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2020-12-31-accounts

Company Number: 01337047 Charity Number: 507027

THE UNITED REFORMED CHURCH (WEST MIDLANDS) TRUST LIMITED

REPORT AND FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2020

MHA MACINTYRE HUDSON Chartered Accountants and Registered Auditors Rutland House 148 Edmund Street Birmingham B3 2FD

THE UNITED REFORMED CHURCH (WEST MIDLANDS) TRUST LIMITED

Contents

Page
Annual Report 1 to 17
Independent Auditor’s Report 18 to 20
Statement of Financial Activities 21
Balance Sheet 22
Statement of Cash Flow 23
Notes to the Financial Statements 24 to 43

THE UNITED REFORMED CHURCH (WEST MIDLANDS) TRUST LIMITED

Annual Report

Year Ended 31 December 2020

Reference and Administrative Information

Registered Office

Digbeth-in-the-Field United Reformed Church Moat Lane Yardley Birmingham B26 1TW

Directors and Trustees

Mr D.S. Black Mr T. Dicker Revd S.M. Faber Mr G. Justham Mrs M.F. Marshall Mr A. Mottram (resigned 31 March 2021) Mr G.W. Potter (Treasurer to March 2020) Mr S.M. Powell (Treasurer from March 2020) Mr K. Thomas Revd D.M. Walton (Chair of Trust) Mrs E. Hutchinson (Appointed 15 June 2021)

Company Secretary Mrs K .Harris

Bankers

Lloyds TSB Bank (Kings Heath branch) P O Box 1000 BX1 1LT

Legal Advisors

Towns Needham Solicitors Limited Brook House, 64-72 Spring Gardens Manchester M2 2BQ

Veale Wasbrough Vizards LLP Second Floor, 3 Brindley Place Birmingham B1 2JB

Auditor

MHA MacIntyre Hudson Rutland House, 148 Edmund Street Birmingham B3 2FD

Investment Manager Smith & Williamson 9 Colmore Row Birmingham B3 2BJ

Synod Officers

Moderator – Revd S.M. Faber

Synod Clerk – Mrs. M.F. Marshall until March 2020 then Mr R. Lockley Synod Treasurer – Mr G.W. Potter until March 2020 then Mr S.M. Powell Children’s and Youth Development Officer – Mr R. Knott Training and Development Officer – Revd S.P. Scott Evangelist – Revd N. Stanyon Trust Officer – Mrs K. Harris Finance Officer – Mr M.N. Davies

Property Officer – Mr B. Goldsby until September 2020 then Mr M. McDade Safeguarding Officer – Mrs D. Gordon from February 2020

1

THE UNITED REFORMED CHURCH (WEST MIDLANDS) TRUST LIMITED

Annual Report

Year Ended 31 December 2020

Structure, Governance and Management

The United Reformed Church (West Midlands) Trust Limited (“The Trust”) holds the assets and liabilities of the West Midlands Synod of the United Reformed Church (“Synod”). The Trust is a company limited by guarantee formed on 2 November 1977 and a registered charity. It is governed by its Memorandum and Articles of Association as revised in 2008.

Trustees

The directors of the company, who are also trustees of the charity for the purposes of charity law, serve as members of the Board. All members of the Board give their time voluntarily and receive no benefits from the Trust other than the honorarium and reimbursed expenses shown in note 5 to the financial statements.

Trustees serving on the Board during the year were as follows:

Mr D.S. Black, Mr T. Dicker, Revd S.M. Faber, Mr A. Mottram, Mr G.W. Potter, Mr S.M. Powell (Treasurer), Mrs M.F. Marshall, Mr K. Thomas, Mr G Justham and Revd D.M. Walton (Chair of Trust).

Appointment of new trustees

The Synod, which has the sole power to appoint members of the Board, delegates its power to the Synod Mission Council (a sub-committee of the Synod) in between meetings. The Synod Mission Council considers individuals with relevant experience who are eligible for appointment.

Members of the Board must be a member of the United Reformed Church (“URC”) or of a Local Ecumenical Partnership involving the URC. There is no formal programme for the induction and training of trustees although all are encouraged to attend relevant seminars arranged by the Trust’s professional advisors.

Indemnity Insurance

Indemnity insurance of up to £5,000,000 is in place to cover the liability of the trustees in relation to negligence, default, breach of duty or breach of trust. This cover has been arranged through Ansvar Insurance Company Limited.

Organisational structure

Whilst the Trust holds the assets and liabilities of the Synod, it is the Synod which sets policy subject to Trust endorsement and further details of the constitution of the Synod are given below. Any decisions made by the Synod which have financial implications for the Trust must be referred to the Board for approval before being implemented and would normally only have been made by the Synod in the light of advice from the Trust.

The Synod Resources and Compliance Committee now deals with finance and property matters. Its membership consists of Synod Officers, their Line Managers, and others with appropriate skills to be identified and appointed by Synod Mission Council. There is an ongoing process of defining the terms of reference and looking at membership.

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THE UNITED REFORMED CHURCH (WEST MIDLANDS) TRUST LIMITED

Annual Report

Year Ended 31 December 2020

A Reference Committee has authority to approve urgent transactions between meetings, provided that they meet normal qualifications and are reported to the next meeting. It does not normally take decisions which involve substantial sums of money. The Reference Committee for the Resources and Compliance Committee consisted of the Moderator, Synod Clerk, Synod Treasurer and Chair. The Reference Committee for the Trust consisted of the Moderator, Synod Treasurer, Chair and another trustee. The procedure is under review as part of the ongoing process of defining terms of reference.

Constitution of the Synod

Synod is constituted in accordance with the Scheme of Union and the United Reformed Church Acts of 1972, 1981 and 2000 (www.urc.org.uk). It has oversight of the URC in the West Midlands (covering an area from the Welsh Border across to Rugby and from Leek in North Staffordshire down to Wotton-under-Edge in Gloucestershire) fulfilling consultative, legislative and executive functions. Synod meets twice a year and consists of ministers, representatives of each local church and ecumenical representatives together with Synod Officers.

The Trust has responsibility for all Synod finance related matters except for Ministry and Mission Fund matters (by which churches pay for ministry) for which the Resources and Compliance Committee has delegated responsibility. Ministers’ stipends are paid centrally with Synods agreeing with their local churches the level of payments to the central Ministry and Mission Fund. The remit of the Resources and Compliance Committee includes delegated authority for agreeing grants, particularly for property, within criteria and budgets set by the Trust.

Other business between Synod meetings is dealt with by Synod Mission Council and its committees. Synod Mission Council comprises some Synod Officers, Convenors of Synod Committees and representatives from the Areas within Synod (see www.urcwestmidlands.org.uk). During the year there were seven Areas. The work of Synod Mission Council is organised through committees with responsibility for specific aspects within the life of the Church.

Relationships with the URC General Assembly

The Synod acts as a bridge between the work of the local church and the General Assembly. It carries an oversight function for the local churches within the context of the General Assembly’s policies. The councils of the United Reformed Church (Church Meeting, Synod and General Assembly) have a covenantal relationship which means that they have an awareness of and responsiveness to the needs and mission of the whole Church. This is expressed in many ways but not least in the Plan for Partnership through which ministry is supported and in the resource sharing arrangements between Synods.

Related parties

Local United Reformed Churches operating in the West Midlands area are separate independent charities. There is no common control or unity of administration with any of these bodies and they are not deemed to be connected charities within the understanding of the Charities SORP 2015.

Property Holding Trustee

The Trust acts as trustee on behalf of most of the United Reformed Churches in the West Midlands holding properties on trust for them in accordance with the Statutory Trusts as set out in the United Reformed Church Acts. The insured value of these properties exceeds £200 million and there are guidelines in place to minimise the risk to the Trust of actions by local churches in respect of these assets.

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THE UNITED REFORMED CHURCH (WEST MIDLANDS) TRUST LIMITED

Annual Report

Year Ended 31 December 2020

Custodian Trustee

The Trust acts as custodian trustee for some churches and other URC related organisations, holding investments separately on their behalf. The investments have a value of approximately £802,000 and the local churches have objects consistent with those of the Synod. The investments are held in deposits and investments separate from those of the Trust and identified as such. The funds are recorded and reconciled on a regular basis and reported to the appropriate church or group on an annual basis.

Risk management

Synod has undertaken a thorough Risk Assessment review and is currently looking at it again. This process considers the risks to which the Synod and Trust are exposed and agrees policies and actions to minimise any potential exposure to those risks. The reserves policy and investment policy of the Trust are considered to play a key part in mitigating the major risk of having insufficient resources to provide the appropriate level of support to United Reformed Churches within the Synod area.

KMP remuneration policy

Key management personnel are the trustees of the charity and do not receive remuneration other than the Moderator who is remunerated by the national United Reformed Church, which accordingly makes decisions on the stipend. Decisions on remuneration levels for paid staff are based on consideration of the market rates for staff with the relevant qualifications and experience to fulfil roles, regard is had to published pay scales for similar roles. All rates of pay are reviewed annually and amended in the light of changes in the cost of living and known pay rises elsewhere in the URC.

Objectives and activities

The objects of the Trust, as set out in the company’s memorandum of association, are:-

The advancement of the Christian religion for the benefit of the public in accordance with the doctrines, principles and usages of the United Reformed Church in particular (but without prejudice to the generality of the foregoing) by supporting the work of the West Midlands Synod of that Church.

The aim of the Trust, through the work of the Synod, is to provide financial, pastoral, educational and technical support to local URC congregations, their Ministers, Elders and lay people in their life and mission. It is also to share the vision of the United Reformed Church’s General Assembly with the local churches. This it has done through the development of a Synod strategy which is heavily based on the framework set out by the Assembly for developing the United Reformed Church’s mission towards 2020, and now beyond. The Board has overall responsibility for decisions relating to the assets held at Synod and local church level.

