THE FOUNDATION OF ST MA￿HlAs REPORT AND ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2024 Registered Charity No 311696 THE FOUNDATION OF ST MAThHIAS REPORT OF THE TRUSTEES For the year ended 31 December 2024 The Trustees present their report and financial statements forthe year ended 31 December 2024. The financial statements have been prepared in accordan￿ 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 2019). Ob'ective 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 suitsble 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 against these criteria and makes grants to suitable applicants. Public Benefrt 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, fvlfil the criteria for demonstrating public benefit. Achievement and Performance - Review of erforn)ance In 2024 In November 2023 the Trustees agreed to the 2024 budget levels. During the calendar year 2024. the Trustees Gonsidered 71 applications for grants (excluding scholarships- see below). 66 of these were for individual grants, which included 13 requests for further funding. 42 grants were awarded, of these, 36 were of £1,000 or more, the remainder ranging from £500 to £900. 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 Foundation deed and which the Trustees considered to be of deserving support, including education, vocal studies, law degree and the arts. 24 applicants were not awarded grants, 1 withdrew prior to the allocation and 1 applicant did not take up their grant due to ill health. 5 corporate applications were considered. Of these, 2 applications were awarded grants ranging from £2,500 to £10.000. Grants of £50,000 to each of the 3 Diocesan Boards of Education for Bath & Wells, Bristol and Gloucesterwere confirmed.. this funding supports the three diocesan staffing teams to provide advisers and strategic leads for Christian character and RE. Grants totaling £15,000 were also made to the 3 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. THE FOUNDATION OF ST MArrHIAS REPORT OF THE TRUSTEES For the year ended 31 December 2024 Scholarshi s forthe 202412025 academic ear. During the calendar year 2024 the Trustees considered 20 applicats'ons. They shortlisted 5 candidates for interview (only 4 attended) and awarded 3 scholarships. Payments totalling £33,500 continued for 5 ongoing part-time scholars., Final payments totalling £10,000 are to be made to 1 scholar completing studies in April 2025., One scholar has moved from part time to full time and payments totalling £10,000 are to be made in this academic year The total of grants awarded in 2024 is shown in Note 7 on page 15. Financial Review Financial Review of the Foundation The Balance Sheet on page 11 shows the financial position of the Foundation as at 31 De￿mber 2024, in accordan￿ with the accounting policies outlined in the notes to the accounts. With effect from 1 January 2018 the Trustees adopted the Total Retum Investment approach consistent with the provisions of Section 4 of the Trusts (Capital and Income) Act 2013. Consequently, an Unapplied Total Return Fund of £1m was established with the remaining £6.424m allocated to Funds for Investment tracking CPI each year. The Foundation's investment portfolio is held with CCLA Investment Management Ltd (CCLA). The Trustees re￿1ve quarterly reports from the investment manager and conduct an annual performance review meeting at the Trustees meeting in November. The value of the total investment portfolio increased by £253,564 during 2024, after allowing for withdrawal of £150,500 from the Investment Fund account to fund aGtivities. The Trustees follow the guidelines on ethical investmentadopted by the General Synod of the Church of England and revised by them from time to time. Reserves oli¢ 2024 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 £8,901,746 at 31 December 2024, including £609.280 in the Unapplied Total Return. This is considered an adequate sum for the continued expenditure planned During 2024 the Trustees commenced a review of the reserves policy in order to set agreed parameters for grant funding within which they can operate, whilst maintaining adequate reserves. The review was completed, and a Reserves policy agreed by the Board of Trust&s in November 2024. The Reserves policy provides for 3 months of forecast operating costs, including redundancy costs, the remaining temi of scholarships where committed and the outstanding Diocesan Allocation and FE Funding for the current financial year, based on a pre agreed budget and after forecast income streams have been accounted for. As at the 31 December 2024 the Reserve required was £171,156. A review of the reseNes will be undertaken on an annual basis to ensure the level of reserve is appropriate based on future plans and known risk factors. Plans for Future Periods In September 2024 the Trustees held an Away Day at which they reviewed the outcomes from a similarworkshop in 2023 considering how the activities of the Foundation might develop to maximise its potential impact. A Strategic Plan in the form of a road map has been developed and has been updated as a result of the work completed in September 2024. THE FOUNDATION OF ST MATTHIAS REPORT OF THE TRUSTEES For the year ended 31 December 2024 In April 2024 the Trustees considered the Budget for 2025 to 2028 and agreed that Grants should b'roadly be as follows for 2025= Diocesan Allocations £57,600 (per di0￿se). FE £7,500 (per di0￿se), and Grants and scholarship budget £130,000. structure Governance and Mana ement 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 from 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 propety 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. Subsequent amendments to the scheme have been approved by the Charity Commission. Trustees. responsibilities The Trustees, who are appointed in accordance with the Foundation Sd￿7￿ (as listed above), meet twice a year. The Trustees have two committees: a Projects Committee and the Finance, Audit and Risk Management (FARM) Committee. Some powers are delegated to committees as follows: The Projects Committee awards grants and scholarships to applicants, subject to budgetary constraints agreed by the Trustees. The FARM Committee considets the financial control arKI govemaTh2 of Ihe Foundation and recommendations are rats'fied by the Trustees. In addition to the Trustees board's ttvice-yearly meetings, the Projects Committee and the FARM Committee meet 3 times per year. 