2022.

The Board is pleased and relieved to report that we have ended this year in a much better financial position than we had thought possible and we are grateful for the ongoing support of DCMS and the Church Commissioners. Peter Aiers has successfully led the charity through its most difficult year in living memory, with much hard work from our excellent senior management team and staff.

There will be continuing challenges in 2021 but we look forward to this next year when we can welcome visitors and communities into our precious collection of historic church buildings across the country.

The Board always gives grateful thanks for our invaluable staff, volunteers and supporters but this has never been more heartfelt. Thank you to everyone.

Sue Wilkinson Interim Chair

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2. INTRODUCTION

Who we are

The Churches Conservation Trust is the national charity protecting historic churches at risk. We’ve saved over 350 beautiful buildings which attract almost two million visitors a year. With our help and your support they are kept open and in use – living once again at the heart of their communities.

Constitution

The Churches Conservation Trust (CCT) is registered as a charity (number 258612) and its governing document is the Mission and Pastoral Measure 2011 (2011 No.3). Its object, as defined principally in Section 57 (21), is: ‘the preservation, in the interests of the nation and of the Church of England, of redundant churches and parts of churches of historic and archaeological interest or architectural quality vested in the Trust, together with their contents so vested.’

Objectives and Activities

The CCT cares for those parish churches which are of particular historic, architectural or archaeological merit and are vested in the CCT by the Church Commissioners to be conserved for the nation and opened to the public.

Strategic Aims 2019-24

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1: Supporting communities to use and love their historic places of worship

The CCT has responsibility for a growing collection of historic churches. In order to best care for these buildings it is essential that they are used and loved by the local community. Where there are historic churches with a motivated and well-supported community the building thrives.

In order to deliver this first pillar of our strategy, we have devised a network of Local Community Officers who will create and maintain relationships with the communities around CCT churches. We will support communities to use their historic church and raise the funds necessary to keep it in good repair.

Our Conservation Team will continue to provide an excellent maintenance service to our historic churches and will manage a national list of repair priorities. This element of the strategy also allows the CCT to consider how we might support communities care for their historic places of worship beyond the CCT collection.

2: Sharing our skills to sustain churches

The CCT will develop profitable commercial activity to help support investment in the conservation and repair of our collection of historic churches. The initial areas of investment will be in Champing™, our consultancy work and the development of our fledgling maintenance service.

The Head of Enterprise will drive and develop the profitability of our commercial work. This role will also advise how we invest and develop flagship visitor churches.

3: Promoting the value of our shared cultural heritage

The CCT is concerned that there is a precarious future for many historic places of worship. We seek to ensure that society continues to value these buildings for their social, architectural, historical, aesthetic and cultural qualities.

We will develop and grow our supporter base. We seek to gather a strong voice for all of those who value historic places of worship in their community. To ensure that historic places of worship remain relevant and important to society, the CCT will develop a learning programme to explain these complex buildings.

The programmes will result in the conservation, repair, adaptation and maintenance of the 356 buildings in our collection and of additional churches at risk coming into ownership. The CCT also runs a wide range of projects to support and promote community, arts, cultural and educational use, tourism and the local management or lease of its buildings. All projects serve to increase external funding, volunteering, partnerships and local involvement.

DCMS and Church Commissioners Funding Agreement

The CCT works to a Funding Agreement with its two main sponsors, the Department for Digital, Culture, Media and Sport and the Church Commissioners. We are extremely grateful for their support throughout the year and for the grant-in-aid without which the CCT could not function. The Agreement sits within the strategic plan and funding agreement targets are mapped into the priorities for the year.

Our funding and management agreement aims are to:

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Public Benefit

The CCT meets its obligations through ‘advancing arts, culture, heritage or science’. It manages and provides free admission to 356 historic buildings which are open to the public on a daily basis throughout the year and which are made available for community use. Some 1,800 members of the public usually volunteer for the CCT and many are provided with training and support as a part of this activity. All Trustees give their time voluntarily and receive no benefit from the charity. Expenses reclaimed from the charity are set out in the notes to the accounts.

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3. REVIEW OF THE YEAR

We are certain that most reviews of any organisation for the financial year 2020/21 will start with an expression of how this was extraordinary and unprecedented. Clearly the CCT’s review will. This has been a year of extraordinary difficulty given the national response to the global pandemic. It is good to note that the CCT has come through this year intact and in a strong position to weather the storms which subsequent years may bring to the nation’s economy. The year 2020-21 was supposed to be a year where the CCT consolidated all the changes that had been made in 201920 and really demonstrated how our engagement and support of communities could drive forward the greater sustainability of our collection of 356 churches. As it turned out we did a great deal of work to consolidate our position but we were unable to make quite the impact we intended in quite the way we intended as we had to restrict our teams travelling and work in a completely new way. There were very limited opportunities for any events in our churches and the bulk of our work moved online.

When the pandemic struck in March 2020, we moved very quickly to have our staff work from home thanks to the preparations of our IT team. The CCT immediately declared three Covid priorities for the organisation and these were Re-opening, Fundraising and Community Support.

In the first lockdown we closed our churches and moved all of our work online. Due to the importance of us having our churches open once more and the complexities of Government advice, we set up a Re opening Taskforce. The taskforce provided guidance and training, process and risk assessments for staff and volunteers over the past year as the Government announcements and strategies for dealing with the global pandemic have emerged and changed.

A Fundraising Taskforce was also created as we knew that there would be a huge impact on our income due to there being no events and that our church buildings would be closed. Drawing on the support of colleagues across the organisation, the Taskforce developed a fundraising plan incorporating national and local elements. Underpinning each element was a consistent case for support which can be tailored to ‘make the ask’ in a range of scenarios.

For the first time in our 50 year history, the CCT cancelled the Spring maintenance visits to our churches. Although this was considered a risk, the process was managed very carefully by the Conservation Team and the most sensitive sites were carefully looked after.

The outcome of the year was much better than we could have envisaged back in April 2020, due to the hard work of the team in generating new sources of revenue, the generous support of National Lottery Heritage Fund , Historic England and DCMS and a huge effort in cost saving and efficiency across the organisation.

This was all achieved in the very tragic context of the deaths of our Conservation Projects Manager Dawn Whitton who had worked with us for 18 years and our Chair Peter Ainsworth who had been with the CCT for 5 years. Our thoughts are with their families.

Highlights of the year include:

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4. AIM ONE: Supporting communities to use and love their historic places of worship

The CCT has responsibility for a growing collection of historic churches. In order to best care for these buildings it is essential that they are used and loved by the local community. Where there are historic churches with a motivated and well-supported community the building thrives.

In order to deliver this element of our strategy, we devised a network of Local Community Officers who create and maintain relationships with the communities around CCT churches. We support communities to use their historic church and raise the funds necessary to keep it in good repair.

Our Conservation Team continue to provide an excellent maintenance service to our historic churches and manage a national list of repair priorities.

This element of the strategy also allows the CCT to consider how we might support communities to care for their historic places of worship beyond the CCT collection.

Regions

It had been envisaged that our regional teams would have spent this year building on the foundations of year one of the 2019-24 strategy, to begin to grow income and support for our buildings from communities across the country. A full programme of events was expected which would see communities use and love their historic places of worship. The pandemic meant that we had to focus our work very differently.

In late March/early April 2020, regional teams worked effectively with volunteers and community members to implement the rapid closure of all 356 churches and postpone all events in response to the national Covid-19 lockdown. This was achieved alongside the closure of our regional offices and the transfer to homeworking for office-based team members. Heads of Region reviewed the objectives of LCOs, using the opportunity of restricted travel to expedite the desk based community opportunities research required to support the development of Church Plans. Church Plans are central to how the CCT is developing. This work was undertaken alongside continued communication with volunteers and community members, to both support wellbeing and re-orient fundraising efforts.

As restrictions were eased in early July, regional teams then undertook the re-opening of our sites. The safety of our visitors, volunteers and staff has been key. Using guidance and protocols provided by the Re-opening Taskforce, each church has undergone a thorough risk assessment before reopening with appropriate control measures in place. Control measures to support safe visiting include signage to support social distancing and additional hygiene. We participated in Visit Britain’s ‘Good to Go’ scheme which provides visitors with confidence that our churches are safe to visit and there’s lots of information and FAQs on our website.

At the end of October, just prior to the commencement of the second national lockdown, regional teams had re-opened 286 churches, which represents 80% of CCT’s estate. Typically, pre Covid19, 85-90% of churches were open at any one time, as there were always some temporary closures due to volunteer circumstances, damage and repairs. In the vast majority of cases, the 5-10% of churches which could be re-opened, but were closed, were facing challenges in volunteer capacity or confidence. Regional teams were working hard to address these and get as many of the remaining doors open as possible.

With the announcement of the second national lockdown from 5 November-2 December, regional teams, once again, worked hard with volunteers and community members to close the doors to CCT churches for general visiting. Where, possible, however, access was provided for individual prayer, in line with government guidelines and the approach of the Church of England. During

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December, when lockdown restrictions were eased, a few churches were able to hold seasonal services and activities.

In January, with the announcement of the third national lockdown, our churches returned to policy of closure for general visiting, but access for independent prayer and services in certain circumstances. Following the announcement of the Government’s Roadmap to exit Covid-19 restrictions, regional teams prepared for a final re-opening exercise. During the most recent lockdown period, significant work was undertaken to prepare resources to support volunteers and communities in planning events for when the re-opening allows. The results of this work is a downloadable ‘Confidence in Events’ pack and a series of mini videos, which can be viewed on our website.

The CCT is not able to function without the support and commitment of the communities and volunteers that surround our churches. It has been a very difficult year but the support and enthusiasm from volunteers has remained to ensure that that our collection of historic church buildings can be used and loved in to the future. Our annual volunteers and community day was held online this year and we are very grateful to the Marsh Christian Trust who support our Volunteer Awards.

Fundraising and Membership

CCT churches had been looking forward to a full programme of community-led fundraising activities throughout the spring and summer. Whilst physical event based activities were postponed, Local Community Officers (LCOs) were tasked with working with community members and volunteers to re-purpose planned events into virtual activities where possible, alongside generating new fundraising activities. Working collaboratively, regional teams quickly generated a ‘menu’ of suggestions which were shared with local contacts together with the case for support, guidance on donation channels and inspiring case studies. As an example of activities taking place, the Friends of Preston Park, turned their annual fundraising sale in May into a socially-distanced plant sale on one member’s front garden, raising £500.