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THE UNITED REFORMED CHURCH (WEST MIDLANDS) TRUST LIMITED

Annual Report

Year Ended 31 December 2020

Ensuring delivery of the Trust’s aims and public benefit

The trustees have referred to the general guidance issued by the Charity Commission on public benefit when considering the delivery of activities in furtherance of the aims and objectives. The Trust, through the work of the Synod, supports 108 churches in the region with 3596 United Reformed Church members. Our support of these churches and their congregations aims to further their purposes in advancing the Christian religion.

Although from time to time churches to which trustees may belong are beneficiaries of financial support, there are agreed procedures to ensure that no trustee derives a private benefit and that no undue bias arises in considering the merits of the application. Potential conflicts of interest are declared and noted in relation to trustees, Synod Officers and others. Minutes and other appropriate records are kept including how discussion and decision making has subsequently been carried out when a conflict has been declared. This process is currently under review.

Financial support and grant making policies

A range of loans, sometimes held as programme related investments, and grants are available to local churches to assist them with their mission and with improvement and maintenance of properties and to local ministers to support ministerial training, development and sabbaticals.

As a result of the COVID 19 restrictions it was recognised that many of our churches would be severely adversely affected financially. The Trust immediately introduced a system of support, subject to certain criteria, which benefitted 87 of our churches and cost £384,000.

A Synod Mission Fund of £1 million was established in 2010, an idea introduced as part of the Vision 2020 process. The Synod created the fund as part of its responsibility to encourage, enable and support local churches in their mission activities. The Fund is a resource to enable mission to develop and, in particular, as a financial support to Mission pledges. During 2020 the Trust extended the scope to cover the cost of digital equipment to support outreach and worship.

Another important aspect of the support offered to churches is through the Synod Manse Policy. In addition to grants and short-term loans for improving existing manses, capital investment is often made when purchasing replacement manses to improve standards. The Trust has enabled the purchase of replacement houses before sale of the existing manse in certain instances. During 2020 the Trust introduced a Manse Repairs allowance for £500 to cover the cost of routine maintenance to ensure that there should be no financial reason why necessary repairs should not be carried out, so ensuring good quality housing to our ministers. Further the Trust has also commenced paying insurance of manses. The Trust also provides contributions from the sale of redundant church buildings to support The Ministers Pension Fund. The Trust is active in the Inter Synod Resource Sharing system which supports the Synods with least resources.

The Trust has an approved grant making policy, which is kept under review. The current rate of Property Grants is 25% of cost subject to a maximum of £30,000 in any three year period. The grant making policy for ministerial training is based on national guidelines. In all cases grant awards are made after consideration of the mission statement and financial situation of the applicant.

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THE UNITED REFORMED CHURCH (WEST MIDLANDS) TRUST LIMITED

Annual Report

Year Ended 31 December 2020

Pastoral and Educational support

The role of the Moderator is to work with Synod Officers and Committees to provide spiritual, strategic and pastoral leadership to churches within the West Midlands Synod. This objective is met by the care, encouragement, support and challenging of ministers and churches through meetings, conferences, visits and training events and being responsive when difficulties arise.

The Synod is divided up into Areas to help communication and pastoral support to develop more readily across the region. A key body in this process is the Ministry Development Committee. It comprises the Area Ministers from each Area with the Moderator and key Synod Officers and it is chaired by a Minister of the Synod. In the context of the Areas the Moderator is instrumental in encouraging conversations about pastorates and calling of ministers.

The Synod Training and Development Officer and the Synod Evangelist are Ministers of Word and Sacraments, inducted to their Synod roles following a call issued and accepted recognising their appropriate skills and experience. The Children and Youth Development Officer is a salaried post, with recruitment also based on skills and experience.

The role of the Synod Training and Development Officer is to implement those parts of the Synod Mission Strategy concerned with establishing, developing and control of lay training, and to implement those parts of the Synod Mission Strategy concerned with EM1, EM2 and EM3 (Education for Ministry Phases 1-3) as a lifelong and ongoing process for Ministers and Church Related Community Work Ministers, and to provide advice, support and guidance as appropriate in relation to training in other aspects of mission and ministry in the Synod.

The Synod Evangelist works with local congregations encouraging and responding to invitations from local churches to be involved in specific outreach projects. He also offers training in evangelism and explores with elders, churches and individuals how they can be responding to opportunities to share their faith.

Work in the local churches with Youth and Children continues to be supported and enabled by the work of the Children and Youth Development Officer.

Technical support

The Synod Property, Finance, Trust and Safeguarding Officers are paid staff recruited on the basis of their professional experience and skills to enable day to day operations.

Where churches are Listed buildings, Synod has a statutory role under Ecclesiastical Exemption, which the Property Officer carries out with the assistance of other officers of the wider United Reformed Church. In addition, Synod seeks to provide advice and guidance to assist churches to meet their obligations as Listed Buildings while developing their mission and vision. Support is also provided in other areas where changes in policy or legislation have to be implemented on a practical basis at local church level and training and/or advice is made available to these churches including the provision of an annual conference for church treasurers and those interested in finance and the provision of Health and Safety awareness to Church Elders.

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THE UNITED REFORMED CHURCH (WEST MIDLANDS) TRUST LIMITED

Annual Report

Year Ended 31 December 2020

In some cases, churches may need legal or other professional advice. The Trust continues to encourage appropriate use of external advice and assist with securing services which are effective and provide best value. Following a review of legal services in 2017 when the decision was made to work with more than one firm of Solicitors, the Trust has continued to work with Towns Needham as well as Veale Wasbrough with the former providing support particularly in areas requiring specialist knowledge of the URC Acts.

Technical support is of particular relevance where churches are facing closure or entering into local ecumenical projects and partnerships and decisions have to be made about surplus properties. The Trust provides support through the decision-making process and legalities both technically and pastorally. On occasions financial support is also made available on a temporary bridging basis.

The Synod Property Officer continues to provide technical support to local churches in the maintenance and enhancement of their church buildings. This includes working closely with local church leadership to resolve practical and technical issues regarding various projects. Throughout the course of 2020 numerous churches and manses were visited by the Property Officer, within the confines of the pandemic and associated lockdowns. The major project at Ansty Road was completed and discussions begun concerning others, although the ability to meet on site for nonurgent matters was severely curtailed. A project to install PV panels on manse roofs throughout the Synod area was initiated and a pilot scheme undertaken in Cheltenham. It was expected that this would continue into 2021.

In addition to being in charge of the Accounts, the Synod Finance Officer is Secretary to the Synod Mission Fund Panel and assists local Churches with their grant applications and other areas of church finance.

The Synod Trust Officer is Secretary to the Board and Synod Resources and Compliance Committee. She offers support to local Churches and other officers particularly in the areas of governance and charity law, working with solicitors and others as appropriate.

The Synod Safeguarding Officer works with local churches to ensure that children and adults at risk are protected to the best of our ability. She is responsible for co-ordinating safeguarding training around the Synod and ensuring that the revised policies and procedures for safeguarding in the fifth edition of the United Reformed Church’s Good Practice Guide are implemented.

COVID-19 Pandemic response and support

Through most of 2020, the COVID-19 pandemic had a significant effect on church attendance and activities. With two periods of lockdown resulting in churches being closed for physical meetings, many churches were able to move to online worship, some of which were supported through grants from the Mission Fund to provide new equipment. That funding stream remains open to churches. Other congregations, recognising their local context, decided to distribute paper-based worship and devotional resources. Additionally, some churches were able to offer prayer and Bible study meetings online, as well as social activities.

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THE UNITED REFORMED CHURCH (WEST MIDLANDS) TRUST LIMITED

Annual Report

Year Ended 31 December 2020

Two churches, recognising the ability of small and elderly congregations, came to the conclusion that their worship, witness and service should conclude at the end of December 2020. The additional time and energy needed to maintain COVID-Secure buildings in line with Government requirements were too much for them to contemplate. We mark with thanksgiving all that St Columba’s, Coventry and Dudley URCs have achieved in their time.

Staff worked from home from March. The office reopened in June with procedures in place to make it COVID secure and staff attended on a rota basis. Since then, staff have either worked from home or partly in the office as government guidance changed. Support has been given to staff through regular online meetings, the provision of equipment and the payment of a working from home allowance. Hours of work and salary have not been reduced, and no staff have been furloughed.

Trust and committee meetings have continued with the usual frequency using video conferencing, enabling decision making to continue. Attendance and engagement by committee members have been good.

Achievements and performance

Financial support in the form of grants was made to local churches during the year to assist with the improvement and maintenance of church buildings and manses, details of which can be found in note 4 to the financial statements.

With the new Manse Guidelines, developed and brought through a robust discussion process in 2014, and formally adopted at Spring Synod in 2015, the programme of inspection of Manses currently occupied by a Minister, along with the inspection of other Manse properties continued.

During 2020, the Property Officer continued to deliver a programme of investment into the manse stock required to meet future ministerial deployment across the Synod bringing consistency in the improvement, maintenance/repair and energy efficiency of the property portfolio. Following approval of the new Synod Manse Policy in 2018, the Synod Property Officer in consultation with the Synod Finance Officer committed £100,000 per year to support improvement works to fourteen manses.

The network of Architects and Surveyors, established in 2014 to support the Quinquennial Survey programme, continued to progress the programme commenced in the latter part of 2014, with most listed churches having been surveyed along with most non-listed churches. Completed Quinquennial Reports continue to be circulated to Area ministers and churches, with the response that the information contained within the reports has assisted churches to plan and budget for short, medium and long term maintenance/repair programmes.

The Synod Property Officer in 2020 continued to work with a health and safety consultant to deliver a training presentation to support churches with compliance with relevant health and safety legislation.

The Synod Mission Fund is now in its ninth year of operation and continues to support local churches in mission activity and the achievement of mission pledges. We have amended the criteria to make it more accessible to smaller churches. During the year financial support was committed to seven new projects.

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THE UNITED REFORMED CHURCH (WEST MIDLANDS) TRUST LIMITED

Annual Report

Year Ended 31 December 2020

Grants were awarded to support: -

The Synod Mission Fund balance is £520,089 which includes £20,441 from a legacy for use in the Coventry Area. Grants of £63,426 have been awarded in 2020

Our global partnership with the Diocese of Durgapur was maintained, with continued involvement of the Trust in managing further release of the legacy which financed the Colin Choyce Hostel for children at risk or rescued from human trafficking and now contributes to running costs. During 2020 £11,900 was sent to this project.

