Charlty reglstrdtk>n number 271151 Company registrntlon numbor 00366710 {England and Walès) THE FREE CHURCH OF ENGLAND CENTRAL TRUST ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 THE FREE CHURCH OF ENGLAND CENTRAL TRUST LEGAL AND ADMINISTRATIVE INFORMATION Tru8tses The Right Reverend Dr P Hunt Th8 Right Reverend Dr J Fenwick Mr WA ClementS Miss LA Se¢ker The Reverend R IAfjlson The Reverend M Spiers Mrs N Slenstrom The Reverend Dr J Watson Mrs T J C Sahadevan The Reve￿nd M P Firth The Reverend BA Murphy The Reverand A G Ford Miss E C Garratt IAppointe6 1 Jun8 2023) (Appointed 1 June 2023) (Appointed 23 May 20241 IApp¢inled 23 May 20241 Secretsry The Reverend Dr R Stephen Charlty number 271151 Company numb•r 00366710 Reg1st•r￿ offic• Azzurri House Walsall Road Aldridge Walsall England WS9 ORB Independent eXaMi￿r Christopher Hession CA. 2zurri House Walsall Road Aldridge Walsall England WS9 ORB THE FREE CHURCH OF ENGLAND CENTRAL TRUST CONTENTS P•g• Trustees, IrK1epe￿jenl examinerfs rewrt ststemenl of financial adivits'es Balance sheet 9-10 Notes to the financial 8tatemenl$ THE FREE CHURCH OF ENGLAND CENTRAL TRUST TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT) FOR THE YEAR ENDED 31 DECEMBER 2023 The Trustees present their annual report and financial ststements lor the year ended 31 December 2023. The financial ststemenls have been w¢p￿d in acLordance with tho accounting policies sel OLbt in note 1 t¢ the financial slalements and comply wth the Company's goveming document {Memorandum and Articles ol Asscciaknonl, the Companies Act 2006 and 'Accounting and Reporting by Charities= Statement of Recommended Practice ak>plicable to charities preparing their accounts in accordance with the Finanaal Reporting Standar applicable in the UK and Republic of Irejand IFRS 1021 {effective 1 January 20191". ObJKUvtrs and a¢tiviti•s The charitable objects of the Company are to act as a Centr81 Board of Trustees for The Free Church of England, otherwise called The Refomied Episcopal Chur¢h Ihereinafter called lh8 Church'l, an¢J lo promote eid and further the objects and work of and to perfomi work and to tramact ￿si￿sS in connection with the Church 8nd there has been no change in these during the year. The aims of the Charity are the advancement of the Christian Fatth by 5UPPOrting the Churthes of the Denominelion of the Free Church of England in worship and witness,. by planting new Churches., and by actimlies supportive of Ihes8 aims. The charity is committed to advancing the faith of the Fre8 Church of England by seeking new followers and laalitating the practice of the faith by existing followers. 11 also seeks to proselytise new followers sensitively and without Goercion. It does by {Inler alla}:_ semons and religlous seminars. tslk5, meetings and conferences the encouragement and support of p8$1oral work. promoting the study of religious tsathings and practices aTrJ wptures,. suppcrt of religious office holders for acting as SLKh, induding the provlsoon of stSpends and other living 811ow8nces, pensions and retiremènt gccommod8tlon', Ihe provision and maintenan¢e of a buil(ffings used for relisiou5 practice. The Tru5te8s have paid due regard lo the public benefft guidoncè published by the Charity Commis6i)n in roviewing Ihe charity's objg¢tive8 and activities. The Trustees have paid due regard to guidance issued by ts Charity Commission in deciding what actSvllies the charrty should undertake. Services continue in all Churches of the Denominabon alhmng for the Christian Faith to be shartsl publidy in worship and wiln8ss, alongside the Occasional OffKes {Bapts'sms. solemnl8alion of Matrimony and Funer818) and ongoing Pastoral Care. Gr8ntS are mode lo further tr* work of The Free chU￿h of ENJland. THE FREE CHURCH OF ENGLAND CENTRAL TRUST TRUSTEES, REPORT (INCLUDING DIRECTORS, REPORT) {CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 Achlevements and p•rforrnan¢• The Free Church ol England Cenlial Trust has ¢ontinued to work in line y￿th the tharilable objectwes of the institution. The agendas for all meetings now follow a ￿ttern ￿ere the charitable otyectives are explicit and this is refiected in the h8adings of the report. 