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2021-03-31-accounts

The Vale of Glamorgan Welsh Church Act Fund

ANNUAL REPORT

AND FINANCIAL STATEMENTS

2020/21

Registered Charity no. 506628

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Welsh Church Act Fund 2020/21

Annual Report and Financial Statements 2020/21

Contents

Page
Report of the Trustees 3
Statement of Responsibilities for the Annual Report
and Trustees’ Certificate 6
Accounting Policies 7
Statement of Financial Activities 9
Balance Sheet 10
Cash Flow Statement 11
Notes to the Statement of Financial Activities 12
Notes to the Balance Sheet 13
Report of the independent examiner to the trustees 15

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Welsh Church Act Fund 2020/21

Report of the Trustees for the year ended 31 March 2021

Duty to Prepare Annual Reports and Accounts

The Vale of Glamorgan Council, as corporate trustee, is responsible for the preparation of the Annual Report and Accounts for the Vale of Glamorgan Welsh Church Act Fund.

The trustees present their report along with the accounts of the charity for the year ended 31st March 2021 as required by Section 162 of the Charities Act 2011.

Reference and Administrative Information

Name of Charity

The Vale of Glamorgan Welsh Church Act Fund

Charity Number

506628

Principal Office

Civic Offices, Holton Road, Barry, Vale of Glamorgan.CF63 4RU

Trustees

The Vale of Glamorgan County Borough Council corporate body appointed under the Local Government (Wales) Act 1994 and The Welsh Church Act Funds (Designation and Specification) Order 1996 thereto.

Managing Director

Rob Thomas

Independent Examiner

Wales Audit Office, 24 Cathedral Road, Cardiff, CF11 9LJ.

Bankers

Lloyds Bank, 140b Holton Road, Barry, Vale of Glamorgan CF63 4TZ.

Solicitors

Legal Services, Vale of Glamorgan County Borough Council, Civic Offices, Holton Rd., Barry, Vale of Glamorgan. CF63 4RU.

Investment Advisors

Tilney Financial Planning Limited, The Observatory, Western Road, Bracknell. RG12 1TL

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Welsh Church Act Fund 2020/21

Structure Governance and Management

Governing Document

The current Scheme of Arrangement is dated 25[th] November 1975 pursuant to Section 19 of the Welsh Church Act 1914, which requires the fund which is the subject of the scheme to be expended on the charitable purposes as set out on page 5 of this report.

Organisation

The Council as corporate trustee is responsible for the administration of the fund across the geographical areas of the Vale of Glamorgan Council and the City and County of Cardiff. The Council has delegated management of the fund to a Welsh Church Act Estate Committee.

The members of the Welsh Church Act Estate Committee are Vale of Glamorgan Council Councillors and are appointed by full Council, at the Council’s Annual Meeting.

The fund operates in accordance with the Vale Council constitution, which sets out how decisions are made, the scheme of officer delegation, contract standing orders, and financial regulations, and the procedures, which are to be followed to ensure that these are efficient, transparent and accountable to local people.

Related Parties

A related party transaction is one where the charity has a relationship with another party, which might inhibit it from pursuing its own separate interests. It is considered that the City and County of Cardiff and the Vale of Glamorgan County Borough Council has a related party relationship with the charity. Financial transactions with the Council are disclosed in Note 1 to the Statement of Financial Activities. There are no related party transactions with the City and County of Cardiff during 2020/21.

Risk Management

Trustees are made aware of any issues with possible detrimental effects upon the fund as they arise. The financial administration of the trust has regard to the Council’s overarching risk management strategy and is conducted in accordance with the Council’s Corporate Governance policies, which include inter alia Financial Procedure Rules, Standing Orders and Scheme of Delegation.

Objectives and Activities

The former Prime minister Lloyd George, under the provisions of the 1914 and 1919 Welsh Church Acts, established the Welsh Church Fund. These two acts transferred certain categories of secularised property, to a Welsh Church Fund to be administered by the County Councils. However these funds were not activated until 1942-47, when property to the value of almost £2.5 million was handed over to the County Councils.

The Welsh Church Acts state that income of the funds should be devoted to charitable or alms giving purposes and that each Council is required to prepare a scheme for the use of the fund.

The Vale of Glamorgan Welsh Church Act Fund currently operates in accordance with the Scheme dated 25 November 1975 effected by the former South Glamorgan County Council and agreed by the Secretary of State for Wales 9 February 1976.

