**The National Society (Church of England and Church in Wales) for the Promotion of Education**
Annual report and financial statements for the year ended 31 December 2021 Registered Charity number 313070
REFERENCE AND ADMINISTRATIVE INFORMATION
|**Mission Statement**
**Legal structure**
**Patron**
**Co-Presidents**
**Chairman**
**Hon Treasurer**
**Chief Education Officer**
**Offices**
**Telephone**
**Email**
**Website**
**Auditors**
**Bankers**
**Investment Managers**
**Solicitors**|Deeply Christian, Serving the Common Good.
Established 1811
Incorporated by Royal Charter
Supplemental Charters granted 1934, 1972, 1985, 1987, 1997, 2015
Her Majesty The Queen
Archbishop of Canterbury
Archbishop of York
Archbishop of Wales
Rt Revd Paul Butler, Bishop of Durham
Revd Canon Peter Ballard
Revd Canon Nigel Genders
Church House
Great Smith Street
London SW1P 3AZ
020 7898 1066
lisa.osborne@churchofengland.org
www.churchofengland.org
Crowe U.K. LLP
55 Ludgate Hill
London
EC4M 7JW
The Royal Bank of Scotland Plc
Drummonds Branch
49 Charing Cross
London
SW1A 2DX
Lloyds Bank Plc
1 Legg Street
Essex
CCLA Ltd
Senator House
85 Queen Victoria Street
London
SW1E 5JL
JM Finn & Co
4 Coleman Street
London
EC2R 5TA
The Society uses a panel of solicitors who provide advice in line with their
expertise.|
|---|---|
REFERENCE AND ADMINISTRATIVE INFORMATION
## **The Council who served during the year and as at 7 June 2022 are shown below.**
**Chair** Rt Revd Paul Butler, Bishop of Durham **Treasurer** Revd Canon Peter Ballard **Other Council Name Appointed / elected by members** Professor David Ford Archbishops of Canterbury and York Professor Joy Carter (until November 2021) Archbishops of Canterbury and York Canon Simon Lloyd Governing Body of Church in Wales Rt Revd June Osborne (until February 2022) Governing Body of Church in Wales Mrs Rosemary Lyon General Synod Canon Sue Witts (until April 2021) General Synod Revd Jeremy Fletcher Archbishops of Canterbury and York Mrs Marion Plant Archbishops of Canterbury and York Mr Andrew Smith Co-option Canon Dr Addy Lazz-Onyenobi (from June 2021) General Synod Professor Jean Noel Ezingeard (from June 2021) Co-option Ms Sonia Thompson (from November 2021) Co-option Rt Revd Mary Stallard (from February 2022) Governing Body of Church in Wales **Finance, Investment,** Revd Canon Peter Ballard _(Chair)_ Ms Michelle Brissett **Risk & Audit** Ven. Douglas Dettmer **Committee** Revd Canon Nigel Genders Mrs Rosalind Williams Canon Carolyn Lewis **Nominations** Revd Canon Peter Ballard _(Chair)_ **Committee** Mrs Marion Plant Revd Canon Nigel Genders **Chief Education** Revd Canon Nigel Genders **Officer Website** www.churchofengland.org
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## **Introduction**
The is a Church of England and Church in Wales education service. It was founded by Royal Charter in 1811, with supplemental Charters in 1934, 1972, 1985, 1987, 1997 and 2015, to provide education for all, firmly based on the Christian Gospel and Anglican principles. The Charter states that:
_h the_
_principles of the Church of England, in England and in Wales and in any other part of the world where the Church of England or churches in communion with it may be at work. The investments and property and all of the income of the Society shall hence_
The Trustees present their annual report and financial statements for the year ended 31 December 2021. The financial statements incorporate t diary company, Church of England Educational Services Limited. The Trustees have adopted the provisions of the Charities Statement of Recommended Practice (SORP) (FRS 102).
The financial statements have been prepared in accordance with the accounting policies set out in notes to the financial statements Royal Charter, the Charities Act 2011 and Charities SORP (FRS 102).
## **Structure, Governance & Management**
## _Organisation and Decision Making_
The National Society Council met four times during the year. One meeting was held in person, the remaining three being held remotely.
The Finance and Investment Committee, chaired by the Hon Treasurer, oversees the financial affairs of the Society. It has delegated powers from the Council to scrutinise accounts and make recommendations to the Council, and has authorising movement of funds.
The Nominations Committee oversees the appointments to the National Society Council. It meets only when required to fill a Council vacancy or to manage the 5-yearly reconstitution of the Council.
## links with the Society.
The National Society is one of the National Church Institutions (NCIs) and draws on the expertise and resources of various central services including those relating to Finance & Resources, Human Resources, Office Services and IT, Publishing and the Church of England Records Centre.
Under the 2015 Charter, the National Society Council consists of the following members:
- a)
Appointments Committee.
- b) The Chief Education Officer, appointed by the Chair (who will not be a Trustee, but will have right of attendance).
- c) The Treasurer, appointed by the Chair.
- d) Three Trustees appointed by the Archbishops of Canterbury and York after consultation with the General Synod
- e) Two Trustees appointed by the Governing Body of the Church in Wales f) Two Trustees elected by General Synod
- g) Up to three Trustees co-opted for their skills and expertise.
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1
## **Structure, Governance & Management (continued)**
## _Organisation and Decision Making (continued)_
Under the Byelaws, with the exception of the 3 Co-Presidents, no person shall be capable of becoming a member of the Council if at the time of their nomination, appointment, election or co-option they have attained the age of seventytwo years.
## _Relationships_
The Society has a number of relationships with other bodies through which it co-operates to provide a full range of services to Church Schools in England and Wales, together with international links as appropriate.
In particular, the Societ in all matters relating to education. Some .
porating the Hughes and Stevens Bequest), and appoints three Governors, one of whom is the Chair. The Trust prepares its own accounts for approval by the Governors.
A number of other small trusts are administered by the Society following gifts during the nineteenth century. Separate accounts and Charity Commission returns are made for these trusts. The Society has links with other organisations nationally and internationally to enable it to provide services and resources to benefit the work of Christian Education.
## _Trustee Induction and Training_
New Trustees receive full information on the legal basis of the Society and the powers and responsibilities of the Council and its members. The Council was newly constituted in 2015 and when re-constituted, all members of the Council received information about the objects and purposes of the Society.
## _Grant Making Policy_
In general terms the National Society is not a grant making trust. However, from time to time the Society makes a limited number of grants to other bodies to enable those recipients to carry out specific work on behalf of the Society.
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1
## _Risk Management_
Auditors. Members of the Council review likely risk areas and policies adopted on a regular basis.