1. Property: The FCECT continues to actively engage appropriately a$ Custodian Trustees of all properties vested in Central Trust. We have engaged another solicitors. practrc8, Freelhs, lo athise on trusteeships and have consulted with lawyers {on th8ir advi￿) to try lo resc4ve historic issues. The sale of the site of St David's Church, Preston, was finally agreed and the land 18 now being redeveloped for communlly housing. A new Parsonage for the Church in Morecambe has been pwchas8d, in part ullllslng the funds ieali5ed from the sale of St D8vid'8, Preston, alongsid¢ fvnds from Central Trust The uninsurable Parsonag8 at Harksden will be sold aTrJ a new propety purthased ￿th the proceeds. The Church Hall at Walsall was being renovated so that It could be ￿e￿ more extensively and the Church sold. 2. C•ntral Board of Flnance: There had been six application¥ lo the Home Mission Fund for thi$ Current year and 811 grants werg approved. St George's, Blackburn Wam Hub Inf(iative Christ Church. Broadstairs Printer for Publioty Chnst Church Willesboroug Books & Carc4 Service Publicty Christ the Redeemer, Chudleigh Web Costs and cards St John's, Tottinglon Printing & general outrea¢h StAndrew's. Bentl8y Jubilee Tea Paty £300 £300 £292 £150 £300 £300 As part of the restructuring of how we 'do business, we have 4reed budgets for the various charitable objectives so that there are funds to apply lo projects as they come to fruib'on. 3. Tralnlng for th8 Ministry of the Church: The Bishops, Examining Chaplain had to retire and the Denomination has now adopted a cle8rfy deffined Mini8ty Pathway that is published on the webste. The provision of theological training for ministy candidates has been agreed with the London School of Theology and the syllabus, 88 18 required. has been agreed by the General Council. In partnership with the Board of Foreign Missions of the Refomed Episcopal Church and hosted by Bishop Gerhard M&yer, some of our Clergy attended an Intemalion81 Church Planting event ￿ Germany in the summer of 2023. THE FREE CHURCH OF ENGLAND CENTRAL TRUST TRUSTEES, REPORT (INCLUDING DIRECTORS, REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 4. Malntsnance for tho Mlnlslry: The Denominational Stipend Scheme 8n¢J the Oenominallonal Penslon scheme are lully operational. There had been an agreed ralse to the uplift grants made from the Stipend Scheme. A fomal document, a Working Agreernent lor Clergy, has been drafted and agreed and this forn)s the ba8is of 8ngaging Clèrgy (together with a detailed letter of appointment). Sl George's, Blackbufn. had drawn up a Parish Profile in a n8w style as they look to appoint a new Minister. 5. ¢hurGh Plantlng and Evangellsm: The Church #l Morec8mbe has been reoFtned under the le8der8hip of the Rfrv'd Brett Murphy. Incorpcfatlng a Communty Pantry that attracts some income to support the stipend. The Rev'd Matthew Firth has initiated a new work in York. to whith the funds realL8ed from the sale of St stephen's. Middlestx)rough are appli8d. 6. Youth Education: The TWIGG group based al St Andrevls, Bendey and St Bamabas on the Isle of Man remain the most active Churches wlh regard lo Youih Education. 11 is recognbs¢d that this is an area of w8akn8ss and needs to be addr8ssed. 2023 has been a positive and active year in ￿1¢h the groundwork for current and fLrture growth has i*en addressed. The invesbnents made during the year have performed in line wth markets generally and the Trustees consKlèr the investmenl managerfs perfornian¢e to be satisfactory. Flnanclal rnvlew The Company has operated sati$factorily during the year in the furtheranc8 of ks prlncipal aclivlie$ ofKI a summary of those activities Is set out in the Slalement of Financial ActNities on page 4. There was an inuease of funds of £92.299 (2022 - £186,538 decrease). As at 31 December 2023 thè Ccrfnpany had reserves of £985,241 12022 - £892,942) as dgtai18d on the Balance She81 on page 6. 11 is the policy ol the Company that unrestricted funds which have not been designated for a sp8cffi¢ use should L)e maintained at a level equivalent to between three and six rTh)nlh's expenditure. The Trustegs wn$iders that resetv&s 81 this level will ènsure that. in the event of a signiffcant drop in funding, they wll ￿ able to continue the charity's current adivitie$ while eonsideralion is given to way5 in which addthnal funds may be raised. Thi3 level of r8$erV￿ has been maintained throughout the year. There are no Teslrictions on the Company's power to invest. The investment slr31egy is lo maintain the long temi purchasing power of the caprtal against inflation whllst achifjving a balance be￿een capital growth and income. Th8 invaslmenls are managed wthin the financiai and elhical guidelines