THE CONGREGATIONAL & GENERAL CHARITABLE TRUST REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
Company Number: 02114948 Charity Number: 297013
THE CONGREGATIONAL & GENERAL CHARITABLE TRUST CONTENTS Year ended 31 December 2020
| Page | Contents |
|---|---|
| 2 | Reference and Administrative details |
| 3 | Chairperson’s Message |
| 4 | Trustees Annual Report |
| 12 | Independent Auditor’s Report |
| 15 | Statement of Financial Activities |
| 16 | Balance Sheet |
| 17 | Statement of cash flows |
| 18 | Notes to the Financial Statements |
1
THE CONGREGATIONAL & GENERAL CHARITABLE TRUST REFERENCE AND ADMINISTRATIVE DETAILS Year ended 31 December 2020
| Council of Management (Trustees) | Reverend Pamela Ward - Chairperson |
|---|---|
| Mr Alastair Forsyth – Vice Chairperson | |
| Miss Margaret Atkinson | |
| Mrs Susan Austin | |
| Reverend David Coote | |
| Dr Christopher Evans | |
| Mr John Holmes | |
| Reverend David Grosch-Miller | |
| Reverend Margaret Tait | |
| Reverend Richard Turnbull | |
| Independent Auditors | Wright Vigar Ltd |
| Chartered Accountants and Statutory Auditors | |
| 15 Newland | |
| Lincoln | |
| LN1 1XG | |
| Bankers | CAF Bank Limited |
| 25 Kings Hill Avenue | |
| Kings Hill | |
| West Malling | |
| Kent | |
| ME19 4JQ | |
| Investment Advisers | Investec Wealth & Investment Management Limited |
| 4thfloor, 3 Wellington Place, | |
| Leeds | |
| LS1 4AP | |
| CCLA Investment Management Limited | |
| Senator House | |
| 85 Queen Victoria Street | |
| London | |
| EC4V 4ET | |
| Registered Office | 15 Newland |
| Lincoln | |
| LN1 1XG | |
| Company Registration Number | 02114948 |
| Charity Registration Number | 297013 |
2
THE CONGREGATIONAL & GENERAL CHARITABLE TRUST CHAIRPERSON'S MESSAGE Yèar ended 31 Detember 2020 2020 has been dominated by the Covid19 pandemic, which has affected all aspects of life. For the Trust, it has meant learning to cope with new technology and having virtual meetings, keeping a close eye on our investments in an unstable financial climate. and dealing with the problems of churches whose projects have been disrupted. Most churches were closed for at least part of the year, and income from rentals and fundraising has been non-existent. Some have had to delay their planned projects, or do less than rhey had hoped and we have received fewer grant application5. In spite of all this, the Trust h35 continued its work of supporting churche5 and congregations by making grants toward5 the capital costs of maintenance, repairs, redevelopment and extensions. After an initial pause, the grant applications continued to arrive, and over the year we have been able to award new grants totalling £576.000 and over 40 ehurches and communities also benefited from £536,000 which was paid to them during 2020. We have been workinB to solicit applications, particularly from URC and Congregational churches, our historic area of interest. We made the decision to increase our level of grant aid, with higher grants for these denominations, in the knowledge that our financial position was strong enough to support such an action. I want to thank the trustees and our very able administrator for their continued hard work in thi5 difficult year, which has enabled the Trust to go on fulfilling its purpose so efficiently and professionally. The charity is in a strong position to go on performing its function through whatever 2021 brings, and into the time when we can all return to some level of normality. The Reverend Pamela Ward Chairperson 3 September 2021
THE CONGREGATIONAL & GENERAL CHARITABLE TRUST TRUSTEES ANNUAL REPORT Year ended 31 December 2020
Introduction
The trustees of The Congregational & General Charitable Trust have pleasure in presenting their Annual Report together with the Financial Statements and Auditors Report of the charitable company for the year ended 31 December 2020. The Annual Report serves the purpose of both a Trustees Report and Directors Report under company law.
OBJECTIVES AND ACTIVITIES
Constitution
The Company is a charitable company limited by guarantee, incorporated on 24 March 1987. The Company was established under a Memorandum of Association which established the objects and powers of the Company and is governed under its Articles of Association.
The directors of the Charitable company (“the Charity”) are its trustees for the purpose of charity law, and constitute the Council of Management in accordance with the Articles of Association.
The details of the trustees who served during the year are included in the Reference and Administrative details on page 2.
Objects of the charity
The charitable company’s principal object is to promote the Christian religion and in particular the United Reformed Church and Congregational denominations and other churches (whether wholly independent or associated with or united with another church or group of churches) which are of the Protestant tradition.