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Welsh Church Act Fund 2020/21

The following is a precis of the charitable purposes to which the fund may be applied:

Achievements and Performance

Details of grants made from the fund during the course of the year are as shown in the Notes to the Statement of Financial Activities. There are no performance targets.

Financial Review

Fund value

The net value of the fund at year end was £5.230M, an increase of £261k on the previous year of the £253k was a due to an increase in the value of the Trust’s investments and £8k was due to an increase on unrestricted funds.

Investment Policy

The trustees have complied with their investment powers as in the approved Scheme and under the Trustee Act 2000. Tilney Financial Planning Limited, authorised and regulated by the Financial Services Authority, act as Independent Financial Adviser to the trust. The investment objectives are to maximise income within a low risk to capital strategy.

Policy on Reserves

The Trust’s unrestricted funds increased from £112k to £120k during 2020/21, this sum equates to 3.71% of the value of the Investment Properties and is held primarily to fund unforeseen costs on maintaining the Investment Properties. The unrestricted fund is also used to allow for fluctuations in investment income to ensure consistent provision of grant funding as part of the Trust’s charitable purposes.

Plans for Future Periods

The Trust will continue to draw on the cleared income from its Investments and Investment Properties to award grants in accordance with the scheme of the Welsh Church Act Trust.

Trustees will regularly review the Investments and Investment Properties held by the Trust for these purposes and an Investment Strategy review will be carried out during 2021/22.

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Welsh Church Act Fund 2020/21

Statement of Responsibilities for the Preparation of the Annual Report

The trustee responsibilities

The charity's trustees are responsible for preparing the Trustees Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England and Wales requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that period. In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, Charities Act 1993 and the Charity (Accounts and Reports) Regulations 2008. The trustees are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Approved by the trustees at their meeting on 4[th] October 2021 and the Chairman, duly authorised to sign the same on their behalf. Subsequent minor amendments were approved by trustees in January 2022.

Signed: Cllr. Mark Wilson Date 27[th] January 2022

Chairman Councillor M Wilson Vale of Glamorgan Welsh Church Act Estate Committee

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Welsh Church Act Fund 2020/21

Statement of Accounting Policies

Accounting Policies are the principles, bases, conventions and rules by which transactions are recognised, measured and presented in the accounts to show a true and fair view in accordance with the financial reporting standard (FRS) 18.

Basis of Preparation

The accounts (financial statements) have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued on 16 July 2014 and the Charities Act 2011 and UK Generally Accepted Practice as it applies from 1 January 2015.

The accounts (financial statements) have been prepared to give a ‘true and fair’ view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a ‘true and fair view’. This departure has involved following Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued on 16 July 2014 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.

Income Policy

Investment income is recognised as it becomes receivable.

Expenditure Policy

Grants are recognised in the accounts when a commitment has been made.

Fixed Assets

Investment Properties

Investment Properties are recorded in the accounts at current market value as required by the above-mentioned regulations. Valuations are carried out by an external valuer, (being a member of the The Royal Institution of Chartered Surveyors (RICS)) in accordance with the RICS Valuation Standards. Any difference in value arising out of the periodic revaluations is charged / credited to the Revaluation Reserve except where the individual assets have not previously been revalued upwards, in which case any charges will be expensed in the year to which they relate. A valuation was carried out by Avison Young, during the financial year 2018/19. In accordance with FRS102, Accounting for Investment Properties, depreciation is not provided on the land and buildings as these are held as investment properties.

Other Investments

Other Investments are recorded in the accounts at current market value as required by the above-mentioned regulations. Any difference in value on the previous year is charged /credited to the Revaluation Reserve except where the individual assets have not

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Welsh Church Act Fund 2020/21

previously been revalued upwards, in which case any charges will be expensed in the year to which they relate.

Fund Structure

The funds of the trust are restricted in their application to the charitable purposes set out in the “scheme for the administration of the trust” made by the former South Glamorgan County Council.

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Statement of Financial Activities for the year ended 31[st] March 2021