set d￿n by the Trustees but otheThvlse at the discretion of the investment managers. The Trustees have assessed the maioT risks to wh￿h the Company 1$ eX￿Se￿. and are satisfied that systems are in ￿a¢e lo mitigate exposure to the major risks. THE FREE CHURCH OF ENGLAND CENTRAL TRUST TRUSTEES, REPORT (INCLUDING DIRECTORS. REPORTI (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 Structure, govemance and managemgnt The Cornpany is limiled by guarantee and dces not have a share capltal. It is li￿nsed by the Department of Industry to be registered wilhoul th8 addition of the word'Limite(I" to its name. The Company was incorporated on 23April 1941 under the CompaniesAct 1929. The Company 1$ a reglstered Charty. under the Charrtles Act 2011. The Trustees. who are also the directors for the pUrFK￿ of company law, and who served durlng the year and up to the date of signature of the financial Slalemenls were.. The Right Reverend Dr P Hunt The Right Reverend Dr J Fenwick Mr WA Clemenls Mr C Mills Miss L A Sed(er The Reverend R Wlson Thg Reverend M Spiers Mrs N Sten$lrom The Reverend A K Roberts The Reverend Dr J Watson Mrs T J C Sahadèvan The Reverend G E Andow The Reverend M P Firth The Reverend BA MurFthy The Rev8rand A G Ford Miss E C Garratt (Resignèd 3 October 20231 (Resigned 14)ri120241 {Resigned 8 February 20231 {Appointed 1 June 20231 IAppointed 1 June 20231 (Appointed 23 May 20241 {Apw)irsted 23 May 2024) I those elected to Serve on Ihè General Council of th¢ Free Church of England are also appointed Trustees. Artlde111 states that.. Convocation shall appoint at 115 Annu81 M8eting a Counal of 115 members and delegate to such CounGil such administralNe powers and functions as Convocation shall from time to lime resolve. The Council thus appointed shall hold once until the next succeeding Annual Meeting of Convocation. No other person or p8rsons withln th8 Free Church of En￿and c* external lo il has the power or authority to appoint Trustees. None of the Trustees have any beneficial interest in the company. All of the Trustees affj members of the Company and guarantee to ¢ontribute £1 in the @vent of a winding up. THE FREE CHURCH OF ENGLAND CENTRAL TRUST TRUSTEES, REPORT (INCLUDING DIRECTORS. REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 Commltt•¢$ and wob*lng partles Thè Executive Council may. establish Commlttees CC￿51$tin9 of those pers(x)s wthom th& Executive Council decide.. delegate lo a Committee any of its powers.. an(J revoke 8 delegation al any lime. The Executive Council may establish Working Parties consisting of those persons whom the Executive Counal deu¢Je. A Werking Paty may not lake decisions on behalf of the ExecJJtive Council bul may consider issues in depth with a view to making recommendations to the ExecLrtive Council. The members of a Committee or a lthrt(ing Paty are lo be aFpfJinted by the Execulive Council bul the Executwe Council may give a Committee OT a Worklng Paty the right lo co￿1 individuals to its membership. The Executwe Council is to determine the chair of ea¢h Committee or Worklng Party. Each member of a Committeg or Wothng Paty (including the thairl is to hold office from the dste ol hls appointment until the term of oifice for which he has been app￿nted expire$ or until he reslgn8 or 18 removed by the ExeculNe Council from the Committee or WoTking Paty. The Executlve Council musl determine the quorum for each Committèe and IAbrking Paty il establishes. The Exe￿11¥8 Council must speefy the flnancial limits vJithin which any Committee may fvndion. lorking Paty ean have no authority to incur expendlture. Every Committe8 Qr Working Paty must report its proceedings and deasi)ns lo ts Executive as the Executive Council detemiin8s. 1.1.2 1.1.3 A meeting of a Committee or worki￿ Paty may be held entirely through telephone, video conferencing or other communicolions equipment, via 8 mixtuie of such Communicat￿n$ equipment or wlh some people thysically present al the meeting whilst others 8re present via communications equipment. If all the people partlcipating in the meeting are nol in the same pl8¢e, they may de￿￿e Ihat the meeting is to be treated as laking place wherever any of them is. Fund5 hold as custodlan tw$t•w The Free Church of England Central Trust holds funds as Trusi88 on behalf of the Denomination and various churches within the denomination. The objects of the denomination and the various churches within are the advancement of the Christian religion by mean8 and in accordance wth the principles of The Flee Church of England. Investments al market value Cash deposits and other ￿rrent assets £876,699 {2022- £806,913) £96.888 {2022 - £152.884} THE FREE CHURCH OF ENGLAND CENTRAL TRUST TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT) IcoKfiNUED) FOR THE YEAR ENDED 31 DECEMBER 2023 mmanuel ch￿th. BarMl8blg £1W. £180,84 rkngh R￿)ry £31.559 £K41 £7127 £79.254 £119, £109.887 am￿1 SSF £71. £88,412 Georg￿, Bl8t*bum £1tr2. St¢￿erf$ Church. £158.