2025-12-31-accounts - Sarum St Michael Educational Charity

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SARUM ST MICHAEL EDUCATIONAL CHARITY

REPORT OF THE MANAGING TRUSTEES AND UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

Charity Number: 309456

SARUM ST MICHAEL EDUCATIONAL CHARITY

CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025

	Page
Reference and Administrative Information	1
Report of the Managing Trustees	2
Independent Examiner's Report	12
Statement of Financial Activities	13
Balance Sheet	14
Notes to the Financial Statements	15

SARUM ST MICHAEL EDUCATIONAL CHARITY

REPORT OF THE MANAGING TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2025

The Managing Trustees present this report together with financial statements of the Charity for the year ended 31 December 2025. The financial statements have been prepared in accordance with the accounting policies set out on pages 15 to 17 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 (FRS102).

(FRS102) – Charities SORP (FRS102).
Registered Charity Number	309456
Registered Address	Room 2, Suite 1 Second Floor North Cross Keys House 22 Queen Street Salisbury Wiltshire, SP1 1EY
Governors Ex Officio Governors The Bishop of Salisbury The Dean of Salisbury The Diocesan Director of Education The Diocesan Secretary The Chapter Clerk of Salisbury Cathedral	The Right Revd Stephen Lake The Very Revd Canon N Papadopulos Mrs K Fitzsimmons Mr D Pain Mrs J Molnar
Nominative Governors Salisbury Diocesan Synod Salisbury Diocesan Board of Education	Mr J Leigh (Chair) Mr G Light Mrs JA Pitcher (Vice-Chair) The Revd Prof E Stuart MBE Mrs D Wood
Additional Governors	Mr T Almond Ms I Deverill retired September 2025 Revd Angus Mayhew appointed November 2025 Mrs MR Wareham appointed November 2025
Clerk to the Governors	Mrs JR Doig
Banker	Lloyds Bank plc 38 Blue Boar Row Salisbury Wiltshire, SP1 1DB
Solicitor	Wilsons LLP Gillian Fletcher St John’s Street Salisbury Wiltshire, SP1 2SB
Independent Examiner	Martyn SmithBA (Hons) FCA Fawcetts LLP Windover House St Ann Street Salisbury Wiltshire, SP1 2DR
Investment Manager	Rathbones Investment Management 30 Gresham Street London, EC2V 7QN

SARUM ST MICHAEL EDUCATIONAL CHARITY

REPORT OF THE MANAGING TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2025

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 enabling the Charity to make changes to the original Scheme without prior approval of the Charity Commission unless related to the purposes of the Charity, spending of the endowment, conferring a benefit to Trustees or changing the name of the Charity.

In addition Resolution 2016 permitted changes to enable electronic means of communication and recording. 2025 saw a Resolution submitted to the Charity Commission to update the Scheme’s wording, remove personal references to Trustees of 1980 and change only 2 to up to 4 Additional Governors.

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 up to 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. One of the Additional Governors is currently gapped.

All other governors are appointed after consultation with both the Diocesan Synod and the Salisbury Diocesan Board of Education. The aim is to have a Board of Governors with as wide a breadth of experience and skills 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. An Induction pack is sent to a new Governor which includes the latest annual report and accounts, copies of the Charities Scheme and accompanying Order and Resolutions, as well as all policies of the Charity.

Organisation

The Managing Trustees meet four 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. All votes are to be determined by the majority, however, in the case of equal votes the Chair has the deciding vote.

Day-to-day management of the Charity is delegated to the Clerk to the Governors, assisted by a secretary/book-keeper. The Chair of the Governors regularly discusses the management of the Charity with the Clerk.

SARUM ST MICHAEL EDUCATIONAL CHARITY

REPORT OF THE MANAGING TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2025

Trustee Renumeration

All Governors give of their time freely and no Trustee renumeration was paid during the reporting period. Details of any Trustee expenses and related party transactions are disclosed in this report.

Trustee Conflicts of Interest

All Governors are required to declare any conflict of interests during every Board Meeting. In the event that there is a conflict of interest the Governor in question is requested to leave the meeting for the relevant discussion/decision.

