Registered number- 01328728 Charity number.. 275364 THE UNITED REFORMED CHURCH (SOUTH WESTERN SYNOD) INCORPORATED (A COMPANY LIMITED BY GUARANTEE) TRUSTEES. REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 ? Bishop Fleming UNITED REFORMED CHURCH {SOUTH WESTERN SYNOD) INCORPORATED IA COMPANY LIMITED BY GUARANTEEI CONTENTS Page Reference and Administrative Details of the Company? its Trustees and Advisers Trustees, Report Independent Auditors. Report on the Financial Statements statement of Financial Activities 2-12 13-16 17 8alance Sheet 18-19 statement of Cash Flows 20 Notes to the Financial Statements 21-43 UNITED REFORMED CHURCH {SOUTH WESTERN SYNOD) INCORPORATED IA COMPANY LIMITED BY GUARANTEEI REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 DECEMBER 2023 Trustees Revd Ruth Whitehead, (Chair until 21 March 20231 (resigned 21 March 20231 Mr lan Harrison, Trust Secretary Mrs Janet Raven Revd Neil Thorogood Revd Richard Gray, Treasurer Revd Donald Macalister (resigned 11 March 20231 Revd Robert Weston Revd Sarah Simpson Mrs Gwen Jennings (resigned 6 November 20231 Company registered number 01328728 Charity registered number 275364 Registered office Taunton United Reformed Church 18 Paul Street Taunton Somersel TA1 3PF Company secretsry Mr lan Harrison Chair Revd Ruth Whitehead Independent auditors Bishop Fleming LLP Chartered Accountants 2nd Floor Stratus House Emperor Way Exeter Business Park Exeter EX1 3QS Bankers Lloyds Bank PLC 2 Palace Avenue Paignton Devon CAF Bank Ltd 25 Kings Hill Avenue Wesl Malling Kent Solicitors WBW Solicitors The Forum Barnfield Road Exeter EX1 1QR Star Legal Ltd 40 High Street Thornbury BS35 2AJ Page 1 UNITED REFORMED CHURCH {SOUTH WESTERN SYNOD) INCORPORATED IA COMPANY LIMITED BY GUARANTEEI TRUSTEES, REPORT FOR THE YEAR ENDED 31 DECEMBER 2023 The Trustees (who are also directors of the charity for the purposes of the Companies Acll present their annual report together with the audited financial statements of The United Reformed Church Isouth Western Synod) Incorporated Ilhe company) for the ended 31 December 2023 The Trustees confirm that the Annual report and financial slalements of the company comply with the current statutory requirements, the requirements of the company's governing document and the provisions of the Slalement of Recommended Practice ISORPI, applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 leffeclive 1 January 20191. Since the company qualifies as small under section 382 of the Companies Act 2006, the Strategic Report required of medium and large companies under the Companies Act 2006 Islrategic Report and Directors, Report) Regulations 2013 is not required. Objectives and activities a. Policies and objectives Summary ofobjecls The administration of the Trust's assets and the provision of funds for the work of the South Western Synod. Acting as property holding trustee of local churches, within the terms of the United Reformed Church Acts 1972 and 1981 and 2000. Acting as Iruslees of endowments of local churches and the Synod, wlh responsibility for administering them. Acting as Iruslee for earmarked funds, which are not reflected in the accounts. Acting as Iruslee of various Charity Commissioners, schemes. The Charity has had °due regard to the guidan￿ published by the Charity Commission. in respect of public benefit. Trustees and management consider that the functions below facilitate the provision of public worship for the public benefit. Eamiarked funds are those held by the Trust on behalf of churches within the Synod. b. Strategies for achieving objectives Explanation of aims The primary aim of the Trust is lo act as managing Trustee for all the tangible resources of the Synod and lo fund the activities of the Synod. This laller is achieved by having sufficient income generating funds for the Synod to be an effective supporter of the churches. Thus, there are investment properties generating income and the potential for capital growth, and Investments which generate Income and some capital growth. The objective is lo ensure that there is sufficient income for the needs for the foreseeable future for the work of the Synod. The figure is rising both by inflation and increased expectations as well as by governance requirements. c. Activities undertaken to achieve objectives The primary functions of the Synod and therefore the Trust are". To provide prophetic leadership for the Synod and to provide encouragement and support for churches, their leadership and ministers and lo encourage them in prophetic witness and discipleship Provide funds to encourage and enable new and Innovative ways of mission in the local churches Provide training and development for Ministers and lay people lo enable them to proclaim the Gospel and lead mission Provide support for ecumenical activities al local and regional levels Provide legal and technical support in the maintenance and development of local church properties Page 2 UNITED REFORMED CHURCH {SOUTH WESTERN SYNOD) INCORPORATED IA COMPANY LIMITED BY GUARANTEEI TRUSTEES, REPORT ICONTINUEDI FOR THE YEAR ENDED 31 DECEMBER 2023 Objectives and activities (CONTINUED) d. Personnel In order lo further the life, work and witness of the synod, and its local churches, the following staff posts have been established and filled.. Propety and Trust Officer - Ms Diane Phillips is a fulllime employee of the Trust and is Assistant Trust Secretary. Moderalorfs PA - Mrs Hilary Bradshaw is a part-time employee of the Trust. Synod Office Administrator - Mrs Dinah Firmin is a part-lime employee of the Trust. Ms Rachel Leach was appointed as Synod Clerk on a part time basis. She is a Trust Officer, attends Executive and Trustee meetings but is not a Trustee due lo her salaried slalus. Ms Paula McDonagh was appointed as a full-time Assistsnt Trust & Propety Officer from November 2018. Her role changed in 2022 to become Finance Administrator supporting the treasurer. Ms Colleen Lewis was appointed as a part-lime Property & Trust Adminislralor in septern￿r 2022. Ms Claire Partridge was appointed part time Safeguarding Offi'cer in June 2023. Revd Roy Lowes is a part lime member of staff concerned with Learning and training and is also acting in a partial role of Moderator. We also have Synod Pastoral Advisors who act as a link be￿een the Synod and the churches. All are part time and the Synod meets their expenses. They are.. Revd Gerald England Revd Sue Cossey Revd James Thorneycroft Revd Stephen Newell Mrs Janet Gray The officers of the Synod and Trust are.. Moderator - Revd Ruth Whilehead.. stipend, housing and support costs are met by the United Reformed Church centrally. Some hospitality and some expenses are met by the Trust. Synod Clerk - Rachel Leach is paid a salary for her part lime work as clerk. Trust Secretary- Mr lan Harrison, no costs are incurred other than legitimate approved expenses. Trust TreaSu￿r- Revd Richard Gray.. apart from an honorarium as permitted under the governing document no costs are incurred other than legitimate approved expenses. Objectives for 2023 The primary objective of the Synod is lo support local churches by providing training, encouragement, specialist skills and financial support. It does this through invested funds and property sales which generate capital and income. Page 3 UNITED REFORMED CHURCH {SOUTH WESTERN SYNOD) INCORPORATED IA COMPANY LIMITED BY GUARANTEEI TRUSTEES, REPORT ICONTINUEDI FOR THE YEAR ENDED 31 DECEMBER 2023 Objectives and activities (CONTINUED) e. Grant making policies and other financial support The Trust's policy on grant making is lo make grants for capital expenditure projects and for Mission Projects and other activities through Enabling Grants as needed. This is done on an ad hoc basis as the need arises. It does not make grants lo non URC bodies other than lo Ecumenical Groups of which the URC SW Synod is a participant. Property grants cover 50D/o of 5 yearly survey costs and asbestos survey costs provided that the report is shared with the Synod. Churches may apply for fa￿lIft grants no more often than once every 5 years for works associated with maintaining the church buildings in good order. The grant is 50°/0 of costs lo a maximum of £20,000. In addition, churches may apply for support for up to 20 /0 of costs of works on the building. Where a church has a sharing agreement these grants are reduced according lo the number of shares.Mission grants are for the development of URC Mission in local churches. It would be expected that there is at least a matching contribution from the local church. In 2018 we intrOdU￿d Enabling Grants to help churches with their work. There is a simplified form for grants of up lo £2,500 and a more extended application for grants up lo £25,000. These grants were increased in October 2023 10 £5,000 and £50,000 The Trust now provides churches with grants lo undertake activities to make their buildings greener. These can include LED lighting, better insulation and improving windows where permitted. The Trust can also make loans lo churches and ministers. Ministers, loans are lo support purchase of a car and musl be repaid within 4 years. Church loans are lo support major works and to qualify there musl be the capability of repayment within usually 5 years. Loan interest is charged at 1 g/0 above the Bank of England base rate. Where a church needs lo make significant Investment in the fabric of a manse, bul does not have the means lo do so, the Trust may consider taking an equity share in the manse. All maintenance responsibility remains with the local church. If the manse is rented lo a third party rent income would be apportioned be￿een church and Trust according to their ownership share. Significant capital works costs would also be apportioned. The Trust, in recognising that there was a significant delicit in the Pension provision for Ministers of Word and Scar￿Ment has joined with other Synods lo provide a grant to the United Reformed Church Retired Ministers Pensions Trust lo help to fill In the deficit In assets. The Synod has committed a grant of up lo £3 million with payments spread over a period of seven years lo meet the deficit in the Fund which totals around £45 million. The grants committed by the synod have previously been accrued in the financial slatemenls. The next inslalmenl of £1,100,000 was paid out in 2023.11 is anticipated that most of the funds will come from the sale of redundant properties. Page 4 UNITED REFORMED CHURCH {SOUTH WESTERN SYNOD) INCORPORATED IA COMPANY LIMITED BY GUARANTEEI TRUSTEES, REPORT ICONTINUEDI