¥2 £191.078 £959,797 The otleds of tho¥e and tru0 •Te and for the tenofft of Fr•¢ Clwrch d Englwxl Central Tru d Dr R &eph&i TM Re¥•m￿ Dr J Fthwldt 23 IAay 2024 THE FREE CHURCH OF ENGLAND CENTRAL TRUST INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF THE FREE CHURCH OF ENGLAND CENTRAL TRUST I report lo the Trustees on my examination of the finanaal statements of The Free Church of England Central Trust Ith& Company) for the year ended 31 December 2023. R￿ponsIbl1111e9 and basls of report As the Trustees of the Company land also it$ directors for the purposes of company lawl you are responslble for the preparation of the finanual statements in aecordanee whh the requirements of the CompaniesAcl 2006 Ilhe 2006 Act). Having satisfi8d mysdf that the financial ststements of the Company are not required lo be audilgj under Part 16 of the 2006 Act and are eligible for independent examination. I report in respect of my examination of the Company's financial statements carried out under section 145 of the Charitie5 Act 2011 {the 2011 A¢tl. In carying out my examinats'on I have followed all the applicable Directions given by the Ch¥ity Crynmission under section 14515}Ib) tsf the 2011 Act. Indop•nd8nt examlnerfs $talement Since the Company's gross in¢ome exceeded £250,000 your examiner must be a member of a body list8d in section 145 of the 2011 Acl. I confim that l am qualified lo undertak8 th8 examination because l am B memkr of the Institute of Chartered Accountants in England and Wales, which is one of the Ilsted bodies. I have completed my examinatK)n. I confirni that no matters have come to my attention In connect[C￿ wth the examination gNing rne cause lo believe th* in any material respect". accounting records were not kept in respect of the Company as required by Secti￿ 386 of the 2006 Act., or the financial statements do not aceorfj wilh those records.. or the financial statements do not comply with the a¢¢ounting requirements of section 3￿ of the 2006 Act other than any requirement that the accounts give a true and falr view which is not a matter ¢on8ldThl as part of an Independent examination., or the financial slalements have not been prepared in accordance with the methods and prinaples of the Statement of Recommended Practice for accounting and reporting by charities applicable lo chaTilies preparing théir accounts in accknrdance wllh the Finanuor Reporting Standard applicable in Ihe UK and Republic of Ireland IFRS 102}. l am aware of on90ing ccireSponder￿e ￿th the Chanty Commission in relation to ￿riOuS matters which may have occurred over recent years. As al the dale of signing thi8 report the matters remain outstsnding and as suth I have not noted this as a matter of material concern. I confimi that there arg no other matters in connection wth the examination to whlch attentlon sh￿Id be drawn in this report in order to enable 8 pr¢)per understandlng of the financial ststements lo be reacW. BkPI. Chris 55ion C.A. Azzurri House Walsall Road Aldridge Walsall WS9 ORB England Dated.. 5 September 2024 11 i- l Ln Opa> )* THE FREE CHURCH OF ENGLAND CENTRAL TRUST BALANCE SHEET AS AT 31 DECEMBER 2023 2023 2022 Notss Fixed assets Tangible assets Inveslmenls 15 16 666,932 271,950 260,500 476,613 938.882 737,113 Current assets Debtors Cash al bank and in hand 17 40.254 37.805 25,137 166.913 78,059 192,050 CredIto￿. amounts falling duowlthln on• y•ar 19 131.572) 136,0931 Nel tyrrent assets 46,487 155,957 Total assets1g$5 ¢Uff•nt Ilabllltl85 985,369 893.070 Crndltorn: amounts falllng due after more than one year 20 {128) 11281 Net assets 985.241 892,942 Income funds ReslricteLI funds Designated funds Unrestricted funds 22 23 322,418 111,031 551,792 418,109 11 5,453 459.100 985,241 892.942 ThE FREE CHURCH OF ENGLAND CENTRAL TRUST BALANCE SHEEr {coKnNUED) AS Af31 DECEMBER 2023 The ctM IM￿ t￿ME￿nIeS r8glm The ffinandal $tatem￿tr apry￿1 ty th8Tn*ts88 ￿ 23 May 2024 Mr WACl8monl8 10- THE FREE CHURCH OF ENGLAND