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2021-12-31-accounts

THE ROMNEY MARSH HISTORIC CHURCHES TRUST

REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

Charity Registration No. 284909

THE ROMNEY MARSH HISTORIC CHURCHES TRUST

FINANCIAL STATEMENTS

YEAR ENDED 31 DECEMBER 2021

Contents Page
Charity Reference and Administrative Details 1
Council’s Annual Report 2-4
Independent Examiner’s Report 5
Statement of Financial Activities 6
Balance Sheet 7
Notes to the Financial Statements 8-13

THE ROMNEY MARSH HISTORIC CHURCHES TRUST

CHARITY REFERENCE AND ADMINISTRATIVE DETAILS

YEAR ENDED 31 DECEMBER 2021

Charity registration number 284909
Council Members John Doyle MBE (President)
Peter Anwyl-Harris (Chairman)
Elizabeth Marshall (Secretary)
David Williams (Treasurer)
Rev’d Patricia Fogden
Ian Hamilton
David Hanbury
John Hendy
Celia Heritage
Dr Nick Hudd
Graham Maple
Georgia Small
George Staple QC
Joanna Thompson
Registered office Ring Cottage
Wissenden Green
Bethersden
Kent TN26 3EW
Independent Examiner M A Wilkes FCA
Azets Audit Services
5thFloor
Ashford Commercial Quarter
1 Dover Place
Ashford
Kent TN23 1FB

1

THE ROMNEY MARSH HISTORIC CHURCHES TRUST

COUNCIL’S ANNUAL REPORT

YEAR ENDED 31 DECEMBER 2021

The Members of the Council present their report and examined financial statements of the charity for the year ended 31 December 2021. The Members of the Council have adopted the provisions of the Statement of Recommended Practice (SORP) “Accounting and Reporting by Charities” (FRS 102) in preparing the annual report and financial statements of the charity.

The financial statements have been prepared in accordance with the accounting policies set out in the notes to the financial statements and comply with the charity’s governing document, the Charities Act 2011 and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland published on 16 July 2014 as amended by Bulletin 1.

Objectives and activities

The objects of the Trust shall be to preserve and maintain the fabric and curtilage of the churches of Brenzett, Brookland, Burmarsh, Dymchurch, East Guldeford, Fairfield, Ivychurch, Lydd, Newchurch, New Romney, Old Romney, St Mary in the Marsh, Snargate and Snave and the ruined churches of Broomhill, Eastbridge, Hope and Midley, in the counties of Kent and East Sussex; to make physical improvements, alterations and additions to the said churches, to include the installation of basic facilities; to support other religious purposes in connection with the said churches; and to advance the education of the public in the history and architecture of the said churches.

In furtherance of the above objects, the Trust shall have the following powers:

Public benefit statement

The Council confirms that they have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing the Trust’s aims and objectives and in planning future activities.

Strategic Report

Achievements and performance

The Trust made grants totalling £108,000 during the year (2020: £60,600); the principal recipients being St Mary the Virgin, St Mary in the Marsh (£14,900), St Eanswith, Brenzett (£13,800), St George, Ivychurch (£13,000), St Peter & St Paul, Dymchurch (£12,100), St Dunstan, Snargate (£11,500), St Mary, East Guldeford (£7,800), St Augustine, Brookland (£6,100) and All Saints, Lydd (£6,000) together with £15,600 for the creation of mosaics for four churches.

2

THE ROMNEY MARSH HISTORIC CHURCHES TRUST

COUNCIL’S ANNUAL REPORT

YEAR ENDED 31 DECEMBER 2021

Financial review (including reserves policy)

The total income received of £138,000 (2020 - £114,000) benefitted from the receipt of the assets of the charity The Friends of St Nicholas New Romney amounting to almost £49.000 following its closure in October 2021. In accordance with the wishes of that charity's trustees and in agreement with The Charity Commission, the use of these funds is restricted to the future maintenance of St Nicholas New Romney. Income from investements and other activites is comparable with last year but still below the pre-pandemic levels.

Stockmarkets had a good year in 2021 which is reflected in an unrealised profit on investments for the year of £117,000 (2020 - unrealised loss £49,000). The overall result was a substantial increase in the Trust's net assets at 31 December 2021 to just under £1,000,000 (2020 - £850,000).

The Trust's designated funds, amounting to £860,000 (2020 - £743,000) represent the investment portfolio which the Council is holding to generate income and long term capital growth which is then applied for charitable purposes The Trust's restricted funds amounting to £49,000 (2020 - Nil) are as described above and the balance of the Trust's funds amounting to £77,000 (2020 - £107,000) are unresticted.

