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2022-12-31-accounts

Church Branch

Accounts

for the year ended 31st December 2022

Wenn Townsend

Chartered Accountants

Oxford

Church Branch

Charity Number

261304

Ex-officio Trustees

Vicar of St Michael at the North Gate

Rev A Buckley

The Wardens of St Michael at the North Gate Mr M Lebus Mrs P Warner

The Rector of Lincoln College The Principal of Jesus College

Prof H Woudhuysen

Sir Nigel Shadbolt

Nominative Trustees

Ms R Loseby Mr M Lear (Deceased 6th May 2022) Ms S Shibli Miss P Dailey Mr R Earl Mr I Laing

Clerk to the Trustees

Mr R F Sheppard

Assistant Clerk

Mrs J Steele

Address

Cornmarket Oxford

Auditors

Wenn Townsend

Oxford OX1 3LE

Bankers

Barclays Bank plc PO Box 858 Wytham Court 11 West Way Botley Oxford

Investment Managers

CCLA Senator House 85 Queen Victoria Street London EC4V 4ET

Chartered Surveyors

Savills (UK) Ltd 33 Margaret Street

London W1G 0JD

Solicitors

Mills and Reeve LLP 24 William Street London EC4R 9AT

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Church Branch

Report for the year ended 31st December 2022

Reference and administrative information

Please refer to page 1

Structure, Governance and Management

Commission on 18th

February 1991. The body of Trustees consists of five ex-officio trustees and six trustees nominated by the Parochial Church Council of St Michael at the North Gate with St Martin and All Saints, Oxford. The Scheme provides that a person appointed may be, but need not be, a member of the nominating body. A salaried clerk and an assistant clerk are employed. The Trustees are referred to as the Feoffees.

On appointment a new Feoffee meets the Chairman of the Feoffees, the Incumbent of the Parish of St. Michael at the Northgate and the Clerk to the Feoffees and is sent the following documents:

A statement of the experience and expertise of other Feoffees

A new Feoffee is required to complete the following:

A Register of skills

(These Registers and Declaration are also completed by each Feoffee annually.)

The Clerk shows new Feoffees the properties owned by the Feoffees in central Oxford, and they are briefed on the rity are also Trustees of The Church Houses Relief in Need Charity, and all meetings are joint meetings.

Full meetings of the Feoffees are held quarterly and additional meetings are called as and when required. Major decisions are taken at these meetings which ensures that the Feoffees exercise full and effective control of the decision making process. Four such meetings were held in 2022. These meetings are preceded by meetings of the Property and Investment Committee, formed in 2021 of those Feoffees with skills in investment and property management, to consider in detail financial and investment matters and to make recommendations to the following meetings of all the Feoffees.

d considered the major risks in these areas. The Trustees consider the Charity's systems to be such that these risks are mitigated to an acceptable level.

During the year, Professor Katrin Kohl, Vice-Principal of Jesus College, attended meetings in place of Sir Nigel Shadbolt.

Objectives and Activities

Summary of the purposes of the charity as set out in its governing document

In accordance with the terms of the Scheme income of the Charity is applied first to the maintenance of the property of the Charity and to the expenses of management of the Charity. It is then applied to defray the cost of repairs to the fabric, furniture, fittings and organ of the Parish Church and of insurance of the Parish Church, to the maintenance of music and the provision of music therein, in aid of the stipends of clergy officiating at the Parish Church, and in making grants for such religious and other charitable purposes as the Feoffees decide after consultation with the Parochial Church Council. Although the charity has wide discretion in respect of making grants the Feoffees have focussed primarily on assisting charities addressing local needs.

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Church Branch

for the year ended 31st December 2022

Summary of the main activities in relation to those purposes for the public benefit, in particular, the activities, projects or services identified in the accounts

A. To defray the cost of repairs to the fabric, furniture, fittings and organ of the Parish Church and of insurance of the Parish Church

The Parish Church of St Michael at the North Gate is situated in the centre of Oxford where its tower, built shortly before the Norman Conquest, is the oldest surviving building. By covering the costs of repair and maintenance of this historic church the charity ensures that the church is in a fit state to allow public access (including tourists, worshippers and those seeking a quiet space) and that the church continues to host an active community in the heart of Oxford. The public is served through this programme of continued maintenance and improvement in a variety of ways. It enables the church to be open every day for personal quiet and prayer, for the enjoyment of the historical heritage, for providing open and accessible services of worship and teaching on Sundays and during the week, for the holding of regular cultural activities and making the buildings available for hire or free use to groups serving the needs of the community at large. The total expenditure in the year for this purpose (including insurance, IT support, expenses and repairs) was £42,666 (2021: £34,916) [note 14]. More information on these activities can be found in the report of the accounts of the Parochial Church Council of St Michael at the North Gate with St Martin and All Saints.

