THE SODOR AND MAN DIOCESAN ASSOCIATION (SAMANDA)
(UK CHARITY REGISTRATION NO: 507933)
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021
THE SODOR AND MAN DIOCESAN ASSOCIATION
FINANCIAL STATEMENTS
For the year ended 31 December 2021
| 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
Louise Kelly FCA 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 2021
Structure, Governance and Management
The Society is registered with the Charity Commission for England and Wales. (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 (retired 18 September 2021), the Venerable Irene Cowell (appointed 16 June 2022), 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:
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A. obtain, collect and retain funds in the United Kingdom by donations, subscriptions, grants legacies and other means for this purpose.
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B. transmit funds from time to time to the Diocese of Sodor and Man for this purpose.
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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.
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THE SODOR AND MAN DIOCESAN ASSOCIATION
TRUSTEES’ REPORT
For the year ended 31 December 2021
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. 97.2% (2020 - 97.91%) 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 £1,357,910 (2020 – gain of £228,435) 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 £1,357,910 (2020 – gain of £228,435) 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.
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THE SODOR AND MAN DIOCESAN ASSOCIATION
TRUSTEES’ REPORT
For the year ended 31 December 2021
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:
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select suitable accounting policies and then apply them consistently;
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make judgements and estimates that are reasonable and prudent; and
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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
2022 and signed on its behalf
For the Trustees
For the Trustees
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THE SODOR AND MAN DIOCESAN ASSOCIATION
Independent examiner’s report to the Trustees of The Sodor and Man Diocesan Association
I report on my examination of the accounts of The Sodor and Man Diocesan Association for the year ended 31 December 2021 which are set out on pages 5 to 11.
Responsibilities and basis of report
As the Charity Trustees you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (‘the Act’).
I report in respect of my examination of the Charity’s accounts carried out under section 145 of the 2011 Act and in carrying out my examination I have followed all the applicable directions given by the Charity Commission under section 145(5)(b) of the Act.
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 and that an independent examination is needed.
It is my responsibility to:
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examine the accounts under Section 145 of the Charities Act 2011,
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to follow the procedures laid down in the general directions given by the Charity Commission (under section 145(5)(b) of the Charities Act 2011), and
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to state whether particular matters have come to my attention.
Independent examiner’s statement
I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
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accounting records were not kept in respect of the Charity as required by section 130 of the Act; or
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the accounts do not accord with those records; or
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the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a ‘true and fair view’ which is not a matter considered as part of an independent examination.
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
Louise Kelly FCA Chartered Accountant Grant Thornton Limited Third Floor, Exchange House 54/62 Athol Street Douglas Isle of Man
Date:
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THE SODOR AND MAN DIOCESAN ASSOCIATION
RECEIPTS AND PAYMENTS ACCOUNT
For the year ended 31 December 2021
| 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 70,959 68,884 11,305 10,915 82,264 84,843 82,264 84,843 (82,264) (84,843) - - 1,357,910 228,435 - - (1,357,910) (228,435) - - - - - - Restricted funds Restricted funds 2020 2021 |
|---|---|
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.
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THE SODOR AND MAN DIOCESAN ASSOCIATION
STATEMENTS OF ASSETS AND LIABILITIES AS AT 31 DECEMBER 2021
| 2021 | 2020 | ||||
|---|---|---|---|---|---|
| Notes | £ | £ | |||
| Fixed assets | |||||
| Investments | 1f & 5 | 4,916,151 | 3,537,028 | ||
| 4,916,151 | 3,537,028 | ||||
| Current assets | |||||
| Bank | - | - | |||
| Debtor | 100 | 100 | |||
| 100 | 100 | ||||
| Current liabilities | |||||
| DBF Loan | 2 | (4,916,151) | (3,537,028) | ||
| (4,916,151) | (3,537,028) | ||||
| Net current (liabilities) | (4,916,051) | (3,536,928) | |||
| Total net assets | 100 | 100 | |||
| Represented by: | |||||
| Restricted funds | - | - | |||
| Un-restricted funds | 3 | 100 | 100 | ||
| Total funds | 100 | 100 |
Approved on and authorised for issue by:
For the Trustees For the Trustees
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THE SODOR AND MAN DIOCESAN ASSOCIATION
NOTES TO THE ACCOUNTS For the year ended 31 December 2021
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.
