CHARITY REGISTRATION NUMBER: 287022
Church of England Clergy Stipend Trust Unaudited Financial Statements 31 March 2021
CHRISTOPHER BAILEY ACCOUNTANTS (OLDHAM) LIMITED
Chartered Accountants County End Business Centre Jackson Street Springhead Oldham Lancashire OL4 4TZ
Church of England Clergy Stipend Trust
Financial Statements
Year ended 31 March 2021
| Page | |
|---|---|
| Trustees' annual report | 1 |
| Independent examiner's report to the trustees | 6 |
| Statement of financial activities | 7 |
| Statement of financial position | 8 |
| Notes to the financial statements | 9 |
Church of England Clergy Stipend Trust
Trustees' Annual Report
Year ended 31 March 2021
The trustees present their report and the unaudited financial statements of the Charity for the year ended 31 March 2021.
Reference and administrative details
| Registered charity name | Church of England Clergy Stipend Trust | Church of England Clergy Stipend Trust |
|---|---|---|
| Charity registration number | 287022 | |
| Principal office | 271 South Lambeth Road | |
| London | ||
| SW8 1UH | ||
| The trustees | Mr J C G Trower | |
| The Ven L J Miller | ||
| Revd D N C Houlding | ||
| Mr R Holroyd | ||
| Mr J W Parkinson | (retired 24 September 2021) | |
| Secretary | Mrs D Madden | |
| Independent examiner | Christopher Bailey ACA | |
| Christopher Bailey Accountants | (Oldham) Limited | |
| Chartered Accountants | ||
| County End Business Centre | ||
| Jackson Street | ||
| Springhead | ||
| Oldham | ||
| Lancashire | ||
| OL4 4TZ | ||
| Investment managers | Rathbone Investment Management Limited | |
| Port of Liverpool Building | ||
| Pier Head | ||
| Liverpool | ||
| L3 1NW | ||
| CBF Church of England | ||
| Senator House | ||
| 85 Queen Victoria Street | ||
| London | ||
| EC4V 4ET | ||
| Solicitors | Trowers & Hamlins LLP | |
| 3 Bunhill Row | ||
| London | ||
| EC1Y 8YZ | ||
| Bankers | HSBC Bank plc | |
| 2-4 St Ann’s Square | ||
| Manchester | ||
| M2 7HD |
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Church of England Clergy Stipend Trust
Trustees' Annual Report
Year ended 31 March 2021
The CBF Church of England Deposit Fund CCLA Investment Management Limited Senator House 85 Queen Victoria Street London EC4V 4ET
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Church of England Clergy Stipend Trust
Trustees' Annual Report (continued)
Year ended 31 March 2021
Structure, governance and management
Background and legal structure
The Trust was inspired by the late Sir William Trower as a small contribution to the post war problem of inadequate stipends for the parochial clergy of the Church of England. It was constituted by a trust deed dated 8 May 1952, the original trustees being Messrs H E Seir, G G Parkinson and W G Trower, Sir James Rait Brown and the Venerable Archdeacon G F Townley, the last two mentioned having been nominated by the Archbishop of Canterbury and the Archbishop of York respectively; the Archbishops continue to enjoy this power of nomination in the replacement of those original trustees and their successors. The Trust is registered with the Charity Commissioners under No. 287022.
The Trustees meet at least annually, usually in November, at which meeting they consider grant making, reports from Dioceses regarding previous grants, investments and performance, capital and income account balances, income review, budgets, cash flow, reserves and risk management policies.
Trustees are appointed by the unanimous agreement of existing Trustees. On appointment, the new Trustee is provided with a copy of the Trust Deed and the most recent report and accounts. Copies of previous Trustees' meeting minutes are available to the new Trustee.
The Trustees who served during the year are named on page 1. The Trustees have wide powers of investment in accordance with the provisions of the Trustee Act 2000.
