REGISTERED COMPANY NUMBER: 01555990 (England and Wal￿) REGISTERED CHARITY NUMBER: 282729 REPORT OF THE TRUSTEES AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 FOR THE UNITED REFORMED CHURCH (WESSEX TRUST LIMITED THE UNITED REFORMED CHURCH (WESSEX) TRUST UMITED YEAR ENDED 31 DECEMBER 2023 CONTENTS REPORT OF THE TRUSTEES Reler8nce and Admintslralive delafjs otyeCt￿eS andActNiti8s Ensuring delrvery of the Companys aNnS Chanty ObieclNes Principal Acttivjties Granl-making PolKy Publi¢ Benefrt Achievement and Performance Grants and Grant Commftments ReV￿W ofsunifjrant ch8ri18ble actNrties undertaken and Future Evgnls structure, Govemance and mana￿Ment Financial Review Custodian Trusleesh STATEMENT OF TRUSTEES RESPONSIBILITIES Audrtors. Opinion STATEMENT OF FINANCIAL ACTIVITIES BALANCE SHEET CASH FLOW STATEMENT NOTES TO THE FINANCIAL STATEMENTS 12 17 18 19 THE UNITED REFORMED CHURCH (WESSEX) TRUST LIMITED YEAR ENDED 31 OECEM8ER 2023 REPORT OF THE TRUSTEES The Trustee$ who are also diredoT5 of the Charity for Ihe purpo$8$ of the Companies A¢1 2006, present their report with the financial statements of the Charity for the year ended 31 December 2023. The financial statements have been prepared in acwrdance wrth the accounting poli￿e$ Set out in nole 1 to the accounts. REFERENCE AND ADMINISTRATIVE DETAILS Registgred Company numbgr 01555990 (England and Wales) R8glstsred Cha￿ty number 282729 Registered offic• 120 Alma Road Southampton Hampshire S014 6UW Trust••s Revd Nigel J W Appleton - rps*Jned 27Apr# 2023 Mrs Susan A Brown Mrs Margaret R Carrick Smith Revd Clare Downing - reswned 31 March 2023 Mr Raymond M Dunnett- Deputy Convener MrAndrew N Gibb Revd Or Michael Hopkins- 8pwnt8d l March 2024 Mr Colin F MacBean Revd Julian J Macro Mrs H Bridget ￿￿kIern - apw)inted 22 June 2023 Revd Dr Romilly W Micklem- Conv8ner Revd Gtyn Millinglon Mr David T North- appointed 23 November 2023 Mr John O Sinclair- ￿S￿ned 19 Apni 2024 l the Trustees gwe their ts.me voluntarity arKI receive no beneffits from the Company. Any expenses reclaimed from the Company are set oul in note 11. Company S•crnlary Mr Stuart MacLean Audito Haysrnacintyre LLP, 10 Queen Street Place, London. EC4R 1AG Bank9rs Barclays Bank plc. Bardays House, 151 Floor. S Sl. Ann'5 Street, East Quayside. Newcast￿. NE12BH CAF Bank Limrted, Kings Hill, Vvest Malling. Kent. ME19 4TA Lggal Advlsers Lester Aklridge LLP. Russell House. 31 Oxford Road. Boumemouth. Dorset. BH8 8EX Page 3 THE UNITED REFORMED CHURCH (WESSEX) TRUST LIMITED YEAR ENDED 31 DECEMBER 2023 OBJECTIVES AND ACTIVITIES The charitable purpose of the Company. as set out in the 'objects' cL4use contained in the Company's MemorandL¥n of Assouation, is: 'to advance the Christsan religion and propagate the Gospel in ac￿rdance wth the doctrines principles and usages of the United Refor￿Ed Church vnth particular responsibilrty for the Wessex Synod of that Church. The aim$ of the Company are to support local churche5 In their outreach and mission. both directly t￿OUgh its staff, and indirectly through the Synod and rts wnmittees. groups and officer5, and by the provision of sources, both financial and technical. ENSURING DELIVERY OF THE COMPANYS AIMS The Trustees review the aims, objectives and activrties of the Company on a regular basis and determine which activities lo reS￿rGe based on conlribution to those agreed aims and obJ"e¢lives. AS trustee of the charitable fvnds of the Wessex SynfA, the Company submits a detailed report of ils activities to the meetings oflhe Synod and consults vAlh and lakes guidance from the Synod in respect of any application of the funds that falls sjjtside the pol￿eS agreed by the Synod. CHARITY OBJECTIVES The main purpose of the Unrestricted Funds is to meet Ihe financial needs oflhe Wessex Synod and the wder church. and lo support the con5trtuenl local churches in a wide range of acttvities which fvrther generally the Wessex Synod strategy and the reli9K)us purposes oflhe United Refornied Church. W'th ￿gard lo the financial needs of the wder ¢hur¢h. the Wessex syn￿ continues lo make significant annual grants lo Inler-synod Resource Sharing a$ a slep towards a(1d￿sSing the signrficanl differences in wealth. and hence potential for furKling mission, that exists ttheen all 13 Synods of the Unrted Refomed Church. PRINCIPAL ACTIVITIES The principal acti¥its"es of the Company indLKIe'. The short, medium and lon*terni management. as trustee. of the Unrestricted Funds of the Company, which consist primarily of investment propety. managed funds. cash. and loans to local churches and ministers., The realisalion of best value from the disposal of redundantchurch buildings and manses. and the letting of temptsrarily vacant manses. pursuant to Ihe resolution of the local thurch meeting and the approval of the Synod ExecutNe: Trusteeship of the other funds shown in the ffinantyal statemerts, ¥h￿se assets consist ahnosl exclusively of managed funds and ¢ash', The oversight of lunctional chanty property. consBting almost exclusively of church buildings and manses. in legal matters and in advice or the provision of professional advice- Acling as employer for $taff of the Company and of the Synod.. Various lask5, primarity related to finance and propety, in $upport ofthe work ofthe Wessex Synod and l¢xal churches. including making grants and loans lowards projects writhin agreed budgets,. Supporting the development and implemenLthn of the Wessex Synod slrale9y, e¥)ecially a$ il relates to maiters of finance and property". Developing and proposing overall plans. Wicies and procedures regarding finance and property for presentation to the Synod for approval., Implementing and mniloring the financial and proFety pL4n$. policies and procedures agreed by the Synod", Facilitating the Synod's oversight of conlribub.ons and its annual offer to the Ministry and MisS￿n Fund and assisting with any proposed Changes lo the Synod Ministry and Mission Fund formula. Any change lo the fomiula would require the approval of the Synod., Ensuring that local churches are kept fvlly awaie of Synod finar￿la1 and propety poliw and