**----- Start of picture text -----**
Risk area Key mitigating strategies
Significant reduction in funds available to the Investments are diversified with two different managers,
Society, whether through poor investment each investing in a diversified multi-asset portfolio
returns or lack of demand for services, leading
Performance of fund managers are monitored by the
to failure to meet business plans and objectives
Finance and Investment Committee
Management accounts are monitored by the Finance and
Investment Committee to monitor activities against budget
and expectations
Regular review of business plan and objectives taking into
account available resources
The Church schools network is out of sync with Investment in good relationships with major stakeholders
government education policy and the views or
Monitoring of government developments and responding
priorities of the wider Church, leading to a
to consultations as necessary
fragmented response and reduced resource
Regular communications with key stakeholders, in
particular maintaining information flows with dioceses and
schools
Regular reporting to General Synod and House of Bishops
IT resilience and cyber security threats may A pan-NCI business continuity plan is in place which
adversely impact business continuity and encompasses IT disaster recovery
thereby threaten delivery of objectives
Business continuity contingency plans are tested with
emergency contact system and remote working day to
ensure systems work as expected and flag up any potential
issues
A COVID-19 Business Continuity group, which works across
all of the NCIs, has been meeting since 2020
Failure to develop the Foundation work such Foundation well established through online community,
that it is not sustainable successful national conference and regional networks
New NPQ programme bid was successful which will expand
the reach of the Foundation
**----- End of picture text -----**
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## **Objectives and Activities**
The objects of the Society are the promotion, encouragement and support of education in accordance with the principles of the Church of England, in England and Wales and in any other part of the world where the Church of England or churches in communion with it may be at work.
The original aim of the National Society, and the continuing aim of the Society is to provide education to enable the flourishing of children and young people in England and Wales.
The Trustees confirm that they have had regard on public benefit.
## **Achievements and Performance**
The National Society supports the mission of the Church of England as the largest single provider of education in England as supporting the development of the Church It oversees the work of the Church of England Education Office on behalf of both . The strategic plan for 2020-2025 is summarised as follows:
_The Church of and universities by:_
- _i._ _**Developing leaders** who are called, connected and committed to a vision for education which is deeply Christian, serving the common good_
- _ii._ _**Shaping policy** to promote high quality education for all, particularly the poorest and most disadvantaged_
- _iii._ _**Growing faith** amongst children and young people through churches, schools/colleges and households_
underpinned by its vision for education: deeply Christian, serving the common good, expressed through our key values of: wisdom, knowledge and skills; hope and aspiration; community and living well together; dignity and respect. Church schools continue to play a vital role at the heart of their communities.
advance the breadth of work across 12,600 parishes, Diocesan Boards of Education, schools, colleges and 11 Anglican foundation universities. Our vision is to equip a new generation of young people to shape society and contribute meaningfully to an increasingly complex and globalised world.
## **2021 activities**
## **Developing Leaders**
Since publication of our Church of England vision for Education and the launch of the _Church of England Foundation for Educational Leadership_ in 2016, work on leadership development has progressed rapidly.
The Foundation is the mechanism for work on developing leaders and focuses on programmes, networks and research and each of these elements has made considerable progress in 2021 providing much needed opportunities to address the significant challenges arising from the global pandemic, such as the work on mental health and wellbeing as well as a new trauma network.
The National Society prioritised a significant bid to government to become one of the national providers for national professional qualifications (NPQs) and success in this led to the need to rapidly deliver programmes for the whole suite of NPQs. Having recruited, onboarded and started training both Cohort 1 and Cohort 2 of all NPQ Programmes, a full suite which includes NPQ Leading Behaviour and Culture, NPQ Leading Teaching NPQ Leading Teacher Development, NPQ Senior Leadership, NPQ Headship, and NPQ Executive Leadership.
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1
In order to deliver the programme nationally we have established partnerships with nearly 100 Delivery Partners (a blend of Teaching School Hubs, MATs and High performing schools) who are contracted to deliver programmes in their local areas. This includes around a quarter of all Teaching School Hubs nationally. We have recruited nearly 2000 participants onto Cohort 1 and 2.
This year we have invested in the infrastructure that has been needed to scale up our NPQ provision so significantly, as well as building a much larger staff team.
## Key investments include:
- Developing and setting up Salesforce CRM to enable an automated application processing process and data sharing with the DfE
- Setting up Blackboard as the digital learning platform used by participants and facilitators.
- Staffing - including new Programme Officers, Programme Leads, Marketing and Digital Officer, and Regional Delivery Managers.
In addition, we had seven Set Up Milestones agreed with the DfE which were associated with the payments of our setup fees. All of these milestones have been met, with the final milestone due to be met in mid-June 2022.
During 2021 the government required the contract to be retendered so as well as running new programmes for 2,000 participants we have had to devote time to a further bid. We have successfully now been awarded the Framework Agreement for the next five years of NPQ delivery for the above programmes.
## **Shaping Policy (Schools, FE and HE)**
The policy work is a vital element of our core business. The fact that the Church of England and Church in Wales provide a quarter of all primary schools and are statutory providers for 1 million children and young people enables us to have a voice on a range of policy areas. Highlights include the revision of the DBE Measure as well as a complete reshaping of the way Statutory Inspection of Anglican and Methodist Schools (SIAMS) is managed nationally. A new national team for overseeing SIAMS has been successfully recruited and, although inspections had to be suspended for much of the year (because of the impact of Covid-19) there is already recognition that the quality and consistency of inspection has improved as planned.
The place and future of good Religious Education and Collective Worship in England and Wales continued to be a priority for policy work.
The Church of England vision for Further Education (FE) _Vocation, Transformation and Hope_ , was published in April 2021 more formalised connection with a group of FE colleges.
especially through its Anglican foundation universities, continues to be a focus of policy work. This is particularly important in connection to the significant role these universities play in the training of teachers.
## **Growing Faith**
Our vision for Growing Faith has always been one of influencing wider cultural change within the church so that faith development amongst children and young people is something which embraces the whole of life and where, through partnership between church and school, the role of faith in the home is seen as vitally important.
Having led the conversation on such a culture change the National Society has now developed the concept of a Growing Faith Foundation to lead practical programmes, networks and research to help shape ministry with children and young people in churches, schools and households. The Society successfully applied for grants to cover the work of the Growing s ministry.
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1
The connection between the Growing Faith Foundation and the Foundation for Educational Leadership will enable a sharing of staff resource, systems and approach to bring benefit to both.
Developing Younger Leaders and hearing the voice of children and young people is a particular priority for the society and we continue to provide national younger leadership groups, comprising around 250 young people in Primary, Secondary and FE. Each of these young people also receives some leadership training opportunities alongside being part of our developmental work in relation to Growing Faith and a range of other key issues including input into the wider .
## _**Future plans**_
The main priorities for 2022 will be to shape and develop the emerging educational landscape for church schools in England as a result of the government White Paper published in March 2022. Significant structural change is expected with a clear direction of travel to a f focused system is such that the society will need to develop ways to engage effectively at a regional as well as national level.
Further work will be undertaken to ensure the role of the National Society in England and Wales is developed in a way which enables the growth of our three-fold strategy to bring benefit to both England and Wales.