OBJECTIVES AND ACTIVITIES

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;

c. in the provision and conduct, or assistance in the provision and conduct, of a chapel and chaplaincy providing for student's religious worship, instruction and care;

d. in the promotion of education by the provision of instruction, classes, lectures, books, libraries and reading rooms;

e. in making grants to persons in need of financial assistance to enable them to attend an establishment of higher and further education or otherwise to pursue their education;

f. and in such ways as the Governors may from time to time determine’.

Of note within the Scheme 1980 is paragraph 24 when considering the Application of Income. Having already dealt with the need to expend operational costs out of the income of the Charity, this section goes on to state that the ‘Governors shall apply the income of the Charity in furthering the object thereof’. With the following at paragraph 24 (2):

‘The Governors shall have particular regard to the needs of persons undergoing training and further training as teachers and persons pursuing higher and further education’.

The Charity is a member of the Religious Education Council (REC) and Association of Church College Trusts (ACCT), with the aim of supporting national efforts to promote the cause of religious education. The REC annual conference is attended by the School Improvement Advisor within Salisbury Diocesan Board of Education, whom reports to the Board of Governors. One of the Governors and Clerk to the Governors attend two conferences held by the ACCT each year, again reporting back to the Board afterwards.

Grant making is the primary activity of the Charity and as such when planning spend on grants for the year, Governors confirm that they have regard to the Charity Commission’s guidance on public benefit. The Charity’s Objects are entirely consistent with grants being awarded for the public benefit.

SARUM ST MICHAEL EDUCATIONAL CHARITY

REPORT OF THE MANAGING TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2025

Policy on Grant Making

The Charity pursues its policy by making grants in accordance with its Objects, to those living or studying in Salisbury Diocese or a neighbouring Diocese, for the public benefit. Applicants are advised to check the criteria for the type of grant applied for.

Grants are awarded to individuals for the purpose of their own education whether that be in higher or further education. In particular those studying at Sarum College are usually supported by the Charity. But many study MAs and PhDs at other educational establishments across the country including the Open University.

Of significance are the number of applicants wishing to become Religious Education (RE) teachers. The Charity has a strong relationship with Winchester University to whose students studying RE PGCE are awarded a bursary. Students studying the RE PGCE elsewhere are also entitled to the bursary, within the Charity’s eligibility criteria. The Charity looks forward to paying the Retention Bonus to those Bursars having completed 2 years teaching RE.

The Charity makes awards to organisations such as churches, schools and not for profit organisations which meet the requirements of the Objects of the Charity.

Information regarding the criteria and the Objects of the Charity is available on the website and by request over the telephone, post or email. Applicants are invited to complete an online application form, along with the provision of names and addresses for references.

As a rule funding for future years is not awarded except in the case of the Salisbury Diocesan Board of Education. Applicants completing a course over several years must reapply each year.

ACHIEVEMENTS AND PERFORMANCE

In February of the previous year Governors agreed a grant spend budget of £215,500. It was decided to replace the percentage breakdown of previous years with that of specific targets based on Governors direction, with a target total of 78. The number of applications increased this year at 102 (72 in FY24). Those rejected were not eligible on the basis of geography or were for unrelated subjects.

The award allocation mostly fell within the targets. 12 bursaries were awarded to potential RE teachers, sadly 2 students at Winchester University did not complete the course (their bursary awards will be refunded into FY26).

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Grant Targets
60
40
20
0
Personal Schools Parishes Corporate
Target Applications Awarded
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SARUM ST MICHAEL EDUCATIONAL CHARITY

REPORT OF THE MANAGING TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2025

ACHIEVEMENTS AND PERFORMANCE (continued)

Governors were pleased to see the amount awarded increased from the previous year to £205,320 (£157,104 FY24) with only £3,500 refunded into FY25 for grants awarded in the previous year (£1,307 FY24).

Grant spend of £205,320 during this reporting period included a deferred grant Ref 6.11.25 (£1,870 agreed in FY25 to be paid in FY26 to Bain). The Charity generally tries not to defer awards except in the case of the large award made to the Salisbury Diocesan Board of Education.