relevant legislation in whatever form is most appropriate,. Enabling. supporting and overseeing the ￿t)rk of the Listed Buildings Advisory Committee, and taking any action arising therelrom" and Page 4 THE UNITED REFORMED CHURCH (WESSEX) TRUST LIMITED YEAR ENDED 31 DECEMBER 2023 PRINCIPAL ACTIVITIES. ¢ontlnued Acting as the Provincial Propety Committee. recer¥ing at1¥￿ from the Listed Buildings Advisory Committee under Ecclesiastical Exemption concerning developments and alterations lo Listed Buildings and buildings in Conservation Areas. and giving or wthholding permission for such works in a￿rdance th the Planning (Listed Buildings and ConseNalion Areas) Aet 1990, conducting and recording that part ol its business in accordance wilh the statutory requirement. GRANT4IAK114G POUCY Policies for grant-giving have been agreed by the Wessex Synod an(J applicatKJn formy and procedures ensure the full production of supporting inforniation for all grant applications. Grants can be calegorised as follows.. Annual gian15 to local churches v*hich will be paid in accordance wlh existing agreements., Grants for work Supported by the Wessex Synod: Grants for the mainlenanGe, repair ar￿ l or improvement of manses to prowde SLMlable housing for vninislers.. Grant$ to local chU￿he$ for Church mission- Gran15 to local churches for unibng cOngregat*￿- Gran15 for work supported by the General Assembty ofthe Uniled Refom)ed Church., Grants to other Synods of the United Reformed Church pursuant lo Inler-synod Resource Sharing., and Grants lo chaplaincies in higher educab"on, industrial missions and other ecumenical sillral￿nS. Grants to local Churches are made to assist their ministry as they seek to fvffil all current mission iniliatwes in their own situation. through.. Responding lo the nee(Is of Ihe community In which the church work5., and Meeting the challenges and dw.ms of the gospel in today's church and the worfd. PUBLIC BENEFIT The Trustees confimi that they had due wafd to the Charity Commissron's guidanee IP81 to PB3} on publi¢ benefit vthen exercising any powers or dut￿$ to vthich the guKgan¢e is relevant. Examples of this are given in thi5 report. ACHIEVEMENTS AND PERFORMANCE Property Oporation5 The Company manages the portfolio of residential and investment propertie$ on behalf of the Synod and supports churches in managing their places of wotship and assembly. This includes professional oversight of significant capila projects. The Company also realises the best value ol Tedundanl property by a programme of disposals. The regular actiV￿.eS of the Company indude= Fielding and responding to enquiries from ministers and church officers, agents and lenanls,. Managing residential oceupancy.. &ifety certffications, agreements. Inventories and deposits", Effecting resideAli81 property repairs, maintenance and refvrbishrnents, planned and unplanned,. anaging rents, colle¢tKJns. delinquency and - occasionally- evictions.. Capital enhancements and extensions.. Exceptional acquisitions and disposals for best value.. anaging major church building ￿ntract$. ¢ontra¢lors and professional *dvisors', and Providing specialist legal and propety management advti and guiJ on 20 February 2024. Al the end of the year there 4•Rre 2912022.. 33) manses OC￿pIed by ministers and 28 {2022'. 251 further manses held pending P055ible ILrture occupation by a minister. of which 2612022". 231 We￿ let to tenants, 1 12022." 11 was vacant pending refurbishment and occupation by tenants, and 1 12022". 11 was V￿nI pending refurbishment and eLcupalion by a minister. Some of the rnanse5 do not conform to the agreed Synod manse standard and 50 they wll be let and solo in due course. A￿d￿"onal manses wll onty be purchased il required to house ministers. Prop•rty Acqulslilons 4 Covent Close, Abingdon was aqui￿ lo serye as a manse during the year12022'. 11. Prop•ity Dlsposals No redundant manses12022.' 21. investment prope￿e$ {2022". 31 or redundant church site512022.' 21 were sold during the year. but at the end of the year 16 12022_' 141 ￿d￿ndant church siles We￿ al dtherenl stages of diswjsal, being.. Andover Bury Road {G05POrtI Chandler's Ford Finchdean Freemanle Isoudwnptonl Hedge End Hope Church Freshwaler Bay Longham Lytehett Minster Newbury Pheasanl's Hill Sarisbury Green Slanford-inrythe Vale Summertown (Oxford) Walkford IChri$lchurchl Weybridge 1012022.. 81 fomier manses have been Identif￿ by the Company at the yearond as redundanl, of wh￿h 5 12022.. 51 are r)n church Sites and let to tenants or in other use. 3 were let to tenanls12022'. 31 and 2 were vacant and for sale12022.' 01. Grant5 and Grant commltments Grants are offered and paid out by the Company under its granl-making policy. When grants are offered by the Company they are recorded as future commitments and drawn down as projects continue, sometimes over several years. 11 is not unusual for previous grant commrtments to be wniten-back into the funds as a result of projects not proceeding or not requiring the committed bjnds Grants for ¢hur¢h mission projects a￿ made from the Church Mission Fund and the Specral Reserve Fund in support of building projects. the costs of church workers and other smaller projects. Wthin the Special Resetve Fund is a sub-reserve made In 201 S of £200.000 I￿s1dual balance in 2023.. £62,214> designated to potentially meet the direct costs of some very earty-stage conceptual pioneer ministy project5 in such sltuations as large- scale housing developments. Other grants lo cJ)ur¢hes may te made from the General Fund, for example to assist with the cost of uryent repairs due to storm damage The Company also supports from its General Fund several ecumenical projects. Inter-synod Resource Sharing and General Assembly's Commitrnenl for Life programme. REVIEIN OF SIGNIFICANT CHARITABLE ACTIVITIES UNDERTAKEN The Cornpany conb.nues lo achieve ils aims of supporting local churches in their outreach and mission and the wider United Reformed Church. both directty through ils staff, and indirectty through the Synod and it5 mmittees, groups and ofli¢ers. and by the provision of resources, both