The Fundraising Taskforce and Local Community Officers worked collaboratively to accelerate regional fundraising activities through specific working groups. These focused on the development and implementation of processes and resources to support income generation via recorded/live virtual events, walking tours, community led activities, service collections, localised corporate giving, sales of goods and localised sponsorship packages. As an example of this work CCT listed 200 events for the annual Heritage Open Days which took place 11-20 September. Our headline event was a virtual concert introduced by, and including a contribution from our vice president, Jools Holland. The concert content was drawn together by Local Community Officer, Nick Watts, featured a fantastic mix of wonderful and talented artists who dedicated performances both past and present to their local CCT church.

Due to our success in Heritage Stimulus Fund grant scheme provided by DCMS and Historic England, we had the challenge of providing 20% match funding, some £332,000, of the £1.68m grant. The grant provided funding for vital repairs to 26 church buildings in our collection. This work had to be completed on an extremely tight timetable between October 2020 and March 2021. Our teams worked tirelessly in this short window and thanks to the generosity of the communities around our church buildings we raised £122,000 towards the total.

National fundraising efforts were focused on optimising the existing channels of communications (Members E Newsletter, Pinnacle Spring edition, Website and Social Media) to retain the support of existing supporters and make appropriate unrestricted fundraising asks, and developing new audiences and giving opportunities. Work to cultivate new audiences has been a collaborative effort via the Fundraising Taskforce between the national Fundraising, Communications and Learning and Participation teams.

The primary focus for Trusts and Foundations has been on the impact of Covid-19, prioritising response opportunities. The Grants and Capital Campaigns manager has worked closely with colleagues in the Regions, Conservation and Enterprise to maximise the opportunities with positive success.

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The new approach to fundraising across the CCT saw total income for national fundraising activities rise to £374,000 of which 75% was unrestricted (2019/20: £221,000 and 25%).

Across the year, we have been successful in receiving:

This has resulted in over £1.4m received during 2020/21 with over £200k pledged.

Conservation

The team had to change priorities quickly across the year due to the pandemic. Projects focussed on the Top 15 priority list slowed and in the second half of the year was superseded by development and delivery of a £1.68m major repair programme, under the Heritage Stimulus Fund. Some of the 26 church buildings in the programme were part of the Top 15 list. By the year end the team had delivered 93% of the required spend, which was above the required level of the funder. This is an outstanding achievement and speaks volumes as to how well prepared the Conservation Team where and how well they knew the buildings and what repairs were needed.

For the first time the Spring maintenance visits were cancelled as this was the safest option at the time. Savings of c£100k were made in the annual maintenance budget but the impact is clear as we are reporting an increase of maintenance costs during the autumn and winter months, as buildings have been found in worse condition with minor defects having exacerbated and routine tasks requiring longer time to be completed. This re-enforces our view that cyclical maintenance is vital to keep buildings in good repair.

Despite initial reserve, 3 of the 4 the New Vesting projects were started on site during the year, the fourth will start on site within a month of the year-end.

Regeneration

Our major projects at Sunderland and Worcester were on site when the first lockdown was announced and were forced to closed. Management of the budgets for the major projects at Sunderland and Worcester has been a huge challenge this year. Additional costs at both sites have been incurred because of a combination of: stoppage of work on site when the pandemic first broke out; ongoing safe working requirements for Covid-19; lack of sufficient site staff because of selfisolation or illness ref Covid-19; and material and sub-contractor shortages as a knock on effect of these issues. As a result by the year end the additional budget required to complete both projects (capital work and ongoing operational costs) as a result of these delays is estimated to be £1.2m – not all, but a large proportion owing to Covid. Uplift request are to be lodged with the NLHF, with alternative funding plans in place if the uplifts are declined.

Work has continued to develop the projects at St Peter’s Sudbury and at the St Peter’s and the Old Black Lion in Northampton.

Finance and ICT

This team provided very solid support for the CCT operation during this most difficult period. Due to good preparations the CCT was able to ensure all of the staff could work from home in short order. IT systems have been upgraded and cost savings identified from retendering processes. Upgrades have been made to equipment and IT infrastructure in the CCT offices in preparation for a return to office use in 2021/22.

Our digital strategy group continues work on implementing the improvements needed for CCT’s digital infrastructure. Ground work has been completed to launch the digital transformation

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project in 2022, focusing on upgrades to our CRM database, HR system, property management system and website.

The team has supported the introduction of a new Image Management Policy and GDPR review has been undertaken on our consent process and recording processes.

The CCT archive has been relocated. Over 1,500 boxes of historical church records have been moved from our Bermondsey archive to the London office.

Finance has supported numerous cross organisational projects during the year, notably: the introduction of finance systems for our major projects at Worcester and Sunderland; the full roll out of text giving at all CCT church buildings; numerous Covid related grant applications; and the review of restricted fund allocations for maintenance.

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5. AIM TWO: Sharing our skills to sustain churches

The CCT will develop profitable commercial activity to help support investment in the conservation and repair of our collection of historic churches. The initial areas of investment will be in Champing™, our consultancy work and the development of our fledgling maintenance service.

The Head of Enterprise will drive and develop the profitability of our commercial work. This role will also advise how we invest and develop flagship visitor churches.

Major Footfall Sites

During the year the Head of Enterprise has been working with Centre Managers at major sites to review and revise the business plans to become as sustainable and flexible at a time when the economic impact of Covid is considerable.

The major project at Sudbury, which sees the church developed as a community hub for cultural events and community activity, was successful in stage 2 bringing in £1.7m of NLHF funding. The OBL project has developed during the year securing an additional £315K of investment from Northampton Borough Council in addition to £150K Section 106 money awarded late 2020.

Champing™

Champing™ has been a focus for the Enterprise Team this year in order to take advantage of the limited holiday opportunities that were available due to the pandemic and make the business as profitable as possible. Our mitigation strategies this year included extending the 2020/21 season in to October and starting the 2021/22 season earlier. Postponing bookings rather than refunding unless requested by guests, drastically managing costs and reducing planned investment in sites this year enabled a better performance of the product. The team were successful in obtaining an AHF Grant of £41,000 which will help underpin commercial development for 2021-22.

Regeneration Consultancy

The Trust has won further consultancy work during the year despite the pandemic; St Peters, Brighton to support planning discussions and a design review process, Stockton Parish Church for an outline financial viability and fundraising strategy. Stowlangtoft church for support to engage the local community in the future of the building and prevent closure.

The regeneration team developed a mentoring service specifically to support individuals, groups, charities and community developers who are managing community enterprise models in historic buildings and who were being adversely impacted by Covid 19.

Historic Chapels Trust

The CCT has continued to support the Historic Chapels Trust over the last year, managing the buildings and staff as well as supporting the Board of Trustees.

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6. AIM THREE: Promoting the value of our shared cultural heritage

The CCT is concerned that there is a precarious future for many historic places of worship. We seek to ensure that society continues to value these buildings for their social, architectural, historical, aesthetic and cultural qualities.

We will develop and grow our supporter base. We seek to gather a strong voice for all of those who value historic places of worship in their community. To ensure that historic places of worship remain relevant and important to society, the CCT will develop a learning programme to explain these complex buildings.

The programmes will result in the conservation, repair, adaptation and maintenance of the 356 buildings in our collection and of additional churches at risk coming into ownership. The CCT also runs a wide range of projects to support and promote community, arts, cultural and educational use, tourism and the local management or lease of its buildings. All projects serve to increase external funding, volunteering, partnerships and local involvement.

Learning and Interpretation

Through funding from the Department for Education, via Historic England, we have continued to support the equivalent of three full time Heritage Learning Officers who work with schools to bring young people into our church buildings. The programme has now been going for nine years, allowing us to build relationships with schools, teachers and learning networks, as well as more recently providing popular family learning programmes in our major footfall sites.

Heritage Learning Officers supported their regional colleagues during the first re-opening, lending their support to the huge task of re-opening by helping with pre-opening visits and risk assessments. As the education sector emerged from lockdown, HLOs were in touch with school contacts. Sessions were booked in for the autumn term.

As part of the newly-formed Fundraising Taskforce Group, it was decided that we should focus on digital resources that our members, supporters and the general public could access online, via the CCT website. Content was gathered through the learning and regional teams and in the first instance, the focus was around looking at what content we already had and could re-use. This included:

These resources provided a focus for our audience and some resources for people to use whilst churches were closed and events cancelled. The walks were particularly important in keeping people engaged. All of the resources were promoted via social media.

A great success spurred on by the lockdown has been the CCT Virtual Lectures on Thursday lunchtimes. Available live and on YouTube, contributors include CCT staff, academics and authors of considerable expertise. The series has developed a donation request and membership offer, which has been very successful. The team have also sold books relevant to the lectures and, supported by significant behind the scenes work on the website to improve the new member journey, the growth of new members via the lectures has been phenomenal. Total income from donations, memberships and sponsorship as a result of the lectures is just over £28,000. Lectures have had live audiences of up to 1,500 and then thousands of subsequent views. The result is a significant positive impact on our KPIs for digital engagement.

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In early May, we introduced a free supporters e-newsletter which includes links to donation and membership signup alongside engaging content. As of 31 March 2021, this had gained 345 subscribers. Significant work was also undertaken to provide Resources for Life in Lockdown pages via our website. These provided resources for individuals, schools and families to engage with CCT churches whilst full lockdown restrictions were in place.

For Christmas the CCT partnered with the Royal School of Church Music. Filmed at All Saints, Cambridge on 29-30 October, the service was streamed on 12 December and had a cast including an introduction by HRH The Prince of Wales, John Rutter, Rowan Williams, Theresa May, Alexander Armstrong and Tim Bentinck amongst others. Combined live and post event audience figures across YouTube and Facebook reached 18,000 viewers.

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7. PERFORMANCE AGAINST TARGETS

Key Performance Indicators

The CCT uses targets to measure progress against strategic aims and to demonstrate trends over time. The table below shows national targets and performance against them.