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102 applications
86 went to the Board 16 rejected
7
79 successful rejected
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Percentage of money awarded FY25

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Corporate Personal
36% 49%
Schools
13%
Parishes 2%
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SARUM ST MICHAEL EDUCATIONAL CHARITY

REPORT OF THE MANAGING TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2025

on beneficiaries spent

+ all…..

schools in Wiltshire and Salisbury Diocese.

Monitoring Achievement

The work carried out to increase the number of applications by 40% has resulted in a greater number of beneficiaries.

All beneficiaries under the terms of the award make an undertaking to provide the Charity with a report of their progress, whether they be individuals pursuing a course of study or an organisation running a specific project.

Evidence to demonstrate the difference the Charity’s awards have made can be found below in a sample of quotations from the many emails of thanks received by the Charity:

“Please convey my deep appreciation to the Governors for their financial assistance in my course this past year.……I am excited to be able to use this knowledge both in my local church and also in the Christian retreats that I run.” £2,030 1[st] year of MA in Christian Spirituality at Sarum College.

“An enormous and heartfelt THANK YOU for the grants that you gave me…….I feel very privileged to have done (this course).” £1,150 Diploma in Christian Counselling.

SARUM ST MICHAEL EDUCATIONAL CHARITY

REPORT OF THE MANAGING TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2025

“The school governors, staff & pupils would like to thank the Trustees for their very generous grant which has been used to purchase a variety of books to support spiritual development within the school community.” £250 Staverton Church of England Primary School.

Some of the books purchased by Staverton Church of England Primary School

“I was able to complete the MA at Durham University to an exceptionally high standard. This is because the funding not only alleviated financial pressures but freed me to focus wholeheartedly on my studies and research.” £800 final year of MA in Religion and Society at Durham University. Distinction awarded after 2 years of funding from the Charity and currently teaching theology at Durham University.

The appointed School Chaplain has had a tangible impact on the school staff, including kitchen staff and science lab technicians. His work to create a ‘Faith Space’ has found an average of 32 students spanning all years meeting weekly to eat, chat, have fun and pray. And a lunch time group drop-in has proven popular with older 6[th] form students. The School Chaplain has worked with Head of Behaviour and Inclusion to assist those pupils at risk of bullying and liaised with churches within the community.

2[nd] year of £3000 towards the school’s Chaplaincy Project St Laurence School in Bradfordon-Avon.

SARUM ST MICHAEL EDUCATIONAL CHARITY

REPORT OF THE MANAGING TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2025

“Thank you so much for the very generous bursary to assist me in my RE PGCE. I am extremely grateful for your support in Religious Education and share your enthusiasm for this very important subject.” £2,500 to a Winchester University RE PGCE student.

Some of 2025 Winchester University RE PGCE graduates!

FINANCIAL REVIEW

The only income stream is derived from the investment portfolio held by Rathbones Investment Management. The name change is indicative of Investec, with whom the funds have been invested with since 2012, having been taken over by Rathbones.

The Charity does not have a fundraising campaign as it does not fundraise nor seek donations

or legacies.

The Charity set a budget for both grant spend and operational costs in February of the previous year; grant spend was just below £6,000 under budget and operational costs just £700 underspent.

Total investment income for the year was £199,629 (£193,496 FY24).

Investment management costs for the reporting period were £37,167 (£36,809 FY24).

Operational costs to run the Charity were £34,554 (£33,112 FY24).

Total expenditure was £277,041 (£227,025 FY24), and the net expenditure for the year was £77,412 (£33,529 FY24).

Investment gains for the year were £436,071 (£407,363 FY24), making a net movement in funds for the year a £358,659 surplus (£373,834 surplus FY24). It is encouraging to see a positive trend for the last 2 years.

At the end of the year the net assets of the Charity were £6,967,763 (£6,609,104 FY24).

SARUM ST MICHAEL EDUCATIONAL CHARITY

REPORT OF THE MANAGING TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2025

There were 2 grants approved in this financial year to be paid out in the next year; £1,870 to Bain and the standing £68,000 award to Salisbury Diocesan Board of Education (DBE). This is the final payment of the agreement dated June 2023. The grant to DBE covers the salary of the Schools Improvement Advisor and annual conference.