The Synod Safeguarding Officer (SSO) came into post in March 2020. Upon administering and reporting the annual returns in April, it was recognised that training was a priority for the region. She joined the Training review group , working with a sub group of other SSOs and the Training & Development Coordinator to create robust training programs for Safeguarding throughout the country. Since the safeguarding training programme was agreed, she has facilitated 6 training sessions on zoom. Going forward it is anticipated that a minimum of two basic Safeguarding training sessions per month will be facilitated for the West Midlands Synod.

The SSO has worked in collaboration with the TDO to support the roll out of Safer Sacred Space training. The Safeguarding Symposium took place in October and was a success with excellent attendance and subsequent interest.

The SSO regularly meets with the safeguarding peer support group established with small group of URC Safeguarding Officers to support and ensure good practice. The SSO continues to establish links with statutory and voluntary sector agencies, taking up opportunities to attend training.

There have been approximately 75 enquiries to the SSO from churches, ranging from quick policy advice to liaising with statutory agencies in order to ensure adequate help is put in place for adults at risk. The SSO continues to contribute to the Communications working group who are developing a communications strategy for the West Midlands Synod. A new safeguarding policy statement for the West Midlands has been agreed and added to the website.

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THE UNITED REFORMED CHURCH (WEST MIDLANDS) TRUST LIMITED

Annual Report

Year Ended 31 December 2020

In the light of the lockdown and other restrictions imposed in response to the coronavirus pandemic, nearly all the activity of the Training and Development Officer (TDO) has been on-line. For ministers, this has included a ministers’ conference and a regular “Open Forum” gathering, and leading ordinands through the “Introduction to the URC” course that is required. The TDO has also continued to respond to enquiries and applications for funding for training, both for on-going training and for sabbatical leave. He has worked with the Synod Lay Preaching Commissioner in delivering “Meet and share” opportunities for lay preachers, both serving and in training, and with the Synod Moderator in a consultation for Church Secretaries. With the Synod Safeguarding Officer the TDO has planned and delivered both initial and refresher training on professional boundaries, as mandated by the denomination, and collaborated on other initiatives and training sessions with the Synod Evangelist and Youth and Children Development Officer, with Training and Development colleagues in other Synods of the United Reformed Church, and with ecumenical colleagues across the West Midlands particularly in relation to discipleship.

The TDO has also continued to be involved in the development of strategy and planning through attendance at meetings, in the Synod and, through membership of the Assembly Ministries Committee and the Board of Studies at Westminster College, in the wider church. Since September he has carried increased responsibility, pending changes in the College teaching staff, as interim convener of the latter body, which has included membership of the Governing Body.The TDO has also continued to respond to invitations to lead worship, in both virtual and physical contexts.

The Synod Evangelist returned to full time work in March, coinciding with the first lockdown His focus has been to enable churches/ministers to think, not ‘how can we invite people to come back to our buildings?’ but ‘how can we find new ways to reach out in this time of covid’? Mostly, this has involved helping churches go online, providing training and support to ministers and churches doing this. Participation in worship and training has largely been online, with just a handful of live events possible in the year. The Evangelist has also run an online Alpha course attended by folk from across the Synod and engaged in the Genexis Course. The Good news story sharing evolved into a series of ‘Life in Lockdown’ videos, filmed over zoom and shared through the new Synod you-tube channel he set up. While conversations about faith sharing for over 60s has continued slowly through lockdown, no particular resource has, as yet, been created.

Work in the local churches with Youth and Children was supported by the appointment of Mr R Knott from 6 January 2020 as Children and Youth Development Officer (CYDO). He is already being effective in encouraging and equipping those who minister alongside children and young people in all parts of the Synod utilizing digital technology when he possibility of physical meetings are restricted due to Covid-19. Regular online Youth events have been established in partnership with the East Midlands Synod. Two series of Core Skills training sessions have been offered in a virtual meeting space to volunteers in local churches. Regular newsletters with information on events and resources are circulated in addition to the use of some social media platforms. The CYDO continues to be available to churches in the Synod to offer support, encouragement and resources.

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THE UNITED REFORMED CHURCH (WEST MIDLANDS) TRUST LIMITED

Annual Report

Year Ended 31 December 2020

A comprehensive ministerial deployment plan for the next ten years was completed in 2017 and accepted by Synod Pastoral Committee (now the Synod Ministry Development Committee), identifying how we intend to use decreasing ministerial resource over this period. Implementation of the plan had begun. However, a change in protocols agreed at General Assembly level means that implementation of that plan has to be accelerated. The United Reformed Church as a whole is below the planned level of Stipendiary Ministers, and the West Midlands Synod must now operate within strict limits of its “share” of the limited pool. Further consultation is underway with local churches across the Synod to agree even tighter restrictions, which will slow or stop the calling of new Stipendiary Ministers into the Synod until a new deployment plan has been agreed. Local churches will need to identify other local patterns of leadership to work with Stipendiary Ministers and the Synod is committed to supporting our churches as they seek to discern and develop new leadership patterns. Further, the Trust has agreed to create a designated Ministry Support Fund of £500,000 to allow maximum flexibility in deploying Stipendiary Ministers and employing local workers, where there is a clear commitment and plan to work for numerical growth in our churches. We anticipate making the first grants from this fund during 2021.

Following decisions taken at General Assembly in 2016, Synod discussed a policy on Authorised Elders in relation to presidency at the sacraments of baptism and communion when a minister of Word and Sacrament is not available either at short-notice or is known ahead of time. The policy was agreed with processes for the appointment of Authorised Elders, limits on authorisation, and the requirement for training to the agreed syllabus at the direction of the Synod Training and Development Officer. Guidelines on conduct and behaviour of Authorised Elders were also agreed.

Financial review

Financial Statements

The financial statements, including the notes, have been prepared in compliance with the new Statement of Recommended Practice “SORP2015 (FRS102)”. The analysis of income and expenditure reflects the classification of activities, together with costs relating to administration. The Synod and Trust do not sell goods or services, nor are there any other trading activities.

A financial review document is made available to all members of Synod, and local churches if requested. This document highlights the main features of these financial statements. The review includes a comparison between the budget and the final operating income resources and expenditure.

Statement of Financial Activities

The Statement of Financial Activities is shown on page 21, with a more detailed analysis of income and expenditure on pages 28 to 31.

After many years of increases the total operating income for the year reduced by 13.3% to £499,414 as a result of eliminating the Synod Levy paid by our churches to support the work of the Synod. There was a 12.6% increase in investment income following reductions in dividends paid resulting from the COVID 19 situation. Immediately before the year end an additional £473k was invested arising from the sale of properties. In addition a surplus of £443,114 was realised from sale of a Manse and £972,106 on the sale of two churches. Both of those sales were for on-going congregation and net proceeds were credited to a Designated Fund for their future use.

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THE UNITED REFORMED CHURCH (WEST MIDLANDS) TRUST LIMITED

Annual Report

Year Ended 31 December 2020

The total operating expenditure more than doubled to £1,522,324, this is a result of £383,719 having been released to support Churches during the restrictions caused by COVID 19 and the release of £375,076 from prior church sales proceeds. It was pleasing that the Mission Fund was able to award grants of £63,426. Once again, we released £9,000 from a Restricted Legacy to the Church of North India for the running costs of a Children’s Hostel. We continue to invest in our buildings, Church property grants increased from £31,007 to £54,304 and spending on manses increased from £112,188 to £129,601.

The restrictions in place during 2020 limited the ability for training to take place resulting in Training grants and training costs for Ministers, Lay Preachers and Members to have reduced. The Trust is fully committed to supporting the training costs of those at all levels within the Synod.

Other incoming resources consisted of surplus on disposal of a manse at Rugby, these proceeds are held in the Synod Manse Fund and allow the Synod to advance capital for the upgrade and replacement of manses so that they are of a suitable standard. Also, we received proceeds from the sale of churches at Hobs Moat and Holly Mount.

There was no call on funds to the Ministers Pension Fund nor the Retired Ministers Housing Society, although the Trust is committed to supporting the financial requirements of the Ministers Pension Fund.

The Trust is currently in discussions with the United Reformed Church regarding a solution to provide financial support to the Ministers Pension Fund which is in deficit. Due to the structure of the national church and ministerial appointments there is no legal obligation for the Trust but all of the regional and national Synods have been approached and there is wide acceptance that there is a moral obligation at the Synod level and that such support does fall within the charitable purposes of the Trust. Whilst discussions are still ongoing and there is no binding agreement, the Trust has made an in principle offer of around £4m which would be payable over a period of 9 years commencing in 2022. The Trust considers that this sum is affordable in the context of existing resources and expected future income such that it should not adversely affect the work of the Trust or threaten its financial stability.

A rise in the stock market resulted in unrealised gains of £1,073,713.

Balance Sheet

Reference has been made above to the increase in the funds balance. An analysis of the funds movements is shown on page 33.

Programme Related Investments stood at £2,424,250 relating to 15 manses. These are funds invested by Synod to assist local churches to purchase or update the properties and to assist certain individuals.

Reserves policy

The Trust holds funds under a number of different terms. Funds which are restricted or endowed may only be used as directed by the funder at the time they were granted to the Trust. Details of the specific restrictions of those individual funds are disclosed in note 8 to the financial statements.

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THE UNITED REFORMED CHURCH (WEST MIDLANDS) TRUST LIMITED

Annual Report

Year Ended 31 December 2020

Other funds are unrestricted and can be used at the discretion of the trustees in furtherance of the Trust’s objects. It is the policy of the trustees to designate certain funds for particular purposes as agreed from time to time and details of the purpose and use of those designated funds can be found in note 8 to the financial statements.

The remaining general unrestricted funds are required to cover the support costs and grants awarded. The policy of the trustees is to aim to hold sufficient investments and deposits that the income generated will cover one full year’s total expenditure, net of grants received.