Supporting communities to use and love their historic places of worship

Supporting communities to use and love their historic places of worship Supporting communities to use and love their historic places of worship Supporting communities to use and love their historic places of worship Supporting communities to use and love their historic places of worship Supporting communities to use and love their historic places of worship
KPI Measure 2020/21 Target 2020/21 Actual
1 85% of
volunteers and
communities
around our
churches feel well
supported by the
CCT by 2024		 Taking the annual
Volunteer Survey
and expanding our
audience for it, this
should include
incumbents.
Baseline: The
annual survey
provided that 38%
of volunteers felt
well supported by
the CCT		 Staff survey: 55% of
volunteers feel well
supported by CCT		 39% replied they feel well
supported by the CCT.
Separately, 65% of
volunteers felt either
“Supported” or “Very
Supported” by their Local
Community Officer
2 A further £700k
of church based
funding is
generated every
year by 2024		 Church based
income baseline
(2018/19): £492,655		 Updated Covid
target : £224,773		 £327,403
146% of Covid target
3 To increase our
annual regular
maintenance
expenditure to
over £1m by
2024		 Amount spent on
regular
maintenance
annually.
Baseline(2018/19):
£526,559		 Covid led to this
target being
suspended.		 2019/20: 602,234
2020/21: £498,770
Figures excludes specific
investment in legal
compliance and security
work to protect CCT’s
churches.
4 We will deliver
the 15 priority
projects by 2024		 Progress against
the project list as
agreed by SMT and
Board of Trustees		 Progress against the
project list as agreed
by SMT and Board of
Trustees		 Top 15 (tier 1): 3 projects
complete, 2 projects
complete in part (limited
by funding) 5 projects on
site
Next 10 (tier 2): 5
complete

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Sharing our skills to sustain churches Sharing our skills to sustain churches Sharing our skills to sustain churches Sharing our skills to sustain churches
KPI Measure 2020/21 Target 2020/21 Actual
5 Achieve our 5
year commercial
target		 Progress against
the commercial
plan to be devised
by the Head of
Enterprise once
appointed		 Develop Commercial
Plan		 The outbreak of Covid-19
has meant that
commercial activity was
paused and updated
targets implemented. The
5 year plan is being
reviewed and revised
6 Work with 50
communities
outside the CCT
collection over 5
years		 Number of
communities
worked with as
part of
consultancy work
or partnership
working		 10 target 23 Projects
Promoting the value of our shared cultural heritage
KPI Measure 2020/21 Target 2020/21 Actual
7 Achieve 2 million
annual visitors
per year		 2018/19 baseline:
1.7m visitors		 1.80m visitors 2020/21 saw our churches
closed for most of the
year. Visitor data was not
collected.
8 Grow CCT
supporters to
10,000 by 2024		 Numbers of
supporters
recorded on CRM
2018/19 baseline:
2,060 members		 3,000 members 3,031
9 Grow digital
audience by
250% by 2024		 Baseline figures:
Twitter 13,000
LinkedIn 2,500
Instagram 2,500		 Twitter 16,000
LinkedIn: 3,800
Instagram: 4,582
Facebook Likes:
8,500		 Twitter: 17,038
LinkedIn: 4,455
Instagram 5,605
Facebook Likes: 18,626

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8. SUSTAINABILITY

Since 2011/12 public bodies are obliged to include a sustainability report within the annual report and accounts unless the body falls under the de-minimus threshold for reporting of 250 full time equivalent staff or floor space of less than 1,000 metres. As CCT full time equivalent staff for 2020/21 was 67 we are not required to include a report, however, further details of our work can be found below and on our website.

This report provides a summary of how the CCT has applied principles of sustainability into the Trust’s projects and consultancy work in 2020/21. It focuses mainly on the work of the Regeneration and Conservation Teams, who deliver the Trust’s major capital projects, but sustainability goals are followed across the organisation.

The CCT works in partnership with all kinds of community groups to support them in caring for redundant places of worship and finding sustainable new uses. Our aim is to ensure these special buildings remain conserved, in use, and at the heart of their communities. Our approach is to promote sustainable stewardship of historic churches, so that problems of decay and redundancy are tackled before they become overwhelming. Our projects also use locally sourced materials and sub-contractors as far as is practical in our repair, conservation and regeneration programmes.

New Churchyard Policy

We have developed a new churchyard policy in 2020/21 which is particularly focused on conservation of wildlife and the natural landscape. It has been adopted across all our vested churchyards, c. 70 across England. In some urban places, our churchyards are one of the key green spaces remaining.

Wildlife Management

As part of all our projects we commission surveys and monitoring work to ensure that protected species – such as bats and birds – are not adversely affected by our programme of repair and conservation. We include mitigation and enhancement schemes, where required, in all our projects.

Energy Saving

We monitor energy consumption at all our sites to identify periods of high energy consumption and develop strategies for how we can recover income and reduce waste. New and more efficient heating systems at Sound & Art at St Swithun’s, Worcester and at Seventeen Nineteen in Sunderland – two of our major projects – were installed in 2020/21. We are considering a new heating system for St Peter’s in Sudbury and applying sustainability principles.

Conservation Repair and Maintenance

Our maintenance and repairs are guided by conservation principles, which have at the core the use of traditional and local materials and crafts. We have delivered a grant-funded programme of capital works, mostly focused on re-roofing, masonry repairs and glazing, of c. £1.7m across 26 sites through the Heritage Stimulus Fund. This has seen the repair and conservation of historic churches in 18 counties across the country. The programme, by supporting and creating jobs, has provided vital support and financial stimulus to the heritage sector and rural economies.

We have also carried out large capital work projects at two of our newly vested churches, Hemington (Somerset) and Gamston phase II (Nottinghamshire), the first focused on roofing and masonry repairs and the second focused on new ground drainage, repairs to floors, plaster, timberworks and services.

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The Conservation Team is the national team responsible for the care, maintenance and repairs of the CCT estate of 356 highly listed historic churches across England. The annual maintenance and repair programmes are delivered through frameworks of local contractors and, as much as possible, local consultants and specialist conservators.

Minimising Loss of Original Fabric and Sustainable Design

Carrying out the minimum amount of work required to conserve our sites is a guiding principle in developing conservation and regeneration projects. We have followed this approach on site at our major projects – St Swithun’s in Worcester and Seventeen Nineteen in Sunderland – as well as in the repair projects commissioned through the Heritage Stimulus Fund, described above.

Our project to regenerate St Peter’s, Sudbury, was awarded Stage 2 funding from the National Lottery Heritage Fund (NLHF) in 2020 and our NLHF-funded project at the Old Black Lion in Northampton was awarded grants from the Architectural Heritage Fund and the local authority. The proposals for these buildings are now being developed to minimise the loss of historic fabric and reflect principles of sustainability in the designs.

Craft Skills

Our heritage craft skills programme at Seventeen Nineteen has provided two apprentice opportunities and a number of work-based placements for students as well as over 15 workshops engaging 1500 local people in craft skills. We are also recruiting an apprentice at Sound & Art St Swithun’s in Worcester.

A similar programme of public engagement with craft skills and apprenticeship opportunities has been included in Round 2 National Lottery Heritage Fund grant for St Peter’s, Sudbury and will be delivered in 2021/2.

We have employed skilled local contactors on all of our 26 Heritage Stimulus Fund repair projects.

People and Communities

We develop and deliver regeneration and conservation projects that contribute to more resilient and cohesive communities and provide our buildings with a sustainable future. Roles such as the Estate Officer, Regeneration Officer, Heritage Learning Officer, and Local Community Officer support volunteers in caring for their churches, providing training and specialist advice. We deliver workshops on conservation cleaning, fundraising, working at height, the importance of maintenance, business planning, and in the use of traditional lime. We also work with schools, college and universities.

During the year we have provided support also to community groups outside the Trust estate, through our consultancy work for the Quakers in Norfolk & Waveney and West Weald areas. We also undertook a strategic review of the Historic Chapels Trust’s estate, to generate ideas to make the HCT more sustainable and proactive. We prepared individual ‘Way Forward’ reports for 18 HCT sites, which provided an overview of the local socio-economic context, considered building condition and repair liability, and examined current community activities and management models. This then informed an assessment of five possible scenarios for the future management for each site.

Sustainable Travel

We have substantially reduced our travel by car this year, due to the Covid-19 pandemic. Out travel by car dropped by over 50 percent. This has generated new ways of working which we hope

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to continue when restrictions lift. We support cycling to work schemes and encourage our staff to use sustainable transport as much as possible.

Our staff are mostly based within the geographical area of their remit, so to maximise efficiency in costs and resources, and minimise environmental impact from extensive travel. Our national teams, such as Conservation and Regeneration, work close to the projects they manage.

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9. FINANCIAL REPORT

Income

In the year ending 31 March 2021, overall income stood at £11.1 million, 31% up on the £8.4 million received in 2019/20. Increases were most apparent in grants, especially from the National Lottery Heritage Fund and Heritage Stimulus Fund.

Grant-in-Aid from DCMS and the Church Commissioners provided 38% of income at £4.2 million (2019/20: £4.0 million, 48%).

Non-statutory grant income increased significantly to £5.0 million from £2.9 million. This figure comprises grants from trusts and foundations for specific projects, together with grant income from Churches Conservation. Grants are recognised in our accounts under charity SORP accounting rules and the CCT moves into 2021/22 with a healthy pipeline of externally-funded projects, especially for the HLF funded major projects at Sunderland, Worcester and Sudbury. Grants from the Listed Places of Worship Scheme, where VAT is reclaimed on eligible church repairs rose significantly from £289,000 to £835,000.

Donations fell by 5% compared to our 2019/20 performance to finish the year at £490,000 (2019/20: £519,000). Unrestricted donations fell from £388,000 down to £275,000, a drop of 29%. This £113,000 drop was due to our churches being closed for a large part of the year due to Covid restrictions. Within this figure, Wall safe income showed significant drop from £148,000 down to £29,000

Legacies brought in a welcome £223,000 in the year, up from £136,000 in 2019/20. Of this total, £182,000 was unrestricted income (up from £129,000 in 2019/20).

Earned income fell by 39% to £354,000 from £578,000. Of this total £340,000 was unrestricted, down from £572,000 the Legacies provided previous year. Within Earned Income, hire fees showed the £182,000 of biggest fall, down £73,000 to £46,000. Other significant income unrestricted income within this category, both of which fell in the year includes: Filming down £41k to £15,000; and longer term rentals, down £28,000 to £75,000. One notable rise in the year was fees from our Supporters Scheme, up £19,000 to £103,000.

Total Group unrestricted donations and earned income, the growth of which is a key part of our new financial strategy to increase our income base, fell by £345,000 (36%) from £960,000 to £615,000. These results include income generated via the CCT’s trading subsidiary.