They also have an objective to contribute to the funds of any charitable institutions, associations, funds or objects to carry out any charitable purpose.
Its principal activity continues to be that of helping sustain places of worship and Christian projects by the making of grants. The charitable company also contributes to the funds of other charitable institutions.
The Charity carries out these objectives by making grants to the churches mentioned above to assist their congregations to maintain their places of worship and enable the support of the local communities many of which use the churches associated properties and buildings for various community projects.
Grants agreed go towards supporting the upkeep of the church properties, many of which can be either Grade 1 or 2 listed properties and are expensive to maintain. Assistance with damaged roofs, dry rot and water ingress are regular requests that have been supported. Other areas of support include assistance with disability access, disability toilets, window repairs and lighting and heating issues.
Many of the churches have connected buildings housing community centres which go to support various community groups and small charitable organisations. These can include dementia groups, youth clubs, food banks and breakfast clubs for example. It is also important that these properties are maintained to ensure that these groups can continue to support their local communities.
In setting our objectives and planning the company’s activities, the members of the Council of Management have given consideration to the Charity Commission’s general guidance on public benefit including the guidance “Public Benefit: running a Charity (PB2)” when future activities are being planned and the Grant Policy is reviewed; in the overall furtherance of the Charity’s activities, the public benefit delivery is inherent within this.
4
THE CONGREGATIONAL & GENERAL CHARITABLE TRUST TRUSTEES ANNUAL REPORT Year ended 31 December 2020
OBJECTIVES AND ACTIVITIES (Continued)
Grant making policy
All applications for grants and donations are considered at quarterly meetings of the members of the Council of Management. An established Grant policy is in place and is regularly reviewed to ensure that it is adequate for the Charity to maximise its support of the churches and to achieve its objectives.
The Trust invites applications for grants from Churches by advertising in specialist publications, word of mouth, website promotion and stands at appropriate events. Applicants who have received a grant may not apply again for two years.
There are certain areas that the Trust does not look to support being running costs, solar panels, Organs restoration, and projects costing over £1 million. For full details of exclusions please see the Trust’s website.
The awarded grants are normally drawn down within a two-year agreed time limit or by which time the applicants have raised the total funds that are needed for the project.
The Trust’s grant making policy was established to achieve its objects for the public benefit in promoting the Christian religion [see above Objectives for full details] and in doing so enable the Churches to improve the lives of their congregations and the communities.
This is achieved by maintaining the properties are used for their worship and to improve and/or develop attached or adjoining buildings that are used to support both the Church and the local communities. Details of how to apply for grants, together with the relevant process is available on the Trust’s website together with information about the Trust and examples of some of those that have been supported.
ACHIEVEMENTS AND PERFORMANCE
Review of the Year
Considering what has been an untypical and difficult year because of the pandemic the results show a steady year in terms of both grants made and churches supported. Over 40 Churches have received support totalling £536k with the value of grants awarded this year’s standing at £576k.
Also, considering the volatility seen during the year in the financial markets the bounce back has seen the Trust’s investments not only recover but increase slightly.
Total investments have increased from £16.4m to £17m which is an excellent turnaround considering the fall in investments witnessed at the beginning of the year and net worth has increased from £16.4m to £16.7m after the payment of the £536k grants. There is also currently £795k value of grants to be drawn down over the next two years.
In summary, a difficult but in effect still a relatively successful year that has been managed well by the Trustees who have worked hard to make sure that the assets have been closely monitored and applications processed efficiently.
Our grants continue to reach all parts of the country providing much needed financial assistance for many varied projects. Considering the age of many of the church buildings and community halls much of the funds are used towards repairs, renovations, and modernizations. Common areas of support normally seen are roof repairs, boiler replacement, heating systems, kitchen and toilet upgrades and the improvement of disabled access and facilities.
5
THE CONGREGATIONAL & GENERAL CHARITABLE TRUST TRUSTEES ANNUAL REPORT Year ended 31 December 2020
ACHIEVEMENTS AND PERFORMANCE (Continued)
Review of the Year (continued)
The table below shows just a few of the grants provided this year indicating where funds have been used.
| Christ Church,Erith | Installation of Toilets |
|---|---|
| St Boniface, Quinton | BuildingRefurbishment |
| St Thomas’s,Aldridge | Roof Repairs |
| St Peter’s,Cleasby | Replacement Doors |
| St Augustine’s,Scisset | New HeatingSystem |
| St Andrew’s | Disabled Toilets |
| Sykes Methodist Church | Redevelopment Work |
| Castle Hill URC | Roof & Window Repairs |
| St Martins Church | Small Kitchenette & Disabled Toilets |
Financial Review
The financial statements comply with the Charities Act 2011, the Companies Act 2006, the Memorandum of Articles of Association, 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 (FRS 102) (effective 1 January 2019).