The Internal Financial Controls Policy is reviewed annually.

Investment Policy and Performance

Rathbones were instructed to manage the main portfolio (Endowment Fund) to enhance the real value of the capital and income of the Fund to aim for a target return of CPI +3%, net of fees. The income target of £180,000 was maintained.

The year delivered another positive year for equity markets despite a period of significant volatility in late March/early April when a series of tariffs were announced by the US administration, which caused anxiety around the world. The growth of Artificial Intelligence continued to be a significant factor with a continuation in the US of a fairly concentrated return from large US technology companies, compared with the broader market. Interest rates were reduced only gradually in much of the western world due to a services component of inflation that remained sticky.

The total return achieved by the fund over the financial year, net of fees, was +9.3%, which compares favourably with the CPI +3% target return of +6.5%. The fund retains a balance to both growth and income-producing assets, given the income requirement. Income of £199,000 was generated for the year (£193,000 FY24).

At the end of 2024, the main portfolio was valued at £6,833,291. The asset allocation was 21% bonds, 68% equities and 11% alternative assets.

Rathbones also manages the smaller accumulated income portfolio. The 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 2025 the portfolio was valued at £143,295 and was invested 29% in bonds, 40% in UK equities and 31% in cash. The return for the financial year was +6.6%, against the comparator of +4.3%.

The inflation-adjusted value of the endowed capital funds whose original value was £907,698 on 24 January 1980 was £3,944,390 at the end of this financial year according to the Bank of England inflation calculator. This compares with the market value of £6,833,291 on 31 December 2025.

The Investment Policy is reviewed annually.

SARUM ST MICHAEL EDUCATIONAL CHARITY

REPORT OF THE MANAGING TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2025

Risk Management

Risk Management is considered annually by the Governors and a comprehensive Risk Assessment in place. Of significance remains the matter of investment returns since it is that which determines whether the Charity can carry out its Objects. It is for this reason that the issue of Total Return has been raised.

Regular reports are received from Rathbones and the Investment Manager invited to speak with the Governors annually.

Likewise, regular Liquidity and Spend Reports presented prior to any decisions on grant spend is made ensures that only the funds available to spend can be awarded.

Reserves Strategy

In essence all that sits within the Accumulated Income Account is the Charity’s Reserve and as such is still earning on the markets whilst accessible. This is deemed sufficient by the Governors. A sum of 3 months of operating costs and impending grants expenditure is considered as an appropriate amount to be held as a minimum level of reserve. The Accumulated Income Fund held by Rathbones always exceeded this amount throughout this reporting period.

At the end of the year the total free reserves were £74,051 (£48,188 FY25). An immediate reserve of £9,125 if needed in the worst-case scenario (3mths operating costs) was always available.

The Reserves Policy is reviewed annually.

PLANS FOR THE FUTURE

With good governance in place and a rolling programme of annual review Governors want to be sure that the Board is operating at its most effective. A task having fallen out of the Risk Assessment is that of conducting a Trustee Skills Audit, to be completed in 2026.

Happy with the shift in application targets and the increase in applications received and grant spend for FY25 Governors will look to maximise income from the investments. Legal advice will be sought to assist Governors on the matter of whether Total Return would be worth considering.

It is hoped that changes to staff appointments will be negated in 2026 by having offered the Administrator/Bookkeeper different terms. The Governors would like to see the strong working team currently in place continue, offering the Charity the stability necessary to meet its Objects.

SARUM ST MICHAEL EDUCATIONAL CHARITY REPORT OF THE MANAGING TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2025 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 independenl 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 ACpted Accounting Practice). The law applicable to charities in England and Wales requires the trustees lo prepare financial statements for each financial year which give a true and fair view of the stale 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.. select suitable accounting policies and then apply them consistently. make Judgements and estimates that are reasonable and prudent., observe the methods and principles in the Charities SORP., state whether applicable accounting standards have been followed. subject to any material departLJres that must be disclosed and explained in the financial statements., prepare the accounts on the going concem 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 lo disclose, with reasonable accuracy, the Charity's financial position at any lime, 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 Gonstitution. 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 bythetrustees on........................... and signed onlheirbehalf by J. A. Pitcher Trustee

INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF

SARUM ST MICHAEL EDUCATIONAL CHARITY

FOR THE YEAR ENDED 31 DECEMBER 2025

I report to the charity trustees on my examination of the accounts of Sarum St Michael Educational Charity for the year ended 31 December 2025 which are set out on pages 13 to 27, which comprise the Statement of Financial Activities, the Balance Sheet, and the related notes.