FOR THE YEAR ENDED 31 DECEMBER 2023 Objectives and activities (CONTINUED) f. Main activities undertaken to further the company's purposes for the public benefit Having regard lo the guidance published by the Charity Commission, the Trustees continued to provide public benefit by seeking lo advance the Christian religion in accordance with the doctrines, principles and usages. and the Scheme of Union of the United Reformed Church. Some of the broad strategies are sel out in the following paragraphs, and further details and examples are given under Achievements and Performance. The 110 local churches are all separate charities. Wotship and partnership The Southwestern Synod of the United Reformed Church is part of the Church universal. As such its aim is to proclaim the love of God in Jesus Christ in word and deed. A main stotegy lo achieve that aim is the provision of public worship in viable congregations across the area covered. This is increasingly carried out in partnership with ecumenical colleagues, particularly the Methodist Church with whom we have several shared congregations. Making a difference As the Catch the Vision prayer states, we are 'God's people,, being 'transformed by the gospel, in order to 'make a difference,. That 'difference' is being made in many ways, from the preaching of the gospel, through the pastoral care which helps individuals manage the traumas and tonsitions of life, lo the community building undertaken by our Church Related Community Workers ICRCWsl. and the funds that we raise lo reduce world poverty through Commitment for Life. The Local Mission and Ministry Review process, through which the Synods challenge and support their churches, is another key vehicle for increasing the effectiveness of local witness and service. Ethical and Environmental Considerations The Synod has recently been accepted as an ECO Synod under a scheme run by A Rocha. The Trust now provides churches with ECO grants. We lake sustainability seriously and most of our investments are invested in companies that are sustainable and have good environmental, social and governance characteristics. We have fitted solar panels lo one of our properties and offer support to local churches lo do so where planning regulations permit. g. Volunteers The company is grateful for the unstinting efforts of its volunteers who are involved in many aspects of its work cUrren￿Y our Synod Treasurer supports our bookkeeper. Estimated hours expended around 400. We have a number of people who serve on various Synod committees totalling around 500 hours It is eslimaled that around 500 volunteer hours were provided during the year. If this is conservatively valued at £11 an hour the volunteer effort amounts to circa £5,000. This figure has reduced due to more extensive use of video conferencing for many committees. Page 5 UNITED REFORMED CHURCH {SOUTH WESTERN SYNOD) INCORPORATED IA COMPANY LIMITED BY GUARANTEEI TRUSTEES, REPORT ICONTINUEDI FOR THE YEAR ENDED 31 DECEMBER 2023 Achievements and performance a. Key performance indicators The primary indicators of the work of the Synod are that spending (apart from Grants) should be broadly in line with the budget prepared and that the income should be broadly in line with expectations. The other financial indicator should be that our overall balance sheet should not decrease significantly. Clearly the grant of £3M to the Pensions fund has an impact on our balance sheet, which we anticipate will be mitigated by the continuing sale of redundant properties. Work is financed primarily from investment income and sale of properties," the laller can be difficult lo predict. Much of our expenditure is concerned with staff salaries and other costs, which are relatively stable. Grants are allocated as necessary, and since some of these are for extended periods, these can have a short-term impact on our balance sheet. In 2023 our overall performance was within our expectations. b. Roview of activities Perfomance in 2023 2023 has been a year of recovery for most churches. Investment returns from the stock exchange have gained significant value and dividends have been maintained. Deposit funds have received more reasonable interest since mid-2023. Staff have continued to work partially from home since March 2020. Support for churches The Synod has met its obligations in supporting churches through the efforts of the Synod Moderator, Pastoral Advisors and other members of the stsff. Ecumenical support The Synod has continued lo support the work of the Ecumenical bodies and several ecumenical projects. Ecumenical grants tolalled £3,955 and were given to 3 Churches Together groups working in the synod.we have also supported County Shows where the churches are represented. Property Property grants are offered lo churches to enable premises lo be effective for mission purposes. These grants included grants of 500/0 of the costs for 5 yearly surveys, grants of 500/0 of the costs for asbestos surveys, Facelift grants for major developments granted al most once every 5 years, and grants of up to 10QA towards building costs for approved building works. Nel grants of 1£76,6421 were made in the year including unused grants 1£60,394 in 20221. Major recipients are listed in note 11 and a full list in Annex v. Chaplaincy The Synod supports Chaplaincy activities at the University of Bristol to the total of £14,000 drawn from committed Iiabililies. As a part of ils sharing with the other Synods the Trust made a grant of £30,000 lo those Synods unable to meet their costs and has made provisions for future years of £100,000 (included in our liabilities). The Trust also voluntsrily shares 50¥0 of the nel proceeds of sales of redundant properties with the URC Trust who in turn share this with the Retired Ministers Pension Fund which is in deficit. This was increased from 10010 temporarily lo 509/0 in 2021 following a Synod resolution. Page 6 UNITED REFORMED CHURCH {SOUTH WESTERN SYNOD) INCORPORATED IA COMPANY LIMITED BY GUARANTEEI TRUSTEES, REPORT ICONTINUEDI FOR THE YEAR ENDED 31 DECEMBER 2023 Achievements and performanco (CONTINUED} Investment policy and perfomiance The Trust's funds may be invested in any investment, security, or property Iwhelher narrow or wider rangel at the discretion of the Trustees. However, the Trust takes its Ethical stance very seriously when making investment decisions. Following the invasion of Ukraine by Russian forces we have checked our investments have no significant investments in Russia. We also avoid investment in Israeli companies due lo Israel's actions towards Arab communities in the Wesl Bank. Financial review . Going concem After making appropriate enquiries, the Iruslees have a reasonable expectation that the company has adequate resources to continue In operational existence for the foreseeable future. For this reason, they continue lo adopt the going concern basis in preparing the financial slatemenls. Further details regarding the adoption of the going concern basis can be found in the Accounting Policies. b. Financial statements Income lo meet the objects of the charity is derived from capital funds subject lo Charity Commissioners, schemes, general purpose funds and from the sale of redundant properties and the closure of churches in accordance with Schedule 2 of the United Reformed Church Acts 1972 and 1981 and 2000. These funds are held for the religious and charitable work of the churches In the Southwestern Synod. The total incoming resources for the year before investment gains and losses are £4,338,897 1£1,396,397 in 20221. There was a very low level of deposit interest until later in the year, and we have therefore kept the deposit holdings as low as possible during the year. No new loans to ministers and £6,396 to 2 churches 1£15,300 and £27,673 in 20221 were made during the year and repayments, conversions to capital and provisions lotalled £14,339 and £52,334 respectively leaving balances of £6,276 & £189,588 1£20,615 & £236,497 in 20221 (Note 171. Charitable expenditure by the Synod Trust lolher than grant making) lolalled £669,7241£525,052 in 20221 and in addition grants lo churches and other bodies lolalled £401,5961£202,788 in 20221 of which £76,6421£67,272 in 20221 was for property related grants. Some of the grants are conditional and depend upon schemes being submitted. All grant commitments are taken as liabilities from the date they are awarded. Some are one year (all propety grants) and some commitments extend up lo 5 years. Various earmarked. funds arising from the sale of properties are administered by the Trust Corporation until such lime as the funds are required for new expenditure by local churches. Some of the funds may be released in due course to the Trust for general purposes because of 3 way meetings be￿een church, Synod and Trust. These funds are not reflected in the accounts but note 29 gives the total of amounts involved. The Charity Commissioners have established a number of schemes with the Trust Corporation as managing Iruslee, comprising funds arising from the apportionment of County Union Funds. The capital of these funds is maintained separately, but income arising may be used for general purposes and, where designated, for welfare purposes. These are Restricted Funds as defined by the Charities Act 2011 and details are shown in note 22. Details of the funds amounting to £21,271,519 lof which £2,525,455 represents Charity Commissioners Scheme and other reslricled funds) and how they are represented by assets are shown in the Balance Sheet. Page 7 UNITED REFORMED CHURCH {SOUTH WESTERN SYNOD) INCORPORATED IA COMPANY LIMITED BY GUARANTEEI TRUSTEES, REPORT ICONTINUEDI FOR THE YEAR ENDED 31 DECEMBER 2023 c. Principal risks and uncertainties During the year the Iruslees have undertaken a review of the risks with which the Synod Trust is fa￿d. This is carried out by means of an annual review to identify risks in their areas and lo report, noting the measures that are being taken to manage the risk. The risks which are deemed as having the highest impact and likelihood are given particular attention. Those risks fall broadly into three areas.. risks associated with serious reputational damage particulady with regard to safeguarding matters., and risks associated with a declining membership and consequent reduction in resource, and". risks associated with our investment policy. Reputational matters are taken very seriously, and the Trust has a process in place whereby anyone concerned that a matter may receive unfavourable publicity refers that