## **BISHOP WORDSWORTH EDUCATIONAL TRUST (Registered Charity Number 309502)**
## **REPORT OF THE TRUSTEES**
## **AND**
## **STATEMENT OF ACCOUNTS**
## **FOR THE YEAR ENDED 31 DECEMBER 2020**
## **CONTENTS**
Page
1. - 2. Trustees' Report
3. Statement of Financial Activities and Balance Sheet
4. - 7. Notes to the Accounts
8. Independent Examiner's Report
**BISHOP WORDSWORTH EDUCATIONAL TRUST**
## **TRUSTEES' REPORT FOR THE YEAR ENDED 31 DECEMBER 2020**
## **LEGAL STATUS**
The Trust is a registered charity, number 309502. It was established by a Conveyance dated 16 August 1898 which is the Governing Instrument as modified by a Charity Commission Scheme dated 12 May 1977. By an Order dated 14 September 2006 the Charity Commission has given the trustees a general authority to amend the trusts of the charity.
## **TRUSTEES**
The following served as the managing trustees during the year and to date:
Mrs S Hallis - Co-opted
Mrs J Tubbs (Director of Education) - Co-opted
Nominated trustees:
The Rev K Inglis (Salisbury Churches)-app Chairman May 2020 Mr P Musselwhite (SDBF)- app Vice Chairman May 2020 The Rev Canon E Probert (Dean and Chapter of Salisbury)
The Rev Dr S Wood ( rep of the Bishop of Salisbury) - resigned August 2021
Ms E Ashmead - ex officio
The trustees are appointed in accordance with the Governing Instrument; one person appointed by and representing the Bishop of Salisbury; one person nominated by the Dean and Chapter of Salisbury; one person nominated by the Rectors of certain Salisbury parishes; one person nominated by the Salisbury Diocesan Board of Finance (SDBF) and two people coopted by the preceding four.
The Salisbury Diocesan Board of Finance is custodian trustee of the Charity.
## **CLERK TO THE TRUSTEES**
Miss C Johnson, c/o Church House, Crane Street, Salisbury Wilts SP1 2QB
## **ADVISERS**
Independent Examiner Mrs N A Halls FCA, Fletcher & Partners, Bridge Street, Salisbury SP1 2LZ Property Advisers Myddelton & Major 49 High St, Salisbury SP1 2PD Investment Manager: CCLA Investment Management Ltd, Senator House, 85 Queen Victoria St, London EC4V 4ET
## **OBJECTS AND ACTIVITIES**
The Charity's purpose is to promote education in connection with the Church of England. The policy is to provide grants to maintained schools in the Diocese of Salisbury for creative projects in support of Christian learning across the curriculum. To achieve this, the trustees provide a detailed grant application form with appropriate guidance to assist and encourage appropriate applications. The Clerk receives grant applications as well as dealing with all correspondence. The trustees usually meet once a year in the Spring to consider grant applications. The Charity's accounting records are maintained by the staff of Salisbury Diocesan Board of Finance, which also prepares the annual financial statements.
## **ACHIEVEMENTS AND PERFORMANCE**
During the year no grants were awarded to schools. This was in part due to the Trust changing its grant-making schedule (including submission deadlines for schools to apply for grants) and in part due to the unusual nature of the interruption to schools imposed by the Coronavirus pandemic and the associated closures. The Trust made a full round of grants following its meeting in January 2021.
The trustees have complied with their duty to have due regard to the guidance on public benefit published by the Charity Commission in exercising their powers or duties.
The trustees believe that the Trust, by providing financial support to maintained schools to enable them to make additional provision to promote Christianity and Christian values in education, provides a public benefit to all the children attending those schools.
## **FINANCIAL REVIEW**
Income from rents and investments during the year was £28,271 (2019 - £30,561), which remain the Trust's main sources of income. No grants were awarded during the year but the one unpresented cheque was cancelled totalling £372 (2019 - 30 grants made totalling £16,536) with no future grant commitments having been made. Net income before net gains on investments for the year was £25,609 (2019 - surplus £11,065). The net unrealised gain on investments for the year was £5,215 (2019 - £17,203). The value of the property remained the same.
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**BISHOP WORDSWORTH EDUCATIONAL TRUST**
## **TRUSTEES' REPORT FOR THE YEAR ENDED 31 DECEMBER 2020**
## **(continued)**
## **RESERVES POLICY**
The policy is to maintain its assets at the present level so as to generate an income in future years to support its objects.