Responsibilities and basis of report

As the charity's trustees 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 your charity's accounts as carried out under Section 145 of the 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 which gives me cause to believe that in any material respect:

Accounting records were not kept in respect of the charity as required by Section 130 of the Act; or
The accounts do not accord with the accounting records; or
The accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a 'true and fair' view which is not a matter considered as part of an independent examination.

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

M C Smith BA (Hons) FCA Fawcetts LLP Chartered Accountants Windover House St Ann Street Salisbury SP1 2DR

Date: 2 June 2026

SARUM ST MICHAEL EDUCATIONAL CHARITY

STATEMENT OF FINANCIAL ACTIVITIES

FOR THE YEAR ENDED 31 DECEMBER 2025

Unrestricted INCOME AND EXPENDITURE funds Note £ INCOME AND ENDOWMENTS FROM: 2 199,629 199,629 Raising Funds Investment management costs 3 474 4 239,874 240,348 NET EXPENDITURE BEFORE GAINS/(LOSSES) ON INVESTMENTS: (40,720) NET GAINS/(LOSSES) ON INVESTMENTS Realised gains/(losses) on investment 650 11 (197) NET INCOME/(EXPENDITURE) (40,267) TRANSFERS BETWEEN FUNDS - (40,267) at 1 January 2025 15, 16 184,188 15, 16 143,921 TOTAL EXPENDITURE Unrealised gains/(losses) on investment TOTAL INCOME EXPENDITURE ON: Charitable activities Investments NET MOVEMENT IN FUNDS RECONCILIATION OF FUNDS: Total funds brought forward TOTAL FUNDS CARRIED FORWARD	Endowment funds £ -	Total 2025 £ 199,629	Total 2024 £ 193,496
199,629	-	199,629	193,496
474 239,874	36,693 -	37,167 239,874	36,809 190,216
240,348	36,693	277,041	227,025
(40,720) 650 (197)	(36,693) (519) 436,137	(77,412) 131 435,940	(33,529) 35,915 371,448
(40,267)	398,926	358,659	373,834
-	-	-	-
	398,926 6,424,916	358,659 6,609,104	373,834 6,235,270
	6,823,842	6,967,763	6,609,104

The statement of financial activities includes all gains and losses recognised in the years 2025 and 2024.

The notes form part of these financial statements.

SARUM ST MICHAEL EDUCATIONAL CHARITY BALANCE SHEET AS AT 31 DECEMBER 2025 2025 2024 Note FIXED ASSETS Tangible asset5 Investments io li li Endowment funds Unrestricted funds 6,833,291 98,818 6,436,545 118,664 6.932,109 6,555,209 CURRENT ASSETS Investment Debtors Cash at bank and in hand Unrestricted funds li 12 44,477 1,602 3,299 58,416 1,279 8,274 TOTAL CURRENT ASSETS 49,378 67,969 LIABILITIES Creditors. Amounts due within one year 13 113,724 14,074 NETCURRENT ASSErs 35,654 53,895 NET ASSETS 17 6 967 763 6 609 104 FUNDS Endowment funds Unrestricted fund5 15 16 6,823,842 143,921 6,424,916 184,188 TOTAL CHARITY FUND5 6 967 763 6 609 104 The financial statements were approved and authorised for issue by the Mana8in8 Trustee5 0 nd were signed on its behalf by.. A. Pltcher Trustee The notes form part ol these financial staternents. 14

SARUM ST MICHAEL EDUCATIONAL CHARITY

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

1. ACCOUNTING POLICIES

Accounting convention

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 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 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 investement assets are carried at market value. The charity constitutes a public benefit entity as defined by FRS 102. The charity does not meet the definition of a larger charity under the Charities SORP and is therefore exempt from the requirement to prepare a cash flow statement.

