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2021-12-31-accounts

Company Number: 1571090 Charity Number: 511689

THE UNITED REFORMED CHURCH (NORTH WESTERN PROVINCE) TRUST LIMITED

Incorporating the North Western Synod of the United Reformed Church

REPORT AND FINANCIAL STATEMENTS

YEAR ENDED 31st DECEMBER 2021

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THE UNITED REFORMED CHURCH (NORTH WESTERN PROVINCE) TRUST LIMITED Incorporating the North Western Synod of the United Reformed Church Annual Report Year Ended 31[st] December 2021

Contents
Page
Trustees Annual Report 4 - 16
Independent Auditor’s Report 17 -20
Statement of Financial Activities 21
Balance Sheet 22
Statement of Cash Flows 23
Notes to the Financial Statements **24 - 50 **

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THE UNITED REFORMED CHURCH (NORTH WESTERN PROVINCE) TRUST LIMITED Incorporating the North Western Synod of the United Reformed Church

Annual Report Year Ended 31[st] December 2021

Reference and Administrative Information Registered Office

Synod Office Unit 20, Sandpiper Quay Waters Edge Business Park Modwen Road Salford M5 3EZ

Trustees and Directors of the Company

Mrs J C Mullineux (Chair of Trust) (Resigned 16[th] October 2021) Professor Christopher Whitehead (Appointed 16[th] October 2021) (Chair of Trust from 19[th] March 2022) Revd M Aspinall (Vice-Chair) Mr N. Andrews (Resigned 19[th] March 2022) Mr G W Bell Mr N Carter Mr A Haigh Mr M T Hart (Treasurer) Revd B S Jolly

Bankers

National Westminster Bank plc Spring Gardens Manchester. M60 2DB

Legal Advisers Slater Heelis LLP Lloyds Bank Buildings, 16 School Road, Sale, M33 7XP

Auditors

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

Investment Manager

Castlefield Investment Partners LLP 8th Floor, 111 Piccadilly Manchester. M1 2HY

Finance Officer Mr D Wyke

Synod Clerk Mr T Hopley

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Trustees Annual Report 2021

The trustees present their annual report and the audited financial statements of The United Reformed Church (North Western Province) Trust Limited for the year ended 31st December 2021. The trustees confirm that the trustees’ and financial statements of the company comply with the current statutory requirements, the requirements of the company’s governing document and the provisions of the Statement of Recommended Practice (SORP), applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). The company qualifies as a small Company under section 383, of the Companies Act 2006 and this report conforms to the requirements for small Company reporting.

The Trustees work within the general guidance issued by the Charity Commission on public benefit, when considering the delivery of activities in furtherance of the Charity’s aims and objectives.

Having considered the Fundraising Regulator’s Code of Fundraising Practice 2019, the Trustees have concluded that the charity is not an active fundraiser as defined by that code and is not required to be registered with the Fundraising regulators. The Trust has not used anyone to fundraise on its behalf and has not had any complaints regarding fundraising.

The Trust, through the work of the Synod, supports 113 Churches and Mission Projects in the region. Its support of these churches and their congregations aims to further their purposes in advancing the Christian religion.

Structure, Governance and Management

The Trust and the Synod

The United Reformed Church (North Western Province) Trust Limited (“the Trust”) is a company limited by guarantee (company no. 1571090) and a registered charity (charity no. 511689). It is governed by its Memorandum and Articles of Association as revised in 2012.

The North Western Synod of the United Reformed Church (“the Synod”) is one of thirteen Synods that make up the United Reformed Church. The Trust is the charity trustee of all the assets of the Synod including from the 1[st] April 2019 all manses for ministers and CRCWs (Church Related Community Workers). The Trust is the trustee of the church buildings held on behalf of the local churches in the Synod who manage those buildings. It acts as the custodian trustee of all the other assets of the local churches in the Synod.

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The Trust’s responsibility as trustee is exercised through its trustees or directors meeting as the Trust Management Committee. The Trust Management Committee and the Synod Resources Committee have the same membership. The meetings of these committees are held at the same time with a shared agenda and minutes. Matters that relate solely to the role of the Trust as custodian trustee are identified as such in both the agenda and the minutes.

A number of the Synod’s main funds have been registered as a separate charity with the Charity Commission. These are, (with the descriptor in note 18 to the accounts):

There are a few other small restricted and endowed funds of the Synod. These were not required by the Charity Commission to be registered as separate charities either due to their size or because the Trust has asked the Charity Commission to change the charitable objects of these funds and to make some of them expendable. The Charity Commission has issued a uniting declaration linking the registered charities so that they are treated as forming part of the Trust for the purposes of registration and accounting and thus allowing the Trust to report in these financial statements on all the activities in these funds as the reporting charity.