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THE SODOR AND MAN DIOCESAN ASSOCIATION
NOTES TO THE ACCOUNTS (continued) For the year ended 31 December 2021
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.
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THE SODOR AND MAN DIOCESAN ASSOCIATION
NOTES TO THE ACCOUNTS (continued) For the year ended 31 December 2021
| 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 £ 3,386,345 120,291 13,144 12,166 3,499 1,583 |
Loans advanced/ (repaid) £ 34,962 - - (12,166) - (1,583) |
Market value adj (note 6) £ 485,831 17,296 854,280 - 503 - |
2021 2020 £ £ 3,907,138 3,386,345 137,587 120,291 867,424 13,144 - 12,166 4,002 3,499 - 1,583 |
|---|---|---|---|---|
| 3,537,028 | 21,213 | 1,357,910 | 4,916,151 3,537,028 |
The loans are unsecured, interest free and have no fixed date for repayment.
| 3 Un-restricted Funds Initial funding Capital |
2021 2020 £ £ 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 £3,907,174 (2020 - £3,386,345). 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 (2020 - £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.
| 5 Investments Investment fund 1 January Net Loans in year Movement on unrealised gains Investment fund at 31 December Cost £2,669,354 (2020 - £1,839,032) |
2021 2020 £ £ 3,537,028 3,308,593 21,213 - 1,357,910 228,435 |
|---|---|
| 4,916,151 3,537,028 |
|
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.
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THE SODOR AND MAN DIOCESAN ASSOCIATION
NOTES TO THE ACCOUNTS (continued) For the year ended 31 December 2021
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 £137,699 (2020: £122,243) was paid in connection with this arrangement. No funds are held on behalf of the Diocesan Board of Finance at the year end (2020: 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 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 |
2021 2020 £ £ 12,264 11,842 11,380 11,075 4,875 4,708 27,807 26,853 826 893 11,081 10,701 1,409 1,361 5,453 5,266 156 151 93 90 1,458 1,456 59 57 1,086 1,049 62 69 11 44 - 5,044 102 98 382 369 3,496 3,376 263 341 |
| 82,263 84,843 |
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.
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THE SODOR AND MAN DIOCESAN ASSOCIATION
NOTES TO THE ACCOUNTS (continued) For the year ended 31 December 2021 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 | (Dis po s a ls ) | Fo rwa rd | Fo rwa rd | (Dis po s a ls ) | Fo rwa rd | Dis po s a l/Tra ns fe r | o ndis po s a l | 3 1- De c - 2 1 | ||||||
| CBF Fixe d Inte re s t S e c uritie s Fund | £ | £ | £ | £ | £ | |||||||||
| Hoare Trust | 63.00 | - | 63.00 | 104.40 | - | 104.40 | - | - | 99.53 | |||||
| Retired Clergy | 3,854.93 | - | 3,854.93 | 6,190.08 | - | 6,190.08 | - | - | 6,090.40 | |||||
| Trainingfund | 711.00 | - | 711.00 | 1,122.39 | - | 1,122.39 | - | - | 1,123.31 | |||||
| Benefice Endowment | 6,822.82 | - | 6,822.82 | 11,039.59 | - | 11,039.59 | - | - | 10,779.37 | |||||