CENTRAL TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 Accounting pollcles Charlty Information The Freg Church of England Central Trust is a private company limited by guarantee incorporated In England and Wales. The registered office is Azzurri House. Walsall Road, Aldridge WS9 ORB. 1.1 A¢￿untIng conventlon The financial slalements have been prepared in accordance wlh the Compan18 govemirvJ document, Ihe Companies Act 2006 and 'AccounlirvJ and Reporting by Charrties.. Slalemenl of Recommended Practice applicable lo charities preparing I￿1r accounts in accordance with th¢ Financial Reporting Standard applicable in tha UK and Republic of IreL4nd IFRS 1021 (effective 1 January 20191" The Company is 8 Publlc Benefit Entity a¥ defined by FRS 102. The Company has taken advantage of provisK)ns in the SORP for charitie5 applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Fl¢)ws. The financial slalemenls are prepared in sterling, which is thè fiJnth"onal currency of the Company. Monetary amounts in these financial statements are rounded to Ihe nearest £. The financial ststemenls have treen prepaied uThJer the historical convention. Th8 prinop81 accounting poliG1￿ adopt6d are sel out belthv. 1.2 Golng con¢•rn At the time of approving the finwcial ststemenls. the Trustees have a reasonable expectation that the Company has adequate resources to ￿ntinUe In operational existence for the foreseeable future. Thus the Trustees eonlinue lo adopt the going con¢em b881s of accounting in pr8parin9 the financial sl*ments. 1.3 Charfiablo fund8 Unrestricted funds 8R avallable for use at the discrelim of the Trustees in furtherance of their charitable obleclives. Restricted funds ara subject to specifK conditions by thnors tx grantors as to how they may be u$ed. The purposes and uses of the restrkted funds are set out in the notes to the fin8nci81 slalements. Endowment funds are subject to speerfic cond1t￿8 by donors that the capllal must be mairtsined by the Company. 1.4 Incorne Income is recognised when the Company is legally entitled to It after any performanGe ¢ondf(ions h￿8 b8on met, the amounts can be measured reliably, and il is proba￿¢ that income will b8 received. Cash donation$ are recognised on receipt. Other donations are recognised the Compony has been nolified of the donation, unless perf0mlan￿ conditions require deferral of the amount. Income tax recoverable in relation lo donations received under GiftAid or deeds of covenant 1$ reeognlsed al the limo of the donation_ Legacies are recognised Dn rèceipt c* othetwise rf the C¢ynpany has been notified of an impending distribution. the amount is kn¢)wn, and receipt is expectad. If the amount is not known, the legacy is treated as ntingent asset. THE FREE CHURCH OF ENGLAND CENTRAL TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 ActountSng pollclos Iconllnued) 1.6 Expendlturg Expenditure is recognised once there is a legal or constructive obligation to transfer econgmic benefit lo a third paty, it is probable that a transfer of ￿OnOMIC benefits will be required in settlement, and the amount of the obligation can be measured reliably. Expenditure is da$￿fied ty actfvily. The Gosts of each activty are made up of the total of dir&t costs and shar8d costs, induding 8UPPOrt costs involved in undertaking each activity. Direct costs attllbutatle to a single activity are allocated diredy to that activity. Shared costs which contribute lo more than ¢)ne acliwty and support costs whith are not attributsble lo a single activity are appgrtioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of lime spent, and dekvecialion charges are all¢xateé on the portion of the asset's usa. Charitable expendrture comprise5 thos8 costs Incuffed by the charity in the delivery of ils activities and services for its benefitharies. 11 indudes both eosls allocated diredy to sucb. activities and those costs of an indirect nature lo support them. Grants are accounted for when tho company Is committed to paying Ih8m. Govemanee Costs Indude those incurred in the governan￿ of the ch8rty and arg primarily assory*d with constitutional and slalutory r8quiremenl$. 