SARUM ST MICHAEL EDUCATIONAL CHARITY
REPORT AND FINANCIAL STATEMENTS
YEAR ENDED 31 DECEMBER 2022
CHARITY NO: 309456
CONTENTS
| CONTENTS | |
|---|---|
| Page | |
| 1 | Reference and Administration Information |
| 2 - 6 | Report of the Managing Trustees |
| 7 | Independent Examiner's Report |
| 8 | Statement of Financial Activities |
| 9 | Balance Sheet |
| 10 - 16 | Notes forming part of the financial statements |
| Annex | Comments from beneficiaries |
FLETCHER & PARTNERS CHARTERED ACCOUNTANTS SALISBURY
SARUM ST MICHAEL EDUCATIONAL CHARITY REPORT OF THE MANAGING TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2022
Page 1
The Managing Trustees present this report together with the financial statements of the Charity for the year ended 31 December 2022. The financial statements have been prepared in accordance with the accounting policies set out on pages 10 and 11 and comply with the Charity Commission Order, the Charities Act 2011 and the 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 (FRS102) - Charities SORP (FRS 102).
Registered Charity Number
309456 ( in England and Wales)
Registered Address
Room 2, Suite 1 Second Floor North Cross Keys House 22 Queen Street, Salisbury SP1 1EY
Governors Ex Officio Governors
The Bishop of Salisbury The Right Revd Stephen Lake ( from 19 June 2022) The Acting Bishop of Salisbury The Right Revd Karen Gorham ( to 19 June 2022) The Dean of Salisbury The Very Revd Canon Nicholas Papadopulos The Diocesan Director of Education Mrs J Tubbs The Diocesan Secretary Mr D Pain The Chapter Clerk of Salisbury Cathedral Mrs J Molnar
Nominative Governors
The Very Revd Dr A Knight (Chairman - Retired 10 Salisbury Diocesan Synod February 2022) Revd A Keating (Retired 9 February 2023) Mr J Leigh (Chairman - from 10 February 2022) Salisbury Diocesan Board of Education Mrs J A Pitcher (Vice- Chairman) The Revd Professor E Stuart Mrs D Wood Additional Governors The Revd F J Dunlop Mr R Sykes (Retired 1 September 2022) Mr T Almond (Appointed 10 February 2022) Ms I Deverill (Appointed 9 February 2023)
Clerk to the Governors Mr N R Allen Banker Lloyds Bank plc 38 Blue Boar Row Salisbury Wiltshire SP1 1DB Solicitor Parker Bullen 45 Castle Street Salisbury Wiltshire SP1 3SS Independent Examiner Mrs N A Halls FCA Fletcher & Partners Crown Chambers Bridge Street Salisbury Wiltshire SP1 2LZ Investment Manager Investec Wealth & Investment Limited 2 Gresham Street London EC2V 7QP
SARUM ST MICHAEL EDUCATIONAL CHARITY REPORT OF THE MANAGING TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2022
Page 2
STRUCTURE, GOVERNANCE AND MANAGEMENT
Sarum St Michael Educational Charity is a Registered Charity founded in 1979 and is regulated under the Charity Commission scheme of 24 January 1980. In June 2004 the Charity Commission gave an order to amend the original scheme, allowing the appointment of two additional Governors and another ex-officio Governor.
The Charity is managed by the Managing Trustees (known as Governors) who comprise five ex-officio Governors (as shown on page 1 of this report) and five nominative Governors consisting of three from the Salisbury Diocesan Board of Education and two from the Synod of the Diocese of Salisbury. The Salisbury Diocesan Board of Education is the Custodian Trustee of the Charity.
The Governors may appoint not more than four additional Governors to hold office for a term of two years. Every appointment shall be made by a resolution of the Governors to be passed at a meeting of their body.
The appointment of governors is undertaken after consultation with both the Diocesan Synod and the Salisbury Diocesan Board of Education. The aim is that the Board of Governors should have as wide a breadth of experience as possible to include religious, educational, legal and financial knowledge.
Governors
Before new Governors are appointed they are invited to attend a Governors’ meeting as an observer. In addition they are given a copy of the Charity Commission’s Order for the Charity so that they fully understand the conditions and criteria in the Order that they will have to observe. They also receive a copy of the latest annual report and accounts and investment management report.
Organisation
The Managing Trustees meet four or five times a year to determine grants and other expenditure. They review policy, consider financial statements and receive reports by the investment manager.
At each of the Governors’ meetings personal, parish, school and corporate grant applications are considered and the decision whether or not to award grants and the level of the award is reached with the consensus of the Governors present. There is a quorum when four Governors are present at the meeting.
Day-to-day management of the Charity is delegated to the Clerk to the Governors, assisted by a secretary/bookkeeper. The Chairman of the Governors regularly discusses the management of the Charity with the Clerk.