B. To the maintenance of music and the provision of music at the Parish Church

professional Choir. These were £35,614 in 2022 (2021: £32,709) [note 14]. The choir serves the worshipping open and accessible to all.

C. In aid of the stipends of the clergy officiating at St Michael at the North Gate

The charity provides an honorarium for the Vicar at St Michael at the North Gate covering his stipend and expenses. The cost of this for the year was £36,872 (2021: £40,391). The honorarium for the Vicar is paid to the Diocese, continue to serve the congregation, parish and visitors to the city centre: without this contribution it is currently unlikely that any stipendiary clergy could be allocated to the church by the Diocese in Oxford.

There are few permanent residents within the Parish boundaries, but the Bishop of Oxford recognises the importance of St Mich Oxford City Council, and his pastoral relations with city centre businesses and visitors. The charity also covers the salaries of the treasurer, church administrator and church caretaker, who support the Vicar in his work.

D. In making grants for other such religious and other charitable purposes as the Feoffees decide (in consultation with the Parochial Church Council)

The original endowments were made by citizens of Oxford and are represented by properties close to the city centre. The Charity is fortunate in that the income from these properties and other investments has for many years exceeded the expenditure needed to cover A-C above, enabling it to make grants for religious and other charitable purposes in the public interest. In previous years grants awarded have totalled £149,790 (2021), £215,867 (2020), and £463,155 (2019). In February 2022, the Feoffees reviewed their decision to pay grants from reserves in 2022, as they did in 2021. Cash flow projections indicating a deficit between income and expenditure before any grants, poorer prospects for income in 2023, and the recommendation to invest in the strategic review were together felt to constitute a significant change in outlook, and the trustees reluctantly decided to halt the award of grants until the outcomes of the strategy review had emerged, with this decision being reviewed regularly at trustee meetings.

considered below under Achievements and Performance, and Financial Review. The possibility of resuming grant awards will be considered towards the end of 2023 and a decision made in the light of the outlook for the tru

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Church Branch

for the year ended 31st December 2022

Public benefit statement

In exercising their powers and duties the Trustees have paid due regard to the guidance on public benefit published by the Charity Commission in exercising their powers and duties. Each of the aims of the charity has been directed towards the public benefit in the ways described above.

Policy on grant making

In making grants for such religious and other charitable purposes as the Feoffees decide (in consultation with the Parochial Church Council), applications are considered at each trustee meeting with no pre-selection, so that the full and diverse experience of the Feoffees is available to decide on which grants should be made. Grant applications are considered in the light of Donations Guidelines, prepared by a sub-committee of Feoffees assisted by the Clerk and Assistant Clerk, and then formally adopted at a full meeting of the Feoffees. In accordance with these guidelines, grants have been made mainly for community benefit or the relief of hardship in Oxfordshire, by helping smaller local charities that cannot afford large fundraising activity and may have few options for raising the sums needed to achieve their purposes. National charities are considered where they have a sufficient presence in the county to enable them to help those in Oxford or Oxfordshire. In considering applications, the Feoffees look for a clearly stated purpose and outcome, together with evidence of good management for achieving the aims. The Donations Guidelines are kept under regular review.

hial Church Council of St

taxes or other public funds.

Achievements and Performance

h its rental and investment activities continued to feel the full effects of COVID-19 and adverse economic conditions generally. Nevertheless, the Feoffees have continued to manage their affairs effectively, holding three of their four meetings during the year via Zoom, and the last meeting in person. At each of their meetings, the Feoffees review their finances, being supplied with a financial statement of their assets, cash flow forecasts for the following twelve months, comparisons of income and expenditure with the budget for the year to date, and revised forecasts for the financial year end and for twelve to fourteen months ahead. Cash flow forecasts are accompanied by explanatory notes setting out the assumptions upon which the forecasts are based, drawing attention to where the greatest uncertainties in the forecasts lie.