1.6 Tanglble Ilxèd assets Tangible fixed assets are inllially measured al ￿$t and subsequenuy measured al cost or valuation. nel of depredatlon and any impaimi¢nt losses. Depreciation is r8cogni8ed so as to ￿lIe off the cost or valuation of assets le68 their residual values over theif usefvl lives on the folbvAng bases.. Freehold land and buildings 2% on cost and nil The gain or loss arislng on Ihe disposal of an asset is d8termined as the dfftrence bèhveen the sale proceeds and the carrying value ol th8 asset. and is recognised in the statement of financial actwities. The freehold properb'es purchased in 2022 and 2023 are not depreciated, on the basis of them hamro suth a long useful life and a high residual value. 1.7 Fixed asset Invastments Fixed asset investments are initially measured at Iransadion pri￿ exduding Ir?n$aclion costs, and are Subsequen￿Y measure¢J al fair value at each reporting date. Changes in fair value are recognised in nel inwmel{expenditurel for lh8 year. Transaction cosls are expensed as incurre(J_ A wb$Kliary is an entity controlled by the Company. Control is the power lo govem the financial and operating policie8 of the entity so as lo obtain benefits from ils activit'es. 1.8 Impalrment of flxed ass•ts Al each rèporting end dale, the Company reMew8 the Carrying amounts of ils tsngible assets to detemiine whether there is any indication that tlK)se assets have Suffered an impaimient lo$y. If any such ind￿atiOn gxists. the recoverable amount of the a55el is estimated in order to determine the extent of the impairmènt loss (if any). 12- THE FREE CHURCH OF ENGLAND CENTRAL TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 A¢¢ountlng pollcles Icontlnuedl 1.9 Cash and Gash gqulvllonts Cash and cash equiv81ents include cash in hand. deposits heky at call wtrth banks. other short-lerm liquid investments wlh ar￿Inal maturlties of three month5 Qr les$. and bank overdrafts. Bank overdrafts are show within l)orrwngs in ￿r￿n1 liabilities. 1.10 Financlal Instruments The Company has eled¢d lo app￿ the provisions of S8Ction 11 '8asic Finanual Instruments, and Section 12 'Other Financial Instruments Issues, of FRS 102 to all of its finanual instruments. Financial instruments are recognised in the Compan￿$ balance sheet when the Company becomes paty lo the contractual piovisions of the instrument. Financial assets and liabilities are offset. with the nel amounts presented in the finanual statements, when there is 8 legally enforceable right to set off the recognised amounts and there is an intention to Sett￿ on a net basis or lo realise the asset and settfe the Ilability simuFtaneously. Basic financial assets Bas￿ finanaal assets, which indudè debtofs and cash and bank balances, are initialty measured 8t transaction price including transaction costs and are Subsequenlty earned al amortised cost using the effective interest method unless the arrangement cDnstitut8s a finanang transaction, where the transaction is measured 81 th8 present value of the future receipts discounted at a market rale of interest. Financial assets dassified as receivable within one year are not omortised. Basic financial liabllllles Basic fin8nci81 liabilities, including creditors and bank loans are initially re(£gnised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument 1$ measured at the present value of the futur8 Poyments discounted al a market rate of interest. Flnancial liabilities dassified as p8yab18 w￿1n one year are not am￿liSed. Debt Instruments are subsequenfjy carried at amortlsgd cost, using the effective interest rate method. Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course ol operations from supplier5. Amounts payable are clas$thed as current li8biliti8s il payment is due within one year or less. If not. they are presented as non-current liabifilie& Trade creditors are recognised initially at transaction price and subsequently measured al amortised cost usiw the gffecty've interest methcrfl. D•r•¢ognllion of financial liabilftles Financial liabilities are derecognised when th8 Company's eonlractugl obligations expire or are discharged or cancelled. 1.11 Employe• b8neflts Th8 Cost of any unused hol￿aY entitlement 18 recognised in the period in which the employee's services are received. Temiinalion benefits are Towgni$ed immedialely as an expense when the Company is demon8tr8bly eommrtted lo leminate the employmènt of an employee or to provide termination bgnefils. 1.12 RetSrement bènoflts Payments to defin8d contribution re￿rernenI benefit schemes are c*arged as an expense a$ they fall du•. 