Having developed successful networks of school leaders engaging in issues of equity, diversity and inclusion, we have secured more resource to enable detailed work on leadership development and curricula development in these areas.
The success of securing a large government contract to deliver NPQs and grants to develop the Growing Faith Foundation will require further strengthening of the staff team to sustain the rapid growth that we have enjoyed and ensure that we are well placed to develop other initiatives and programmes to maximise the impact of our vision for education and improve the outcomes for children and young people.
We will continue the
- The development of visionary leadership and networks and programmes to support the development of educational leaders.
- Continued discussion with ministers, negotiation with the Department for Education, including over arrangements for academy conversions, trusts and other collaborative arrangements.
- Improved and new relationships with ministers and other organisations active in the FE and HE sector, ensuring input into a wide range of policy areas.
- Support for individual dioceses in strategic development.
- Support for DBEs as they develop their academies structures and services.
- Support for dioceses reviewing their arrangements to support chaplaincy in FE and HE and individual chaplaincy audits and advice for colleges and universities.
- Availability of National Society contracts of employment for all school staff.
- National oversight of all denominational inspection (SIAMS).
- Responding on behalf of the Church of England to government consultations and to other national agency contacts.
- Supporting school and college chaplains especially through the development of the Growing Faith Foundation.
of many Church schools and colleges.
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1
## **Financial Review**
## _Summary of Results_
Total consolidated income for the year was £1,547,169, being an increase of £94,511 on the previous year (2020: £1,452,568). Total consolidated expenditure for the year was £1,828,477, an increase of £402,510 on the previous year (2020: £1,452,658). Net expenditure for the year was £281,308 before total investment gains of £1,510,201 (2020: Net income of £26,601 before total investment losses of £491,803). ng subsidiary, Church of England Educational Services Limited (CEES), made a profit of £38,078 (2020: £214,033), with a turnover of £626,969 (2020: £674,529) and total expenditure of £588,891 (2020: £460,496).
## _Investment Strategy, Powers and Restrictions_
-term nature of the enterprise. With the help of expert professional advisers, reserves are invested in a mixed portfolio of equities, fixed interest securities and property. Ethical considerations are taken into account and the Society follows the advice given by the Church of England Ethical Investment Advisory Group. The i a steady growth in investment income. Both the requirement of prudence and the need for a reliable income flow
## _Investment Performance_
2021 saw a significant improvement in the performance of the investment markets, driven by increased confidence in the economy after the end of lockdown and the success of the COVID-19 vaccine roll out. Total stocks and shares investment income increased by £26,957 to £438,420 in 2021, representing an income yield of 3.5% in 2021 (2020: 3.5%). Total gains on the stocks and shares investments were £1,280,212 (2020: loss of £446,446).
During the year the Society has reassessed the value of its investment properties and has booked revaluation gains for both properties, being £143,188 in respect of the Great Peter Street property and £87,000 in respect of Fairwinds, resulting in a total revaluation gain of £230,188.
## _The effectiveness of fund-raising activities_
The Society carried out no general fund-raising activities during 2021 and as a voluntary body the Society relies on investment income, conference and course fees, Diocesan contributions, donations, and legacies to fund its normal activities.
## _Reserves Policy_
At 31 December 2021, the Society held total reserves of £16,158,620, of which £720,547 was held in restricted funds. Unrestricted reserves totalled £15,438,073, of which £1,022 was designated for specific purposes, this being work on SIAMS. Free reserves were therefore £15,437,051 and excluding the investment balances of £14,904,259 gives free reserves of £532,792.
investment balances. This equates to between £355,367 and £710,735. The balance of £532,792 at 31 December 2021 means that the Society currently holds approximately 4.5 months of unrestricted expenditure in free reserves excluding investment balances.
capital gains while maintaining a capital value sufficient to provide a stable financial outlook in the medium term. Having considered all relevant factors, including the present benefit from the contribution to operating costs and ensuring inter-generational equity without accumulating excessive reserves, the Society believes that it should hold between fifteen and twenty years of unrestricted expenditure, excluding expenditure on trading activities, in investments. This is between £14.3m and £19m. The current investment balances of £14.4m are just within this range.
## _Going concern_
The Society meets the costs of its activities primarily from investment income, charges for services provided by the Society or its subsidiary CEES, and from donations for specific projects. The Society prepares annual budgets and regular re-forecasts, and considers the longer term impact of its financial decisions when the budgets are set.
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1
The Society has considered the key risks and uncertainties which impact on immediate liquidity and long term solvency. These include the general liquidity of the investment portfolio, including cash held in deposit accounts, the bid to become a national provider of National Professional Qualifications, and demand for services provided by the Society or its subsidiary. The Society has also considered the continuing impact of the COVID-19 pandemic on its operations, particularly with reference to the contingency plans enacted in response to the initial emergency, which have substantially altered ways of working.
Having due regard to the above, the trustees have reasonable expectation that the Society has adequate resources to meet its spending commitments as they fall due for the foreseeable future. Accordingly, the going concern basis of accounting in preparing the annual report and financial statements continues to be adopted.
## **Staff remuneration and executive pay**
All the staff of the National Society are covered by a unified pay policy that operates across all the NCIs. The policy is designed to ensure the same level of pay for all staff in posts with work of equal value based on eight bands. For certain staff with specialist skills, typically those whose role requires them to hold a professional qualification, a market adjustment may be applied, the value of which is determined by reference to the lower quartile and median of market related salaries and is subject to annual review.
Staff pay is reviewed annually and any increases as a result of the annual pay negotiations are awarded with effect from 1 January. The NCIs are an accredited Living Wage employer and ensure all staff including apprentices, interns and those on training schemes receive the appropriate living wage for their location.
The roles of the Chief Executive and Executive Director of Education sit outside the banding system, as the skill sets roles are set individually with reference to the wider marketplace. This process is overseen by the Remuneration Committee, comprising senior trustees from each of the main NCIs. In general, these staff can expect the same percentage annual uplift for cost of living as those on the NCI bands.
## **Trustee responsibilities in relation to the financial statements**
As trustees, Council members are responsible for preparing the annual report and financial statements in accordance with applicable law and United Kingdom Accounting Standards. The law applicable to charities in England and Wales requires the Council to prepare financial statements 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 the period. In preparing the financial statements, the trustees are required to:
- Select suitable accounting policies and apply them consistently.
- Observe the methods and principles of the Charities Statement of Recommended Practice.
- State whether applicable accounting standards have been followed, subject to any departures disclosed and explained in the financial statements.
- Make judgements and estimates that are reasonable and prudent.
- Prepare financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.