Investment policy

The investment committee, which at at 31 December 2021 consisted of Peter Anwyl-Harris, David Williams and David Hanbury, is responsible for the Trust’s investment policy and meets regularly, both formally and informally to discuss the Trust’s investments. The Trust’s investment objective is to maintain a balance between income and capital growth over the longer term with medium risk.

The Trust’s portfolio is currently invested through a range of Common Investment Funds (CIFs), professionally managed funds providing the benefits of diversification. CIFs are themselves registered charities and as such the Trust enjoys all the tax advantages of a segregated portfolio in an administratively efficient manner. The CIFs held by the Trust are invested in a range of UK and overseas equities and fixed interest securities. It is the Council’s intention to invest only through CIFs where there is a commonality of interest with other investors.

Other than small cash balances, sufficient cash is maintained on deposit in accordance with the Trust’s reserves policy.

Risk register

The Council has developed a list of the current risk factors which have the potential for endangering the operations of the charity and is satisfied with this analysis and the measures which have been taken to mitigate the effects of these factors.

The main risk is that although the Trust’s grant making activities rely on income derived from a number of different sources, many of those levels, particularly income from donations and legacies, vary from year to year and cannot either be predicted or relied upon.

Going concern

The Council considers the Trust to continue to be a going concern. Although the Covid-19 pandemic restricted the fund raising activities of the Trust, the Trust continued to receive good levels of subscriptions, donations and other funds. Most of the Trust’s assets are held in a range of investment funds and, along with the majority of stock market investments, the value of these rose by approximately 16% over the year. They continue to be held for the long term but are readily realisable and can be sold in order to fund the Trust’s grant giving activities as required.

3

THE ROMNEY MARSH HISTORIC CHURCHES TRUST

COUNCIL’S ANNUAL REPORT

YEAR ENDED 31 DECEMBER 2021

Plans for future periods

The Trust will continue to pursue its objectives and activities as detailed in this report. The Marsh churches PCCs submit applications for grants for the year at the March Council meeting which include details of proposed work, architects’ reports, quotes and sources of any other funds. Applications for emergency grants may be submitted at any time during the year.

Structure, governance and management

Council members of the charity

Members of the Council who have served during the year were as follows:

John Doyle MBE (President) John Hendy
Peter Anwyl-Harris (Chairman) Celia Heritage
Elizabeth Marshall (Secretary) Dr Nick Hudd
David Williams (Treasurer) Graham Maple
William Barham (resigned 4 September 2021) Mark Skilbeck (died 9 February 2021)
Rev’d Patricia Fogden Georgia Small
Ian Hamilton George Staple QC
David Hanbury Joanna Thompson

The Trust comprises a Council of not more than 24 members who are subject to re-election every three years by Trust members. The Council meets formally four or five times a year and in addition the Trust's Constitution provides for an Executive Committee comprising the Chairman, the Honorary Treasurer and the Honorary Secretary together with such other members of the Council as are necessary to deal with the day-to-day running of the Trust. In 2020 and 2021, the COVID-19 pandemic significantly effected the management of the Trusts as there were periods when the Council was not able to meet and the Executive Committee was expanded to include Dr Nick Hudd, David Hanbury and George Staple QC.

The annual general meeting is normally held in May or June each year. Due to the COVID-19 pandemic, the 2021 meeting was postponed and held on 4 September 2021. It is hoped to hold the 2022 meeting in May 2022.

Council’s responsibilities

The Council is responsible for preparing the Council’s Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

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

select suitable accounting policies and then apply them consistently;

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

Signed on behalf of the Council

P D Anwyl-Harris

P D Anwyl-Harris Chairman

4

THE ROMNEY MARSH HISTORIC CHURCHES TRUST

INDEPENDENT EXAMINER’S REPORT

YEAR ENDED 31 DECEMBER 2021

Independent Examiner's Report to the Council of The Romney Marsh Historic Churches Trust

I report to the trustees on my examination of the accounts of The Romney Marsh Historic Churches Trust for the year ended 31 December 2021.

Responsibilities and basis of report

As the charity trustees of the Trust you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (‘the Act’).

I report in respect of my examination of the Trust’s accounts carried out under section 145 of the 2011 Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.

Independent examiner's statement

I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

  1. accounts records were not kept in respect of the Trust as required by section 130 of the Act; or

  2. the accounts do not accord with those records; or

  3. the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a ‘true and fair view’ which is not a matter considered as part of an independent examination.

