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2020-12-31-accounts

THE FOUNDATION OF ST MATTHIAS

REPORT AND ACCOUNTS FOR THE YEAR ENDED

31 DECEMBER 2020

Registered Charity No 311696

THE FOUNDATION OF ST MATTHIAS

REPORT OF THE TRUSTEES For the year ended 31 December 2020

The Trustees present their report and financial statements for the year ended 31 December 2020.

The financial statements have been prepared in accordance with the accounting policies set out in Note 1 to the accounts and comply with the charity’s trust deed, the Charities Act 2011 and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2015).

Objective and Activities

Objective

The subsisting object of the Foundation of St Matthias is the advancement of education in the area of benefit, in particular the Dioceses of Bath and Wells, Bristol and Gloucester but extending to the whole of the United Kingdom, with a preference for higher or further education; such education contributing to the advancement of the Church of England.

Grant-Making Policy

The Trustees pursue this objective by giving grants towards the education of suitable applicants according to a set of guidelines. Criteria for making grants are contained in Clause 4 (1-6) of the Charity Commissioners' Scheme of 22 August 2011, with amendments on 11 November 2015. The Trustees have a Projects Committee which examines applications in light of these criteria, and make grants to suitable applicants. In November 2015, the Trustees approved a scheme for the awarding of 3-year scholarships and the first of these awards was agreed upon in early 2016, with initial payments being made at the start of the 2016/17 academic year. The Trustees have been pleased with this initial group of scholars and have agreed to extend scholarships into their normal grant-making procedures.

Public Benefit

The Trustees consider that they have complied with the duty in section 17 of the Charities Act 2011 to have due regard to public benefit guidance published by the Charity Commission. The Trustees believe that the objective and the activities undertaken to pursue it, detailed above, fulfil the criteria for demonstrating public benefit.

Covid-19

In mid-late March 2020 the Covid-19 pandemic started to impact activities. The Trustees reviewed the likely impact of the pandemic on the Foundation and identified the following key areas for attention, implementing the changes as detailed:

Achievement and Performance (Review of performance in 2020)

In March 2020 the Trustees reviewed the level of reserves and concluded that an additional £30,000 could be awarded in support of the work of the Diocese, subject to receipt of a suitable application. However, as noted above, the impact of Covid-19 on investment performance led to a reduction in grant funding made available.

1

THE FOUNDATION OF ST MATTHIAS

REPORT OF THE TRUSTEES For the year ended 31 December 2020 (cont.)

During the calendar year 2020 the Trustees considered 76 applications in total. They considered 70 applications for individual grants; including 18 requests for further funding, of which 60 were awarded. Of these, 43 grants were of £1,000 or more, the remainder ranging from £500 to £800. Again, the majority of studies covered theology, social work and counselling, but assistance was also given for other courses which fell within the terms of the Trust deed and which the Trustees considered to be deserving of support. 9 were not awarded a grant (including 2 withdrawals before consideration) and 1 was deferred to March 2021, pending further information.

6 corporate applications were also considered; including 1 request for further funding. Of these 6 applications, 4 were awarded grants ranging from £500 to £5,000; 2 were not awarded.

Grants of £50,000 to each of the three Diocesan Boards of Education for Bath & Wells, Bristol and Gloucester were confirmed: this funding supports the three diocesan resource centres, providing inservice training and training resources for teachers.

Grants totalling £18,000 were also made to the three Diocesan Boards of Education: this funding supports the important work of raising the profile of chaplaincies in FE Colleges and is reviewed by the Trustees.

Scholarships for the 2020/2021 academic year:

Payment continued for 2 scholars:

Niamh Colbrook: £10,000 for her PhD – Theology and Religious Studies at Cambridge University.

Christie Broom: £10,000 for her PhD in the Divinity Faculty at Cambridge University.

Payments started in September 2020 for 2 new scholars:

Szilvi Watson: £10,000 for the up to 3 academic years for her DPhil in Education at the University of Oxford Oliver Peel: £10,000 for up to 3 academic years for his PhD at King’s College London

Scholars are invited to present at the Trustees meeting and renewal of the scholarships for the next academic year is subject to receiving satisfactory reports.