matter to the Moderator who will advise on ils handling or, if the matter is particularly sensitive, may escalate to the Central organisalion. The Trust generally follows central URC policy in respect of investment decisions. There are clear exclusions for arms, gambling, tobacco, and fossil fuel extraction and supply, as it is the church's belief that these are not COnSlStent with its values. The Synod during 2021 made a commitment to the Retired Ministers Pension Fund of £3,000,000 to be paid over a period of S years. The 2022 & 2023 commitments of £500,000 per year have already been paid and we paid an additional £600,000 in 2023. As al 31 December 2023, £1.15m of the £3m commitment is still outsanding. Due to the excess contributions made to date the Charity expects to have paid off the commitment in full by 31 December 2026. This is to move the fund to a stable position. The safeguarding of children and adults at risk is seen as a key responsibility of the Trust and its 01￿ClorS. Revised guidance on safeguarding mallers was issued to all churches in 2022 and materials are available on the United Reformed Church website. Churches are required to report annually on safeguarding matters to the synod's safeguarding officer. DBSIPVG checks are mandatory for all active ministers and key officers including all who work with children. d. Reserrfes policy and reserrfes At 31 December 2023 the Charity had unreslricled reserves amounting to £18,746,064. Included in this sum are £3,954,603 being the value of property actually used by the Synod, fixed asset investments of £9,450,000 that are being held primarily for income generation purposes along with investment properties of £4,640,394 and loans to Churches, and ministers tolalling £195,834. Residual free reserves amount after allowing for other smaller designations of funds amount lo £501,145. The Charity considers il appropriate to relain a minimum level of free reserves of equivalent lo resources expended in approximately 12 months i.e. £500,000. This allows for fluclualions in the level of income and variations in cash flow. As house purchase is often involved, significant sums can be involved. The Trust aims to provide for all expenditure, including grants, from its annual income. 11 does not hold Reserve Funds, except for the Revaluation of Assets Reserve. Capital is held lo provide the income necessary lo maintain ils activities. e. Material investments policy The Trust's funds may be invested in any investment, security, or property al the discretion of the Trustees. Page 8 UNITED REFORMED CHURCH {SOUTH WESTERN SYNOD) INCORPORATED IA COMPANY LIMITED BY GUARANTEEI TRUSTEES, REPORT ICONTINUEDI FOR THE YEAR ENDED 31 DECEMBER 2023 Structure. governance and management a. Constitution The United Reformed Church Isouthwestern Synod) Incorporated referred to as 'The Trust" is a Company Limited by Guarantee, number 01328728. It is a Registered Charity, number 275364, and its registered office is at Taunton URC, 18 Paul Street, Taunton TA1 3PF. In many respects the Trust operates as the manager of the assets which are used to fund and promote the work of the United Reformed Church Southwestem Synod (The Synod), which itself has no funds or assets. 11 is governed by a Memorandum and Articles of Association. Ils objects, inter alia, are to advance the Christian ligion and propagate the gospel and to further the objects, purposes, and doctrines of the United Reformed Church, particularly within the Soulhweslern Synod area. The principal object of the company is lo support local churches by providing training, encOu￿gement, specialist skills and financial support. It does this through invested funds and property sales which generate capital and income. The￿ have been no changes in the objectives since the last annual report. b. Methods of appointment or election of Trustees The existing Council has the power to appoint new members lo fill vacancies on the Council. As noted above, directors musl be members of the Synod Executive Committee and are chosen by that committee to serve as D1￿clOrS of the Trust because of availability and skills. c. Policies adopted for the induction and training of Trustees Trustee training is provided when needed to assist Directors to understand their role. Training was carried out on Safeguarding responsibilities of Trustees. d. Organisational structure and decision-making policies Most of the members of the company are members of ils Council, and act as Trustees and Directors. The members of the Council who served throughout the year (unless otherwise indicated) were as listed on page 1 unless noted. The Council is also served by". Ms Diane Philips IAssistant Secretary) who is also an employee of the Trust. A number of Trust Officers have been appointed by the Council to carry out the dayt-t(Fday management of the company s affairs, and these are". Revd Ruth Whitehead Chair, Mr lan Harrison Secretary, Revd Richard Gray Treasurer, Ms Rachel Leach Synod Clerk and supported by Ms Diane Philips Assistant Secotary. All Trustees and Trust Officers act in a voluntary capacity. But Revd Richard Goy receives an Honorarium connected with his role of Staff Management and Bookkeeping as permitted under the governing document. Under the terms of the Trust the Directors have delegated the day lo day running of the Trust to the Officers. Significant decisions are brought to the Directors of the Trust for concurrence. The primary purpose of the Trust is lo enable to Synod lo function effectively. Essentially power of spending Trust Funds is delegated by the Synod to its executive as noted above. Page 9 UNITED REFORMED CHURCH {SOUTH WESTERN SYNOD) INCORPORATED IA COMPANY LIMITED BY GUARANTEEI TRUSTEES, REPORT ICONTINUEDI FOR THE YEAR ENDED 31 DECEMBER 2023 Structure. governance and management ICONTINUEDI e. Related party relationships The United Reformed Church Soulhweslern Synod and the United Reformed Church (Southwestern Synod) Incorporated The Synod through its Executive arranged for the selling up of the United Reformed Church Isouthwestem Synod) Incorporated I'The Trust I lo be sel up inter alia lo lake over and manage such assets as may be legally transferred Ilo the Synodl under the Trusts declared in the URC Acts, Schedule 2 parts l and11 and to lake over and manage or direct the management of the assets and liabilities of the Synod. Following discussion with the Charity Commission, in November 1997 the Trust and General Purposes committee and Synod (March 19981 passed resolutions clarifying the situation. Among the important features of the Synod Trust interaction are.. The Members of the Trust Idirectorsl are drawn from the Synod Executive Committee. Any members of the Trust who cease to be members of Synod Executive Committee cease lo be members of the Trust. The Trust has funds which ao administered on behalf of the Synod or held in trust for local churches. The officers are charged with day to day management of the funds, subject always lo ratification of their actions by the Synod Executive Committee. The Synod Executive Committee on behalf of Synod has the power to make grants,. for Property grants it has delegated authority to the Synod Property Committee. The Synod Executive Committee is able to do so because ex officio the Moderator, Synod Treasurer, Trust Treasurer, Tru51 Secretary and the Synod Property & Trust officer are members of the Synod Property Committee and are all currently members of the Synod Executive Committee From 2009 the Synod no longer has any funds or assets of ils own. All funds are held and managed by the Trust. f. Risk management The Trustees have assessed the major risks to which the company is exposed, in particular those related to the operations and finances of the company, and are satisfied that systems and procedures are in place lo mitigate exposure lo the major risks. Plans for future periods There is no planned change in the overall pattern of activities or short terms aims. The steady state outgoings of the Synod Trust are likely to be around £500,000 per year. This requires assets to be increased to enable this level of expenditure to be maintained without the need lo draw on capital reserves for regular expenses. At the end of 2023 we have 4 residential properties and 5 redundant churches lo disFX)se of. We also have 1 church leased with a view to subsequent purchase. We currently own 100D/D of 8 manses and have shares in 7 manses. 11 is our intention to take over ownership of all manses over the next few years, hopefully by agreement with the local churches. There are around 45 manses not on our asset register, some of which are joint in ownership with other denominations. Building and major refurbishment projects involving several churches in the Synod are in hand. Page 10 UNITED REFORMED CHURCH {SOUTH WESTERN SYNOD) INCORPORATED IA COMPANY LIMITED BY GUARANTEEI TRUSTEES, REPORT ICONTINUEDI FOR THE YEAR ENDED 31 DECEMBER 2023 Funds held as custodian The Synod Trust is the trustee for most of the churches of the Synod, lalthough the Elders of the local churches are responsible for day to day management of them) and is the charity Iruslee except for property disposals pursuant lo section 117 of the Charities Act 2011. A description of the funds held on behalf of local churches is contained in the notes to the financial stalemenls. These generally consist of churches and manses and specific investments held in trust for the use of churches in specific areas. The Trust also acts as the trustee for the Synod properties. Members. liability The Members of the company guarantee lo contribute an amount not exceeding £1 to the assets of the company in the event of winding up. other information In order to maintain a suitable capital base, all redundant propety assets transfer to the Synod Trust. The synod has agreed that 50°/0 of the nel asset value of redundant church buildings will be shared wth the Ministers Pension Fund. Where assets of a church that is continuing in some form are sold, the Trust strategy Is that usually 40Q/o of the net re￿Ipts can be sel aside for the continuing church lo apply for and the balance reverts lo the Trust. In some cases, the 40Q/o can be larger with the consent of the Trust. The Trust meets the expenses of ils employees in line with the URC'S Plan for Partnership. It also meets the costs of volunteers, expenses for work undertaken on behalf of the Synod or Trust. The Trust's policy on investments is lo make investments which are suitable for its charitable status, are diversified appropriately lo the circumstances, and have regard to short and long term requirements. The needs of capital and income are considered with regard lo priorities of balancing maximum income and increasing capital lo keep pa￿ with inflation. The policy is reviewed annually to ensure that il is adhered lo. The Trust does not make contentious li.e. non ethicall Investments. The major risk to which the Trust is exposed is the small number of persons who are primarily involved in ils activities. As far as possible accounting and other systems minimise this risk. The Trust is aware of the need lo ensure adequate suC￿Ssion lo ils main officers and aims lo achieve this from the relatively small pool of suitable persons who are members ofthe URC. Banking The main banker is CAF Bank, with a small account held with Lloyds. We also have a deposit account with CCLA, in addition lo inveslmenls. Auditors Bishop Fleming LLP have indicated their willingness lo continue in office as auditors. A resolution will be proposed at a meeting of the Executive IDirectorsl lo appoint the auditors and to aulhorise the Council to fix their remuneration for the ensuing year. Page11 UNITED REFORMED CHURCH {SOUTH WESTERN SYNOD} INCORPORATED IA COMPANY LIMITED BY GUARANTEEI TRUSTEES, REPORT ICONTINUEDI FOR THE YEAR ENDED 31 DECEMBER 2023 STATEMENT OF TRUSTEES. RESPONSIBILITIES The Trustees (who are also the directors of the company for the purposes of company lawl are responsible for preparing the Trustees. Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards Iunited Kingdom Generally A¢￿pted Accounting Praclicel. Company law requires the Trustees to prepare financial statements for each financial . Under company law, the Trustees musl not approve the financial statements unless they are satisfied that they give a true and fair view of the stale of affairs of the company and of Ils Incoming resources and application of resources, including ils income and expenditure, for that period. In preparing these financial statements, the Trustees are required to.. select suitable accounting policies and then apply them consislenlly., observe the methods and principles of the Charities SORP IFRS 1021., make judgments and accounting eslimales that are reasonable and prudent., stale whether applicable UK Accounting Standards IFRS 1021 have been followed, subject to any material departures disclosed and explained in the financial statements", prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. The Trustees are responsible for keeping adequate aceounling records that are suffieienl to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them lo ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Disclosure of inforrnation to auditors Each of the persons who are Trustees al the time when this Trustees, Report is approved has confirmed that.. so far as that Trustee is aware, there is no relevant audit information of which the charity's auditors are unaware, and that Trustee has taken all the steps that ought to have been taken as a Trustee in order to be aware of any relevant audit information and to establish that the charity's auditors are aware of that information. Approved by order of the members of the board of Trustees and signed on their behalf by.. Mr lan Harrison Trust Secretary Trustee Dale. 24 May 2024 Page 12 UNITED REFORMED CHURCH {SOUTH WESTERN SYNOD) INCORPORATED IA COMPANY LIMITED BY GUARANTEEI INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF UNITED REFORMED CHURCH (SOUTH WESTERN SYNODI INCORPORATED Opinion We have audited the financial statements of The United Reformed Church (South Western Synod) IncorF)Offtted Ilhe 'charitable company'l for the year ended 31 December 2023 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and the related notes, 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 Praclicel. In our opinion the financial statements". give a true and fair view of the state of the charitable companls affairs as at 31 December 2023 and of ils incoming resources and application of resources, including its income and expenditure for the year then ended., have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice,. and have been prepared in accordan￿ with the requirements of the Companies Act 2006. Basis for opinion We conducted our audit in accordan￿ with International Standards on Auditing (UK) IISAS IUKII and applicable law. Our responsibilities under those standards are further described in the Auditors, responsibilities for the audit of the financial stslemenls section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant lo our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtsined is sufficient and appropriate lo provide a basis for our opinion. Conclusions relating to going concern In auditing the financial slalements, we have concluded that the Trustees. use of the going concern basis of accounting in the preparation of the financial ststemenls 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 charitable company's ability lo continue as a going concern for a period of al least twelve months from when the financial ststemenls are aulhorised for issue. Our responsibilities and the responsibilities of the Trustees with respect lo going concern are described in the relevant sections of this report. Page 13 UNITED REFORMED CHURCH {SOUTH WESTERN SYNOD) INCORPORATED IA COMPANY LIMITED BY GUARANTEEI INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF UNITED REFORMED CHURCH (SOUTH WESTERN SYNODI INCORPORATED ICONTINUEDI Other information The other information comprises the information included in the Trustees, report and financial statements other than the financial ststemenls and our Auditors, Report Ihereon. The Trustees are responsible for the other information contained within the Trustees, report and financial statements. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly staled in our report, we do not express any form of assurance conclusion thereon. Our responsibility is lo 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 misstalemenl of this other information, we are required to report that fact. We have nothing lo report in this regard. Matters on which we are required to report by exception In the light of our kn￿edge and understanding of the charitable company and its environment obtsined in the course of the audit, we have not identified material mislatements in the Trustees, report. We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report lo you if, in our opinion". the information given in the is inconsistent in any material respect with the financial statements., or the financial statements are not in agreement with the accounting records and returns certain disclosures of Trustees, remuneration specified by law are not made we have not received all the information and explanations we require for our audit. Responsibilities of trustees As explained more fully in the Trustees, Responsibilities Statement, the Trustees Iwho are also the d1￿CtorS of the charitable company for the purposes of company lawl are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such intemal contml as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the Trustees are responsible for assessing the charitable company's ability lo continue as a going concem, disclosing, as applicable, matters related to going concern and using the going concern basis of accounb'ng unless the Trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so. Page 14 UNITED REFORMED CHURCH {SOUTH WESTERN SYNOD) INCORPORATED IA COMPANY LIMITED BY GUARANTEEI INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF UNITED REFORMED CHURCH (SOUTH WESTERN SYNODI INCORPORATED ICONTINUEDI Auditors. responsibilities for the audit of the financial statements We have been appointed as auditor under the Companies Act 2006 and ￿port in accordance with the Act and relevant regulations made or having effect thereunder. Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misslatemenl, whether due to foud or error, and lo issue an Auditors, Report that includes our opinion. Reasonable assurance is a high level of assuonce, but is not a guarantee that an audit conducted in accordance with ISAS IUKI 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 lo influence the economic decisions of users taken on the basis of these financial statements. Irregul8rib'es, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, ouuined above, lo delect material misstalemenls in respect of irregularities, including fraud. The extent to which our procedures are capable of delecling irregularities, including fraud is detailed below. We have considered the nature of the sector, control environment, and financial performance of the charitable company", We have considered the results of enquiries with management, the directors in relation to their own identification and assessment of the risks of irregularities within the entity, We have reviewed the documentation of key processes and controls and performed walkthroughs of transactions to confirm that the systems are operating in line with documentation", and We have considered the matters discussed among the audit engagement team regarding how and where foud might occuring the financial statements and any potential indicators of f￿Ud. As a result of these procedures, we have considered the opportunities and incentives that may exist within the organisation for fraud and identifi'ed incorrect revenue recognib'on to be a significant risk. In common with all audits under ISAS IUKI we are also required to perform specific procedures to respond to the risk of management override of controls, including through the use of journal entries, this being a further significant risk. We also obtained an understanding of the legal and regulatory frameworks that the company opeotes in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the UK Companies Act, Charities Acts, the Charities SORP and lax legislation. In addib'on, we considered the provisions of other laws and regulations that do not have a direct effect on the financial statements bul compliance with which may be fundamental to the group and parent charitable company's ability lo operate or avoid a material penalty. These included employment and health and safety legislab'on. Our procedures to respond to the risks identified included the followng". reviewing the financial statement disclosures and testing lo supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements", enquiring of Trustees management conceming actual and potential litigation claims or breaches of laws or