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

M A Wilkes

M A Wilkes (FCA)

For and on behalf of Azets Audit Services

5[th] Floor, Ashford Commercial Quarter, 1 Dover Place Ashford, Kent. TN23 1FB

Date: 1st April 2022

5

THE ROMNEY MARSH HISTORIC CHURCHES TRUST

STATEMENT OF FINANCIAL ACTIVITIES

YEAR ENDED 31 DECEMBER 2021

----- Start of picture text -----
2021 2021 2021 2020
Unrestricted Restricted
funds funds Total Total
Note £ £ £ £
Income from:
Donations and legacies 2 55,338 48,850 104,188 80,309
Other trading activities 3 7,607 - 7,607 9,159
Investments 4 26,268 - 26,268 23,983
Other 427 - 427 789
Total income 89,640 48,850 138,490 114,240
Expenditure on:
Raising funds
Cards 5,188 - 5,188 3,908
Charitable activities 5 108,069 - 108,069 60,637
Governance 6 5,612 - 5,612 6,570
Total expenditure 118,869 - 118,869 71,115
Net expenditure and movement in funds before
gains on investments (29,229) 48,850 19,621 43,125
Net gains/(losses) on investments 8 116,998 - 116,998 (49,366)
Net movement in funds 87,769 48,850 136,619 (6,241)
Reconciliation of funds:
Total funds brought forward 849,738 - 849,738 855,979
Total funds carried forward 937,507 48,850 986,357 849,738
----- End of picture text -----

All income and expenditure derive from continuing activities.

The statement of financial activities includes all gains and losses recognised during the year.

All income generated in 2020 was derived from unrestricted income.

6

THE ROMNEY MARSH HISTORIC CHURCHES TRUST

BALANCE SHEET

YEAR ENDED 31 DECEMBER 2021

----- Start of picture text -----
2021 2020
Note Total Total
£ £
Fixed assets
Investments 8 860,109 743,111
Current assets
Debtors 9 12,076 9,532
Cash at hand and in bank 186,351 205,365
198,427 214,897
Creditors: amounts falling due within one year 10 (72,179) (108,270)
Net current assets 126,248 106,627
Net assets 986,357 849,738
Charity funds
Designated funds 11 860,109 743,111
Restricted funds 12 48,850 -
Unrestricted funds 77,398 106,627
Total charity funds 13 986,357 849,738
----- End of picture text -----

The financial statements were approved and authorised for issue by the Council on 25 March 2022

Signed on behalf of the Council

P D Anwyl-Harris

P D Anwyl-Harris Chairman

D A R Williams

D A R Williams Treasurer

The notes on pages 8 to 13 form part of these financial statements.

7

THE ROMNEY MARSH HISTORIC CHURCHES TRUST

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 DECEMBER 2021

1 Summary of significant accounting policies

1.1 General information and basis of preparation

The Romney Marsh Historic Churches Trust is a registered charity with the Charity Commission in the United Kingdom. The address of the registered office is given in the charity information on page 1 of these financial statements. The nature of the charity’s operations and principal activities are to preserve and maintain the fabric and curtilage of the churches of Brenzett, Brookland, Burmarsh, Dymchurch, East Guldeford, Fairfield, Ivychurch, Lydd, Newchurch, New Romney, Old Romney, St Mary in the Marsh, Snargate and Snave and the ruined churches of Broomhill, Eastbridge, Hope and Midley, in the counties of Kent and East Sussex.

The charity constitutes a public benefit entity as defined by FRS 102. The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued on 16 July 2014 as amended by Bulletin 1, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011, and UK Generally Accepted Practice as it applies from 1 January 2015.

The financial statements are prepared on a going concern basis under the historical cost convention, modified to include certain items at fair value. The financial statements are prepared in sterling which is the functional currency of the charity and rounded to the nearest £.

The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

1.2 Funds

Unrestricted funds are available for use at the discretion of the Council in furtherance of the general objectives of the charity and which have not been designated for other purposes.

Designated funds comprise unrestricted funds that have been set aside by the Council for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.

Restricted funds can only be used for particular restricted purposes within the objects of the charity or for the maintenance of specified churches. Restrictions arise when specified by the donor.

1.3 Income recognition

All income is included in the Statement of Financial Activities (SoFA) when the charity is legally entitled to the income after any performance conditions have been met, the amount can be measured reliably and it is probable that the income will be received.