During the year, the following student completed his studies supported by a scholarship that was awarded during the year ended 31 December 2019:

John Moon - PhD in Theology at Durham University.

The total of grants awarded in 2020 is shown in Note 7 on pages 14 and 15.

Financial Review (Financial Review of the Foundation)

The Balance Sheet on page 11 shows the financial position of the Foundation as at 31 December 2020, in accordance with the accounting policies outlined in the notes to the accounts.

Section 4 of the Trusts (Capital and Income) Act 2013 amended the Charities Act 2011 to give permanently endowed charities in England and Wales the power to adopt a total return approach to investment. The Trustees adopted the Total Return Investment approach with effect from 1 January 2018. As a consequence, an Unapplied Total Return Fund of £1m was established with the remaining £6.424m allocated to Funds for Investment tracking CPI each year

In 2014, the investments of the Foundation were split 50:50 between two investment portfolios; CBF Church of England Funds, managed by CCLA Investment Management Ltd, and Investec Wealth & Investment Ltd. The Trustees receive quarterly reports from the investment managers and conduct an annual performance review meeting. During the year the FARM Committee continued to scrutinise the performance of the investment portfolios through the Covid-19 pandemic and concluded that the CCLA model more closely matched the needs of the Foundation. As a consequence, in November 2020 instructions were issued to transfer the whole portfolio into the management of CCLA. At the year-end the majority of the funds were held in the Investec Capital Account, pending transfer to CCLA.

The investments in CBF Funds increased in value during 2020, with the total portfolio increasing by 8.2%, after allowing for withdrawal of £71,000 from the Income Reserve account to fund activities.

The Investec portfolio showed a decrease in value of 0.87% between December 2019 and 2020.

2

THE FOUNDATION OF ST MATTHIAS

REPORT OF THE TRUSTEES

For the year ended 31 December 2020 (cont.)

The Trustees follow the guidelines on ethical investment adopted by the General Synod of the Church of England, and revised by them from time to time. The guidelines were also used by Investec in their purchases on behalf of the Foundation.

Reserves policy

It is the Foundation’s policy not to maintain any unrestricted reserves, as ongoing working capital is available from the endowment under the Total Return policy adopted. The endowment stood at £8.32 million at 31 December 2020, including £1.63 million in the Unapplied Total Return. This is considered an adequate sum for the continued expenditure planned.

Plans for Future Periods

In November 2020 the Trustees met and considered the Budget for 2021 and provisionally agreed that expenditure should broadly be in line with actual expenditure for 2020, as follows:

It was agreed that the budget would be formally confirmed at the first meeting of the Trustees in 2021.

Structure, Governance and Management

Constitution of the Foundation

The Foundation of St Matthias is a charity established by a Scheme of the Charity Commissioners for England and Wales dated 8 October 1979, following the closure and sale of the College of St Matthias, Fishponds, Bristol. The net sale proceeds form the permanent endowment of the Charity, which is registered with the Charity Commissioners under number 311696. The founding scheme was changed to acknowledge that there is no longer any interest in property and to ease the governance of the Foundation. The new scheme was approved by the Charity Commission on 22 August 2011 and adopted by the Trustees in November 2011. In November 2015, the Trustees agreed to reduce the number needed to be present for a meeting to be quorate; this amendment has been approved by the Charity Commission.

Trustees' responsibilities

The Trustees, who are appointed in accordance with the Trust deed (as listed above), meet twice a year. The Trustees have two committees: a Projects Committee and an Audit Committee. During the year the Trustees reviewed the function and remit of the Audit Committee and agreed that it should be re-named the Finance, Audit and Risk Management (FARM) Committee to more appropriately reflect its function. Some powers are delegated to committees; the Projects Committee, within budgetary constraints agreed by the Trustees, are (since March 2014) able to award grants and scholarships to applicants; recommendations of the FARM Committee are ratified by the Trustees. The Projects Committee alone also meets in July.