In February 2022, the Feoffees reviewed their decision to pay grants from reserves in 2022, as they did in 2021. Cash flow projections indicating a deficit between income and expenditure before any grants, poorer prospects for income in 2023, and the recommendation to invest in a strategic review of their properties were together felt to constitute a significant change in outlook, and the trustees reluctantly decided to halt the award of grants until the outcomes of the strategy review had emerged, with this decision being reviewed regularly at trustee meetings.

out in paragraphs A, B and C above, namely in defraying the cost of repairs to the fabric, furniture, fittings and organ of the Parish Church, the cost of insurance of the Parish Church, the maintenance of music and the provision of music therein, and in aid of the stipends of clergy officiating at the Parish Church.

The services of t purposes, five of whose eight trustees are also Feoffees.

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Church Branch

for the year ended 31st December 2022

Financial Review

General

income has been significantly reduced because of the pandemic, totalling in 2022 £598,134 as compared to £269,577 in 2021, £472,066 in 2020 and £800,990 in 2019. The projected income for the year was substantially improved by the receipt of arrears of rent relating to 2020-21 of around £300,000 close to the year end, negotiated as part of the strategy review. Anticipating continued depressed income and mindful of potential liabilities for rates payable for empty properties, during the year the trustees reluctantly decided to halt grant awards.

At the same time, the trustees decided to commission a strategic review of their property holdings and after considering three suitable firms, engaged Savills, Chartered Surveyors. The aims of the strategy are to regularise rent payments; to renegotiate leases with a view to property income being more easily predictable; to reduce the overall by reducing exposure to properties; and to increase the liquidity of unrestricted reserves. The strategy proposed by Savills was adopted by the trustees and is in the course of implementation.

Reserves Policy

The Charity maintains reserves so that it can continue to fulfil the aims described in the Public Benefit Statement above. It believes the holding of such reserves is especially important currently, and that such reserves have been invaluable in safeguarding the Charity against both the unforeseen drop in income caused by the pandemic, and potential liabilities for rates on empty properties.

The Charity has allocated part of its reserves for investment in property and securities as shown within designated funds. If need be, intain the designated funds at a level that is, together with the income from the permanent endowment, sufficient to meet both existing and increased demands for support.

Reserves Position

At the end of December, the balance held as unrestricted funds was £3,841,662 (2021: £3,754,737) of which £908,484 (2021: 831,446) are regarded as free reserves [Note 13]. Free reserves are those unrestricted funds not invested in tangible fixed assets or in investments. Free reserves exclude restricted funds and funds designated for specific purposes or otherwise committed.

In addition, in order to present clearly the true free reserves position in the annual accounts, such unrestricted funds as are represented by fixed assets and investments have been transferred into separate designated funds. The net asset analysis is shown in note 8 and movements during the year are shown in note 13. Income generated by the assets in the designated funds is applied to the unrestricted fund with the designation applying solely to the capital value of the assets it represents.

The unrestricted fund expended £321,096 (2021: £423,575) whilst incoming resources were £598,134 (2021: £269,577). The total net movement in funds was £277,038 before the transfers of the designated Church Reserve Repair Fund and Investment Fund (2021: (£153,998)). The designated investment fund had net losses of £74,291 (2021: gains of £106,771) due to realised and unrealised investment losses of £74,291 (2021: gains of £106,771). In addition, in 2022 there were fixed asset revaluation losses of £115,822 (2021: £355,090) [Note 13].

Permanent Endowment Position

The Permanent Endowment fund which is shown in the accounts at market value, decreased in value by £419,917 (2021: decrease of £967,041) due to net revaluation losses of investments £71,245 (2021: net revaluation gains of £107,732) [Note 4] during the year combined with investment management expenses of £1,594 (2021: £5,263) and a net loss on fixed asset revaluation £347,078 (2021: losses of £1,069,510) [Note 2].

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Church Branch

for the year ended 31st December 2022

Investment Policy

It is the policy of the Feoffees to invest their funds in property and other assets so as to generate sufficient income to enable the Feoffees to meet their obligations (a) to defray the costs of managing their property and those related to the administration and management of the Charity; (b) to meet the costs of repairs to the fabric of St Michael North Gate and the maintenance of its services, including the provision of music and related insurance; (c) support the stipends of its clergy; and (d) subject thereto, to generate income to fund donations to other beneficiaries of the Charity, at the same time maintaining the real value of the capital of the Charity. In 2021 the Feoffees decided to follow closely the Church of England Ethical Policy on investments by shifting their holdings in COIF Charities Investment funds into the COIF Charities Ethical Investment funds.