Page 3
SARUM ST MICHAEL EDUCATIONAL CHARITY REPORT OF THE MANAGING TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2022
(Continued)
Policy on Grant-Making
The Charity pursues its policy by making grants in accordance with its object, normally to those living or studying in the Diocese of Salisbury or an adjoining Diocese, for the public benefit.
Teaching bursaries for students who are intending to specialise in Religious Education (RE) and will take appropriate courses in Primary or Secondary Education are considered every year.
The Charity has its own website and invites applications for grants by that means as well as through other publicity. All applicants must complete a standard form. Grants for persons attending educational establishments are continued only if the applicant remains at that establishment. Grants to institutions to fund specific projects or posts are awarded on condition that for the term of the grant a report on the achievements of the project or post is received each year.
Risk Management
The Charity’s Managing Trustees have considered the risks to which the Charity is exposed and have reviewed those risks and established systems and procedures to manage those risks. The Governors believe that the variability of investment returns constitutes the Charity’s main risk. The Governors appointed the current investment manager in 2012 (Investec Wealth & Investment Ltd) and in 2018 conducted an internal formal review of their performance from January 2013 to December 2017. Governors concluded that this had been satisfactory and plan another review in 2023 of performance in the five years ending December 2022, unless circumstances point to the need for an earlier one.
OBJECTIVES AND ACTIVITIES
The object of the Charity is the advancement of education in accordance with the principles and doctrines of the Church of England in one or more of the following ways:
-
(a) in the promotion of the education and training of persons who are, or intend to become, engaged as teachers or otherwise in work connected with religious education;
-
(b) in the promotion of research in, and development of, religious education;
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(c) in the provision and conduct, or assistance in the provision and conduct, of a chapel and chaplaincy providing for students’ religious worship, instruction and care;
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(d) in the promotion of education by the provision of instruction, classes, lectures, books, libraries and reading rooms;
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(e) in making grants to persons in need of financial assistance to enable them to attend an establishment of higher or further education or otherwise to pursue their education;
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(f) and in such ways as the Governors may from time to time determine.
The Charity pursues its objectives by making grants to individuals and institutions such as universities, schools, parishes and other religious establishments. The Charity is an active member of the Religious Education Council (REC) and the Association of Church College Trusts (ACCT), with the aim of supporting national efforts to promote the cause of religious education.
When planning the activities for the year, the Trustees confirm that they have had regard to the Charity Commission’s guidance on public benefit. The Charity’s aims are entirely consistent with grants being awarded for the public benefit.
The Trustees' aim in 2022 was to allocate grants so that 45% was for personal grants and bursaries, 50% for corporate grants, 3% for schools and 2% for parishes.
SARUM ST MICHAEL EDUCATIONAL CHARITY REPORT OF THE MANAGING TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2022
Page 4
(Continued)
ACHIEVEMENTS AND PERFORMANCE
Fifty nine applications were received during 2022. Of the forty- four personal applicants, thirty- six were successful. Four of the seven corporate applications were successful. There were six school applications and nil parish applications, five of the school applications were successful.
The Charity approved new grants totalling £125,089 in the year. Of the grants approved in 2022, £3,070 due for payment in 2022 were deferred to 2023. During 2022 the Charity paid grants totalling £137,594 (2021: £162,501) and grants of £1,500 were refunded (2021: £5,566).
The division of grants paid between recipients differed from the proposed target and worked out at 33.9% for personal applicants (including one channelled through Winchester University), 65.4% for corporate applications, 0.8% for schools and 0.0% for parishes. The analysis of grants is shown in note 4 to the accounts.
A selection of comments from beneficiaries is annexed.
One trustee attended the ACCT Horizons Seminar in March 2022, focussing on the impact funders want to make on religious education (RE).
FINANCIAL REVIEW
The Charity is reliant on the income from its investments. Total investment income for the year was £157,909 (2021: £163,001).
The investment management costs for 2022 were £35,359 (2021: £37,113), of which £34,604 related to endowments (2021: £36,295). Administration and premises costs were £26,926, of which £25,580 (95%) were allocated to other support costs and the balance £1,346 to governance costs, which in all totalled £5,478 for 2022 (2021: £6,627). Other support costs and governance costs were then allocated to charitable activities, giving a total of £167,152 for the cost of grants payable (2021: £188,608).
Total expenditure was £202,511, of which £34,604 related to endowment funds, and the net expenditure for the year was £44,602 (2021: net expenditure of £62,720). However, investment losses for the year were £831,550 (2021: gains of £612,062), making a net movement in funds for the year a £876,152 deficit (2021: £549,342 surplus).
At the end of the year the net assets of the Charity were £6,014,051 (2021: £6,890,203).