| ClergyWidows& Children | 7,555.94 | 7,555.94 | 12,544.58 | 12,544.58 | - | - | 11,937.63 | |||||||
| 19,007.69 | - | 19,007.69 | 31,001.04 | - | 31,001.04 | - | - | 30,030.24 | ||||||
| CBF Inve s tme nt Fund | ||||||||||||||
| Administration | 20,763.08 | - | 20,763.08 | 247,525.75 | - | 247,525.75 | - | - | 486,339.69 | |||||
| Benefice Endowments | 51,085.16 | - | 51,085.16 | 609,140.18 | - | 609,140.18 | - | - | 1,194,725.40 | |||||
| Bishops Residence Fund(was Bishops Property | ) 8,203.77 |
- | 8,203.77 | 126,946.11 | - | 126,946.11 | - | - | 191,859.11 | |||||
| Clergy Stipends | 46,789.57 | - | 46,789.57 | 410,457.01 | - | 410,457.01 | - | - | 1,094,256.68 | |||||
| CubbonCathedral Trust | 18,652.64 | - | 18,652.64 | 154,686.39 | - | 154,686.39 | - | - | 436,221.20 | |||||
| Development fund | 2,357.00 | - | 2,357.00 | 25,969.17 | - | 25,969.17 | - | - | 55,130.00 | |||||
| Diocesan Pastoral Account | 11,008.19 | - | 11,008.19 | 117,959.10 | - | 117,959.10 | - | - | 257,450.78 | |||||
| Hoare Trust | 238.00 | - | 238.00 | 2,618.99 | - | 2,618.99 | - | - | 5,557.61 | |||||
| LadyHastings | 155.95 | - | 155.95 | 1,216.00 | - | 1,216.00 | - | - | 3,647.16 | |||||
| Retired Clergy | 2,167.61 | - | 2,167.61 | 23,884.22 | - | 23,884.22 | - | - | 50,705.62 | |||||
| Trainingfor Ministry | 109.00 | - | 109.00 | 840.16 | - | 840.16 | - | - | 1,784.22 | |||||
| Braddan PCC | 77.42 | (77.42) | - | 603.00 | (603.00) | - | 1,610.99 | 1,007.99 | - | |||||
| Patrick PCC | 171.14 | - | 171.14 | 1,419.00 | - | 1,419.00 | - | - | 4,002.40 | |||||
| Rushen PCC | 642.84 | 36,447.64 | 37,090.48 | 5,387.00 | 800,000.00 | 805,387.00 | - | 800,000.00 | 867,423.93 | |||||
| StGeorges -General/PCC | 2,937.23 | - | 2,937.23 | 28,582.72 | - | 28,582.72 | - | - | 68,692.11 | |||||
| StGeorges PCCre | ||||||||||||||
| Graves Trust account | 863.94 | - | 863.94 | 8,780.19 | - | 8,780.19 | - | - | 20,204.71 | |||||
| Poor Fund | 137.49 | - | 137.49 | 1,230.38 | - | 1,230.38 | - | - | 3,215.44 | |||||
| Keyes Legacy | 97.91 | - | 97.91 | 988.74 | - | 988.74 | - | - | 2,287.45 | |||||
| BarrackSt MissionSchm. | 2,151.09 | - | 2,151.09 | 19,909.74 | - | 19,909.74 | - | - | 43,187.28 | |||||
| St Matthew's PCC | 595.00 | (595.00) | - | 4,037.00 | (4,037.00) | - | 13,074.05 | 9,037.05 | - | |||||
| ClergyWidows& Children | 838.00 | - | 838.00 | 9,223.36 | - | 9,223.36 | - | - | 19,578.20 | |||||
| 170,042.03 | 35,775.22 | 205,817.25 | 1,801,404.21 | 795,360.00 | 2,596,764.21 | 14,685.04 | 810,045.04 | 4,806,268.99 | ||||||
| CBF Inve s tme nt Fund -a c c umula tio ns ha re s | ||||||||||||||
| Bishops Residence Fund(was Bishops Property | ) 691.14 |
- | 691.14 | 6,626.60 | - | 6,626.60 | - | - | 40,316.56 | |||||
| Squire Trust | - | 677.86 | 677.86 | - | 34,962.33 | 34,962.33 | - | - | 39,535.03 | |||||
| TOTAL | 189,740.86 | 36,453.08 | 226,193.94 | 1,839,031.85 | 830,322.33 | 2,669,354.18 | 14,685.04 | 810,045.04 | 4,916,150.82 | |||||
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