After many years of dedicated service as a Trustee, John Parkinson decided that he wished to retire. He leaves with the grateful thanks of his fellow Trustees for the good sense and wisdom which he brought to the role. John Berry also decided to retire as Secretary to the Trust and Delia Madden has been appointed as his replacement. The Trustees are equally grateful to John Berry for all his hard work in administering the Trust over the last few years.
Objectives and activities
Objects
The Trust Fund is held at the discretion of the Trustees, without distinction between capital and income, for the following purposes, namely the augmentation of the stipends of parsons, vicars, curates and ministers officiating in the churches and chapels of the Church of England, the relief of poverty among such parsons and the advancement of religion generally in accordance with the faith and doctrine of the Church of England.
Grant-making policy
In pursuit of the objects of the Trust, the Trustees make grants, via diocesan bishops, to dioceses which, on the basis of assessment of resources and needs (based on information from the Archbishops' Council) are demonstrably deserving of further financial assistance. Such cases are mainly focussed in areas of severe urban deprivation and as a consequence a large proportion of the Trustees' grants are concentrated in the Province of York. The Trustees have instituted procedures to satisfy themselves that the grants have been expended in accordance with the Trust's objectives.
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Church of England Clergy Stipend Trust
Trustees' Annual Report (continued)
Year ended 31 March 2021
Achievements and performance
Total incoming resources for the year amounted to £71,314 (2020: £85,650).
Secretarial expenses together with investment management fees and other expenditure (excluding Grants) increased by £1,639 (2020: Increase £1,566). For the year ended 31 March 2021, total net outgoing resources were £64,754 (2020: £47,979) after taking into account distributions by the Trustees of £115,800 (2020: £115,000) in pursuance of their objectives among beneficiaries in the 18 Dioceses of the Provinces of Canterbury and York, as shown in the Statement of Financial Activities on page 7. The net movement in funds taking account of the profits and losses on investments on Capital Account was an overall surplus of £594,867 (2020: Deficit £313,775). The net assets of the trust at 31 March 2021 were £3,502,692 (2020: £2,907,825).
Public benefit
In carrying out their activities the Trustees have complied with the duty under section 17(5) of the Charities Act 2011 to have regard to the Charity Commission's guidance on public benefit. In particular, in deciding on the award of grants, the Trustees consider inter-alia information available to the Archbishops' Council on diocesan resources, clergy numbers and areas of deprivation. This process enables the Trustees to make grants to dioceses in support of the Trust's charitable objectives and the Trustees are satisfied that in awarding their grants, the Charity is fulfilling its fundamental objects and so providing public benefit.
Financial review
Reserves
As shown in the Statement of Financial Position on page 8, the vast majority of the Trust's funds are represented by its fixed assets, mainly investments. The Trust relies completely upon return generated from these investments to fund its charitable expenditure. It is the Trustees policy to control its investments and charitable expenditure so as to provide a stable base for the charity's continuing activities while at the same time ensuring excessive funds are not accumulated.
Investment policy
The Trust's investments are managed on a discretionary basis by the Investment Managers listed on page 1. A formal review is carried out on an annual basis, whilst the Trustees receive regular valuations and details of any transactions.
The primary objective of the investment policy is to achieve a total return of both capital and income that will allow the Trustees to maintain and grow over time their support of the Trust's beneficiaries. The Trustees are looking to distribute approximately 3.75% of the value of the fund as at 5 April 2013 adjusted for inflation. The distribution policy will be reviewed annually in view of current market conditions and inflation.
The Trustees as far as practical adhere to the ethical investment policy developed by the Church of England's Ethical Investment Advisory Group.
Risk review
The Trustees have reviewed the major risks to which the charity is exposed. The Trustees consider volatility and the security of investments to constitute the charity's major risk and are satisfied that systems are in place to mitigate the Charity's exposure thereto.