They are responsible for keeping accounting records that disclose with reasonable accuracy the financial position of the charity and to enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the National Institutions Measure 1998. They are also responsible for fraud and other irregularities.
authorised for issue by the Council on 7 June 2022 and signed on its behalf by:
**Rt Revd Paul Butler Chairman**
**Revd Canon Peter Ballard Honorary Treasurer**
8
CHURCH IN WALES) FOR THE PROMOTION OF EDUCATION
## **Opinion**
We have audited the financial statements of The National Society (Church of England and Church in Wales) for the 1 which comprise the Consolidated Statement of Financial Activities, the Consolidated and Charity Balance Sheets, the Consolidated Cash Flow and notes to the financial statements, including 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).
In our opinion the financial statements:
- 1 and of
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Charities Act 2011.
## **Basis for opinion**
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. he financial statements section of our report. We are independent of the charity / group in accordance with the ethical 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 trustee's 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
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 trustees are responsible for the other information contained within the annual report. The other information 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 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 this gives rise to a material misstatement in the financial statements themselves. 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.
## **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 (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:
- the informatio or
- sufficient and proper accounting records have not been kept by the parent charity; or
9
CHURCH IN WALES) FOR THE PROMOTION OF EDUCATION
- the financial statements are not in agreement with the accounting records and returns; or
- we have not received all the information and explanations we require for our audit.
## **Responsibilities of trustees**
8, 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 the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
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.
We have been appointed as auditor under Section 151 of the Charities Act 2011 and report in accordance with the Acts and relevant regulations made or having effect thereunder.
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from 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.
Details of the extent to which the audit was considered capable of detecting irregularities, including fraud and noncompliance with laws and regulations are set out below.
A further description of our responsibilities for the audit of the financial statements is located on the Financial www.frc.org.uk/auditorsresponsibilities report.
## **Extent to which the audit was considered capable of detecting irregularities, including fraud**
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We identified and assessed the risks of material misstatement of the financial statements from irregularities, whether due to fraud or error, and discussed these between our audit team members. We then designed and performed audit procedures responsive to those risks, including obtaining audit evidence sufficient and appropriate to provide a basis for our opinion.
We obtained an understanding of the legal and regulatory frameworks within which the charity and group operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Charities Act 2011 together with the Charities SORP (FRS 102). We assessed the required compliance with these laws and regulations as part of our audit procedures on the related financial statement items.
In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial avoid a material penalty. We also considered the opportunities and incentives that may exist within the charity and the group for fraud. The laws and regulations we considered in this context for the UK operations were General Data Protection Regulations, Health and Safety legislation and employment legislation.
Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Trustees and other management and inspection of regulatory and legal correspondence, if any.
We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be within the timing of recognition of income and the override of controls by management. Our audit procedures to respond to these risks included enquiries of management and the Finance and Investment Committee about their own identification and assessment of the risks of irregularities, sample testing on the posting of journals, reviewing accounting estimates for biases, reviewing regulatory correspondence with the Charity Commission and reading minutes of meetings of those charged with governance.
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## CHURCH IN WALES) FOR THE PROMOTION OF EDUCATION
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.
## **Use of our report**
body, in accordance with Part 4 of the Charities (Accounts and other purpose. To the fullest extent
trustees as a body, for our audit work, for this report, or for the opinions we have formed.
## **Crowe U.K. LLP**
Statutory Auditor
London
Date 21 October 2022
Crowe U.K. LLP is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.
11
CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2021
|**Consolidated**
**Unrestricted**
**Funds**
**Notes**
**£**
**Income from:**
Donations and legacies
110,000
Charitable activities
3
22,175
Other trading activities
626,969
Investments
2
483,788
Other income
4
1,311
**Total income**
1,244,243
**Expenditure on:**
Raising funds
47,202
Charitable activities
5
904,311
Other trading expenditure
469,956
**Total expenditure**
1,421,469
**Net (expenditure) income**
**before gains/(losses) on**
**investments**
(177,226)
Gains/(losses) on investments
10
1,510,201
**Net income (expenditure)**
1,332,975
**Transfers between funds**
15
(258,943)
**Net movement in funds**
1,074,032
Total funds at 1 January:
14,364,041
**Total funds at 31 December**
15,438,073|**Restricted**
**Funds**
**£**
190,000
112,875
-
51
-
302,926
-
407,008
-
407,008
(104,082)
-
(104,082)
258,943
154,861
565,686
720,547|**2021**
**Total**
**£**
**300,000**
**135,050**
**626,969**
**483,839**
**1,311**
**1,547,169**
**47,202**
**1,311,319**
**469,956**
**1,828,477**
**(281,308)**
**1,510,201**
**1,228,893**
**-**
**1,228,893**
**14,929,727**
**16,158,620**|**Unrestricted**
**Funds**
£
10,005
-
674,243
463,473
5,886
1,153,607
42,138
514,946
380,075
937,159
216,448
(491,803)
(275,355)
(12,650)
(288,005)
14,652,046
14,364,041|**Restricted**
**Funds**
£
128,612
170,050
-
389
-
299,051
-
488,808
-
488,808
(189,757)
-
(189,757)
12,650
(177,107)
742,793
565,686|**2020**
**Total**
£
**138,617**
**170,050**
**674,243**
**463,862**
**5,886**|
|---|---|---|---|---|---|
||||||**1,452,658**
**42,138**
**1,003,754**
**380,075**|
||||||**1,425,967**
**26,691**
**(491,803)**|
||||||**(465,112)**
**-**|
||||||**(465,112)**
**15,394,839**
**14,929,727**|
The balances for both financial years relate to continuing operations.
