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2023-12-31-accounts

Company Number: 01337047 Charity Number: 507027

THE UNITED REFORMED CHURCH (WEST MIDLANDS) TRUST LIMITED

REPORT AND FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2023

MHA Chartered Accountants and Registered Auditors Moorgate House 201 Silbury Boulevard Milton Keynes MK9 1LZ

THE UNITED REFORMED CHURCH (WEST MIDLANDS) TRUST LIMITED

Contents

Page
Annual Report 1 to 15
Independent Auditor’s Report 16 to 18
Statement of Financial Activities 19
Balance Sheet 20
Statement of Cash Flow 21
Notes to the Financial Statements 22 to 44

THE UNITED REFORMED CHURCH (WEST MIDLANDS) TRUST LIMITED

Annual Report

Year Ended 31 December 2023

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 Revd E. Hutchinson Mrs M.F. Marshall Mr S.M. Powell (Treasurer) Mr K. Thomas Revd D.M. Walton (retired March 2024)

Bankers

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

Legal Advisors

Slater Heelis Lloyds Bank Buildings, 16 School Road Sale, Cheshire M33 7XP

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

Auditor

MHA Moorgate House 201 Silbury Boulevard Milton Keynes MK9 1LZ

Investment Manager

Evelyn Partners 9 Colmore Row Birmingham B3 2BJ

Synod Officers

Moderator – Revd S.M. Faber Synod Clerk – Mrs R Wakeman Synod Treasurer – Mr S.M. Powell Legal and Trust Officer – Mr P Mountain (from November 2023) Finance Officer – Mr M.N. Davies (resigned November 2023) Mrs K Wise (from March 2024)

Property Officer – Mr M. McDade Training and Development Officer – Revd S.P. Scott (retired October 2023) Evangelist – Revd N. Stanyon (finished October 2023)

Children’s and Youth Development Officer – Mr R. Knott (until March 2023) Safeguarding Officer – Mrs D. Gordon Communications Officer – Mrs E Wright (from June 2024)

1

THE UNITED REFORMED CHURCH (WEST MIDLANDS) TRUST LIMITED

Annual Report

Year Ended 31 December 2023

The United Reformed Church (West Midlands) Trust Limited (“The Trust”) is the corporate body that holds the assets and liabilities of the West Midlands Synod of the United Reformed Church (“Synod”). The Trust was incorporated as a limited company and registered charity on 2 November 1977 and its Memorandum and Articles of Association were revised in 2008 and 2021. The Trust’s charitable objects 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.

1. The Synod: Structure, Governance and Management

1.1 Overview

The Synod is the collective body of the United Reformed Church in the West Midlands region and is constituted in accordance with the Basis of Union and the United Reformed Church Acts of 1972, 1981 and 2000 (www.urc.org.uk). Synod has oversight of the URC in the West Midlands, comprising the counties of Staffordshire, Shropshire, Herefordshire, Worcestershire, Warwickshire and Gloucestershire, and the metropolitan authorities of Birmingham, Solihull, Coventry, Sandwell, Walsall, Dudley, and Wolverhampton. It meets twice a year and its membership, as detailed in the Structure of the United Reformed Church, Section B at urc.org.uk, includes serving ministers, representatives of each local church, and ecumenical representatives, together with youth representatives and some coopted members. The Synod fulfils a wide range of consultative, legislative and executive functions, and is the ultimate decision-making authority in matters of a theological, pastoral or (in certain cases) an administrative nature.

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 in Ministerial Remuneration through which ministry is supported and in the resource sharing arrangements between Synods.

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THE UNITED REFORMED CHURCH (WEST MIDLANDS) TRUST LIMITED

Annual Report (Continued)

Year Ended 31 December 2023

1.2 The Synod’s relationship with the Trust and its committees

The Synod’s policy decisions are subject to Trust endorsement; and decisions that have financial implications for the Trust are normally subject to consultation with Synod Trustees prior to implementation.

Because the Synod meets only twice each year, it delegates many of its functions to its committees, which in turn work alongside the Trust: the Synod Executive (formerly known as Synod Mission Council); the Resources & Compliance Committee, the Ministry Development Committee and the Missional Discipleship Development Committee. The roles of these bodies are explained in more detail below. The relationship between the Synod Executive, its Committees and Trust may be summarised as follows:

Synod: One of the Councils in the Structure of the United Reformed Church, and the ultimate decision-making body of the United Reformed Church in the West Midlands region.

Synod Executive: has delegated authority to make decisions and recommendations in between Synod Meetings and acts as the line of accountability for Synod Officers and Committees. Synod Executive comprises certain Synod Officers, Convenors of Synod Committees, and representatives from the seven designated Areas within Synod. The work of Synod Executive is organised through committees with responsibility for specific aspects within the life of the Church.

Resources & Compliance Committee : (RCC) is concerned with financial and property resources, maintaining legal compliance and good practice and has delegated authority to make decisions and recommendations on matters principally around finance, property and legal issues. The Synod Resources and Compliance Committee (RCC) comprises Synod Officers, their line managers, and other persons with appropriate skills identified and appointed by Synod Executive. The RCC’s responsibilities may be summarised as follows:

The remit of the Resources and Compliance Committee includes delegated authority for agreeing grants, particularly for property, within criteria and budgets which are set by the Trust.

A Reference Committee has authority to approve urgent transactions between meetings, provided that they meet normal qualifications and are reported to the next meeting. The Reference Committee for the Resources and Compliance Committee consists of the Moderator, Synod Clerk, Synod Treasurer and Chair. The Reference Committee for the Trust consists of the Moderator, Synod Treasurer, Chair and at least one other trustee.

3

THE UNITED REFORMED CHURCH (WEST MIDLANDS) TRUST LIMITED

Annual Report (Continued)

Year Ended 31 December 2023

1.2 The Synod’s relationship with the Trust and its committees (continued)

Ministry Development Committee: (MDC) is responsible for developing people’s ministries and delegated authority, particularly in dealing with ministerial call and service, vacancy and development. The Committee comprises a representative from each Area, plus the Moderator and key Synod Officers.

1.3 The Trust

(a) Powers, duties, and responsibilities

Acting through its board of trustees, the Trust is responsible for the day-to-day management of the Synod and for the implementation of policy as set by the Synod. The Trust has ultimate responsibility for all Synod finance-related matters (except for Ministry and Mission Fund matters – see below).

The Trust fulfils its charitable objects by working through the Synod to provide financial, pastoral, educational and technical support to local URC congregations, and to their Ministers, Elders and lay people in their life and mission. The Trust supports the Synod in its mission purpose , defined at October Synod 2022 as:

“ To equip, encourage and support United Reformed Church congregations in the West Midlands Synod, in our collective journey to be faithful in worship, witness and service, as our way of responding to the saving love of God in Christ Jesus, in the power of the Holy spirit, and inviting others to share in the life of faith and discipleship. ”

The Trust, through the work of the Synod, supports 101 churches in the region with 3,187 United Reformed Church members and their own charitable missions to advance the Christian religion in their own communities.

The Trust also acts as Trustee to the majority of the United Reformed Churches in the West Midlands by 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. The Trust also 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 £1.371m and the local churches have objects similar to the Synod.

United Reformed Churches are open to all people, of all ages and walks of life, including people of no faith. Through enabling worship and faith-based, educational, and community-focused activities, the Trust aims to propagate the Christian faith and Christian values in a contemporary and compassionate manner, for the benefit of all.

Local churches within the Synod’s region are separate independent charities and the Trust has no controlling interest or executive control over them. Nor are local churches deemed to be connected charities within the understanding of the Charities SORP.