2019/20 2020/21
Unrestricted
Fund		 Endowment
Fund		 Unrestricted
Fund		 Notes Unrestricted
Fund		 Endowment
Fund		 Total
Fund
£’000 £’000 £’000 £’000 £’000 £’000
Income and endowments from:
16 0 16 Investment Properties 18 0 18
35 0 35 Investments 1 31 0 31
**51 ** 0 **51 ** **Total ** 49 0 49
Expenditure on:
0 0 0 Raising Funds–Investment Management Costs 0 0 0
(7) 0 (7) Raising Funds – Property Repairs and
Maintenance		 (3) 0 (3)
0 0 0 Raising Funds–Costs of Sale 0 0 0
(49) 0 (49) Charitable activities–Grant Making 3 (37) 0 (37)
(1) 0 (1) Governance Costs (1) 0 (1)
(57) 0 **(57) ** **Total ** (41) 0 (41)
0 (121) (121) Net gains/(losses) on investments 0 253 253
(6) (121) **(127) ** Net income/(expenditure) 8 253 **261 **
0 0 0 Transfers between funds 0 0 0
0 0 0 Other recognised gains/(losses): 0 0 0
0 0 0 Gains/(losses) on revaluationof fixed assets 0 0 0
0 0 0 Proceeds on disposal of investment properties 0 0 0
0 0 0 Othergains/(losses) 0 0 0
(6) (121) (127) Net movement in funds 8 253 261
**Reconciliation of funds: **
118 4,978 5,096 Total funds brought forward 112 4,857 4,969
112 **4,857 ** **4,969 ** Total funds carried forward 120 5,110 5,230

The notes contained on page 12 forms part of these Accounts.

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Welsh Church Act Fund 2020/21

Balance Sheet as at 31[st] March 2021

2019/20 2020/21
Unrestricted
Fund		 Endowment
Fund		 Total
Fund		 Notes Unrestricted
Fund		 Endowment
Fund		 Total
Fund
£000's £000's £000's £000's £000's £000's
Fixed assets
0 3,231 3,231 Investment Properties 1.1 0 3,231
3,231
0 1,604
1,604		 Investments 1.2 0 1,857
1,857
0 4,835
4,835		 Total fixed assets 0
5,088
5,088
Current assets
5
0		 5 Debtors 2 6
0		 5
39
22		 61 Debtors Cash owed byVale of Glamorgan Council 34
22		 56
100
0		 100 Investments 3 100
0		 100
144 22
166		 Total current assets 140
22		 162
Current liabilities
(32) 0 (32) Creditors: amounts fallingdue within oneyear 4 (20) 0 (20)
(32) 0 **(32) ** Total current liabilities (20) 0 (20)
112 22 134 Net current assets or liabilities 120 22 142
112 4857 4969 Total assets less current liabilities 120 5,110 5,230
**The funds of the charity: **
0 1,004 1,004 Endowment funds 0 1,004 1,004
112 0 112 Unrestricted funds 120 0 120
0 3,853 3,853 Revaluation Reserve 0 4,106 4,106
112 4,857 4,969 Total charity funds 120 5,110 5,230

The notes contained on page 13 and 14 form part of these Accounts. Approved by the trustees at their meeting on 4[th] October 2021 and the Chairman, Councillor M Wilson duly authorised to sign the same on their behalf, subsequent minor amendments were approved by trustees in January 2022. Signed : Cllr. Mark Wilson Date : 27[th] January 2022 Councillor M Wilson

Chairman Vale of Glamorgan Welsh Church Act Estate Committee

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Cashflow Statement

Cashflow Statement
2019/20 2020/21
Notes Prior Year
Funds		 Total
Funds
£’000 £’000
**Cash flows from operating activities: **
Net cash provided by (used in) operating activities 56 53
Cash flows from investing activities
Dividends interest and rents from investments (51) (49)
Proceedsfromthe sale of investments 0 0
Purchase of investments 0 0
Net cash provided by (used in) investing activities (51) (49)
Net cash provided by (used in) financing activities 0 0
Change in cash and cash equivalents in the reporting
period		 5 5
Cash and cash equivalents at the beginning of the
reporting period		 (66) (61)
Cash and cash equivalents at the end of the
reporting period		 (61) (56)

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Welsh Church Act Fund 2020/21

Notes to the Statement of Financial Activities

1. Investment Income

2019/20
£		 2020/21
£
Investment Income from Investments held with
Tilney		 34,645 30,946
Interest Received from Vale of Glamorgan Council 510 56
Total 35,155 31,002

2. Related Party Transactions

lated Party Transactions
2019/20
£		 2020/21
£
Interest Received from Vale of Glamorgan Council 510 56
Total 510 56

The interest shown above is part of Income and Endowments from Investments in the Statement of Financial Activities.

3. Grants Paid

During 2020/21 the Fund awarded total grants amounting to £37k towards the charitable purposes to which the fund may be applied, as detailed below.

