**THE SODOR AND MAN DIOCESAN ASSOCIATION (SAMANDA)** **(UK CHARITY REGISTRATION NO: 507933)** **FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020** ## **THE SODOR AND MAN DIOCESAN ASSOCIATION** ## **FINANCIAL STATEMENTS** ## **For the year ended 31 December 2020** |**Index**|Page| |---|---| |Trustees’ Report|1 - 3| |Independent Examiner’s Report|4| |Receipts and payments Account|5| |Statement of Assets & Liabilities|6| |Notes to the accounts|7 – 11| ## **Professional Advisors** Bankers Isle of Man Bank, 2 Athol Street, Douglas, Isle of Man. Legal Advisor - Sodor & Man Diocesan Registrar Mrs Louise Connacher, Lupton Fawcett LLP, Stamford House, Piccadilly, York, YO1 9PP Independent Examiner Dennis McGurgan F.C.A. Grant Thornton Limited Exchange House, 54/62 Athol Street, Douglas Isle of Man, IM1 1JD Address of Charity Church House, Great Smith Street, London SW1P 3NZ Investment Advisors Sodor & Man Diocesan Board of Finance Investment Committee. ## **THE SODOR AND MAN DIOCESAN ASSOCIATION** **TRUSTEES’ REPORT** ## **For the year ended 31 December 2020** ## _**Structure, Governance and Management**_ The Society is registered with the Charity Commissioners. (Registration number 507933). The charity was constituted on 30 June 1978. The Trustees are drawn from serving and past members of the Sodor and Man Diocesan Board of Finance, are elected annually at the Annual General Meeting and are listed below. ## _**Trustees**_ President and Chairman - The Lord Bishop of Sodor and Man Committee members - Mr J Power; the Venerable Andrew Brown, James E Noakes. ## _**General Secretary**_ Mrs Michelle Barwood ## _**Principal Office**_ Church House, Great Smith Street, London SW1P 3NZ ## _**Treasurer**_ Mrs Lisa Johnson, 21 Brighton Terrace, Douglas, Isle of Man, IM1 4AP ## _**Charitable Objectives, Policies and Investment Powers**_ The Charity’s purpose is to further the advancement of the Christian religion in the Diocesan of Sodor and Man. The Charity is regulated by the Charities Act of 2011. In furtherance of its object the charity is to: - A. obtain, collect and retain funds in the United Kingdom by donations, subscriptions, grants legacies and other means for this purpose. - B. transmit funds from time to time to the Diocese of Sodor and Man for this purpose. - C. support the charitable work of the Diocese of Sodor and Man. The Trustees have given due consideration to the Charities Act 2011 and are satisfied that the activities noted above are adequate such that they have complied with public benefit guidance. During the year Samanda has continued to have loans from The Sodor & Man Diocesan Board of Finance, St George’s Parish Church and other Parishes. Such loans have been invested in 'The Central Board of Finance of the Church of England'. Under the terms of the Charity, provision has been made for the income from such investments to be distributed to the lenders. The Trustees consider the resources of the Charity to be appropriate in the context of the Charity’s activities. Samanda has received continued funding from the Sodor and Man Diocesan Board of Finance, an entity under the same common control, as disclosed in note 4 to the accounts. 1 **THE SODOR AND MAN DIOCESAN ASSOCIATION** ## **TRUSTEES’ REPORT** ## **For the year ended 31 December 2020** ## _**Future Plans**_ There are no plans to change the activities of the Charity. ## _**Review of investments**_ It is the Charity’s policy to provide a balance of income and capital growth. During the year there were no significant changes in the proportion of underlying investment portfolio represented by the CBF Investment fund and the CBF Fixed Interest Securities fund. 97.91% (2019 - 97.92%) of the invested funds at the initial cost are now invested in the CBF Investment fund. An analysis of the portfolio by cost and market value is set out in note 9. Investments are stated at valuation. The market value adjustment for the year is gain of £228,435 (2019 – gain of £520,668) which arises as a consequence of the year end revaluation. The original funding for such investments was by way of loan. As the lenders have confirmed that in the event of a loan repayment arising