The Charity Commissioners' Scheme and Trust law require the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Trust and of the incoming and outgoing resources of the Trust for that period. In preparing those financial statements, the Trustees are required to:

The Trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the Trust and to enable them to ensure that the financial statements comply with the Charities Act 2011. They are also responsible for safeguarding the assets

3

THE FOUNDATION OF ST MATTHIAS

REPORT OF THE TRUSTEES

For the year ended 31 December 2020 (cont.)

of the Trust and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Charity Governance Code: In March 2020, the Trustees agreed to review one principle at each future meeting. Accordingly, first principle “Organisation purpose” was reviewed at the November 2020 meeting.

Recruitment and induction of Trustees

Recruitment for the Trust is carried out quadrennially with members appointed as nominative Trustees by the Boards of Education for the Dioceses of Bath & Wells, Bristol and Gloucester, and the National Society (previously the Board of Education of the Archbishops’ Council). Members are also appointed by the Bishop for each of the three Dioceses and, until its demise in 2013, by the St Matthias Society. In addition the Trustees have the option to co-opt three Trustees.

New Trustees are given a copy of the Trustee Induction Pack and associated papers, which include copies of the governing document (scheme), recent Trustee and Projects Committee minutes including the dates of the next meetings, the Trustees' Report and Accounts for the previous year, information on the history of the Trust, objects of the Trust, structure of the Trust including staff, information about the Trustees' role, job descriptions and person specifications of Trustees and honorary officers, contact details, administrative forms and a copy of the Charity Commission publication The Essential Trustee: 'What you need to know' .

Upon appointment, new Trustees are also assigned a mentor from amongst the existing Trustees, to guide them through the initial stages of their trusteeship. In November 2015, Trustees were given options to undertake further training.

Connected Charity

The Trust has no employees. Under previous arrangements (ending 1 December 2014) the Clerk to the Trustees was an employee of the Bristol Diocesan Board of Finance (the BDBF), registered charity number 248502, whose registered office is Hillside House, 1500 Parkway North, Newbrick Road, Stoke Gifford, Bristol, BS34 8YU. With effect from 11 March 2015, the Trustees appointed the BDBF as Clerk.

The Foundation's affairs are administered by the Saint Matthias Administrator (an employee of the BDBF), for which the Foundation paid a fee of £28,879 in 2020, (2019 - £27,539). With effect from July 2019 the BDBF has also provided accountancy services to the Foundation for a fee of £4,785 in 2020 (2019 - £1,920).

The majority of the Trustees are nominated or co-opted from the three benefiting Dioceses.

Risk Assessment

The Trustees operate a risk management policy and, as part of an annual review process, make appropriate amendments to the risk register. Trustees consider internal and external risks and ensure that those over which they have control, such as having policies to secure the Foundation’s assets, are closely followed. The most significant risk is the decline in Total Return. The Trustees have ensured that reputable managers have been appointed to manage the investments that make up the permanent endowment and monitor their performance regularly by receiving and reviewing quarterly performance reports. As noted under the Financial Review, in November 2020, the Trustees decided to consolidate their holdings with CCLA

In March 2020 the Trustees were notified of a potential claim regarding the possibility of an asbestos-related disease in connection with the former St Matthias College building. The information had been forwarded to Ecclesiastical, the then Insurer, who have confirmed that the allegations are being investigated. The matter was reported to the Charity Commission as a Serious Incident Report 7th July 2020, as a matter of good governance. The Charity Commission acknowledged receipt on 10th July (incident number 6349).

Reference and Administration Details

The Foundation of St Matthias is registered with the Charity Commission, charity number 311696. Its principal office is at Diocesan Office, Hillside House, 1500 Parkway North, Newbrick Road, Stoke Gifford, Bristol, BS34 8YU.

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THE FOUNDATION OF ST MATTHIAS

REPORT OF THE TRUSTEES

For the year ended 31 December 2020 (cont.)

Key management personnel remuneration

The Foundation has no employees and no cost of remuneration.

The Trustees are the key management personnel of the charity, in charge of directing and controlling the charity. As noted above, an employee of the BDBF has responsibility for the day-to-day running of the charity. All Trustees give of their time freely and no Trustee remuneration was paid in the year. Details of Trustee expenses are disclosed in Note 2 to the accounts.