Expenditure

92% of the CCT’s expenditure went on frontline projects to repair churches and support communities (2019/20: 88%). At £8.3 million, ‘Church repairs and maintenance’ continues to be the main call on our funds. Compared to the previous year, this represents an increase of £3.1 million or 59%.

£1.9 million (2019/20: £2.1m) was spent on ‘Supporting 92% of expenditure volunteers and communities, keeping churches open’ and just spent on frontline projects under £0.9 million or 8% (2019/20: £1.1m 12%) of our expenditure goes on fundraising and communications.

Reserves

Trustees recognise that an unrestricted reserve allows the organisation to deal with short-term fluctuations in income, to provide adequate working capital and to underpin budgetary risk arising from capital expenditure projects.

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The Trustees have considered the scale, complexity and risk profile of the CCT, and taken account of the funding base which consists of grant-in-aid from DCMS and the Church Commissioners, and self-generated income. The former has historically been reasonably foreseeable, given that it is subject to multi-year funding agreement, but in the current economic climate the level of this can no longer be assumed. Self-generated income is always liable to fluctuation depending on economic circumstances and visitor activity.

The Trustees consider £500,000 of Free Unrestricted Reserves are required after taking into account: annual operational expenditure; short-term fluctuations in income; unexpected repair issues; adequate working capital; budgetary risks arising from major projects; and uncertainty in future income.

The policy on reserves is reviewed by the Trustees as part of the annual planning and budget setting process.

Restricted Reserves

Although the CCT’s total reserves at 31 March 2021 are shown as £1.57 million (2019/20: £1.51 million) on the Statement of Financial Position, all but £430,564 (2019/20: £429,651) are restricted funds whose use, under the terms by which they were given, is restricted solely to work at specific churches and cannot be used for other purposes. The CCT’s policy is always to utilise these funds first when carrying out necessary works at eligible churches, before any call is made on unrestricted funds.

Free Reserves

The Charity Commission defines ‘free reserves’ as: ‘income which becomes available to the charity and is to be expended at the Trustees’ discretion in furtherance of the charity’s objectives, but which is not yet spent, committed or expended’. As at 31 March 2020, the CCT had free reserves of unrestricted funds, less the carrying value of fixed assets, of £430,564. This represents an increase of £1,270 compared with the free reserves of £429,294 held on 31 March 2020.

Although our free reserves are currently below the target level of £500,000, Trustees consider the current figure acceptable especially considering the impacts of Covid-19 during 2020/21. The CCT aims to reach the £500,000 target by March 2022.

The policy on reserves is reviewed by the Trustees as part of the annual planning and budget setting process.

Investment Policy

The Trustees’ objective for its long term funds is to seek a real above-inflation return, both in terms of capital appreciation and income, through investment of permanent endowments in broadly based funds. Deposit funds are split between the Central Board of Finance of the Church of England Deposit Fund, Bath Building Society, Nationwide Building Society, Scottish Widows Bank and Virgin Money. Permanent Endowment funds are invested with Investec Wealth and Investment.

SMT, with Trustees’ approval, monitor and regularly review the Trust’s investment strategy.

Register of Interests

The CCT maintains a register of Trustees' interests which is available for inspection at the CCT's offices on application to the Chief Executive.

Registered Office

Society Building, 8 All Saints Street, London, N1 9RL.

Auditors

The CCT’s auditors are Mazars LLP, 6 Sutton Plaza, Sutton Court Road, Sutton, Surrey SM1 24JQ. The auditors are re-appointed annually by the Trustees.

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As far as the Trustees are aware, there is no relevant audit information (as defined by the Companies Act 2006) of which the charity’s auditors are unaware, and each Trustee has taken all the steps they ought to have taken as a Trustee in order to make themselves aware of any relevant audit information and to establish that the charity’s auditors are aware of that information.

Bankers

Coutts and Co, 440 Strand, London WC2R 0QS.

Legal Advisers

Farrer & Co, 66 Lincoln's Inn Fields, London, WC2A 3LH.

Church Commissioners Legal Office, Church House, Great Smith Street, London, SW1P 3AZ.

Remuneration of Senior Managers

Accrued
pension at
31/03/2021		 Real increase
in pension and
related lump
sum at
pension age		 CETV at
31/03/
2021		 CETV at
31/03/
2020		 Increase
in CETV		 Pension
benefit to
nearest
£1,000
Peter Aiers
Chief Executive		 20-25 0-2.5 300 270 15 33
Sarah Robinson Deputy
Chief Executive / Director of
Conservation(4 days per week)		 15-20
(plus a
lump sum
of 10-15)		 0-2.5
(plus a lump
sum of 0-2.5)		 336 300 22 32
Stuart Popple
Finance Director		 15-20 0-2.5 179 155 12 27
Marian Carson
Director of Operations		 0-5 0-2.5 21 7 9 25

‘The Cash Equivalent Transfer Value (CETV)’. A Cash Equivalent Transfer Value (CETV) is the actuarially assessed capitalised value of the pension scheme benefits accrued by a member at a particular point in time. The benefits valued are the member’s accrued benefits and any contingent spouse’s pension payable from the scheme. A CETV is a payment made by a pension scheme or arrangement to secure pension benefits in another pension scheme or arrangement when the member leaves a scheme and chooses to transfer the benefits accrued in their former scheme. The pension figures shown relate to the benefits that the individual has accrued as a consequence of their total membership of the pension scheme, not just their service in a senior capacity to which disclosure applies.

The figures include the value of any pension benefit in another scheme or arrangement which the member has transferred to the Civil Service pension arrangements. They also include any additional pension benefit accrued to the member as a result of their buying additional pension benefits at their own cost. CETVs are worked out in accordance with The Occupational Pension Schemes (Transfer Values) (Amendment) Regulations 2008 and do not take account of any actual or potential reduction to benefits resulting from Lifetime Allowance Tax which may be due when pension benefits are taken.

‘Real increase in CETV’. This reflects the increase in CETV that is funded by the employer. It does not include the increase in accrued pension due to inflation, contributions paid by the employee (including the value of any benefits transferred from another pension scheme or arrangement) and uses common market valuation factors for the start and end of the period.

Signed on behalf of the Trustees on: 22 June 2021

Sue Wilkinson Peter Aiers Interim Chair of the Trustees Chief Executive

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The CCT is a sponsored body of the Department for Digital, Culture, Media and Sport. The Trustees are required to prepare accounts for each financial year in the form and on the basis determined by the Secretary of State for Digital, Culture, Media and Sport, with the consent of the Treasury and in accordance with the Charities Act 2011 and the Mission and Pastoral Measure 2011. The accounts are prepared on an accruals basis to show a true and fair view of the state of affairs of the CCT at the balance sheet date and of the income and expenditure and cash flows for that period. In preparing those accounts, the Trustees are required to:

The Trustees are responsible for ensuring that proper accounting records are kept of the CCT’s financial position and income and expenditure. They are also responsible for safeguarding the assets of the CCT and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. The Trustees are also responsible for ensuring that the Trustees' Report and other information included in the Annual Report is prepared in accordance with applicable law and United Kingdom Generally Accepted Accounting Practice.

The Accounting Officer for the Department for Digital, Culture, Media and Sport has designated the Chief Executive of The Churches Conservation Trust as the Accounting Officer for the CCT.

The Accounting Officer's responsibilities, including the responsibility for the propriety and regularity of the public finances for which the Trustees are accountable and for the keeping of proper records, are set out in the Non-Departmental Public Bodies 'Accounting Officers' Memorandum, issued by the Treasury and published in ‘Managing Public Money’.

Signed on behalf of the Trustees on: 22 June 2021

Sue Wilkinson Peter Aiers Interim Chair of the Trustees Accounting Officer

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10. GOVERNANCE STATEMENT

The Governance Statement describes how the CCT manages and controls its resources in delivering its strategic plan.

Achievement of the charity’s objectives entails taking certain risks which have been identified and require careful and on-going management. To address risk and ensure the CCT is best placed to meet its strategic and operational aims, the Accounting Officer and Board of Trustees have responsibility for maintaining a sound system of governance which supports the achievement of the policies, aims and objectives of the CCT. At the same time the system is in place to safeguard the CCT’s public funds and assets for which the Accounting Officer is personally responsible, in accordance with the responsibilities assigned them in Government Accounting.

Corporate Governance

The CCT is governed by a board of Trustees, including the Chair. The Trustees are appointed by Her Majesty the Queen, on the advice of the Archbishops of Canterbury and York, submitted through the Prime Minister. New Trustees are fully inducted into the CCT to better understand their responsibilities and the operational and strategic framework in which the CCT operates.

Trustees

The Trustees during the year were:

Peter Ainsworth Chair William Donaldson Canon Revd Tim Goode (from December 2020) Edward Harley OBE, DL Sir Simon Jenkins Beth McHattie (to September 2020) Liz Peace CBE Chair of the Finance and Audit Committee Carol Pyrah Chair of the Conservation Committee Sue Wilkinson Deputy Chair

The Board delegates some issues to its Finance and Audit Committee, Conservation Committee, and Health and Safety Committee. Terms of reference for each are agreed by the Board. These Committees report to the Board their discussions of relevant matters and advise on decisions, which are then taken by the Board. All Committees are advised and serviced by senior managers.

During the year to 31 March 2021, the Board and its Committees all met on a quarterly cycle. Minutes of the meetings, including attendance, are kept and approved by the Board at subsequent meetings. Trustee attendance at Board meetings was 100% (2019/20: 78%).

During the year the Board met to specifically review strategy and its own performance at a virtual away day.

The Finance and Audit Committee

The Finance and Audit Committee comprises three Trustees: Liz Peace (Chair), William Donaldson, Edward Harley and one external co-optee. It reviews: key risks and controls; the management of resources through review of the latest management accounts and end of year reserves predictions; and receives reports from management and the internal and external auditors on key risk areas. It also approves the final accounts subject to signing by the Board.

From these reviews the Committee is able to provide assurance to the Board on the CCT’s financial position and risk management.

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Conservation Committee

The Conservation Committee is chaired by a Trustee (Carol Pyrah) and comprises relevant experts, and senior representatives of other conservation organisations. It advises the Board on significant conservation and development matters relating to its 356 historic buildings. Having an expert Committee at such a high level in the CCT’s governance protects the organisation against legal, reputational, and other risks associated with the management of a large historic estate.