## **INVESTMENT POLICY**
The policy is to invest its available funds, including monies on deposit, through the CBF Church of England Funds. These are Common Funds established and regulated by the Church Funds Investment Measure 1958 as amended by the Church of England (Miscellaneous Provisions) Measures 1995, 2000, 2006 and 2010. The freehold investment property is leased to Bishop Wordsworth's School.
## **RISKS REVIEW**
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 Charity trustees to prepare financial statements for each 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 the financial statements, the Trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP; - make judgements and estimates that are reasonable and prudent;
- state whether applicable accounting standards have been followed, subject to any material
- departures that must be disclosed and explained in the financial statements;
- prepare the financial statements on the going concern 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 enable them to ensure that the financial statements comply with the Charities Act 2011, the applicable Charities (Accounts and Reports) Regulations, and the provisions of the Charity's schemes. They are also responsible for safeguarding the assets of the charity and taking reasonable steps for the prevention and detection of fraud and other irregularities.
Signed on behalf of the Trustees
Mr P Musselwhite
2
## **BISHOP WORDSWORTH EDUCATIONAL TRUST**
## **(Registered Charity No. 309502)**
## **STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2020**
|Unrestricted
Endowment
Total
Funds
Funds
Funds
Note
2020
2020
2020
**INCOME FROM:**
Investments
2
28,271
-
28,271
**TOTAL INCOME**
28,271
-
28,271
**EXPENDITURE ON:**
Charitable activities
Grants to schools & individuals
3
2,662
-
2,662
**TOTAL EXPENDITURE**
2,662
-
2,662
**Net income/(expenditure) before**
**25,609**
**-**
**25,609**
**net gains/(losses) on investments**
Net gains/(losses) on investments
6
104
5,110
5,215
**NET MOVEMENT IN FUNDS**
25,713
5,110
30,823
**RECONCILIATION IN FUNDS:**
Total funds brought forward
11, 13
49,100
439,179
488,278
Total funds carried forward
10, 12
74,813
£
444,289
£
519,102
£
Unrestricted
Endowment
Total
Funds
Funds
Funds
Note
2020
2020
2020
**FIXED ASSETS:**
Investments
Investment property
7
-
260,000
260,000
Listed investments - CBF Church of
6
1,614
184,289
185,904
England Funds
1,614
444,289
445,904
**CURRENT ASSETS:**
Cash at bank and in hand
CBF Deposit Fund
69,189
-
69,189
Cash held by Salisbury DBF
8
13,757
-
13,757
82,947
-
82,947
**LIABILITIES:**
Creditors: amounts falling due within
one year
9
( 9,748)
-
( 9,748)
**NET CURRENT ASSETS OR LIABILITIES**
73,199
-
73,199
**TOTAL NET ASSETS OR LIABILITIES**
74,813
£
444,289
£
519,102
£
**THE FUNDS OF THE CHARITY:**
1d, 10, 11, 12, 13
Endowment funds
-
444,289
444,289
Unrestricted funds
74,813
-
74,813
**TOTAL CHARITY FUNDS**
74,813
£
444,289
£
519,102
£
**BALANCE SHEET AS AT 31 DECEMBER 2020**|Total
Funds
2019
30,561
30,561
19,497
19,497
**11,065**
17,203
28,267
460,011
488,278
£
Total
Funds
2019
260,000
180,689
440,689
42,419
12,199
54,618
( 7,028)
47,590
488,278
£
439,179
49,100
488,278
£|Total
Funds|Total|
|---|---|---|---|
||||2019|
signed on their behalf by:
Mr P Musselwhite
The notes on pages 4 to 7 form part of these accounts
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**BISHOP WORDSWORTH EDUCATIONAL TRUST**
## **NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2020**
## **1. Accounting Policies**
## a) Accounting convention
The accounts (financial statements) are prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant notes to these accounts. The financial statements have been 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 United Kingdom and Republic of Ireland (FRS 102) and the Charities Act 2011.
The Charity constitutes a public benefit entity as defined by FRS 102.
The trustees consider that there are no material uncertainties about the Charity's ability to continue as a going concern. In this assessment the trustees have considered the impact of COVID-19.The most significant areas of judgement and key assumptions that affect items in the accounts are to do with a valuation of the investment property. With respect to the next reporting period, the year ended 31 December 2021, the most significant areas of uncertainty that affect the carrying value of assets held by the Charity are the level of investment return and the performance of investment markets.