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 Foundation's affairs and of the incoming and outgoing resources of the Foundation for that period. In preparing those financial statements, the TrUSt￿S are required to: select suitable accounting policies and then apply them consistently,. observe the methods and principles in the Charities SORP., makejudgements and estimates that are reasonable and prudent state whether applicable accounting standards have been followed. subjeGt to any material departures disclosed and explained in the financial statements,. and prepare the financial statements on a going concern basis. unless it is inappropriate to presume that the Foundation will continue to exist. The Trustees are responsible for keeping proper accounting records, which disclose with reasonable accuracy at any time the Iinancial position of the Foundatson, and to enable them to ensure that the financial statements comply with the Charities Act 2011. They are also responsible for safeguarding the assets of the Foundation and hence for taking reasonable steps for the prevention and detection of fraud and other irregulartties THE FOUNDATION OF ST MArrHIAS REPORT OF THE TRUSTEES For the year ended 31 December 2024 Charity Governance Code In April 2024 the initial Charity Governance Code review was finalised and approved by the Board and will be reviewed annually. Recruitment and Induction of Trustees Recruitment for the Foundation 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 Trustee Induction Pack and associated papers, which include copies of the governing document (scheme), recent Trustee, FARM Committee 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 Foundation, objects of the Foundation, structure of the Foundation including staff, information about the Trustees, role, job descriptions and person specifiGations 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. Connected Charity The Bristol Diocesan Board of Finance (BDBF), charity number 248502, whose registered address is Hillside House, 1500 Parkway North, Newbrick Road, Stoke Gifford. Bristol, BS34 8YU, provides IT services to the Foundation under a servi￿ Level Agreement. The majority of Trustees are nominated or co-opted from the three benefiting Dioceses. Risk Assessment The Trustees operate a risk management policy and, as part of a review process by the FARM Committee and annual review by the Trustees, make appropriate amendments to the Risk Register. Trustees consider internal and extemal 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. During 2024 an Investrnent Policy was agreed by the Trustees and as part of this policy 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 perfomiance reports and annual attendance at the Trustees meeting. As part of the Investment Policy a review of the Investment Managers on a tri annual basis is required, which will next take pla￿ in 2025. Reference and Administration Details The Foundation of St Matthias is registered with the Charity Commission, charity number 311696.lts principal ofFice is at Diocesan Offi￿, Hillside House. 1500 Parkway North. Newbrtck Road, Stoke Gifford, Bristol, BS34 8YU. Key Management Personnel and Remuneration In October 2022 the Foundation became an employer. It currently employs 2 personnel, equating to 1.2 Full Time Equivalents {3 personnel, 1.7 FTE- 2023)- the Chief Operating Officer{COO) and Clerk to the Trustees. The Finance Manager is an extemal contractor. The key management personnel are paid an annual salary of £50,035 and employers. pension of £5,244. THE FOUNDATION OF ST MATTHIAS REPORT OF THE TRUSTEES For the year ended 31 December 2024 Trustees The Trustees of the Charity are in charge of directing and controlling the Charrty. The COO, Clerk and Finance Manager have 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. The Trustees who served during the period from l January 2024 to the date of this report was approved were as follows" Role Chair former Chair current Nominated Name The Rt Revd R Springett Bisho of Tewkesbu The Rt Revd N Wth( Bisho of Swindon MrEGre Mrs P Cosh Revd J Shellard-James Dr P Smith Revd A Everitt Mrs E Townend Revd Dr S Ta lor Mrs J Borgeaud Nominator Bishop of GIOU￿ster Dates if art To May 24 ear Bishop of Bristol From 17th April 2024 Bath & Wells DBE Bath & Wells DBE Bisho of Bath & Wells Bristol DBE Bristol DBE Bristol DBE Bisho of Bristol Gloucester DBE From 171h A ril 2024 To October 2024 From 22nd November 2023 Mrs B Gleich Ms L Gardner Revd Leonard Browne Gloucester DBE Gloucester DBF Bishop of GIOu￿ster From 20th November 2024 From1PA Revd Sharon Roberts Mrs M Lomas Bath & Wells DBE National Society (previously Board of Education of the Archbisho s, Council ril 2024 CO-O ted= Ms K Owen-Jones THE FOUNDATION OF ST MArrHIAS REPORT OF THE TRUSTEES For the year ended 31 December 2024 Officers and Adviso￿ of the Foundation Chief Operations Officer Caroline Mcconnell Diocesan Office, Hillside House, 1500 Parkway North, Newbrick Road, Stoke Gifford, Bristol, BS34 8YU Sarah Haughan Diocesan Office, Hillside House, 1500 Parkway North, Newbrick Road. Stoke Gifford, Bristol, BS34 8YU Eltzabeth Britton Di0￿san Office. Hillside House, 1500 Parkway North, Newbnck Road, Stoke Gifford, Bristol, BS34 8YU Clerk to the Trustees Finance Manager Auditors TC Group First Floor Premier House. 