finanual and technical. Al ils meeting on 12 March 2022, Ihe Wessex Synod endorsed the TTLlStees' decision to make an offer to contribute up to £9 million over the period 2022 2030 towards the deficit of the United Reformed Church Ministers, Pension Fund. This offer was made vth the conditson that the current 'defined beneff(' scheme be closed. Page 6 THE UNITED REFORMED CHURCH IYIESSEXI TRUST LIMITED YEAR ENDED 31 DECEMBER 2023 REVIEW OF SIGP4IFICANT CHARITABLE ACTIVITIES UNDERTAKEN, Contlnued A payment s¢hedule of £1.2 million per annum for the five years 2022-26 has been agreed wlh the URC Trust, th a ￿VIeW lo be made following the nexl aduaria valuation. Four further annual payments of£O.75 million may then be made. The URC'S General Assembly resdved in July 2022 to dose the defined benefit PenS￿n scheme lo future accwals and followng the delayed Closu￿ of the scheme on 28 February 2023, the Gondilion set by the Company for releasing its contributions towards the deficit reduction programme was mel and the Company's previously deferred first payment of£1.2 million was released to the URC Tnjst on 23 March 2023. The second payment of £1.2 million was made 13 October 2023. The followng Trustees decla￿ an interest in the URC Ministers, Pension Fund as deferred members or pensioner members of the scheme. Revd Dr Michael Hopkins, Revd Julian Macro. Revd Dr Romilly Micklem and Revd Glyn Millington. FUTURE PLANS One of the challenges that the Company faces is responding to rts broad remit as a facilitsling. sharing and enabling body for the Wessex Synod, its individual local churches and the wider Unrted Reformed Ch￿￿h. The Cornpany therefore seek5 to encourage grant application5 for projects with a significant mission focus but is awa￿ ofthe need lo re￿ase fun(Js on a steady basis wlhin the available resources. The Company's short and medium range plans draw upon the Wessex Synod strategy in order to establish the areas and activities that require speual focus and en$￿￿ that the Company's grants and loans resources are available lo meet priorilised objectives. STRUCTURE. GOVERNANCE AND AIANAGEMENT Govarning document The Company is limited by guarantee as defined by the Companies Act 201% and 1$ a ¢harity and a trust corporation wthin the lems of the Law of Property (Amendment) Ad 1926. The Company's objects and pOV￿rS are declared in its Memorandum ofAssoryation dated 15 December 1980. as amended by special resolutions dated 25 June 1998, 22 SeplembeT 2005 and 27 April 2017, and provision for ils govemance and adminislralion Is made in its Artides of AsKtiation. The Company was incorporated on 14April 1981. The Wessex Synod is one ofthe 13 Synods ofthe Uniled Refornied Church and has the sole P0￿r ofelecting Trustees lo the Company. The Synod has gwen the Trustees, meeting authorty lo appoint new Trustees. but any Trustee so appointed may not serve for more than 1 year 4Mlhoul being elected by the Synod. The maximum registrable membership of Ihe Company is 24, vAih the members also being Trustees of Ihe Company. At least 75% of the Trustees must be members of the Unrted Reformed Clwrch. Once in each calendar year 113 of the Tiuslees forlhe time being. or. rftheir number is not a muttiple of 3, then the number nearest lo bul not exceeding 113 shall ￿ts're from office. The Tru5tee5 to retire on each occasion include, so lar as necessary to obtain the number require¢J, any Trustee who wishe5 to retire and not offer themselves for re-election. and any ftjrther Trustees to rets"￿ shall be those have been the longest in since their last election. A retiring Trustee shall be eligible for reo*cb'on. The appltsble elections and reolect￿nS were considered at the Trustees, Mee￿ngS during the year and agreed at the Syno¢J meeting on 24 April 2023. Rlsk Assessment and Manag9monl The Trustees have a duty lo identify and review ihe risks to which the Company is exposed and to ensure appropriate controls are in place lo provide reasonable a$5uran¢e against fraud and error. The Company and the Synod have undertaken and documented an annual joint Risk Assessment and have undertaken or are going to undertake the necessary aciKJns arising from Iheir review of the outcomes of tho$e assessments. Page 7 THE UNITED REFORMED CHURCH IWESSEXI TRUST LIMITED YEAR ENDED 31 DECEMBER 2023 Rlsk A$s•s$ment and Manag8menL conllnu8d The Trustees have Identified that the nature ol the Company'5 operatM?n$ ts such that the 9￿atest principal risk lo the Company's oper*'ons is rts small number of staff and the risk oftheir absence, for example because of prolonged illness. The Trustees manage the risks 35S0elated v*ith the health and well-being f)f ils staff through exisb.ng line management systems, praclical support from volunteers, and the Human Resources and Fa¢iltties Committee. and guard against fraud and error by undertaking periodic reviews with staff of all intemal controls and operating procedures of the Company. The resulting documented procedures are annually reviewed by the Auditors against I￿rrent best pracb.cè and are *EII understood by the Trustees and the staff and are rigorously enforced. Re¢rultment. Appointment and Training of Twstees The most important qualification for appointrrEnt to the Company as a Trustee is a tPiorough awareneys of the workings of the United Refomed Church and of the Wessex Synod in partiCLtlar. Ideally, this should have been gained through an active role in the life of the Synod and l or the wfjer church. Expertise and experience in such areas as law. human resources. finance and propety are particularly useful rf gained in the context of the councils and operations of the Unrted Reforn*d Church. The combined experb'se and experience of the Trustees has 50 far proved very adequate for the lull range of the Company's activities. The current Trustees who also hold or have in the year to 31 December 2023 hekl significant posts either on behaw of the Synod or on behaff of General Assembly are.. Name Synod Modérator Synod Executive Member Other Revd Clare Downing lunlil 31 March 2023 Mr Raymond Dunnett Trust De Convener