In evaluating the value of our income in this regard we consider the total return on our investments, both yield and appreciation in value, whilst we have experienced both increases and decreases in individual years, over the long term investments have appreciated. In setting our budget we actively consider the level of expenditure that can be sustained from income and gains on investments. Certain forms of expenditure are also planned to specifically draw on existing reserves, particularly designated reserves.

At 31 December 2020 the total funds comprised:-

Restricted funds
Unrestricted funds
Designed funds
Total funds		 £
34,489
9,415,204
14,517,338
23,967,031

Investment policy

The agreed investment objectives are:-

To maintain adequate liquidity; To maintain the security of any investments; To minimise capital loss;

To maintain a mixed portfolio of fixed and equity investments whilst providing a balance between income and growth;

To adhere to any restrictions as defined from time to time by Synod, including an ethical policy; and

To obtain the optimum yield, subject to complying with the above criteria.

The current restrictions defined by Synod are that investments should avoid those companies that have significant involvement in armaments, pornography, supply of alcoholic drinks, gambling and tobacco manufacture.

13

THE UNITED REFORMED CHURCH (WEST MIDLANDS) TRUST LIMITED

Annual Report

Year Ended 31 December 2020

During 2020 the Trust completed its commitment to divest from companies that derived more than 10% of their turnover from the extract, processing or sale of other fossil fuel in accordance with the URC Mission Council resolution in 2019 to Divest from Fossil fuels by the time of General Assembly in July 2020.The Trust had previously sold any holdings in companies with income derived from Tar Sands and Coal. The Trust also asked its investment managers in association with MSCI to assess the Environmental, Social and Governance (ESG) ratings of its portfolio. The direct holding in our portfolio has been assessed as being AAA, including holdings through funds the rating AA with an upward trend in ratings, with no company below BBB. This puts us above the median of all shares. Our portfolio was also judged to have a low carbon risk. The Trust and Investment subcommittee will continue to monitor the ESG ratings and carbon risk of its holdings.

An investment portfolio is managed by Smith & Williamson and investment advice is sought from them as required. Individual purchases and sales are made by the investment manager in accordance with a working practice that included two meetings during the year with the Trust Investment Committee, a sub-group of the Executive Committee which includes the treasurer, finance officer and four other members with the relevant knowledge and experience.

In addition to this portfolio, funds were also invested with the Charities Official Investment Fund (COIF) managed by CCLA.

Asset Allocation

The current allocation of investments is as follows: -

Investment Performance

The trustees in consultation with the Company’s Investment Managers are content that the Company’s medium to long term strategy remains sound. The investment performance of the Trust’s portfolio is summarised in the table below.

14

THE UNITED REFORMED CHURCH (WEST MIDLANDS) TRUST LIMITED

Annual Report

Year Ended 31 December 2020

Total Return after Income yield at
Charges over 31 December
2020 2020
% %
Smith and Williamson – Investment Managers 7.32 2.20
CCLA (COIF Charities Ethical Investment Fund) 9.45 3.16
Epworth Investment Management -0.78 0.40
Comparative Measures -
Bench Mark – MSCI PIMFA (Growth) 22.2%

Cash

For many years it has been the Company’s policy to hold sufficient cash within the Unrestricted General Funds to fund its operational needs, grant commitments and capital expenditure commitments. In response to the sustained low yields available on such cash and the reduced need for capital expenditure the Investment Sub Committee agreed in 2016 to maximise its managed investment income by limiting the amount of cash held at all times, with any excess over short term cash flow requirements being invested in managed investments until required. The cash and deposits held at the end of the year was £795,829, which was higher than the targeted level as there were significant uncertainties at present along with known spending plans requiring funding.

Future plans

The Synod’s support for local churches continues to be determined by the Synod Mission Strategy in which we are committed to the United Reformed Church’s Statements of Mission Purpose as set out by General Assembly. These have been adapted to reflect the needs the Synod’s churches have identified as priority requirements for them. The Synod Strategy reminds us that we are called to be disciples of Jesus and to live the life of Jesus and is encouraging local churches in being disciples, making disciples and transforming disciples. Conversations are under way with Area Ministers and other key officers as to how the current strategy should be updated for 2021 and beyond.

Because of denominational policy the Synod faces a year-on-year decline of the number of Stipendiary Ministers available to local churches, and Synod Officers are actively managing plans for that reduction and continuing to look at ways in which to increase the range of lay leadership and ministries to compensate for the reduction in ordained Ministers. The new Ministry Support Fund described above is one way in which we intend to realise that support.

15

THE UNITED REFORMED CHURCH (WEST MIDLANDS) TRUST LIMITED

Annual Report

Year Ended 31 December 2020

In addition in 2021 the following are planned within our strategy:-

16

THE UNITED REFORMED CHURCH (WEST MIDLANDS) TRUST LIMITED

Annual Report

Year Ended 31 December 2020

Trustees’ Responsibilities

Company law requires the trustees as directors to prepare financial statements for each year, which give a true and fair view of the state of affairs of the charity and the incoming resources and application of resources, including the net income or expenditure, of the charity for the year. 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 to enable them to ensure that the financial statements comply with the Companies Act 2006. They 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.

In so far as the trustees are aware:-

On behalf of the Board

Revd. D.M. Walton – Chair of Trust

Date: 22 September 2021

17

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF

THE UNITED REFORMED CHURCH (WEST MIDLANDS) TRUST LIMITED

Opinion

We have audited the financial statements of The United Reformed Church (West Midlands) Trust Limited (the ‘charitable company’) for the year ended 31 December 2020 which comprise Statement of Financial Activities, Balance Sheet, Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis of opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company 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 of our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors’ 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 company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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

Other information

The trustees are responsible for the other information. The other information comprises the information included in the trustees’ 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 assurance conclusion thereon.

18

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF

THE UNITED REFORMED CHURCH (WEST MIDLANDS) TRUST LIMITED

In connection with our audit 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 in the financial statements or a material misstatement of the other information. 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.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees’ report.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement, the trustees (who are also the directors of the charitable company for the purposes of company law) 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.

In preparing the financial statements, the trustees are responsible for assessing the charitable company’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 intent to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

19

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF

THE UNITED REFORMED CHURCH (WEST MIDLANDS) TRUST LIMITED

Auditor’s responsibilities for the audit of the financial statements

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

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

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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

This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinion we have formed.

Helen Blundell LLB, FCA, FCIE, DChA (Senior Statutory Auditor) For and on behalf of MHA MacIntyre Hudson (Statutory Auditor) Birmingham, United Kingdom Date: 27 September 2021 20

THE UNITED REFORMED CHURCH (WEST MIDLANDS) TRUST LIMITED

Statement of Financial Activities (Incorporating Income and Expenditure Account) Year Ended 31 December 2020

2019
Total
Funds
Notes
£
Income from:
Charitable activities:
67,660
Grants received
2a
2,000
Other income
2a
Investments
483,786
Investment income
2a
4,000
Rents
2a
Incoming resources from
charitable activities:
557,446
Total Operating Income
2a
2,186,184
Income on sale of properties
2a
2,743,630
Total Income
Expenditure on:
86,033
Generating funds
2b
596,977
Charitable expenditure
2b
683,010
Total Operating Expenditure
2b
2,791,343)
Net (gains)/losses on
investments
7
(
64,272
Payment to Ministers Pension
Fund
4
-
Transfer from local church funds
2,044,061)
Total Expenditure
(125,564)
Net Expenditure on Operating
account
2b
(
4,787,691
Net Income for the Year
Other recognised Gains &
Losses
-
Transfer between reserves
8a
4,787,691
Net Movement in Funds for
the year
17,382,666
Funds Balances brought
forward

22,170,357
Fund Balances
carried forward
8a
 2020
Total
Funds
£
14,114
47,000
422,805
15,495
499,414
1,415,220
1,914,634
77,321
1,445,003
1,522,324
1,073,713)
-
(330,651)
117,960
1,022,910)
1,796,674
-
1,796,674
22,170,357
23,967,031		 Unrestricted
General
Designated
Restricted
£
£
£
9,919
-
4,195
2,000
45,000
-
213,886
208,919
-
-
15,495
-
225,805
269,414
4,195
145,727
1,269,493
-
371,532
1,538,907
4,195
46,353
30,968
-
768,410
664,693
11,900
814,763
695,661
11,900
(674,216)
(395,798)
(3,699)
-
-
-
-
(330,651)
-
140,547
(30,788)
8,201
(588,958)
(426,247)
(7,705)
230,985
1,569,695
(4,006)
(105,469)
105,469
-
125,516
1,675,164
(4,006)
9,289,688
12,842,174
38,495
9,415,204
14,517,338
34,489

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.

21

THE UNITED REFORMED CHURCH (WEST MIDLANDS) TRUST LIMITED COMPANY NUMBER 01337047 Balance Sheet

As at 31 December 2020

2019
Notes
£
Fixed Assets
258,083
Tangible assets
9
19,201,115
Investments
10
2,424,250
Programme related investments
11
21,883,448
Current Assets
109,041
Debtors
12
677,763
Cash and short-term deposits
13
786,804
(484,371)
Creditors: Amounts falling due
within one year
14a
302,433
Net Current Assets
22,185,881
Total Assets less Current Liabilities
(15,524)
Creditors: Amounts falling due
after more than one year
14b
-
Provision for charges
14c
22,170,357
Net Assets
Funds:
Restricted Funds
27,265
Other
11,230
Revaluation reserve
38,495
Unrestricted funds
General
5,834,295
- Other
3,455,393
- Revaluation reserve
9,289,688
Designated
11,761,446
- Other
1,080,728
- Revaluation reserve
12,842,174
22,170,357
Total Funds
15		 19,560
14,929
5,285,596
4,129,608
13,063,282
1,454,056		 2020
£
246,040
20,702,534
2,424,250
23,372,824
103,808
795,829
899,637
(272,006)
627,631
24,000,455
(21,499)
(11,925)
23,967,031
34,489
9,415,204
14,517,338
23,967,031

These financial statements have been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.