4

THE UNITED REFORMED CHURCH (WEST MIDLANDS) TRUST LIMITED

Annual Report (Continued)

Year Ended 31 December 2023

1.3 The Trust (continued)

(b) The Trustees

The Synod appoints the board of trustees and 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.

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

Mr D.S. Black, Mr T. Dicker, Revd S.M. Faber, Revd E. Hutchinson, Mr S.M. Powell (Treasurer), Mrs M.F. Marshall, Mr K. Thomas and Revd D.M. Walton (retired March 2024).

The Trustees are the Trust’s key management personnel and directors of the company for the purpose of company law . Together they form the Trust’s governing board and are responsible for overseeing the management and for decisions relating to the assets held at Synod and local church level. All director–trustees give their time voluntarily and receive no benefits from the Trust other than reimbursement of their expenses [as shown in note 5 to the financial statements]. The only exception here is the Moderator whose stipend is settled and paid by the central URC.

Indemnity insurance of up to £5m is in place to cover the liability of the Trustees in relation to negligence, default, breach of duty or breach of trust.

With regard to potential conflicts of interest, clear procedures are in place to ensure that no trustee derives any private benefit from the Trust’s financial operations and that no actual or perceived bias arises when the Trust considers any application for funding support from a Church which counts a trustee among its members.

(c) The Trust’s professional and technical staff

There were eight paid staff in 2023 who enabled the Synod’s day-to-day operations and who were recruited on the basis of their professional experience and skills. They are:

5

THE UNITED REFORMED CHURCH (WEST MIDLANDS) TRUST LIMITED

Annual Report (Continued)

Year Ended 31 December 2023

1.3 The Trust (continued)

(c) The Trust’s professional and technical staff (continued)

Levels of staff pay are decided by reference to market rates for those working for professional organisations with the relevant qualifications and experience and regard is given 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 other relevant factors.

The Finance Officer is responsible for the Synod’s finances and assists local churches with their grant applications and other areas of church finance. The Finance Officer also plays an important role in developing policy for control of Synod finances and in supporting churches financially. The Finance Officer deals with the calculation and allocation of contributions to the Ministry and Mission Fund which funds ministers’ stipends and the work of the wider church; and works with the Synod’s Investment Sub Committee and its independent Investment Managers to ensure the efficient management of cash and the generation of income to run Synod. The Finance Officer is also active in management of the funds for Inter Synod Resource Sharing.

The Property Officer provides technical support to local churches in the maintenance of their church buildings and their repair and/or redevelopment, including advising on grant support which may be available for Synod. This includes working closely with local church leadership to resolve practical and technical issues as they arise. Where churches are Listed buildings, Synod has a statutory role under Ecclesiastical Exemption, which the Property Officer discharges with the assistance of other officers of the wider United Reformed Church.

The Legal and Trust Officer is Secretary to the Board and the Synod Resources and Compliance Committee. The Trust Officer is a solicitor and provides support to local Churches and other officers in the areas of governance, charity law and transactional matters, working with external lawyers with specialist knowledge of the URC’s legal structure and processes, and other independent advisers as appropriate.

The Safeguarding Officer works with local churches to ensure that children and adults at risk are protected as the law require and as a matter of best practice. The Safeguarding Officer is responsible for co-ordinating safeguarding training around the Synod and ensuring that current safeguarding policies and procedures are implemented.

The Synod Clerk has oversight of Synod and its Committees; supports the Moderator; represents the Synod nationally and locally; and provides guidance on governance and procedures.

The Office Manager is responsible for the day-to-day operation and management of the Trust’s premises and business affairs, including HR, and provides the Moderator with all required back-office support. The Administrative Assistant supports the office and Synod Officers’ work..

6

THE UNITED REFORMED CHURCH (WEST MIDLANDS) TRUST LIMITED

Annual Report (Continued)

Year Ended 31 December 2023

1.3 The Trust (continued)

(c) The Trust’s professional and technical staff (continued)

The Training and Development Officer is responsible for guiding and mentoring Elders of local churches in the fulfilment of their duties and for providing wider training opportunities in pastoral matters to anyone connected with the Church.

(d) Risk Assessments

The Trust has undertaken a thorough Risk Assessment, identifying, and evaluating the risks to which the Synod and Trust are exposed, and policies are in place and actions are taken to minimise any potential exposure. The Trust’s reserves and investment policies are designed in part to mitigate the risk of insufficient resources being available to provide the necessary level of support to Churches within the Synod area.

1.4 Financial support and grant making policies

The Trust makes available a range of grants and loans (i) to local churches to assist them in their mission and in the improvement and maintenance of their properties; and (ii) to local ministers to support ministerial training, development, and sabbaticals. In all cases, grant awards are made after consideration of the mission statement and financial situation of the applicant. The funding programmes comprise:

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THE UNITED REFORMED CHURCH (WEST MIDLANDS) TRUST LIMITED

Annual Report (Continued)

Year Ended 31 December 2023

1.4 Financial support and grant making policies (continued)

The Trust is active in the Inter Synod Resource Sharing system, which supports those Synods with least resources.

2 Pastoral and Educational support

The Moderator is Revd. Steve Faber, an ordained minister of Word and Sacraments of the United Reformed Church. His role is to provide spiritual and pastoral oversight, care, and leadership within the Synod. The Moderator is a member of all Synod Committees and works with Synod Officers to provide spiritual, strategic and pastoral leadership to churches within the Synod area; and he provides care, encouragement and engagement with ministers and churches through meetings, conferences, visits and training events. Also, as a member of the Ministry Development Committee (see 1.2 above) the Moderator is instrumental in encouraging conversations about pastorates and calling of ministers.

8

THE UNITED REFORMED CHURCH (WEST MIDLANDS) TRUST LIMITED

Annual Report (Continued)

Year Ended 31 December 2023

2 Pastoral and Educational support (continued)

The Synod Training and Development Officer (TDO) is a Minister of Word and Sacraments, inducted to their Synod role following a call issued and accepted recognising their appropriate skills and experience.

The role of the TDO 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 Revd Stuart Scott retired from the role of TDO at the end of October 2023. Following a review, October Synod agreed to a new role going forward, combining that of TDO with Synod Pastoral Consultant, and a suitable candidate is being sought.

The Synod Evangelist, also a Minster of Word and Sacraments , worked with local congregations, encouraging and responding to invitations from local churches to be involved in specific outreach projects; providing training in evangelism; and exploring with elders, churches, and individuals how they can respond to opportunities to share their faith. This was a Special Category Minister Post for two 5-year terms, which ended in October 2023.

Following review, October Synod 2023 agreed to the appointment of a temporary, half-term, ‘LYCiG’ Consultant. This was to particularly take forward the Evangelist’s work on the Leading Your Church into Growth initiative and was taken up by Revd Ashley Evans in February 2024.

Going forward, October Synod agreed to develop the Evangelist’s work with the introduction of a full-time, salaried, Mission Development Officer. This post was advertised and is due to be taken up as a job share in September 2024.

The Children and Youth Development Officer supports and enables the work in local churches with Youth and Children. This is a salaried post, recruitment to which is based on skills and experience. The Equality Act 2010: Part 1, Schedule 9 applies to this post, which requires a Christian who is willing to share their own personal faith and encourage others in that faith. Following Richard Knott’s move from the West Midlands to the East Midlands in April 2023, a replacement is sought.

9

THE UNITED REFORMED CHURCH (WEST MIDLANDS) TRUST LIMITED

Annual Report (Continued)

Year Ended 31 December 2023

3 Achievements and performance

A strategic review of the Synod’s activities by external consultants, to consider ways in which we can structure our work to fulfil the statement of purpose as defined at October Synod 2022, commenced in 2023. Amongst other aspects, the review group were asked to consider our staffing structure and financial support for local churches. They reported on the first phase of the review in Autumn 2023, particularly encouraging Synod to recruit staff to replace a number who had left due to retirement, end of fixed terms, or resignation.