The notes 1 to 17 form part of these Financial Statements
12
CONSOLIDATED AND CHARITY BALANCE SHEETS FOR THE YEAR ENDED 31 DECEMBER 2021
|**Notes**
**Fixed assets**
Investment property
10
Investments
10
**Current assets**
Debtors
11
Cash & cash equivalents
**Liabilities**
Creditors: amounts falling due
within one year
12
**Net current assets**
**Total net assets**
**The funds of the charity:**
Restricted funds
Unrestricted funds:
. Designated funds
. General funds
**Total funds**
13|**Group**
**2021**
2020
**Total**
Total
**£**
£
**2,047,688**
1,817,500
**12,856,571**
11,618,352
**14,904,259**
13,435,852
**403,722**
235,929
**1,497,470**
1,592,512
**1,901,192**
1,828,441
**(646,831)**
(334,566)
**1,254,361**
1,493,875
**16,158,620**
14,929,727
720,547
565,686
1,022
193,333
15,437,051
14,170,708
**16,158,620**
**14,929,727**|**Charity**
**2021 **
2020
**Total**
Total
**£**
£
**2,047,688**
1,817,500
**12,856,671**
11,618,452
**14,904,359**
13,435,952
**539,601**
160,716
**1,187,250**
1,195,464
**1,726,851**
1,356,180
**(510,670)**
(76,438)
**1,216,181**
1,279,742
**16,120,540**
14,715,694
720,547
565,686
1,022
193,333
15,398,971
13,956,675
**16,120,540**
**14,715,694**|**Charity**
**2021 **
2020
**Total**
Total
**£**
£
**2,047,688**
1,817,500
**12,856,671**
11,618,452
**14,904,359**
13,435,952
**539,601**
160,716
**1,187,250**
1,195,464
**1,726,851**
1,356,180
**(510,670)**
(76,438)
**1,216,181**
1,279,742
**16,120,540**
14,715,694
720,547
565,686
1,022
193,333
15,398,971
13,956,675
**16,120,540**
**14,715,694**|
|---|---|---|---|
||||13,435,952
160,716
1,195,464|
||||1,356,180
(76,438)|
||||1,279,742|
||||14,715,694|
||||565,686
193,333
13,956,675
**14,715,694**|
The notes 1 to 17 form part of these Financial Statements
Approved and authorised for issue by the Council on 7 June 2022 and signed on its behalf by:
**Rt Revd Paul Butler Chairman**
**Revd Canon Peter Ballard Honorary Treasurer**
13
## CONSOLIDATED CASH FLOW FOR THE YEAR ENDED 31 DECEMBER 2021
|**Notes**
**Net income / (expenditure) for the year (as per the statement of financial**
**activities)**
Investment income
2
(Gains) / losses on investments
10
Increase / (decrease) in creditors
12
(Increase) in debtors
11
**Net cash flow used in operating activities**
**Cash flows from investing activities**
Investment income received
2
Purchase of investments
10
Sales of investments
10
Revaluation gain on investment property
10
**Net cash flow provided by / (used in) investing activities**
Change in cash and cash equivalents in the year
Cash and cash equivalents at 1 January 2021
**Cash and cash equivalents at 31 December 2021**
**Analysis of cash and cash equivalents**
Cash at bank and in hand
Cash held by investment managers
10|**2021**
**£**
**1,228,893**
**(483,839)**
**(1,280,012)**
**312,265**
**(167,792)**
**(390,485)**
**483,839**
**(753,796)**
**920,410**
**(230,188)**
**420,265**
**29,780**
**1,632,109**
**1,661,888**
**1,497,470**
**164,418**
**1,661,888**|2020
£
(465,112)
(463,852)
491,803
(184,107)
(89,738)|
|---|---|---|
|||(711,006)
463,852
(910,967)
933,330
-|
|||486,215
(224,791)
1,856,900|
|||1,632,109|
|||1,592,512
39,597
1,632,109|
The Society has no debt and therefore the reconciliation in cash and cash equivalents also represents the analysis of changes in net debt.
The notes 1 to 17 form part of these Financial Statements
14
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021
## **1. ACCOUNTING POLICIES**
The financial statements have been prepared in accordance with 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 (FRS 102) issued in October 2019, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011 and UK Generally Accepted Practice.
The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.
The National Society meets the definition of a public benefit entity under FRS 102.
The National Society has taken advantage of the exemption in FRS102 from the requirement to prepare a Charity cash flow statement.
The subsidiary company has been consolidated on a line-by-line basis.
## **Going concern**
The Society meets the costs of its activities primarily from investment income, charges for services provided by the Society or its subsidiary Church of England Educational Services Limited, and from donations for specific projects. The Society prepares annual budgets and regular re-forecasts, and considers the longer term impact of its financial decisions when the budgets are set.
The Society has considered the key risks and uncertainties which impact on immediate liquidity and long term solvency. These include the general liquidity of the investment portfolio, including cash held in deposit accounts, the bid to become a national provider of National Professional Qualifications, and demand for services provided by the Society or its subsidiary. The Society has also considered the continuing impact of the COVID-19 pandemic on its operations, particularly with reference to the contingency plans it has enacted in response to the initial emergency, which have substantially altered ways of working.
Having due regard to the above, the trustees have reasonable expectation that the Society has adequate resources to meet its spending commitments as they fall due for the foreseeable future. Accordingly, the going concern basis of accounting in preparing the annual report and financial statements continues to be adopted.
## **Income**
Income is recognised in the period in which the charity is entitled to the income and the amount can be measured reliably and it is probable that the income will be received.
Income from government and other grants are recognised at fair value when the charity has entitlement after any performance conditions have been met, it is probable that the income will be received and the amount can be measured reliably. If entitlement is not met then these amounts are deferred.
Investment income is earned through holding assets for investment purposes such as shares and property. It includes dividends, interest and rent. Interest income is recognised when receivable and the amount can be measured reliably
## **Resources expended and basis of allocation of costs**
Expenditure, including the related irrecoverable VAT, is accounted for on the accruals basis and is recognised when there is a legal or constructive obligation to pay for expenditure.
Most costs are directly attributable to specific activities. Support costs are those that assist the work of the charity but do not directly represent charitable activities and include office costs, governance costs & administrative payroll costs. They are incurred directly in support of expenditure on the objects of the charity. Where support costs cannot be directly attributed to particular headings they have been apportioned on the basis of time spent on various activities.
15
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 (continued)
## **1. ACCOUNTING POLICIES (continued)**
## **Investment property**
Investment properties for which fair value can be measured reliably without undue cost or effort are measured at fair statement of financial activities.
## **Investments**
Investments are recognised initially at fair value which is normally the transaction price excluding transaction costs. the statement of financial activities if the shares are publicly traded or their fair value can otherwise be measured reliably. Other investments are measured at cost less impairment.
## **Debtors and creditors receivable/payable within one year**
Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in expenditure.
## **Impairment**
Assets not measured at fair value are reviewed for any indication that the asset may be impaired at each balance sheet compared to the carrying amount. Where the carrying amount exceeds its recoverable amount, an impairment loss is recognised in statement of financial activities unless the asset is carried at a revalued amount where the impairment loss is a revaluation decrease.
## **Provisions**
Provisions are recognised when the charity has an obligation at the balance sheet date as a result of a past event, it is probable that an outflow of economic benefits will be required in settlement and the amount can be reliably estimated.
## **Employee benefits**
When employees have rendered service to the charity, short-term employee benefits to which the employees are entitled are recognised at the undiscounted amount expected to be paid in exchange for that service.
The National Society participates in two pension schemes for the benefit of its employees - the Defined Benefit Pension Scheme (DBS), which is one section of the Church Workers Pension Fund and the Church Administrators Pension Fund which is split into two sections. For employees who joined before 1 July 2006 there is a Defined Benefits Section and for those joining after that date there is a Money Purchase Section. For further details please see note 9.
## **Fund accounting**
General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the charity and which have not been designated.
Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes. The aim and use of the designated funds is set out in the notes to the financial statements.
Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for particular purposes. The cost of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.
16
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 (continued)
## **1. Accounting policies (continued)**
## **Judgements and key sources of estimation uncertainty**
The National Society makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing material adjustment to the carrying amounts of the assets and liabilities within the next financial year are addressed below.
## _Investment properties:_
The Society carries its investment properties at fair value being recognised in the Statement of Financial Activities. See note 10 for more information.