Trustees

The Trustees who served during the period from 1 January 2020 to the date this report was approved were as follows:

Name Nominator Dates if part year:
Chair:
The Rt Revd R Springett Bishop of Gloucester
Bishop of Tewkesbury
Nominated:
Mr E Gregory Bath & Wells DBE
Mr N May Bath & Wells DBE To 31 August 2020
Miss S Kindleysides Bath & Wells DBE From 17 November 2020
Mrs P Dodds Bath & Wells DBE
Dr P Smith Bristol DBE
Revd A Everitt Bristol DBE
Mrs E Townend Bristol DBE
Mrs J Ridgway Gloucester DBE From 1 January 2020
Mrs B Gleich Gloucester DBE
Miss J Munn Gloucester DBE From 1 January 2020
Revd J Shellard-James Bishop of Bath & Wells
Revd Dr S Taylor Bishop of Bristol From 1 January 2020
Mrs M Lomas National Society (previously
Board of Education of the
Archbishops’ Council)
Co-opted: Miss K Owen-Jones -
Officers and advisers of the Foundation Officers and advisers of the Foundation
Clerk to the Trustees Bristol Diocesan Board of Finance Limited
Hillside House, 1500 Parkway North, Newbrick Road,
Stoke Gifford, Bristol, BS34 8YU
Accountant Bristol Diocesan Board of Finance Limited
Hillside House, 1500 Parkway North, Newbrick Road,
Stoke Gifford, Bristol, BS34 8YU
Auditors Burton Sweet
The Clock Tower, Farleigh Court, Old Weston Road, Flax
Bourton, Bristol, BS48 1UR
Solicitors Harris & Harris
14 Market Place, Wells, Somerset, BA5 2RE
Investment Advisers CCLA Investment Management Limited
Senator House, 85 Queen Victoria Street,
London, EC4V 4ET
Investec Wealth & Investment Limited
30 Gresham Street, London, EC2V 7QN
Bankers National Westminster Bank plc
40 Queen’s Road, Clifton, Bristol, BS8 1BF

5

THE FOUNDATION OF ST MATTHIAS

REPORT OF THE TRUSTEES

For the year ended 31 December 2020 (cont.)

This report was approved by the Trustees on 16 March 2021 and signed on its behalf by

The Rt Revd R Springett, Bishop of Tewkesbury, Chair 16 March 2021

6

THE FOUNDATION OF ST MATTHIAS

INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES

Opinion

We have audited the financial statements of The Foundation of St Matthias (the “Charity”) for the year ended 31 December 2020 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102: The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

This report is made solely to the Charity’s trustees, as a body, in accordance with section 144 of the Charities Act 2011 and the regulations made under section 154 of the Act. Our audit work has been undertaken so that we might state to the Charity’s trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

In our opinion, the financial statements:

Basis of opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the Charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained in the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements themselves. If, based on the work

7

THE FOUNDATION OF ST MATTHIAS

INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES (Cont’d)

we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities Act 2011 requires us to report to you if, in our opinion:

Responsibilities to the trustees

As explained more fully in the trustees’ responsibilities statement, the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the Charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the Charity or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following:

8

THE FOUNDATION OF ST MATTHIAS

INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES (Cont’d)

In common with all audits under ISA’s (UK) we performed specific procedures to respond to the risk of management override.

We also obtained an understanding of the legal and regulatory framework in which the Charity operates, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements.

As a result of performing the above, our procedures to respond to risks identified included the following:

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert throughout the audit process for any indications of fraud or non-compliance with laws and regulations.

There are inherent limitations in the audit procedures described above and the primary responsibility for the prevention and detection of irregularities including fraud rests with management. As with any audit, there remained a risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at www.frc.org.uk/apb/scope/private.cfm This description forms part of our auditor’s report.

