2023-03-31-accounts

The Monmouthshire County Council Welsh Church Act Fund

Annual Report and Financial Statements for the year ended the 31 March 2023

Registered Charity Number: 507094

The Monmouthshire County Council Welsh Church Act Fund Annual Report for year ended 31 March 2023

Contents

Trustee, Officers and Advisors	1
Report of the Trustee	2
Independent Auditors’ Report	7
Statement of financial Activities	8
Balance Sheet	9
Cashflow Statement	10
Notes to the Financial Statements	11

The Monmouthshire County Council Welsh Church Act Fund Annual Report for year ended 31 March 2023

Trustee, Officers and Advisors

Trustee

Monmouthshire County Council

Secretary

James Williams Chief Officer, Law & Governance (Monitoring Officer) Monmouthshire County Council

Registered Office

County Hall The Rhadyr, Usk NP15 1GA

Auditors

Audit Wales 1, Capital Quarter, Tyndall Street, Cardiff CF10 4BZ

Solicitor

James Williams Chief Officer, Law & Governance (Monitoring Officer) Monmouthshire County Council

Investment Custodian

Monmouthshire County Council

General Management Mr Peter Davies Deputy Chief Executive Monmouthshire County Council

Bankers

Barclays Bank 1-5 St David’s Way St David’s Centre Cardiff CF10 2DP

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The Monmouthshire County Council Welsh Church Act Fund Annual Report for year ended 31 March 2023

Report of the Trustee for the year ended 31 March 2023

The Trustee presents its annual report and the audited financial statements for the year ended 31 March 2023 of The Monmouthshire County Council Welsh Church Act Fund (‘the Charity’).

The information with respect to the Trustee, officers and advisors set out on page 1 forms part of this report.

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

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

Structure, Governance and Management

The Charity is governed by the Welsh Church Act 1914 and the Welsh Church Act (Designation and Specification) Order 1996 and is registered with the Charity Commissioners under charity number 507094.

The Trust covers the Council administrative areas of Blaenau Gwent, Caerphilly, Monmouthshire, Torfaen, and the City of Newport, with Monmouthshire County Council being designated as the host Authority. The Monmouthshire Welsh Church Act Fund was established on 1 April 1996, from the former Gwent Welsh Church Act Fund and part of the former Mid Glamorgan Welsh Church Act Fund.

Monmouthshire County Council as the Corporate Body is the Trustee for the Welsh Church Fund and therefore there are no policies and procedures adopted for the induction and training of trustees. The trustees also have regard to the Charity Commission’s guidance on public benefit.

The management of the Trust Fund is undertaken by officers of the Council and a calculated proportion of their time is charged to the Fund.

Objectives

The primary object of the Charity for each year, as stated in its governing document, is to assist public groups and individuals for educational, social,

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The Monmouthshire County Council Welsh Church Act Fund Annual Report for year ended 31 March 2023

recreational, and other charitable benefit purposes. Grants are available from the Fund for capital or revenue purposes. Capital grants may be awarded to assist organisations in the furnishing and upkeep of buildings. Revenue grants are designed to further the aims of societies and to assist individuals in their various pursuits.

Grants allocation policy

An annual budget set by the Trustee for grant payments is split between the administrative areas of Blaenau Gwent, Caerphilly, Monmouthshire, Torfaen, and Newport on a population basis.

A Committee set up by the Trustee approves grant applications on a basis in line with full Council meetings or as deemed required by the participating authorities. Grants are made in pursuance of the Charity’s objectives.

The grant allocation of each financial year is considered in line with the long-term financial viability of the trust and to maintain the ability to generate funds in future years for distribution by maintaining sufficient capital assets.

Review of activities and future developments

The statement of financial activities for the year is set out on page 8 of the financial statements. A summary of the financial results and the work of the Charity are set out below.

The Fund has decreased in value by £479,749 during the year (£366,412 gain in 2021/22, this decrease is primarily due to large unrealised losses (£472,972) at the 31[st] March 2023 valuation date due to volatile economic conditions following the fiscal policies adopted by government in the autumn of 2022.