Approved by the Trust Board on 22 September 2021 and signed on its behalf by

Revd D.M. Walton - Chair of Trust Mr S.M. Powell - Director and Treasurer

22

THE UNITED REFORMED CHURCH (WEST MIDLANDS) TRUST LIMITED

Statement of Cash Flows

Year ended 31 December 2020

Notes
2020
£
Cash flow from operating activities:
Net cash provided/used in operating activities
A
(1,311,564)
Cash flows from investing activities:
Investment income
438,300
Proceeds from programme related investments
1,415,220
Purchase of programme related investment
-
Proceeds from sale of investments
2,827,938
Purchase of investments
(3,143,111)
Net (decrease)/increase cash provided by investing
activities
1,538,347
Net increase in cash and cash equivalents in the
reporting period
226,783
Cash and cash equivalents at the beginning of the
reporting period
768,296
Cash and cash equivalents at the end of the reporting
period
B
995,079
Notes to the statement of cash flows
A)
Reconciliation of net income/expenditure to net
cash flow from operating activities
Net income for the reporting period (as per the
statement of financial activities)
1,796,674
Adjustments for:
(Gains) and losses on investments
(1,444,511)
Depreciation
12,043
Surplus on sale of programme related investments
(1,415,220)
Investment income and rents
(438,300)
Decrease/increase in debtors
41,564
Increase/(decrease) in creditors
136,186
Net cash used in operating activities
(1,311,564)
B)
Analysis of cash and cash equivalents
Cash at bank and in hand
29,433
Deposit accounts
766,396
Cash held by investment manager
199,250
995,079		 2019
£
(652,127)
487,786
2,186,183
(599,944)
1,575,276
(2,952,270)
697,031
44,904
723,392
768,296
4,787,691
(2,689,858)
12,040
(2,186,183)
(487,786)
(18,368)
(69,663)
(652,127)
50,882
626,884
90,530
768,296

23

THE UNITED REFORMED CHURCH (WEST MIDLANDS) TRUST LIMITED

Notes to the Financial Statements

Year Ended 31 December 2020

1. Accounting Policies

General Information

The United Reformed Church (West Midlands) Trust Limited is a charitable company limited by guarantee and registered in England and Wales. In the event of the charity being wound up the liability in respect of the guarantee is limited to £1 per member. The registered office is shown on page 1. The nature of the charity’s operations and principal activities are the advancement of the Christian religion by supporting the work of West Midlands URC Synod.

The company’s functional and presentational currency is British Pound Sterling (£).

Basis of Accounting

The charity constitutes a public benefit entity as defined by FRS 102. 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) (SORP FRS102), the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011, the Companies Act 2006 and UK Generally Accepted Practice (UK GAAP).

The financial statements are prepared under the historical cost convention, modified to include certain items at fair value.

The significant accounting policies adopted, are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

The following judgements (apart from those involving estimates) have been made in the process of applying the above accounting policies that have had the most significant effect on amounts recognised in the financial statements:

Programme related investments – a judgement made as to whether impairment is required. These judgements are based on the current property market.

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year include:

Contingent assets and liabilities – estimations are made based on information available at the point of approval of the financial statements as to the probability and value of the transactions.

Going concern basis

The financial statements have been prepared on a going concern basis. The directors have considered budgets, cash flows and the impact of subsequent events, including that of COVID19. Whilst the economic shutdown in response to COVID19 has a significant impact on the charity’s operations, the directors are satisfied that the charity has sufficient available resources, both in terms of cash and investments that can be converted to cash, such that there is no material uncertainty and the going concern basis of preparing the financial statements continues to be appropriate.

24

THE UNITED REFORMED CHURCH (WEST MIDLANDS) TRUST LIMITED

Notes to the Financial Statements

Year Ended 31 December 2020

1. Accounting Policies (continued)

Funds Incorporated

The financial statements show the combined income, expenditure, assets and liabilities of the following funds which are administered for the benefit of the United Reformed Church within the West Midlands Synod :-

General Purposes Fund Church Buildings Fund Manse Fund Retired Ministers Housing Fund Mission Fund Choyce Legacy Stretton Fund Ministry Support Fund

Funds administered on behalf of local churches are not included.

Description and Use of Funds

Restricted income funds are funds whose use is restricted to specific purposes according to the terms on which the funds were received.

Unrestricted income funds may be spent generally for furthering the Christian and charitable work of the United Reformed Church in the West Midlands. The main fund in this category is the General Purposes Fund. Certain funds have been allocated for Church Buildings or Manses, although the committee retains authority to re-allocate such funds and so they are treated as Designated Funds within Unrestricted Income Funds.

Contribution to Pension Funds

The charity operates a defined contribution pension scheme. Contributions are charged as expenditure as they become payable in accordance with the rules of the scheme.

Income Recognition

All incoming resources are included in the Statement of Financial Activities (SoFA) when the charity is legally entitled to the income after any performance conditions have been met, the amount can be measured reliably and it is probable that the income will be received.

Fixed asset gifts in kind are recognised when receivable and are included at fair value. They are not deferred over the life of the asset.

The charity receives grants which 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.

25

THE UNITED REFORMED CHURCH (WEST MIDLANDS) TRUST LIMITED

Notes to the Financial Statements

Year Ended 31 December 2020

1. Accounting Policies (continued)

Investment income is earned through holding assets for investment purposes such as shares and property. It includes dividends, interest and rent. Where it is not practicable to identify investment management costs incurred within a scheme with reasonable accuracy the investment income is reported net of these costs. It is included when the amount can be measured reliably. Interest income is recognised using the effective interest method and dividend and rent income is recognised as the charity’s right to receive payment is established.

Resources Expended

All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Expenditure is recognised where there is a legal or constructive obligation to make payments to third parties, it is probable that the settlement will be required and the amount of the obligation can be measured reliably. It is categorised under the following headings:

Irrecoverable VAT is charged as an expense against the activity for which expenditure arose. Grants payable to local churches, organisations and individuals are within the charitable objectives. Where unconditional grants are offered, this is accrued as soon as the recipient is notified of the grant, as this gives rise to a reasonable expectation that the recipient will receive the grants. Where grants are conditional relating to performance then the grant is only accrued when any unfulfilled conditions are outside of the control of the charity.

Individual Church Property, including Manses

The Trust is sole trustee of the land and buildings of most local URCs but they are not the property of the Synod and are not shown in the financial statements. Sale proceeds from redundant properties or from part thereof which come into Synod funds are treated as unrestricted income from general funds. The income is recognised when the amount can be measured reliably and it is probable that the income will be received.

In certain circumstances a local URC may be permitted to apply for a grant from these funds and where this arises, a time-limited designated fund is created.

Support Costs Allocation

Support costs are those that assist the work of the charity but do not directly represent charitable activities and include premises costs, office costs, governance costs, and salary 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 allocated to cost of raising funds and expenditure on charitable activities on a basis consistent with use of the resources.

26

THE UNITED REFORMED CHURCH (WEST MIDLANDS) TRUST LIMITED

Notes to the Financial Statements

Year Ended 31 December 2020

1. Accounting Policies (continued)

Depreciation

Depreciation is provided on all tangible fixed assets at rates calculated to write off the cost on a straight line basis over their estimated useful economic lives as follows:-

Property - over fifty years Integral features of property - over fifteen years Office equipment - over four years

No amounts under £2,500 are capitalised.

Investments

Investments are recognised initially at fair value which is normally the transaction price excluding transaction costs. Subsequently, they are measured at fair value with changes recognised in ‘net gains/(losses) on investments’ in the SoFA if the shares are publicly traded or their fair value can otherwise be measured reliably.

Programme related investments are those held to further our charitable purposes. Programme related investments include investment in a percentage share of properties and bridging or other loans.

Investments in properties are stated at cost subject to any adjustment arising from impairment which is considered on an annual basis. Gains on disposal of these investments are shown as other income in the SoFA. Investments by way of loans are stated at cost. Interest is charged on the loans at the COIF rate of interest, being the rate of interest the Trust would otherwise have earned.

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.

Financial instruments

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.

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.

27

THE UNITED REFORMED CHURCH (WEST MIDLANDS) TRUST LIMITED

Notes to the Financial Statements

Year Ended 31 December 2020

2. Income and Expenditure

a) Analysis of Total Incoming Resources

2019 2020
Total Total
Funds Funds Unrestricted Designated Restricted
£ £ £ £ £
Income from Investments
478,543 Listed Investments 417,562 210,450 207,112 -
5,243 Interest 5,243 3,436 1,807 -
483,786 422,805 213,886 208,919 -
4,000 Rents 15,495 - 15,495 -
487,786 438,300 213,886 224,414 -
Income from
Charitable Activities:
63,591 Grants – Ministry & Mission 7,225 7,225 - -
3,249 - Training 2,680 2,680 - -
820 - Donations 4,209 14 - 4,195
67,660 14,114 9,919 - 4,195
Other income
Investment charge – The
2,000 Redditch Trust 2,000 2,000 - -
Transfer of funds from Local
- Church Trust 45,000 - 45,000 -
2,000 47,000 2,000 45,000 -
557,446 Total Operating Income 499,414 225,805 269,414 4,195
Income from sale of properties
1,576,605 Of closed Churches 972,106 145,727 826,379 -
Transfer from churches to
Trust Funds
609,579 On disposal of manses 443,114 - 443,114 -
2,743,630 Total Incoming Resources 1,914,634 371,532 1,538,907 4,195

28

THE UNITED REFORMED CHURCH (WEST MIDLANDS) TRUST LIMITED Notes to the Financial Statements Year Ended 31 December 2020