A number of Synod staff of longstanding completed their service to the Synod in 2023, with

their achievements much appreciated.

We were pleased to appoint Lindsay Peniston, Office Manager & Moderator’s PA, in March 2023; Emma Price, Office Administrator, in September 2023; Paul Mountain, Legal & Trust Officer, in November 2023; and Karen Wise, Finance Officer in March 2024. All have already added value to Synod’s operations. In line with recommendations from the first phase of the Synod Review, Emma Wright started as Communications Officer in June 2024.

It has been acknowledged that the staff turnover and some extended vacancies have hampered operations in 2023, and the efforts of existing and new staff to maintain the services to our churches have been much appreciated.

We look forward to more Synod Officers being appointed in 2024 and await the outcome of the second phase of the review of operations.

The Synod Mission Fund continues to support local churches in mission activity and the achievement of mission pledges. Amending the criteria has made it more accessible to smaller churches. During the year grants totalling £34,980 were awarded to support: -

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 2023 £10,185 was sent to this project. This fund is now fully distributed.

10

THE UNITED REFORMED CHURCH (WEST MIDLANDS) TRUST LIMITED

Annual Report (Continued)

Year Ended 31 December 2023

4. Financial review

Financial Statements

The financial statements, including the notes, have been prepared in compliance with the Statement of Recommended Practice “SORP2019 (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 summary 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 19, with a more detailed analysis of income and expenditure on pages 27 to 24.

Investment income remained on a par with 2022. In addition, a surplus of £1.3m was realised from sale of a four Manses, and £852k from three church buildings. This enabled the purchase of two New Manses as well settling the deferred Ministers’ pensions from 2022. In 2024 there was the completion and sale for Welsh Frankton URC, Weirbrook URC, 137 Birmingham Road Manse and 25 Woodcote Road Manse.

Operating costs increased by £100k, partly boosted by the award of energy efficiency grants. Once again, we released funds 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 were £94,372. However, having completed the majority of the manse improvement programme in 2022, spending on manses decreased to £2k with a further £28,335 on manse repairs and insurance.

Training expenditure was lower than budget due to the CYDO position not being filled and the retirement of Rev S Scott in October. The Trust still remains fully committed to supporting the training costs of those at all levels within the Synod.

Other incoming resources included surpluses on disposal of three church buildings: Hatherton URC, Potters Green and Wolstanton, the whole of which are designated to the Major Buildings Development Fund, Mission Fund, and a small portion towards the M&M fund.

There were sales of four Manses in Hereford, Dudley, Birmingham and Stretton, a portion of these proceeds were paid out to the local churches as well as being utilised to fund the purchase of two new manses, one in Sutton Coldfield and one in Walsall. 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.

11

THE UNITED REFORMED CHURCH (WEST MIDLANDS) TRUST LIMITED

Annual Report (Continued)

Year Ended 31 December 2023

4. Financial review (continued)

During 2021, £4m was transferred to a fund to contribute to the deficit on the URC Ministers’ Pension Fund, to be settled over 9 years commencing in 2022. This sum was transferred from the Synod Manse Fund to a Ministers’ Pension Support Fund. £1.454m of this sum for the first three years was recognised in the accounts in 2021.

An increase in the stock market resulted in unrealised gains of £1.823m.

The total increase in funds was £3.531m.

Balance Sheet

Reference has been made above to the increase in the funds balance. An analysis of the funds movements is shown on page 35.

Programme Related Investments stood at £3.6m relating to seventeen 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.

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 hold sufficient investments and deposits that the income generated, and capital appreciation will cover one full year’s total net expenditure. Specific policy decisions have been made not draw down reserves in addition to this.

Investment policy

The agreed investment objectives are: -

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THE UNITED REFORMED CHURCH (WEST MIDLANDS) TRUST LIMITED

Annual Report (Continued)

Year Ended 31 December 2023

4. Financial review (continued)

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 as well as those companies whose turnover is derived from the extraction and / or supply of fossil fuels.

An investment portfolio is managed by Evelyn Partners and investment advice is sought from them as required. Individual purchases and sales are made by the investment manager in accordance with parameters provided to them, subject to consultation as necessary with the investment subcommittee which includes the treasurer, finance officer and 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.

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 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 £1.6m and reflects a known requirement for capital spending commitments including the extensive Repairs to Solihull URC and the payments to support the URC Minister Pension Fund.

Future plans

The strategic review of the Synod’s activities by external consultants, to consider ways in which we can structure our work to fulfil our statement of mission purpose, is being continued in 2024 with a second phase of work. The review group has been asked to look in more detail at the current effectiveness of committee operations measured against the functions and identify any areas of concern or operational weakness. A report is anticipated by September 2024 to enable the findings and proposed responses to go to October Synod.

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 continue to actively manage plans for that reduction and continue to look at ways in which to increase the range of lay leadership and ministries to compensate for the reduction in ordained Ministers. The Ministry Support Fund described above is one way in which we intend to realise that support.

Further recruitment is in hand in 2024 and we look forward to the work of the Mission Development Officer commencing as a job share in September, and we hope that a new Children & Youth Development Officer and Training & Development Officer / Pastoral Consultant will soon follow this.

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THE UNITED REFORMED CHURCH (WEST MIDLANDS) TRUST LIMITED

Annual Report (Continued)

Year Ended 31 December 2023

4. Financial review (continued)

In addition, in 2024 the following are planned within our strategy: -

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THE UNITED REFORMED CHURCH (WEST MIDLANDS) TRUST LIMITED

Annual Report (Continued)

Year Ended 31 December 2023

4. Financial review (continued)

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:-

Auditor

A resolution to reappoint MHA as independent auditor will be proposed at the next Annual General Meeting.

On behalf of the Board

Date:

15

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 2023 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 Yrustees’ 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.

16

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.

17

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 regulations. 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, collosion, 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.

Use of our 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.

Elizabeth Newell BA (Hons), FCA (Senior Statutory Auditor)

For and on behalf of MHA (Statutory Auditor)

Milton Keynes, United Kingdom Date:

MHA is a trading name of MacIntyre Hudson LLP, a limited liability partnership in England and Wales (registered number OC312313).

18

THE UNITED REFORMED CHURCH (WEST MIDLANDS) TRUST LIMITED

Statement of Financial Activities (Incorporating Income and Expenditure Account) Year Ended 31 December 2023

2022
Total
Funds
Notes
£
Income from:
Charitable activities:
171,084
Grants received
2a
8,660
Other income
2a
Investments
550,206
Investment income
2a
10,782
Rents
2a
Incoming resources from
charitable activities:
740,732
Total Operating Income
2a
2,212,836
Income on sale of properties
2a
2,953,568
Total Income
Expenditure on:
87,095
Generating funds
2b
932,377
Charitable expenditure
2b
1,019,472
Total Operating Expenditure
2b
3,420,481
Net losses/(gains) on
investments
7
72,710
Interest
2b
4,512,663
Total Expenditure
(278,740)
Net Expenditure on Operating
account
2b
(1,559,095)
Net Income for the Year
Other recognised Gains &
Losses
-
Transfer between reserves
8a
(1,559,095)
Net Movement in Funds for
the year
25,422,516
Funds Balances brought
forward
23,863,421
Fund Balances
carried forward
8a		 2023
Total
Unrestricted
Funds
General
Designated
Restricted
£
£
£
£
18,213
17,575
-
638
45,913
2,000
43,913
-
623,312
431,135
192,177
-
9,450
-
9,450
-
696,888
450,710
245,540
638
2,178,013
848,432
1,329,581
-
2,874,901
1,299,142
1,575,121
638
87,088
(5,292)
92,380
-
1,028,726
607,117
411,409
10,200
1,115,814
601,825
503,789
10,200
(1,822,533)
(1,490,517)
(331,439)
(577)
49,861
-
49,861
-
(656,858)
(888,692)
222,211
9,623
(418,926)
(151,115)
(258,249)
(9,562)
3,531,759
2,187,834
1,352,910
(8,985)
-
(823,212)
823,212
-
3,531,759
1,364,622
2,176,122
(8,985)
23,863,421
8,258,399
15,596,037
8,985
27,395,180
9,623,021
17,772,159
-

The Statement of Financial Activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.