Investment Policy
The charitable company and its trustees seek to invest its funds in fixed interest, equity, and property funds some of which are designed for charities and managed by professional fund managers.
The Charity looks to achieve the best returns available from its investments whilst seeking to maintain a spread of investment types with the intention of reducing the level of exposure to market rates.
In looking to achieve the above the trustees have utilised the services of professional fund managers Investec and CCLA both of which are established and professional fund managers to which the trustees look for guidance and support when managing the charitable company’s investments.
The professional advisors provide monthly and quarterly performance reports and annual meetings are held to review performance, risk, markets, and other economic factors. Additional meetings can be arranged if market uncertainties prevail.
Performance has been satisfactory considering the uncertainties in the investment marketplace and provides the Charity the comfort of knowing it can continue to support the future applications it receives that are able to fulfil its criteria.
With Investec the Trust has a Medium Risk Balanced Investment Strategy with an established net performance benchmark agreed which is reviewed annually. There is an overall benchmark set and separate benchmarks in respect of overall exposure within the various assets held in the portfolio.
The funds that are invested with CCLA are within the Ethical Investment Fund. The aims being to provide a long-term total return comprising growth in capital and distributions. This is an established fund suitable for the charity’s longterm funds aiming to achieve a good level of distributions, long-term protection from inflation together with a wide range of ethical restrictions.
The Trust aims to achieve a return in the region of 3 to 4% pa on the funds invested and consider the performance this year to be good.
6
THE CONGREGATIONAL & GENERAL CHARITABLE TRUST TRUSTEES ANNUAL REPORT Year ended 31 December 2020
ACHIEVEMENTS AND PERFORMANCE (Continued)
Reserves policy
The charitable company’s reserves consist mainly of investments held with its investment managers, Investec and CCLA. Each year the charity aims at least to distribute its net investment income in the financial year in which it is received or in the two following years.
The charitable company looks to ensure it always has sufficient liquid funds to meet the payment of grants when they fall due. Grants are normally drawn within a two-year period otherwise they will lapse. With the levels of cash at bank, within the investments and the agreed future investment income stream this has always been sufficient to cover grants due and the operating overheads.
Total charitable company reserves as at 31 December 2020 were £16,694,227 (2019: £16,430,863) which comprised of free reserves of -£310,291 (2019: £8,179) with no current restrictions or designations inherent or applied. The remaining reserves, totalling £17,004,518 (2019: £16,422,684) are tied up in investments but these also have no current restrictions or designations inherent or applied.
Risk management
The Council of Management actively review the major risks which the charitable company faces. They believe the controls and systems in place can adequately deal with risks which the charity is likely to face in the near future. The Council of Management have a risk management strategy which comprises:
-
An annual review of the risks the Charity may face;
-
The establishment of systems and procedures to mitigate those risks identified; and
-
The implementation of procedures designed to minimise any potential impact on the Charity should those risks materialise.
The primary market risks in the charitable company’s investment portfolio is the fair value sensitivity of fixed-income securities to changes in interest rates, and risks associated with investments in listed equity shares. Risk appetite is set by The Council of Management and then managed through the investment portfolio managers.
Further information on the Charity’s investment policy can be found above. The Charity’s transactions are all in pounds sterling and therefore there is no exposure to a movement in exchange rates. However, some of the Charity’s investments have underlying overseas assets and are therefore subject to fluctuations in value resulting from movements in exchange rates.
Future developments
As a grant making charity all developments are focused upon maximising the number of churches and communities that benefit from the Charity’s efforts. The profile of the Charity continues to be an area where efforts are being made in order to reach out to the Churches needing help. The Trust will again advertise in the appropriate publications like the previous year and look to expand this further where possible. Attendance at various forums is also being researched and attendance at these will be considered by the Trustees. New marketing material is now available, and development of the website is continuing.
Impact of Coronavirus
The Trustees and its advisors have monitored the situation closely but considering the reserves held it was always intended to continue our support as planned. However, there was always going to be uncertainties surrounding application numbers and investment performance which has had to be managed accordingly.
The impact of Covid-19 has been twofold. Firstly, the possible damaging impact upon the value of the investments held by the Trust and secondly the impact upon the various aspects of the grants.
It is in this second area that Covid -19 has been possibly more wide reaching in that it has influenced the trust generally, the churches with already agreed applications, those churches with new applications and finally those churches that are possibly yet to submit future applications.