The Clock Tower 5 Farleigh Court Old Weston Road Flax Bourton Bristol BS48 1UR

Burton Sweet Chartered Accountants and Statutory Auditor

Date: 16 March 2021

9

THE FOUNDATION OF ST MATTHIAS

STATEMENT OF FINANCIAL ACTIVITIES For the year ended 31 December 2020

2020
Income
Reserve
Unrest’d
Note
£
Income and Endowments
Investment Income
3
-

Total Income
-

Expenditure
Cost of Raising Funds
Investment Management Costs
-
Expenditure on
Charitable Activities
6
314,875

Total Expenditure
314,875

Net Gains
on Investments
-

Net Income / (Expenditure)
(314,875)
Transfers between funds
314,875

Net movement in funds
-
Total funds brought forward
at 1 January
-

Total funds carried forward
at 31 December
-
 2020
Perm’t
Endow’t
Rest’d
£
233,849

233,849

21,923
-

21,923

352,606

564,532
(314,875)

249,657
8,067,764

8,317,421
 2020
Total
Funds
£
233,849

233,849

21,923
314,875

336,798

352,606

249,657
-

249,657
8,067,764

8,317,421
 2019
Income
Reserve
Unrest’d
£
-

-

-
320,297

320,297

-

(320,297)
320,297

-
-

-
 2019
Perm’t
Endow’t
Rest’d
£
295,302

295,302

24,198
-

24,198

1,037,244

1,308,348
(320,297)

988,051
7,079,713

8,067,764
 2019
Total
Funds
£
295,302

295,302

24,198
320,297

344,495

1,037,244

988,051
-

988,051
7,079,713

8,067,764

All activities relate to continuing operations.

10

THE FOUNDATION OF ST MATTHIAS

BALANCE SHEET As at 31 December 2020

Note
Fixed Assets
Investments
CBF Funds
9
Investec Wealth
10
Current Assets
Debtors
– amounts falling due within one year
11
Cash at bank
12

Current liabilities
Grants awarded not paid
13
Creditors
– amounts falling due within one year
14
Net current assets
Net assets
Funds of the Charity
Permanent endowment funds
16
Unapplied total return fund
16
Unrestricted fund – income reserve
16		 2020
£
£
4,760,007
456,713
5,216,720
22,893
3,096,064
3,118,957
14,675
3,581
18,256
3,100,701
8,317,421
6,678,016
1,639,405
-
8,317,421		 2019
£
£
4,397,517
3,616,988
8,014,505
34,548
41,349
75,897
13,115
9,523
22,638
53,259
8,067,764
6,638,187
1,429,577
-
8,067,764
 2019
£
£
4,397,517
3,616,988
8,014,505
34,548
41,349
75,897
13,115
9,523
22,638
53,259
8,067,764
6,638,187
1,429,577
-
8,067,764
8,067,764

These accounts were approved and authorised for issue by the Trustees on 16 March 2021.

The Rt Revd R Springett Bishop of Tewkesbury, Chair

This Balance Sheet should be read in conjunction with the Notes to the Accounts on pages 12 to 18. The Auditor's Report is on pages 7 to 9.

11

THE FOUNDATION OF ST MATTHIAS

Notes to the accounts For the year ended 31 December 2020

1 Accounting policies

(a) General information

These financial statements comprising the Statement of Financial Activities, the Balance Sheet and the related notes 1 to 16 constitute the individual financial statements of The Foundation of St Matthias for the financial year ended 31 December 2020. The financial statements have been presented in Pounds Sterling as this is the functional currency of the charity and all values are to the nearest pound.

The Foundation of St Matthias is a charity, registered in England & Wales with a registered number of 311696. The Registered Office is Hillside House, 1500 Parkway North, Newbrick Road, Stoke Gifford, Bristol BS34 8YU, which is also the principal office of the charity. The principal activity of the charity continued to be the advancement of education contributing to the advancement of the Church of England.

(b) Statement of Compliance

The financial statements have been prepared in accordance with FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (FRS 102).

(c) Basis of preparation and assessment of going concern

The financial statements have been prepared in accordance with the historical cost convention (except for investments which have been included at fair value), in accordance with the Charities Act 2011 and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2015) - (Charities SORP (FRS 102)) and applicable accounting standards (FRS102).

The Foundation constitutes a public benefit entity as defined by FRS 102.

The Trustees have considered the implications of the Covid-19 pandemic in assessing the Charity’s ability to continue as a going concern. Please see the Trustees Report for further details. The Trustees consider that there are no material uncertainties about the Foundation’s ability to continue as a going concern. The Trustees operate a total return policy in order to achieve greater flexibility to manage the available resources, in both the short- and longer-term.