13- THE FREE CHURCH OF ENGLAND CENTRAL TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 Crltl¢al a￿ountIng o$tlmats5 and judgem•nts In the appliealion of the Company's ac£ounllng pOl￿eS, the Tru8tees are Tequired to make judgemerrts, estimates and assumptions abo￿ the carrying amount of assets and liabilities that are not readily apparent from olh8T sources. The eslimales and associated assumptions are based on historical experience and other factQTS that are considered to be relevant. Actu81 resuhs may dfftr from these estimates. The estim8tes and underwing assumpti￿$ are revlewed an ongoing basis. Revisions to accounting estimales are fecognisèd in the period in whith the estimate is revised where the revision affects cnly that perlod, or in the peri¢d of the revision and future periods where the re￿$[￿n affects both current and future periods. Donations and legaclos Unrestrfcted funds Total 2023 2022 Legaues receivable 500 Income from ¢har5table activities Unrestrlcted Restrlctsd funds funds 2023 2023 Total Unrestrlctgd Restrlcted funds lunds 2022 2022 Total 2023 2022 IncLNning resources from charitsble activities contributions from churches other ineeme 52.770 52.770 202.211 55,684 55,684 723 202.211 723 202,211 52,770 254,981 723 55,684 56.407 Income from inve¥tments Unrgstrlcted Unrgslrfctsd funds fund8 2023 2022 Interest receivable 3,478 1.067 Interest receivable comprised £824 loan Interest (2022 - £7421 and £2.654 bank inlerest12022- £325). 14 THE FREE CHURCH OF ENGLAND CENTRAL TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 Charltablg actlvlties 2023 2022 Stipend costs Depreciation and impairment Book-keeping fee$ Accountsn General exp&nse8 Legal and professional fees Charyes and fees Property repars 138,874 229 456 11,312 5,135 18,646 1,112 14,206 100.924 229 2,688 12,546 8,746 21,710 890 189,970 149,239 Grant fvnding of activities {8ee note 71 30.015 2,583 219.985 151,822 Anatysis by fund Unreslricled funds Restricted funds 133.780 86.205 53,537 98,285 219,985 151,822 Grants payable 2023 2022 Grants 30.015 2,583 30.015 2,583 Net movement In funds 2023 2022 The net mOv￿nent in funds is stated after chargingllerediting).. Fees payable lo the charity's independent examlner.. - for the indewdenl examination of the chaTltls financial statements - for other asswance services Depreciation of owned tangible fixed assets 2.000 9,312 229 2,000 7,626 229 15- THE FREE CHURCH OF ENGLAND CENTRAL TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 Indepgnd•nt Examlnefs R•mun8ration Foes payable to the Charlty's Indopond8nt Examlner: 2023 2022 Independent Examination of the Charty'$ Annual Accounts 2,000 2,000 Non-audit seNlces A¢countancy and payroll s8rviees 9.312 7,626 10 Tru$ts•$ None of the Trustees lor any pernons connected with them) received any Temuneration or beneffts from the Company durtro the year. 11 Stipend The average monthly number of office holders receiving a stipend during th8 year was.. 2023 Number 2022 Numbèr Ministers General Secretary Total Employmènt costs 2023 2022 Sts'pends &￿31 security costs Other pension costs 132.763 5.021 1,090 95.419 4.491 1,014 138,874 100,924 There were no employees vthose annual reMU￿ratIOn was £60,000 or more. 12 Other expendlture Unrestrfcted Rèstricted funds funds 2023 2023 Total Unrèstrlcted Restrf¢ted funds funds 2022 2022 Total 2023 2022 Intere51 on late PAYE 12 12 16- THE FREE CHURCH OF ENGLAND CENTRAL TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 14 Taxatlon The ¢hanty is exempt from taxation on its activities because all ils income is appl￿d for charil*le purposes. 16 Tanglble flxed assets Frtehold l•nd and bulldlng$ Cost At 1 January 2023 Additions 282,790 406,661 At 31 December 2023 869.451 Deprnciation and impalrment At 1 January 2023 OepTecialion charged in the year 2,290 229 At 31 December 2023 2,519 Carrylng amount At 31 De￿mber 2023 666,932 At 31 December 2022 260.500 During th8 year a house was purchased in Moreeambe. 16 Flxed asset investments Llstod Othgr Invgstmonts investments Total Cosl or valuation At 1 January 2023 Valuation changes Imthdrawals 476,513 53.337 {258,000) 100 476.613 53,337 {258.000) At 31 De¢ember 2023 271,850 100 271.950 Carrylng amount At 31 December 2023 271,BSO 100 271,950 At 31 December 2022 476,513 100 476,613 2023 2022 Olh8r investments comprise" Notes Investments in subsidiarK8S 100 100 18. THE FREE CHURCH OF ENGLAND CENTRAL TRUST NOTES TO THE FINANCIAL STATEMENTS {CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 16 Fixed asset investments (Conllnuodl 17 Debtor8 2023 2022 Amounts falllng due wlthln ono yèar: Other debtors 40,254 25.137 Other debtors includes a loan trom the Central Trust to St Jude's Church. Walsall. Interest is charged al 3%. There are no fixed r8payment term$. The balance owed to the Central Trust 88 8131 De￿rnber 2023 was £38,161 12022 - £25,137). 