19

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

As at 31 December 2023

2022
Notes
£
Fixed Assets
223,766
Tangible assets
9
21,159,001
Investments
10
2,694,889
Programme related investments
11
24,077,656
Current Assets
127,756
Debtors
12
1,583,074
Cash and short-term deposits
13
1,710,830
(1,234,583)
Creditors: Amounts falling due
within one year
14a
476,247
Net Current (Liabilities)/Assets
24,553,903
Total Assets less Current Liabilities
(663,946)
Creditors: Amounts falling due
after more than one year
14b
(26,536)
Provision for charges
14c
23,863,421
Net Assets
Funds:
Restricted Funds
4,841
Other
4,144
Revaluation reserve
8,985
Unrestricted funds
General
4,902,049
- Other
3,356,350
- Revaluation reserve
8,258,399
Designated
14,759,451
- Other
836,586
- Revaluation reserve
15,596,037
23,863,421
Total Funds
15		 4,776,155
4,846,866
18,123,161
(351,002)		 2023
£
213,034
22,960,640
3,612,170		 2023
£
213,034
22,960,640
3,612,170

26,785,844
185,908
1,602,162
1,788,070
(952,160)
835,910
27,621,754		 185,908
1,602,162
1,788,070
(952,160)
835,910
(200,038)
(26,536)
27,395,180
9,623,021
17,772,159
27,395,180

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

and signed on its behalf by

Mr S Faber - Director and Moderator Mr S M Powell - Director and Treasurer

20

THE UNITED REFORMED CHURCH (WEST MIDLANDS) TRUST LIMITED

Statement of Cash Flows

Year ended 31 December 2023

Notes
Cash flow from operating activities:
Net cash provided/used in operating activities
A
(
Cash flows from investing activities:
Interest paid
Investment income
Proceeds from programme related investments
Proceeds from sale of investments
Purchase of investments
(
Purchase of programme related investments
Net (decrease)/increase cash provided by investing
activities
Net increase in cash and cash equivalents in the
reporting period
Cash and cash equivalents at the beginning of the
reporting period
Cash and cash equivalents at the end of the reporting
period
B
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)
Adjustments for:
(Gains) and losses on investments
(
Depreciation
Surplus on sale of programme related investments
(
Investment income and rents
(Increase) in debtors
(Decrease)/increase in creditors
Interest paid
Net cash used in operating activities
(
B)
Analysis of cash and cash equivalents
Cash at bank and in hand
Deposit accounts
Cash held by investment manager		 2023
2022
£
£
1,669,636)
(1,282,823)
(49,861)
(72,710)
632,762
560,988
2,178,013
2,281,181
3,635,387
2,245,969
3,638,901)
(2,225,632)
(917,281)
(377,885)
1,840,119
2,411,911
170,483
1,129,088
1,722,697
643,609
1,943,180
1,772,697
3,531,759
(1,559,095)
1,646,730)
2,991,265
10,732
11,137
2,178,013)
(2,212,836)
(632,762)
(560,988)
(58,152)
(42,141)
(746,331)
17,125
49,861
72,710
1,669,636)
(1,282,823)
19,542
48,735
1,582,620
1,534,339
341,018
189,623
1,943,180
1,772,697

21

THE UNITED REFORMED CHURCH (WEST MIDLANDS) TRUST LIMITED

Notes to the Financial Statements

Year Ended 31 December 2023

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.

Critical accounting estimates and areas of judgement

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.

Valuation of listed investments – valuations are subject to variations arising from external factors which can impact actual future results.

Discount rate – an estimation is made as to the applicable rate at which to reflect the time value of future payments.

22

THE UNITED REFORMED CHURCH (WEST MIDLANDS) TRUST LIMITED

Notes to the Financial Statements

Year Ended 31 December 2023

1. Accounting Policies (continued)

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 the current economic climate. 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.

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 Ministry Support Fund Major Buildings Development Fund Energy Efficiency Fund Ministers Pension Support Fund M & M 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.

23

THE UNITED REFORMED CHURCH (WEST MIDLANDS) TRUST LIMITED

Notes to the Financial Statements

Year Ended 31 December 2023

1. Accounting Policies (continued)

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.

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.

24

THE UNITED REFORMED CHURCH (WEST MIDLANDS) TRUST LIMITED

Notes to the Financial Statements

Year Ended 31 December 2023

1. Accounting Policies (continued)

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.

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 rate to reflect the investment income the Trust would otherwise have earned.

25

THE UNITED REFORMED CHURCH (WEST MIDLANDS) TRUST LIMITED

Notes to the Financial Statements

Year Ended 31 December 2023

1. Accounting Policies (continued)

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.

Liabilities are recognised at the amount that the charity anticipates it will pay to settle the debt. Where the effect of the time value of money is material, the liability is based on the present value of those amounts, discounted at the discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised within interest payable and similar charges.

26

THE UNITED REFORMED CHURCH (WEST MIDLANDS) TRUST LIMITED

Notes to the Financial Statements

Year Ended 31 December 2023

2. Income and Expenditure

a) Analysis of Total Incoming Resources

2022
Total
Funds
£
Income from Investments
540,103
Listed Investments
10,103
Interest
550,206
10,782
Rents
560,988
Income from
Charitable Activities:
48,379
Grants – Ministry & Mission
8,847
- Training
113,858
- Donations
171,084
Other income
2,000
Investment charge – The
Redditch Trust
6,660
Transfer of funds from Local
Church Trusts
8,660
740,732
Total Operating Income
Income from sale of properties
1,902,373
Of closed Churches
310,463
On disposal of manses
2,212,836
2,953,568
Total Incoming Resources		 2023
Total
Funds
Unrestricted
Designated
Restricted
£
£
£
£
571,340
379,163
192,177
-
51,972
51,972
-
-
623,312
431,135
192,177
-
9,450
-
9,450
-
632,762
431,135
201,627
-
7,225
7,225
-
-
8,336
8,336
-
-
2,652
2,014
-
638
18,213
17,575
-
638
2,000
2,000
-
-
43,913
-
43,913
-
45,913
2,000
43,913
-
696,888
450,710
245,540
638
848,432
848,432
-
-
1,329,581
-
1,329,581
-
2,178,013
848,432
1,329,581
-
2,874,901
1,299,142
1,575,121
638		 2023
Total
Funds
Unrestricted
Designated
Restricted
£
£
£
£
571,340
379,163
192,177
-
51,972
51,972
-
-
623,312
431,135
192,177
-
9,450
-
9,450
-
632,762
431,135
201,627
-
7,225
7,225
-
-
8,336
8,336
-
-
2,652
2,014
-
638
18,213
17,575
-
638
2,000
2,000
-
-
43,913
-
43,913
-
45,913
2,000
43,913
-
696,888
450,710
245,540
638
848,432
848,432
-
-
1,329,581
-
1,329,581
-
2,178,013
848,432
1,329,581
-
2,874,901
1,299,142
1,575,121
638
-
-
-
-
-
638
638
-
-
-
638
-
-
-
638