Income is principally comprised of investment income of £212,453 (£192,896 in 2021/22), this has increased slightly in regard to distributions from the pooled investments funds held on the financial markets. The Trust has utilised the Trustee’s own investment managers to manage the other individual market investments, thus, controlling management fees and therefore maximising returns whilst at the same time maintaining a balanced capital risk strategy.

Charitable resources expended during the year amounted to £219,230 (£177,112 in 2021/22) and principally comprised grant payments of £204,850 (£163,310 in 2021/22).

Net losses on investments held amounted to £472,972 (£349,688 net gain in 2021/22). These non-realised investment losses have been due to the continued impact of the volatility in financial markets after the fiscal policies implemented during the autumn budget rounds. The ‘Trusts’ current investment strategy of diversifying the portfolio across several investment categories has enabled a certain degree of stability amid the current volatility in the financial markets. The long-term projections on these charity fund investments as indicated by the Trustees’ Treasury consultants continue to offer a balanced risk portfolio between income

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The Monmouthshire County Council Welsh Church Act Fund Annual Report for year ended 31 March 2023

generation and asset growth.

Assumptions made about the future and other major sources of estimation uncertainty

The Statement of Accounts contains estimated figures that are based on assumptions made by the Trust about the future or that are otherwise uncertain. Estimates have been made considering historical experience, current trends, and other relevant factors. However, because balances cannot be determined with certainty, actual results could be materially different from the assumptions and estimates.

The items in the Trust’s Balance Sheet at 31st March 2023 for which there is a significant risk of material adjustment in the forthcoming financial year are as follows:

The revaluation of investment property and property funds

Valuation techniques are used to determine the carrying amount of pooled property funds and investment property. Investment assets have been revalued as at the 31[st] March 2023 reporting date.

Changes in the valuation assumptions used, together with significant changes in rental growth could affect (increase or decrease) the fair value of property-based investments. As the investments are held on a long-term strategy basis, the fund does not foresee any long-term negative effect in the generation of future income streams.

Income generation

The Charity’s investment income was £212,453 compared to £192,896 in 2021/22. The diverse external pooled fund investment strategy that mainly replaced the pooled investment strategy with Monmouthshire County Council has continued to produce consistent returns in the financial markets due to investment in more specific charitable investment funds. This income generation forms the main basis of the following years grant allocations to ensure continuity and non-degradation of the funds capital assets and to perpetuate the charity as a ‘going concern’.

Bad debt provision

There are no bad debts arising in the year of account.

Investment powers, policy, and performance

Under the terms of the Trust Deed, the Trustee has general powers of investment, subject to the provisions of The Trustee Act 2000. The investment policy of the Trust is to maximise the rate of investment return, whilst employing a risk strategy that minimises any potential reduction in the capital value of the Fund.

The Trustee reviewed its investment strategy and produced an investment and fund strategy for 2022/23, which was approved by Monmouthshire County Council in its capacity as sole and corporate trustee, on 3[rd] March 2022.

Financial market investments have been restated at the financial year-end to reflect their current open market value.

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The Monmouthshire County Council Welsh Church Act Fund Annual Report for year ended 31 March 2023

Changes in fixed assets

The fixed asset investments were re-valued in the 2022/23 financial year in line with the Investment Asset policy of revaluation every year.

Reserves

The Trustee’s policy is to maintain the level of investments at a level that provides sufficient annual income to fund the Charity’s charitable expenditure. The level of funds held at 31[st] March 2023 is £5,201,291 (£5,681,040 in 2021/22). The Trustee reviewed its Fund strategy and produced an investment and fund strategy for 2022/23, which stated that the purpose of reserves is to maintain investments such that they realise sufficient income to provide grants to organisations at a consistent level. Whilst the strategy is to ensure that there is no long-term detrimental effect on overall reserve balances, recommendations made by the Charity Commission has resulted in grants allocations being made in line with investment returns.

Governance of the Charity

Representative Councillors from each of the five administrative areas of Blaenau Gwent, Caerphilly, Monmouthshire, Torfaen, and Newport are appointed by their respective councils annually to form a committee to oversee fund management. Members are appointed to the committee for the term of the Council.

Risk management

The Trustee has undertaken a review of the major risks to which the Charity is exposed, and its risk management and internal control procedures should be updated to ensure that systems are in place to mitigate the risks identified. The risk assessment was considered by Monmouthshire County Council on 3rd March 2022 and no risks were identified.