## _Expenditure allocations:_
Expenditure is apportioned where it relates to more than one cost category (see note 5).
## **2. INVESTMENT INCOME**
|Interest receivable
Dividends receivable
Rents receivable
**Total**|Unrestricted
funds
£
368
438,420
45,000
483,788|Restricted
funds
£
51
-
-
51|**2021**
**£**
**419**
**438,420**
**45,000**
**483,839**|2020
£
7,399
411,463
45,000
463,862|
|---|---|---|---|---|
## **3. INCOME FROM CHARITABLE ACTIVITIES**
|Section 48 inspections
Diocesan contribution
**Total**
**4. OTHER INCOME**
Government grants
Royalties received
**Total**|Unrestricted
funds
£
22,175
-
22,175
Unrestricted
funds
£
-
1,311
1,311|Restricted
funds
£
(18,675)
131,550
112,875
Restricted
funds
£
-
-
-|**2021**
**£**
**3,500**
**131,550**
**135,050**
**2021**
**£**
**-**
**1,311**
**1,311**|2020
£
170,050
-
170,050
2020
£
5,842
44
5,886|
|---|---|---|---|---|
## **5. ANALYSIS OF CHARITABLE EXPENDITURE**
|Shaping Policy
Developing Leaders
**Total**|Direct
costs
£
484,863
453,667
938,530|
Support
costs
£
190,505
182,284
372,789|
**2021**
**£**
**675,368**
**635,951**
**1,311,319**|2020
£
574,529
429,225
1,003,754|
|---|---|---|---|---|
17
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 (continued)
## **6. ANALYSIS OF SUPPORT COSTS**
|Staff costs
Shared service costs
Archiving costs
Office rent
Audit fees
Committee expenses
Legal fees
Other
**Total**|**2021**
**£**
**118,281**
**106,971**
**34,050**
**31,329**
**9,240**
**787**
**29,086**
**1,602**
**41,443**
**372,789**|2020
£
87,796
65,397
38,853
34,066
13,800
1,834
20,774
878
32,968
296,366|
|---|---|---|
All support costs are allocated to charitable activities because any allocation between raising funds and charitable activities is immaterial.
Included in total committee expenses is £787 (2020: £1,675) which had been reimbursed to individual council members in respect of travelling and incidental expenses. Trustee indemnity insurance of £1,602 (2020: £878) was paid by the Society. The Honorary Treasurer has chosen not to draw an honorarium.
## **7. STAFF COSTS**
The cost of staff employed by the National Society for the year ended 31 December 2021 is as below:
|Gross salaries
National insurance
Pension costs
**Total**
Average headcount|**2021**
**£**
**606,614**
**71,826**
**75,201**
**753,641**
**2021**
**22**|2020
£
405,839
46,735
58,672
511,246
2020
11|
|---|---|---|
Included within these costs is £47,522 (2020: £1,790) termination costs in relation to one (2020: one) employee. The charity considers its key management personnel to consist of the Chief Education Officer, the Executive Director of Education and the Director of SIAMS. During the year the National Society contributed £211,783 (2020: £241,900) in relation to its share of their employee benefits. There were 3 employees (2020: 1 employee) who were paid between £60,001 and £70,000 in relation to work carried out for the National Society.
18
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 (continued)
## **8. CHURCH OF ENGLAND EDUCATIONAL SERVICES LIMITED**
||**2021**|2020|
|---|---|---|
||**£**|£|
|Turnover|**626,969**|674,529|
|Cost of sales|**(588,891)**|(460,496)|
|Profit before taxation|**38,078**|214,033|
|Tax on profit|**-**|-|
|Charitable donation|**(214,033)**|(104,491)|
||**2021**|2020|
||**£**|£|
|Current assets|**527,308**|550,236|
|Creditors|**(489,130)**|(336,103)|
|Net assets|**38,178**|214,133|
|Capital and reserves|||
|Called up share capital|**100**|100|
|Profit and loss account|**38,078**|214,033|
||**38,178**|214,133|
Church of England Educational Services Limited is a trading subsidiary incorporated in England and Wales where the National Society own all 100 £1 ordinary shares. It undertakes a similar activity to the parent. A summary of the trading results are shown above. Audited financial statements have been filed with the Registrar of Companies. The distributable net profit has now been distributed to the National Society as a charitable donation under gift aid.
## **9. PENSIONS**
The National Society participates in two separate pension schemes operated by the Church of England Pensions Board:the Church of England Defined Benefit Pension Scheme (DBS) (which is one section of the Church Workers Pension Fund) and the Church Administrators Pension Fund which is split into two sections, a defined benefits section and a money purchase section.
## **Church of England Defined Benefit Pension Scheme (DBS)**
This is part of the Church Workers Pension Fund and is operated in respect of staff who joined The National Society before 1 January 2000.
The National Society is unable to identify its share of the underlying assets and liabilities of the DBS as each participating employer is exposed to actuarial risks associated with the current and former employees of other entities participating in rate was revised with effect from 1 April 2012 and a deficit recovery plan was introduced from the same date. The last fund valuation carried out yields an estimated outstanding deficit at 31 December 2016 of £26,700. Investigations carried out since the last report have identified that some employees previously identified as employees of the National Society were employed under the joint employer arrangements operated by the National Church Institutions (NCIs).
## **Church Administrators Pension Fund (CAPF)**
The National Society, in line with all other National Church Institutions, is now required to contribute towards Church Administrators Pension Fund (CAPF) in respect of staff not included in the DBS and to the overall deficit in the CAPF defined benefit section.
The **Defined Benefit Section** is for members who joined the Fund before 1 July 2006. Each participating employer in the ble Salaries.
19
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 (continued)
## **9. PENSIONS**
The Defined Benefit Section is considered to be a multi-employer, last man standing defined benefit pension scheme, as described in Section 28 of FRS 102. The Employer is unable to identify its share of the underlying assets and liabilities as each employer is exposed to actuarial risks associated with current and former employees of other entities participating in the scheme. Contributions are accounted for as if the Scheme were a defined contribution scheme. The pensions costs charged to the SoFA in the year are contributions payable towards benefits and expenses accrued in that year.
A valuation of this section is carried out every three years, the most recent having been at 31 December 2019. This revealed a deficit of £9.1m. Following the valuation, the employers have collectively entered into an agreement with CAPF to pay contributions of 27.6% of Pensionable Salaries with effect from 1 January 2021. The deficit contributions and therefore there is no liability for the Society.