Revd DT Michael Hopkins (from 1 March 2024 Mr Colin MacBean Member Moderator Member Trustee of the United Refomed Church Trust Trustee of the United Refomied Church Ministers. Pension Trust Trustee of the United Reformed Chur¢h Trust Trustee and Chair of the United Refomied Church Ministers, Pension Trusl Revd Julian Macro Mrs H Bridget Micklem Revd Dr Romilly MKklem .Irust Convener Mr David North Member Treasu Member Pr05peclive Trustees usually meet wth the Chair of the Company. E¥e¢ulive Officer and one other Trustee who explain and d15cuss the responsibilities of the task and the ways of working of the Trustees. Prospective Trustees are invited lo attend a Trustee5' rneeling before making any decision. An appointment would normally then be rnade by the Trustees. meeting on the recomrnendatitsn of the group that met the pro$pe¢lNe Trustee. A new Trustee is also provided wth electronic copies of the Charity Commiss40n publications CC3 and CC3a and a secure link to a SharePoint folder providing a¢ces$ lo al the minutes and associated documents of the Trustees, meetings from March 2019 to date. All new and exists.ng Trustees are required to undergo periodic Safeguar(Jing toining in acttlrdance with the Wessex Synod'5 Safeguarding policy and procedures. The Company's Senior Slatulory Auditor delivers a training serninar to the Trustees at least once a year. usually at the Company's Annual General Meeting. The Company has a corporate membership of the Church Investors. Group. which holds regular seminars and conlerences, and the Trustees are encouraged to attend these and other seminars offered by the Company's professional advi5er5 and report back to the Trustees, meetings on their though15 an¢J findings. The Trustees also have in-house training on lopul issues when necessary. Page 8 THE UNITED REFORMED CHURCH (WESSEX) TRUST LIMITED YEAR ENDED 31 0ECEM8ER 2023 Relatlonshlp wlth the Wessex Synod of the United Rèfom7•d Church The Company holds the financial assets of the Wessex Synod of the Unite(l Reforn￿d Church in trust. The diffefent categories of trusteeship are as follows= The church buildings and manses of lo￿1 churches a￿ held on the Stsiutory Trusts of Ihe United Reformed Church Acts 1972. 1981 and 2000 Ilhe StstLrtory Twsts'l and decisions concerning such property a￿ govemed by Schedule 2 of the United Refomied Church Act 1972 las amended) I'lhe 1972 Act'l. under vA)ich approval of both the local church meetiThJ and the Synod is required in order for the Company to let or di$pose of any such pfopety. The Unrestricted Fund$ derive from funds inherited from forrnw Congregalional County Unions, from inve$bi)ent gains, and Irom the disposal of interests in redundant property The Unrestricted Funds may be used for the charitable purposes of the Wessex Synod of the Unrted Refomied Church. refflecled in the Company's Memorandum and Articles of Ass(tialion. Local churches resolving to close normally direct that proceeds from the disposal of their building$ will be added lo the Unreslricled Funds of the Company. There are several Resth"¢ted and EndowTnent Funds for which the Company is Charty Trustee, and which are governed by Trust Inslrijmenls olheT Ih3n the Unrted Reformed Church Acts. The Company acts in its sole discretion wrthin the lefms of such Trust Instruments and in response to Ihe needs of the beneficiaries. Vlessex Synod The Synod Offi'cers and the akwinted representstives of the constituent local ¢hurthes in the Wessex Synod met three limes in 2023 as the Wessex Synlxd to support. enable and co-ordinate the work of the Synod and its local churche$. Further information about the responsibilthes of the Synod, the Synod Executive Committee and other Synod committees and groups is available on the Synod ￿bsrte- W•￿.ur¢v￿5SeX.o .uk Oryanisatic*nal Structure of the C¢mpany The Trustees normally meet 5 times a year. or as often as is necessary lo effectively discharge their terms of reference. The business includes policy making. receiving and acting upon ￿pOrtS from its committees, the Synod Clerk, the Ministy and Mis510n Fund Secretary, Ihe Synod Treasurer and the Executive Officer, meeting Investment Managers and considering and approvsng matters relevant to churches and manses. and grant$ and loan5 towards projecis vthin agreed budgets. The business ol tre Trustees in Iheir¢3pacty 05 thè Synod Provincial Property Committee also includes receNing and ath'ng upon reports from the Synod's Listed BLsilding$ Advisory Committee_ The Company has 4 stsnding committees which have delegated authority lo deal with certain areas of the Company's work and meet as often as is necessary to effeclNely discharge their terms of reference. Each Committee prowdes reports lo the Company on Iheirwork and, where applicable, the decisions taken on behalf of the Company. The commitiees are the.. Human Resources arKI Facilities Committee. Investment Committee,. Property Disposals Commillee". an¢J Weware Commrttee. Indemnity Insurance Indemnity insurance is in place lo Cover, up lo £1.C¥)O,000, the liats-lty of the Trustees in relation to negligence, default. breach of duty or brexh of Injst. This cover has been arranged through AnsvaT Insurance Company Limited. Staffing (including Key Management Personn911 The day-ttrday administration ofthe Company is undertaken by the ExecLrtNe Officer and Company Secretsry, Mr Stuart MacLean. supporte(I by 4 members of staff. The Company does nol directty use volunteers in support of its day-to4ay operations. ho%%tver, there is an indirect dependency upon the volunteers who njn the local churches for whose property the Company is the Trustee and those who act on behalf ol the Synod. Page 9 THE UNtTED REFORMED CHURCH IWESSEX) TRUST LIMITED YEAR ENDED 31 DECEMBER 2023 FINANCIAL REVIEW Reserves Policy The full lexl of the Company's Reserves Policy is available on request from the Company's ￿gistered office and is linked here. The total amount of reserves held in Ihe Unreslncled Funds al the end of the year were £37.527,491 {2022'. as re51aled £36,530,185), the movement being due lo.. Grant payment lo URC