27

THE UNITED REFORMED CHURCH (WEST MIDLANDS) TRUST LIMITED Notes to the Financial Statements Year Ended 31 December 2023

2. Income and Expenditure (Continued)

b) Analysis of Total Operating Resources Expended

2022
Total
Funds
£
Costs of Generated Funds
67,860
Investment Management Fees
1,448
Other property costs
17,787
Shared Indirect costs(Note 3)
87,095
Total Cost of Generating Funds
Charitable Activities
Ministry & Mission:-
453,447
Grants(Note 4)
10,011
Residential Synod
14,044
Support Costs
20,000
Resource sharing(Note 4)
130,439
Shared Indirect Costs(Note 3)
627,941
Training:-
9,920
Ministers(Note 4)
1,540
Students(Note 4)
1,923
Members(Note 4)
608
Church Treasurers and staff
62,403
Training – staff costs
320
Support Costs
20,108
Shared Indirect Costs(Note 3)
96,822
Property:-
38,029
Church Repairs(Note 4)
-
Energy efficiency
47,686
Manse Repairs(Note 4)
24,930
Manse allowance and insurance
13,090
Manse Expenses
8,651
Church surveys(Note 4)
30,840
Staff costs
1,724
Legal and Support Costs
42,664
Shared Indirect Costs(Note 3)
207,614
932,377
Total Charitable Expenditure
72,710
Interest
1,092,182
Total Operating Resources
Expended
(278,740)
Net (Expenditure)/income on
operating account		 2023
Total
Funds
Unrestricted
Designated
Restricted
£
£
£
£
64,048
(28,332)
92,380
-
-
-
-
-
23,040
23,040
-
-
87,088
(5,292)
92,380
-
124,952
98,870
15,882
10,200
9,265
9,265
-
-
17,655
17,655
-
-
25,000
25,000
-
-
168,956
168,956
-
-
345,828
319,746
15,882
10,200
11,292
11,292
-
-
1,430
1,430
-
-
2,710
2,710
-
-
1,180
1,180
-
-
40,773
40,773
-
-
-
-
-
-
26,046
26,046
-
-
83,431
83,431
-
-
94,372
94,372
-
-
340,752
-
340,752
-
1,900
-
1,900
-
28,335
-
28,335
-
8,516
-
8,516
-
16,334
16,334
-
-
37,970
37,970
-
-
16,025
-
16,025
-
55,262
55,262
-
-
599,466
203,938
395,528
-
1,028,726
607,117
411,409
10,200
49,861
-
49,861
-
1,078,587
607,115
461,270
10,200
(418,926)
(151,115)
(258,249)
(9,562)		 2023
Total
Funds
Unrestricted
Designated
Restricted
£
£
£
£
64,048
(28,332)
92,380
-
-
-
-
-
23,040
23,040
-
-
87,088
(5,292)
92,380
-
124,952
98,870
15,882
10,200
9,265
9,265
-
-
17,655
17,655
-
-
25,000
25,000
-
-
168,956
168,956
-
-
345,828
319,746
15,882
10,200
11,292
11,292
-
-
1,430
1,430
-
-
2,710
2,710
-
-
1,180
1,180
-
-
40,773
40,773
-
-
-
-
-
-
26,046
26,046
-
-
83,431
83,431
-
-
94,372
94,372
-
-
340,752
-
340,752
-
1,900
-
1,900
-
28,335
-
28,335
-
8,516
-
8,516
-
16,334
16,334
-
-
37,970
37,970
-
-
16,025
-
16,025
-
55,262
55,262
-
-
599,466
203,938
395,528
-
1,028,726
607,117
411,409
10,200
49,861
-
49,861
-
1,078,587
607,115
461,270
10,200
(418,926)
(151,115)
(258,249)
(9,562)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
10,200
-
10,200
(9,562)

28

THE UNITED REFORMED CHURCH (WEST MIDLANDS) TRUST LIMITED

Notes to the Financial Statements

Year Ended 31 December 2023

2022 Comparative figures

a) Analysis of Total Incoming Resources

Income from Investments
Listed Investments
Interest
Rents
Income from
Charitable Activities:
Grants – Ministry & Mission
- Training
- Donations
Other income
Investment charge – The
Redditch Trust
Transfer of funds from Local
Church Trusts
Total Operating Income
Income from sale of properties
Of closed Churches
On disposal of manses
Total Incoming Resources		 2022
Total
Funds
Unrestricted
Designated
Restricted
£
£
£
£
540,103
323,809
216,294
-
10,103
10,103
-
-
550,206
333,912
216,294
-
10,782
-
10,782
-
560,988
333,912
227,076
-
48,379
8,725
39,654
-
8,847
8,847
-
-
113,858
53,767
59,730
361
171,084
71,339
99,384
361
2,000
2,000
-
-
6,660
-
6,660
-
8,660
2,000
6,660
-
740,732
407,251
333,120
361
1,902,373
1,830,608
71,765
-
310,463
-
310,463
-
2,212,836
1,830,608
382,228
-
2,953,568
2,237,859
715,348
361

29

THE UNITED REFORMED CHURCH (WEST MIDLANDS) TRUST LIMITED

Notes to the Financial Statements

Year Ended 31 December 2023

2. Income and Expenditure (Continued)

b) Analysis of Total Operating Resources Expended

Costs of Generated Funds
Investment Management Fees
Other property costs
Shared Indirect costs(Note 3)
Total Cost of Generating Funds
Charitable Activities
Ministry & Mission:-
Grants(Note 4)
Residential Synod
Support Costs
Resource sharing(Note 4)
COVID support to Churches(Note 4)
Shared Indirect Costs(Note 3)
Training:-
Ministers(Note 4)
Students(Note 4)
Members(Note 4)
Church Treasurers and staff
Training – staff costs
Support Costs
Shared Indirect Costs(Note 3)
Property:-
Church Repairs(Note 4)
Manse Repairs(Note 4)
Manse allowance and insurance
Release of Church Sale Proceeds
Manse Expenses
Church surveys(Note 4)
Staff costs
Legal and Support Costs
Shared Indirect Costs(Note 3)
Total Charitable Expenditure
Interest
Total Operating Resources
Expended
Net (Expenditure)/income on
operating account		 2022
Total
Funds
Unrestricted
Designated
Restricted
£
£
£
£
67,860
46,810
21,050
-
1,448
-
1,448
-
17,787
17,787
-
-
87,095
64,597
22,498
-
453,447
91,552
351,285
10,610
10,011
10,011
-
-
14,044
8,286
5,758
-
20,000
20,000
-
-
-
-
-
-
130,439
130,439
-
-
627,941
260,288
357,043
10,610
9,920
9,920
-
-
1,540
1,540
-
-
1,923
1,923
-
-
608
608
-
-
62,403
59,514
2,889
-
320
320
-
-
20,108
20,108
-
-
96,822
93,933
2,889
-
38,029
38,029
-
-
47,686
-
47,686
-
24,930
-
24,930
-
-
-
-
-
13,090
-
13,090
-
8,651
8,651
-
-
30,840
15,420
15,420
-
1,724
-
1,724
-
42,664
42,664
-
-
207,614
104,764
102,850
-
932,377
458,985
462,782
10,610
72,710
-
72,710
-
1,092,182
523,582
557,990
10,610
(278,740)
(116,331)
(152,160)
(10,249)