## b) Cash flow
The accounts do not include a cash flow statement because the Charity, as a small reporting entity, is exempt from the requirement to prepare such a statement.
## c) Fund accounting
- Unrestricted funds are available for use at the discretion of the trustees in furtherance of the general objectives of the charity and have not been designated for other purposes.
Endowment funds are permanent trusts whose income is intended for the benefit of the charity. Income from endowment funds is unrestricted.
## d) Income recognition
All income is recognised once the charity has entitlement to the income, there is sufficient certainty of receipt and so it is probable that the income will be received, and the amount of income receivable can be measured reliably.
Income from investments and rental income is included in the year in which it is receivable. Rent paid in advance is carried forward as deferred income.
## e) Expenditure recognition
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to the expenditure, it is probable that settlement will be required and the amount of the obligation can be measured reliably. All expenditure is accounted for on an accruals basis.
Grants payable are charged when the offer is conveyed to the recipient, except in those cases where the offer is conditional, in which case the grant would be recognised as expenditure when the conditions attaching are fulfilled.
## f) Charitable activities
The expenditure on charitable activities includes grants to schools and other organisations plus support costs.
## g) Support costs
Support costs have been differentiated between governance costs and other support costs. Governance costs comprise of all costs involving the public accountability of the charity and its compliance with regulation and good practice.
## i) Fixed asset investments
Investment properties are included in the balance sheet at their open market value and are not depreciated. Listed investments are stated at market value 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.
## j) 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 sales proceeds and opening market value (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). Realised and unrealised gains are not separated in the Statement of Financial Activities.
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## **BISHOP WORDSWORTH EDUCATIONAL TRUST**
## **NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2020**
## k) Cash at bank and in hand
Cash at bank and in hand includes cash on deposit available on demand and cash held by Salisbury Diocesan Board of Finance.
## l) Creditors
Creditors 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 reliably. Creditors are normally recognised at their settlement amount.
## m) Financial Instruments
Fixed asset investments are a form of basic financial instrument and are initially recognised at their transaction cost and subsequently measured at fair value at the Balance sheet date. Investment gains and losses, whether realised or unrealised, are combined and shown in the heading 'Net gains/(losses) on investments' in the Statement of financial activities.
## **2. Income from investments**
|Rents receivable
Dividends
Interest on cash deposits|2020
21,500
6,566
205
28,271
£|2019
23,500
6,872
189
30,561
£|2019|
|---|---|---|---|
All income from investments received in both years was unrestricted.
## **3. Cost of charitable activities**
|Grants to schools|Grants paid
(372)
£
(372)
£
£|Support
costs
2020
(Note 4)
3,034
2,662
3,034
2,662
£|2019
19,497
19,497
£|2019|
|---|---|---|---|---|
All costs of charitable activities in both years were charged to unrestricted funds.
Recipients of major grants 2020:
|Other grants (none more than £500 each)Hindon School grant
**4.**
**Support costs**
Clerk's honorarium
Diocesan financial management fees
Other administrative expenses
Independent examiner's fees|cheque (unpresented)
£
£
Governance
costs
Other
support
costs
-
1,674
-
373
-
237
750
-
750
£
2,284
£
£|(372)
(372)
Total
support
costs
2020
1,674
373
237
750
3,034
|£|Total
support|Total|
|---|---|---|---|---|---|
|||||
costs
2019
1,808
403
162
587
2,960
|
costs|
||||||2019|
## **5. Related party transactions, trustees' expenses and remuneration and key management personnel**
The charity considers its key management personnel comprise the trustees and the Clerk. No remuneration or expenses were paid to any of the trustees during the year (2019- nil). The Clerk received an honorarium of £1,674 (2019 - £1,808). The charity had no other related party transactions during the year (2019 - nil).
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## **BISHOP WORDSWORTH EDUCATIONAL TRUST**
## **NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2020**
|**6.**
**Fixed asset investments - Listed investments**
Market value at 1 January
Gain/(loss) in the year
Market value at 31 December
Historical cost at 31 December
Unrealised gains at 31 December|£
£
£|Unrestricted
funds
2020
1,510
104
1,614
£
205
£
1,409
£|Endowment
Total
funds
funds
2020
2020
179,179
180,689
5,110
5,215
184,289
185,904
£
65,983
66,188
£
118,306
119,716
£|Total
funds
2019
163,486
17,203
180,689
£
66,188
£
114,501
£|Total
funds|
|---|---|---|---|---|---|
||||||2019|
The Trust's policy is to hold all its investments in the CBF Church of England charitable common investment funds with the aim of long term capital and income growth. At 31 December 2020, the value of the investments was represented by 69% (2019:66% ) in the CBF Investment Fund and 31% (2019:34% ) in the CBF Property Fund. The main risk to the Charity from financial instruments lies in the combination of uncertain investment markets and volatility in yield.