Ministers. Pension Fund Donations trom fewer closed ¢hur¢hes GAINS12022.' LOSSESI on investment assets Decreased realised gains on propety disposals £NIL £NIL £1,357,567 £NIL 12022.. £9,000,000) 12022. £999,251) 12022. £1.588.3821 12022. £47.4981 Remaining additions to the unrestricted reserves mean tt￿t the Company continues lo achieve ils stated policy of holding sufficient assets t¢ allow the Company to operate from its income without having lo impose a cost on the local churche5 of the Wessex Syncmj lo contribute towards the costs of $u$laining ils charitable objectwes. The need to hold any fvnds in excess of that level wll be regularfy reviewed and ju$tified. or alternatively plans will be developed and Rnplemenled for ihose fvnds to be used in furtherance of the Company's slated chanlable objectives. There have ￿en signrfi¢ant events which have had a financkil effect of Sufficient quantifiable reliability on the Company to warrant adjusting the 2023 accounts. Cash The yearond ¢ash position was £502.953 12022." £4,358,411). The Company a￿ayS aims to maximi$e its managed investment income by seeking to limrt the level of cash held. wth any excess over short term cash flow fequirements being invested in Managed investment in¢ome unrts until required. However, the Company's in¢ome and expenditure is often sporadic and significant wth large sums being realised from propety disposals and being requi￿￿ for granl payments or manse purchases. This can lead lo $ubslanlial cash balances from time to time_ Investment Policy The Company 1$ Trustee of a wide range of ¢harib"es for dtffemg purposes as categorised below. 1. Unrestrl¢tgd fund¥, b•lng th• general ofthe eharlt*ble funds of the Wos¥gx Synod of the UnSted Refomigd Chur¢h The investment objective for these funds Trs to maximise totsl ￿￿M with a view lo a steady increase in both intome and uThJerlying asset value by investing for the longer term. 2. Restrlcted and endowmont funds for the benefit of local churchgs The beneficiaries of these funds fall into 2 distinct Su￿Caleg0rieS.' those who wish lo maximise i￿ome regardless of the consequential effect on eapitsl and Ih05e who are willing to limit short-temi income in order lo improve the prospect of kjng-term 9rth￿h in both income and underfying asset value. The Company recommends that the first category. in market condrtions wth l¢)w interest rates, consider also adopting a policy ol maximising long-lem income and capital groNth. blrt wll follow the wshes ol the beneficiaries. 3. Endowment fund$ for spècific purposes geMrally ci>nn•ctod wlth thè Unit•d Refomied Church The Company has decided Ihat Ihe investment objeclive for these fvnds should be to ach￿Ve a rising income with Ihe prospe¢l of grrhvlh in underlying asset value. Page 10 THE UNITED REFORMED CHURCH IWESSEXI TRUST LIMITED YEAR EIIDED 310ECEMBER 2023 Invgstment Management Strdtegy The Company has formulated the follwrkg elemenls of investrnenl Strategy". Diversification ol investments As a matter of prudence. the Compan￿$ investrnents in equrties V*ill be diversffied over as wde a range of equities as is commensufate with the size of ils portfolio. 2. Common Investment Funds and Unit Trnsts In order lo minimise administration and con5equents.al costs and to fulfil most effe￿ivelY the above diversificab'on strategy. common investment funds and unrt trusts I'pooled funds'l will be used in preference to direct equity holdings 3. Diversification of fund management In view of the size of the Company's assets and the drflering investment objectives for the various Jnds that it holds, it is deemed appropriate lo use MO￿ than one fund manager, bul the Company agreed al ils meeting on 28 January 2016 th* the staled poly of manager diversification sh￿Id no longer take P￿cedenCe over other factors. Soclal Investment Pollcy The Company has not made any programmfrreL4led investments bul supports those mat1e by its continued inve$trnenls in those funds.. by CCLA Inve$tm•nt Management Limited through rts COIF Charities Ethical Investment Fund,. and by Cazonove Capital through rts Responsibl• Multi4s5•t Accurnulation Fund. Ethlcal considerations The United Reformed Churth offers guidance, from to time. on ethi¢al investment which the Company seeks lo follow in its allttation of investment a5sels. In furtherance of these ethical ￿n$l(lerationS the Company is a member of the Church Inv￿tOrS Group and has adopted a sel of statements in line wrth the UK Stewardship Code. Fundralslng •pprooch #nd performance The Charily does not normally undertake ary fundraising acbvrty but does occasionalty reeewe some unsolrciled donations and legarAes. CUSTODIAN TRUSTEESHIP Al the beginning of Ihe year. assets wth a market value of £1.09512022.' £1.1301 were held by Ihe Company a$ Custodian trustee for the Wllals. Mmshouse Charity. During the year, the incoming resoUr￿S ol Ihis fund were £3712022.. £53) and this sum was allocated to the Charrty in 2023, alhough not distributed. The market value of the Charity's investments at the end of kne year were £1.11412022 £1.0951. As the assets of the Charity consist entirely of income shares of The Natsonal Assoa*ion of Almshouses Common Investment Fund. and as the Company holds rbo other shares in this fund. there is no concem over safe custody and segregation from the Company's own assets. Al 31 December 2023 the Con7pany also held as custodian trustee for me￿ UnTte£J Refomed Ch¥Jrch investments valued al £340.72512022". £277.2851 arHJ cash of £5012022.. £9,951>, the difference in the year being capital project spend by the ¢hur¢h rtsell. Page11 THE UMITED REFORMED CHURCH ￿ESsEX) TRUST LIMITED YEAR ENDED 31 DECEMBER 2023 STATEMENT OF TRUSTEES, RESPONSIBILITIES The Trustees Ivtho are also the directors of The United Reformed Church (Wessex) Twst Limited for the purposes of company lawl are responsible for preparing the Report of the Tru5tee5 and the financial slalements in accordance wth applicable law and United Kingdom Accounting Standards {Unrted Kingdom Generally Accepte(l Accounting Practice). Company law requires the Trustees to prepare financial