Highlights of Committee Reports

During the year, the Board of Trustees approved: updated safeguarding and anti-fraud policies; expenditure on a number of repair projects including Hemington, Tickencote, Evesham, Bungay and Swingfield; approval for vestings of Brougham, St Wilfred and North Hill, St Torney. The Board also approved the annual Health and Safely report, the plan and budget for 2021/22 and an updated Covid-19 budget.

Management Structure

Trustees employ a salaried Chief Executive to manage the organisation and implement the strategic objectives. The Chief Executive has a senior management team comprising a deputy chief executive and two other directors with specific regional and/or operational responsibilities. Each director has their own small team of staff who carry out a range of projects with the support of volunteers. The CCT’s operational teams are organised into three regions.

The CCT’s Chief Executive Officer is Peter Aiers.

Communication with Sponsors

The Accounting Officer and the other Directors hold six-monthly review meetings with officers in DCMS to discuss performance against targets and the three-yearly Funding Agreement, governance and other risk management matters. These meetings are also where the CCT is advised of actual and potential changes to Government legislation and requirements.

The Accounting Officer and members of the senior management team also meet on a quarterly basis with Officers of the Church Commissioners and DCMS to review the estate and its management, share information and discuss specific issues and future vestings. Broader discussions of progress and strategy take place through annual member-level meetings with the Church Commissioners and DCMS.

Audit

As part of their annual audit of the CCT’s accounts, the external auditors’ provide a Management Letter covering any identified control weaknesses. For 2020/21, no substantive weaknesses were raised (2019/20 zero) which provided the CCT with additional comfort over its internal controls. The CCT’s rolling three year internal audit plan considers strategic and operational risks and has been approved by the Finance and Audit Committee. It is updated annually to confirm audit prioritisation. All reports and management actions were reviewed by the Finance and Audit Committee.

Corporate Governance

The system of governance has continued in place in the CCT for the financial year ended 31 March 2021 and up to the date of approval of the Annual Report and Accounts. It accorded with HM Treasury guidance, including the Corporate Governance Code of Good Practice 2011 in so far as it is applicable to Arm’s Length Bodies, save in relation to the Code’s recommendation for a separate nominations committee.

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Remuneration

In 2020/21 no cost of living pay award or separate non-consolidated organisational bonus was paid to staff. All pay awards are subject to Trustee approval.

Gender Pay Gap

As at 31 March 2021 the CCT had a mean gender pay gap of 8% (March 2020: 9%). The median figure was 5% (March 2020: 0%). The below table illustrates the proportion of Female and Male employees in each pay quartile.

Women Men Total % Women in
Quartile		 2020: %
Women in
Quartile
Top Quartile 12 6 18 67% 56%
Upper Middle
Quartile		 13 6 19 68% 67%
Lower Middle
Quartile		 14 4 18 78% 72%
Lower Quartile 12 6 18 67% 65%
Total 51 22 73 70% 65%

Senior management remuneration

As at 31 March 2021, the highest paid director was paid in the £80,000 to £90,000 band. The ratio of the mid-point of this band, to the CCT’s median pay of £26,650, was 3.2 (2019/20: 3.3). The senior management team is defined as the directors of the CCT, and compromises the following roles: Chief Executive, Deputy Chief Executive/Director of Conservation, Finance Director and Director of Operations. The total remuneration of senior management was £396,350 (2019/20: £415,617).

Total remuneration includes salary, non-consolidated performance-related pay, benefits-in-kind and employer national insurance and pension contributions. It does not include severance payments and the cash equivalent transfer value of pensions.

Civil Service compensation scheme Exit packages

Exit Package Cost Band Number of compulsory
redundancies		 Number of other
departures agreed
<£10,000 0 0
£10,000 - £25,000 0 0
£25,000 - £50,000 0 0
Total 0 0

Redundancy and other departure costs have been paid in accordance with the provisions of the Civil Service Compensation Scheme, a statutory scheme made under the Superannuation Act 1972. Exit costs are accounted for in full in the year of departure.

Contracts

Senior management contracts have minimum notice periods of three months. Any termination payments would be subject to the provisions of the Civil Service Compensation Scheme, a statutory scheme made under the Superannuation Act 1972.

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Trade Union facility Time

The CCT complies with the Trade Union (Facility Time Publication Requirements) Regulations 2017. The total number of employees who were relevant union officials during 2020/21 was zero (2019/20: zero). As such zero time and zero remuneration was spent on facility time during the year (2019/20: zero).

Planning and Budgeting Process

The senior management team compiles the CCT’s business plan and budget on an annual basis. In 2018/19 CCT launched a new planning process that aimed to improve forward planning, budget management and allow for the longer preparation time required for more complex projects. It also ensures that there is a clear link between individual projects and organisational objectives and KPIs.

The process begins with management determining the CCT’s strategic and operational priorities for the next financial year. Risk management is integral to the business planning process. Each team then generate their own priorities, projects and budgetary requirements which it deems necessary to deliver the strategic aims within its area of responsibility as well as through crossteam working. The teams also identify key risks and their mitigation, feeding results through the main risk management process to the Senior Management Team (SMT).

SMT then review the individual team plans and priorities and prepare the national plan and budget, ensuring that all priorities are being met, resources appropriately allocated and risks managed. The plan and budget is subject to analysis by the Finance and Audit Committee and formal approval by the Board of Trustees.

Project Management

Individual projects are defined by project plans and budgets which feed into the team business plans. Cross-disciplinary project teams manage and report on individual projects within a scheme of delegated authority. Expenditure is governed by authorisation rules which ensure its sign-off at the appropriate level of seniority.

Performance Monitoring and Reporting

Trustees receive quantitative and qualitative reports against the national plan and budget at their quarterly meetings, with a full performance report every six months. These reports explain team and management actions that have led to positive variances and how adverse variances are being addressed.

Risk Management

In assessing risks and appropriate actions, the CCT’s approach is taken from the Treasury’s ‘Managing Public Money’. In addressing risks, the CCT will:

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The system of internal control is designed to manage risk to a reasonable level rather than to eliminate all risk of failure to achieve policies, aims and objectives. It can therefore only provide reasonable and not absolute assurance of effectiveness. The CCT’s system of internal control has been in place throughout the year up to the date of approval of the annual report and accounts, and accords with Treasury guidance. The system is based on an on-going process designed to:

The Trustees are satisfied that appropriate systems are in place to manage risk.

The Risk Register

Covid 19

At this point in time it is not possible to fully consider the ongoing impacts arising from COVID-19, however the Trustees have considered the possible risks and have put in place measures to maintain income and reduce future expenditure if required. The position will be kept under constant review and the Trustees will as required take necessary steps to ensure the group continues as a going concern.

Whistleblowing

The CCT is committed to the highest standards of accountability and transparency. A whistleblowing policy is in place that encourages staff to raise issues. Various reporting mechanism are in place for staff including direct access to our internal auditors.

Information Management

The CCT is registered with the Information Commissioner’s Office. The CCT suffered no significant protected personal data incidents during 2020/21 (2019/20: zero) and has not had to make any report on the loss of personal protected information to the Information Commissioner’s office. Controls are in place to monitor information management risk.

Approach to Fundraising

We hold our members, donors, volunteers and other supporters who fund our work in the highest regard and are committed to fundraising best practice based on the core principles of honesty, transparency, and accountability.

We are registered with, and are committed to, supporting and complying with the guidelines and directives of the Fundraising Regulator and the Fundraising Preference Service (FPS). We are also members of the Institute of Fundraising and follow the Fundraising Code of Practice. In 2020/21

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there were no failures to comply with standards, no complaints were received directly and no requests to be removed from our database via the Fundraising Preference Service.

Our fundraising activities are organised and coordinated by our own members of staff and/or by volunteers and friends groups. With the exception of legacies, and the distribution of our membership magazine; Pinnacle, we do not make use of external professional fundraisers or commercial participators.

A fuller description of our approach to fundraising along with our privacy and complaints policies are available from our website.

Sickness Absence Disclosure

During the year, staff were off work due to sickness for a total of 123 (2019/20: 189), an average of 1.7 days (2019/20: 2.7) per staff member. These figure exclude long term sickness. If long term absences are included, the total rises to 188 (2019/20: 235 days).

Consultancy and Contingent Labour Spend Disclosure

During the year-ending 31 March 2021, £15,762 (2019/20: £158,414) was spent on consultancy. £105,320 (2019/20: £267,756) was spent on temporary staff.

Tax Assurance Disclosure

Following the Review of Tax Arrangements of Public Sector Appointees published by the Chief Secretary to the Treasury on 23 May 2012, Government departments and their arm’s length bodies must publish information on their highly paid and/or senior off-payroll engagements. For the year ending 31 March 2021, the CCT did not have any off-payroll engagements.

Review of Effectiveness

As Accounting Officer, I have responsibility for reviewing the effectiveness of the Governance Statement. My review of the system’s effectiveness is informed by the work of the internal auditors, the senior managers within the CCT who have responsibility for the development and maintenance of the governance and control framework, and comments made by the external auditors in their Management Letter and other reports, including health and safety assessments.

I am satisfied from the results of my on-going review that risk management processes and corresponding systems are in place and give me reasonable assurance of their effectiveness.

Risk management is an on-going process and will continue to be integral to strategic and operational planning and to the delivery of the objectives and targets of the CCT. Risk management practice and procedure will also continue to be reviewed and developed in order to ensure effective control, good management and accountability. No significant control issues arose during the year.

Peter Aiers Accounting Officer and Chief Executive

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11. INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF THE CHURCHES CONSERVATION TRUST

We have audited the financial statements of Churches Conservation Trust (‘the parent charity’) and its subsidiaries (‘the group’) for the year ended 31 March 2021 which comprise the Consolidated Statement of Financial Activities, the Consolidated and Charity Balance Sheets, the Consolidated Statement of Cash Flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

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

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

Other information

The other information comprises the information included in the Report of the Trustees, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of 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.

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Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors’ Report included within the Report of the Trustees.

We have nothing to report in respect of the following matters in relation to which the 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 set out on page 23, the trustees (who are also the directors of the parent charity 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 group’s and the parent charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the 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. Based on our understanding of the charity and its activities, we identified that the principal risks of non-compliance with laws and regulations related to the Charities Act 2011, UK tax legislation, pensions legislation, employment regulation and health and safety regulation, anti-bribery, corruption and fraud, money laundering, non-compliance with implementation of government support schemes relating to COVID-19, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements, such as the Companies Act 2006 and the Charities Statement of Recommended Practice.