Grants approved in 2022 and earlier years for payment in 2022, but deferred to 2022, totalled £3,070. Grants approved for payment in 2023 totalled £76,150, in 2024 £1,785. This gave a total of £81,005 approved but not paid at the end of the year. As is usual policy, these future years' grants have been designated for payment from accumulated income, which has been set aside in a designated fund for grants payable in 2023 to 2025.
SARUM ST MICHAEL EDUCATIONAL CHARITY REPORT OF THE MANAGING TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2022
Page 5
(Continued)
Investment Policy and Performance
Investec has been instructed to manage the main portfolio (Endowment Fund) to enhance the real value of the capital and income of the Fund and to aim for a target return of RPI plus 3%, net of fees. The charity's aim is to sustain the income stream in the region of £160,000 (as at end 2011) in real terms.
The year was an exceptionally poor one for markets with, unusually, equities and bonds performing badly at the same time. Income for 2022 fell below the target of £160,000 in both absolute and real terms. The effect was visible in the Charity’s main portfolio, which significantly underperformed its benchmark of RPI+3% (producing a return of -10.3% against benchmark of +16.5%). Investment income is forecast at £150,000 to £155,000 for 2023.
At the end of 2022, the main portfolio valued at £5,828,094 consisted of 30.5% UK Equities, 38.3% Overseas Equities, 15.5% Fixed Income, 6.8% Property, 8.5% Alternatives and 0.4% Cash.
The benchmark of RPI+3% aimed to preserve the value of the capital in line with inflation, while generating 3% income to award in grants. However, RPI has been discredited for some time as a measure of inflation. It has generally exceeded CPI by about 1% annually and to achieve a benchmark based on RPI entailed taking a slightly higher level of risk. Most charities now use the Consumer Prices Index (CPI). Having taken advice from Investec, Governors decided at their first meeting in 2023 to change the benchmark with immediate effect to CPI+3%.
Investec has also been instructed to manage the smaller accumulated income portfolio. Their objective is to enhance the value of the capital and income of the fund with the avoidance of undue risk as the fund will be drawn down and spent when suitable opportunities arise. At the end of 2022 the portfolio valued at £203,121 consisted of 35.8% UK Equities, 41.8% Fixed Income and 22.4% Cash.
Investec has reported that the total return on the accumulated income portfolio was -5.82% net of fees. This compares with the benchmark return of -11.05% (Bespoke benchmark comprising 45% Fixed Interest, 40% UK Equities and 15% Cash).
The investment manager has been instructed to adhere to the ethical investment policy of the Church of England, and to favour companies that display a positive approach to governance and sustainability.
Reserves Policy
The Charity has a general reserve of accumulated income the level of which was reviewed by the Governors in April 2016. It was decided that the general reserve should cover a minimum of one year’s future support and governance costs. However, this reserve is after transfers of accumulated income to the designated fund for the grants approved for payment by the end of the next three financial years.
The total reserves at the 31 December 2022 were £218,635 (2021:£243,205). Of this, the general reserve at 31 December 2022 stood at £137,630 (2021: £81,680).
The inflation-adjusted value of the endowed capital funds whose original value was £907,698 at 24 January 1980 was £5,261,086 at December 2022. This compares with the market value of £5,816,892 at 31 December 2022.
PLANS FOR FUTURE PERIODS
The Governors have set a total grant budget for 2023 of £180,550 exclusive of support costs. This includes £79,220 for grants already approved for payment in 2023 plus deferred 2022 grants, and £102,000 of new grants.
SARUM ST MICHAEL EDUCATIONAL CHARITY REPORT OF THE MANAGING TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2022
Page 6
(Continued)
TRUSTEES’ RESPONSIBILITIES IN RELATION TO THE FINANCIAL STATEMENTS
The purpose of this statement is to distinguish the trustees’ responsibilities for the accounts from those of the independent examiners, as stated in their report.
The trustees are responsible for preparing the Trustees' 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 and Wales requires the trustees 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 trustees are required to:
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select suitable accounting policies and then apply them consistently;
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make judgements and estimates that are reasonable and prudent;
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observe the methods and principles in the Charities SORP;
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state whether applicable accounting standards have been followed, subject to any material departures that must be disclosed and explained in the financial statements;
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prepare the accounts on the going concern basis unless it is inappropriate to assume that the Charity will be able to continue to meet its objectives.
The trustees are responsible for keeping proper accounting records which are such as to disclose, with reasonable accuracy, the Charity’s financial position at any time, and to enable the trustees to ensure that the accounts comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations and the provisions of the charity's constitution. They are also responsible for safeguarding the Charity’s assets, and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Approved by the trustees on 27 April 2023 and signed on their behalf by:
J Leigh
Chairman of Trustees
INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF SARUM ST MICHAEL EDUCATIONAL CHARITY
Page 7
I report to the trustees on my examination of the accounts of the Sarum St Michael Educational Charity (the Charity) for the year ended 31 December 2022, which are set out on pages 8 to 16..