7
THE CONGREGATIONAL & GENERAL CHARITABLE TRUST TRUSTEES ANNUAL REPORT Year ended 31 December 2020
ACHIEVEMENTS AND PERFORMANCE (Continued)
Impact of Coronavirus (Continued)
Investments – initially the market became very volatile which significantly reduced the portfolio value and obvious discussions have been held with advisors regarding the matter. It helps that the Charity’s investment vehicles are well spread. The charity’s funds are managed by professional advisors in Investec with the remaining funds held in an Ethical fund again managed by CCLA.
The accounts show a good recovery in the Charity’s Investment funds by the year end, resulting in an actual increase in the Charity’s net worth of £236k. The last 5 years has been a period of ups and downs on the financial markets with the charity’s fund being impacted accordingly and the impacts of Covid-19 is another one the Trust has had to weather.
Grants – The Trust receives grant requests from Churches of the United Reformed Church and Congregational denominations and other churches which are of the Protestant tradition. The lock downs and isolation protocols has had a significant impact on how these Churches have operated and in turn will possibly have had an impact upon the flow of grants being received.
The Trust fully understood the pressures experienced by the Churches and communities. Much depends on the individual’s churches for how badly they will have been impacted by Covid-19 with pressure on income streams internally affecting the strength of these organisations. There will be the impact from the congregational giving as services will have been cancelled hopefully replaced to a certain degree by direct giving.
For those churches with associated community centres and possible rental buildings then the income streams from group occupancy or tenant rental income will also have been impacted.
For the grants that had previously been agreed completing the project may have been delayed because of the various restriction’s but as these restrictions changed then the work was able to either start, continue, or be completed. In some cases, lockdown assisted projects as it allowed tradesman sole access to the buildings which were temporarily out of use and vacant.
The Trust continued to receive grant applications throughout the year partly for projects that had already been planned before Covid-19 issues started and these were dealt with under the trust’s normal application procedures. The full impact on the level of applications being received is difficult to calculate albeit we continue to see a steady stream coming through that are being dealt with. It is hoped that as we gradually return to some level of normality going forward that an increase in these may result.
Some specific internal marketing to the various organisations has already been undertaken by the trustees and early signs are that this should assist with the application numbers.
The Trustees also understood the financial implications of trying to obtain grants because of the Covid-19 issues and have agreed to increase the percentage of grant awarded to the successful applications and altered its grant policy accordingly.
STRUCTURE, GOVERNANCE AND MANAGEMENT
Organisation Structure
The trustees consider the Board of Trustees as the key management personnel of the charitable company who are all members of The Council of Management shown on page 2. The charitable company is currently run by ten trustees who meet on a quarterly basis to consider the grant applications received. The trustees have individual responsibility for various aspects of the running of the charitable company including reviewing and presenting grant applications, the production of financial information, the organisation of the charitable company’s banking arrangements and development and management of the Charity’s web site.
8
THE CONGREGATIONAL & GENERAL CHARITABLE TRUST TRUSTEES ANNUAL REPORT Year ended 31 December 2020
STRUCTURE, GOVERNANCE AND MANAGEMENT (Continued)
Organisation Structure (Continued)
There is also the support of a paid administrator to assist with the day to day management of the Charity assisting the trustees with the clerical aspects of running the Charity particularly with managing the grant applications received and also ensuring the charitable company complies with the appropriate regulations.
The trustees are proactively seeking to add to the Council of Management with new trustees who have the required skills, commitment and time to support the ongoing work the Charity does.
Recruitment and appointment of members of council
The Members of The Council Management who served during the year and up to the date the accounts were signed were:
| Reverend Pamela Ward | - Chairperson | Appointed | 03/10/2013 |
|---|---|---|---|
| Mr Alastair Forsyth | - Vice Chairperson | Appointed | 05/06/2018 |
| Miss Margaret Atkinson | Appointed | 30/09/2009 | |
| Mrs Susan Austin | Appointed | 26/06/2019 | |
| Reverend David Coote | Appointed | 13/06/2017 | |
| Dr Christopher Evans | Appointed | 26/06/2019 | |
| Mr John Holmes | Appointed | 08/03/2016 | |
| Reverend David Grosch-Miller | Appointed | 01/10/2019 | |
| Reverend Margaret Tait | Appointed | 05/10/2017 | |
| Reverend Richard Turnbull | Appointed | 26/09/2018 |
Rotation of Members of the Council
Under the requirements of the Memorandum and Articles of Association, membership of the charitable company is subject to certain restrictions. These are that a member shall be a member of a United Reformed Church, Congregational Church or other church of the Protestant tradition provided not more than three or 25% of the total, whichever is the lesser (who are not members of the aforementioned Churches) may be individuals who shall agree in writing to accept the objects of the charitable company.