Auditors

Audit Wales were appointed as auditors to the Welsh Church Act Fund in 2007/08.

Statement of Trustee’s responsibilities

The Trustee is responsible for preparing financial statements for each financial year, which give a true and fair view, in accordance with United Kingdom Generally Accepted Accounting Practice, of the state of affairs of the charity and its financial activities for that period.

In preparing those financial statements, the Trustee is required to:

• select suitable accounting policies and then apply them consistently.

• make judgements and estimates that are reasonable and prudent.

• state whether applicable accounting standards and statements of recommended practice have been followed, subject to any departures disclosed and explained in the financial statements; and

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The Monmouthshire County Council Welsh Church Act Fund Annual Report for year ended 31 March 2023

• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operational existence.

The Trustee confirms that it has complied with the above requirements in preparing the financial statements.

The Trustee is responsible for keeping accounting records which disclose with reasonable accuracy at any time the financial position of the charity and to enable it to ensure that the financial statements comply with the Charities Act 1993. It is 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.

The Trustee certifies that:

• as far as it is aware, there is no relevant information of which the Charity’s auditors are unaware; and

• as Trustee of the Charity, it has taken all the steps that it ought to have taken in order to make itself aware of any relevant audit information and to establish that the Charity’s auditors are aware of that information.

By order of the Trustee

Mr Peter Davies Deputy Chief Executive (Section 151 Officer), Monmouthshire County Council Date: 11[th] January 2024

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The Monmouthshire County Council Welsh Church Act Fund Annual Report for year ended 31 March 2023

The independent auditor’s report of the Auditor General for Wales to the trustee of the Monmouthshire County Council Welsh Church Act Fund

Opinion on financial statements

I have audited the financial statements of Monmouthshire County Council Welsh Church Act Fund for the year ended 31 March 2023 under the Charities Act 2011. The financial statements comprise the Statement of Financial Activities, Balance Sheet and Statement of Cash Flows and related notes, including the 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 my opinion the financial statements:

• give a true and fair view of the state of affairs of the charity as at 31 March 2023 and of its incoming resources and application of resources for the year then ended;

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

• have been prepared in accordance with the Charities Act 2011.

Basis for opinion

I conducted my audit in accordance with applicable law and International Standards on Auditing in the UK (ISAs (UK)) and Practice Note 10 ‘Audit of Financial Statements of Public Sector Entities in the United Kingdom’. My responsibilities under those standards are further described in the auditor’s responsibilities for the audit of the financial statements section of my report.

My staff and I are independent of the charity in accordance with the ethical requirements that are relevant to my audit of the financial statements in the UK including the Financial Reporting Council’s Ethical Standard, and I have fulfilled my other ethical responsibilities in accordance with these requirements. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion.

Conclusions relating to going concern

In auditing the financial statements, I have concluded that the use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work I have performed, I have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the body’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from when the financial statements are authorised for issue.

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

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The Monmouthshire County Council Welsh Church Act Fund Annual Report for year ended 31 March 2023

Other Information

The other information comprises the information included in the annual report other than the financial statements and my auditor’s report thereon. The trustee is responsible for the other information contained within the annual report. My opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in my report, I do not express any form of assurance conclusion thereon. My responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If I identify such material inconsistencies or apparent material misstatements, I am required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work I have performed, I conclude that there is a material misstatement of this other information, I am required to report that fact.

I have nothing to report in this regard.

Matters on which I report by exception

I have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require me to report to you if, in my opinion:

• I have not received all of the information and explanations I require for my audit;

• sufficient accounting records have not been kept, or returns adequate for my audit have not been received from branches not visited by my team;

• the financial statements are not in agreement with the accounting records and returns; or

• the information given in the financial statements is inconsistent in any material respect with the trustee’s report.

Responsibilities of the trustee for the financial statements

As explained more fully in the statement of trustee’s responsibilities set out on page 5, the trustee is responsible for:

• maintaining sufficient accounting records;

• the preparation of the financial statements in accordance with the applicable financial reporting framework and for being satisfied that they give a true and fair view;

• internal controls as the trustee determines is necessary to enable the preparation of financial statements to be free from material misstatement, whether due to fraud or error;

• assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustee anticipate that the services provided by the charity will not continue to be provided in the future.