statements for each finarKial year which give a true and fair view of the stale of affairs of the charitable company and of the incoming resouT¢es and appliealion of resources, includiftg the income and expenditure. of the charitable company forthal peTrod. In preparing those financial stslements. the Trustees are required to.. select surtable accounling policies and then appty them consislentty,. observe the methods and prinoples in the Charity Slalemenl Of ReCoMmer￿ed PracticE ISORPI.. make judgements and eslimales that are ￿¥sonable and prudent", and prepare the financial slatements on the going wncem basis unless il is inappropriate lo presume that the charitable company will continue in business_ The Trustees are responsible for keeping proper accounting records vthich disclose with reasonable accuracy at any time the financial posrtion of the ¢haritable company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They a￿ also responsible for safeguarding the assets of the charitable company and hence fof taking reasonable steps for the prevenb.on and (Jeleclion of fraud and other irregulanties. In $0 far as the Trustees are aware.. there is no relevant audit infomialion of which the charitabk company's auditors are unaware". and the Tfuslees have taken all $tep3 that they ought to have taken to make themselves aware of any relevant audit inf0m￿tion and to establish that the auditors are aware of that inlomiation. Approved by order of the Board of Trustees on 27 June 2024 and stgned on its behaw by.. Revd Dr Romilly Wakefiehl m￿k1em- Twsl Convener Page 12 REPORT OF THE INDEPENDENT AUDrroRS TO THE MEMBERS OF THE UNITED REFORMED CHURCH (WESSEX) TRUST UMITED AUDITORS. OPINION We have audrted the financial statements of The Unrted Refomied Church (Wessexl Trust Limited for the year ended 31 December 2Q23 which comprise Statement of Financial Activities. Balance Sheet, Cash Flow Statement and noles to the financial stalements. including a summary of significant accounling poli¢ies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdorn Accounting Standards, induding Financial Reporting Standard 102 The Financial Reporting Standard applicabl8 the UK and R8publK ol Ireland (Unrted Kingdom Generalty Accepted Accounting prath'￿). In our opinion. the financial statements give a true and lair view of the stale of the charitable company's affairs as a131 December 2022 8nd of the charitable company's net movemenl in funds, including the income atxl expenditu￿. for the year then ended., have been propedy prepared in accordance wth United Kingdom Generalty Accepled Accounting Practice., and have been ￿pared in accordance with the requirements of the Companies Act 2006. Basis for oplnlon We conducted our audit in accordance with International Standards on Audth'ng IUKI IISAS IUKII and applicable law. Our responsibilities underthose Standards are further described in the Auditor's respgn5ibilities for the audi( of the financial statements Section of our report. We are independent of the charity in accordance th Ihe ethi¢al reqviremenls that are relevant to our audrt of the financial 51alements in the UK, including the FRC'S Ethical Standard. and we have fulfilled our other ethical responsibilrties in accordance wlh these requirements. We belreve that the audit evidence we have obtained is suffiaent and appropriate to provide a basi5 for our opinion. Concluslons r&latlng to golng con¢em As auditing the hnancial statements. we have conclude(J that the tntstees, use of the going concern basis of accounting in the preparation of the financial statements is apprOpr￿te. Based on the work we have perfomed. we have not identified any material uncertainties relab.ng to events or condrtion5 that. individually or collectivety. may casl signfficant doubt on the charitable company's ability to continue as a going concern lor a period ol at least Melve months from when the financial slalen*nls are authorised fof issue. Our responsibilities and the responsibilities of the trustees %thth respect lo going concern are described in the relevant secl'ons of I￿S reporL Other Informatlon The trustees are responsible for the other information. The other information comprises the information included in the Trustees Report. Our opinion on the finar￿la1 statements does not cover the other information and, except lo the extent otherwise explicitly stated in our report. we do not express any form of a$suran¢e conclusion thereon. In connection with our audit of the financial statements. (wr ￿vIn$1b11ity is to read the other infomalion and, in doing so. consider vthelher the other information is materialty inconsistent vAih the finan¢ial Statements or our knowledge obtained in the audit or otherwse apFtarsto be materially mi5slaled. Ifwe identify such material inconsistencies or apparent material misstatements. we are required to detemiine vthether there Is a material misslalemenl in the financial slatements or a material mi$statemenl ol the other information. If, based on the work we have perfomied, we conclude that there is a material misstatement of this other informatson, we are reqUI￿d lo ￿pOrt that facl. We have nothing to ￿F<)rt in this regard. Oplnlons on olhgr matt•rs pr&Krlbed by th¢ Companies Act 2006 In our opinion, based on the work undertaken in Ihe course of the audrt.. the infomiation given in the Trustees, Report (which incorporates Ihe D1￿ctorS. Report prepared for the purpose5 of company lawl for the financial year for whth the financial statements a￿ Pfepared is consi51enl wth the financial stslements". and the Tru51ees' Report (which incorporates the Directors. Report prepared for the purposes of company lawl has L*en prepa￿¢ in accordance ￿1h applicable legal requirements. Page 13 REPORT OF THE INDEPENDENT AUDITORS TOTHE MEMBERS OF THE UNITED REFORAIED CHURCH IWESSEXI TRUST UMITED Matters on which we are requlred to report by exceptlon In the light ofthe knowledge and understanding oflhe group and parentCharitab￿ company and ts environment obtained in the course of the audit. we have not idenb"fie(1 material misslatements in the Twslees Report (which ineorporales the Directors, Report. We have nothing to rewrt in respect of the followng matters in relation to vthich Ihe Companies Ad 2006 requires us to report to you rf. in our opinion.. adequate accountlllg records have not been kept by the ¢haritsble ¢ompany", or the charitsble company fina￿la1 statements are not in agreement ￿th the accounting records and retums". or certain disclosu￿$ of Trustees. remunerab.on specified by Law are not made; or we have not ￿CeIve{l all the inforrnation and explanations ￿ require for our audrt.. or the Trustees were not enlilled to prepare the financial statemenls in accordance the small companie$, regime and tske advantage of the small companres. exemptions in preparing the Trustees, reFKJrt and from the requirement lo prepare a $tr*gi¢ reprjl. Responsibilities ol trustees for the financial Statements As explained more fully in the trustees, respon5ibililies slatemenl Sel out on page 20. the trustees (who are also the d1￿clOr$ of the charitable company for the purposes of company lawl are responsible for Ihe preparation of the financial stslemenls and for being sa17"$fied that thty gwe a true and fair view, and for such internal control as the Iruslees detem)ine is necessary lo enable the preparatson of financAal statements Ihal are free from material misstalemenl. whether (Jue lo fraud or error. In preparing the financial statements. the truslees are responsible for assessing the charitable company's ability to continue as a going concern. disclosing, as applicable, matters related to going concern and using the going concern basrs of accounting unless the trustees either inlend to liquidate the ¢haritable company or to cease operations, or have no ￿all$ll¢ allernabve but to do $0. Audltor's rnsponslbllities for the audlt of the financlal ststemonts Our objectives are lo obtain reasonable assurance abr4Jt whether the financial statements a$ a %thole are free from material mi$stslemenl. vA)elher due lo fraud or error. and to Issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, bul is not a guarantee that an audit conducted in accordance wlh ISAS {UKI wll a￿ayS delecl a material misstalement when it exists. misslalemen15 can arise from fraud or error and are considered material rf, individually or in the aggregate, they could ￿a$onabfy be expected lo iifluence the e￿n0M[¢ deusions of users tsken on the basi5 of these finar￿la1 statements. Irregularities, including fraud. are instances of non-compliance laws and regulations. We design procedures in line with our responsibilities, OLrtlined above, to dele¢t material mi$$latements in respect of irregularit￿$, including fraud. The extent to which our procedures are capable of detecb'ng irregularities, including fraud 1$ elailed below". Based on our understsnding of the charitable ¢ompany and the environment in which il operate5, we Klentified that the prinapal risks ol non-compliance vnth laws and ￿￿latiOnS related lo the use of reslricled funds in a¢¢ordance with trust law and compliance employment law. and we Considered the extent to which non- ompliance might have a material effect on the financial stalements. We also considered those laws and regulations that have a direct impact on the preparat￿n of the financial Statements such a$ the Charities SORP and the Companies A¢1 2006. We evaluated management's incentives and opportunities for fraudulent rnanipulalion of the financial statements lin¢luding the risk of override of ¢ontrolsl. and ¢Jetem)Trned that the wincrpal rY5ks were related to the recognits.on of income ffom legacies and donations. Audit procedures perfornied by the engagement team included: Inspe¢ting minute5 of Tru5tees' meetings., Reviewng allocations and disclosures relats'ng lo restricted funds.. Inspe¢ting eorrespondence with regulator5 and tax authorilies,. Di￿U$$i0nS with management induding consideration of or suspected instances of non- compliance wth laws and regulation and fraud; Evaluating management's controls designed to prevent and Lletect irregjlartbes," Identifying and testing journals., Reviewng valuations of investrnents., and Challenging assumptions and judgements made by management in their crrtical accounting estimates. These related to depreciation. Page 14 REPORT OF THE INDEPENDEPIT ALIDITORS TO THE MEMBERS OF THE UNITED REFORMEO CHURCH IWESSEXI TRUST LIMITED Because of the inherent limitations of an audit. the￿ a risk that V+e will not delect all irregularities. including those leading lo a material misstatement in the financial stslemenls or non-¢omplianGe wlh regulation. Thi5 risk increases the more that compliance with a law or regulats.on is removed from the events and transaciions refflecled in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurTing due to fraud rather than error. as fraud involves intents'onal concealment. forgery, Collusion. omission or misrepresentation. A further des¢riplion of our responsibilities for the audrt of the financial statements 15 localed on the Financial Reporting Council's website al". w￿.fre. .uklauditorsre5 nsibilities. This description forms part of our auditorfs report. Us• ofour r•port This report is made solety to the charitable company's memlxrs. as a body, in accordance wlh Chapter 3 of Part 16 of the Companies Act 2006. Our audit %wrk has been undertaken so Ihatwe might slate lo the charitable Company's members those matter5 VR are required to State to them in an Audilorfs ￿port and for no other purpose To the ful￿51 extent permTrtted by law, we do not accept or assume re$ponsibility lo anyone olhef than the Charitable company and the charrtable company's members as a body. for our audit work, for this report, or foT the opinions we have fomied. Adam Halsey (Senlar Siatutory Audltor) for and on b•hall of Haysmaclntyre LLP Iststutory Auditor) 10 Queen Street Place London EC4R 1AG . 