At the Annual General Meeting in every year, one third of the members of the Council of Management for the time being, or, if their number is not three or a multiple of three, then the number nearest one third, shall retire from office. Those members of Council retiring through this rotation are eligible for re-election at the AGM.
The members of the Council of Management retiring by rotation this year are The Reverend Pamela Ward, Ms Margaret Atkinson and Mr John Holmes and being eligible, offer themselves for re-election.
The Members of the Council of Management have the power to appoint additional members as it considers fit to do so. Due to the nature of the company’s charitable status and its source of income, the Council of Management seek to ensure that the objectives of the charitable company are achievable through the diversity of skills of the trustees composition.
Members of the Council of Management Induction and Training
New members of the Council of Management will undergo an induction meeting with the Chairperson of the charitable company, which includes a brief of the following:
-
Their legal obligations under Charity and Company Law;
-
The main documents which set out the operational framework for the charitable company including the Memorandum and Articles;
-
Resourcing and the current financial position as set out in the latest published accounts;
-
Future plans and objectives.
9
THE CONGREGATIONAL & GENERAL CHARITABLE TRUST TRUSTEES ANNUAL REPORT Year ended 31 December 2020
STRUCTURE, GOVERNANCE AND MANAGEMENT (Continued)
Members of the Council of Management Induction and Training (Continued)
New members of the Council of Management are also provided with the appropriate Charity Commission publications, including the Commission’s guide “The Essential Trustee” and “Charity Finances: Trustee Essentials”, and these are distributed to all new members of the Council of Management along with the Memorandum and Articles and the latest financial statements.
New members of the Council of Management are also required to complete a questionnaire which assesses their fitness for purpose as a member of the Council of Management and sign the Charities Commission usual declaration of suitability to be a trustee.
Trustees Expenses Policy
The trustees are unpaid volunteers and are reimbursed for the expenses incurred in respect of travel to and from the quarterly meetings and any administration costs that may be incurred.
10
THE CONGREGATIONAL & GENERAL CHARITABLE TRUST TRUSTEES ANNUALREPORT Year ended 31 December 2020 STATEMENT OF TRusfEES' RESPONSIBILITIES The charity trustees (who are 3150 directors of The Congregational & General Charitable Trust for the purposes of cornpany lawl are responsible for preparing a trustees, Annual Report and financial Statements in accordance with applicable law and United Kingdom Accounting Standards Iunited Kingdom Generally Accepted Accounting Practice). Company law requires the charity trustees to prepare financial statements ftsr eath year which give a true and fair view of the state of affairs of the charitable company and the group and of the incoming resources and application of resources, including the income and expenditure, of the charitable 8roup for that period. In preparing the financial statements, the trustee5 are required to.. select suitable accounting policies and then apply thern consistÈntly.' observe the methods and principles in the Charities SORP,. make judgements and estimates that are reasonable and prudent., state whether applicable UK Accounting Standards have been followed. subject to any material depaitUTèS disclosed and explained in the financial statements- prepare the financial statement5 on the goin8 ¢on¢ern basis unless it is inappropriate to presume that the charity will continue in business. The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence taking reasonable steps for the prevention and detection of fraud and other irregularities. The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial sratements may differ from legislation in other jurisdictlons. Statement as to disclosure to our Audltor In so far as each of the trustee5 are aware of at the time of approving our trustees. annual report". there is no relevant inf(>rmation, being information needed by the auditor in connection with preparing their report, of which the group's auditor is unaware, and the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information. In accordance with section 485 of the Companies Act 2006. Wright Vi8ar Limited will be deemed to be reappointed as èuditors at the Annual General Meeting. The Trustees Report was approved and authorised for Issue by the Council of Management on 3 September 2021. The Reverend Pamèla Ward Chairperson li
THE CONGREGATIONAL & GENERAL CHARITABLE TRUST INDEPENDENT AUDITOR’S REPORT ON THE FINANCIAL STATEMENTS TO THE BOARD OF TRUSTEES OF THE CONGREGATIONAL & GENERAL CHARITABLE TRUST
Opinion
We have audited the financial statements of The Congregational & General Charitable Trust (the ‘charitable company’) for the year ended 31 December 2020 which comprise the statement of financial activities, balance sheet, cash flow statement and notes to the financial statements. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
-
give a true and fair view of the state of the charitable company’s affairs as at 31 December 2020, and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;
-
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-
have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
Other information
The trustees are responsible for the other information. The other information comprises the information included in the trustees’ annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
12
THE CONGREGATIONAL & GENERAL CHARITABLE TRUST INDEPENDENT AUDITOR’S REPORT ON THE FINANCIAL STATEMENTS TO THE BOARD OF TRUSTEES OF THE CONGREGATIONAL & GENERAL CHARITABLE TRUST
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
-
the information given in the trustees’ report (incorporating the directors’ report) for the financial year for which the financial statements are prepared is consistent with the financial statements; and
-
the Report of the Trustees has been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of our knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the directors’ report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
-
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
-
the financial statements are not in agreement with the accounting records and returns; or
-
certain disclosures of directors’ remuneration specified by law are not made; or
-
we have not received all the information and explanations we require for our audit; or
-
the trustees were not entitled to prepare the financial statements in accordance with the small companies’ regime and take advantage of the small companies’ exemptions in preparing the directors’ report and from the requirement to prepare a strategic report.