30

THE UNITED REFORMED CHURCH (WEST MIDLANDS) TRUST LIMITED

Notes to the Financial Statements

Year Ended 31 December 2023

3.
Indirect Costs
2022
Total
Funds
£
Governance Costs
90
Synod Expenses
1,495
Synod Council
-
Synod Review
Staff Costs:-
150,347
Trust Employment Costs
1,928
Officers Expenses
11,200
Audit
242
Bank Charges
275
Committee Support Costs
165,577
Total Governance Costs
Premises Costs:-
1,600
Rent
4,657
Insurance
3,045
Electricity
11,137
Depreciation of Synod Office
7,161
Repairs and Cleaning
27,600
Office Costs:-
3,179
Telephone
5,999
Printing, Stationery and Postage
6,163
Computers
1,508
Advertising
972
Sundry costs
17,821
210,998
Total Indirect Costs
2022
Total
2023
Total
£
£
165,577
Governance costs
222,557
27,600
Premises costs
25,745
17,821
Office costs
25,000
210,998
Total Indirect Costs
273,302
100%
% of Direct costs
100%		 3.
Indirect Costs
2022
Total
Funds
£
Governance Costs
90
Synod Expenses
1,495
Synod Council
-
Synod Review
Staff Costs:-
150,347
Trust Employment Costs
1,928
Officers Expenses
11,200
Audit
242
Bank Charges
275
Committee Support Costs
165,577
Total Governance Costs
Premises Costs:-
1,600
Rent
4,657
Insurance
3,045
Electricity
11,137
Depreciation of Synod Office
7,161
Repairs and Cleaning
27,600
Office Costs:-
3,179
Telephone
5,999
Printing, Stationery and Postage
6,163
Computers
1,508
Advertising
972
Sundry costs
17,821
210,998
Total Indirect Costs
2022
Total
2023
Total
£
£
165,577
Governance costs
222,557
27,600
Premises costs
25,745
17,821
Office costs
25,000
210,998
Total Indirect Costs
273,302
100%
% of Direct costs
100%		 2023
Total
Funds
Unrestricted
Designated
Restricted
£
£
£
£
1,482
1,482
-
-
1,681
1,681
-
-
2,671
2,671
-
-
189,817
189,817
-
-
2,555
2,555
-
-
22,070
22,070
-
-
353
353
-
-
1,928
1,928
-
-
222,557
222,557
-
-
1,600
1,600
-
-
4,432
4,432
-
-
3,268
3,268
-
-
10,732
10,732
-
-
5,713
5,713
-
-
25,745
25,745
-
-
3,121
3,121
-
-
4,135
4,135
-
-
8,909
8,909
-
-
6,849
6,849
-
-
1,986
1,986
-
-
25,000
25,000
-
-
273,302
273,302
-
-
Charitable Activities

Raising
Funds
Ministry and
Mission
Training
Property
£
£
£
£
18,762
137,585
21,210
45,001
2,170
15,915
2,453
5,206
2,108
15,455
2,383
5,055
23,040
168,955
26,046
55,262
8.4%
61.9%
9.5%
20.2%		 2023
Total
Funds
Unrestricted
Designated
Restricted
£
£
£
£
1,482
1,482
-
-
1,681
1,681
-
-
2,671
2,671
-
-
189,817
189,817
-
-
2,555
2,555
-
-
22,070
22,070
-
-
353
353
-
-
1,928
1,928
-
-
222,557
222,557
-
-
1,600
1,600
-
-
4,432
4,432
-
-
3,268
3,268
-
-
10,732
10,732
-
-
5,713
5,713
-
-
25,745
25,745
-
-
3,121
3,121
-
-
4,135
4,135
-
-
8,909
8,909
-
-
6,849
6,849
-
-
1,986
1,986
-
-
25,000
25,000
-
-
273,302
273,302
-
-
Charitable Activities

Raising
Funds
Ministry and
Mission
Training
Property
£
£
£
£
18,762
137,585
21,210
45,001
2,170
15,915
2,453
5,206
2,108
15,455
2,383
5,055
23,040
168,955
26,046
55,262
8.4%
61.9%
9.5%
20.2%

273,302		 55,262
100% 20.2%

31

THE UNITED REFORMED CHURCH (WEST MIDLANDS) TRUST LIMITED

Notes to the Financial Statements

Year Ended 31 December 2023

2022 Comparative figures

3.
Indirect Costs
Governance Costs
Synod Expenses
Synod Council
Staff Costs:-
Trust Employment Costs

Officers Expenses
Audit
Legal and Professional
Bank Charges
Committee Support Costs
Total Governance Costs

Premises Costs:-
Rent
Insurance
Electricity
Depreciation of Synod Office
Repairs and Cleaning
Office Costs:-
Telephone
Printing, Stationery and Postage
Computers
Advertising
Furniture and equipment
Sundry costs
Total Indirect Costs
 2022
Total
Funds
Unrestricted
Designated
Restricted
£
£
£
£
90
90
-
-
1,495
1,495
-
-
150,347
150,347
-
-
1,928
1,928
-
-
11,200
11,200
-
-
-
-
-
-
242
242
-
-
275
275
-
-
165,577
165,577
-
-
1,600
1,600
-
-
4,657
4,657
-
-
3,045
3,045
-
-
11,137
11,137
-
-
7,161
7,161
-
-
27,600
27,600
-
-
3,179
3,179
-
-
5,999
5,999
-
-
6,163
6,163
-
-
1,508
1,508
-
-
-
-
-
-
972
972
-
-
17,821
17,821
-
-
210,998
210,998
-
-
Governance costs
Premises costs
Office costs
Total Indirect Costs
% of Direct costs		 Charitable Activities
2022
Total
Raising
Funds
Ministry and
Mission
Training
Property
£
£
£
£
£
165,577
13,958
102,360
15,779
33,480
27,600
2,327
17,062
2,630
5,581
17,821
1,502
11,017
1,699
3,603
210,998
17,787
130,439
20,108
42,664
100%
8.5%
61.8%
9.5%
20.2%		 Charitable Activities
2022
Total
Raising
Funds
Ministry and
Mission
Training
Property
£
£
£
£
£
165,577
13,958
102,360
15,779
33,480
27,600
2,327
17,062
2,630
5,581
17,821
1,502
11,017
1,699
3,603
210,998
17,787
130,439
20,108
42,664
100%
8.5%
61.8%
9.5%
20.2%
42,664
20.2%

32

THE UNITED REFORMED CHURCH (WEST MIDLANDS) TRUST LIMITED

Notes to the Financial Statements

Year Ended 31 December 2023

4. Grants

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

2023
Number
Institutional Grants
Ministry and Mission:
Carbon Offset
1
M & M Fund
1
Pulpit Supply
17
Inter-Synod Resource Sharing
1
Educational Chaplaincy
2
Ecumenical Situations
7
Release of legacy - Overseas
Mission
1
Release of Legacy – Local
Missions
-
Ministry Support Fund
-
Local Church Missions
7
Youth and Childrens Work
8
45
Property:
Church repairs
9
Manse repairs
1
Manse allowance and insurance
Church surveys
11
21
Total Institutional Grants
66
Individual Grants
Training:
Ministers
20
Members
10
Students
2
Total Individual Grants
32
Total Grants Charged
98		 2022
Amount
Number
£
1,006
-
50,000
1
3,973
17
25,000
1
20,200
4
17,695
8
10,200
1
-
1
-
3
15,882
8
5,996
2
149,952
46
94,372
10
1,900
6
28,335
16,334
9
140,941
25
290,893
71
11,292
44
2,710
12
1,430
6
15,432
62
306,325
133		 Amount
£
-
46,862
18,957
20,000
27,950
15,929
5,610
5,000
218,360
112,106
2,659		 Amount
£
-
46,862
18,957
20,000
27,950
15,929
5,610
5,000
218,360
112,106
2,659
473,433
38,029
47,686
24,930
8,650
119,295		 38,029
47,686
24,930
8,650
592,728
9,920
1,922
1,540
13,382
606,110		 9,920
1,922
1,540
13,382

33

THE UNITED REFORMED CHURCH (WEST MIDLANDS) TRUST LIMITED

Notes to the Financial Statements

Year Ended 31 December 2023

5. Trustees’ Expenses

There were no Honoraria paid in the year.