Preparation of the accounts on a going concern basis

The investment income and values improved in comparison with the previous year. The number of grants paid increased 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 2026 relates to the value of investments and investment income. The accounts are prepared in Sterling (£) which is the functional currency of the charity. The significant accounting policies applied in the preparation of these accounts are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

Fund accounting

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 16).

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 unrestircted income. Any realised or unrealised capital gains or losses arising on the investments form part of the fund.

Income recognition

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 mesaured reliably. Dividends are recognised once the dividend has been declared and notification has been received of the dividend due. Interest is recognised when receivable.

Expenditure recognition

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.

SARUM ST MICHAEL EDUCATIONAL CHARITY

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

1. ACCOUNTING POLICIES (continued)

Allocation of management and administration costs

Management and administration costs, including support costs and governance costs, have been allocated on the basis of natural expenditure headings as shown in Note 4.

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.

The allocation of support and governance costs is analysed in Note 4.

Expenditure on raising funds

Expenditure on raising funds comprise investment management costs.

Charitable activities

Costs of charitable activities include grants made, governance costs, and support costs as shown in Note 4.

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

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.

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).

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.

Cash at bank and in hand

Cash at bank and in hand includes cash and cash on deposit.

Liabilities

Liabilities are mesaured 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.

SARUM ST MICHAEL EDUCATIONAL CHARITY

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

1. ACCOUNTING POLICIES (continued)

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.

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. INCOME FROM INVESTMENTS

Income from listed investments Interest received on cash deposits	2025 £ 198,781 848 199,629	2024 £ 190,727 2,769
		193,496

All investment income is unrestricted.

3. EXPENDITURE ON RAISING FUNDS

Investment management costs Unrestricted funds Endowment funds	2025 £ 474 36,693 37,167	2024 £ 716 36,093
		36,809

SARUM ST MICHAEL EDUCATIONAL CHARITY

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

4. CHARITABLE ACTIVITIES EXPENDITURE

Grant Funding £ Unrestricted funds 205,320 Endowment funds - 205,320 UNRESTRICTED Grant Funding(see Note 5) Support Costs Staff costs Staff expenses Office premises costs Office administrative costs Legal and professional costs Bank charges Depreciation Governance - Independent examiner's fee Governance - Accountancy Governance - Cost of meetings	Support Costs £ 34,554 - 34,554	Total 2025 £ 239,874 - 239,874 2025 £ 205,320 21,013 88 5,799 2,263 870 32 - 1,507 2,227 755 34,554 239,874	Total 2024 £ 190,216 -
			190,216
			2024 £ 157,104
			19,833 100 5,849 1,658 730 - - 2,085 2,085 772
			33,112
			190,216

SARUM ST MICHAEL EDUCATIONAL CHARITY

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

5. GRANT FUNDING

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:

Number of Grants 56 2 3 18	Grants to	Institutions	Grants to Individuals	Grants to Individuals	Total 2025 £ 100,735 75,500 3,400 25,685
	Awarded - 75,500 3,400 26,565	Refunded £ - - - (880)	Awarded £ 104,235 - - -	Refunded £ (3,500) - - -
79	105,465	(880)	104,235	(3,500)	205,320
Number of Grants 43 5 1 8	Grants to	Institutions			Total 2024 £ 71,954 73,150 643 11,357
	Awarded - 73,150 750 11,357	Refunded £ - - (107) -	Awarded £ 73,154 - - -	Refunded £ (1,200) - - -
57	85,257	(107)	73,154	(1,200)	157,104

SARUM ST MICHAEL EDUCATIONAL CHARITY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025

5. GRANT FUNDING (continued)

All expenditure on the charitable activities was from unrestricted funds in 2024 and 2025.

The largest grants made in 2025 were:

£68,000 to the Salisbury Diocesan Board of Education to support the employment of the Specialist Advisor for RE and the means to run the annual RE conference for all schools RE specialists/leads.

£7,500 to the Bridge Youth Project for the innovative and valuable training opportunities given to six newly appointed chaplains on the project by working with them to complete a Certificate in Chaplaincy in Education. As well as providing access to professional supervision four times a year with a trained counsellor for all chaplains on the project and enabling an appropriate level of reflection and support in light of their pastoral role.