Responsibilities of trustees
As explained more fully in the trustees’ responsibilities statement set out on page 11, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
13
THE CONGREGATIONAL & GENERAL CHARITABLE TRUST INDEPENDENT AUDITOR’S REPORT ON THE FINANCIAL STATEMENTS TO THE BOARD OF TRUSTEES OF THE CONGREGATIONAL & GENERAL CHARITABLE TRUST
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
Our work is performed to include an assessment of the susceptibility of the entity's financial statements to material misstatement, including the risk of fraud. We plan our work to gain an understanding of the significant laws and regulations that are of significance to the entity and perform our work to ensure that the entity is complying with its legal and regulatory framework.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
Use of our report
This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
Paul Colcomb FCCA (Senior Statutory Auditor)
For and on behalf of Wright Vigar Limited Chartered Accountants and Statutory Auditor 15 Newland
Lincoln Lincolnshire LN1 1XG
3 September 2021
14
THE CONGREGATIONAL & GENERAL CHARITABLE TRUST STATEMENT OF FINANCIAL ACTIVITIES For the year ended 31 December 2020
| Unrestricted Funds £ Incoming resources Notes Income and endowments from: Investment income 3 472,323 Total income 472,323 Expenditure on: Raising funds Charitable activities 6 7 43,061 535,942 Total expenditure 579,003 Net gains/(losses) on investments 9 370,044 Net income/(expenditure) Fund balances brought forward at 1 Jan 2020 263,364 16,430,863 Fund balances carried forward 31 Dec 2020 16,694,227 |
Total 2020 £ 472,323 472,323 43,061 535,942 579,003 370,044 263,364 16,430,863 16,694,227 |
Total 2019 £ 543,149 |
|---|---|---|
| 543,149 | ||
| 42,883 621,045 |
||
| 663,928 | ||
| 2,010,882 | ||
| 1,890,103 14,540,760 |
||
| 16,430,863 |
All transactions are derived from continuing activities.
The notes on pages 18 to 22 form part of these financial statements.
15
THE CONGREGATIONAL & GENERAL CHARITABLE TRUST BALANCE SHEET AS AT 31 DECEMBER 2020 COMPANY NUMBER 02114948 2020 2019 Notes Fixed assets Investments 17,004,518 17.004,518 16,422,684 16.422,684 Current assets Debtors Cash at bank and In hand io 22,763 462,263 485.026 26,058 675,183 701,241 Creditors,. amount5 falling due within one year li 795,317 693,062 Nèt turrent 0$5ets/lllabllitlesl 1310,2911 8,179 Total net assets 16,694,227 16,430,863 The funds of the Charity: Unrestricted funds 16,694.227 16,430.863 Total Charity funds 16.694,227 16,430,863 These financial statements have been prepared in accordanee with the special provision5 of the Companies Act 2006 relatlng to charitable small companies. The financial statements were approved by the Council of Management on 3 September 2021 and signed on their behalf. The notès on pa8es 18 to 22 form part of these financial stètements. [ CLLXQ L bJ',a, The Reverend Pamela Ward Chairperson John F Holmes Trustee 16
THE CONGREGATIONAL & GENERAL CHARITABLE TRUST STATEMENT OF CASH FLOWS Year ended 31 December 2020
| Total 2020 £ Notes Cash flows from operating activities: Net cash used by operating activities 1 (473,454) (473,454) Cash flows from investing activities: Dividends, interest and rents from investments Proceeds from sale of investments Purchase of investments 472,323 1,040,446 (1,220,485) Net cash flows provided by investing activities 292,376 Change in net cash and cash equivalents in the reporting period (181,170) Cash and cash equivalents brought forward 814,435 Cash and cash equivalents carried forward 2 633,265 1. Reconciliation of income/(expenditure) to net cash flow from operating activities: Net Income/(Expenditure) for the period 263,364 Adjustments for: (Gains)/loss on investments (370,044) (Increase)/decrease in debtors 3,295 Increase/(decrease in creditors) 102,254 Dividends and interest from investing activities (472,323) (473,454) 2020 2. Cash and Cash Equivalents £ Cash at bank or in hand 462,263 Cash in investment portfolios 171,002 633,265 |
Total 2019 £ (454,432) (454,432) 543,149 464,890 (667,041) 340,998 (113,434) 927,869 814,435 1,890,103 (2,010,882) (6,310) 215,806 (543,149) |
|---|---|
| (454,432) | |
| 2019 £ 675,183 139,252 |
|
| 814,435 |
17
THE CONGREGATIONAL & GENERAL CHARITABLE TRUST NOTES TO THE FINANCIAL STATEMENTS Year ended 31 December 2020
1. STATUTORY INFORMATION
The Congregational & General Charitable Trust is a Charitable Company, registered in England and Wales. The charitable company’s registered number and registered office can be found on the Reference and Administrative details page.