Auditor’s responsibilities for the audit of the financial statements

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The Monmouthshire County Council Welsh Church Act Fund Annual Report for year ended 31 March 2023

I have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with regulations made under section 154 of that Act.

My 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 my 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. I design procedures in line with my responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud.

My procedures included the following:

• Enquiring of management, and those charged with governance, including obtaining and reviewing supporting documentation relating to Monmouthshire County Council Welsh Church Act Fund’s policies and procedures concerned with:

• identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance;

• detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud; and

• the internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations.

• Considering as an audit team how and where fraud might occur in the financial statements and any potential indicators of fraud. As part of this discussion, I identified potential for fraud in the following areas: revenue recognition, expenditure recognition and posting of unusual journal;

• Obtaining an understanding of Monmouthshire County Council Welsh Church Act Fund’s framework of authority as well as other legal and regulatory frameworks that the Monmouthshire County Council Welsh Church Act Fund operates in, focusing on those laws and regulations that had a direct effect on the financial statements or that had a fundamental effect on the operations of Monmouthshire County Council Welsh Church Act Fund.

• Obtaining an understanding of related party relationships.

In addition to the above, my procedures to respond to identified risks included the following:

• reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with relevant laws and regulations discussed above;

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The Monmouthshire County Council Welsh Church Act Fund Annual Report for year ended 31 March 2023

• enquiring of management, the Governance and Audit Committee and legal advisors about actual and potential litigation and claims;

• reading minutes of meetings of those charged with governance and the trustees;

• in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business; and

I also communicated relevant identified laws and regulations and potential fraud risks to all audit team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

The extent to which my procedures are capable of detecting irregularities, including fraud, is affected by the inherent difficulty in detecting irregularities, the effectiveness of the Monmouthshire County Council Welsh Church Act Fund’s controls, and the nature, timing and extent of the audit procedures performed.

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

Other auditor’s responsibilities

I communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that I identify during my audit.

Adrian Crompton Auditor General for Wales 26 January 2024

1 Capital Quarter Tyndal Street

Cardiff CF10 4BZ

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The Monmouthshire County Council Welsh Church Act Fund Annual Report for year ended 31 March 2023

Statement of financial activities (Sofa) for the year ended 31 March 2023

March 2023
	Notes	2022/23	2021/22
		Total	Total
		Unrestricted	Unrestricted
		Funds	Funds
		£	£
Income & Endowments from:
Investment income	2	212,453	192,896
Other incoming resources		0	960
Total income & Endowments		212,453	193,856
Resources Expended
Raising funds:
Investment Property Professional fees		(480)	(400)
Management and administration		(2,550)	(2,500)
		(3,030)	(2,900)
Charitable expenditure
Costs of activities in furtherance
of the Charity’s objects
Grants payable	3,4	(204,850)	(163,310)
Management and administration		(5,095)	(4,647)
Other
Governance Costs	5	(6,255)	(6,255)
Total Resources Expended		(219,230)	(177,112)
Gains/(losses)on investment	9,10	(472,972)	349,668
Net Income /(Expenditure)		(479,749)	366,412
Net movement in funds		(479,749)	366,412
Fund balances brought forward April 2022		5,681,040	5,314,628
Fund balances carried	13	5,201,291	5,681,040
forward
31 March 2023

All incoming resources and resources expended are derived from continuing activities. There are no recognised gains or losses other than those disclosed above.

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The Monmouthshire County Council Welsh Church Act Fund Annual Report for year ended 31 March 2023

Balance Sheet as at 31 March 2023

	Notes	2022/23	2021/22
		Unrestricted	Unrestricted
		Funds	Funds
		£	£
Fixed assets
Investment Land	9	475,750	513,000
Investments	10	4,654,323	5,090,045
		5,130,073	5,603,045
Current assets
Debtors: amounts falling due within one year	11	47,159	44,811
Cash at bank	8	228,458	171,267
		275,617	216,078
Current Liabilities
Creditors: amounts falling due within one year	12	(204,399)	(138,083)
Net current assets or liabilities		71,218	77,995
Net assets or liabilities		5,201,291	5,681,040
The Funds of the Charity:
Unrestricted Funds	13	5,201,291	5,681,040
Total Charity funds		5,201,291	5,681,040