2. Income and Expenditure (Continued)

b) Analysis of Total Operating Resources Expended

----- Start of picture text -----
2019 2020
Total Total
Funds Funds Unrestricted Designated Restricted
£ £ £ £ £
Costs of Generated Funds
-
56,751 Investment Management Fees 57,174 34,950 22,224
- -
1,948 Other property costs 8,744 8,744
- -
27,334 Shared Indirect costs (Note 3) 11,403 11,403
86,033 Total Cost of Generating Funds 77,321 46,353 30,968 -
Charitable Activities
Ministry & Mission:-
98,405 Grants (Note 4) 122,800 47,474 63,426 11,900
- - - -
11,984 Residential synod
-
43,589 Support Costs 39,910 26,900 13,010
- -
20,000 Resource sharing (Note 4) 20,000 20,000
- - -
COVID support to Churches 383,719 383,719
- -
89,055 Shared Indirect Costs (Note 3) 97,958 97,958
263,033 664,387 576,051 76,436 11,900
Training:-
- -
6,968 Ministers (Note 4) 5,416 5,416
550 Students (Note 4) 880 880 - -
- -
2,734 Members (Note 4) 1,013 1,013
839 Local Ministry and Mission review - - - -
348 Church Treasurers and staff 79 79 - -
-
34,269 Training – staff costs 58,007 55,121 2,886
430 Support Costs - - - -
- -
21,944 Shared Indirect Costs (Note 3) 11,313 11,313
-
68,082 76,708 73,822 2,886
Property:-
31,007 Church Repairs (Note 4) 54,304 200 54,104 -
- - - -
(40,000) Write back grants from prior years
- -
112,188 Manse Repairs (Note 4) 129,601 129,601
25,099 Release of Church Sale Proceeds 375,076 - 375,076 -
- -
10,751 Manse Expenses 8,732 8,732
- -
15,660 Church surveys (Note 4) 4,100 4,100
24,240 Staff costs 27,517 13,759 13,758 -
647 Legal and Support Costs 783 783 - -
- -
86,270 Shared Indirect Costs (Note 3) 103,795 103,795
-
265,862 703,908 118,537 585,371
596,977 Total Charitable Expenditure 1,445,003 768,410 664,693 11,900
Total Operating Resources
683,010 Expended 1,522,324 814,763 695,661 11,900
Net (Expenditure) on operating
(125,564) account (1,022,910) (588,958) (426,247) (7,705)
----- End of picture text -----

29

THE UNITED REFORMED CHURCH (WEST MIDLANDS) TRUST LIMITED

Notes to the Financial Statements

Year Ended 31 December 2020

2019 Comparative figures

a) Analysis of Total Incoming Resources

----- Start of picture text -----
2019
Total
Funds Unrestricted Designated Restricted
£ £ £ £
Income from Investments
Listed Investments 478,543 214,425 264,118 -
Interest 5,243 3,436 1,807 -
-
483,786 217,861 265,925
Rents 4,000 - 4,000 -
487,786 217,861 269,925 -
Income from
Charitable Activities:
- -
Grants – Ministry & Mission 63,591 63,591
- -
- Training 3,249 3,249
- Donations 820 6 - 814
67,660 66,846 - 814
Other income
Investment charge – The
Redditch Trust 2,000 2,000 - -
Transfer of funds from Local
Church Trust - - - -
2,000 2,000 - -
Total Operating Income 557,446 286,707 269,925 814
Income from sale of properties
Of closed Churches 1,576,605 782,874 793,731 -
Transfer from churches to
Trust Funds
On disposal of manses 609,579 - 609,579 -
Total Incoming Resources 2,743,630 1,069,581 1,673,235 814
----- End of picture text -----

30

THE UNITED REFORMED CHURCH (WEST MIDLANDS) TRUST LIMITED

Notes to the Financial Statements

Year Ended 31 December 2020

2. Income and Expenditure (Continued)

b) Analysis of Total Operating Resources Expended

----- Start of picture text -----
2019
Total
Funds Unrestricted Designated Restricted
£ £ £ £
Costs of Generated Funds
-
Investment Management Fees 56,751 35,742 21,009
- -
Other property costs 1,948 1,948
Shared Indirect costs (Note 3) 27,334 27,334 - -
Total Cost of Generating Funds 86,033 63,076 22,957 -
Charitable Activities
Ministry & Mission:-
Grants (Note 4) 98,405 54,569 33,961 9,875
- -
Residential synod 11,984 11,984
-
Support Costs 43,589 35,907 7,682
- -
Resource sharing (Note 4) 20,000 20,000
Shared Indirect Costs (Note 3) 89,055 89,055 - -
263,033 211,515 41,643 9,875
Training:-
- -
Ministers (Note 4) 6,968 6,968
Students (Note 4) 550 550 - -
- -
Members (Note 4) 2,734 2,734
Local Ministry and Mission review 839 839 - -
Church Treasurers and staff 348 348 - -
-
Training – staff costs 34,269 31,383 2,886
Support Costs 430 430 - -
Shared Indirect Costs (Note 3) 21,944 21,944 - -
68,082 65,196 2,886 -
Property:-
Church Repairs (Note 4) 31,007 200 30,807 -
- -
Write back grants from prior years (40,000) (40,000)
- -
Manse Repairs (Note 4) 112,188 112,188
Release of Church Sale Proceeds 25,099 - 25,099 -
- -
Manse Expenses 10,751 10,751
- -
Church surveys (Note 4) 15,660 15,660
Staff costs 24,240 12,120 12,120 -
Legal and Support Costs 647 647 - -
Shared Indirect Costs (Note 3) 86,270 86,270 - -
265,862 99,237 166,625 -
Total Charitable Expenditure 596,977 375,948 211,154 9,875
Total Operating Resources
Expended 683,010 439,024 234,111 9,875
Net (Expenditure) on operating
account ( 125,564 ) (152,317) 35,814 (9,061)
31
----- End of picture text -----

THE UNITED REFORMED CHURCH (WEST MIDLANDS) TRUST LIMITED Notes to the Financial Statements Year Ended 31 December 2020

3.
INDIRECT COSTS
2019
Total
Funds
£
Governance Costs
3,707
Synod Expenses
1,324
Synod Council
Staff Costs:-
141,717
Trust Employment Costs
5,376
Honoraria
5,462
Officers Expenses
9,710
Audit
4,096
Legal and Professional
207
Bank Charges
2,874
Committee Support Costs
174,473
Total Governance Costs
Premises Costs:-
1,600
Rent
1,806
Insurance
3,093
Electricity
11,137
Depreciation of Synod Office
9,053
Repairs and Cleaning
26,689
Office Costs:-
2,424
Telephone
5,155
Printing, Stationery and Postage
9,789
Computers
1,715
Advertising
903
Equipment Depreciation
438
Furniture and equipment
3,017
Sundry costs
23,441
224,603
Total Indirect Costs
2019
Total
2020
Total
£
£
174,473
Governance costs
172,840
26,689
Premises costs
22,597
23,441
Office costs
29,032
224,603
Total Indirect Costs
224,469
100%
% of Direct costs
100%		 3.
INDIRECT COSTS
2019
Total
Funds
£
Governance Costs
3,707
Synod Expenses
1,324
Synod Council
Staff Costs:-
141,717
Trust Employment Costs
5,376
Honoraria
5,462
Officers Expenses
9,710
Audit
4,096
Legal and Professional
207
Bank Charges
2,874
Committee Support Costs
174,473
Total Governance Costs
Premises Costs:-
1,600
Rent
1,806
Insurance
3,093
Electricity
11,137
Depreciation of Synod Office
9,053
Repairs and Cleaning
26,689
Office Costs:-
2,424
Telephone
5,155
Printing, Stationery and Postage
9,789
Computers
1,715
Advertising
903
Equipment Depreciation
438
Furniture and equipment
3,017
Sundry costs
23,441
224,603
Total Indirect Costs
2019
Total
2020
Total
£
£
174,473
Governance costs
172,840
26,689
Premises costs
22,597
23,441
Office costs
29,032
224,603
Total Indirect Costs
224,469
100%
% of Direct costs
100%		 2020
Total
Funds
Unrestricted
Designated
Restricted
£
£
£
£
2,235
2,235
-
-
3,082
3,082
-
-
152,782
152,782
-
-
1,380
1,380
-
-
2,113
2,113
-
-
9,814
9,814
-
-
621
621
-
-
124
124
-
-
689
689
-
-
172,840
172,840
-
-
1,600
1,600
-
-
2,859
2,859
-
-
2,472
2,472
-
-
11,137
11,137
-
-
4,529
4,529
-
-
22,597
22,597
-
-
2,636
2,636
-
-
4,876
4,876
-
-
18,681
18,681
-
-
425
425
907
907
-
-
464
464
-
-
1,043
1,043
-
-
29,032
29,032
-
-
224,469
224,469
-
-
Charitable Activities

Raising
Funds
Ministry and
Mission
Training
Property
£
£
£
£
8,780
75,427
8,711
79,922
1,148
9,861
1,139
10,449
1,475
12,670
1,463
13,424
11,403
97,958
11,313
103,795
5.1%
43.7%
5.0%
46.2%		 2020
Total
Funds
Unrestricted
Designated
Restricted
£
£
£
£
2,235
2,235
-
-
3,082
3,082
-
-
152,782
152,782
-
-
1,380
1,380
-
-
2,113
2,113
-
-
9,814
9,814
-
-
621
621
-
-
124
124
-
-
689
689
-
-
172,840
172,840
-
-
1,600
1,600
-
-
2,859
2,859
-
-
2,472
2,472
-
-
11,137
11,137
-
-
4,529
4,529
-
-
22,597
22,597
-
-
2,636
2,636
-
-
4,876
4,876
-
-
18,681
18,681
-
-
425
425
907
907
-
-
464
464
-
-
1,043
1,043
-
-
29,032
29,032
-
-
224,469
224,469
-
-
Charitable Activities

Raising
Funds
Ministry and
Mission
Training
Property
£
£
£
£
8,780
75,427
8,711
79,922
1,148
9,861
1,139
10,449
1,475
12,670
1,463
13,424
11,403
97,958
11,313
103,795
5.1%
43.7%
5.0%
46.2%