## **10. INVESTMENTS**
|**Group**
Market value at 1 January
Disposals
Acquisitions
Gain/ (loss) on revaluation
**Market value at 31 December**
Cash held by investment manager
**Total investment balances**
**Historical cost at 31 December**|Property
£
1,817,500
-
-
230,188
2,047,688
-
2,047,688
30,327|Investments
£
11,578,755
(920,410)
753,796
1,280,012
12,692,153
164,418
12,856,571
8,244,770|**2021**
Property
**£**
£
**13,396,255**
1,862,857
**(920,410)**
-
**753,796**
-
**1,510,200**
(45,357)
**14,739,841**
1,817,500
**164,418**
-
**14,904,259**
1,817,500
**8,275,097**
**30,327**|Investments
£
12,047,564
(933,330)
910,967
(446,446)
11,578,755
39,597
11,618,352
**8,177,372**|2020
£
13,910,421
(933,330)
910,967
(491,803)|
|---|---|---|---|---|---|
||||||13,396,255
39,597
13,435,852
**8,207,699**|
All investment assets were held in the United Kingdom. The trustees consider that there are two material investment holdings at 31 December 2021:
||**2021**|2020|
|---|---|---|
||**£**|£|
|CCLA CBF Investment Fund|**1,241,562**|1,085,483|
|CCLA CBF Property Fund|**1,009,674**|883,655|
|Unlisted
investments
**Charity**
£
Market value at 1 January 2021
100
Disposals
-
Acquisitions
-
Gain on revaluation
-
**Market value at 31 December 2021**
100
Cash held by investment manager
-
**Total investment balances**
100
Historical cost at 31 December
100|Unlisted
investments
**Charity**
£
Market value at 1 January 2021
100
Disposals
-
Acquisitions
-
Gain on revaluation
-
**Market value at 31 December 2021**
100
Cash held by investment manager
-
**Total investment balances**
100
Historical cost at 31 December
100|Property
£
1,817,500
-
-
230,188
2,047,688
-|Investments
£
11,578,755
(920,410)
753,796
1,280,012
12,692,153
164,418|**2021**
**£**
**13,396,355**
**(920,410)**
**753,796**
**1,510,200**|
|---|---|---|---|---|
|||||**14,739,941**
**164,418**|
||100
100|2,047,688
30,327|12,856,571
8,177,372|**14,904,359**|
|||||**8,207,799**|
20
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 (continued)
## **10. INVESTMENTS (continued)**
|Unlisted
investments
**Charity**
£
Market value at 1 January 2020
100
Disposals
-
Acquisitions
-
(Loss) on revaluation
-
**Market value at 31 December 2020**
100
Cash held by investment manager
-
**Total investment balances**
100
Historical cost at 31 December 2020
100
Unlisted investments are as below:
**Registered**
**Office**
Church of England Educational
Services
England
**11. DEBTORS**
**Group**
**2021**
_Amounts due within one year:_
**£**
Prepayments & accrued income
**128,423**
Trade debtors
**275,299**
Amounts due from subsidiary
**-**
**403,722**||Property Investments
**2020**
£
£
**£**
1,862,857
12,047,564
**13,910,521**
-
(933,330)
**(933,330)**
-
910,967
**910,967**
(45,357)
(446,446)
**(491,803)**
1,817,500
11,578,755
**13,396,355**
-
39,597
**39,597**
1,817,500
11,618,352
**13,435,952**
30,327
8,177,372
**8,207,799**
**Class of**
**shares held**
**Holding**
**direct**
**Nature of**
**business**
Ordinary
100%
Education
**Charity**
2020
**2021**
2020
£
**£**
£
32,919
**155,301**
32,919
203,010
**150,267**
49,822
-
**234,033**
77,975
235,929
**539,601**
160,716|
|---|---|---|
21
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 (continued)
## **12. CREDITORS**
|_Amounts due within one year:_
Accrued expenditure
Other taxation and social security
Deferred income
Trade creditors
Other creditors|**Group**
**2021**
2020
**£**
£
**176,291**
49,988
**35,169**
132,438
**275,725**
88,604
**153,002**
62,350
**6,644**
1,186
**646,831**
334,566|**Charity**
**2021**
2020
**£**
£
**121,720**
26,980
**-**
-
**275,725**
-
**108,497**
48,272
**4,728**
1,186
**510,670**
76,438|
|---|---|---|
## **Reconciliation of deferred income**
|Deferred at 1 January 2021
Released during the year
Deferred during the year
Deferred at 31 December 2021|**2021**
**£**
88,604
88,604
275,725
**275,725**|
|---|---|
## **13. ANALYSIS OF NET ASSETS BETWEEN FUNDS**
Fund balances at 31 December 2021 are represented by:
|**Group**
Fixed assets
Current assets
Current liabilities
**Total net assets**
**Charity**
Fixed assets
Current assets
Current liabilities
**Total net assets**|Unrestricted
funds
£
14,904,259
1,180,645
(646,831)
15,438,073
Unrestricted
funds
£
14,904,359
1,006,304
(510,670)
15,399,993|Restricted
funds
£
-
720,547
-
720,547
Restricted
funds
£
-
720,547
-
720,547|**2021**
**£**
**14,904,259**
**1,901,192**
**(646,831)**
**16,158,620**
**2021**
**£**
**14,904,359**
**1,726,851**
**(510,670)**
**16,120,540**|Unrestricted
funds
£
13,435,852
1,262,755
(334,566)
14,364,041
Unrestricted
funds
£
13,435,952
790,494
(76,438)
14,150,008|Restricted
funds
£
-
565,686
-
565,686
Restricted
funds
£
-
565,686
565,686|2020
£
13,435,852
1,828,441
(334,566)
14,929,727
2020
£
13,435,952
1,356,180
(76,438)
14,715,694|
|---|---|---|---|---|---|---|
22
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 (continued)
## **13. ANALYSIS OF NET ASSETS BETWEEN FUNDS (continued)**
Reconciliation of movements in unrealised gains on investment assets:
|**Group**
Unrealised gains at 1 January
Realised gains in respect of disposals
Net gain arising on revaluations
**Unrealised gains at 31 December**
**Charity**
Unrealised gains at 1 January
Realised gains in respect of disposals
Net gain arising on revaluations
**Unrealised gains at 31 December**|Unrestricted
funds
£
5,228,153
(234,011)|
|**2021**
**£**
**5,228,153**
**(234,011)**|Unrestricted
funds
£
5,365,188
354,768
5,719,956
(491,803)
5,228,153
Unrestricted
funds
£
5,365,188
354,858
5,720,046
(491,803)
5,228,243|2020
£
**5,365,188**
**354,768**|
|---|---|---|---|---|---|
||4,994,142
1,510,200
6,504,162
Unrestricted
funds
£
5,228,153
(234,011)||**4,994,142**
**1,510,200**
**6,504,342**
**2021**
**£**
**5,228,153**
**(234,011)**||**5,719,956**
**(491,803)**
**5,228,153**
2020
£
**5,365,188**
**354,768**|
||4,994,142
1,510,020
6,504,162||**4,994,142**
**1,510,200**
**6,504,342**||**5,719,956**
**(491,803)**
**5,228,153**|
## **14. UNRESTRICTED FUNDS**
The movements on the unrestricted funds of the Group are as follows:
|Balance as
at 1
January
2021
£
General Fund
14,170,708
Designated funds:
SIAMS
1,022
Foundation project
192,311
SIAMS Development Fund
-
NPQ Development Fund
-
**Total**
14,364,041
Balance as at 1
January 2020
£
General Fund
14,458,713
Designated funds:
SIAMS
1,022
Foundation project
192,311
**Total**
14,652,046|Income
£
1,105,412
-
-
50,000
88,831
1,244,243
Income
£
1,153,607
-
-
1,153,607|Expenditure
£
(1,210,728)
-
-
(91,003)
(110,266)
(1,411,997)
Expenditure
£
(937,159)
-
-
(937,159)|Other
movements
£
1,413,342
-
(192,311)
41,003
21,435
1,283,469
Other
movements
£
(504,453)
-
-
(504,453)|
**Balance as at 31**
**December 2021**
£
**15,478,734**
**1,022**
**-**
**-**
**-**
**15,479,756**
Balance as at 31
December 2020
£
**14,170,708**
**1,022**
**192,311**
**14,364,041**|
|---|---|---|---|---|
The designated funds are held for the following purposes:
## **Designated fund SIAMS**
To develop future Statutory Inspection of Anglican & Methodist Schools (SIAMS) training courses.