We evaluated the trustees’ and management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks were related to posting manual journal entries to manipulate financial performance, management bias through judgements and assumptions in significant accounting

Page 30 of 47

REPORT OF TRUSTEES AND ACCOUNTING OFFICER

estimates, in particular in relation to use of restricted funds, and significant one-off or unusual transactions.

Our audit procedures were designed to respond to those identified risks, including non-compliance with laws and regulations (irregularities) and fraud that are material to the financial statements. Our audit procedures included but were not limited to:

Our audit procedures in relation to fraud included but were not limited to:

There are inherent limitations in the audit procedures described above and the primary responsibility for the prevention and detection of irregularities including fraud rests with management. As with any audit, there remained a risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal controls.

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 the audit report

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

Signed:

David Hoose (Senior Statutory Auditor)

for and on behalf of Mazars LLP

Chartered Accountants and Statutory Auditor

6 Sutton Plaza, Sutton Court Road, Sutton, Surrey SM1 4FS Date: 2[nd] July 2021

Page 31 of 47

FINANCIAL STATEMENTS

12. FINANCIAL STATEMENTS

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 MARCH 2021

Notes
INCOME
Donations & Legacies
Income from Charitable Activities
Income from Investments
Other Trading Activities
TOTAL INCOME
Expenditure on Raising Funds
Fundraising and Communications
Expenditure on charitable
activities
Church Repairs and Maintenance
Keeping Churches Open
Total charitable activities
TOTAL EXPENDITURE
3
Net income / (expenditure)
Other recognised gains and losses
Unrealised gains / (losses)
8
Net movement in funds
Balances brought forward at
1 April 2020
Balances carried forward at 31
March 2021
Unrestricted
Funds
Restricted
Funds
Endowment
Funds
Total
2021
Total
2020
£
£
£
£
£
457,242
255,583
-
712,825
654,626
5,052,592
4,967,291
-
10,019,883
7,192,965
533
17,348
-
17,881
24,165
339,590
13,976
-
353,566
577,617
Unrestricted
Funds
Restricted
Funds
Endowment
Funds
Total
2021
Total
2020
£
£
£
£
£
457,242
255,583
-
712,825
654,626
5,052,592
4,967,291
-
10,019,883
7,192,965
533
17,348
-
17,881
24,165
339,590
13,976
-
353,566
577,617
5,849,957
5,254,198
-
11,104,155
8,449,373

(808,538)
(83,328)
-
(891,866)
(1,053,011)
(3,365,431)
(4,971,653)
-
(8,337,084)
(5,242,057)
(1,675,075)
(219,413)
-
(1,894,488)
(2,185,203)
(5,040,506)
(5,191,066)
-
(10,231,572)
(7,427,260)
(5,849,044)
(5,274,394)
-
(11,123,438)
(8,480,271)
913
(20,196)
-
(19,283)
(30,898)
-
-
81,259
81,259
(41,749)
14,963
(20,196)
81,259
61,976
(72,647)
429,651
571,507
504,957
1,506,115
1,578,761
430,564
551,311
586,216
1,568,091
1,506,114

All amounts relate to continuing activities; there are no other recognised gains or losses which are not included above.

Page 32 of 47

FINANCIAL STATEMENTS

STATEMENTS OF FINANCIAL POSITION AS AT 31 MARCH 2021

Notes
FIXED ASSETS
Intangible fixed assets
6
Tangible fixed assets
7
Investment in Subsidiary
Fixed assets investments
8
CURRENT ASSETS
Debtors
9
Cash at bank and in hand
Creditors
Amounts falling due
within one year:
10
NET CURRENT ASSETS
NET ASSETS
11
FUNDS
Endowment funds
11
Income funds
11		 Group
Charity
Group
Charity
2021
2021
2020
2020
£
£
£
£
-
-
357
357
-
-
-
-
-
1
-
1
407,045
407,045
325,786
325,786
407,045
407,046
326,143
326,144
2,179,914
2,165,438
1,505,447
1,498,767
1,312,647
1,266,542
1,459,086
1,379,491
3,492,561
3,431,980
2,964,533
2,878,258
(2,331,515)
(2,273,434)
(1,784,562)
(1,714,627)
1,161,046
1,158,546
1,179,971
1,163,631
1,568,091
1,565,592
1,506,114
1,489,775
586,216
586,216
504,957
504,957
981,875
979,376
1,001,157
984,818
1,568,091
1,565,592
1,506,114
1,489,775

Approved and authorised for issue by the Trustees on: 22 June 2021 Signed on their behalf by:

Sue Wilkinson

Interim Chair of the Trustees

Page 33 of 47

FINANCIAL STATEMENTS

CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDING 31 MARCH 2021

Cash outflow from operating activities
Net expenditure
Adjustments for:
Depreciation
Investment Income
Trade and other receivables
Trade and other payables
Net cash (outflow) from operating activities
Cash flows from investing activities
Interest received
Net cash inflow / (outflow) from investing activities
Net (decrease) in cash and cash equivalents
Balance as at 1 April
Balance as at 31 March		 2021
2020
£
£
(19,283)
(30,898)
357
33,922
(17,881)
(24,165)
(674,467)
(557,567)
546,954
189,578
(164,320)
(389,130)
17,881
24,165
(146,439)
(364,965)
1,459,086
1,824,051
1,312,647
1,459,086

Page 34 of 47

NOTES TO THE ACCOUNTS

13. NOTES TO THE ACCOUNTS

1.

(a) Accounting Policies

The accounts have been prepared in accordance with the Accounts Direction issued by the Department for Digital, Culture, Media and Sport, 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) (effective 1 January 2019) - (Charities SORP FRS 102), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). The main accounting policies, which have been applied consistently, are set out below.

(b) Basis of Consolidation

The consolidated accounts of the group incorporate the accounts of the charity and its subsidiary undertakings, all of which were prepared to 31 March 2021. The trading results of the subsidiary undertakings as shown in note 16 are consolidated on a line-by-line basis within the consolidated statement of comprehensive income.

(c) Income Income from Charitable Activities includes Grant-in-Aid from the Department for Digital, Culture, Media and Sport amounting to £2,788,000 (2019/20: £2,608,000) and a grant from the Church Commissioners amounting to £1,430,000 (2019/20: £1,430,000). Grant-in-Aid, unless for oneoff specified purposes, is allocated to general unrestricted purposes and is taken to the Income Statement in the year to which it relates. Grants and other income that is awarded subject to specific performance conditions are recognised when the performance conditions for their receipt have been met. Donations and Investment income are included in the accounts in the year they are receivable. Legacies are included when the CCT is notified by the personal representatives of an estate that payment will be made or property transferred and the amount involved can be quantified with reasonable certainty.

(d) Expenditure

Expenditure is included in the Statement of Comprehensive Income on an accruals basis. The CCT is not registered for VAT and accordingly, expenditure is shown gross of VAT.

Certain expenditure is directly attributable to specific activities and has been included in those cost categories. Head office premises costs are apportioned on the basis of the space occupied by particular groups of staff. Grant expenditure is recognised when there is a commitment to make a grant payment and all relevant conditions of the award have been met. Certain other costs, which are attributable to more than one activity, are apportioned across cost categories on the basis of an estimate of the proportion of time spent by staff on those activities. Governance costs include costs associated with meeting the constitutional and statutory requirements of the CCT and include the audit fees and costs linked to the strategic management of the CCT. These costs are apportioned between Expenditure on Raising Funds and Expenditure on Charitable activities.

(e) Fund Accounting

Unrestricted funds are available for use at the discretion of the Trustees in furtherance of the general objectives of the CCT. Restricted funds are funds subject to specific restrictions imposed by donors. Permanent endowment funds are funds which the donor has stated are to be held as capital with income being used for church repairs and maintenance. Expendable endowment funds are funds which the donor has stated, along with the income generated, can be used for church repairs and maintenance.

(f) Tangible Fixed Assets The Accounts Direction issued to the CCT by the Department for Digital, Culture, Media and Sport requires that tangible fixed assets are accounted for by modified historic cost accounting. However, the Trustees consider that the adjustments required to account for the tangible fixed

Page 35 of 47

NOTES TO THE ACCOUNTS

assets by modified historic cost accounting are immaterial and consequently, tangible fixed assets are accounted for by historic cost accounting.

Where individual tangible fixed assets exceed a value of £1,000, they are capitalised. They are stated at cost, which represents their purchase cost, together with any incidental costs of acquisition less accumulated depreciation.

Depreciation is calculated so as to write off the cost of assets, less their estimated residual values, on a straight line basis over the expected useful economic lives of the assets concerned. The principal annual rates used for this purpose are: Tenant’s improvements: 20%; Furniture and fittings: 20%; and Equipment: 25%.

(g) Intangible Fixed Assets

Intangible fixed assets, intellectual property owned by the CCT, are included. They are capitalised at cost where they exceed a value of £1,000 and are depreciated over an estimated useful life of four years.

(h) Fixed Asset Investments

Fixed asset investments are stated at their year-end middle market value. Investments vested with churches are accounted for at their market value at the date of vesting. As a result, the consolidated statement of comprehensive income includes those unrealised gains and losses arising from the revaluation of the investment portfolio at the year end.

(i) Finance and Operating Leases The CCT has no Finance leases. Operating lease costs are charged to the Statement of Comprehensive Income as incurred.

(j) Heritage Assets

The CCT maintains 356 (2019/20: 356) churches in support of the CCT’s objective to protect these historic churches for the benefit of future generations. The Trustees consider that owing to the incomparable nature of the churches vested in the CCT, conventional valuation approaches lack sufficient reliability and that even if valuations could be obtained, the costs would be onerous compared with the additional benefits derived by the CCT and the users of these accounts. As a result, no value is reported for these assets in the CCT’s balance sheet. This approach is also in accordance with the Statement of Recommended Practice 'Accounting and Reporting by Charities' 2019 (FRS 102).

The cost of associated major repairs is reported in the Income Statement in the year in which it is incurred.

Further information is given in note 12 to the accounts.

(k) Pensions Past and present employees are covered by the provisions of the Principal Civil Service Pension Schemes (PCSPS) which are described in Note 5. The defined benefit schemes are unfunded. The CCT recognises the expected cost of these elements on a systematic and rational basis over the period during which it benefits from employees' services by payment to PCSPS of amounts calculated on an accruing basis. Liability for payment of future benefits is a charge on the PCSPS. In respect of the defined contribution schemes, the CCT recognises the contributions payable for the year.