224,469		 103,795
100% 46.2%

32

THE UNITED REFORMED CHURCH (WEST MIDLANDS) TRUST LIMITED

Notes to the Financial Statements

Year Ended 31 December 2020

2019 Comparative figures

----- Start of picture text -----
3. INDIRECT COSTS
2019
Total
Funds Unrestricted Designated Restricted
Governance Costs £ £ £ £
- -
Synod Expenses 3,707 3,707
- -
Synod Council 1,324 1,324
- - - -
Assembly Expenses
Staff Costs:-
- -
Trust Employment Costs 141,717 141,717
Honoraria 5,376 5,376 - -
- -
Officers Expenses 5,462 5,462
Audit 9,710 9,710 - -
- -
Legal and Professional 4,096 4,096
Bank Charges 207 207 - -
Committee Support Costs 2,874 2,874 - -
Total Governance Costs 174,473 174,473 - -
Premises Costs:-
Rent 1,600 1,600 - -
Insurance 1,806 1,806 - -
- -
Electricity 3,093 3,093
- -
Depreciation of Synod Office 11,137 11,137
Repairs and Cleaning 9,053 9,053 - -
26,689 26,689 - -
Office Costs:-
- -
Telephone 2,424 2,424
- -
Printing, Stationery and Postage 5,155 5,155
- -
Computers 9,789 9,789
Advertising 1,715 1,715
Equipment Depreciation 903 903 - -
Furniture and equipment 438 438 - -
Sundry costs 3,017 3,017 - -
23,441 23,441 - -
Total Indirect Costs 224,603 224,603 - -
Charitable Activities
2019 Raising Ministry and
Total Funds Mission Training Property
£ £ £ £ £
Governance costs 174,473 21,233 69,179 17,046 67,015
Premises costs 26,689 3,248 10,582 2,608 10,251
Office costs 23,441 2,853 9,294 2,290 9,004
Total Indirect Costs 224,603 27,334 89,055 21,944 86,270
% of Direct costs 100% 12.2% 39.6% 9.8% 38.4%
----- End of picture text -----

33

THE UNITED REFORMED CHURCH (WEST MIDLANDS) TRUST LIMITED

Notes to the Financial Statements

Year Ended 31 December 2020

4. Grants

The following grants have been charged in furtherance of the charitable objects during the year:-

2020
2019
Number
Amount
Number
Institutional Grants
£
Ministry and Mission:
Support to churches
87
383,719
-
Ministers Pension Fund
-
-
1
Inter-Synod Resource Sharing
1
20,000
1
Educational Chaplaincy
4
30,450
4
Ecumenical Situations
11
16,024
11
Overseas Mission
1
11,900
1
Local Church Missions
14
63,426
11
Youth and Childrens Work
1
500
3
119
526,019
32
Property:
Church repairs
12
429,379
7
Manse repairs
15
129,601
20
Church surveys
4
4,100
20
31
563,080
47
Total Institutional Grants
150
1,089,099
79
Individual Grants
Youth
1
500
1
Training:
Ministers
14
5,416
21
Members
9
1,013
19
Students
3
880
2
Total Individual Grants
27
7,809
43
Total Grants Charged
177
1,096,908
122		 Amount
£
-
64,272
20,000
27,225
17,669
9,875
36,511
7,056		 Amount
£
-
64,272
20,000
27,225
17,669
9,875
36,511
7,056
182,608
56,106
112,188
15,660
183,954
366,562
500
6,968
3,598
550
11,616
378,178		 500
6,968
3,598
550
11,616

34

THE UNITED REFORMED CHURCH (WEST MIDLANDS) TRUST LIMITED

Notes to the Financial Statements

Year Ended 31 December 2020

5. Trustees’ Expenses

These include Honoraria of £690 (2019: £2,688) paid to Mrs M. Marshall (Synod Clerk) and £690 (2019: £2,688) to Mr G W Potter (Synod Treasurer).

Reimbursed expenses were paid to 5 (2019: 7) trustees of the Board in aggregate of £879 (2019: £3,331). This figure includes expenses reimbursed to the Treasurer and Clerk for duties including, but not restricted to, Board meetings.

No other remuneration or expenses were paid to the trustees.

6.
Employment Emoluments
Wages and salaries
Termination costs
Employers national insurance
Pension costs
The average number of employees was		 2020
£
186,282
-
9,507
16,800
212,589
10		 2019
£
145,324
13,660
7,826
12,443
179,253
10

No employee received £60,000 per annum or more in the current or prior year. All staff are employed by the company.

The company operates a defined contribution pension scheme and contributions are charged as expenditure as they become payable.

Key management personnel are the trustees as directors. Revd S M Faber (Moderator) receives a stipend from the United Reformed Church for his role with the charity. Some Trustees receive honoraria as detailed in note 5 in respect of their duties of URC West Midlands Synod.

7.
Gains on Investments
Realised (loss)/gain on investments sold
Gains previously recognised in Trust accounts
Net gain in the year on investments sold
Unrealised gains on investments for the year
Net Gains on Investments for the Year		 2020
£
(149,748)
520,546
(370,798)
1,444,511
1,073,713		 2019
£
378,934
(277,449)
101,485
2,689,858
2,791,343

35

THE UNITED REFORMED CHURCH (WEST MIDLANDS) TRUST LIMITED

Notes to the Financial Statements

Year Ended 31 December 2020

8. Movement on Funds

8.
Movement on Funds
a) Fund
Unrestricted Designated Funds
Church Buildings
Manse - General
- Churches
Church Property
Stretton
Mission Fund

Ministry Support Fund
Unrestricted General Funds
General Purposes
Restricted Funds
Choyce legacy
Total Funds
2019 Comparative figures		 Balance
1
January
2020
£
3,692
9,394,721
584,895
1,834,651
440,700
583,515
-
12,842,174
9,289,688
38,495
22,170,357		 Other
Income
Expenditure
Movements
£
£
£
8,343
(58,204)
46,169
650,370
(198,955)
371,651
5,956
-
-
874,238
(375,076)
354,798
-
-
(440,700)
-
(63,426)
-
-
-
500,000
1,538,907
(695,661)
831,918
371,532
(814,763)
568,747
4,195
(11,900)
3,699
1,914,634
(1,522,324)
1,404,364		 Balance
31
December
2020
£
-
10,217,787
590,851
2,688,611
-
520,089
500,000
14,517,338
9,415,204
34,489
23,967,031
Balance Balance
1
a) Fund
January
2019
£
Unrestricted Designated Funds
Church Buildings
-
Retired Ministers
Housing
56,325
Manse - General
7,559,585
- Churches
842,857
Church Property
980,535
Stretton
440,700
Mission Fund
521,067
10,401,069
Unrestricted General
Funds
General Purposes
6,940,919
Restricted Funds
Choyce legacy
40,678
Total Funds
17,382,666		 Investment
Income
Expenditure
Gain/(Loss)
£
£
£
8,159
(4,467)
-
-
(64,272)
-
777,480
(168,584)
961,897
8,381
(2,000)
-
879,215
(25,099)
-
-
-
-
-
(33,961)
-
1,673,235
(298,383)
961,897
1,069,581
(439,024)
1,822,568
814
(9,875)
6,878
2,743,630
(747,282)
2,791,343		 Transfers
Between
Funds
£
-
7,947
264,343
(264,343)
-
-
96,409
104,356
(104,356)
-
-		 31
December
2019
£
3,692
-
9,394,721
584,895
1,834,651
440,700
583,515
12,842,174
9,289,688
38,495
22,170,357

36

THE UNITED REFORMED CHURCH (WEST MIDLANDS) TRUST LIMITED

Notes to the Financial Statements

Year Ended 31 December 2020

8. Movement on Funds (continued)

Transfers between reserves

During the year the following transfers were made between reserves:-

Church Ministry Retired
General Building Support Ministers
purposes Stretton Fund Fund fund
Unrestricted Designated Designated Designated Designated
£ £ £ £ £
Transfer Stretton to
General Funds 440,700 (440,700) - - -
Transfer to Ministry
Support Fund (500,000) - - 500,000 -
Transfer deficit on
Church Buildings
Fund (46,169) - 46,169 - -
(105,469) (440,700) 46,169 500,000 -

b) Purpose of Funds

General Purposes Fund - Unrestricted

Unrestricted funds are needed to cover the support costs and grants for the above objects and the administration costs without which the Synod could not function.

Church Buildings Fund - Designated

To provide funds which could supplement those already available within local churches for the improvement and maintenance of their properties. Support may be in the form of grants or loans.

Retired Ministers Housing Fund - Designated

To provide the capital for long term loans to supplement the purchase of accommodation for retired ministers or their partners, together with Synod’s share of the maintenance costs for those properties.

Manse General - Designated

Mainly accumulated from the proceeds of manse sales when a replacement manse is not required, this fund provides long term loans to local churches in order for them to purchase a manse at a time when they do not have sufficient funds, and to supplement funds already available within local churches for the improvement and maintenance of their properties.

Manse Churches - Designated

To hold the proceeds of manse sales when the church concerned is expecting to purchase a replacement. A separate fund for each church consists of the proceeds of sale together with interest thereon, which provides growth to the capital value. The total is available towards the cost of purchasing a new manse.

37

THE UNITED REFORMED CHURCH (WEST MIDLANDS) TRUST LIMITED

Notes to the Financial Statements

Year Ended 31 December 2020

8. Movement on Funds (continued)

Mission Fund - Designated

Funds to support local churches in their mission activity.

Choyce Legacy - Restricted

To be shared between the Church of North India Children’s Development Unit, the Mission Fund of the Synod and Hatherton Church in accordance with the Will of Colin Choyce.

Church property – Designated and

Stretton - Designated

Funds from the disposal of the properties or land at Stretton Cottages, Stoke Chapel, Hall Green URC, Hollymount URC, Olton URC, Hobs Moat URC, Foleshill URC, Worcester URC and St John's Stone URC pending a decision on future their use. During the year the funds relating to Stretton Cottages were transferred to general funds.

Ministry Support Fund

Funded by a transfer of £500,000 from general funds to meet the costs of staff to supplement deployed ministry.