Trustees

The trustees of the charity are also company directors under company law. The Synod Moderator, Synod Treasurer, Synod Property Consultant, and Chair of Trust are ex officio trustees. Each of the Synod’s four areas (Cumbria, Lancashire, Central and South) is entitled to nominate two trustees, normally the Area Finance Officer and Area Property Officer. At the end of 2021, there was one vacancy in each area. When an area-nominated trustee resigns, the area nominates a replacement for approval by the trustees.

All trustees give their time voluntarily and receive no benefits from the charity apart from the reimbursed expenses set out in note 7. None of the trustees including Synod Officers are paid for acting as Trustees, though some are paid for other roles in the church, as set out in note 6 to the accounts.

Appointment of Trustees – Qualifications, Training, and Induction

All trustees must be current members of the United Reformed Church worshipping at a church within the Synod. The Trust is currently working to ensure a greater diversity in Trustee experience and particularly to appoint people with expertise and

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experience in such areas as property, human relations, law, and finance to the Board.

The trustees rely on the advice of Trust employees and professional advisors to ensure that they act in a proper and lawful manner. New trustees are made aware of their legal responsibilities but otherwise there is no standard training or induction programme for new trustees. Training in specific aspects of the work is provided as necessary. The experience that new trustees bring to the Board is at least as important as any particular expertise.

Indemnity Insurance

The Memorandum and Articles of Association of the Trust allow it to provide indemnity insurance for the trustees and employees of the charity and this is provided.

Constitution of Synod

The North Western Synod is one of 13 Synods of the United Reformed Church (“URC”) within the United Kingdom. It is constituted in accordance with the Scheme of Union and the United Reformed Church Acts of 1972, 1981 and 2000 (see www.urc.org.uk). It has oversight of the local churches and activities of the URC in much of the North West of England, covering parts of Derbyshire, Cheshire, Greater Manchester, Lancashire, and Cumbria. Its responsibilities include:

For full details of the responsibilities of Synods, see “The Structure of the United Reformed Church” on the URC’s central website (www.urc.org.uk). The Synod acts as a link between the local and central councils of the Church.

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The North Western Synod meets as a Council of the United Reformed Church (“URC”) twice each year. It is made up of the Synod Officers, ministers, lay representatives of each local church and co-opted members. The Synod delegates various powers to its Executive Committee and a number of subsidiary committees responsible for specific aspects of the Synod’s operations. The Committee structure comprises:

Work done by Employees and Volunteers

Most ministers of word and sacrament are paid directly from the Finance Office of the United Reformed Church in London. The Synod employs fourteen people. During 2021, the average number of full-time equivalents was ten. All members of Synod Committees and others supporting and enabling Synod activities are unpaid volunteers who can recover their travel and other expenses.

Related Parties

Local congregations of the United Reformed Church and Local Ecumenical Partnerships operating in the Synod’s area are separate and independent charities. They are not deemed to be connected charities within the understanding of the Charities SORP (FRS102) and none of the assets or liabilities of these bodies are incorporated in the Trust’s financial statements. Any related party transactions are disclosed in note 7 to the financial statements.

The Trustees are the key management personnel of the Trust. A Register of Interests is maintained, and any specific disclosures are made at the start of each Trust Management Committee.

Trustee for Local Churches

The Trust acts as custodian trustee of the local United Reformed Churches within the Synod, holding properties and investments separately on their behalf. Such property and funds are not included in the Trust accounts. The local churches have objects similar to the Trust. There are guidelines in place relating to safe custody and handling of these assets.

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Employees

The Synod is committed to employment policies that follow best practice, based on equal opportunities for all employees, irrespective of gender, gender reassignment, sexual orientation, religious beliefs, colour, ethnic or national origin, age, marital status, or disability. It endeavours to identify and remove barriers to participation in employment, training, and personal development.

The Synod has a Staff Handbook which provides employees with core information and regular staff meetings are held with both office and field staff to enable their involvement and engagement with all aspects of the work of the Synod. An external market review is sought for all new or changed posts to ensure comparability with similar jobs in the area and the charitable sector. An annual review of pay for all staff is undertaken and recommendations made to the Trust Management Committee for decision.

The Synod contributes to a staff pension scheme which is administered by TPT, its trustee. This is operated as a defined benefit scheme. During 2021, the Synod contributed 32.6% of pensionable salary in respect of members of the scheme, amounting to £89,249 (2020: £88,468). Members contributed at the rate of 7.5% of pensionable salary.