Property Investments

The major source of the income of the Charity is rent received from freehold and leasehold properties in the centre of Oxford. In view of the need for decisions on property matters between meetings, the Feoffees have a Property and Investment Sub-Committee at present comprising five Feoffees with experience and expertise in property and investment matters, together with the Clerk. At their meeting in February 2022 the Feoffees delegated routine decisions on property matters to the Committee Chair and the Clerk. Meetings of the Committee now take place in the run up to full meetings of the Feoffees, at which recommendations of the Committee are considered and acted upon.

but at the start of the year, the dramatic drop in

rents since 2020, mainly caused by the pandemic and by the continuing effects of the presence of the extended Westgate shopping centre, showed no sign of reversal. Furthermore, the possibility of tenants vacating properties continually posed the threat of substantial liabilities for rates. Accordingly, the decision was made to commission from Savills, Chartered Surveyors, a strategic review of their property holdings, with the aims described under

y the Feoffees and is now being implemented. The Chair of the Property and Investment Sub-Committee and the Clerk meet with Savills monthly to monitor progress. They then report to the Property and Investment Sub-Committee, which in turn makes recommendations to full meetings of the Feoffees. As a result of judicious negotiations with tenants, rental income has improved, and the ground is being prepared to accomplish the strategic aims of the review.

With effect from the June quarter day, Savills were also engaged to take over the day to day management of the and the Feoffees nd timely manner. The Feoffees are satisfied these aims are being achieved.

Portfolio Investments

In February 2022, the trustees approved the recommendation of the Property and Investment Committee to sell the investments managed by WH Ireland and to invest them in COIF Charities Ethical Investment Fund Income Units. The investments managed by WH Ireland were part of the permanent endowment and were not as liquid as other comparable investments and these assets were considered unlikely to improve significantly in value. It was also considered over-complicated to have the separation of the investment portfolios between two managers (WH Ireland and CCLA) so it was deemed optimal to have all the investments in the COIF Ethical Investment Fund.

In addition to their property investments, the Feoffees hold an investment portfolio comprising holdings in internationally diversified equities and fixed interest UK Government securities, professionally managed. During the year the investments excluding property held by the charity decreased in value by £145,536; in 2021 they increased by £214,503. Yearly management fees incurred on the investment portfolio were £1,594 (2021: £5,263). In the current year £nil (2021: £nil) was transferred from the Investment fund to Free reserves.

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Church Branch

for the year ended 31st December 2022

Plans for the future

istribution, has been on making grants to charities meeting various forms of need in Oxford and the surrounding county. requirements and outgoings on their property portfolio . The Feoffees have therefore commenced a major strategic review of their property holdings. In the meantime, the Feoffees have regretfully paused the award of grants to third-party charities not related to the Parish Church pending the outcome of the review and its implementation.

Nevertheless, the Feoffees remain committed to supporting charities meeting need in Oxford and the surrounding county in the medium to long term, and it is their intention to resume award of grants as soon as their finances allow. With the assistance of its professional advisers the Feoffees aim to optimise returns on its properties and investments.

Fundraising Standards Information

The Charity does not carry out any significant fundraising activities.

Pay policy for staff

in charge of directing, controlling, running and operating the Charity on a day-to-day basis. All Feoffees give of their time freely and no Trustee received remuneration in their capacity as Trustee during the year.

Following a benchmarking exercise in 2014, the pay of the clerk and assistant clerk are reviewed by the Feoffees and normally increased annually in line with the Consumer Price Index.

Trustees' responsibilities statement

applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

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

The trustees are responsible for keeping accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Rupert Sheppard Clerk to the Trustees

15th June 2023

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Church Branch

Church Branch

Opinion

the year ended 31st December 2022 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable the financial statements section of our report. We are independent of the charity in accordance with the 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 conclu 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 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 trustees annual report, other than the financial statements and ou the annual report. 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.

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 this gives rise to a material misstatement in the financial statements themselves. 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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Church Branch

Church Branch

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:

the information given in sufficient accounting records have not been kept; or the financial statements are not in agreement with the accounting records; or we have not received all the information and explanations we require for our audit.