The accounts on pages 10 to 19 were approved by the Trustee on tbc , and signed on their behalf by:

By order of the Trustee

Mr Peter Davies Deputy Chief Executive – Monmouthshire County Council

Date: 11[th] January 2024

Statement of Cash flows as at 31 March 2023

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The Monmouthshire County Council Welsh Church Act Fund Annual Report for year ended 31 March 2023

	Total	Prior Year
	Funds	Funds
	£	£
Cash flows from operating activities
Net cash provided by operating activities ‘Note 7’	(155,262)	(268,362)
Cash flow from investing activities
Dividends and rents from investments	212,453	192,896
Cash received from pooled funds with MCC	0	50,000
Change in cash and cash equivalents in the reporting period	57,191	(25,466)
Cash and cash equivalents at the beginning of the reporting period	171,267	196,733
Cash and cash equivalents at the end of the reporting period	228,458	171,267

Notes to the financial statements for the year ended 31 March

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The Monmouthshire County Council Welsh Church Act Fund Annual Report for year ended 31 March 2023

2023

1 Principal accounting policies

The financial statements have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued on 16 July 2014 and the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and the Charities Act 2011. The trust constitutes a public benefit entity as defined by FRS 102.The trustees consider that there are no material uncertainties about the Trust’s ability to continue as a going concern.

A summary of the principal accounting policies, which have been applied consistently, are set out below.

Basis of accounting

The financial statements are prepared in accordance with the historical cost convention, as modified by the inclusion of investments and tangible fixed assets at market value. During the year, the Charity reviewed its accounting policies in accordance with FRS 102 ‘Accounting Policies’. No accounting policies have been changed as a result.

Incoming Resources

All income is accounted for on an accrual’s basis.

Cash Balances

Cash is sums of money available for immediate use by the Welsh Church Fund. Such items are deemed to be cash balances held in the Fund’s bank accounts (less unpresented cheques). The Welsh Church Fund does not hold Cash in Hand.

Resources expended

All expenditure is accounted for on an accrual’s basis. Where costs cannot be directly attributed to particular headings, they have been allocated to activities on a basis consistent with use of the resources.

Grants payable

Grants payable are accounted for in full as liabilities of the Charity when approved by the Trustee and accepted by the beneficiaries.

Management and administration

Management and administration costs include expenditure on administration of the Charity and, an appropriate apportionment of overheads based upon a time allocation.

Governance Costs

Governance costs comprise costs involving the compliance with constitutional and statutory requirements. These costs relate to audit fees payable to the appointed

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The Monmouthshire County Council Welsh Church Act Fund Annual Report for year ended 31 March 2023

external auditor.

Irrecoverable VAT

Any irrecoverable VAT is charged to the statement of financial activities or capitalised as part of the cost of the related asset, where appropriate.

Recognition of liabilities

Liabilities are recognised when an obligation arises to transfer economic benefits as a result of past transactions or events.

Debtors/ Creditors

Where revenue and expenditure have been recognised but cash has not been received or paid, a debtor or creditor for the relevant amount is recorded in the Balance Sheet. Where debts may not be settled, the balance of debtors is written down and a charge made to revenue for the income that might not be collected.

Fund accounting

Funds are unrestricted funds which are available for use at the discretion of the Trustee in furtherance of the general objectives of the Charity and which have not been designated for other purposes.

Investment Land and Property

Capitalisation, Replacement and Valuation

The Trust’s policy is to revalue its Investment land on an annual basis in line with the Charities SORP. Valuations will also be undertaken where identified that there have been material movements between formal valuations, as holdings are Investment Land not tangible fixed assets.

All land Investments were valued internally by a qualified land surveyor as at 31[st] March 2023 and all assets held at year-end are included in the accounts at that valuation date. Vacant properties are valued at open market value.

Depreciation

Land is not depreciated. The Fund currently has no buildings on the fixed asset register.