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Church of England Clergy Stipend Trust
Trustees' Annual Report (continued)
Year ended 31 March 2021
The trustees' annual report was approved on 9 November 2021 and signed on behalf of the board of trustees by:
Mr J C G Trower Trustee
The Ven L J Miller Trustee
Revd D N C Houlding Mr R Holroyd Trustee Trustee
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Church of England Clergy Stipend Trust
Independent Examiner's Report to the Trustees of Church of England Clergy Stipend Trust
Year ended 31 March 2021
I report to the trustees on my examination of the financial statements of Church of England Clergy Stipend Trust ('the Charity') for the period ended 31 March 2021.
Responsibilities and basis of report
As the trustees of the Charity you are responsible for the preparation of the financial statements in accordance with the requirements of the Charities Act 2011 (‘the Act’).
I report in respect of my examination of the Charity's financial statements 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:
-
accounting records were not kept in respect of the Charity as required by section 130 of the Act; or
-
the financial statements do not accord with those records; or
-
the financial statements 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.
Christopher Bailey ACA Independent Examiner
Christopher Bailey Accountants (Oldham) Limited Chartered Accountants County End Business Centre Jackson Street Springhead Oldham Lancashire OL4 4TZ
9 November 2021
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Church of England Clergy Stipend Trust
Statement of Financial Activities
Year ended 31 March 2021
| Year to 31 | ||||
|---|---|---|---|---|
| Year to 31 | Mar 2021 | Mar 2020 | ||
| Unrestricted | ||||
| funds | Total funds | Total funds | ||
| Note | £ | £ | £ | |
| Income and endowments | ||||
| Investment income | 4 | 71,314 | 71,314 | 85,650 |
| ---------------------------- | ---------------------------- | ---------------------------- | ||
| Total income | 71,314 | 71,314 | 85,650 | |
| ============================ | ============================ | ============================ | ||
| Expenditure | ||||
| Expenditure on raising funds: | ||||
| Investment management costs | 5 | 16,577 | 16,577 | 15,013 |
| Expenditure on charitable activities | 6,7 | 119,491 | 119,491 | 118,616 |
| -------------------------------- | -------------------------------- | -------------------------------- | ||
| Total expenditure | 136,068 | 136,068 | 133,629 | |
| ================================ | ================================ | ================================ | ||
| Net gains/(losses) on investments | 10 | 659,621 | 659,621 | (265,796) |
| -------------------------------- | -------------------------------- | -------------------------------- | ||
| Net income/expenditure and net movement in funds | 594,867 | 594,867 | (313,775) | |
| ================================ | ================================ | ================================ | ||
| Reconciliation of funds | ||||
| Total funds brought forward | 2,907,825 | 2,907,825 | 3,221,600 | |
| ----------------------------------------- | ----------------------------------------- | ----------------------------------------- | ||
| Total funds carried forward | 3,502,692 | 3,502,692 | 2,907,825 | |
| ========================================= | ========================================= | ========================================= |
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
The notes on pages 9 to 14 form part of these financial statements.
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Church of England Clergy Stipend Trust
Statement of Financial Position
31 March 2021
| 31 | Mar | 2020 | 31 Mar 2019 | ||
|---|---|---|---|---|---|
| Note | £ | £ | £ | ||
| Fixed assets | |||||
| Investments | 13 | 3,477,328 | 2,793,453 | ||
| Current assets | |||||
| Debtors | 14 | - | 3,203 | ||
| Cash at bank and in hand | 32,070 | 116,817 | |||
| ---------------------------- | ---------------------------- | ||||
| 32,070 | 120,020 | ||||
| Creditors: amounts falling due within one year | 15 | 6,706 | 5,648 | ||
| ---------------------------- | ---------------------------- | ||||
| Net current assets | 25,364 | 114,372 | |||
| ----------------------------------------- | ----------------------------------------- | ||||
| Total assets less current liabilities | 3,502,692 | 2,907,825 | |||
| ========================================= | ========================================= | ||||
| Funds of the charity | |||||
| Unrestricted funds | 3,502,692 | 2,907,825 | |||
| ----------------------------------------- | ----------------------------------------- | ||||
| Total charity funds | 16 | 3,502,692 | 2,907,825 | ||
| ========================================= | ========================================= |
These financial statements were approved by the board of trustees and authorised for issue on 9 November 2021, and are signed on behalf of the board by:
Mr J C G Trower The Ven L J Miller Trustee Trustee Revd D N C Houlding Mr R Holroyd Trustee Trustee
The notes on pages 9 to 14 form part of these financial statements.