Responsibilities of trustees

7, the trustees are responsible for the preparation of 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 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.

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with regulations made under section 154 of that Act.

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 is Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud is detailed below:

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

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Church Branch

Church Branch

A further description of our responsibilities for the audit of the financial statements is located on the Financial report.

Use of our report

and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the c trustees as a body, for our audit work, for this report, or for the opinions we have formed.

.........................................

Wenn Townsend Chartered Accountants and Statutory Auditors 30 St Giles Oxford OX1 3LE

15th June 2023

Wenn Townsend is eligible to act as an auditor in terms of section 1212

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OL 00 ry)￿ J r **

Church Branch

(The St

Balance Sheet 31st December 2022

Note

nd leasehold properties
2
tings and equipment
3
s
4
ts
nk
eposit fund
d prepayments
6
lities
ditors
7
ssets
:
d funds
8 / 13
funds
8 / 13
endowment funds
8 / 13		 2022
£
£
8,797,000
-
1,264,697
10,061,697
335,410
610,225
149,133
1,094,768
(136,284)
958,484
11,020,181
908,484
2,933,178
7,178,519
11,020,181		 £
119,119
560,225
156,661
836,005
(154,559)		 2021
£
9,259,900
-
1,411,827
10,671,727
681,446
11,353,173
831,446
2,923,291
7,598,436
11,353,173

The financial statements were approved and authorised for issue by the Feoffees on 15th June 2023.

Signed on behalf of the Feoffees

A Buckley

R Loseby

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Church Branch (The Church Houses Relief in Need Charity)

St

Statement of Cash Flows for the year ended 31st December 2022

Reconciliation of increase in funds to net cash flow from operating activities

Decrease in funds
Decrease in debtors
(Decrease) in creditors
Interest/dividends received
Loss/(gain) on investments
Revaluation loss on fixed assets
Net cash flow from operating activities
Cash flow from investing activities
Purchase of investments
Proceeds on sale of investments
Interest/dividends received
Net cash flow from investing activities
Increase/(decrease) in cash
Movement in cash
Net cash at 1st January
Net cash at 31st December		 2022
£
(332,992)
7,528
(18,275)
(20,752)
145,536
462,900
243,945
(703,913)
705,507
20,752
22,346
266,291
266,291
679,344
945,635		 2021
£
(1,369,358)
64,959
(65,506)
(13,024)
(214,503)
1,424,600
(172,832)
(993,738)
999,001
13,024
18,287
(154,545)
(154,545)
833,889
679,344

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Church Branch

Notes to the Accounts for the year ended 31st December 2022

1 General information and accounting policies

th

February 1991. The address of the registered office is given in the charity information on page 1 of these financial statements.

The following accounting policies have been used consistently in dealing with items which are considered material in relation

Accounting basis

These accounts have been prepared on an accruals basis and include income and expenditure as they are earned or incurred, rather than as cash is received or paid. The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland issued in October 2019, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011, and UK Generally Accepted Accounting Practice. The accounts include all the transactions, assets and liabilities for which the Charity is responsible in law. The Charity constitutes a public benefit entity as defined by FRS 102. The Trustees consider that going concern. The impact of COVID-19 has been taken in to account when reaching this conclusion.

Fixed assets

The freehold and leasehold properties are held as investments. These properties were valued by Cluttons LLP as at 31st December 2018. Since then these values had been impacted by the continuing effects on trading patterns in Central Oxford following the opening of the Extended Westgate Centre, and by COVID19. The Feoffees consider that values have fallen significantly since 2018 but while trading conditions are volatile and valuations unusually uncertain, the Feoffees judge it premature to seek formal revaluations. In these circumstances the Feoffees have decided to reflect the fall in values by an across the board reduction of 38% from their 2018 values (2021: 35% from the 2018 valuations).

Depreciation

Investment properties are not depreciated in accordance with prevailing accounting standards, and instead reviewed for impairment at each year end. Depreciation of other fixed assets is calculated to write off their cost or valuation less any residual value over their estimated useful lives as follows:

Fixtures, fittings and equipment 25% Straight line

Investments

Investments are included in the accounts at market value. Realised gains/(losses) are those arising between the sale of an investment and its value at beginning of the year. Unrealised gains/(losses) are those arising where the investment is still held but the value has changed.

Income recognition

Rental income

Rental income is recognised by the period the rent covers.

Grants payable

Grants are accounted for when approved by the Trustees.