Investments

Any realised and unrealised gains and losses on revaluation or disposals of investments are included in the statement of financial activities. The Authority is authorised to invest any surplus income or dispose of any investments when it deems appropriate. Investments are strategically placed in external pooled fund investment funds specifically designed for charitable organisations. The basis of valuation on the market-based investments held with CCLA, M&G, UBS, and Schroder’s, is the open market value of the unit holdings on the 31[st] March 2023 multiplied by the units held. Investment performance is reviewed periodically in light of prevailing economic changes. The Treasury Stock 2024 valuation is based upon the market value of the Treasury Gilts at the 31[st] March 2023 as listed on the dmo.gov website. The value of the ‘pooled’ investment with Monmouthshire County Council is the cash value as

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The Monmouthshire County Council Welsh Church Act Fund Annual Report for year ended 31 March 2023

at the 31[st] March 2023.

Fees and similar income

Fees receivable and charges for services and use of premises are accounted for in the period in which the service is provided.

Cash flow statement

The Charity has produced a cash flow statement under Financial Reporting Standard 102 under section 7 on the basis that it meets the relevant conditions and size criteria specified in the Companies Act.1985.

2 Investment income	2023 2022 £ £ 0 0 4 6,533 208 186,363 212 192,896
Investments with Monmouthshire County Council Investment Property Rental Income External Investments
3 Grants Payable

3 Grants Payable
	2023	2022
	£	£
Grants have been paid to the following
administering Local Authorities for them to make
to groups and individuals on behalf of the Fund:
Monmouthshire County Council	18,750	34,440
Torfaen County Borough Council	24,925	26,353
Newport City Council	56,038	32,564
Blaenau Gwent County Borough Council	22,800	25,200
Caerphilly County Borough Council	82,337	44,753
	204,850	163,310

The management and administration cost of the fund and grants distributed were £4,695 during the year.

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The Monmouthshire County Council Welsh Church Act Fund Annual Report for year ended 31 March 2023

4 Analysis of Grants

4 Analysis of Grants
	Grants to	Grants to
	Organisations	Individuals
	£	£
The Advancement of Education	2,121	2,643
The Advancement of Religion	81,530	0
The Relief of Poverty	1,450	24,325
Other Purposes Beneficial to the Community	92,781	0
	177,882	26,968

Total

Unspent balances are retained for distribution in subsequent financial years. Grants to Churches and other Religious establishments totaled £81,530 and Community Organisations £92,781 respectively during the financial year. Grants of essential equipment and furnishings to the value of £24,325 were allocated to individuals for the relief of families deemed to be in poverty. No organization or individual received more than one grant award during 2022/23.

5 Governance Costs

5 Governance Costs
	2023	2022
	£	£
Auditor’s remuneration	6,255	6,255
	6,255	6,255

No indemnity insurance for Trustee’s liability has been purchased by the Charity however the Fund is covered by Monmouthshire County Councils’ fidelity guarantee insurance. Insurance covers financial losses incurred as a result of fraudulent acts conducted by Authority employees but does not cover the Trustee for any wrong decisions that may have been made.

6 Taxation

The Charity is a registered charity, and as such is entitled to certain tax exemptions on income and profits from investments, and surpluses on any trading activities carried on in furtherance of the Charity's primary objectives, if these profits and surpluses are applied solely for charitable purposes.

The Charity is not separately registered for VAT because it falls within the Local Authority’s VAT Registration as Corporate trustee and accordingly, all their expenditure is recorded exclusive of any VAT incurred.

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The Monmouthshire County Council Welsh Church Act Fund Annual Report for year ended 31 March 2023

7 Reconciliation of net income/ (expenditure) to net cash flow from operating activities as at 31 March 2023

	Current	Prior
	Year	Year
	£	£
Net income/(expenditure) for the reporting
period (as	(479,749)	366,412
per the statement of financial activities)
Adjustments for non-cash transactions
(Gains) /losses on investments	472,972	(349,668)
Dividends, Interest & Rents from investments	(212,453)	(192,896)
(Increase)/ decrease in debtors / bad debts	(2,348)	(3,305)
Increase/(decrease) in creditors	66,316	(88,904)
Net cash provided and (used in) operating activities	(155,262)	(268,362)

8 Analysis of cash and cash equivalents as at 31 March 2023

	Current	In Year	Prior Year
	Year	Movement
	£	£	£
Cash at bank	228,458	57,191	171,267
Total cash and cash equivalents	228,458	57,191	171,267

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The Monmouthshire County Council Welsh Church Act Fund Annual Report for year ended 31 March 2023

9 Investment Land and Property

	Total
	£
Valuation
At 1 April 2022	513,000
Disposals	0
Revaluation	(37,250)
At 31 March 2023	475,750
Depreciation
At 1 April 2022	0
Charge in year	0
Disposals	0
At 31 March 2023	0
Net book Value
At 1 April 2022	513,000
At 31 March 2023	475,750

Tangible Investment Assets solely consist of freehold land. Valuations were carried out in accordance with the valuation policy in the 2022/23 financial year and thereafter on an annual rolling basis.