the amount to be repaid would reflect any movement in market value at that time, the trustees consider it is appropriate that a market value adjustment of £228,435 (2019 – gain of £520,668) be made to the value of the loans made to the charity to reflect the overall rise in market value of such loans during the year – see notes 2, 5 & 6 to the accounts. ## _**Financial Results and Reserves Policy**_ The results for the year are set out fully in the Receipts and payments Account on page 5. The investment income available for distribution in the year has increased. Day to day costs of management and administration continue to be met by the Sodor and Man Diocesan Board of Finance, which enables expenditure of a non direct charitable nature to be kept to a minimum. The Trustees consider that the assets of the charity are sufficient to fulfil its obligations. As a consequence no reserves are held or considered necessary. 2 **THE SODOR AND MAN DIOCESAN ASSOCIATION** **TRUSTEES’ REPORT** ## **For the year ended 31 December 2020** ## **STATEMENT OF TRUSTEES’ RESPONSIBILITIES** The trustees are responsible for preparing the trustees’ annual report and the financial statements in accordance with applicable law and regulations. The Charities Act 2011 and the Charities (Accounts and Reports) Regulations 2008 require the trustees to prepare the financial statements for each financial period. Under that law the trustees have prepared the financial statements on a receipts and payments basis. In preparing those Financial Statements the trustees are required to: - select suitable accounting policies and then apply them consistently; - make judgements and estimates that are reasonable and prudent; and - prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business. The trustees are responsible for keeping accounting records that are sufficient to show and explain the charity’s transactions and disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the accounts comply with the Charities Act 2011 and regulations made thereunder. 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. Approved by the Trustees at a Trustees meeting held on by 2021 and signed on its behalf ## **For the Trustees** ## **For the Trustees** 3 **THE SODOR AND MAN DIOCESAN ASSOCIATION** ## **INDEPENDENT EXAMINER’S REPORT TO THE TRUSTEES OF THE SODOR AND MAN DIOCESAN ASSOCIATION** I report on the accounts of The Sodor and Man Diocesan Association for the year ended 31 December 2020 which are set out on pages 5 to 11. This report is made solely to the charity's trustees, as a body, in accordance with Regulation 31 of the Charities (Accounts and Reports) Regulations 2008. My work has been undertaken so that I might state to the charity's trustees those matters I am required to state to them in an independent examiner's report and for no other purpose. To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other than the charity's trustees as a body, for my work, for this report, or for the statement I have made. ## **Respective responsibilities of trustees and examiner** The charity’s trustees are responsible for the preparation of the accounts. The charity’s trustees consider that an audit is not required for this year under section 144(2) of the Charities Act 2011 (the 2011 Act) and that an independent examination is needed. It is my responsibility: - to examine the accounts under section 145 of the 2011 Act; - to follow the procedures laid down in the general Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act; and - to state whether particular matters have come to my attention. ## **Basis of independent examiner’s report** My examination was carried out in accordance with the general Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from you as trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit and consequently no opinion is given as to whether the accounts present a ‘true and fair view’ and the report is limited to those matters set out in the statement below. ## **Independent examiner’s statement** In connection with my examination, no matter has come to my attention: - (1) which gives me reasonable cause to believe that in any material respect the requirements: - to keep accounting records in accordance with section 130 of the 2011 Act; and - to prepare accounts which accord with the accounting records and comply with the accounting requirements of the 2011 Act - have not been met; or - (2) to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached. Dennis McGurgan Chartered Accountant Grant Thornton Limited Exchange House, 54/62 Athol Street, Douglas Isle of Man. Date: 4 **THE SODOR AND MAN DIOCESAN ASSOCIATION** ## **RECEIPTS AND PAYMENTS ACCOUNT** **For the year ended 31 December 2020** |_Note_
**Receipts:**
_1_