Investment income

Investment income is accounted for on an accruals basis.

Fund accounting

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Church Branch

Notes to the Accounts (Continued) for the year ended 31st December 2022

ii) Restricted funds Restricted funds are funds which have been raised for, and their use restricted to, a specific purpose, or donations subject to donor-imposed conditions. No such funds are identified.

iii) Permanent endowment funds

A permanent endowment fund must be held permanently. The income from it is unrestricted.

Judgements and key sources of estimation uncertainty

estimated and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimated and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimated are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

The judgement that has a significant effect on amounts recognised in the financial statements is the valuation of investments property held by the charity, as detailed in note 2.

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Church Branch

Notes to the Accounts (Continued) for the year ended 31st December 2022

2 Freehold and leasehold properties

Freehold and leasehold properties
1st January Revaluation 31st December
2022 Adjustment 2022
£ £ £
Investment property 9,259,900 (462,900) 8,797,000
Current year split by fund
Designated Endowment Total
Fund Fund 2022
£ £ £
Investment property 2,192,260 6,604,740 8,797,000
Prior year split by fund
Designated Endowment Total
Fund Fund 2021
£ £ £
Investment property 2,308,082 6,951,818 9,259,900

These properties were valued by Cluttons LLP as at 31st December 2018. Since then these values had been impacted by the continuing effects on trading patterns in Central Oxford following the opening of the Westgate Centre, and by COVID-19. The Feoffees consider that values have fallen significantly since 2018 but while trading conditions are volatile and valuations unusually uncertain, the Feoffees judge it premature to seek formal revaluations. In these circumstances the Feoffees have decided to reflect the fall in values by an across the board reduction of 38% from their 2018 values (2021: 35% from the 2018 valuations).

Based on the above valuations, the current year revaluation loss of the property in the Designated fund is £115,822 (2021: £355,090), and the Endowment fund is £347,078 (2021: £1,069,510).

end of the year was £0.988m (2021: £1.04m). During the current year a revaluation loss of £26k (2021: £200k) was recognised in the Church and Relief Branch Statement of Financial Activities.

3 Fixtures, fittings and equipment

Fixtures, fittings and equipment
Brought forward cost
At 1st January 2022 and at 31st December 2022
Accumulated depreciation
At 1st January 2022 and at 31st December 2022
Net book value
At 31st December 2022 and at 31st December 2022		 Total
£
21,906
21,906
-

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Church Branch

Notes to the Accounts (Continued) for the year ended 31st December 2022

4 Investments

Investments
Market value at 1st January 2022
Additions
Disposals
Net gains/(losses) on revaluation:
- realised
- unrealised
Management fees
Market value at 31st December 2022		 Designated
Investments
£
765,209
26,713
(26,713)
(1,060)
(73,231)
-
690,918		 Permanent
Endowment
Total
Fund
£
£
646,618
1,411,827
677,200
703,913
(677,200)
(703,913)
(22,823)
(23,883)
(48,422)
(121,653)
(1,594)
(1,594)
573,779
1,264,697
1,264,697

The net losses on revaluation of investments including amounts recorded in the Statement of Financial Activities in designated funds are £74,291 (2021: gains of £106,771) and permanent endowment funds were losses of £71,245 (2021: gains of £102,469).

Investments held
209,347
COIF Charities Ethical Investment Income Fund - income
148,446
COIF Charities Ethical Investment Income Fund
accumulation
Charitable grants
ACT!
Agnes Smith Advice Centre
ARCH
Archway Foundation
Aspire
Asthma Relief in Oxford
Barton Community Association
Berinsfield Information and Advice Centre
Blackbird Leys Adventure Playground
Bookfeast
Bridgewell Organic Gardens
CAB Oxford
CAB Oxfordshire South and Vale
Cherwell Theatre Company
Cutteslowe Community Association
Daybreak Oxford
Donnington Doorstep
Edge Housing
Elmore Community Services
Exeter College ExVac
Home-Start Oxford		 Designated
£
-
690,918
690,918
2022
£
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 Endowment
£
573,779
-
573,779		 Endowment
£
573,779
-
573,779		 Total
£
573,779
690,918
1,264,697
2021
£
3,000
3,000
3,000
2,000
5,000
2,500
3,000
3,000
2,000
(330)
1,000
7,500
2,000
2,900
2,000
3,000
6,000
5,000
5,000
1,000
300
3,000