For donations to be recognised the charity will have been notified of the amounts and the settlement date in writing. If there are conditions attached to the donation and this requires a level of performance before entitlement can be obtained then income is deferred until those conditions are fully met or the fulfilment of those conditions is within the control of the charity and it is probable that they will be fulfilled.

For legacies, entitlement is the earlier of the charity being notified of an impending distribution or the legacy being received. At this point income is recognised. On occasion legacies will be notified to the charity however it is not possible to measure the amount expected to be distributed. On these occasions, the legacy is treated as a contingent asset and disclosed.

8

THE ROMNEY MARSH HISTORIC CHURCHES TRUST

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 DECEMBER 2021

1.3 Income recognition - continued

Membership subscriptions income is recognised when receivable.

Income from trading activities includes income earned from fundraising events to raise funds for the charity. Income is received in exchange for supplying goods and services in order to raise funds and is recognised when entitlement has occurred.

Investment income is earned through holding assets for investment purposes such as shares and property. It includes dividends, interest and rent. Interest income is recognised using the effective interest method and dividend income is recognised as the charity’s right to receive payment is established.

1.4 Expenditure recognition

All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Expenditure is recognised where there is a legal or constructive obligation to make payments to third parties, it is probable that the settlement will be required and the amount of the obligation can be measured reliably. It is categorised under the following headings:

Irrecoverable VAT is charged as an expense against the activity for which expenditure arose.

Grants payable to third parties are within the charitable objectives. Where unconditional grants are offered, this is accrued as soon as the recipient is notified of the grant, as this gives rise to a reasonable expectation that the recipient will receive the grants. Where grants are conditional relating to performance then the grant is only accrued when any unfulfilled conditions are outside of the control of the charity.

1.5 Investments

Investments are recognised initially at fair value which is normally the transaction price excluding transaction costs. Subsequently, they are measured at fair value with changes recognised in ‘net gains/(losses) on investments’ in the SoFA if the shares are publicly traded or their fair value can otherwise be measured reliably. Other investments are measured at cost less impairment.

1.6 Debtors and creditors receivable / payable within one year

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in expenditure.

1.7 Tax

The charity is an exempt charity within the meaning of schedule 3 of the Charities Act 2011 and is considered to pass the tests set out in Paragraph 1 Schedule 6 Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes.

9

THE ROMNEY MARSH HISTORIC CHURCHES TRUST

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 DECEMBER 2021

1.8 Going concern

The financial statements have been prepared on a going concern basis as the Council believes that no material uncertainties exist. The Council has considered the level of funds held and the expected level of income and expenditure for next 12 months when authorising these financial statements. The budgeted income and expenditure is sufficient with the level of reserves for the Trust to be able to continue as a going concern.

1.9 Judgements and key sources of estimation uncertainty

Accounting estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. There are no judgements or key sources of estimation technique.

2
Income from donations and legacies
Membership subscriptions
Donations
Legacies
Gift Aid reclaim
3
Income from other trading activities
Fundraising events - all for unrestricted funds
4
Income from investments
Dividends - equities
Interest - deposits		 Unrestricted
funds
2021
£
10,308
35,510
-
9,520
55,338
Unrestricted
funds
2021
£
25,984
284
26,268		 Restricted
funds
2021
£
-
48,850
-
-
48,850
Restricted
funds
2021
£
-
-
-		 Total
2021
£
10,308
84,360
-
9,520
104,188
2021
£
7,607
Total
2021
£
25,984
284
26,268		 Total
2020
£
10,806
14,100
50,000
5,403
80,309
2020
£
9,159
Total
2020
£
23,136
847
23,983

10

THE ROMNEY MARSH HISTORIC CHURCHES TRUST

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 DECEMBER 2021

5 Expenditure on charitable activities

Recipients of grants to institutions. In both 2021 and 2020, these were all from unrestricted funds.