127 Duckmoor Road, Ashton Gate, Bristol, BS3 2BJ Solicitors Harris & Ha￿lS 14 Market Place. Wells, Somerset, BA5 2RE Investment Advisers CCLA Invesbnent Management Limited Senator House, 85 Queen Victoria Street, London. EC4V 4ET Bankers National Westminster Bank PIC 45 to 49 Broadmead, Bristol, BS13EU This report was approved by the Trustees on the 9th April 2025 and signed on its behalf by. The Rt Revd N Warwick. Bishop of Swindon, Chair. THE FOUNDATION OF ST MArrHIAS INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES For the year ended 31 December 2024 Opinion We have audited the financial ststements of The Foun'dation of St Matthias (the 'Charity") for the year ended 31 December 2024, which comprise the Statement of Financial Activities, the Balance Sheet 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 UKand Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion. the financial statements.. give a true and fair view of the state of the Charity's affairs at 31 December 2024 and of its income and expenditure for the year then ended., have been properly prepared in accordance with the United Kingdom Generally Accepted Accounting Pracb'ce,. have been prepared in accordance with the requirements of the Charities Act 2011. Basls of oplnlon We conducted our audit in accordance with International Standards on Auditing (UK) {ISAs (UKII 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 8s a going concern for a period of at least ￿e1ve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilits'es of the Trustees with respect to going concern are described in the relevant sections of this report. Other Informatlon The Trustees are responsible for the other information. The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assuranGe conclusion thereon. In connection with our audrt of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements, or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement of the other informats'on. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. THE FOUNDATION OF ST MATTHIAS INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES For the year ended 31 December 2024 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.. sufficient accounting records have not been kept., or the financial statements are not in agreement with the accounting records., or we have not received all the information and explanations we require for our audit. Responsibilities to the Trustees As explained more fully in the Trustees, responsibilities statement, the Trustees are responsible for the preparation of the financial ststements 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. Audltorfs responslbllltles for the audit of the financlal statements We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder. Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are freefrom material misstatement, whether due to fraud orerror, 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 Gonducted in accordance with ISAS (UK) will always detect a material misstatement within it. Misstatements can arise from fraud or error and are considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at.. http.'Ilww.frc.org.ukJauditorsresponsibilities. This description forms part of our auditorfs report. Irregularities, including fraud, are instances of non-compliance with laws and regulations. The extent of which our procedures are capable of detecting irregularities, including fraud, is detsiled below. Extent to which the audit was considered capable of detecting Irregularities. including fraud The objectives of our audit, in respect to fraud, are.. to identify and assess the risks of material misstatement of the financial statements due to fraud. to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses. and to respond appropriately to fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and its management. Our approach was as follows.. We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general sector experience, and through discussion with the Trustees and other management (as required by auditing standards}, and 10 THE FOUNDATION OF ST MATTHIAS INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES For the year ended 31 December 2024 discussed with the Trustees and other management the policies and procedures regarding compliance with laws and regulations (see below)., We identified the following areas as those most likely to have such an effect.. health and safety,. General Data Protects'on Regulation (GDPR)., fraud,. bribery and corruption. and employment law. Auditing standards limit the required audit procedures to identify non- Complian￿ with these laws and regulations to enquiry of the Trustees and other management and inspection of regulatory and legal correspondence, if any. The identified actual or suspected non-compliance was not sufficiently significant to our audit to result in our response being identffied as a key audit matter. We considered the legal and regulatory frameworks directly applicable to the financial statements reporting framework (the Charities Act 2011>. taxation legislation and data protection, anti-bribery, employment, environmental and health and safety legislation. We considered the nature of the Charity's operations, the control environment and financial performance. We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit; We considered the procedures and controls that the Charity has established to address risks identified, or that otherwise prevent, deter and detect fraud,. and how senior management monitors those programmes and controls. Based on this understanding we designed our audit procedures to identify non