23
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 (continued)
**Designated fund Foundation** This represented the unrestricted part of the Foundation Project which **project** aims to
system by equipping leaders of the future with understanding, skills and character to deliver a transformational education.
**Designated fund SIAMS** To fund systems and set up for national coordination of SIAMS **Development Fund** inspections.
**Designated fund NPQ** To fund systems and set up for the new range of NPQ programmes. **Development Fund**
## **15. RESTRICTED FUNDS**
The income funds of the Society include restricted funds comprising the following unexpended balances of grants held as funds to be applied for specific purposes:
|Foundation
S48 School Inspections
RE, CW & Character Working Group
Fresh Voices
Unlocking Gifts
Living Well Together
CSoF: Church School of the Future
Resourcing School Worship
Big Story App
Growing Faith Foundation
Free Schools Project
Rural Schools Network
Big Questions in the Classroom
Foundation
S48 School Inspections
RE, CW & Character Working Group
Fresh Voices
Unlocking Gifts
Living Well Together
CSoF: Church School of the Future
Resourcing School Worship
Big Story App
Free Schools Project
Admissions Builder
Rural Schools Network
Big Questions in the Classroom|Balance as at 1
January 2021
£
49,200
83,176
117,626
41,565
17,800
4,404
41,371
5,815
90,014
-
18,445
32,658
63,612
565,686
Balance as at 1
January 2020
£
360,543
43,070
114,801
41,565
17,800
4,404
41,371
5,815
90,014
20,910
2,500
-
-
742,793|Income
£
25,001
112,925
15,000
-
-
-
-
-
-
150,000
-
-
-
302,926
Income
£
15,083
170,356
15,000
-
-
-
-
-
-
-
-
35,000
63,612
299,051|Expenditure
£
(304,136)
(38,194)
(380)
(23,697)
-
-
-
-
-
-
(494)
(35,608)
(4,500)
(407,009)
Expenditure
£
(326,426)
(130,250)
(12,175)
-
-
-
-
-
-
(2,465)
(15,150)
(2,342)
-
(488,808)|Transfers
£
255,993
-
-
-
-
-
-
-
-
-
-
2,950
-
258,943
Transfers
£
-
-
-
-
-
-
-
-
-
-
12,650
-
-
12,650|**Balance as at 31**
**December 2021**
£
**26,059**
**157,908**
**132,246**
**17,868**
**17,800**
**4,404**
**41,371**
**5,815**
**90,014**
**150,000**
**17,951**
**-**
**59,112**
**720,547**
Balance as at 31
December 2020
£
**49,200**
**83,176**
**117,626**
**41,565**
**17,800**
**4,404**
**41,371**
**5,815**
**90,014**
**18,445**
**-**
**32,658**
**63,612**
**565,686**|
|---|---|---|---|---|---|
24
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 (continued)
## **16. RESTRICTED FUNDS (continued)**
The funds are held for the following purposes:
|**Foundation**
**for**|**Educational**|Project to|
|---|---|---|
|**Leadership**||by equipping leaders of the future with understanding, skills and character|
|||to deliver a transformational education.|
|**S48 School Inspections**||Funding for school inspections required under Section 48 of the Education Act|
|||2005.|
|**RE, CW & Character Working**||Funding to improve the quality of religious education in Church of England|
|**Group**||Schools.|
|**Fresh Voices**||To understand the needs of young people in being equipped as agents of|
|||mission and change within their educational institution.|
|**Unlocking Gifts**||Project to support Diocesan bids to raise school achievement.|
|**Living Well Together**|**Project**|Project to provides a welcome first step to more collaborative working, for|
|||the common good of society.|
|**CSoF: Church School of the Future**||Development project for Church of England Academies and Diocesan Support;|
|||implementation of the Church School of the Future Report.|
|**National Governance Resources**||Funding for a suite of resources for school governance.|
|**Resourcing School Worship**||Funding to develop a web-based resource to enable church schools to use|
|||Anglican liturgical resources and a songbank.|
|||Guidance for Church of England schools on challenging homophobic,|
|||biphobic and transphobic bullying.|
|**Free Schools Project**|||
|||project.|
|**Admissions Builder**||Creation of a new admissions platform.|
|**Big Story App**||Funding to develop digital resources for the Growing Faith Foundation.|
|**Big Questions in the Classroom**||Funding to run a Science and Belief research programme as part of the Big|
|||Questions in the Classroom project, working with our secondary schools|
|||network.|
|**Growing Faith Foundation**||Core funding of the new Growing Faith Foundation.|
## **16. RELATED PARTIES**
A number of the Trustees are employed by their local Diocese who work closely with the Charity in the course of normal charity operations.
25
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 (continued)
## **17. TRUSTEESHIP**
The National Society is the Trustee at 31 December 2021 for the following trusts:
Alton School Teachers House Knighton School Vaughan Trust Walcot School
## **Trusts transferred or closed by 31 December 2021 -** None
The assets held on behalf of these trusts are held in the name of the National Society Trusts Funds and comprise:
|CBF Investment Fund
RBS Deposit Account|**2021**
**Cost**
**Market**
**value**
**£**
**£**
5,691
139,409
7,474
7,474
13,165
146,883|**2020**
Cost
Market
value
£
£
5,691
121,883
7,474
7,474
13,165
129,357|
|---|---|---|
26
'Updated' National Society accounts 2021 For
Signature
Final ALJdil Report
2022-07-18
Created..
2022-07-18
By..
Lisa Osbome llisa.0sbome@churchofengland.orgl
Slalus..
Signed
Transaction ID..
CBJCHBCAABM71Xh6w6JcQ2mtpVo6fZrP30M3klLSVlb
Updated. National Society accounts 2021 For Signature" Hist
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