regulab'ons", performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement or fraud, ading minutes of meetings of those charged with governance and reviewing any correspondence with HMRC or regulators, Page 15 UNITED REFORMED CHURCH {SOUTH WESTERN SYNOD} INCORPORATED IA COMPANY LIMITED BY GUARANTEEI INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF UNITED REFORMED CHURCH (SOUTH WESTERN SYNODI INCORPORATED ICONTINUEDI reviewing the financial statements disclosures and lesling to supporting documentation to assess the cognition of revenue, and in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments, assessing whether the judgements made in making accounting estimates are indicative of a potential bias and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business. We also communicated relevant identified laws and regulations and potential foud risks lo all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit. Because of the inherent limitations of an audit, there is a risk that we will not detect all irogularities, 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 tfftnsaclions flected in the financial statements, as we will be less likely lo become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website al. www.frc.or .uklauditorsres onsibilities. This description forms part of our Auditors, Report. Use of our report This report is made solely to the charitable company's members, as a body, in accordance wth Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might slate to the charitable company's members those matters we are required to stale lo them in an Auditors, Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and ils members, as a body, for our audit work, for this reF)Ort, or for the opinions we have formed. Tim Borton FCA Isenior statutory auditor) for and on behalf of Bishop Fleming LLP Chartered Accountants Statutory Auditors 2nd Floor Stratus House Emperor Way Exeter Business Park Exeter EX1 3QS 28 May 2024 Page 16 UNITED REFORMED CHURCH {SOUTH WESTERN SYNOD) INCORPORATED IA COMPANY LIMITED BY GUARANTEEI STATEMENT OF FINANCIAL ACTIVITIES {INCORPORATING INCOME AND EXPENDITURE ACCOUNTI FOR THE YEAR ENDED 31 DECEMBER 2023 Restricted Unrestricted funds funds 2023 2023 Total funds 2023 Total funds 2022 Note Income from: Donations and legacies Charitable activities". Funds arising from closed Churches Other charitable activities Investments Other income 10.926 10.926 135,550 3,849,504 9.296 356.969 63,091 3,849,504 9.296 406.080 63,091 850,000 7,379 390,799 12,669 49.111 Total income 60.037 4.278.860 4.338.897 1,396,397 Expenditure on: Raising funds Charitable activities 3,827 39,460 3,766 1,028,094 7,593 1,067,554 7,680 727,840 Total expenditure 43.287 1.031.860 1.075.147 735,520 Net income before net gainslllossesl on investments 16,750 453.116 3,247,000 976.668 3,263,750 1,429.784 660,877 11,153,758) Nel gainslllossesl on investments Net Incomel{expendlture) Transfers between funds 469,866 13,3501 4,223,668 3,350 4,693,534 1492,8811 22 Net movement in funds 466,516 4.227,018 4.693,534 1492,8811 Reconciliation of funds: Total funds brought forward Nel movement in funds 2,058,939 466,516 14,519,046 4,227,018 16,577,985 4,693,534 17,070,866 1492,8811 Total funds carried forward 2.525.455 18.746.064 21.271.519 16,577,985 The Ststemenl of Financial Activities includes all gains and losses recognised in the year. The notes on pages 21 to 43 form part of these financial statements. Page 17 UNITED REFORMED CHURCH {SOUTH WESTERN SYNOD) INCORPORATED IA COMPANY LIMITED BY GUARANTEEI REGISTERED NUMBER..01328728 BALANCE SHEET AS AT 31 DECEMBER 2023 2023 2022 Note Fixed assets Tangible assets Investments 15 17 3,954,603 12,474,863 4,640,394 2,746,908 11,248,886 4,239,712 Investment property 16 21.069.860 18,235,306 Current assets Debtors Cash al bank and in hand 18 47,297 1.899,929 62,647 988,685 1.947,226 1,051,332 Creditors.. amounts falling due wthin one year 19 1797,286) 1793,6381 NET CURRENT ASSETS I LIABILITIES 1.149.940 257,694 Total assets less current liabilities 22,219,800 18,493,000 Creditors.. amounts falling due after more than one year 20 {948,2811 11,915,015) Total net assets 21.271.519 16,577,985 Charity fund$ Reslricled funds.. Reslricled funds Reslricled revaluation reserve 1,732,213 793,242 1,039,057 1,019,882 Total restricted funds Unrestricted funds 22 2,525.455 2,058,939 Unrestricted funds 14,556,169 4.189,895 10,934,421 3,584,625 Unrestricted revaluation reserve Total unrestricted funds 22 18.746.064 14,519,046 Total funds 21,271,519 16,577,985 Page 18 UNITED REFORMED CHURCH {SOUTH WESTERN SYNOD} INCORPORATED IA COMPANY LIMITED BY GUARANTEEI REGISTERED NUMBER..01328728 BALANCE SHEET ICONTINUEDI AS AT 31 DECEMBER 2023 The Trustees acknowledge their responsibilities for complying with the reqU1￿ments of the Companies Act 2006 with respect lo accounting records and preparation of financial statements. The financial statements were approved and 8Uthorised for issue by the Trustees and signed on their behalf by.. Revd Richard Gray Trustee Dale. 22 May 2024 Mr lan Harrison Trustee The notes on pages 21 to 43 form part of these financial statements. Page 19 UNITED REFORMED CHURCH {SOUTH WESTERN SYNOD) INCORPORATED IA COMPANY LIMITED BY GUARANTEEI STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2023 2023 2022 Cash flows from operating activities Nel cash used in operating activities Isee note 24} 11.641,429} 11,124,050) Cash flows from investing activities Dividends, interests and rents from investments Proceeds from the sale of tangible fixed assets Purchase of tangible fixed assets Proceeds from sale of investments Purchase of investments 406,080 389,753 1864,995} 2.774,262 1152,427) 390,799 1624,5851 1,491,762 1123,1731 Net cash provided by investing activities 2,552,673 1,134,803 Cash flows from financing activities Net cash provided by financing activities Change in cash and cash equivalents in the year Cash and cash equivalents at the beginning of the year 911,244 10,753 988.685 977,932 CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR (SEE NOTE 251 1.899.929 988,685 The notes on pages 21 to 43 form part of these financial statements Page 20 UNITED REFORMED CHURCH {SOUTH WESTERN SYNOD) INCORPORATED IA COMPANY LIMITED BY GUARANTEEI NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 GENERAL INFORMATION The United Reformed Church Isouth Westem Synodl Incorporated is a company limited by guarantee and is conslituled under a Memorandum of Association dated 24 September 2009. The company is also a registered charity. The principal office is 18 Paul Street, Taunton, Somerset, England, TA1 3PF. ACCOUNTING POLICIES 2.1 BASIS OF PREPARATION OF FINANCIAL STATEMENTS The financial slalements have been prepared in accordan￿ with the Charities SORP IFRS 1021 Accounting and Reporting by Charities.. Slalement of Recommended Practice applicable lo charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021, the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 and the Companies Act 2006. The United Reformed Church (South Western Synod) Incorporated meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised al historical cost or transaction value unless otherwise stated in the relevant accounting policy. 2.2 COMPANY STATUS The company is a company limited by guarantee. The members of the company are the Trustees named on page 1. In the event of the company being wound up, the liability in respect of the guarantee is limited lo £1 per member of the company. 2.3 GOING CONCERN The financial statements have been prepared on a going concern basis as the trustees believe that no material uncertainties exist. The trustees have considered the level of funds held and the expected level of income and expenditure for 12 months from aulhorising these financial statements and consider these sufficient for the charity lo be able to continue as a going GOn￿rn. 2.4 LOANS Loans are slated at the value of the cumulative capital and the interest outstanding less provision for amounts that are considered to be doubtful. Page 21 UNITED REFORMED CHURCH {SOUTH WESTERN SYNOD) INCORPORATED IA COMPANY LIMITED BY GUARANTEEI NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 ACCOUNTING POLICIES {continued) 2.5 INCOME All income is recognised once the company has enb'tlement lo the income, it is probable that the income will be received and the amount of income receivable can be measured reliably. The ￿CognItion of income from 14acies is dependent on establishing entitlement, the probabilty of receipt and the ability to estimate with sufficient accuracy the amount receivable. Evidence of entiuement to a legacy exists when the company has sufficient evidence that a gift has been left to them (through knowledge of the existence of a valid will and the death of the benefaclorl and the executor is satisfied that the property in question will not be required to satisfy claims in the estate. Receipt of a legacy musl be recognised when it is probable that it will be received and the fair value of the amount receivable, which will generally be the expected cash amount lo be distributed to the company, can be reliably measured. Don8ted services or facilities are recognised when the company has control over the item, any conditions associated with the donated item have been met, the receipt of economic benefit from the use of the company of the item is probable and that economic benefit can be measured reliably. In accordance with the Charities SORP IFRS 1021, general volunteer time is not recognised. However, the Trustees, ￿port provides more information about the contribution of volunteers. On receipt, donated professional services and facilities are recognised on the basis of the value of the gift lo the company which is the amount it would have been willing to pay lo obtain services or facilities of equivalent economic benefit on the open market", a corresponding amount is then recognised in expenditure in the period of receipt. Income lax recoverable in relation to investment income is recognised at the time the investment income is receivable. Other income is rec￿nISed in the period in which il is receivable and to the extent the goods have been provided or on completion of the service. 2.6 CLOSED CHURCHES AND TRANSFERS FROM COUNTY UNIONS Assets, including investments and properties which come into the Trust's ownership as a result of transfers from County Unions or on the closure of Churches are reflected as an addition to the assets of the Trust in the accounting period in which the legal and beneficial entitlement to those properties passes to the Trust. Where there is no cost to the Trust, properties are recorded at a deemed cost which is calculated using the same method as slated below for the valuation of Investment Properties. Investments in stocks and shares are recorded at their open market valuation. 