Responsibilities and basis of report
As the charity trustees of the Charity 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 Charity'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) accounting records were not kept in respect of the Charity 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.
Nicola A Halls
Mrs N A Halls FCA Fletcher & Partners Chartered Accountants Crown Chambers Bridge Street Salisbury Wiltshire SP1 2LZ
Date: 2 May 2023
Page 8
SARUM ST MICHAEL EDUCATIONAL CHARITY STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2022
| Note INCOME FROM: Investments 2 TOTAL EXPENDITURE ON: Raising funds: Investment management costs 3 Charitable activities: Grants payable 4 TOTAL NET GAINS/(LOSSES) ON INVESTMENTS: Realised gains/(losses) on investments Unrealised gains/(losses) on investments 8 NET INCOME/(EXPENDITURE) Transfers between funds NET MOVEMENT IN FUNDS RECONCILIATION OF FUNDS: Total funds brought forward 11, 12 Total funds carried forward 11, 12 NET INCOME/(EXPENDITURE) BEFORE GAINS/(LOSSES) ON INVESTMENTS: |
Unrestricted Funds 157,909 157,909 755 167,152 167,907 (9,998) (2,829) (11,743) (24,570) - (24,570) 243,205 218,635 £ |
Endowment Funds - - 34,604 - 34,604 (34,604) (181,989) (634,989) (851,582) - (851,582) 6,646,998 5,795,416 £ |
|
|---|---|---|---|
| £ |
The statement of financial activities includes all gains and losses recognised in the years 2022 and 2021.
The notes on pages 10 to 16 form part of these accounts.
Page 8b
SARUM ST MICHAEL EDUCATIONAL CHARITY STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2022
| 2021 COMPARATIVES ONLY Unrestricted Note Funds INCOME FROM: Investments 2 163,001 TOTAL 163,001 EXPENDITURE ON: Raising funds: Investment management 3 818 Charitable activities: Grants payable 4 188,608 TOTAL 189,426 (26,425) NET GAINS/(LOSSES) ON INVESTMENTS: Realised gains/(losses) on investments (2,016) Unrealised gains/(losses) on inv 8 9,288 NET INCOME/(EXPENDITURE) (19,153) Transfers between funds - NET MOVEMENT IN FUNDS (19,153) RECONCILIATION OF FUNDS: Total funds brought forward 11, 12 262,358 Total funds carried forward 11, 12 243,205 £ NET INCOME/(EXPENDITURE) |
Endowment Funds - - 36,295 - 36,295 (36,295) 46,023 558,767 568,495 - 568,495 6,078,503 6,646,998 £ |
|
|---|---|---|
| £ |
The statement of financial activities includes all gains and losses recognised in the years 2021 and 2020.
The notes on pages 10 to 16 form part of these accounts.
Page 9
SARUM ST MICHAEL EDUCATIONAL CHARITY BALANCE SHEET AS AT 31 DECEMBER 2022
| FIXED ASSETS: Tangible assets Investments Endowment Funds Unrestricted Funds Total fixed assets CURRENT ASSETS: Investments Unrestricted Funds Debtors Cash at bank and in hand Total current assets LIABILITIES: CREDITORS: amounts falling due within one year NET CURRENT ASSETS/(LIABILITIES) TOTAL NET ASSETS THE FUNDS OF THE CHARITY: Endowment Funds Unrestricted Funds TOTAL CHARITY FUNDS |
Note 7 8 8 8 9 10 11 12 14 |
2022 - 5,816,892 182,685 5,999,577 20,184 1,058 6,531 27,773 (13,299) 14,474 6,014,051 £ 5,795,416 218,635 6,014,051 £ - |
2021 - 6,668,988 166,527 |
|---|---|---|---|
| 6,835,515 | |||
| 54,024 1,859 12,689 |
|||
| 68,572 (13,884) |
|||
| 54,688 | |||
| 6,890,203 £ |
|||
| 6,646,998 243,205 |
|||
| 6,890,203 £ |
|||
| - |
Approved by the Managing Trustees on 27 April 2023
and signed on their behalf by :
J Leigh
Chairman of Trustees
The notes on pages 10 to 16 form part of these accounts.