The most grant spend was on personal grants, whilst relatively small up to a sum of £2,500 each, £104,235 was granted to 56 individuals, which includes 12 bursaries. The next largest spend on grants was for corporate grants as detailed in the paragraph above, at a total of £75,500. Thirdly were the grants made to schools, again relatively small amounts but made to 18 different schools. Lastly were the parishes receiving £3,400 between three parishes.

6. TAXATION

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

7. NET INCOMING / (OUTGOING) RESOURCES

Net incoming / (outgoing) resources are stated after charging:

Independent examiner's fees	2025 £ 1,507	2024 £ 2,085

SARUM ST MICHAEL EDUCATIONAL CHARITY

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

8. STAFF COSTS

Salaries Social security costs Defined contribution pension costs	2025 2024 £ £ 20,616 19,740 - - 397 93 21,013 19,833

The average number of employees during the year was two (2024: Two).

No employees received emoulments above £60,000 (2024: None).

The charity contributes to a defined contribution pension scheme for employees. The assets of the scheme are held separately from those of the charity. Pension costs charged in the Statement of Financial Activities represent the contributions payable by the charity in the year.

9. TRUSTEES' AND KEY MANAGEMENT PERSONNEL REMUNERATION AND EXPENSES

The trustees neither received nor waived any remuneration during the year (2024: £Nil).

The day-to-day operations of the charity are delegated by the trustees to the clerk who is considered to be key management personnel. The total cost of key management personnel during the year was £12,733.

Trustee travel expenses of £67 were reimbursed during the year to four trustees (2024: £22 to one trustee).

10. TANGIBLE FIXED ASSETS

Cost At 1 January 2025 At 31 December 2025 Depreciation At 1 January 2025 At 31 December 2025 Net Book Value At 31 December 2025 At 31 December 2024	Computer equipment £ - - - - - -	Office furniture £ 173 173 173 173 - -	Office equipment £ 418 418 418 418 - -	Total £ 591
				591 591
				591 -
				-

SARUM ST MICHAEL EDUCATIONAL CHARITY

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

11. FIXED ASSET INVESTMENTS

Endowment funds	Endowment funds	Unrestricted funds	Unrestricted funds
2025 £ 6,421,065 417,832 (451,510) 436,137	2024 £ 6,042,893 1,393,096 (1,385,518) 370,594	2025 £ 118,664 39,928 (59,577) (197)	2024 £ 125,678 65,628 (73,496) 854
6,823,524	6,421,065	98,818	118,664
5,086,188	5,069,035	80,173	106,324
2025 £ 15,480 - 448,479 (131) (417,835) (36,226) -	2024 £ 28,237 - 1,421,690 1,284 (1,399,944) (35,787) -	2025 £ 58,416 197,018 65,220 257 (39,928) (506) (236,000)	2024 £ 47,457 198,540 73,727 250 (65,845) (713) (195,000)
9,768	15,480	44,477	58,416
-	-	44,477	58,416
9,768	15,480	-	-
6,833,291	6,436,545	98,818	118,664

SARUM ST MICHAEL EDUCATIONAL CHARITY

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

12. DEBTORS

Other debtors Prepayments and accrued income	2025 2024 £ £ - - 1,602 1,279 1,602 1,279

13. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Trade creditors Accruals and deferred income Taxation and social security	2025 £ - 13,179 545 13,724	2024 £ - 13,473 601
		14,074

14. OPERATING LEASES - LAND AND BUILDINGS

At 31 December 2025 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	2025 £ 6,567 19,707 - 26,274	2024 £ 2,290 - -
		2,290

Lease costs expensed in the year were £5,334.

SARUM ST MICHAEL EDUCATIONAL CHARITY

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

15. MOVEMENT OF FUNDS - ENDOWMENT

Main fund	Balance at 31/12/2024 £ 6,424,916	Incoming resources £ -	Outgoing resources £ (36,693)	Gains/(Losses) arsing in the year £ 435,618	Transfers £ -	Balance at 31/12/2025 £ 6,823,842

Comparative balances for the year ended 31 December 2024:

Main fund	Balance at 31/12/2023 £ 6,054,731	Incoming resources £ -	Outgoing resources £ (36,093)	Gains/(Losses) arsing in the year £ 406,278	Transfers £ -	Balance at 31/12/2024 £ 6,424,916

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.