2.7 EXPENDITURE Expenditure is recognised once there is a legal or conslruclive obligation to transfer economic benefit to s third paty, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable lo a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable lo a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset's use. Governance costs are those incurred in connection with administration of the company and compliance with conslitulional and statutory requirements. Page 22 UNITED REFORMED CHURCH {SOUTH WESTERN SYNOD) INCORPORATED IA COMPANY LIMITED BY GUARANTEEI NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 ACCOUNTING POLICIES {continued) 2.7 EXPENDITURE {CONTINUEDI Charitable activities and Governance costs are costs inCUr￿d on the company's educational operations, including support costs and costs relating lo the governance of the company apportioned to charitable activities. Gonls payable are charged in the year when the offer is made except in those cases where the offer is conditional, such grants being recognised as expenditure when the conditions attaching are fulfilled. Gonls offered subject to conditions which have not been mel at the year end are noted as 8 commitment, but not accrued as expenditure. Grants that have been awarded bul are not taken up after a period of two years are normally cancelled. All expenditu￿ is inclusive of irrecoverable VAT. 2.8 INTEREST RECEIVABLE Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the company, this is normally upon notification of the interest paid or payable by the institution with whom the funds are deposited. 2.9 TAXATION The company is considered to meet the definition of a charitsble company for UK corporation tax purposes. Accordingly, the company is potentially exempt from taxation in ￿SPect of income or capital gains received to the extent that such income or gains are applied exclusively to charitsble purposes. 2.10 TANGIBLE FIXED ASSETS AND DEPRECIATION Tangible fixed assets costing £5,000 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably. Tangible fixed assets are initially recognised al cost. After recognition, under the cost model, tangible fixed assets are measured al cost less accumulated depreciation and any accumulated impairment losses. All costs incurred lo bring a tsngible fixed asset into its intended working condition should be included in the measurement of cost. Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives, using the straighl-line method. Depreciation is provided on the following bases". Freehold property Long-term leasehold propety Office equipment Computer equipment 0.50/0 Straight line 10/0 Stoight line 100/0 Slraighl line 200/0 Slraighl line Page 23 UNITED REFORMED CHURCH {SOUTH WESTERN SYNOD) INCORPORATED IA COMPANY LIMITED BY GUARANTEEI NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 ACCOUNTING POLICIES {continued) 2.11 INVESTMENTS Fixed asset investments are a form of financial instrument and are initially recognised al their transaction cost and subsequently measured at fair value at the Balance Sheet dale, unless the value cannot be measured reliably in which case it is measured al cost less impairment. Investment gains and losses, whether realised or unrealised, are combined and presented as 'GainsllLossesl on investments, in the Statement of Financial Activities. Listed investments are valued using closing quoted market prices. Investment Properties are slated in the Balance Sheet based on independent valuab'on where available or, failing this, at the Board's estimation of market valuation having regard lo suitsble indices and transactions after the year end. The statement of financial activities includes the net gains and losses arising on revaluation and disposals throughout the year. Any movement in the market value over the year is taken to the Revaluation Reserve. If the transfer to Revaluation Reserve is to reflect a diminution in market value, then any excess over the balance currently held in the reserve will be transferred against the general funds. No depreciation is provided on the Provincial Trusts Investment Properbes. 2.12 ASSETS HELD IN TRUST FOR OTHERS Al the end of the year the Trust held investments and deposits on behalf of local churches and trusts. All of these assets are held to the order of Ioc81 church and trusts concerned and are not shown in these financial statements. The Trust Corporation also holds money in a bank account bearing its name which is held on trust for various local churches and cannot be expended by the Trust Corpootion. These monies, which are detailed in the notes to the financial statements are not reflected on the balance sheet of these Financial Statements. 2.13 DEBTORS Trade and other debtors a￿ recognised al the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any tmde discounts due. 2.14 CASH AT BANK AND IN HAND Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account. Page 24 UNITED REFORMED CHURCH {SOUTH WESTERN SYNOD) INCORPORATED IA COMPANY LIMITED BY GUARANTEEI NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 ACCOUNTING POLICIES {continued) 2.15 LIABILITIES AND PROVISIONS Liabilities are recognised when there is an obligation at the Balance Sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Liabilities a￿ recognised al the amount that the company anticipates it will pay lo setue the debt or the amount it has received as advanced payments for the goods or services it must provide. Provisions are measured at the best estimate of the amounts required lo settle the obligation. Where the effect of the lime value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Statement of Financial Activities as a finance cost. 2.16 FINANCIAL INSTRUMENTS The company only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at tonsaction value and subsequently measured al their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method. 2.17 PENSIONS The company operates a defined contribution plan for ils employees. A defined contribution plan is a pension plan under which the company pays fi'xed contributions to a separate entity Ischemel. Once the contributions have been paid, the company has no further obligations. The contributions are recognised as an expense in the Statement of Financial Activities when they fall due. Amounts not paid ao shown as creditors in the Balance Sheet. The assets of the scheme are held sepaotely from the company in independenuy administered funds. 2.18 CRITICAL ACCOUNTING ESTIMATES AND AREAS OF JUDGEMENT Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectstions of future events that are believed lo be reasonable under the Clfcumstances. Critical accounting estimates and assumptions". The charity makes eslimales and assumptions concerning the future. The resulting accounting eslimales and assumptions will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment lo the carrying amounts of assets and liabilities within the next financial year are discussed below. The charity owns a number of investment properties which are subject to annual valuation. Independent valuations by professionally qualified valuers are obtained at least every 5 years. In other years, the valuations are reviewed and updated by the trustees having regard to known information and suitable indices. Page 25 UNITED REFORMED CHURCH {SOUTH WESTERN SYNOD) INCORPORATED IA COMPANY LIMITED BY GUARANTEEI NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 ACCOUNTING POLICIES {continued) 2.19 FUND ACCOUNTING General funds are unreslricled funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the company and which have not been designated for other purposes. Designated funds comprise unreslricled funds that have been set aside by the Trustees for particular purposes. The aim and use of each designated fund is set out in the notes lo the financial ststemenls. Restricted funds are funds which are to be used in accordance with specific reslriclions imposed by donors or which have been raised by the company for particular purposes. The costs of oising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes lo the financial statements. Investment income, gains and losses are allocated to the appropriate fund. INCOME FROM DONATIONS, LEGACIES AND GRANTS Restricted Unrestrieted funds funds 2023 2023 Total funds 2023 Total funds 2022 Legacies Grants 126,632 8,918 10,926 10,926 10,926 10,926 135,550 TOTAL 2022 8,918 126,632 135,550 INCOME FROM CHARITABLE ACTPdlTIES Unrestricted funds 2023 Total funds 2023 Total funds 2022 Funds arising from Closed Churches Training and conference receipts Loan interest 3,849,504 5,425 3,871 3,849,504 5,425 3.871 850,708 2,350 4,321 TOTAL 2023 3,858,800 3,858,800 857,379 TOTAL 2022 857,379 857,379 Page 26 UNITED REFORMED CHURCH {SOUTH WESTERN SYNOD) INCORPORATED IA COMPANY LIMITED BY GUARANTEEI NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 INCOME FROM CHARITABLE ACTIVITIES ICONTINUEDI Funds arlslng from closed Churches comprlse: 2023 2022 Capital funds- Property Other funds 3,538,434 311,070 850,000 708 3.849.504 850,708 INVESTMENT INCOME Restrlcted Unrestrlcted funds funds 2023 2023 Total funds 2023 Total funds 2022 Rental income from investment properties Income from listed investments Bank interest 27,288 279,806 49,875 27,288 325,094 53.698 40,401 349,949 449 45,288 3,823 TOTAL 2023 49,111 356,969 406,080 390,799 TOTAL 2022 85,458 305,341 390,799 OTHER INCOMING RESOURCES Unre$trieted funds 2023 Total funds 2023 Total funds 2022 Sundry Income Gain on disposal of tangible fixed assets 3,338 59,753 3,338 59.753 12,669 63,091 63,091 12,669 TOTAL 2022 12,669 12,669 Page 27 UNITED REFORMED CHURCH {SOUTH WESTERN SYNOD) INCORPORATED IA COMPANY LIMITED BY GUARANTEEI NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 INVESTMENT MANAGEMENT COSTS Restricted Unrestricted funds funds 2023 2023 Total funds 2023 Total funds 2022 Investment management fees 3,827 3,766 7,593 7,680 TOTAL 2022 3,058 4,622 7,680 ANALYSIS OF EXPENDITURE ON CHAR￿ABLE ACTIVITIES Summary by fund type Restricted Unrestricted funds funds 2023 2023 Total 2023 Total 2022 Charitsble activities 39,460 1,028,094 1.067,554 727,840 TOTAL 2022 53,305 674,535 727,840 ANALYSIS OF EXPENDITURE BY ACTIVITIES Activities undertaken directly 2023 Grant funding of activities 2023 Support costs 2023 Total funds 2023 Total funds 2022 Charitable activities 333,257 401,596 332,701 1.067,554 727,840 TOTAL 2022 250,859 202,788 274, 193 727,840 Page 28 UNITED REFORMED CHURCH {SOUTH WESTERN SYNOD) INCORPORATED IA COMPANY LIMITED BY GUARANTEEI NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 ANALYSIS OF EXPENDITURE BY ACTIVITIES {CONTINUEDI ANALYSIS OF DIRECT COSTS Total funds 2023 Total funds 2022 Activities 2023 Staff costs Training and conferences Church support Pulpit supply relief Ecumenical costs MMF payments Pioneer special category minister Synod Pastoral Advisors Propety expenses 133,018 26,098 48,921 855 87 39,838 133,018 26.098 48,921 855 87 39.838 87,887 18,848 18,723 148 42,285 3,485 49,365 30,118 48,833 35,607 48,833 35,607 333,257 333,257 250,859 TOTAL 2022 250,859 250,859 Page 29 UNITED REFORMED CHURCH {SOUTH WESTERN SYNOD) INCORPORATED IA COMPANY LIMITED BY GUARANTEEI NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 ANALYSIS OF EXPENDITURE BY ACTIVITIES {CONTINUEDI ANALYSIS OF SUPPORT COSTS Total funds 2023 Total funds 2022 Staff costs 196,153 42.348 2,779 1,021 6,029 184,769 5,767 4,737 1,020 7,850 2,520 6,217 1,528 14,484 33,876 11,425 Depreciation Synod Activities Pioneer special category minister Other Special Category Ministers Children & Youth Development offI￿r costs Printing stationery & postage Utilitieslsundries Synod offiTr expenses Property expenses Governance costs 8,217 1,303 15,850 41.916 17,085 332,701 274, 193 10. NET INCOMEIEXPENDITURE This is slated after charging.. 