Donations
CCLA- Dividends & interest received
CCLA Share fund dividends
**Total receipts**
**Payments:**
**Direct charitable expenditure**
Grants paid
_8_
**Total payments**
**Net movement in funds**
Unrealised Gains on investments
_5_
Realised Gains on investments
_5_
Market Value Adjustment
_5/6_
**Balance brought forward**
**Balance carried forward**|£
£
£
£
5,044
-
68,884
67,513
10,915
13,823
84,843
81,336
84,843
81,336
(84,843)
(81,336)
-
-
228,435
520,688
-
-
(228,435)
(520,688)
-
-
-
-
-
-
**Restricted funds**
**Restricted funds**
**2019**
**2020**| |---|---| ||| Unrestricted funds amount to £100 and there has been no movement in un-restricted funds during the current or previous year. The results derive entirely from continuing operations. 5 **THE SODOR AND MAN DIOCESAN ASSOCIATION** ## **STATEMENTS OF ASSETS AND LIABILITIES AS AT 31 DECEMBER 2020** |_Notes_
**Fixed assets**
Investments
_1f & 5_
**Current assets**
Bank
Debtor
**Current liabilities**
DBF Loan
_2_
**Net current (liabilities)**
**Total net assets**
**Represented by:**
Restricted funds
Un-restricted funds
_3_
**Total funds**|-
100|**2020**
£
3,537,028| |---|---|---| ||100|| |||| Approved on and authorised for issue by: **For the Trustees** **For the Trustees** 6 ## **THE SODOR AND MAN DIOCESAN ASSOCIATION** ## **NOTES TO THE ACCOUNTS For the year ended 31 December 2020** ## **1 Accounting Policies** The financial statements have been prepared on a receipts and payments basis in accordance with applicable law. The charity’s income is below the level which would trigger full Statement of Recommended Practice for Charities compliance. A summary of the material accounting policies is set out below: ## _**a) Basis of accounting**_ The financial statements are prepared on a receipts and payments basis, as modified by the revaluation of investments and loan liabilities to fair value. ## _**b) Unrestricted Funds**_ Unrestricted funds represent the initial funding capital. ## _**c) Investment and donation income and Grants**_ CCLA Dividend income and interest are accounted for when received. Tax recoverable relating to specific donations received is accounted for when received. Investment income received is distributed via grants to those parties providing loans to the Association. The grants paid equal the investment income arising on the loans provided and donations received. ## _**d) Direct charitable expenditure**_ Direct charitable expenditure includes all expenditure directly related to the objectives of the Charity and comprises grants made during the year. ## _**e) Other expenditure**_ Day to day costs of management and administration have been met by the Sodor and Man Diocesan Board of Finance. ## _**f) Investments**_ Investments are held with CCLA Investment Management Limited and are stated at fair value on an open market basis, as advised by that institute. An analysis of the portfolio by cost and market value is set out in note 9. The market value adjustment each year arises as a consequence of the year end revaluation. See note 6 for detail. ## _**g) Taxation**_ The Sodor and Man Diocesan Association is a registered UK charity, whose activities are exempt from taxation under the Income and Corporation Taxes Act 1988 and Taxation of Chargeable Gains Act 1992. ## _**h) Loans**_ Loans advanced to the Association are used to acquire investments. These loans are subject to an annual market value adjustment such that the liability of the Association is equal to the market value of the investments acquired. ## _**i) Cash at bank**_ Cash at bank represents funds held with CCLA Investment Management Limited. 