SARUM ST MICHAEL EDUCATIONAL CHARITY NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022
Page 10
1. ACCOUNTING POLICIES
a Basis of preparing the financial statements
The financial statements of the Charity are prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective from 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011 and UK Generally Accepted Accounting Practice as it applies from 1 January 2019. The accounts (financial statements) have been prepared to give a ‘true and fair’ view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a ‘true and fair view’. This departure has involved following Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn. These financial statements are drawn up on the historical cost accounting basis except that investment assets are carried at market value. The charity constitutes a public benefit entity as defined by FRS 102. A summary of the more important accounting policies is set out below.
b Preparation of the accounts on a going concern basis
The adverse global economic events had a financial impact on the Charity in the year to 31 December 2022, with investment income and values reduced in comparison with the previous year. The number of grants paid fell in the year. The trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern. There are no material judgements that affect the accounts. The main source of estimation uncertainty for 2023 relates to the value of investments and investment income.
c Fund structure
Unrestricted funds comprise those funds which the trustees are free to use in accordance with the charitable objects. Designated funds comprise unrestricted funds that have been set aside by the trustees for particular purposes (see note 12).
The endowment fund represents those assets which must be held permanently by the Charity. Income arising on the endowment fund is to be used in accordance with the objects of the Charity and is included as unrestricted income. Any realised or unrealised capital gains or losses arising on the investments form part of the fund.
d Income
Income is accounted for in the period in which the Charity is entitled to the income, it is probable that the income will be received and the amount of income can be measured reliably. Dividends are recognised once the dividend has been declared and notification has been received of the dividend due. Interest is recognised when receivable.
e Expenditure
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that settlement will be required and the amount of the obligation can be measured reliably. Expenditure is included on an accruals basis and includes VAT where charged.
Grants payable are charged in the year when the offer is conveyed to the recipient except in those cases where the offer is conditional, such grants being recognised as expenditure when the conditions attaching are fulfilled.
f Allocation of support costs and governance costs
Support costs have been differentiated between governance costs and other support costs.
Governance costs comprise all costs involving the public accountability of the charity and its compliance with regulation and good practice. These costs include costs related to statutory audit or independent examination together with an apportionment of support costs.
Governance and other support costs relating to charitable activities have been apportioned based on the number of grants awarded per category of grant in recognition that the administrative burden of awarding and monitoring each grant is broadly equivalent.
The allocation of support and governance costs is analysed in note 5.
Page 11
SARUM ST MICHAEL EDUCATIONAL CHARITY NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022
1. ACCOUNTING POLICIES (Continued)
g Expenditure on raising funds
Expenditure on raising funds comprise investment management costs.
h Charitable activities
Costs of Charitable activities include grants made, governance costs and an apportionment of support costs as shown in note 4.
i Tangible fixed assets
Tangible fixed assets costing more than £1,000 are capitalised and included at cost.
Depreciation is provided on fixed assets at the following annual rates in order to write off each asset over its estimated useful life:
Computer equipment: 25% per annum on cost Office equipment: 20% per annum on cost Office furniture: 10% per annum on cost
j
Fixed asset investments
Fixed asset investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value (mid market price) as at the balance sheet date. The Statement of Financial Activities includes the net gains and losses arising on revaluation and disposals throughout the year. The charity does not acquire put options, derivatives or other complex financial instruments.
k Realised gains and losses
All gains and losses are taken to the Statement of Financial Activities as they arise. Realised gains and losses on investments are calculated as the difference between the sale proceeds and opening market value (or purchase date if later). Unrealised gains and losses are calculated as the difference between the market value at the year end and opening market value (or purchase date if later).
l Debtors
Debtors are measured at the amounts the charity anticipates it will receive from a debt or the amount it has paid in advance for goods or services.
m Cash at bank and in hand
Cash at bank and in hand includes cash and cash on deposit.
- n Liabilities
Liabilities are measured at the amounts the charity anticipates it will pay to settle a debt or the amount it has received as an advance payment for goods or services it must provide.
o
Financial Instruments
The charity only has financial assets and liabilities of a kind that qualify as basic financial instruments. These are recognised at amortised cost, except for investments which are measured at fair value with changes recognised on the Statement of Financial Activities.
p Leases
Commitments in respect to rent and other charges paid under operating leases are shown in the notes to the accounts. Costs are recognised in the SOFA on a straight line basis over the lease term.
2.
3.