9.
Tangible Fixed Assets
Property
Office
Equipment
£
£
Cost
At 1 January 2020 and 31 December 2020
379,684
10,968
Depreciation
At 1 January 2020
122,507
10,062
Charge for the year
11,137
906
At 31 December 2020
133,644
10,968
Net Book Value
At 31 December 2020
246,040
-
At 31 December 2019
257,177
906
All assets are used for charitable purposes.
10.
Fixed Asset Investments
Listed Investments
Fixed
Interest
Equities
Cash
£
£
£
Market value at 1 January 2020
1,471,115
17,639,470
90,530
Additions
107,741
3,035,370
108,720
Sales and redemption
(510,253)
(2,684,670)
-
Net investment gains
109,513
1,334,998
-
Market Value at 31 December
2020
1,178,116
19,325,168
199,250
Cost at 31 December 2020		 Total
£
390,652
132,569
12,043
144,612
246,040
258,083
Total
£
19,201,115
3,251,831
(3,194,923)
1,444,511
20,702,534
15,103,940

38

THE UNITED REFORMED CHURCH (WEST MIDLANDS) TRUST LIMITED

Notes to the Financial Statements

Year Ended 31 December 2020

11.
Programme Related Investments
Cost at 1 January 2020
Repayments on investments/Manse purchased
Cost at 31 December 2020
These investments relate to:-
- Manses
- Retired Ministers Housing		 2020
£
2,424,250
-
2,424,250
2020
£
2,418,226
6,024
2,424,250		 2019
£
1,824,306
599,944
2,424,250
2019
£
2,418,226
6,024
2,424,250

No interest is charged on the initial value of the investment, but benefits should arise when the properties are sold and the company recovers a proportion of the proceeds relating to the investment proportion of the total original cost. Retired Ministers Housing shows return of a legal charge when a property was sold.

12.

Debtors
Loans due from United Reformed Church churches and
ministers
Other debtors
Prepayments		 2020
£
45,230
52,083
6,495
103,808		 2019
£
48,942
52,716
7,383
109,041

Loans granted to local churches and ministers are normally repayable between five and ten years and interest is charged at 5% on the outstanding balance. Included in the above loans is an amount of £34,719 (2019: £39,865) due after twelve months.

13. Cash and Short Term Deposits

Bank
Current
Account
Charities
Official
Investment
Fund
£
£
General purposes
27,512
1,322
Designated accounts
-
968
Restricted funds
1,921
-
Balances as at 31 December 2020
29,433
2,290		 Epworth
Deposit
Fund
£
639,106
125,000
-
764,106		 Total
£
667,940
125,968
1,921
795,829

39

THE UNITED REFORMED CHURCH (WEST MIDLANDS) TRUST LIMITED

Notes to the Financial Statements

Year Ended 31 December 2020

14. Creditors

a)
Amounts falling due within one year
Amounts due to United Reformed Church and related
Bodies
Accruals -
Mission grants approved
Building grants approved		 2020
£
177,891
22,951
38,150
33,014
272,006		 2019
£
400,653
28,793
32,850
22,075
484,371

Included within amounts due to United Reformed churches is £Nil (2019: £332,680) arising from property disposals being held pending applications from those churches within an agreed timescale for use of the proceeds.

b) Amounts falling due after more than one year 2020 2019
£ £
Amounts due to United Reformed Churches 21,499 15,524
c) Provisions
Provision relates to Manse repair allowance of £500 per manse which can be carried forward
for up to two years. The commitment is non contractual. The balance is the total provision
less sum of claims made.
2020 2019
£ £
Provision for charges 11,925 -

15. Disposition of Funds as at 31 December 2020

Fund
Designated Funds
Church building
Retired Ministers Housing
Manse- General
- Churches
Stretton Cottages
Church Property
Mission Fund
Ministry Support Fund
Total Designated Funds
Unrestricted Funds
General Purposes
Restricted Funds
Choyce Legacy
Total Funds		 Fixed
Assets
Investments
Programme
Related
Investments
Debtors/
Creditors
Cash
and
Deposits
£
£
£
£
£
-
-
-
-
-
-
-
6,024
(6,024)
-
-
7,798,594
2,418,226
-
968
590,850
-
-
-
-
-
-
-
-
-
2,563,611
-
-
125,000
-
-
-
190,089
330,000
-
-
-
170,000
330,000
-
10,953,055
2,424,250
354,065
785,968
246,040
9,707,911
-
(546,687)
7,940
-
41,568
-
(9,000)
1,921
246,040
20,702,534
2,424,250
(201,622)
795,829		 Total
£
-
-
10,217,788
590,850
-
2,688,611
520,089
500,000
14,517,338
9,415,204
34,489
23,967,031

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THE UNITED REFORMED CHURCH (WEST MIDLANDS) TRUST LIMITED

Notes to the Financial Statements

Year Ended 31 December 2020

15. Disposition of Funds as at 31 December 2020 (continued)

2019 Comparative figures

----- Start of picture text -----
Programme Cash
Fixed Related Debtors/ and
Assets Investments Investments Creditors Deposits Total
Fund £ £ £ £ £ £
Designated Funds
- - - -
Church building 3,692 3,692
- - - -
Retired Ministers Housing 6,022 (6,022)
Manse- General - 6,975,039 2,418,228 - 1,455 9,394,722
- Churches - 584,894 - - - 584,894
- - - -
Stretton Cottages 440,700 440,700
- - - -
Church Property 1,834,651 1,834,651
Mission Fund - - - 583,515 - 583,515
-
Total Designated Funds 9,394,584 2,424,250 1,021,885 1,455 12,842,174
Unrestricted Funds
-
General Purposes 258,083 9,768,661 (1,412,739) 675,683 9,289,688
Restricted Funds
Choyce Legacy - 37,870 - - 625 38,495
Total Funds 258,083 19,201,115 2,424,250 (390,854) 677,763 22,170,357
----- End of picture text -----

16. Commitments

Property

The office is situated on land that is registered in the name of the United Reformed Church (West Midlands) Trust Limited and held on statutory trusts in favour of Digbeth-in-the-Field United Reformed Church. Under an informal agreement, the Trust company pays a nominal sum to the local church for the use of the land.

Guarantees

The United Reformed Church (West Midlands) Trust Limited has acted as guarantor on behalf of a number of churches who have sought external grant funding. The various terms and conditions of these grants may require repayment in the event of church closure within a specified period. At the year end the trustees had no reason to believe that the likelihood of repayment was anything other than remote and therefore no additional disclosure or provision has been made.

17. Contingent Assets

At the year end, the properties of one church and one manse, held on Statutory Trusts in accordance with the United Reformed Church Acts of 1972, 1981 and 2000 by the company, were held. The proceeds will revert to Synod on sale in accordance with the Statutory Trusts on which the properties are held. Professional advice is being sought prior to disposal of two churches and one manse.

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THE UNITED REFORMED CHURCH (WEST MIDLANDS) TRUST LIMITED

Notes to the Financial Statements

Year Ended 31 December 2020

18. Funds Held as Trustee

Local Churches

The United Reformed Church (West Midlands) Trust Limited (“the Trust”) acts as Trustee of local church assets. A local church has no legal identity of its own and, therefore, cannot hold property in its own name. The title to its assets must be held on trust by a group of trustees and this can be achieved either by private trustees (individuals) or by a Trust Company. All of the local churches’ properties in the West Midlands Synod (save 2) are held by the Trust.

The deeds to church property are vested in the name of the Trust. A Declaration of Trust records which local churches hold properties and, if jointly owned, the shares held by each. The Trust has a share in a few properties and that share is recorded in the Declaration of Trust because the deeds are in the name of the Trust, any legal documents are signed by the Trust, but they are entering into those documents on behalf of the local church.

Similarly, most of the investments and cash deposits owned by local churches in the Synod are held by the Trust as trustee.

In relation to local church buildings, the Trust is the charity trustee. In relation to local church cash, investments and other assets, the Trust is the custodian trustee and the local Elders are the managing trustees. The role of the Trust is to carry out the wishes of the local church expressed in Church Meeting resolutions. Providing the trustees of the Trust have no objections to what they are being asked to do and the appropriate approvals have been obtained, they will act according to the instructions which come from the Elders/local Church.

Inter-Synod Resources Sharing

In addition to the funds held for churches the Trust also holds funds on behalf of the URC Inter Synod Resource Sharing process which redistribute funds from wealthier Synods to those Synods in need of support. The funds totalling £386,963 at 31 December 2020 are held in separately identified deposit funds and investments. The funds are controlled by Resource Sharing Task Group drawn from amongst the Synod Treasurers. As a body the Trustees of the Trust play no part in directing the management of these funds.

42

THE UNITED REFORMED CHURCH (WEST MIDLANDS) TRUST LIMITED

Notes to the Financial Statements

Year Ended 31 December 2020

19. Related Party Transaction

Owing to the nature of the charity’s operations and the composition of the Board of trustees being drawn from the local United Reformed Churches, grant awards may take place with churches from within the Trust’s oversight. All discussions about grant awards or other transactions are undertaken without the presence of the conflicted trustee. Following a change in the Manse Policy, all major repairs to manses are paid for by the Trust, for transparency all such repairs are recorded as grants to churches and noted below where they relate to a church where a trustee or officer would have otherwise been considered to have a conflict.

The following transactions arose in the year:-

Beneficiary Purpose Committee Value Related Party Relationship
£
Rodborough URC Equipment Grant Mission Fund 3,402 Rev E Massey Panel Member
Wylde Green URC Equipment Grant Mission Fund 1,000 Rev C Dowd Panel Member
Elmwood URC Equipment Grant Mission Fund 500 Mrs C Binns Panel Member
CIGB Ecumenical Grant Missional
Disciplineship 5,000 Rev S Faber Trustee
Hodge Hill Church Repair Finance 6,800 Rev D Walton Trustee
Knowle URC Church Repair Finance 16,250 Mr T Dicker Trustee
Cheltenham URC Manse Repair Finance 21,458 Mr D Black Trustee
North Coventry Manse Repair Finance 495 Mr S Powell Trustee
Pastorate
Sutton Coldfield Manse Repair Finance 12,191 Rev D Walton Trustee
URC

20. Financial Instruments

Financial assets measured at fair value through net income comprise fixed asset investments with a value of £20,503,284 (2019: £19,110,585).

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