Reimbursed expenses were paid to Trustees of the Board in aggregate of £448 (2022: £151). This figure includes expenses reimbursed for duties including, but not restricted to, Board meetings and travel.

6.
Employment Emoluments
Wages and salaries
Employers national insurance
Pension costs
The average number of employees was		 2023
£
188,210
16,889
19,423
224,522
10		 2022
£
186,925
10,206
19,299
216,430
9

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.

7.
Gains on Investments
Realised gain on investments sold
Gains previously recognised in Trust accounts
Net gains/(losses) in the year on investments sold
Unrealised gains/(losses) on investments for the year
Net Gain/(Loss) on Investments for the Year		 2023
£
1,154,784
979,408
175,376
1,647,157
1,822,533		 2022
£
669,878
1,099,095
(429,217)
(2,991,265)
(3,420,482)

34

THE UNITED REFORMED CHURCH (WEST MIDLANDS) TRUST LIMITED

Notes to the Financial Statements

Year Ended 31 December 2023

8. Movement on Funds

a) Fund
Unrestricted Designated Funds
Church Buildings
Major Buildings Development
Fund
Energy Efficiency Fund
Manse - General
- Churches
Church Property
Mission Fund
Ministry Support Fund
Ministers Pension Support Fund
M & M Support Fund
Unrestricted General Funds
General Purposes
Restricted Funds
Choyce legacy
Total Funds
2022 Comparative figures		 Balance
1
January
2023
£
-
1,629,907
1,000,000
6,135,266
577,714
2,874,267
474,012
281,640
2,473,290
149,941
15,596,037
8,258,399
8,985
23,863,421		 Income
Expenditure
£
£
8,749
-
-
-
-
(340,752)
1,484,420
(65,202)
9,022
-
72,930
(81,953)
-
(15,882)
-
-
-
(49,861)
-
-
1,575,121
(553,650)
1,299,142
(601,825)
638
(10,200)
2,874,901
(1,165,675)		 Other
Movements
£
(8,749)
641,727
-
296,708
-
37,731
160,432
-
-
29,802
1,154,651
667,305
577
1,822,532		 Balance
31
December
2023
£
-
2,271,634
659,248
7,851,192
586,736
2,899,975
618,562
281,640
2,423,429
179,743
17,772,159
9,623,021
-
27,395,180
a) Fund
Unrestricted Designated Funds
Church Buildings
Major Buildings Development
Fund
Energy Efficiency Fund
Manse - General
- Churches
Church Property
Mission Fund
Ministry Support Fund
Ministers Pension Support Fund
M & M Support Fund
Unrestricted General Funds
General Purposes
Restricted Funds
Choyce legacy
Total Funds		 Balance
1
January
2022
£
-
-
-
7,685,332
569,940
2,778,606
456,274
500,000
2,546,000
-
14,536,152
10,865,032
21,332
25,422,516		 Income
Expenditure
£
£
8,678
-
-
-
-
-
470,518
(133,995)
7,774
-
128,994
-
-
(112,106)
-
(218,360)
-
(72,710)
99,384
(20,819)
715,348
(557,990)
2,237,859
(523,582)
361
(10,610)
2,953,568
(1,092,182)		 Other
Movements
£
(8,678)
1,629,907
1,000,000
(1,886,589)
-
(33,333)
129,844
-
-
71,376
902,527
(4,320,910)
(2,098)
(3,420,481)		 Balance
31
December
2022
£
-
1,629,907
1,000,000
6,135,266
577,714
2,874,267
474,012
281,640
2,473,290
149,941
15,596,037
8,258,399
8,985
23,863,421

35

THE UNITED REFORMED CHURCH (WEST MIDLANDS) TRUST LIMITED

Notes to the Financial Statements

Year Ended 31 December 2023

8. Movement on Funds (continued)

Transfers between reserves

Included within Other Movements above are transfers between funds as follows:-

Transfer major buildings
development fund
Transfer deficit on Church
Buildings Fund
Summary
Restricted
Designated
Unrestricted
Total funds		 General
purposes
Church
Building
Fund
Mission
Fund
Major
Buildings
Development
M & M
Support
Fund
Unrestricted
Designated
Designated
Designated
Designated
£
£
£
£
£
(831,960)
-
160,432
641,727
29,802
8,749
(8,749)
-
-
-
(823,212)
(8,749)
160,432
641,727
29,802
Balance 1
January
2023
Income
Expenditure
Other
Movement
Balance 31
December
2023
£
£
£
£
£
8,985
638
(10,200)
577
-
15,596,037
1,575,121
(553,650)
1,154,651
17,772,159
8,258,399
1,299,142
(601,825)
667,305
9,623,021
23,863,421
2,874,901
(1,165,675)
1,822,532
27,395,180

b) Purpose of Funds

During the year, to establish more transparency in accounting for the balances relating to the funds of closed churches and pulpit supply cost reimbursement from the URC nationally, the Trustees have changed the recognition policy to move the balances received out of creditors and into designated funds. This has meant recognising the income in the SOFA, and the movement this year reflects the adjustment relating to a number of years.

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.

36

THE UNITED REFORMED CHURCH (WEST MIDLANDS) TRUST LIMITED

Notes to the Financial Statements

Year Ended 31 December 2023

8. Movement on Funds (continued)

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.

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

Funds from the disposal of the properties or land at Stoke Chapel, Hall Green URC, Hollymount URC, Olton URC, Hobs Moat URC, Foleshill URC, Worcester URC, St John's Stone URC and Baxter URC pending a decision on future their use.

Ministry Support Fund

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

Ministers Pension Support Fund – Designated

During the previous year a formal resolution was passed making a commitment to support the United Reformed Church Ministers Pension Fund financially if required.

Major Buildings Development Fund - Designated

The Major Buildings Development Fund was established to receive the net proceeds of sale of closed churches. The fund is intended to facilitate the extension, rebuilding or conversion to new purposes of church buildings.

Energy Efficiency Grants - Designated

In response to a rapid rise in energy costs and an extension of our commitment to help churches move to a low or zero carbon future it was recognised that there was a need to support churches in improving the their energy efficiency. The fund was established by a transfer between reserves and whilst application were received during 2022, the first grants were not approved until January 2023.