2024 HaysrnacintyTe LLP 15 eligible to acl as an audilor in lenTYS of section 1212 01 the Companies Act 20C6. Page15 THE UNITED REFORMED CHURCH (WESSEX) TRUST UMITED STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDEO 31 DECEMBER 2023 STATEMENT OF FINANCIAL ACTIVITIES 2023 Total funds 2022 Total funds (as restated) Unrestricted fvnds Restncted Endovrnent lunds Notes INCOME AND ENDOWMENTS FROM Donatic)ns and legacies Charltable aC￿vItIeS SUppO￿ng the Wessex Synod Trinity Hall 10,621 10,621 999,275 2,771 2,771 1.873 941 Investrnenl incorn 1.659,072 39.107 8.541 1,706,720 1,304.453 Other Income Sale of fixed assets 321754 Total 1,672.464 39.107 8,541 1,720.112 2,628,296 EXPENDITURE ON Ra15ing funds Charltable a¢tlvltles Supporbng the Wessex Synod 776,992 776.992 662,140 1.545,096 2.322.088 39.107 39 107 12.805 12.805 1,597,008 2,374.000 1 082 667 1,744,807 Sub Total 649.6241 653 888) 883,489 Grant lo Minister's Pensi 9,000.000 (649.6241 14.2641 (653,888) 18,116,511) Galnslllossesl on Inv•stm8nt as$•ts Investment proporti•s 1.222,280 113,739 21,548 1.357,567 11,588,382) 47.498 Ngt incomè Trnn$fer$ b•twmn fund$ 23 572.656 424,650 113.739 1428,8851 17.284 4,235 703.679 19,657.395) Net movement in fund5 997.3C6 1315.1461 21.519 703.679 19.657,3951 RECONCILIATION OF FUNDS Funds brought fon¥ard 36,530,185 1,484.092 271,454 36,285,731 47,943,126 TOTAL FUNDS CARRIED FORWARD 37.527.491 1.168,946 292,973 38.989,410 38,285,731 l income and expendrture derive from continuing activit￿S. The notes on pages 19 to 35 form part of the f nancial statements. Page 16 THE UI4ITED REFORMED CHURCH IWESSEXI TRUST LIMITED BALANCE SHEET AS AT 31 DECEMBER 2023 BALANCE SHEEr R•gisteYed Company number 01555990 (England and Wales) 2023 2022 las reststedl Notes FIXED ASSETS Tangible assets Invgstmonts Inveslments Inveslment pfoperty 14 14,928,728 14.414.487 15 16 22,494,093 21,136,526 6,332,600 5,227,600 43.755,421 40,778,613 CURRENT ASSETS Debtors Investments Cash at bank 726,528 1.915,000 502.952 404.147 2,840,000 4.358,411 3,144,480 7.602,558 CREDITORS Amounts falling due wthin one year 19 11,472.3381 13,297,069) NET CURRENT ASSETS 1672 142 4 305 489 TOTAL ASSETS LESS CURRENT LIABILITIES 45.427.$63 45.084.102 CREDITORS Amounts falling due after more than ￿e year 20 16.438,1531 16.798,3711 NET ASSETS 38,989 410 38.285,731 FUNDS General fund Designated fvnds 23 22,753,237 21.741.590 14,774,254 14,788.595 Totsl unrestricted funds 37,527,491 36,530.185 Restricted funds Endowment funds 1.168.946 292.973 1,484.092 271,454 TOTAL FUNDS 38,989,410 38,285,731 The financral statements were approved by the Board of Trustees on 27 June 2024 and were signed on its behalf by.. Revd Dr Romilly Wakefield Micklem- Twsl Convener The notes on page5 19 10 35 fo￿ part of the financial slatements. Page 17 THE UNITED REFORMED CHURCH (WESSEX) TRUST LIMITED CASH FLOW STATEP41ENT AT 31 DECEMBER 2023 CASH FLOW STATEMENT 2023 2022 Reconciliation of Net Incoming Resources to Cash Inflow from Operating Activities Changes in resources before revaluations Returns on investment Dep￿ClaI1¢n Surplus on disposal of tsngible fixed assets Closed churches donated Ilncreaselldecrease in debtors Increaselldecreasel in creditors (653,8881 11.706,720} 4,008 18,116.5111 11,304,453) 3,612 {321.7S41 {979,2521 {125.6721 8,878.203 {125,1431 12,225.8291 Net cash infiow from 0￿rating activiti 14,737,572) 11.965.827) Cash fl¢)wy from ifiveyting activiti8¥ Relums on investment Payments lo acquire tangible fixed assets Receipts from sale of lang1ble fixed assets Payments lo acquire investments Receipts from sale5 of investments Receipts from sales of investment properties Receipts from sales of current asset investment Repayment ol loans from minister5 and churches New loans to ministers and churthes 1.640.312 1560,960) 1.297,577 1396.8131 688,119 19.300.906) 10,034,871 1,107.143 935,812 18.670 {35.0001 17,261 1214,5001 Change in cash and cash equivalents in the year Cash and cash equivalents al the beginning of the year {3,855,4591 4.358,411 2.383.646 1,974.765 Cash and Cash equivalents at the end of the year 502.952 4.358.411 Page 18 THE UNITED REFORMED CHURCH IWESSEXI TRiIST UMITED NOTES TO THE ACCOUNTS At 31 DECEMBER 2023 ACCOUNTING POUCIES Ba$Ss of a¢countlng The financial statements ore prepared under Ihe historical eosl convention as modified to Include the revaluation of investment assets. The format of the financial ststements has been presented lo comply wrth the Companies Act 20￿. the Charitie$ Act 2011. FRS102 The Financial Reporting Standard applKable in the UK and Ireland and the Statement of Recommended Practice for Charities ISORP 20191. The Charty Is a Public Benefrt Entity as defined by FRS102. Figures are presented in sterling and rounded to the nearest pourKI. General information The Charty is a company limited by guarantee. incorporated in England and Wales l¢ompany number.. 015559901 and a Charity registe￿￿ in England and Wales (Charity number. 2827291 The Charity's registered office addres$ is 120 Alma Road. Southamp¢on. Hampshire, S014 6UW. Going concern assessment The Trustees consider that the￿ a￿ no material uncertainties which would Cast doubl en the Company's ability lo continue as a going c￿ceM. The Trustees continue lo monitor the effects of inflation, inleresl rales and a more drfr￿￿rt property market an¢J do not consider them lo call Going Concern into question. In particular, Tnjstees note Ihat the Company's Signif￿nt investment funds are managed on a 'total returns. basis. 4thich provides a predictable income stream. and that the Company does not depend on property disposals to cover its core slaff and operatir¢g costs. Significant judgements and estimates In preparing these financial statements the Trustees have had to make estimates and assumpts'ons that affeGt the amounts recognised in these financial statements. Estimates and judgements are continually evaluated and are based on historical experience and other fadors. including expectations of fijtu events that are believed to be reasonable under the circumstsnces. The only key area Subject to judgement where adjustments would have a material effect on the accounts is investment properties. The Trustees have revie*d the carrying value of assets and liabilitie5 and their useful economic lives and do not ¢onsider that a re￿Se(j rale of depreuation should be w)sidere