2023 2022 Depreciation of tangible fixed assets- owned by the charity 41,800 5,473 Page 30 UNITED REFORMED CHURCH {SOUTH WESTERN SYNOD) INCORPORATED IA COMPANY LIMITED BY GUARANTEEI NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 11. ANALYSIS OF GRANTS Grants to Institutions 2023 Total funds 2023 Total funds 2022 Insb'lulional grants 401,596 401,596 202,788 All grants are payable lo institutions. There were no grants to individuals in 2023 or 2022. The company has made the following material grants to institutions during the year.. 2023 2022 Grants lo institutions other than Churches 206.550 105,480 1,079 38,615 68,341 25,700 Enabling grants Mission grants Propety grants.. - Survey grants Facelift grants Building grants 6,734 1.930 67,978 8,474 35,986 15,934 389,751 193,050 other grants lo institutions 11.845 9,738 401,596 202,788 Page 31 UNITED REFORMED CHURCH {SOUTH WESTERN SYNOD) INCORPORATED IA COMPANY LIMITED BY GUARANTEEI NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 11. ANALYSIS OF GRANTS ICONTINUEDI The Synod Trusts makes a number of grants to local churches and associated Ecumenical Partners. BuildinglProperty Grants These comprise. Facelift Grants offered to local churches of up to 500/0 of cost lo a maximum of £20,000 no more frequently than once every S years for major renovations Building Grants of 200/0 of the balance of any costs of expenditure on adaption, extension or pair and maintenance of local churches and manses Special Property Grants may be made in cases where the Executive determine such an award is desirable. 50010 Grants are available to local churches for Survey Grants assessing the need of the church building or manse for repairs and maintenance of the structure. Churches are encouraged to carry out such surveys every 5 years. 50010 grants are available to help churches carry out surveys for the presence of asbestos in the buildings. Mission Grants Mission grants of up to £5,000 per annum for up to 5 years for projects which enhance the Mission of the Local Church Enabling Grants Enabling grants are available to churches who would like lo do something in their church life but need extra financial help. Small grants are offered up to £2,500 and larger gonls up to £25,000 per annum. Grants to institutions other than Churches Feasibility Grants are offered for up to 500/0 of the costs of a major Feasibility study of the suitability of the church for its mission. These are capped at £2,000. There are grants available for assistance with providing Chaplaincy services in Universities and retail areas. The Trust makes a Grant to other Synods in less fortunate financial posib'on. This is managed via an Inter Synod Resource Sharing group. Grants are made lo Churches Together in England Ecumenical bodies in the area covered by the Synod. Grants are made lo a Benevolent Fund managed by the Synod MOde￿tOr for the alleviation of special needs among ministers in the area The Synod Trust has been asked by the URC Ministers Pension Fund to make a supplementary grant to fill a share of the shortfall of around £50 million in the Pension Fund assets to cover the greater liabilities caused by the Pension Regulator's requirement to use less risky investments to provide the assets that underpin the liabilities. The Synod Trust has amended ils grant making to give 500/0 of the Synod Trust's net proceeds of the sale of any building or property until further notice. The Synod Trust committed in 2021 to making donations totalling £3,000,000 over the next 8 years, the first tranche of £250,000 having been paid in 2021. If property sales do not cover the commitment in any particular year the Synod Trust will meet any shortfall from its reserves. The Synod Trust further resolved to make no more contributions to the Retired Ministers Housing Trust as this now has sufficient funds lo meet its likely commitments to Ministers retiring and needing lo be provided with housing. ANALYSIS OF GRANTS A full summary of all grants made can be found on the charity website wth.urcsouthwest.org.uk. Page 32 UNITED REFORMED CHURCH {SOUTH WESTERN SYNOD) INCORPORATED IA COMPANY LIMITED BY GUARANTEEI NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 Included within Institutional and Enabling grants are the following amounts of £10,000 or more- 2023 2022 Inter Synod Resource sharing Bath Larkhall Emmanuel Lunch Club Trinity Henleaze Wringlon Group Zion Frampton Cottrell Plymslock 100,000 53,208 23.774 10,000 31,500 24,500 25,000 36,500 242,982 61,500 Included within Mission grants are the following amounts of £10,000 or more: 2023 2022 Cranbrook 25,000 25,000 Included within Facelift grants are the following amounts of £10,000 or more: 2023 2022 Hanham Mangotsfield 10,000 10,000 20,000 Included within Building grants are the following amounts of £10.000 or more.. 2023 2022 Barnslaple 10,314 10,314 13. AUDrroRS' REMUNERATION The auditors, remuneration amounts to an auditor fee of £13,08012022 - £11,160). Page 33 UNITED REFORMED CHURCH {SOUTH WESTERN SYNOD) INCORPORATED IA COMPANY LIMITED BY GUARANTEEI NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 14. STAFF COSTS 2023 2022 Wages and salaries Social security costs Contribution to defined contribution pension schemes 280,098 17,968 31,105 265,679 18,183 41,643 329.171 325,505 The average number of persons employed by the company during the year was as follows.. 2023 2022 staff engaged on charitable activities 13 13 No employee received remuneration amounting to more than £60,000 in either year. All staff are paid centrally through the URC ￿ntral offi￿. Except as detailed below, no trustee was paid or is due to be paid any remuneration out of Trust funds. Staff costs are allocated be￿een restricted and unrestricted expenditure based on which project the salary cost5 relate lo. TRUSTEES Trustee Revd R Gray receives £1,000 honorarium in respect of Bookkeeping activib.es In addition lo expenses12022 - £1,000). The above remuneration paid to Trustees is permitted in accordance with Section 185 of the Charities Act 2011. During the year, no Trustees received any benefits In kind12022.. £NILI. 1 Trustee received reimbursement of expenses amounting lo £265 in the current year,12022'. 1 Trustee - £2241. 1 Truslee12022'. 1 Trustees - £1,800) received a housing allowance totslling £2,400 in respect of their Church ministerial post. KEY MANAGEMENT PERSONNEL The gross remuneration paid by the charity during the year in respect of key management personnel was £48,791 12022 £50,0561. Pension and national insuranTr contributions were payable in addition lotalling £12,89312022 - £15,239) giving totsl key management compensation of £61,68312022 - £65,295). Page 34 UNITED REFORMED CHURCH {SOUTH WESTERN SYNOD) INCORPORATED IA COMPANY LIMITED BY GUARANTEEI NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 15. TANGIBLE FIXED ASSETS Freehold property Office equipment Computer equipment Total COST At 1 January 2023 Additions Disposals Transfer from investment property 2.885,203 1.278,015 1330,0001 299,500 15.874 2.901.077 1,279,995 {330,0001 299,500 1,980 At 31 December 2023 4.132,718 1.980 15.874 4.150.572 DEPRECIATION At 1 January 2023 Charge for the year 142,914 37,402 11.255 4,200 154,169 41,800 198 At 31 December 2023 180,316 198 15.455 195,969 NET BOOK VALUE At 31 December 2023 3.952A02 1.782 419 3.954.603 At 31 December 2022 2,742,289 4,619 2,746,908 During the year the Synod has transferred their investment property, 18 Brooklyn Wrington to freehold property at market value of £299,SOO. This transfer is to reflect the long term change of use of this property. Page 35 UNITED REFORMED CHURCH {SOUTH WESTERN SYNOD) INCORPORATED IA COMPANY LIMITED BY GUARANTEEI NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 16. INVESTMENT PROPERTY Freehold investment property VALUATION At 1 January 2023 Additions Disposals Revaluab'on Transfer lo tangible fixed assets 4.239.712 3,131,650 12,205,442) {226.0261 {299.5001 At 31 December 2023 4,640.394 The historical cost of investment properties at 31 December 2023 was £4,077,111 12022 - £2,700,031). Valuations of investment properties are based upon independent professional valuations within the past 5 years based upon open market values for actual or planned use. All valuers used are professionally qualified with recent experience in the location and class of the investment property at the lime of making the valuation. Where the independent valuations were undertaken prior to 31 December 2023, the Iruslees have reviewed and updated the valuations al 31 December 2023 having regard to suitable indices and transactions after the year end. In addition to the surplus on revaluation noted above, realised gains on disposal of investment propety during the year amounted to £536,221 and realised losses amounted to £37,947. During the year the Synod has transferred their investment property, 18 Brooklyn Wringlon to freehold propety al market value of £299,500. This transfer is to reflect the long term change of use of this property. Page 36 UNITED REFORMED CHURCH {SOUTH WESTERN SYNOD) INCORPORATED IA COMPANY LIMITED BY GUARANTEEI NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 17. FIXED ASSET INVESTMENTS (OTHER THAN PROPERTY) Listed investments Loans Total COST OR VALUATION At 1 January 2023 Additions Disposalsl repayments Revaluab"ons 10.992.576 133,943 256.112 10.268 170,5461 11.248.688 144.211 170,5461 1,152,510 1,152,510 AT 31 DECEMBER 2023 12.279.029 195.834 12.474.863 NET BOOK VALUE AT 31 DECEMBER 2023 12,279,029 195,834 12,474,863 AT 31 DECEMBER 2022 10,992,576 256,112 11,248,688 The Synod Trust's capital may be invested in any investment, security or property Iwhelher narrow or wide rangel at the discretion of the Trustees. Loans comprise loans lo Churches of £189,56012022 - £235,498) and loans to ministers of £6,27612022 £20,614). 