| INCOME FROM INVESTMENTS Income from listed investments Interest received on cash deposits All investment income is unrestricted. EXPENDITURE ON RAISING FUNDS Investment management costs Unrestricted funds Endowment funds |
2022 157,581 328 157,909 £ 2022 755 34,604 35,359 £ |
2021 163,001 - |
2021 163,001 - |
|---|---|---|---|
| 163,001 £ |
|||
| 2021 818 36,295 |
|||
| £ | £ | 37,113 |
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SARUM ST MICHAEL EDUCATIONAL CHARITY NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022
4. ANALYSIS OF CHARITABLE EXPENDITURE
The charity undertook no direct charitable activities but awarded grants to a number of individuals and institutions in furtherance of its charitable activities. All grants approved are subject to the recipient fulfilling certain conditions. The amount payable in the year comprises:
| comprises: | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2022 Object/activity per Trustees'report a) Training for RE teaching (1) b) RE research and development c) Chapel and chaplaincy d) Teaching resources e) Financial assistance 2021 Object/activity per Trustees'report a) Training for RE teaching (6) b) RE research and development c) Chapel and chaplaincy d) Teaching resources e) Financial assistance |
Number of Grants 1 - - 9 39 |
Awarded Refunded - - - 90,026 - - - Grants to Institutions |
Awarded 2,500 - - - 45,068 Grants to |
Grants to | Refunded - - - (1,500) Individuals |
Support and governance costs 634 - - 5,705 24,719 |
Total 2022 3,134 - - 95,731 68,287 |
|||||
| Awarded - 90,026 - |
||||||||||||
| 49 | 90,026 £ |
- £ |
£ | 47,568 |
(1,500) £ |
£ | 31,058 £ |
167,152 |
||||
| Number of Grants 2 - - 8 48 |
Awarded Refunded - - - 90,461 (330) - - Grants to Institutions |
Awarded 15,000 - - - 57,040 Grants to |
Grants to | Refunded - - - (5,236) Individuals |
Support and governance costs 546 - - 4,369 26,758 |
Total 2021 15,546 - - 94,500 78,562 |
||||||
| Awarded - 90,461 - |
||||||||||||
| 58 | 90,461 £ |
(330) £ |
72,040 £ |
(5,236) £ |
£ | 31,673 £ |
188,608 |
All expenditure on charitable activities was from unrestricted funds in 2021 and 2022.
The largest institutional grants made in 2022 were:
- d) Teaching resources £68,000 to the Salisbury Diocesan Board of Education - £68,000 to support the employment of the Diocesan RE Adviser and SIAMS (Statutory Inspection of Anglican and Methodist Schools) manager and the development of the work of the School Effectiveness Advisers.
The REC (Religion Education Council) received £10,000 as a contribution towards the CEO's and assistant's salary over 3 years. The Morning Star Trust, a Christian sailing charity, received £1,200 contribution to various voyages for youngsters in 2023.
The Bridge Youth Project received £5,000 for training and upskilling of their chaplains.
Sarum College received £4,261 match funding for digital library resources.
The Lantern Church received £500 funding for input by the Christian charity TLG (Transforming Lives for Good), The balance of institutional grants was made up of 3 grants totalling £1,065.
Page 13
SARUM ST MICHAEL EDUCATIONAL CHARITY NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022
5. ALLOCATION OF GOVERNANCE AND OTHER SUPPORT COSTS
The breakdown of support costs and how these were allocated between governance (5%) and other support costs (95%) is shown in the table below.
| Staff costs Office premises costs Office administrative costs Legal and professional costs Depreciation GOVERNANCE COSTS Accountants' remuneration Cost of meetings Support costs (5%) TOTAL SUPPORT COSTS Other support costs Governance costs |
Basis of Other support allocation costs Staff time 17,070 Staff time 5,034 Staff time 2,441 Staff time 1,035 Staff time - 25,580 £ for accountancy services for independent examination |
Other support costs 17,070 5,034 2,441 1,035 - |
Other support costs 17,070 5,034 2,441 1,035 - |
Governance costs 898 265 128 55 - 1,346 £ |
Total 2022 17,968 5,299 2,569 1,090 - |
Total 2021 17,527 5,744 1,810 1,283 - |
||
|---|---|---|---|---|---|---|---|---|
| £ | 25,580 |
£ | £ | 26,926 |
£ | 26,364 |
||
| 2022 1,926 1,926 280 1,346 |
2021 2,649 2,649 11 1,318 |
|||||||
| £ | 5,478 |
£ | 6,627 |
|||||
| 2022 25,580 5,478 |
2021 25,046 6,627 |
|||||||
| £ | 31,058 |
£ | 31,673 |
The total support cost attributable to charitable activities (grants payable) is apportioned pro rata by the number of grants awarded per category of grant as shown in note 4.
6. ANALYSIS OF STAFF COSTS
| Salaries Social security costs |
2022 17,968 - |
2021 17,527 - |
||
|---|---|---|---|---|
| £ | 17,968 |
£ | 17,527 |
The average number of employees during the year was 2 (2021 - 2). No employees had emoluments above £60,000 in 2022 or 2021.
The day to day operations of the charity is delegated by the Trustees to the Clerk who is considered to be the key management person. The total cost of key management personnel during the year was £10,954.
Trustees received no remuneration or benefits (2021 - nil). Amounts reimbursed in the year amounted to £Nil (2021: £11 - 1 trustees).