37

THE UNITED REFORMED CHURCH (WEST MIDLANDS) TRUST LIMITED

Notes to the Financial Statements

Year Ended 31 December 2023

9.
Tangible Fixed Assets
Property
£
Cost
At 1 January 2023 and 31 December 2023
379,684
Depreciation
At 1 January 2023
155,918
Charge for the year
10,732
At 31 December 2023
166,650
Net Book Value
At 31 December 2023
213,034
At 31 December 2022
223,766
All assets are used for charitable purposes.
10.
Fixed Asset Investments
Listed Investments
Fixed
Interest
Equities
£
£
Market value at 1 January 2023
1,076,620
19,892,758
Additions
553,977
3,084,924
Sales and redemption
-
(3,635,387)
Net investment gains
61,161
1,585,569
Market Value at 31 December
2023
1,691,758
20,927,864
Cost at 31 December 2023
1,584,911
16,538,846
11.
Programme Related Investments
Cost at 1 January 2023
Manse purchased
Manse sale/repayment on investments
Cost at 31 December 2023
These investments relate to:-
- Manses
- Retired Ministers Housing		 Office
Equipment
£
10,968
10,968
-
10,968
-
-
Cash
£
189,623
151,395
-
-
341,018
341,018
2023
£
2,694,889
917,281
-
3,612,170
2023
£
3,606,146
6,024
3,612,170		 Total
£
390,652
166,886
10,732
177,618
213,034
223,766
Total
£
21,159,001
3,790,296
(3,635,387)
1,646,730
22,960,640
18,464,775
2022
£
2,385,349
377,885
(68,345)
2,694,889
2022
£
2,688,865
6,024
2,694,889

38

THE UNITED REFORMED CHURCH (WEST MIDLANDS) TRUST LIMITED

Notes to the Financial Statements

Year Ended 31 December 2023

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 Churches and Ministers
Other debtors
Prepayments
13.
Cash and Short Term Deposits
Bank
Current
Account
Charities
Official
Investment
Fund
£
£
General purposes
18,381
1,393
Designated accounts
-
420,948
Restricted funds
1,161
-
Balances as at 31 December 2023
19,542
422,341
14.
Creditors
a)
Amounts falling due within one year
Amounts due to United Reformed Church and related
Bodies
Other creditors – support for Ministers’ Pension Fund
Accruals -
Mission grants approved
Building grants approved
b)
Amounts falling due after more than one year
Amounts due to United Reformed Church
Support for Ministers’ Pension Fund		 2023
£
6,139
164,897
14,872
185,908
Epworth
Deposit
Fund
£
1,160,279
-
-
1,160,279
2023
£
71,113
508,571
73,058
172,588
126,830
952,160
2023
£
200,038
-
200,038		 2022
£
-
113,408
14,348
127,756
Total
£
1,180,053
420,948
1,161
1,602,162		 2022
£
-
113,408
14,348
127,756
2022
£
73,334
832,667
48,249
202,242
78,091
1,234,583
2022
£
219,903
444,043
663,946

39

THE UNITED REFORMED CHURCH (WEST MIDLANDS) TRUST LIMITED

Notes to the Financial Statements

Year Ended 31 December 2023

c) Provisions

Provision relates to Manse repair allowance of £750 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.

Provision for charges 2023
£
26,536		 2022
£
26,536

15. Disposition of Funds as at 31 December 2023

Fund
Designated Funds
Retired Ministers Housing
Manse- General
- Churches
Ministers Pension Fund
Church Property
Major Buildings Development
Energy Efficiency Fund
M & M Support Fund
Mission Fund
Ministry Support Fund
Unrestricted Funds
General Purposes
Total Funds		 Fixed
Assets
Investments
Programme
Related
Investments

£
£
£
-
-
6,024
-
3,307,480
3,606,146
-
586,736
-
-
2,114,000
-
-
2,899,975
-
-
2,271,634
-
-
558,481
-
-
129,743
-
-
673,045
-
-
455,963
-
213,034
9,963,583
-

213,034
22,960,640
3,612,170
 Debtors/
Creditors
£
(6,024)
27,566
-
(508,571)
-
-
100,767
-
(131,725)
(218,360)
(256,479)
(992,826)		 Cash and
Deposits
£
-
910,000
-
818,000
-
-
-
50,000
77,242
44,037
(297,117)
1,602,162		 Total
£
-
7,851,192
586,736
2,423,429
2,899,975
2,271,634
659,248
179,743
618,562
281,640
9,623,021

27,395,180

40

THE UNITED REFORMED CHURCH (WEST MIDLANDS) TRUST LIMITED

Notes to the Financial Statements

Year Ended 31 December 2023

2022 Comparative figures

Fund
Designated Funds
Retired Ministers Housing
Manse- General
- Churches
Ministers Pension Fund
Church Property
Major Buildings Development
Energy Efficiency Fund
M & M Support Fund
Mission Fund
Ministry Support Fund
Unrestricted Funds
General Purposes
Restricted Funds
Choyce Legacy
Total Funds		 Fixed
Assets
Investments
Programme
Related
Investments
Debtors/
Creditors
£
£
£
£
-
-
6,024
(6,024)
-
2,508,837
2,688,865
27,564
-
577,714
-
-
-
3,750,000
-
(1,276,710)
-
2,874,267
-
-
-
1,629,907
-
-
-
910,000
-
-
-
104,941
-
-
-
528,495
-
(131,725)
-
455,963
-
(218,360)
223,766
7,810,534
-
(192,054)
-
8,343
-
-
223,766
21,159,001
2,694,889
(1,797,309)		 Cash and
Deposits
£
-
910,000
-
-
-
-
90,000
45,000
77,242
44,037
416,153
642
1,583,074		 Total
£
-
6,135,266
577,714
2,473,290
2,874,267
1,629,907
1,000,000
149,941
474,012
281,640
8,258,399
8,985
28,863,421

41

THE UNITED REFORMED CHURCH (WEST MIDLANDS) TRUST LIMITED

Notes to the Financial Statements

Year Ended 31 December 2023

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.

Contingent Liability

The Trust has given a commitment to the national URC that, in the event that the actuarial valuation in 2024 of the URC Ministers Pension Fund demonstrates that it is necessary to provide additional financial support, they will contribute additional sums to the URC Trust totalling £1,400,500 or less over the period from 2025 to 2027.

A similar commitment has been given in the event that the actuarial valuation in 2027 shows that additional funding is required. In this case the commitment is a contribution of £997,500 or less over the period from 2028 to 2030.

17. Contingent Assets

At the year end, the properties of three churches and three manses, 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.

42

THE UNITED REFORMED CHURCH (WEST MIDLANDS) TRUST LIMITED

Notes to the Financial Statements

Year Ended 31 December 2023

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 £388,279 at 31 December 2023 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.

43

THE UNITED REFORMED CHURCH (WEST MIDLANDS) TRUST LIMITED

Notes to the Financial Statements

Year Ended 31 December 2023

19. Related Party Transaction

The Trust is the corporate Trustee of The James and Freeman Charity. During the year a charge of £2,000 (2022: £2,000) was made to The James and Freeman Charity for the administrative services provided by the Trust to the charity.

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
£
CIGB Ecumenical Missional
Grant Disciplineship 2,500 Rev S Faber Trustee
Hodge Hill Mission Mission Fund 1,485 Mr D Walton Trustee
Hodge Hill Energy
Efficiency		 Energy
Efficiency		 16,499 Mr D Walton Trustee
Sutton Coldfield Buildings RCC 5,655 Mr D Walton Trustee
Sutton Coldfield Energy Energy 16,247 Mr D Walton Trustee
Efficiency Efficiency
Holyhead Road URC Energy
Efficiency		 Energy
Efficiency		 1,380 Mr S Powell Trustee
St Andrews Energy Energy 14,883 Mr D Black Trustee
Cheltenham Efficiency Efficiency
Shrewsbury URC Energy
Efficiency		 Energy
Efficiency		 9,976 Mr M Davies Finance
Officer
Shrewsbury URC Youth Ministry Missional 486 Mr M Davies Finance
Disciplineship Officer
Shrewsbury URC Youth Travel Missional 500 Mr M Davies Finance
Disciplineship Officer
Shrewsbury URC Interfaith Mission Fund 1,000 Mr M Davies Finance
Officer
David Walton RSS Removal costs 4,525 Mr D Walton Trustee

20. Financial Instruments

Financial assets measured at fair value through net income comprise fixed asset investments with a value of £22,619,622 (2022: £20,969,378).

44