(l) Taxation

The CCT is a registered charity and takes advantage of the exemptions available to charitable organisations. No provision has been made for taxation on its current activities.

Page 36 of 47

NOTES TO THE ACCOUNTS

(m) Going Concern

COVID-19

The Trustees have reviewed detailed cash flow projections to 31 March 2022 and have agreed detailed budgets for the year ended 31 March 2022. Both sources of income and types of expenditure have been reviewed. Whilst one of the main charitable purposes of the CCT is to maintain the historic churches vested in the CCT, the level of this necessary expenditure is at the discretion of the Trustees and can be adjusted during the year. The Trustees have also considered the Group's working capital and capital expenditure requirements. As a result of the foregoing the Trustees are satisfied that it is appropriate to prepare the accounts on a going concern basis.

The charity’s business activities, together with the factors likely to affect its future performance are set out in sections 3 to 9 of this report. Trustees consider the CCT has sufficient reserves ‐ together with long term funding agreements with both DCMS and the Church Commissioners and as a consequence, Trustees believe that the Charity is well placed to manage its risks successfully. Trustees have a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future. Thus they continue to adopt the going concern basis of accounting in preparing the annual financial statements.

No other material uncertainties that may cast significant doubt about the ability of CCT to continue as a going concern have been identified by the Trustees.

Page 37 of 47

NOTES TO THE ACCOUNTS

2. Comparative SOFA 2019/20

Notes
INCOME
Donations & Legacies
Income from Charitable Activities
Income from Investments
Other Trading Activities
TOTAL INCOME
Expenditure on Raising Funds
Fundraising and Communications
Expenditure on charitable activities
Church Repairs and Maintenance
Keeping Churches Open
Total charitable activities
TOTAL EXPENDITURE
3
Net income/(expenditure)
Other recognised gains and losses
Unrealised gains on investments
8
Net movement in funds
Balances brought forward at
1 April 2019
Balances carried forward at 31 March
2020
Unrestricted
Funds
Restricted
Funds
Endowment
Funds
Total
2020
£
£
£
£
516,805
137,821
-
654,626
4,327,460
2,865,505
-
7,192,965
3,537
20,628
-
24,165
571,911
5,706
-
577,617
5,419,713
3,029,660
-
8,449,373
(870,759)
(182,252)
(1,053,011)
(2,757,151)
(2,484,906)
(5,242,057)
(1,849,154)
(336,049)
(2,185,203)
(4,606,305)
(2,820,955)
(7,427,260)
(5,477,064)
(3,003,207)
(8,480,271)
(57,351)
26,453
-
(30,898)
-
-
(41,749)
(41,749)
(57,351)
26,453
(41,749)
(72,647)
487,002
545,053
546,706
1,578,761
429,651
571,506
504,957
1,506,114

All amounts relate to continuing activities; there are no other recognised gains or losses which are not included above.

Page 38 of 47

NOTES TO THE ACCOUNTS

3. Expenditure

3.
Expenditure
Expenditure on Raising Funds
Fundraising and communications
Expenditure on Charitable
Activities
Church repairs and maintenance
Keeping churches open
Total Charitable Activities
TOTAL EXPENDITURE		 Direct staff
costs
Other direct
costs
Support
costs
2021
Total
2020
Total
£
£
£
£
£
504,613
17,862
369,391
891,866
1,053,011
837,371
7,171,032
328,681
8,337,084
5,242,057
1,215,368
193,909
485,211
1,894,488
2,185,203
2,052,739
7,364,941
813,892
10,231,572
7,427,260
2,557,352
7,382,803
1,183,283
11,123,438
8,480,271

The church repairs and maintenance figure above includes a grant of £1.1m (2019/20: £1.4m) to Churches Conservation, restricted for furtherance of the CCT’s charitable objects.

The CCT has spent all of its grant-in-aid received during the year and any reserves carried forward relate wholly to other sources of funding. The Trustees neither received nor waived any emoluments during the year (2019/20: nil). Zero (2019/20: One) received reimbursements for travel and subsistence (2019/20: £518). Unclaimed Trustee expenses for the year are estimated at £1,000.

Net income is stated after charging Auditors’ Remuneration of £19,740 (2019/20: £18,000)

ALLOCATED SUPPORT
COSTS
Staff costs
Office costs
Communications
IT costs
Professional
consultancy
Depreciation
Governance
Fundraising
Church
repairs &
maint.
Keeping
churches
open
2021
Total
2020
Total
£
£
£
£
£
172,931
153,872
227,152
553,955
619,071
82,611
73,507
108,513
264,631
365,115
13,862
12,334
18,207
44,403
115,796
81,428
72,454
106,959
260,841
252,909
9,260
8,239
12,163
29,662
182,377
112
99
146
357
33,923
9,188
8,176
12,070
29,434
32,050
369,392
328,681
485,210
1,183,283
1,601,241

Support costs are apportioned on the basis of staff time. Under FRS102 Governance costs have been removed from the Statement of Comprehensive Income and are now allocated across the main expenditure areas on a staff time basis.

Page 39 of 47

NOTES TO THE ACCOUNTS

4. Salaries, Employment Costs and Expenses

Gross salaries
Social security costs
Pension costs
Travel expenses
Staff training
Recruitment costs
Restructuring costs
Staff admin costs
Number of employees as at 31 March		 2021
Total
2020
Total
£
£
2,223,170
2,341,047
201,878
141,129
552,997
446,058
37,715
218,049
5,002
23,653
9,675
36,639
-
14,843
80,869
8,573
3,111,306
3,229,991
73
71

As at 31[st] March four employees (2019/20: two) earned over £60,000 during 2020/21, with three salaries falling in the £60,000 to £70,000 band, and one in the £80,000 to £90,000 band. Total remuneration for the senior management team in 2020/21 was £396,350 (2019/20: £415,617). The total number of employees on 31 March 2021 was 73, which includes 16 employees on fixed term contacts (2019/20: 21). There were no interim agency workers (2019/20: 1).

5. Pensions

The Principal Civil Service Pension Scheme (PCSPS) and the Civil Servant and Other Pension Scheme (CSOPS) – known as “alpha” – are unfunded multi-employer defined benefit schemes but (insert employer’s name) is unable to identify its share of the underlying assets and liabilities.

The scheme actuary valued the PCSPS as at 31 March 2016. You can find details in the resource accounts of the Cabinet Office: Civil Superannuation.

For 2020-21, employers’ contributions of £528,431 were payable to the PCSPS (2019-20 £423,000) at one of four rates in the range 26.6% to 30.3% of pensionable earnings, based on salary bands.

The Scheme Actuary reviews employer contributions usually every four years following a full scheme valuation. The contribution rates are set to meet the cost of the benefits accruing during 2020-21 to be paid when the member retires and not the benefits paid during this period to existing pensioners.

Employees can opt to open a partnership pension account, a stakeholder pension with an employer contribution. Employers’ contributions of £23,857 (2019-20 £23,000) were paid to one or more of the panel of three appointed stakeholder pension providers. Employer contributions are age-related and ranged from 8% to 14.75%.

Employers also match employee contributions up to 3% of pensionable earnings. In addition,

Page 40 of 47

NOTES TO THE ACCOUNTS

employer contributions of £708 (2019-20 £949), 0.5% of pensionable pay, were payable to the PCSPS to cover the cost of the future provision of lump sum benefits on death in service or ill health retirement of these employees.

Further details about the Civil Service pension arrangements can be found at the website www.civilservicepensionscheme.org.uk

6. Intangible Fixed Assets

GROUP AND CHARITY
COST
At 1 April 2020 and 31 March 2021
DEPRECIATION
At 1 April 2020
Charge for the year
At 31 March 2021
NET BOOK VALUE
At 31 March 2021
At 31 March 2020		 Total
£
191,301
190,944
357
191,301
0
357

7. Tangible Fixed Assets

Tangible Fixed Assets
GROUP AND CHARITY
COST
At 1 April 2020 and 31 March 2021
DEPRECIATION
At 1 April 2020
Charge for the year
At 31 March 2021
NET BOOK VALUE
At 31 March 2021
At 31 March 2020		 Tenants'
Furniture &
Total
Improvements
Equipment
£
£
£
39,619
105,544
145,163
39,619
105,544
145,163
-
-
-
39,619
105,544
145,163
-
-
-
-
-
-

Page 41 of 47

NOTES TO THE ACCOUNTS

8. Fixed Asset Investments

8.
Fixed Asset Investments
GROUP AND CHARITY
At 1 April 2020
Sales
Purchases
Movement in cash
Net unrealised profit on revaluation
At 31 March 2021
Historic cost at 31 March 2021		 Permanent
Total
Endowment Funds
Funds
£
£
325,786
367,535
68,034
27,261
(78,611)
(22,371)
10,577
(4,890)
81,259
(41,749)
407,045
325,786
255,361
255,361

The unrealised profit was calculated as a result of the CCT’s annual revaluation of its assets.

9. Debtors

All amounts fall due within one year.
Listed Places of Worship Grant Scheme
Due from grant giving bodies
Other debtors and prepayments		 2021
2021
2020
2020
Group
Charity
Group
Charity
£
£
£
£
504,058
504,058
79,405
79,405
1,385,569
1,385,569
1,216,146
1,216,146
290,287
275,811
209,896
203,216
2,179,914
2,165,438
1,505,447
1,498,767

10. Creditors

Amounts falling due within one year.

Trade creditors
Accruals and deferred income
Grant payment due to Foundation
Other creditors		 2021
2021
2020
2020
Group
Charity
Group
Charity
£
£
£
£
859,685
836,246
67,569
61,459
80,752
38,752
144,289
68,139
1,061,610
1,061,610
1,428,303
1,428,303
329,468
336,826
144,401
156,726
2,331,515
2,273,434
1,784,562
1,714,627

The CCT paid 99.5% of supplier invoices within 30 days of receipt.