Aims and Objectives

Introduction

The Trust’s charitable objectives are set out in its registration with the Charity Commission, these are:

“To advance the Christian religion and propagate the gospel in accordance with the doctrines, principles and usages of the United Reformed Church with particular responsibility for the North Western Province”

The registration summarises the Trust’s activities as:

“Supporting the spreading of the gospel at home and abroad, the life and witness of the United Reformed Church, the interests of the church as a whole and the wellbeing of the society in which the church is placed, in particular in the north-west of England. Custodian Trustee for all properties owned by the local churches within the North Western Synod of the United Reformed Church and properties owned by the synod.”

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As well as discharging the responsibilities of the Synod and Trust set out in the URC Act and national church regulations, the Synod provides a range of services to support the ministry, mission, and administration of local churches, through its office and field staff and the engagement of specialist advisors. There are 113 Local Churches and two Mission Projects within the Synod area. The Trust also provides grants to local churches to support them in the maintenance and improvement of their buildings and for mission development work.

Review of the year

Implications of the Covid Pandemic

The focus of many of our activities during 2021 was on providing support to local churches in their response to the Covid pandemic. With the announcement of the third Lockdown in January 2021, churches were advised again to close their buildings. Many continued to worship online, but others found this more difficult. As restrictions eased during the second quarter of the year, churches gradually reopened their buildings albeit for much of the year subject to additional hygiene and safety measures and maintenance of social distancing.

Advice, Training and Pastoral Care for Ministers and Church Officers remained key elements of practical support provided by Synod Staff and Officers. In order to ensure the effective co-ordination and completeness of the advice and guidance, an additional part time member of staff has been employed throughout the year. This pro-active approach was greatly appreciated by churches. The post holder also provided co-ordination for the Trust of the position on church re-openings and the receipt of appropriate risk assessments which were the key condition for consent to the church’s re-opening. She has also provided invaluable support to churches in manging the closure process where that has been their decision. During the year the Synod appointed a new Training Officer on increased hours, reflecting the importance placed on the development and delivery of this part of our support to Churches.

Through the use of its reserves, the Synod provided significant financial support to churches in the payment of their agreed contributions to the national M&M fund. This has continued to a lesser degree in 2022. Over three quarters of the churches in the Synod have been able to benefit from the package of financial support which was agreed at the Synod Meeting in Autumn 2020 funded by the planned use of up to £750,000 from reserves.

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In March 2021, the Synod was advised by our Insurance Brokers that the Court ruling that some business interruption insurance policies covered losses arising from the Covid pandemic, was applicable to policies held by the majority of churches in the Synod area. Our Finance Officer has worked diligently with local churches, our insurance brokers, and loss adjusters to support churches to successfully pursue claims under this provision. Almost all of these claims are now settled and churches in the Synod have received compensation payments totalling over £900,000.

Operationally, the Synod had to close its office premises again January 2021. A business continuity plan based on all staff members working from home was successfully implemented. This minimised disruption to the work of the Synod and Trust. Using video technology, both the Trust Management and Synod Executive Committees increased the frequency of their meetings to enable proper oversight and advice in this period. The Synod Office reopened in May 2021 following completion of a comprehensive risk assessment and the implementation of required measures to ensure that it was “Covid secure”. This was also essential to enable preparations for the move to the new offices to take place.

Renewed Beginnings

In March 2021, the Synod launched a toolkit “Renewed Beginnings” as part of its support to churches in rebuilding their mission and ministry following the lockdown closures. This provided churches with a framework based on the “Pastoral Cycle,” sometimes working with external facilitation, to look at the experience of the previous two years and consider how they needed to rebuild their church life in their local context. The work of the Synod’s Mission Mentors and Children and Youth Development Officer, was an important support, working with local Ministers, Church Related Community Workers, to churches in this process.

Closed Churches

Unfortunately, five local fellowships came to a decision to close their church during 2021. These were at:

In addition, Westhoughton United Reformed Church, decided to close its Church building and to worship together with Westhoughton Methodist Church. Work is underway to formalise this relationship as a new Local Ecumenical Partnership.

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At the time of writing a further four fellowships have decided to close during 2022. These closures and the consequent sale of the redundant buildings is bringing significant additional resources into the Trust. Work is actively underway to develop new activities consistent with our aims and objectives to ensure that these resources are spent effectively on the life of the United Reformed Church in the North West.