(d) Fund accounting

The nature and purpose of each fund are explained in note 16.

(e) Irrecoverable VAT

The Foundation is not registered for VAT. All irrecoverable VAT is charged against the expenditure heading for which it was incurred.

(f) Investment income

Investment income is credited to the Unapplied Total Return in the year in which the payment is due.

Investments with CBF pay dividends on investments held at the end of each quarterly qualifying period, with payment made thereafter.

Investec receives interest and dividends when paid in respect of investments held, and pays these over at the end of each calendar quarter. Interest from fixed interest investments earned but not paid at the year-end is accounted for as due.

(g) Expenditure

All expenditure is accounted for on an accruals basis. All expenses including support costs and governance costs are allocated or apportioned to the applicable expenditure headings. For more information on this attribution refer to note (j) below.

(h) Investment Management costs

Investments managed by CCLA are not subject to a specific management cost, this being reflected in the market value of the investments. Investments managed by Investec are, however, subject to a management cost, which is charged to the Unapplied Total Return in the year to which the cost relates.

12

THE FOUNDATION OF ST MATTHIAS

Notes to the accounts For the year ended 31 December 2020 (cont)

(i) Grants

All expenditure is charged to the income reserve in the year in which the grant has been communicated to the recipient. Although the scholarship awards are generally for the whole of a 3-year course of study, further years’ awards are conditional on the receipt of a satisfactory report from each student and are therefore not accrued for beyond the end of the academic year.

(j) Support Costs

As noted in the Trustees' Report, the Foundation's affairs are administered by the Saint Matthias Administrator, an employee of the Bristol Diocesan Board of Finance. It is estimated that 75% of the fee represents the day-to-day administration and the remaining 25% represents costs relating to the governance of the Foundation, being costs in respect of the strategic and constitutional matters of the charity. Also charged to governance are audit, trustees’ meeting and travel costs and the costs of any professional advice received regarding the constitutional matters of the charity.

(k) Fixed Asset Investments

Investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date using the closing quoted market price. The statement of financial activities includes the net gains and losses arising on revaluation and disposals throughout the year.

The Foundation does not acquire put options, derivatives or other complex financial instruments.

The main form of financial risk faced by the charity is that of volatility in equity markets and investment markets due to wider economic conditions, the attitude of investors to investment risk, and changes in sentiment concerning equities and within particular sectors or sub sectors.

(l) Gains and Losses on investments

Gains or losses on investments are taken directly to the Unapplied Total Return. Such gains or losses represent the difference between the opening market value and the market value at the date of disposal or 31 December 2020.

(m) Financial Instruments

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. All of the charity’s basic financial instruments are measured initially at cost and then subsequently measured at amortised cost with the exception of the fixed asset investments which are measured at fair value through the profit and loss.

Cash held for the purchase of further investments by Investec is included with other Cash at Bank.

(n) Areas of judgement

The preparation of the financial statements requires management to make some judgements and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for income and expenditure. The key area of judgement is whether scholarship grants should be accrued for at year end. Where these are conditional, they have been disclosed as a commitment in note 15 and only accrued for once the conditions have been met.

13

THE FOUNDATION OF ST MATTHIAS

Notes to the accounts For the year ended 31 December 2020 (cont)

2 Trustees' remuneration and expenses

The Trustees receive no remuneration from the Foundation. Travelling and other out of pocket expenses are reimbursed as necessary, and these amounted to £122 paid to 2 Trustees in 2020 (2019 - £1,083 paid to 3 Trustees).

3
Investment income
CBF Funds Dividends
Investec Interest & Dividends
Investec Deposit Fund Interest
Bank Interest		 2020
2019
£
£
134,002
143,956
99,766
151,148
21
20
60
178
233,849
295,302

4 Staff Costs

The charity has no employees and therefore has incurred no staff costs.

5 Related Party Transactions

The Dioceses of Bath & Wells, Bristol and Gloucester are related parties to the charity. Grants awarded to the Dioceses are shown in Note 7. The Diocese of Bristol (the Bristol Diocesan Board of Finance Limited) is the Clerk to the Foundation and was paid £28,879 (2019 £27,539) for the management of the Foundation. From 01 July 2019, the Bristol Diocesan Board of Finance Limited took on the role of accountant to the Foundation for a fee of £4,785 in 2020 (2019 - £1,920). There were no outstanding amounts at year end.