18. DEBTORS 2023 2022 DUE WITHIN ONE YEAR other debtors 2.441 44,856 13,106 49,541 Prepayments and accrued income 47,297 62,647 Page 37 UNITED REFORMED CHURCH {SOUTH WESTERN SYNOD) INCORPORATED IA COMPANY LIMITED BY GUARANTEEI NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 19. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR 2023 2022 Mission and enabling grants Other committed grants Accruals 9,865 775,421 12,000 12,744 769,994 10,900 797.286 793,638 Included in other committed grants above is £500,000 in respect of the grant awarded to the United Reformed Church Trust Ltd in 2021 relating to the pension scheme for Church Ministers (see note 271. 20. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR 2023 2022 other creditors 948.281 1,915,015 As Mission Grants are often mulli year grants, they are all taken on the books as liabilities from the dale of approval. The amount likely lo become due in the current year are taken as current year liabilities, and the balance taken as commitments due in 2-5 years. In addition, the grant awarded lo the United Reformed Church Trust Ltd in 2021 relating lo the pension scheme for Church Ministers (see note 271 is being paid by instalments. £650,000 is included within amounts falling due after more than one year and £500,000 is included within amounts falling due within one year. 21. FINANCIAL INSTRUMENTS 2023 2022 FINANCIAL ASSETS Financial assets measured at fair value through income and expenditure 14.379,818 12,237,248 Financial assets measured al fair value through income and expenditure comprises listed investments, loan investments and cash at bank and in hand Page 38 UNITED REFORMED CHURCH {SOUTH WESTERN SYNOD) INCORPORATED IA COMPANY LIMITED BY GUARANTEEI NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 22. STATEMENT OF FUNDS STATEMENT OF FUNDS- CURRENT YEAR Balance at 31 Gainsl December (Losses) 2023 Balance at 1 January 2023 Transfers inlout Income Expenditure UNREST'D FUNDS Fixed asset fund Loans funds Investment propety Investment stocks and shares Taunton fund Free reserves 2,746,908 256,112 415,000 3,871 {41,800} 834,495 164,1491 3,954,603 195,834 3.760.066 3.123.333 12.016.979) 1226.026} 4.640.394 7.250,000 4,088 501,872 2,200.000 9,450.000 4,088 501,145 736,656 1990,060} {950,0171 1,202,694 14.519,046 4,278.860 11.031,860} 3.350 976,668 18,746.064 RESTRICT'D FUNDS General purpose fund Closed churches fund 1.872.265 46.136 {42.786} 13.3501 427.135 2,299.400 130,084 925 25,981 156.065 806 DFES fund Training fund and grants Other small restricted grants received {119} 34,857 5,375 40,232 20.808 8.526 {382} 28.952 2,058,939 60,037 143,287) 13,3501 453,116 2,525,455 TOTAL OF FUNDS 16.577,985 4,338.897 {1,075,147) 1,429,784 21,271.519 Page 39 UNITED REFORMED CHURCH {SOUTH WESTERN SYNOD) INCORPORATED IA COMPANY LIMITED BY GUARANTEEI NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 22. STATEMENT OF FUNDS (CONTINUEDI STATEMENT OF FUNDS- PRIOR YEAR Balance at 31 December 2022 Balance at 1 January 2022 Transfers inlout Gainsl (Losses) Income Expenditure UNREST'D FUNDS Fixed asset fund Loans funds Investment propety Investment stocks and shares Taunton fund Free reserves 2,571,811 266,185 15,7471 180,844 114,4951 2,746,908 256,112 4,422 3,166,944 850,390 1637,0041 379,736 3,760,066 7,800,000 4,088 1,038,058 1550,0001 7,250,000 4,088 501,872 484,635 1673,4101 1,015,588 11,362,999) 14,847,086 1,339,447 1679,1571 15,0671 1983,2631 14,519,046 RESTRICT'D FUNDS General purpose fund Closed churches fund DFES fund 2,024,317 48,032 153,0991 5,067 1152,0521 1,872,265 148,527 925 118,4431 130,084 925 Training fund and grants Other small restricted grants received 29,185 3,672 32,857 20,826 5,246 13,2641 22,808 2,223,780 56,950 156,3631 5,067 1170,4951 2,058,939 TOTAL OF FUNDS 17,070,866 1,396,397 1735,5201 11, 153,7581 16,577,985 Page 40 UNITED REFORMED CHURCH {SOUTH WESTERN SYNOD) INCORPORATED IA COMPANY LIMITED BY GUARANTEEI NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 The principal restricted funds above being the Geneffil Purpose and Closed Churches funds were established by the Charity Commissioners by a scheme on 5 October 1992 ICDITII275364A111. The income from these funds is payable lo the unrestricted funds. The transfer of £3,350 from the General Purpose Fund to un￿Stricted funds represents the transfer of excess income from the General Purpose Fund as permitted. The fixed assets, loan and investment property designated funds represent the value of reserves tied up in those particular assets. The investment stocks and shares designated fund represents the proportion of listed investments that the charity currently deems appropriate to ring fence as being held for the long term for income generating purposes. The funds have been separately designated as they are not expected to be readily available for use as working capitsl in the short term. Transfers tolfrom esch of these designated funds have been made in order to bring the closing balance lo the value deemed appropriate by the Trustees. 23. ANALYSIS OF NET ASSETS BETWEEN FUNDS ANALYSIS OF NET ASSETS BETWEEN FUNDS- CURRENT YEAR Restricted Unrestricted funds funds 2023 2023 Total funds 2023 Tangible fixed assets Fixed asset investments Investment propety Current assets Creditors due within one year Creditors due in more than one year 3,954,603 3,954,603 1,951,028 10,523,835 12,474,863 4,640,394 4.640.394 1,372,799 1,947,226 1797,2861 {797,2861 1948,2811 {948,2811 574,427 TOTAL 2,525,455 18,746,064 21,271,519 ANALYSIS OF NET ASSETS BETWEEN FUNDS- PRIOR YEAR Restricted Unreslrieled funds funds 2022 2022 Total funds 2022 Tangible fixed assets Fixed asset investments Investment property Current assets 2,746,908 2,746,908 9,487,594 11,248,686 3,759,712 4,239,712 1,051,332 1,051,332 1182, 1531 1611,4851 1793,6381 11,915,015) 11,915,015) 1,761,092 480,000 Creditors due within one year Creditors due in more than one year TOTAL 2,058,939 14,519,046 16,577,985 Page 41 UNITED REFORMED CHURCH {SOUTH WESTERN SYNOD) INCORPORATED IA COMPANY LIMITED BY GUARANTEEI NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 RECONCILIATION OF NET MOVEMENT IN FUNDS TO NET CASH FLOW FROM OPERATING ACTIVITIES 24. 2023 2022 Nel incomelexpendilure ft)r the year las per Statement of Financial Acb'vitiesl 4,693,534 1492,8811 ADJUSTMENTS FOR: Depreciation and impairment charges Non cash donations and capital funds Lossesllgainsl on investments Dividends, interests and rents from investments Lossllgainl on the sale of fixed assets Decreasellincreasel in debtors Decrease in creditors 41,800 13,538,434} 11.424,760} 1406.080} 159,753} 15,350 1963.086} 5,747 1850,0001 1,165,500 1390,7991 111,5841 142,1301 1507,9031 NET CASH USED IN OPERATING ACTIVITIES 11.641,429} 11,124,050) 25. ANALYSIS OF CASH AND CASH EQUIVALENTS 2023 2022 Cash in hand 1.899.929 988,685 TOTAL CASH AND CASH EQUIVALENTS 1,899,929 988,685 26. ANALYSIS OF CHANGES IN NET FUNDS At1 January 2023 Cash flov At31 December 2023 Cash at bank and in hand 988,685 911,244 1,899,929 988.685 911.244 1.899.929 Page 42 UNITED REFORMED CHURCH {SOUTH WESTERN SYNOD) INCORPORATED IA COMPANY LIMITED BY GUARANTEEI NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 27. PENSION COMMITMENTS Pension scheme for lay staff The company opeffttes a defined contribution pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge represents contributions payable by the company to the fund and amounted lo £31,105. Contributions lotalling £nil were payable lo the fund al the balance sheet dale. In the previous year, the company contributed £41,643 to the United Reformed Church Final Salary Scheme, a pension scheme principally for lay staff which is sdminislered by TPT Retirement Solutions Trust. The scheme was closed to future accrual on 28 February 2023 when the defined contribution scheme was set up. Pension scheme for Church Ministers The Minister's Pension Scheme (which is the responsibility of the United Reformed Church Trust Ltd IURCTLII was valued at 31 December 2020. URCTL were forced lo accept a lower discount rale which meant that the fund was in deficit, and needs a large infusion of funds to meet its long term funding target. During 2021 the Charity committed a figure of £3 million lo URCTL over 9 years as a contribution towards the obligations that URCTL has to the Minister's Pension Scheme. The Charity agreed to contribute £500,000 per year, sourcing funds from the proceeds of sale of buildings no longer needed. The Charity actually contributed a total of £1.1m lof the £3m commitment) during the year due lo the increased proceeds from the sale of manses. As at 31 December 2023, £1.15m of the £3m commitment is still outstanding. Due to the excess contribution made to date the Charity expects to have paid off the commitment in full by 31 December 2026. 28. RELATED PARTY TRANSACTIONS Trustees who have authority and responsibility for planning, directing and controlling the activities of the charity are considered lo be key management personnel. Total remuneration is respect of these individuals excluding honooria for other services is £Nil12022- £Nill. The spouse of a Trustee is employed by the Charity and received a salary in respect of their employment of £7,74612022 - £6,720). Details of the remuneration of key management personnel including non Trustees is set out in note 14. The￿ have been no transactions with related parties other than those ststed above and in note 14. 29. EARMARKED FUNDS The balances of Earmarked Funds held on behalf of local churches and trusts not otherwise reflected in these financial statements outstanding on 31 December were". 2023 2022 Capital funds Income funds 1,251,515 222.454 343,902 128,966 1.473.969 472,868 Page 43