## **7.**
|**Freehold property - Investment property**
Market value at 1 January
Market value at 31 December|Endowment
funds
2020
260,000
260,000
£|Total
funds
2020
260,000
260,000
£|Total
funds
2019
260,000
260,000
£|2019|
|---|---|---|---|---|
The Trust is the beneficial owner of property at 97/98 Exeter Street, Salisbury for which the Trust's historical cost is £194. The property is leased to Bishop Wordsworth's School. The current operating lease runs to 5 February 2024 at the rate of £23,500 per annum. At November 2018 the property was formally revalued to £260,000. The basis of valuation was open market value.
## **8. Cash held by Salisbury Diocesan Board of Finance**
The Charity does not hold a bank account in its own name. Banking facilities are operated through a general designated Trusts Account and a separately designated CBF Deposit Fund held in the name of Salisbury Diocesan Board of Finance.
## **9. Creditors: amounts falling due within one year**
|**Creditors: amounts falling due within one year**||||||
|---|---|---|---|---|---|
|Accruals and deferred rental income received in advance
**Analysis of charitable funds**
Analysis of Funds movements
Balance at
01-Jan-20
Income
Endowment funds
439,179
-
Unrestricted funds
49,100
28,271
488,278
£
28,271
£
£|£
Expenditure
-
( 2,662)
(2,662)
£|2020
9,748
Gains and
losses
5,110
104
5,215
|£
£|2019
7,028
Balance at|2019|
|||||31-Dec-20||
|||||444,289
74,813
519,102
||
## **10. Analysis of charitable funds**
## **11. Analysis of charitable funds - previous year**
|Analysis of Funds movements
Endowment funds
Unrestricted funds|£|Balance at
01-Jan-19
Income
422,214
-
37,797
30,561
460,011
30,561
£
£|Expenditure
-
( 19,497)
(19,497)
£|Gains and
losses
16,965
238
17,203
|£|Balance at|
|---|---|---|---|---|---|---|
|||||||31-Dec-19|
|||||||439,179
49,099
488,278
|
6
**BISHOP WORDSWORTH EDUCATIONAL TRUST**
## **NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2020**
## **12. Analysis of net assets between funds**
|Fixed asset investments
Current assets
Current liabilities
Total|£|Unrestricted
Funds
1,614
82,947
( 9,748)
74,813
£|Endowment
Funds
444,289
-
-
444,289
|Total
Funds
445,904
82,947
( 9,748)
519,102
£|Total
Funds|
|---|---|---|---|---|---|
|**13.**
**Analysis of net assets between funds - previous year**
Unrestricted
Funds
Fixed asset investments
1,510
Current assets
54,618
Current liabilities
( 7,028)
Total
49,100
£
£
**14.**
**Financial instruments**
Note
Financial assets measured at fair value through profit and loss:
Investments held at fair value
6
£
Income, expense, gains or losses, including changes in fair value, recognised on:
Gains/(Losses) on Financial assets measured at fair value
6
Interest on cash deposits
2
Income from listed investments
2
£|Endowment
Funds
439,179
-
-
439,179
2020
185,904
185,904
5,215
205
6,566
11,985
|Total
Funds
440,689
54,618
( 7,028)
488,278
£
2019
180,689
180,689
£
17,203
189
6,872
24,264
£|Total
Funds|
|---|---|---|---|
7
**BISHOP WORDSWORTH EDUCATIONAL TRUST**
## **INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2020**
I report to the trustees on my examination of the accounts of the Bishop Wordsworth Educational Trust (the Trust) for the year ended 31 December 2020 which are set out on pages 3 to 7.
## **Responsibilities and basis of report**
As the charity trustees of the Trust you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 ('the Act').
I report in respect of my examination of the Trust's accounts carried out under section 145 of the 2011 Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.
## **Independent examiner's statement**
I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
- accounting records were not kept in respect of the Trust as required by section 130 of the Act; or
- the accounts do not accord with those 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.
Mrs N A Halls FCA Fletcher & Partners Crown Chambers Bridge Street Salisbury
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