6
Expenditure on Charitable Activities
Grants (note 7)
Support Costs (note 8)
7
Grants
In 2020 the Trustees made the following grants:
Grants to Institutions
To Bath & Wells, Bristol and Gloucester Dioceses:
£50,000 each
To Bath & Wells, Bristol and Gloucester Dioceses:
£6,000 each for Further Education Officers
1 corporate grant (2020 – 0) of less than £1,000
3 corporate grants (2019 – 4) of £1,000 or more
Grants to Individuals
17 personal grants (2019 – 22) of less than £1,000
43 personal grants (2019 – 33) of £1,000 or more
5 scholarship grants (2019 – 7) of £1,000 or more
Scholars’ travel
Previous year grants not taken up		 2020
2019
£
£
276,735
283,659
38,140
36,637
314,875
320,296
2020
2019
£
£
150,000
150,000
18,000
18,000
500
-
10,500
21,410
179,000
189,410
9,300
11,410
51,456
65,730
40,000
17,000
237
584
(3,258)
(475)
97,735
94,249
276,735
283,659

14

THE FOUNDATION OF ST MATTHIAS

Notes to the accounts For the year ended 31 December 2020 (cont)

7 Grants (continued)

All grants awarded relate to the advancement of education.

The Charity has made grants where the following trustees have or had an interest during the current year

Mr E Gregory Diocese of Bath & Wells Diocesan Director of Education
Mr N May Diocese of Bath & Wells Diocesan Secretary (to 31
August 2020)
Miss S Kindleysides Diocese of Bath & Wells Chief Executive (from 17
November 2020)
Mrs P Dodds Diocese of Bath & Wells Diocesan Schools Advisor
Mrs E Townend Diocese of Bristol Diocesan Director of Education
The Revd Dr S Taylor Diocese of Bristol Director of Ministry Development
The Rt Revd R Springett Diocese of Gloucester Bishop of Tewkesbury
Bishop of Tewkesbury
Mrs J Ridgway Diocese of Gloucester Head of Finance
Miss J Munn Diocese of Gloucester Deputy Director of Education
2020 2019
8 Support costs £ £
Management charge – administering the Foundation 21,659 20,654
Management charge – governance 7,220 6,885
Trustees’ travel and catering 356 2,241
Audit and accountancy 3,466 3,308
Bank charges 34 89
Professional fees 5,225 3,460
Sundry expenses 180 -
38,140 36,637

Governance costs included in the above amounted to £37,570, this includes, £28,879 for administration, £3,466 for audit and £5,225 for accountancy services. In the prior year, governance costs amounted to £34,307, this included £27,539 for administration, £3,308 for audit and £3,460 for accountancy services.

9
Movement in CBF Investments
Investments – CBF Funds comprise
Market value brought forward at 1 January
Add additions at cost
Less disposals at carrying value
Add net gain on revaluation
Market value carried forward at 31 December
CBF Investment Fund
CBF Global Equity Fund		 £
£
4,397,517
3,771,760
-
532,521
(71,000)
(440,246)
433,490
533,482
4,760,007
4,397,517
£
£
3,460,848
3,306,139
1,299,159
1,091,378
4,760,007
4,397,517

15

THE FOUNDATION OF ST MATTHIAS

Notes to the accounts For the year ended 31 December 2020 (cont)