5 Charitable grants

- 17 -

Charities Church Branch

Notes to the Accounts (Continued) for the year ended 31st December 2022

5 Charitable grants (continued)

2022 2021
£ £
Leys CDI - 2,500
Lincoln College Vacation Project - 2,000
My Life My Choice - 3,000
One-Eighty - 2,400
OSARCC - 8,000
Oxford and District Mencap - 3,500
Oxford Mutual Aid - 1,000
Oxford Winter Night Shelter - 3,000
Oxfordshire Family Support Network - 5,000
Oxfordshire Play Association - 1,000
Oxfordshire Youth - 3,000
OxPIP - 3,000
Police Community Clubs of GB - 1,000
Quest for Learning - 3,500
RAW Workshop - 4,000
Reducing the Risk of Domestic Abuse - 3,000
Refugee Resource - 2,500
Restore - 3,000
Samaritans Oxford - 1,000
Seesaw - 3,000
Shared Knitting and Crocheting - 500
- 3,000
The Oxford Playhouse Trust - 2,000
The Parasol Project - 2,520
The Porch - 5,000
The Syrian Community in Oxford - 1,000
Thrive Innovista and Oxfordshire - 4,000
Wood Farm Parent and Toddler Group - 5,000
Yellow Submarine - 2,000
Young Women's Music Project - 1,500
_ _
- 149,790

In February 2022, the Feoffees reviewed its decision to pay grants from reserves in 2022 as it did in 2021. Because cash flow projections indicated a deficit between income and expenditure before any grants, prospects for income in 2023 were significantly poorer, and the trustees had accepted the recommendation to invest in a strategic review, it was reluctantly decided to halt the award of grants until the outcomes of the strategy review had emerged, with this decision being reviewed regularly at trustee meetings.

- 18 -

St

Church Branch

Notes to the Accounts (Continued) for the year ended 31st December 2022

6 Debtors and prepayments

Under one year:
Trade debtors net of provision for doubtful debts
Other debtors
Prepayments
Amounts owed by connected charities
7
Sundry creditors
Amounts due in respect of taxation and social security
Grants payable within one year
Trade creditors
Accruals and deferred income
Other creditors
Amounts owed to connected charities
Deferred income consists of rent in advance: -
Released from previous year
Deferred in current year		 2022
£
133,428
-
15,607
98
149,133
2022
£
12,105
-
3,359
71,701
49,119
-
136,284
93,669
63,616		 2021
£
138,010
4,345
14,306
-
156,661
2021
£
3,630
6,000
(2,995)
104,283
-
43,641
154,559
58,615
93,669

- 19 -

Church Branch

Notes to the Accounts (Continued) for the year ended 31st December 2022

8 Net asset analysis 2022

Net asset analysis 2022
Freehold Fixtures
and fittings Net current
leasehold and Investments assets
properties equipment Total
£ £ £ £ £
Unrestricted
- General Unrestricted "Free" Reserves - - - 908,484 908,484
Designated
- Property Fund 2,192,260 - - - 2,192,260
- Investments Fund - - 690,918 - 690,918
- Church Reserve Repair Fund - - - 50,000 50,000
Endowment
- Permanent Endowment Funds 6,604,740 - 573,779 - 7,178,519
8,797,000 - 1,264,697 958,484 11,020,181
Net asset analysis 2021
Freehold Fixtures
and fittings Net current
leasehold and Investments assets
properties equipment Total
£ £ £ £ £
Unrestricted
- General Unrestricted "Free" Reserves - - 150,000 681,446 831,446
Designated
- Property Fund 2,308,082 - - - 2,308,082
- Investments Fund - - 615,209 - 615,209
Endowment
- Permanent Endowment Funds 6,951,818 - 646,618 - 7,598,436
9,259,900 - 1,411,827 681,446 11,353,173

General Unrestricted Free Reserves are those funds freely available to use in connection with the charity's principal aims and objectives.

Designated funds have been established by the Feoffees for specific purposes as follows:-

The Property Fund has been established to report the value of properties not forming part of the permanent endowment.

The Investment Fund represents the market value of investments held at the balance sheet date.

The Church Reserve Repair Fund has been established to accumulate funds for anticipated future expenditure on the Church and other associated repairs and maintenance.