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Church of England Clergy Stipend Trust
Notes to the Financial Statements
Year ended 31 March 2021
1. General information
The Charity is a public benefit entity and a registered charity in England and Wales and is unincorporated. The address of the principal office is 271 South Lambert Road, London, SW8 1UH.
2. Statement of compliance
These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland', the 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) (Charities SORP (FRS 102)) and the Charities Act 2011.
3. Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through income or expenditure.
The financial statements are prepared in sterling, which is the functional currency of the entity.
Going concern
There are no material uncertainties about the charity's ability to continue.
Disclosure exemptions
The entity satisfies the criteria of being a qualifying entity as defined in FRS 102. As such, advantage has been taken of the following disclosure exemptions available under paragraph 1.12 of FRS 102:
(a) No cash flow statement has been presented for the company.
(b) Disclosures in respect of financial instruments have not been presented.
Judgements and key sources of estimation uncertainty
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
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Church of England Clergy Stipend Trust
Notes to the Financial Statements (continued)
Year ended 31 March 2021
3. Accounting policies (continued)
Fund accounting
Unrestricted funds are available for use at the discretion of the trustees to further any of the charity's purposes.
Designated funds are unrestricted funds earmarked by the trustees for particular future project or commitment.
Restricted funds are subjected to restrictions on their expenditure declared by the donor or through the terms of an appeal, and fall into one of two sub-classes: restricted income funds or endowment funds.
Incoming resources
All income is included in the statement of financial activities when entitlement has passed to the charity, it is probable that the economic benefits associated with the transaction will flow to the charity and the amount can be reliably measured.
Resources expended
Expenditure is recognised on an accruals basis as a liability is incurred. Expenditure includes any VAT which cannot be fully recovered, and is classified under headings of the statement of financial activities to which it relates:
- expenditure on charitable activities includes all costs incurred by a charity in undertaking activities that further its charitable aims for the benefit of its beneficiaries, including those support costs and costs relating to the governance of the charity apportioned to charitable activities.
All costs are allocated to expenditure categories reflecting the use of the resource. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs are apportioned between the activities they contribute to on a reasonable, justifiable and consistent basis.
Investments
Listed investments are measured at fair value with changes in fair value being recognised in income or expenditure.
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Church of England Clergy Stipend Trust
Notes to the Financial Statements (continued)
Year ended 31 March 2021
3. Accounting policies (continued)
Financial instruments
A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument.
Basic financial instruments are initially recognised at the amount receivable or payable including any related transaction costs, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.
Current assets and current liabilities are subsequently measured at the cash or other consideration expected to be paid or received and not discounted.
Where investments in shares or preference shares are publicly traded or their fair value can otherwise be measured reliably, the investment is subsequently measured at fair value with changes in fair value recognised in income and expenditure. All other such investments are subsequently measured at cost less impairment.