Page 14
SARUM ST MICHAEL EDUCATIONAL CHARITY NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022
| 7. TANGIBLE FIXED ASSETS Computer Office Cost Equipment Furniture 908 238 Additions - - Disposals (908) (65) At 31 December 2022 - 173 Depreciation 908 238 Charge for the year - - Accumulated depreciation (908) (65) At 31 December 2022 - 173 Net Book Value At 31 December 2022 - £ - £ - £ - £ 8. FIXED ASSET INVESTMENTS Listed Investments 2022 2021 Market value at 1 January 6,552,925 6,063,962 Additions to investments at cost 1,324,166 912,877 Disposals at carrying value (1,448,700) (982,681) Net gain/(loss) on revaluation (634,989) 558,767 Market value at 31 December 5,793,402 £ 6,552,925 £ Historical cost as at 31 December 4,875,390 £ 4,663,190 £ Cash with Investment Managers 2022 2021 Held at 1 January 116,063 35,808 Investment income - - Proceeds from sale of investments 1,266,711 1,027,286 - 1,418 Expended on investment purchases (1,323,917) (912,694) Investment management charges (35,367) (35,755) Transferred to general bank account Held at 31 December 23,490 £ 116,063 £ Viewed as current asset capital cash - - (transferred to general bank account within 6 months) Viewed as fixed asset capital cash 23,490 £ 116,063 £ Total Fixed Asset Investments 5,816,892 £ 6,668,988 £ 9. DEBTORS AND PREPAYMENTS Other debtors Prepayments 10. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR Trade creditors Accruals and deferred income Taxation and social security Other investment receipts (redemption proceeds, equalisation etc) Endowment Funds Endowment Funds At 1 January 2022 At 1 January 2022 At 1 January 2022 |
Office Furniture 238 - (65) |
||||||
|---|---|---|---|---|---|---|---|
| 173 | |||||||
| 238 - (65) |
|||||||
| 173 | |||||||
| £ | - |
£ | |||||
| £ | - |
£ | |||||
| 6,552,925 £ |
£ | ||||||
| 4,663,190 £ |
£ | ||||||
| 116,063 £ - |
£ | £ | 54,024 54,024 |
||||
| 116,063 £ |
£ | £ | - |
||||
| 6,668,988 £ |
£ | £ | 166,527 |
||||
| 2022 - 1,058 1,058 2022 - 12,735 564 13,299 |
2021 1,395 464 |
||||||
| £ | £ | 1,859 |
|||||
| 2021 - 13,316 568 |
|||||||
| £ | £ | 13,884 |
Page 15
SARUM ST MICHAEL EDUCATIONAL CHARITY NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022
11. ENDOWMENT FUNDS
| Main Fund Main Fund |
Balance at 31.12.21 6,646,998 £ Balance at 31.12.20 6,078,503 £ |
Incoming Resources - £ |
Resources expended (34,604) £ Resources expended (36,295) £ |
Gains/(losses) arising in year (816,978) £ |
£ | Transfers - Transfers - |
Balance at 31.12.22 5,795,416 £ |
||
|---|---|---|---|---|---|---|---|---|---|
| Incoming Resources - £ |
Gains/(losses) arising in year 604,790 £ |
£ | Balance at 31.12.21 6,646,998 £ |
The Main Fund was established in 1980 from the assets of the College of Sarum St Michael, which was the Church of England's Teacher Training College in The Close, Salisbury.
12. UNRESTRICTED FUNDS
| Balance at 31.12.21 Designated Fund for grants payable in: 2020 - 2021 12,415 2022 79,110 2023 70,000 2024 - 2025 - 161,525 General Reserve 81,680 243,205 £ Balance at 31.12.20 Designated Fund for grants payable in: 2020 11,218 2021 106,497 2022 79,280 2023 69,100 2024 - 266,095 General Reserve (3,737) 262,358 £ |
Balance at 31.12.21 Designated Fund for grants payable in: 2020 - 2021 12,415 2022 79,110 2023 70,000 2024 - 2025 - 161,525 General Reserve 81,680 243,205 £ Balance at 31.12.20 Designated Fund for grants payable in: 2020 11,218 2021 106,497 2022 79,280 2023 69,100 2024 - 266,095 General Reserve (3,737) 262,358 £ |
Incoming Resources - - - - - - |
Resources expended - - - - - - - (167,907) (167,907) £ Resources expended - - - - - - (189,426) (189,426) £ |
Gains/(losses) arising in year - - - - - - |
Transfers (12,415) (79,110) 9,220 1,785 - (80,520) 80,520 - Transfers (11,218) (94,082) (170) 900 - (104,570) 104,570 - |
Balance at 31.12.22 - - - 79,220 1,785 - |
Balance at 31.12.22 - - - 79,220 1,785 - |
||
|---|---|---|---|---|---|---|---|---|---|
| - 157,909 |
- (14,572) |
81,005 137,630 |
|||||||
| 157,909 £ |
(14,572) £ |
£ | £ | 218,635 |
|||||
| Incoming Resources - - - - - |
Gains/(losses) arising in year - - - - - |
Balance at 31.12.21 - 12,415 79,110 70,000 - |
|||||||
| - 163,001 |
- 7,272 |
161,525 81,680 |
|||||||
| 163,001 £ |
7,272 £ |
£ | £ | 243,205 |
The designated funds represent accumulated income set aside for grants approved for payment by 31 December 2025. Transfers are made to/(from) the General Reserve to ensure that sufficient funds are designated for grants payable.