18 Loans and overdrafts 2023 2022 Interest free loans 128 128 payab￿ after one year 128 128 19 Creditors- amounts f•lllftg due wlthln one year 2023 2022 other creditors 31,572 36,093 20 Crodltors: amounts falling due after morn than one year 2023 2022 Other loans 18 128 128 21 R8tlrgment benefft schemes 2023 2022 Deflned contribution scheme8 Charge lo profit or b)ss in rosp8Ct of defined contribution schemes 1.090 1,014 19- THE FREE CHURCH OF ENGLAND CENTRAL TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 21 Retlrom•nt benefit 8cheme6 (Continued) The Ccrfnpany operate$ a dellned contrlbutlon pension scheme for all quality'ng employ8e5. The assets of the scheme are held separately from those of the Company in ￿ independenlly administered fund. 22 R•stri¢t•d fvnds The reslrided funds of the charity ￿mprf$e the unexperKled balances of donations and grants held on trust subject to specific conditrons by donors 85 to how Ihfry may be usèj. At 1 January 2023 Incoming resources Re80urces expended Transfe Galns and losses At31 D￿0mber 2023 Soulhem Diocese Bishops Fund National Stipend Scheme Russian Church Arval 85.114 {10.01)01 75,114 240.995 52,770 176,209) 26.976 244,532 2.772 2,772 328.881 52,7TO 186,209) 26,976 322,418 Prevlous year. Al l January 2022 Incomlng R•sourc resources expended Transfern Galn$ and A131 Iwes December 2022 Southem Diocese Bishops Fund National Stipend Scheme Russian Church AFpeal 85.114 85,114 330,223 55,684 198.285) 146,627) 240.99S 2.772 2,772 418.109 55,684 198,285} 146,627} 328,881 a) The Southem Diocese Stipend FU￿ represents funds set aside to augment Stopends to dergy in the Scuthem Diocese. b) The Russian Church Appeal represents funds available to assist the dev8lopmenl of a church in St Petersburg, Russia. THE FREE CHURCH OF ENGLAND CENTRAL TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 23 Deslgnated funds The income funds of the charity include the following designated funds vthi¢h have been sel aside out of unrestrided funds by the trustees for specifi¢ purposes: At 1 January 2023 Galns and 108888 At31 December 2023 CFergy Benevolent Fund Somerville Bequest 104,860 101 6,070 110,930 101 104,961 6.070 111,031 104.961 6,070 111,031 Prevlous year: At 1 January 2022 Gains and losses At31 December 2022 Clergy Benevolent Fund Somerville Bequest 115,352 101 {10,492} 104,860 101 115.453 {10,4921 104,961 a) The Clergy 8enevolent Fund is used to a5S151 retired clergy of Tho Free Church of England and their WKl¢)ws and to augment pension contributions on behalf of serving clergy of The Free Church of England. b) The Somerville Bequest 15 used to 888i3t the running of The Free Church of Englar￿ Gentral Trust. 24 Unrostrlctod funds The unrestr￿ed fvnds ofthe charity com￿Se Ihe unexpended balance5 01 donations and grants which are not ￿bject to specifrc conditions by donors and grantors as lo ht)w they may be used. At 1 January 2023 InGomlng R68oufces rasourco$ expended Trdnsfors Oalns and loss•s At31 December 2023 Goneral funds 459.100 206,189 {133.7881 20,291 551.792 459.100 206,189 {133,788) 20,291 .551,792 21 THE FREE CHURCH OF ENGLAND CENTRAL TRUST NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 24 Unrestrkt¢d fvthds {Contlnuedl Previous year: Al 1 January 2022 Incorning Resources resources expended Trnnsfer¥ Galns and losses At31 D8¢ornber 2022 General furKIs $45.918 1,7 153.537} 135,071) 459,1 545,918 1,79) {53,537} 135.071> 459,100 25 Analysis of net ass•ts b•tween funds Unrestrlcted Dosignated fund8 funds R•strf¢tsd funds Total 2023 2023 2023 2023 Fund balanc•$ at 31 Decemb8r 2023 are represented by: Tangl￿9 assets 666,932 Investments {142.521) Current asselsllliabilities} 27,509 Long temi liabilities {128) 666.932 271,950 46,487 11281 76,095 34,936 338.376 (15,9581 551,792 111.031 322.418 985,241 Unrestricted Dosignatèd lunds funds Restrlcted fvfftds Total 2022 2022 2022 2022 Fund balances at 31 D8¢ember 2022 are represented by: Tangibl& assets 260.500 Investments 95,188 Current asselsllliabilits'es} 103,540 Long terrn liabilities (128) 260.500 476,613 155.957 11281 70.025 34,936 311,4 17,481 459,100 104.961 328,881 892.942 Related party tran8actlons During the ygar the Company paid £1,10512022- £1,854) to Mrs Sharon Clements, the wife of a Trustee, for book-koeping 8eNices. -22-