7 **THE SODOR AND MAN DIOCESAN ASSOCIATION** ## **NOTES TO THE ACCOUNTS** _**(continued)**_ **For the year ended 31 December 2020** ## _**j) Pensions**_ Samanda acts as an agent for the DBF regarding the transmission of pension contributions to the Church Of England Pensions Board at a rate agreed with the actuaries from time to time. From 1 January 2011 the rate was 38.2% from 1 January 2015 the contribution rate is set at 39.9% of pensionable stipends (of which 14.1% is in respect of the £293m shortfall in the Scheme and 25.8% is in respect of accrual of future benefits and the day-to-day expenses of running the scheme). ## **k** _**) Going Concern**_ Taking into account the Board’s intention to continue its activities, and the net asset position, the financial statements have been drawn up on a going concern basis. 8 ## **THE SODOR AND MAN DIOCESAN ASSOCIATION** ## **NOTES TO THE ACCOUNTS** _**(continued)**_ **For the year ended 31 December 2020** |**2**
**Long Term Liabilities**
The Sodor and Man Diocesan Board of Finance
St Georges PCC
Rushen PCC
St Mathews PCC
Patrick PCC
Braddan PCC
The Sodor and Man Diocesan Board of Finance
as custodian Trustee on behalf of:|**B/f**
**loan**
**£**
3,167,643
112,521
12,295
11,380
3,273
1,481
|**Loans**
**advanced/**
**(repaid)**
**£**
-
-
-
-
-|**Market**
**value adj**
**(note 6)**
**£**
218,702
7,770
849
786
226
102|**2020**
**2019**
**£**
**£**
3,386,345
3,167,643
120,291
112,521
13,144
12,295
12,166
11,380
3,499
3,273
1,583
1,481| |---|---|---|---|---| ||3,308,593|-|228,435|3,537,028
3,308,593| The loans are unsecured, interest free and have no fixed date for repayment. |**3**
**Un-restricted Funds**
Initial funding Capital|**2020**
**2019**
**£**
**£**
100
100| |---|---| - **4 Related Party Transactions** As disclosed within the Trustees' report, during the year, Samanda has received continued funding from the Sodor and Man Diocesan Board of Finance, an entity under the same common control, in order to further its activities. Grants have also been paid fromSamanda to the Sodor and Man Diocesan Board of Finance in respect of investment income received. At the year end, the outstanding loan balances (after market value adjustment - note 6) in respect of these transactions was £3,386,345 (2019 - £3,167,643). This loan is unsecured, interest free and not subject to any fixed repayment date. The Trustees' have not received any remuneration from the charity during the year (2019 - £nil). Admin costs incurred in the Diocesan Board of Finance accounts relating to Samanda for the Treasurer salary and examination fee are not re charged to Samanda. |**Investments**
Investment fund 1 January
Loans repaid in year
Movement on unrealised gains
Investment fund at 31 December
Cost £1,839,032 (2019 - £1,839,032)|**2020**
**2019**
**£**
**£**
3,308,593
2,801,905
-
(14,000)
228,435
520,688| |---|---| ||3,537,028
3,308,593| ||| - **5 Investments** Details of investments, including those comprising over 5% of the value of the portfolio, are shown in note 9. ## **6 Market Value Adjustment** As a consequence of stock market fluctuations the underlying value of the investment portfolio will vary over time. The original funding of such investments was by way of loan. The lenders have confirmed that in the event of a loan repayment arising the amount to be repaid will reflect any movement in market value at that time. As such a market value adjustment has been applied to the amount of such loans to reflect this situation and state the loan balances at the amounts repayable. 9 **THE SODOR AND MAN DIOCESAN ASSOCIATION** ## **NOTES TO THE ACCOUNTS** _**(continued)**_ **For the year ended 31 December 2020** ## **7 Pension Fund Contributions - CBF Pension Fund** Samanda acts as an agent for the Diocesan Board of Finance regarding the transmission of pension contributions to the Church Of England Pensions Board. During the year £122,243.05 (2019: £154,926) was paid in connection with this arrangement. No funds are held on behalf of the Diocesan Board of Finance at the year end (2019: Nil). ## **8 Grants Paid** |**Grants Paid**|| |---|---| |Sodor and Man Diocesan Board of Finance re:
Administration
Benefice Endowments
Bishops Property (Residence Fund)
Clergy Stipends
Clergy Widows & Children
Cubbon Cathedral Trust
Development fund
Diocesan Pastoral Account
Hoare Trust
Lady Hastings
Ramsey Grammar School
Retired clergy
St Johns Church
St Judes Parsonage
Training fund
Braddan PCC
German PCC
Patrick PCC
Rushen PCC
St Georges PCC
St Matthew's PCC|**2020**
**2019**
**£**
**£**
11,842
11,498
11,075
10,835
4,708
6,103
26,853
29,503
893
1,026
10,701
9,977
1,361
1,079
5,266
4,202
151
113
67
65
23
22
1,456
1,247
57
56
1,049
1,018
69
82
44
43
5,044
-
98
95
369
358
3,376
3,682
341
332| ||84,843
81,336| All grants have been made directly to churches, charitable bodies and the Sodor and Man Diocesan Board of Finance, all of which are based in the Isle of Man, and share the same charitable objectives as the charity as set out on page 1 of the Trustees Report. 10 **THE SODOR AND MAN DIOCESAN ASSOCIATION** ## **NOTES TO THE ACCOUNTS** _**(continued)**_ **For the year ended 31 December 2020 9 Investment Schedule** |||**No mina l Ho lding**|**No mina l Ho lding**|**No mina l Ho lding**||**Co s t**|**Co s t**|**Co s t**|**Co s t**|**Co s t**|**Co s t**|**Co s t**||**Ma rke t**| |---|---|---|---|---|---|---|---|---|---|---|---|---|---|---| |||**Bro ug ht**|**Additio ns**|**Ca rrie d**||**Bro ug ht**|**Additio ns**|**Ca rrie d**||**P ro c e e ds o n**|**P ro fit/(Lo s s)**|||**Va lue**| |||**Fo rwa rd**|**(Dispo s a ls)**|**Fo rwa rd**||**Fo rwa rd**|**(Dispo s a ls)**|**Fo rwa rd**|**Dispo s a l/Tra ns fe r o n dispo s a l**|||||**3 1- De c - 2 0**| |**CBF Fixe d Inte re s t S e c uritie s Fund**||||||£|£|£||||£||£| |Hoare Trust||63.00|-|63.00||104.40|-|104.40||-||-||106.56| |Retired Clergy||3,854.93|-|3,854.93||6,190.08|-|6,190.08||-||-||6,520.61| |Trainingfund||711.00|-|711.00||1,122.39|-|1,122.39||-||-||1,202.66| |Benefice Endowment||6,822.82|-|6,822.82||11,039.59|-|11,039.59||-||-||11,540.80| |ClergyWidows & Children||7,555.94||7,555.94||12,544.58||12,544.58||-||-||12,780.87| |||19,007.69|-|19,007.69||31,001.04|-|31,001.04||-||-||32,151.50| |**CBF Inve s tme nt Fund**||||||||||||||| |Administration||20,763.08|-|20,763.08||247,525.75|-|247,525.75||-||-||425,200.73| |Benefice Endowments||51,085.16|-|51,085.16||609,140.18|-|609,140.18||-||-||1,044,533.51| |Bishops Residence Fund(was Bishops Property||)
8,203.77|-|8,203.77||126,946.11|-|126,946.11||-||-||167,740.02| |ClergyStipends||46,789.57|-|46,789.57||410,457.01|-|410,457.01||-||-||956,694.96| |Cubbon Cathedral Trust||18,652.64|-|18,652.64||154,686.39|-|154,686.39||-||-||381,382.75| |Development fund||2,357.00|-|2,357.00||25,969.17|-|25,969.17||-||-||48,199.48| |Diocesan Pastoral Account||11,008.19|-|11,008.19||117,959.10|-|117,959.10||-||-||225,086.01| |Hoare Trust||238.00|-|238.00||2,618.99|-|2,618.99||-||-||4,858.95| |LadyHastings||155.95|-|155.95||1,216.00|-|1,216.00||-||-||3,188.66| |Retired Clergy||2,167.61|-|2,167.61||23,884.22|-|23,884.22||-||-||44,331.29| |Trainingfor Ministry||109.00|-|109.00||840.16|-|840.16||-||-||1,559.92| |Braddan PCC||77.42|-|77.42||603.00|-|603.00||-||-||1,582.98| |Patrick PCC||171.14|-|171.14||1,419.00|-|1,419.00||-||-||3,499.25| |Rushen PCC||642.84|-|642.84||5,387.00|-|5,387.00||-||-||13,143.96| |St Georges - General / PCC||2,937.23|-|2,937.23||28,582.72|-|28,582.72||-||-||60,056.66| |St Georges PCC re||||||||||||||| ||Graves Trust account|863.94|-|863.94||8,780.19|-|8,780.19||-||-||17,664.72| ||Poor Fund|137.49|-|137.49||1,230.38|-|1,230.38||-||-||2,811.22| ||Keyes Legacy|97.91|-|97.91||988.74|-|988.74||-||-||1,999.89| ||Barrack St Mission Schm.|2,151.09|-|2,151.09||19,909.74|-|19,909.74||-||-||37,758.10| |St Matthew's PCC||595.00|-|595.00||4,037.00|-|4,037.00||-||-||12,165.79| |ClergyWidows & Children||838.00|-|838.00||9,223.36|-|9,223.36||-||-||17,116.98| |||||||||||||||| |||170,042.03|-|170,042.03||1,801,404.21|-|1,801,404.21||-||-||3,470,575.83| |**CBF Inve s tme nt Fund - a c c umula tio n s ha re s**||||||||||||||| |Bishops Residence Fund(was Bishops Property||)
691.14|-|691.14||6,626.60|-|6,626.60||-||-||34,300.25| |||||||||||||||| |**TOTAL**||189,740.86|-|189,740.86||1,839,031.85|-|1,839,031.85||-||-||3,537,027.58| 11