2. ACCOUNTING POLICIES
The principle accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are as follows:
Basis of preparation
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) (effective 1 January 2019) – (Charities SORP FRS 102), and the Companies Act 2006.
The Charity meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s).
Going concern
The current economic conditions present increased risks for all charities. In response to such uncertain conditions, the Trustees have carefully considered these risks and the extent to which they might affect the preparation of the financial statements on a going concern basis. In particular, the Trustees have considered in detail the charitable company's forecast performance and the valuation of its investments. The charitable company’s principal assets are the investments held by Investec and CCLA, and the income generated from these investments is significantly higher than the charitable company’s expenses. On this basis, the Trustees have a reasonable expectation that the charitable company will maintain adequate solvency to continue in operational existence for the foreseeable future. Accordingly, the Trustees have adopted the going concern basis in preparing these financial statements.
Charitable status
The Charity is a company limited by guarantee. The members of the company include the Trustees named on page 2. In the event of the charitable company being wound up, the liability in respect of the guarantee is limited to £1 per member of the charitable company.
Income recognition
Investment income includes interest receivable and dividends. Realised and unrealised investment gains and losses are included within net gains and losses on investments in the Statement of Financial Activities. Due to the uncertainty on the valuation, income from investments is recognised upon receipt.
All income is recognised once the Charity has entitlement to income, it is probable that income will be received, and the amount of income receivable can be measured reliably.
18
THE CONGREGATIONAL & GENERAL CHARITABLE TRUST NOTES TO THE FINANCIAL STATEMENTS Year ended 31 December 2020
2. ACCOUNTING POLICIES (continued)
Resources expended
Liabilities are recognised as expenditure as soon as there is legal or constructive obligation committing the Charity to that expenditure, it is probable that settlement will be required, and the amount of obligation can be measured reliably.
Expenditure is recognised on an accruals basis as a liability is incurred, inclusive of VAT, which cannot be recovered.
Expenditure on raising funds comprises wholly of investment management fees charged to the Charity.
Charitable activities comprise mainly of grants given to individuals or organisations in accordance with the grant making policy.
Grants payable are payments made to third parties. Single or multi-year grants are accounted for when the Trustees have agreed to pay the grant without condition.
Support costs have been allocated between governance costs and other support costs. Governance activities comprise organisational administration and compliance with constitutional and statutory requirements. Costs include direct costs of external audit, legal fees and other professional advice including legal fees relating to certain smaller trusts.
The allocation of support costs is analysed in note 8.
Investments
Investments are a form of basic financial instruments and are initially shown in the financial statements at market value. Movements in the market values of investments are shown as unrealised gains and losses in the Statement of Financial Activities.
Profits and losses on the realisation of investments are shown as realised gains and losses in the Statement of Financial Activities. Realised gains and losses on investments are calculated between sales proceeds and their opening carrying values or their purchase value if acquired subsequent to the first day of the financial year. Unrealised gains and losses are calculated as the difference between the fair value at the year end and their carrying value. Realised and unrealised investment gains and losses are combined in the Statement of Financial Activities.
Creditors and provisions
Creditors and provisions are recognised where the Charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.
3. Analysis of income
| Unrestricted Funds £ Income and endowments from: Investment income (including dividends) Bank interest 471,852 471 472,323 |
Total 2020 £ 471,852 471 472,323 |
Total 2019 £ 542,058 1,091 |
|---|---|---|
| 543,149 |
19
THE CONGREGATIONAL & GENERAL CHARITABLE TRUST NOTES TO THE FINANCIAL STATEMENTS Year ended 31 December 2020
4. Net incoming resources for the year stated after charging;
| Auditor’s remuneration: Audit services Other services |
2020 £ 4,350 90 4,440 |
2019 £ 3,760 90 |
|---|---|---|
| 3,850 |
Auditor’s remuneration for audit services comprises fees payable for the audit of the charitable company’s accounts. Other services are fees payable for accountancy, company secretarial and other services.