All Saints, Burmarsh
All Saints, Hope
All Saints, Lydd
St. Augustine, Brookland
St. Augustine, Snave
St. Clement, Old Romney
St. Clement, Old Romney - release of 2019 grant not fully used
St. Dunstan, Snargate
St. Eanswith, Brenzett
St. George, Ivychurch
St. George, Ivychurch - release of 2019 and 2020 grants not fully used
St. Mary the Virgin, St. Mary in the Marsh
St. Mary the Virgin, St. Mary in the Marsh - release of 2020 grant not fully used
St. Mary, East Guldeford
St. Peter & St. Paul, Dymchurch
St. Peter & St. Paul, Dymchurch - reversal of 2017 grant
St. Peter & St. Paul, Newchurch
St. Thomas-a-Becket, Fairfield
Mosacis for Snave, Snargate, Old Romney, Fairfield
6
Governance costs
Postage
Independent examiner's remuneration
Insurance
Printing and stationery
Other costs		 2021
£
4,115
4,500
6,016
6,107
5,000
-
(5,042)
11,515
13,789
13,020
(2,950)
14,920
(1,000)
7,843
12,124
-
-
2,512
15,600
108,069
2021
£
1,825
1,230
487
1,297
773
5,612		 2020
£
237
-
2,138
4,454
10,000
17,000
-
-
1,289
6,219
-
7,000
-
-
-
(1,000)
13,300
-
-
60,637
2020
£
2,130
1,200
839
935
1,466
6,570

7 Staff costs, Council remuneration and expenses

No staff were employed by the Trust during the year (2020: none).

The Council members neither received nor waived any remuneration during the year (2020: £Nil).

Three Council members received reimbursements for expenses incurred amounting to £2,208 (2020: Three Council members were reimbursed £1,955).

11

THE ROMNEY MARSH HISTORIC CHURCHES TRUST

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 DECEMBER 2021

8 Fixed asset investments

UK Quoted investments
Valuation
At 1 January 2021
Unrealised gains/(losses)
At 31 December 2021
Historical cost as at 31 December 2021		 2021
£
743,111
116,998
860,109
472,792		 2020
£
792,477
(49,366)
743,111
472,792

The fair value of listed investments is determined by reference to the mid-market value of shares at the Balance Sheet date.

Holdings in investments at 31 December 2021

Blackrock Charities UK Equity Fund A Inc.
BNY Mellon Charities Fund - Newton Growth & Inc. Inc. class
COIF Charities Investment Fund
M&G Charifund Income
SUTL Cazenove Charity Equity Value Fund A Income		 2021
£
162,327
168,500
202,218
155,620
171,444
860,109		 2020
£
146,253
145,320
177,545
137,257
136,736
743,111

9 Debtors

Prepayments, loans and accrued income
10
Creditors: amounts falling due within one year
Accruals for grants payable
Other accruals
Accruals for grants payable
Commitments at 1 January 2021
Adjustment to opening balance
Grants awarded in year (note 5)
Grants paid in year		 2021
£
12,076
2021
£
70,929
1,250
72,179
2021
£
106,766
-
108,069
(143,906)
70,929		 2020
£
9,532
2020
£
106,766
1,504
108,270
2020
£
125,062
175
60,637
(79,108)
106,766

12

THE ROMNEY MARSH HISTORIC CHURCHES TRUST

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 DECEMBER 2021

11
Designated funds
2021
Investment portfolio
2020
Investment portfolio		 Balance at
1 Jan 2021
£
743,111
743,111
Balance at
1 Jan 2020
£
792,477
792,477		 £
116,998
116,998
£
(49,366)
(49,366)
Transfers,
gains/(losses)
Transfers,
gains/(losses)		 Balance at
31 Dec 2021
£
860,109
860,109
Balance at
31 Dec 2020
£
743,111
743,111

The designated fund represents the investment portfolio which the Council is holding to generate income and long term capital growth which is then applied for charitable purposes.

12 Restricted funds

2021
Maintenance of St Nicholas New Romney		 Balance at
1 Jan 2021
£
-
-		 Income
£
48,450
48,450		 Balance at
31 Dec 2021
£
48,450
48,450

The restricted fund was established in 2021 when the assets of the charity The Friends of St Nicholas New Romney amounting to almost £49,000 following its closure in October 2021. In accordance with the wishes of that charity's trustees and in agreement with The Charity Commission, the use of these funds is restricted to the future maintenance of St Nicholas New Romney

13 Analysis of net assets between funds

2021
Fixed assets
Current assets
Current liabilities
Total
2020
Fixed assets
Current assets
Current liabilities
Total		 Unrestricted
£
-
198,427
(72,179)
126,248
Unrestricted
£
-
214,897
(108,270)
106,627		 Designated
£
860,109
-
-
860,109
Designated
£
743,111
-
-
743,111		 Restricted
£
-
48,450
-
48,450
Restricted
£
-
-
-
-		 Total
£
860,109
246,877
(72,179)
1,034,807
Total
£
743,111
214,897
(108,270)
849,738

14 Related party transactions

There were no related party transactions during the year (2020: none).

13