SARUM ST MICHAEL EDUCATIONAL CHARITY

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

16. MOVEMENT OF FUNDS - UNRESTRICTED

Balance at 31/12/2024 Incoming resources £ £ Designated fund for grants payable in: 2025 68,000 - 2026 68,000 - 136,000 - General reserve 48,188 199,629 184,188 199,629	Outgoing resources £ - - - (240,348) (240,348)	Gains/(Losses) arsing in the year £ - - - 453 453	Transfers £ (68,000) 1,870 (66,130) 66,130 -	Balance at 31/12/2025 £ - 69,870
				69,870 74,051
				143,921

Comparative balances for the year ended 31 December 2024:

Balance at 31/12/2023 Incoming resources £ £ Designated fund for grants payable in: 2024 70,685 - 2025 68,000 - 2026 - - 138,685 - General reserve 41,854 193,496 180,539 193,496	Outgoing resources £ - - - - (190,932) (190,932)	Gains/(Losses) arsing in the year £ - - - - 1,085 1,085	Transfers £ (70,685) - 68,000 (2,685) 2,685 -	Balance at 31/12/2024 £ - 68,000 68,000
				136,000 48,188
				184,188

The designated funds represent accumulated income set aside for grants approved for payment by 31 December 2026. Transfers are made to/(from) the General Reserve to ensure that sufficient funds are designated for grants payable.

SARUM ST MICHAEL EDUCATIONAL CHARITY

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

17. ALLOCATION OF THE CHARITY NET ASSETS

The net assets are held for the various funds as follows:

Tangible fixed assets Fixed asset investments Current asset investments Debtors Cash at bank and in hand Creditors: amounts falling due within one year Total	Endowment funds £ - 6,833,291 - - - (9,449) 6,823,842	Unrestricted funds £ - 98,818 44,477 1,602 3,299 (4,275) 143,921	Total £ - 6,932,109 44,477 1,602 3,299 (13,724)
			6,967,763

Prior year net assets held for the various funds were as follows:

Tangible fixed assets Fixed asset investments Current asset investments Debtors Cash at bank and in hand Creditors: amounts falling due within one year Total	Endowment funds £ - 6,436,545 - - (2,486) (9,143) 6,424,916	Unrestricted funds £ - 118,664 58,416 1,279 10,760 (4,931) 184,188	Total £ - 6,555,209 58,416 1,279 8,274 (14,074)
			6,609,104

18. RELATED PARTY TRANSACTIONS

There were no related party transactions during the year (2024: None).

SARUM ST MICHAEL EDUCATIONAL CHARITY

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

19. PRIOR YEAR COMPARATIVE STATEMENT OF FINANCIAL ACTIVITIES

INCOME AND EXPENDITURE Note INCOME AND ENDOWMENTS FROM: Investments 2 TOTAL INCOME Investment management costs 3 Charitable activities 4 NET GAINS/(LOSSES) ON INVESTMENTS Realised gains/(losses) on investment 11 NET INCOME/EXPENDITURE Total funds carried forward at 31 December 2024 RECONCILIATION OF FUNDS: Total funds brought forward at 1 January 2024 NET INCOME/(EXPENDITURE) BEFORE GAINS/(LOSSES) ON INVESTMENTS TOTAL EXPENDITURE Transfers between funds NET MOVEMENT IN FUNDS Unrealised gains/(losses) on investment EXPENDITURE ON: Raising funds	Unrestricted funds £ 193,496 193,496 716 190,216 190,932 2,564 231 854 3,649 - 3,649 180,539 184,188	Endowment funds £ -	Total 2024 £ 193,496
		-	193,496
		36,093 -	36,809 190,216
		36,093	227,025
		(36,093) 35,684 370,594 370,185 -	(33,529) 35,915 371,448 373,834 -
		370,185 6,054,731	373,834 6,235,270
		6,424,916	6,609,104