10 Investments

	2023	2022
	£	£
CCLA - COIF Property Fund	968,824	1,148,750
UBS Multi Asset Income Fund	525,558	628,164
M&G Charibond Fund	612,365	659,767
Schroders Income Maximiser	359,688	375,291
M&G Charifund	516,083	549,675
CCLA - COIF Investment Fund	1,257,721	1,314,934
Treasury Stock 2024 2.5%	114,084	113,464
Invested with Monmouthshire County Council	300,000	300,000
	4,654,323	5,090,045

The Trust has externally managed investments held with UBS, M&G, Schroeder’s,

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The Monmouthshire County Council Welsh Church Act Fund Annual Report for year ended 31 March 2023

CCLA, and HM Treasury. The pooled investment with Monmouthshire County Council is managed by the Authority’s treasury management team, aided by their appointed external treasury management advisors. Returns from Monmouthshire County Council are generated on a “pooled” basis. The average rate of interest generated on the pooled funds from Monmouthshire was 2.2800% for 2022/23 (0.5200% for 2021/22).

There were no additions or disposals of investments during the financial year. None of the Investments are held outside of the territorial limits of the United Kingdom and the cost of the revaluations is contained within the charity management fee charged annually from Monmouthshire County Council.

11 Debtors

11 Debtors
	2023	2022
	£	£
Amounts falling due within one year
Prepayment & accrued income
Investment Income	47,159	44,136
Other Debtors	0	0
MCC Bank Transfer	0	0
Trade debtors
Rental income	0	0
Bad debt provision for loss of rental income	0	0
Other Debtors
HM Revenue and Customs	0	675
Other Debtors	0	0
	47,159	44,811
All investment interest due from the trustee was paid in year in 2022/23.
12 Creditors
	2023	2022
	£	£
Amounts falling due within one year
Grant creditors	190	131,838
Other creditors	13	6,245
	204	138,083

Grant creditors are recognised as the amounts awarded by the five constituent authorities of the Welsh Church Fund unpaid at the financial year-end. Other creditors are fees reimbursable for professional services utilised during the financial year by the Charity.

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The Monmouthshire County Council Welsh Church Act Fund Annual Report for year ended 31 March 2023

13 Funds

13 Funds
	Balance			Other	Balance
	1 April	Incoming	Resources	Recognised	31 March
	2022	resources	Expended	Gain / (Loss)	2023
	£	£	£	£	£
Unrestricted funds	5,681,040	212,453	(219,230)	(472,972)	5,201,291

14 Related party transactions

During the year transactions with related parties arose as follows:

		2023		2022
	**Receipts **	Payments	Receipts	Payments
	£	£	£	£
Monmouthshire CountyCouncil	10,110	5,095	2,206	5,133

Members of the Authority have direct control over the Welsh Church Fund’s financial and operating policies. Where work or services have been commissioned, or where grants were made during the financial year in which members had an interest, members have a duty to declare such an interest. The Welsh Church Fund must ensure that grants allocated were in full compliance with the Authority's standing orders and that grants were made with proper consideration of declarations of such interests.

During the financial year, members who declared an interest did not take part in any discussion or decision relating to grants made or works or services commissioned. Details of all interests declared are recorded in minutes or relevant meetings and recorded in the Register of Members' Interest, open to public inspection at County Hall, Usk.

There are outstanding balances for expenditure of £5,095 with Monmouthshire County Council. The Trust also held a £300,000 investment fund balance with Monmouthshire County Council at the year-end.

15 Trustee’s Expenses, Remuneration and Benefits

No Expenses, Remuneration or Benefits were incurred during the year of account

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