2020
2019
10 Movement in Investec Wealth Investments £
£
Market value brought forward at 1 January 3,616,987 3,249,946
Add additions at cost 534,628 167,943
Less disposals at carrying value (3,614,026) (191,297)
Add net (loss) / gain on revaluation (80,876) 390,395
Market value carried forward at 31 December 456,713 3,616,987
Investments – Investec Wealth comprise £
£
UK Fixed Interest - 191,910
UK Equities - 1,971,945
Overseas Equities - 543,565
Property 456,713 624,147
Infrastructures - 285,420
456,713 3,616,987
2020
2019
11 Debtors £
£
Investment income awaiting payment 22,893 34,548
2020
2019
12 Cash at Bank £
£
Investec Wealth 3,071,887 20,642
NatWest Bank 24,177 20,707
3,096,064 41,349
The balance held at Investec Wealth at the year end relates to funds from investments sold
and pending transfer to the CCLA portfolio.
2020
2019
13 Grants awarded not yet paid £
£
Corporate and Personal grants 2,675 7,615
Scholars 12,000 5,500
14,675 13,115
2020
2019
14 Creditors £
£
Investment Management costs - 6,223
Recharged Expenses 115 -
Audit Fees 3,466 3,300
3,581 9,523
2020
2019
15 Commitments £
£
The scholarship awards, subject to satisfactory review, will be paid as follows:
Within one year:
one term of academic year 2021/22 12,000 8,000
Beyond one year:
two terms of academic year 2021/22 18,000 12,000
academic year 2022/23 20,000 -
38,000 12,000

16

THE FOUNDATION OF ST MATTHIAS

Notes to the accounts For the year ended 31 December 2020 (cont)

16 The Funds of the Charity

With effect from 1 January 2018 the Trustees adopted a total return approach to investment. On transition to this approach an Unapplied Total Return Fund of £1,000,000 (one million pounds) was created.

The Unapplied Total Return Fund comprises that part of the total return on the Charity’s permanent endowment investments which has not yet been allocated by the Trustees to either the General Fund or the Permanent Endowment Fund. At the end of each financial year a transfer is made to the Fund for Investment equating to the growth of the funds in line with CPI. A further transfer is made to the Unrestricted Income Reserve to cover the operational costs of the Foundation for the year. The Trustees can decide the whether the remaining balance on the fund can be carried forward if not needed or allocated to be spent as income or reinvested in the Permanent Endowment Fund in a particular year.

For the year ended 31 December 2020, £314,875 was transferred from the Unapplied Total Return Fund to the Unrestricted Income Reserve. The value of the remainder of the Permanent Endowment was preserved by a transfer of £39,829 from the Unapplied Total Return to the Trust for Investment.

As at 1 January 2020
Investment return: dividends and interest
Investment management costs
Investment return:
Gains on investment
Recoupment of trust for investment
Unapplied total return allocated to
income in the reporting period
As at 31 December 2020
Comparative Figures
As at 1 January 2019
Investment return: dividends and interest
Investment management costs
Investment return:
Gains on investment
Recoupment of trust for investment
Unapplied total return allocated to
income in the reporting period
As at 31 December 2019
Represented by
CBF Funds
Investec Wealth
Other net current assets		 Fund for
Investment
£
6,638,187
-
-
-
39,829
-		 Unapplied
Total
Total Return Endowment
£
£
1,429,577
8,067,764
233,849
233,849
(21,923)
(21,923)
352,606
352,606
(39,829)
-
(314,875)
(314,875)
1,639,405
8,317,421
6,678,016
Fund for
Investment
£
6,552,998
-
-
-
85,189
-		 Unapplied
Total
Total Return Endowment
£
£
526,715
7,079,713
295,302
295,302
(24,198)
(24,198)
1,037,244
1,037,244
(85,189)
-
(320,297)
(320,297)
1,429,577
8,067,764
6,638,187
2020
2019
£
£
4,760,007
4,397,517
456,713
3,616,987
3,100,701
53,252
8,317,421
8,067,764

17

THE FOUNDATION OF ST MATTHIAS

Notes to the accounts

For the year ended 31 December 2020 (cont)

16 The Funds of the Charity

Of the balance on the permanent endowment reserve at 31 December 2020, £3,949,293 (2019 £3,293,100) represented the difference between the market value at that date and the cost of the investments presently held.

The fund of the charity arose mainly from the sale of the College of St Matthias, following its closure, plus the proceeds of subsequent sales of assets. The original cost or valuation at the date of the Charity Commission Scheme (October 1979) was £1,648,417, and the value of the Fund for Investment at 31 December 2020 reflects the gain in the value of the investments since then using CPI as a point of reference.

The Unrestricted Income Reserve represents the operational cost of the Foundation, the total of which is covered by a transfer from the Unapplied Total Return Fund at the year end.

18