- 20 -

Church Branch

(The St

Notes to the Accounts (Continued) for the year ended 31st December 2022

9 Staff Costs

Gross wages
Employers National Insurance
Employment allowance		 2022
£
37,588
2,876
(2,876)
37,588		 2021
£
36,183
2,910
(2,599)
36,494

There were 2 part-time employees during the year. No employee was paid more than £60,000 in the year.

10 Allocation of support costs

The charity allocates its support costs as shown in the table below. Support costs are allocated on a basis consistent with the use of resources.

Cost of
generating funds
£
Support costs
Staff costs
18,794
Insurance
541
General office expenses and repairs
3,367
Audit fee
3,000
Other accountancy services
1,890
_
Total
27,592		 Charitable
activities
£
18,794
541
3,367
3,000
1,890
_
27,592		 2022
Total
£
37,588
1,082
6,734
6,000
3,780
_
55,184		 2021
Total
£
36,494
1,062
7,962
5,700
5,430
_
56,648

11

No remuneration was paid to any Trustee in their capacity as Trustee (2021: £ Nil).

None of the Trustees was reimbursed for expenses during the year (2021: £ Nil).

The cost of the 1,082 (2021: £1,062).

- 21 -

Church Branch

Notes to the Accounts (Continued) for the year ended 31st December 2022

12 Connected charity

An amount of £98 was owed by Relief in Need Charity) (2021: £43,641 owed to the Relief Branch), a connected charity, in respect of rents collected for 136 High Street not yet transferred.

13 Statement of funds

Analysis of funds - 2022

Analysis of funds - 2022
Opening Gains / Closing
Balance **Income ** Expenditure **Transfer ** Losses Balance
£ £ £ £ £ £
Unrestricted
- General Unrestricted "Free" Reserves 831,446 598,134 (321,096) (200,000) - 908,484
Designated
- Property Fund 2,308,082 - - - (115,822) 2,192,260
- Investments Fund 615,209 - - 150,000 (74,291) 690,918
- Church Reserve Repair Fund - - - 50,000 - 50,000
2,923,291 - - 200,000 (190,113) 2,933,178
Endowment
- Permanent Endowment Funds 7,598,436 - (1,594) - (418,323) 7,178,519
Total funds 11,353,173 598,134 (322,690) - (608,436) 11,020,181

Of the £200,000 transferred from free Reserves in the year, £150,000 is a reallocation of investments to the Investment Fund and the remaining £50,000 is to establish the Church Reserve Repair Fund for Church repair costs. The transfer to the latter fund will be an annual transfer moving forward.

Analysis of funds - 2021

Analysis of funds - 2021
Opening Gains / Closing
Balance **Income ** Expenditure Transfer Losses Balance
£ £ £ £ £ £
Unrestricted
- General Unrestricted "Free" Reserves 985,444 269,577 (423,575) - - 831,446
Designated
- Property Fund 2,663,172 - - - (355,090) 2,308,082
- Investments Fund 508,438 - - - 106,771 615,209
3,171,610 - - - (248,319) 2,923,291
Endowment
- Permanent Endowment Funds 8,565,477 - (5,263) - (961,778) 7,598,436
Total funds 12,722,531 269,576 (428,838) - (1,210,097) 11,353,173

- 22 -

Church Branch

(The St

Notes to the Accounts (Continued) for the year ended 31st December 2022

14 Related parties

During the year ended 31st December 2022, transactions with related parties were as follows:

Professor Prof H Woudhuysen, Ex-Officio Trustee, was connected to:

Lincoln College Vacation Project which received an approved grant of £nil (2021: £2,000).

During the year, Sir Nigel Shadbolt, Prof H Woudhuysen, Mr M Lear, Mr R Earl, Mr M Lebus, the Reverend A Buckley

The Reverend A Buckley, Mr R Earl, Mrs P Warner, Miss P Dailey and Mr M Lebus were also Trustees of St Michael at the North Gate with St Martin and All Saints. During the year, the following amounts were paid to the church: -

Church expenses (including IT and insurance)
Church repairs
Church administration salaries
Music
Budget shortfall not accrued
Vat		 2022
£
16,607
26,059
61,528
35,614
(3,681)
-
136,127		 2021
£
33,364
1,552
60,626
32,709
(2,241)
401
126,411

At the year end, an amount of £Nil (2021: £7,841) was due from St Michael at the North Gate with St Martin and All Saints.

- 23 -