Organisation Scheme Amount £
Multiple Sclerosis Society - Cymru Project to overcome impact of Covid 19 on
people with Multiple Sclerosis		 2,500.00
St James Church, Wick Project to address damp and safety
hazards		 5,000.00
Holy Family Catholic Church New heating system 2,500.00
Tabernacle Baptist Church Improve Access and Update Toilet Facility 5,000.00
Salem Baptist Church AutomaticDoors and Stacking Chairs 2,500.00
Vale of Glamorgan Brass Band Toilet Upgrade 2,304.00
TyHafan HospiceRefurbishment 5,000.00
Ainon Baptist Church Community Centre Refusbishment 5,000.00
Vale Cricket ClubLimited WoodenScoreBoxand Cricket Store 500.00
St Catwgs Church Quinquennial Inspection Project 2,000.00
St Cadocs Rectorial Benefice of Barry Installation and Repair of Pathway 5,000.00
Action for EldersTrust Central BalanceLives atHomeProject 2,500.00
National Coastwatch Institution Nells Point Replacement Binoculaurs 3,000.00
Cardiff & Vale Area Scout Council Redevelopment of the Jubilee campsite
(Phase 2) in Peterston Super Ely		 4,000.00
Total Grants Paid asper SOFA 46,804.00
Withdrawal of Grants 2017/18 St Cadocs
Church and Tabernacle Baptist Church		 -10,000.00
Amended Total Grants asper SOFA 36,804.00

4. Trustees Remuneration/Benefits

No remuneration or benefits was paid to Trustees during 2019/20 or 2020/21.

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Welsh Church Act Fund 2020/21

Notes to the Balance Sheet

1. Fixed Asset Investments

1.1 Investment Properties

Land
£’000		 Freehold
Properties
£’000		 Totals
£’000
Balance as at 1st April 2020
Disposals
Additions
Net profit/(loss) on revaluation		 3,232
0
0
0		 0
0
0
0		 3,232
0
0
0
Balance as at 31st March 2021 3,232 0 3,232

1.2 Investments

Investments
2019/20
£’000		 2020/21
£’000
Balance as at 1st April 1,725 1,604
Additions at cost 0 0
Reclassification from short term 0 0
Disposals at carrying value 0 0
Unrealised gains/ (losses) in year (121) 253
Balance as at 31st March 2021 **1,604 ** **1,857 **

The Investments balance at 31[st] March 2021 is made up as follows.

Portfolio % £'000
Equities 50% 929
Investment Grade Corporate Bonds 14% 260
Government Fixed Income 4% 74
High Yield Fixed Income 1% 19
Real Assets 11% 204
Absolute Return 13% 241
Commodity 0% 0
Cash 7% 130
100% 1,857

43% of equities in the portfolio are classed as UK equities and 70% of the overall portfolio is held in Pounds.

2. Debtors – amounts receivable within one year

Debtors at 31[st] March 2021 amounted to £5,771 outstanding from Tilney Investment Management for income on investments in year.

3. Investments

The short-term investment of £100k is invested in the money markets by the Vale of Glamorgan Council on behalf of the fund. Interest is payable at the “Average Seven Day Rate”.

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Welsh Church Act Fund 2020/21

4. **Creditors -amounts payable withinone year **
Creditor 31/03/20
£’000		 31/03/21
£’000
Independent examiners fee
Grants agreed in 2017/18 unpaid at 31stMarch
Grants agreed in 2018/19 unpaid at 31stMarch
Grants agreed in 2019/20 unpaid at 31stMarch
Grants agreed in 2020/21 unpaid at 31stMarch		 6
10
7
9
0		 3
0
1
5
10
Total **32 ** 19

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Welsh Church Act Fund 2020/21

Report of the independent examiner to the trustees of The Vale of Glamorgan Welsh Church Act Fund

I report on the accounts of the Vale of Glamorgan Welsh Church Act Fund for the year ended 31 March 2021, which are set out on pages 6 to 14.

Responsibilities and basis of report

As the charity's trustee, you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (the Act). You are satisfied that the accounts are not required to be audited by charity law and have chosen instead to have an independent examination.

I report in respect of my examination of your charity’s accounts as carried out under section 145 of the Act; In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5) (b) of the Act.

An independent examination does not involve gathering all the evidence that would be required in an audit and consequently does not cover all the matters that an auditor considers in giving their opinion on the accounts. The planning and conduct of an audit goes beyond the limited assurance that an independent examination can provide. Consequently, I express no opinion as to whether the accounts present a ‘true and fair’ view and my report is limited to those specific matters set out in the independent examiner’s statement.

Independent examiner’s statement

I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe:

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

28 January 2022

Adrian Crompton 24 Cathedral Road Auditor General for Wales Cardiff

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