5. Analysis of staff costs, Trustee remuneration and expenses and the cost of Key Management Personnel
The Charity has no employees. The Key Management Personnel of the charitable company are the Council of Management (Trustees) listed on page 2. The members of the Council of Management did not receive any remuneration during the financial year in accordance with the provisions of the Charity’s Governing document. However, during 2020, expenses with a total of £525 (2019: £1,643) were reimbursed to ten trustees (2019: Eleven) which were in respect of travel and subsistence expenditure costs incurred.
6. Analysis of expenditure on raising funds
Investment management costs
| Investment management costs Portfolio management |
2020 £ 43,061 43,061 |
2019 £ 42,883 |
|---|---|---|
| 42,883 |
7. Analysis of expenditure on charitable activities
The Charity undertakes its charitable activities through grant making and awarded grants to a number of Christian projects and charitable institutions during the financial period wholly in accordance with its charitable objects. All charitable expenditure was fulfilled by unrestricted reserves.
| Charitable | Support | Total | Total | |
|---|---|---|---|---|
| Grants | costs | 2020 | 2019 | |
| £ | £ | £ | £ | |
| Funded from unrestricted funds: | ||||
| Charitable grants fulfilling charitable activities | 523,200 | 12,742 | 535,942 | 621,045 |
20
THE CONGREGATIONAL & GENERAL CHARITABLE TRUST NOTES TO THE FINANCIAL STATEMENTS Year ended 31 December 2020
7. Analysis of expenditure on charitable activities (continued)
8.
| Charitable grants expended in the year included the following amounts: Grants awarded Grants lapsed Support costs Administration expenses of the Company are as follows: Other legal and professional fees and expenses Council of Management (trustees) expenses |
2020 £ 12,217 525 12,742 |
Charitable Grants £ 576,300 (53,100) |
|
|---|---|---|---|
| 523,200 | |||
2019 £ 12,802 1,643 |
|||
| 14,445 |
These costs are all directly attributable to the charitable activities of the company.
The Trustees have considered it appropriate to allocate all support costs in their apportionment considerations to the singular charitable activity of the Charity.
9. Investments
| Other financial investments: Listed Equity shares/pooled investment portfolio funds Cash in portfolios Total investments |
2020 £ 16,833,516 16,833,516 171,002 17,004,518 |
2019 £ 16,283,432 |
|---|---|---|
| 16,283,432 139,252 |
||
| 16,422,684 |
Movements in investments (excluding cash) during the year were as follow:
| As at 31 December 2019 Additions Disposals Change in market value (Unrealised gains) Profit on disposal (Realised gains) At 31 December 2020 |
£ 16,283,432 |
|---|---|
| 1,220,485 (1,040,445) 661,524 (291,480) |
|
| 16,833,516 |
21
THE CONGREGATIONAL & GENERAL CHARITABLE TRUST NOTES TO THE FINANCIAL STATEMENTS Year ended 31 December 2020
9. Investments (continued)
The net gains/(losses) on investments which has been recognised on the statement of financial activities comprises of the following transactions:
| Change in market value Gains/losses on disposal of investments 10. Debtors Accrued investment income 11. Creditors; amounts falling due within one year Grants payable Professional fees Other creditors |
2020 £ 22,763 |
2020 £ 661,524 (291,480) 370,044 2019 £ 26,058 26,058 2019 £ 688,300 4,260 502 693,062 |
2020 £ 661,524 (291,480) 370,044 2019 £ 26,058 26,058 2019 £ 688,300 4,260 502 693,062 |
|---|---|---|---|
| 22,763 | 26,058 | ||
| 2020 £ 790,500 4,380 437 |
2019 £ 688,300 4,260 502 |
||
| 795,317 | 693,062 |
12. Funds
All Charity funds are unrestricted in the current and prior year.
13. Related party transactions
Trustees or people connected with the trustees may also be trustees of a church in receipt of a grant from the Trust. Any grant applications involving a Trustee will be dealt with by the remaining unconnected Trustees. The Trustee involved declaring their conflict of interest and taking no part in the application procedure or decision making process.
No grants to related parties were made in the current year.
In the prior year, a grant of £8,300 was made to Bilton Grange URC, an organisation in which Trustee Alastair Forsyth declared an interest. He was therefore not involved in the decision making process.
Also in the prior year, a grant of £3,200 was made to West Melton URC, an organisation in which Trustee David George Coote declared an interest. He was therefore not involved in the decision making process.
14. Corporation tax
The Charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the Charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.
22