Page 42 of 47

NOTES TO THE ACCOUNTS

11. Funds

GROUP
Unrestricted funds
Restricted funds
Permanent Endowment
Expendable Endowment
CHARITY
Unrestricted funds
Restricted funds
Permanent Endowment
Expendable Endowment		 Balance as at
1 April 2021
Income
Expenditure
Unrealised
gains on
investments
Balance as at
31 March 2021
£
£
£
£
£
429,651
5,849,957
(5,848,044)
-
430,564
571,507
5,254,198
(5,274,394)
-
551,311

325,786
-
-
81,259
407,045
179,171
-
-
-
179,171
1,506,115
11,104,155
(11,123,438)
81,259
1,568,091
Balance as at
1 April 2021
Income
Expenditure
Unrealised
gains on
investments
Balance as at
31 March 2021
£
£
£
£
£
413,311
5,815,923
(5,801,171)
428,065
571,507
5,254,198
(5,274,393)
551,311

325,786
-
81,259
407,045
179,171
-
-
179,171
1,489,775
11,070,121
(11,075,564)
81,259
1,565,592

Permanent Endowment Funds comprise investments held by the CCT to provide income for certain specific churches vested in the Trust.

Expendable Endowment funds comprise assets held by the CCT which, together with the income generated, can be used for church repairs and maintenance.

Restricted Funds are an accumulation of smaller sums of money donated by the public for expenditure on the church for which they were given. A separate fund is maintained for each vested church with income, known collectively as the Specific Churches Funds. Expenditure funded by grants for specific projects is also accounted for through restricted funds. The largest five church balances at 31 March 2021 relate to: Stirchley St James; Inglesham St John; Sudbury St Peter’s; Kings Lynn St Nicholas’ Chapel; and Croome d’Abitot St Mary Magdalene.

12. Heritage Assets

The CCT maintains 356 churches which have been acquired since the CCT was established in 1969. These churches are those which have fallen into disuse and are considered to be sufficiently important to be conserved and maintained for the benefit of future generations. Although churches are transferred from the relevant Diocese at no cost to the CCT, they often arrive with urgent repair needs and no accompanying endowment, creating an increasing long term burden on the CCT’s already limited finances. Every three years, one third of the CCT’s estate is reviewed for repair liabilities.

Additions in 2020/21 : None

Disposals in 2020/21: None

Page 43 of 47

NOTES TO THE ACCOUNTS

Five year summary of heritage asset transactions

The number of Churches vested in the CCT and disposals are shown in the table below:

2020/21 2019/20 2018/19 2017/18 2016/17
Churches vested in the CCT 356 356 353 353 350
New Vestings 0 3 - 3 1
Disposals - - - - -

13. Operating Lease Commitments

The commitment in respect of operating leases were:
Leases expiring under one year:
Land and Buildings
Leases expiring between two and five years:
Land and buildings		 2021
2020
£
£
99,900
99,000
62,438
171,563
162,338
270,563

Lease payments for Land and Buildings amounting to £117,802 were made in the year (2019/20: £121,928).

14. Repair Commitments

At 31 March 2021 the CCT had contracted for the following repair projects:

2021 2020
£ £
2020/21 Programme 572,376 45,559

At 31 March 2021, the Trustees had approved expenditure totalling £8.2 million (March 2020: £8.4 million) which, apart from the above programme expenditure, had not been contracted for at 31 March 2021.

15. Net Assets

GROUP
Tangible fixed assets
Intangible fixed assets
Investments
Cash
(creditors) less debtors
Total		 Unrestricted
Funds
Restricted
Funds
Endowment
Funds
2021
Total
2020
Total
£
£
£
£
£
-
-
-
-
-
-
-
-
-
357
-
-
407,045
407,045
325,786
1,293,651
(160,175)
179,171
1,312,647
1,459,086
(863,087)
711,486
-
(151,601)
(279,115)
430,564
551,311
586,216
1,568,091
1,506,114

Page 44 of 47

NOTES TO THE ACCOUNTS

CHARITY
Tangible fixed assets
Intangible fixed assets
Investments
Cash
(creditors) less debtors
Total		 Unrestricted
Funds
Restricted
Funds
Endowment
Funds
2021
Total
2020
Total
£
£
£
£
£
-
-
-
-
-
-
-
-
-
357
-
-
407,045
407,045
325,787
1,247,546
(160,175)
179,171
1,266,542
1,379,491
(819,481)
711,486
-
(107,995)
(215,860)
428,065
551,311
586,216
1,565,592
1,489,775

16. Trading Subsidiary

The CCT has a trading subsidiary, Churches Conservation Trust Enterprises Ltd (company number 08125965). Summary results are included below.

Turnover
Cost of Sales
Overhead costs
Profit
Tax
Distribution
Operating Profit
Current Assets
Creditors
Net Assets
Profit and Loss account
Share Capital
Total Shareholder’s funds		 2021
2020
£
£
72,379
177,618
(75,762)
(150,607)
(8,303)
(8,672)
(11,686)
18,339
(1,655)
-
(500)
(9,532)
(13,841)
8,807
2021
2020
74,897
100,593
(72,399)
(84,253)
2,498
16,340
2,497
16,339
1
1
2,498
16,340

17. Related Party Transactions

The CCT is sponsored by DCMS and the Church Commissioners. The Department for Digital, Culture, Media and Sport is regarded as a related party and transactions with the Department are fully disclosed in the notes to the accounts.

Page 45 of 47

NOTES TO THE ACCOUNTS

Churches Conservation (charity number 1150968), established during 2012/13, and shares a minority of its Trustees with the CCT. £680,312 was received from Churches Conservation in 2020/21 (2019/20: £645,000). A grant of £1,061,608 was paid to Churches Conservation in 2019/20 (2019/20: £1,428,000).

As at 31 March 2021, CCT had a creditor balance of £1,061,608 (£1,428,000 at 31 March 2020) and a debtor balance of £641,764 (£369,000 at 31 March 2020).

The CCT’s Chief Executive and Finance Director serve as unremunerated Directors of the CCT’s trading subsidiary, Churches Conservation Trust Enterprises Ltd.

18. Post balance sheet events

None.

19. Value of Volunteers

The CCT relies heavily on the contribution made by volunteers and Friends Groups’ to achieve its objectives. All of whose work helps enormously to enable the work of and help sustain the CCT.

Some 1,800 members of the public usually volunteer for the CCT and many are provided with training and support as a part of this activity. Due to our sites being closed for the majority of the year, it has not been possible to collect volunteer data for 2020/21. In 2019/20, based on responses to a volunteer survey, it was been calculated that our volunteers work 110,810 (2018/19: 126,980) hours per annum. If we were to value them at £8.21 per hour (national minimum wage for over 25’s), the economic worth of the work they did for the year-ended 31 March 2020 amounted to £909,750 (2018/19: £994,253).

Page 46 of 47

NOTES TO THE ACCOUNTS

20. Acknowledgements

The CCT wishes to record its thanks for the continuing help and support it receives that enables it to do its work across its 356 churches. The list below notes the Trust’s sponsors (who provide its Statutory Grant), the Trusts and Foundations, Friends of Churches, other organisations and individuals that, in the year, gave generously to the Trust. We are also grateful to those who would like their support to remain anonymous

The Trust’s Key Sponsors

The Department for Digital, Culture, Media and Sport

The Church Commissioners

National Lottery Heritage Fund Cultural Recovery Fund Historic England The Department of Education

Chancel Club

Ralph & Elizabeth Aldwinckle Michael Bartlett Stephen Chater Adrian Clark Tim Clarke Stephen Dawson & Tom Peers William Donaldson Judith Donovan CBE James Gilpin Tim Harris Rupert Lycett Green Professor Vincent Porter Michael Rimmer Professor Andrew Spicer Margaret Thornton

Vice Presidents and Patrons

Baroness Kay Andrews OBE Lord Brooke of Sutton Mandeville CH, PC Debbie Dance MSc, MRICS, FRSA The Rt Hon Frank Field MP, DL Dame Liz Forgan DBE Dr Loyd Grossman CBE, FSA Jools Holland OBE, DL Dr Bettany Hughes OBE Dr Janet Townsend-Stojic

Bulmer-Thomas Circle

Peter Aiers Chris Kenny Professor Victor Bulmer-Thomas CMG, OBE Mark Kirby Jonathan Clowes Christopher Knight The Revd. Richard Coles Peter & Pamela Mansfield Lord Patrick Cormack John Newman FSA Alison Dumbell Alison Oliphant John Goodall Colin & Brenda Soden Edward Harley OBE, DL Michael Walker Philippa Hudson Miranda Wilson

Donors

Dr John & Mrs Lucia Annear Ian Lennox Ned & Neva Asplundh Robert McCracken QC John & Audrey Barkshire Colin McCorquodale Simon Barrett Ronald Mitchell William Dove John Norman Mark Nicholas Mason Ellis John Osborn CBE Dr Norma O'Flynn Bob & Claire Stacey Michael Fowle CBE, FCA Lesley Thomson Peter Gent Simon & Noni de Zoete

Page 47 of 47

NOTES TO THE ACCOUNTS

Professor Richard Jenkyns Corporate Partners

E-Bound AVX Ltd Ecclesiastical Starck Uberoi Solicitors Ltd

Trusts, Foundations and Organisations

Allchurches Trust Architectural Heritage Fund Babergh & Mid Suffolk District Council Bayfield Charitable Trust Bolton Council

Divisional Fund of Bob Banks – Evesham Councillor Divisional Fund of John Smith – Evesham Councillor Fitzwilliam Wentworth Amenity Trust Friends of All Saints, East Horndon Friends of Botolphs Church Friends of Old Christ Church, Waterloo Friends of St Mary's Church, Bungay Friends of St Mary's, Stainburn Friends of St Peter & St Paul, Albury Harrison's Charity J Paul Getty Jnr Charitable Trust Rupert & Elizabeth Nabarro Charitable Trust Shrewsbury Town Council Sir John Priestman Charity Trust

Suffolk County Councillor David Richie from his Locality Budget Suffolk County Councillor John Field from his Locality Budget The Christmas Carol and Summer Evensong congregations of St Peter ad Vincula, Colemore The Fairfield Charitable Trust The Geoffrey Watling Charity The Ian Askew Charitable Trust The Loppylugs & Barbara Morrison Charitable Trust The Osberton Trust The Parish of Christ The King, Paola, Malta Giuseppe Piero Mastrovalerio, Sicily, Italy The Prynce's Holme Lacy Charity The Spiller Trust The WGFJM Charitable Trust Tom Hall Charitable Trust Worcestershire County Council.

Pledged gifts in wills

Gifts in wills play an important and much valued part in supporting the work of the Trust. We would like to thank the following named donors and those who wish to remain anonymous for pledging a gift for the Trust in their wills:

Christopher Anderson Nigel Benford Darrell Buttery Richard Digby Day David Flemington Paul Mollard Robert Perrin Howard & John Pescott

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CCS 0521507066 ISBN 978-1-5286-2729-0