4. Investment income
| Unrestricted | Total Funds | Unrestricted | Total Funds | |
|---|---|---|---|---|
| Funds | 2021 | Funds | 2020 | |
| £ | £ | £ | £ | |
| Income from UK equities and UK fixed | ||||
| interest securities | 17,952 | 17,952 | 27,384 | 27,384 |
| Income from UK investment trusts | 4,677 | 4,677 | 3,692 | 3,692 |
| Income from overseas investments | 187 | 187 | - | - |
| Income from collectives | 48,391 | 48,391 | 54,108 | 54,108 |
| Bank deposit interest receivable | 107 | 107 | 466 | 466 |
| ---------------------------- | ---------------------------- | ---------------------------- | ---------------------------- | |
| 71,314 | 71,314 | 85,650 | 85,650 | |
| ============================ | ============================ | ============================ | ============================ |
5. Investment management costs
| Unrestricted | Total Funds | Unrestricted | Total Funds | |
|---|---|---|---|---|
| Funds | 2020 | Funds | 2019 | |
| £ | £ | £ | £ | |
| Portfolio management | 16,577 | 16,577 | 15,013 | 15,013 |
| ============================ | ============================ | ============================ | ============================ |
6. Expenditure on charitable activities by fund type
| Unrestricted | Total Funds | Unrestricted | Total Funds | |
|---|---|---|---|---|
| Funds | 2020 | Funds | 2019 | |
| £ | £ | £ | £ | |
| Grant funding activities | 115,800 | 115,800 | 115,000 | 115,000 |
| Support costs | 3,691 | 3,691 | 3,616 | 3,616 |
| -------------------------------- | -------------------------------- | -------------------------------- | -------------------------------- | |
| 119,491 | 119,491 | 118,616 | 118,616 | |
| ================================ | ================================ | ================================ | ================================ |
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Church of England Clergy Stipend Trust
Notes to the Financial Statements (continued)
Year ended 31 March 2021
7. Expenditure on charitable activities by activity type
| Grant funding | Support |
Total funds | Total fund | ||
|---|---|---|---|---|---|
| of activities | costs | 2021 | 2020 | ||
| £ | £ | £ | £ | ||
| Grant funding activities | 115,800 | 1,291 | 117,091 | 116,516 | |
| Governance costs | – | 2,400 | 2,400 | 2,100 | |
| -------------------------------- | ----------------------- | -------------------------------- | -------------------------------- | ||
| 115,800 | 3,691 | 119,491 | 118,616 | ||
| ================================ | ======================= | ================================ | ================================ | ||
| 8. | Analysis of support costs | ||||
| Grant funding | |||||
| activities | Total 2021 | Total 2020 | |||
| £ | £ | £ | |||
| Secretarial services | 1,200 | 1,200 | 1,200 | ||
| Trustees' expenses | - | - | 233 | ||
| Bank charges | 91 | 91 | 83 | ||
| Portfolio monitoring service | - | - | - | ||
| ----------------------- | ----------------------- | ----------------------- | |||
| 1,291 | 1,291 | 1,516 | |||
| ======================= | ======================= | ======================= | |||
| 9. | Analysis of grants | ||||
| Year to | Year to | ||||
| 31 Mar 21 | 31 Mar 20 | ||||
| £ | £ | ||||
| Grants to institutions | |||||
| Grants to Diocesan Boards of Finance | 115,800 | 115,000 | |||
| -------------------------------- | -------------------------------- | ||||
| Total grants | 115,800 | 115,000 | |||
| ================================ | ================================ | ||||
| 10. | Net (losses)/gains on investments | ||||
| Unrestricted | Total Funds |
Unrestricted | Total Funds | ||
| Funds | 2021 | Funds | 2020 | ||
| £ | £ | £ | £ | ||
| Gains/(losses) on other investment | |||||
| assets | 659,621 | 659,621 | (265,796) | (265,796) | |
| ============================ | ============================ | ================================ | ================================ | ||
| Independent examination fees | |||||
| Year to | Year to | ||||
| 31 Mar 21 | 31 Mar 20 | ||||
| £ | £ | ||||
| Fees payable to the independent examiner for: | |||||
| Independent examination of the financial statements | 2,400 | 2,100 | |||
| ======================= | ======================= |
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Church of England Clergy Stipend Trust
Notes to the Financial Statements (continued)
Year ended 31 March 2021
12. Trustee remuneration and expenses
No remuneration or other benefits from employment with the charity or a related entity were received by the trustees (2020: £Nil).