13. OPERATING LEASES - Land and Buildings
At 31 December 2022 the Charity had future minimum lease payments due under non-cancellable operating leases for each of the following periods:
| Not later than 1 year Later than 1 year and not later than 5 years Later than 5 years |
2022 1,912 - - 1,912 £ |
2021 4,950 1,912 - |
|
|---|---|---|---|
| £ | 6,862 |
Lease costs expensed in the year were £5,306
Page 16
SARUM ST MICHAEL EDUCATIONAL CHARITY NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022
14. ANALYSIS OF NET ASSETS BETWEEN FUNDS
| ANALYSIS OF NET ASSETS BETWEEN FUNDS | ||||
|---|---|---|---|---|
| At 31 December 2022 Fund balances are represented by: Tangible fixed assets Fixed asset investments Current asset investments Debtors Cash at bank and in hand Creditors: amounts falling due within one year Total net assets At 31 December 2021 Fund balances are represented by: Tangible fixed assets Fixed asset investments Current asset investments Debtors Cash at bank and in hand Creditors: amounts falling due within one year Total net assets |
Endowment Funds - 5,816,892 - - (12,860) (8,616) |
Unrestricted Funds - 182,685 20,184 1,058 19,391 (4,683) 218,635 £ Unrestricted Funds - 166,527 54,024 1,859 25,300 (4,505) 243,205 £ |
Total - 5,999,577 20,184 1,058 6,531 (13,299) |
|
| £ | 5,795,416 |
£ | 6,014,051 £ |
|
| Endowment Funds - 6,668,988 - - (12,611) (9,379) |
Total - 6,835,515 54,024 1,859 12,689 (13,884) |
|||
| £ | 6,646,998 |
£ | 6,890,203 £ |
15. RELATED PARTY TRANSACTIONS
There were no related party transactions in 2022 or 2021.
SARUM ST MICHAEL EDUCATIONAL CHARITY ANNEX FOR THE YEAR ENDED 31 DECEMBER 2022
Comments from Beneficiaries
I wanted to express my huge thanks to Sarum St Michael for supporting my studies through a grant. Not only has the financial aspect made my studies possible but the knowledge of being supported has been a significant encouragement throughout these strange times we find ourselves living in. CR
I am just writing to say a massive thank you to Sarum St Michael Educational Charity for supporting me in my venture to become a veterinary surgeon. I have my graduation ceremony on the Thursday 14th July, and start my veterinary adventures on the 1st August, working as a small animal veterinarian. Without your support to help with my tuition fees, I would not have been able to undertake my life-long ambition to become a veterinarian surgeon and again, I would like to say thank you. CB
Thanks to your kind grant I was able to attend the Sarum summer school last week studying Bonhoeffer’s ‘Letters and papers from prison’ as part of my current sabbatical. I found it a tremendously valuable time. Thank you very much for making it possible for me to attend. TY
I wanted to express my warmest thanks for your generous grant to cover the fees for my MA in Theology, Imagination and Culture at Sarum College. I am pleased to say that I have now finished and that I received a distinction for my dissertation on human flourishing and the culture of whiteness in Church of England Primary Schools. This work is already having a direct impact on the 150 schools I work with. Again I am extremely grateful to you for making this course possible, I thoroughly enjoyed my studies at Sarum College and would not have been able to pursue this without your support. JK
I am very grateful to the Sarum St Michael bursary for their funding. I am a mature student who spent nearly 20 years as a church-based youth worker in both Anglican and Baptist settings, so I hoped that I would have the transferable skills to move into secondary RE teaching. Even so, taking a year out of work to retrain was definitely a leap of faith and as I live in a rural location one of the main expenses has been getting to and from university and school placements. I am very grateful to the Sarum St Michael bursary for their very practical assistance which has enabled me to focus on my studies and prepare lessons without additional financial worries getting in the way. RE
My studies have significantly benefited for the Sarum St Michael bursary this academic year. This money has helped me stay on top of my bills and continue to put fuel in my car to get to the school. The rising cost of living has been increasingly difficult during this time and the money from the charity has relieved some financial pressure. Moreover, pre-Christmas the income allowed me to purchase vital textbooks, which I would not otherwise have been able to buy. This scheme is a very kind act, which I am sure enables many student teachers, like myself, to reach their full potential. FM