Eco Synod

As well as supporting the work of Churches to become Eco-Churches, staff led by our Green Apostles, having been working to achieve Eco-Synod status. Where possible environmental considerations have been incorporated in the new Synod Office, for example the provision of an electric car charging point. The Synod was registered as an Eco-Synod by ARocha in March 2021 and are currently working towards an accredited level during 2022

At the time of writing 20 churches in the Synod have been accredited with an EcoChurch award 11 with Silver Awards and 9 with Bronze awards.

Synod Office

In November 2020, the Trust completed the purchase of new office accommodation for the Synod. As well as meeting current regulations for example around accessibility including the provision of an internal lift, the refurbishment has been undertaken with a focus on meeting new business requirements which have emerged during the pandemic. As examples, all the meeting rooms are equipped for fully hybrid meetings, and provision has been developed for a studio for video and audio recordings as a resource for use both by the Synod and local churches. The new office on Sandpiper Quays in Salford opened in June 2021 and has had a significant benefit to staff morale and working practices.

The previous office in the buildings of Patricroft United Reformed Church was sold as part of the sale of the church buildings following the closure of that church.

In October 2021, Jean Mullineux resigned as Chair of the Trust. We have been grateful for Jean’s leadership over the last five and a half years. Professor Christopher Whitehead was appointed Chair Designate in October 2021 and became Chair of Trust in March 2022.

Risk Management

The risk management process is co-ordinated by the Trust Management Committee, who maintain a risk register on behalf of both the Synod and Trust. This is included on the agenda for all Trust Management Committee meetings and is reviewed formally every six months by the Committee. The URC has recently developed a standard template to record risks and mitigation actions for use at all levels in the Church.

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In relation to financial and property risks, the Trust has agreed clear risk mitigation measures, for example savings are mostly held in accounts covered by the government’s Financial Services Compensation Scheme. The Synod’s investments are managed by independent specialists (Castlefield Investments) and are chosen to be low and medium risk and deposited with Pershing Securities one of the world’s largest custody banks. The Synod’s properties and the local church properties are all subject to quinquennial surveys by qualified surveyors and each local church is required to complete an annual self-assessment questionnaire about the condition of the properties under their control.

The most significant risk continues to be the decline in membership of the United Reformed Church, as with other mainstream denominations. This is impacting on both the financial resources and makes it more difficult to find volunteers to fill roles in the Synod and in local churches. For the Trust and the Synod, this means that more of the work is having to be done by paid staff rather than by volunteers. The Covid-19 pandemic in 2020/21 is having a significant impact on this at local church level and this is likely to impact on demands for support from Synod.

Synod Financial Strategy

The Synod has a long-standing financial strategy based on three core principles which it has also encouraged local churches to adopt. These core principles are:

These remain the core principles on which the Synod seeks to deploy its resources in support of the Ministry and Mission of its local churches.

Investment Policy

The vast majority of the Trust’s investments are managed by Castlefield Investment Partners. In order to achieve a balance between income returns and long-term growth the holding is held in an ethical portfolio focused on growth which provides a smaller level of income return. The Trust has a smaller investment managed by Epworth Investment Management Ltd.

The Investment portfolio forms one part of the Trust’s overall approach to the management of its reserves through the use of savings accounts and investment portfolio’s reflective of a regular assessment of future cash flow requirements.

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The Trust’s objectives are its investments are to:

The Synod’s long standing ethical considerations preclude investments in companies with significant involvements in armaments, pornography, supply of alcoholic drinks, gambling, and tobacco manufacture. In recent years URC General Assembly and Mission Council have resolved to request Synod Trusts to divest in companies that derive more than 10% of their turnover from the extract, processing, or sale of fossil fuels (URC Mission Council 2019); and from companies similarly deriving turnover from facilitating a range of activities in the occupied Palestinian territories. (URC General Assembly 2021).

Castlefield Investment have confirmed that both portfolios used by the Trust conform to these requirements. The holding with Epworth Investment is focussed in their Climate Stewardship Fund and forms part of the North Western Synod’s Eco-Synod priority through investment in renewable energy.

In terms of Castlefield, the performance in 2021 was +13.6% as compared with +12.3% for the ARC Sterling Steady Growth Charity Index (both figures on a total return and after costs basis). The total return over the past five years to end-2021 in total was +25.7% as compared to +39.8% for the ARC Sterling Steady Growth Charity Index. The Trust made new investments during the year in Epworth’s Climate Stewardship Fund. This fund grew by 21.6% during the year, ahead of the benchmark (FTSE All Share Index) of 18.3%. The fund also operated to a Carbon Footprint 78% below the benchmark (well in excess of the 15% target).