13. Investments
| Listed | |
|---|---|
| investments | |
| £ | |
| Cost or valuation | |
| At 1 April 2020 | 2,793,453 |
| Additions | 413,521 |
| Disposals | (389,267) |
| Other movements | 659,621 |
| ----------------------------------------- | |
| At 31 March 2021 | 3,477,328 |
| ========================================= | |
| Impairment | |
| At 1 April 2020 and 31 March 2021 | - |
| Carrying amount | |
| At 31 March 2021 | 3,477,328 |
| ========================================= | |
| At 1 April 2020 | 2,793,453 |
| ========================================= |
All investments shown above are held at valuation.
Listed investments
The aggregate market value of listed investments is £3,477,328 (2020: £2,793,453).
Financial assets held at fair value
All financial assets held at fair value are valued by the company's investment managers at market value, using the appropriate middle price for each asset held at 31 March 2021.
14. Debtors
| 31 Mar | 21 | 1 Apr 20 | ||
|---|---|---|---|---|
| £ | £ | |||
| Other debtors | - | 2,721 | ||
| ======================= | ======================= | |||
| 15. | Creditors: amounts falling due within one year | |||
| 31 Mar | 21 | 1 Apr 20 | ||
| £ | £ | |||
| Other creditors | 6,706 | 5,648 | ||
| ======================= | ======================= |
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Church of England Clergy Stipend Trust
Notes to the Financial Statements (continued)
Year ended 31 March 2021
16. Analysis of charitable funds
Unrestricted funds
| Unrestricted funds | ||||||
|---|---|---|---|---|---|---|
| At | Gains and | At 31 March | ||||
| 1 | April 2020 | Income | Expenditure | losses | 2021 | |
| £ | £ | £ | £ | £ | ||
| General funds | 2,907,825 | 71,314 | (136,068) | 659,621 | 3,502,692 | |
| ========================================= | ============================ | ================================ | ============================ | ========================================= |
17. Analysis of net assets between funds
| Unrestricted | Total Funds | Total Funds | |
|---|---|---|---|
| Funds | 2021 | 2020 | |
| £ | £ | £ | |
| Tangible fixed assets | 3,477,328 | 3,477,328 | 2,793,453 |
| Current assets | 32,070 | 32,070 | 120,020 |
| Creditors less than 1 year | (6,706) | (6,706) | (5,648) |
| ----------------------------------------- | ----------------------------------------- | ----------------------------------------- | |
| Net assets | 3,502,692 | 3,502,692 | 2,907,825 |
| ========================================= | ========================================= | ========================================= |
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Church of England Clergy Stipend Trust
Notes to the Financial Statements (continued)
Year ended 31 March 2021
18. Grants made out of income
Grants made to the following Diocesan Boards of Finance for augmentation of stipends
| Bath and Wells Birmingham Blackburn Bradford Bristol Canterbury Carlisle Chelmsford Chester Derby Durham Ely Exeter Gloucester Hereford Leeds Leicester Lichfield Lincoln Liverpool London Manchester Newcastle Norwich Oxford Peterborough Portsmouth Representative body of the Church in Wales Rochester Salisbury Sheffield Sodor and Man Southwark Southwell and Nottingham St Albans St Edmundsbury and Ipswich Truro Wakefield Winchester Worcester York Miscellaneous grants |
Year ended 31 March 2021 Total to date 3,700 13,500 305,000 144,400 169,400 14,250 5,600 39,050 64,100 8,300 143,450 10,650 64,700 10,000 370,300 1,800 47,150 5,100 7,000 11,000 146,100 70,900 239,550 7,300 33,900 5,000 346,450 8,400 13,200 316,275 7,100 244,800 6,900 60,850 5,650 4,450 6,000 5,650 2,800 9,400 11,000 262,800 2,400 2,500 7,100 160,900 6,850 11,700 59,350 192,000 2,850 4,150 9,800 314,300 8,497 |
|---|---|
| 115,800 3,919,522 |
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