Reserves Policy

Note 18 to the Trust’s accounts provides details of the disposition of the Trust’s reserves. Unrestricted reserves at the end of the year amounted to £4,881,884. A relatively small proportion (£0.7m out of £18.05m) are held in Restricted or Endowed Funds. £10.3m of the Unrestricted and Designated Funds is held as property almost all of which is Manses which largely form the reserves of the Synod Manse Scheme. The balance is held in cash and deposit accounts and investments in accordance with the Investment Policy below.

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The Trust’s Reserves Policy seeks to balance maintaining sufficient reserves to provide the income stream (currently budgeted at £100k) to enable the Synod to meet its legal obligations under the URC Acts etc. and to further the charitable and spiritual mission of the Church.

In many organisations the minimum level of general reserves is defined as the sum required to ensure an orderly wind-up of the organisation’s affairs. In the case of the Trust this would not be a straight forward matter, not least with the issues around its responsibilities as the Custodian Trustee of church properties and Synod Manses. These could easily take at least 12 months to resolve. On this basis the Trust has agreed that it should retain a minimum level of unrestricted reserves equivalent to 18 months’ expenditure (i.e., £1.5m).

In practice because of the dependency on investment income to fund its activities the Reserves policy aims to retain general reserves at least double that amount, i.e., £3m.

Financial Review

Financial Statements

The financial statements have been produced in accordance with the Statement of Recommended Practice (FRS 102). The audited accounts are placed on the Synod’s website (www.nwsynod.org.uk) and paper copies will be provided to any member of one of the local churches of the Synod on request

Statement of Financial Activities

In 2021 unrestricted fund operating income was £179,934 (2020, £170,673) which was approximately £18,000 above budget. Although realised investment income was lower than expected at £59,519, investment values rose significantly during the year with an increase in the overall value of the Trust’s investments of £520,978 in the year to 31[st] December 2021. This reflected a decision taken in 2020 to focus holdings in growth funds. The balance between realised and unrealised investment income will be reviewed during 2022

Total operating expenditure amounted to £2,042,835 (2020 £1,412,600). The difference largely arises from the accounting treatment of the agreed Pension Contributions to support the Minister’s Pension Fund which totalled £550,000.. Overall, the accounts show a surplus on unrestricted funds of £849,872 with the unrestricted funds at the end of the financial year standing at £4,881,884. Overall funds stand at £18,045,054

.

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Balance Sheet

The Balance Sheet continues to show a strong position with Unrestricted Income Funds (General and Designated) having a combined value of £17,344,995 an increase of £1,557,312 on the start of the year. Tangible Fixed Assets have grown during the year by £950,367 almost all as a result of the increase in value of Manses reflecting the growth in residential properties during the year.

Post Balance Sheet Events

As at the 31[st] July 2022, six of the properties listed for disposal (three former church buildings and three manses) with a combined book value of £1.698m had sold for a combined value of £2.388m. One former church building sold for over £0.6m above its original valuation.

In August 2022, following decisions made by the United Reformed Church General Assembly in July, the Trust will commence consultation with its staff regarding changes to the Lay Staff Pension Scheme. If agreed the changes will take effect from 1[st] January 2023.

Trustees' Responsibilities

The Trustees (who are directors under company law) have prepared the Trustees’ Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the Trustees 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:

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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:

Appointment of Auditors

The trustees appointed the Birmingham office of MHA MacIntyre Hudson as auditors of the Trust’s from the 2016 accounts, and they were reappointed as auditors for the 2021 accounts.

We confirm on behalf of the Trust Management Committee, our approval of the accounts set out on pages 21 to 50.

Signed on behalf of the Trustees:

Professor J C Whitehead Chair of Trust 21 September 2022

Mr M T Hart Synod Treasurer

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INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE UNITED REFORMED CHURCH (NORTH WESTERNERN PROVINCE) TRUST LIMITED

Opinion

We have audited the financial statements of The United Reformed Church (North Western Province) Trust Limited (the ‘charitable company’) for the year ended 31 December 2021 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 Trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

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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 charitable 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 Trustees with respect to going concern are described in the relevant sections of this report.

Other information

The Trustees are responsible for the other information. The other information comprises the information included in the Trustees’ annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, 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.

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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.

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:

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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, collusion, omission or misrepresentation.

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

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.

Helen Blundell LLB, FCA, FCIE, DChA (Senior Statutory Auditor) For and on behalf of MHA MacIntyre Hudson (Statutory Auditor) Birmingham, United Kingdom Date: 23 September 2022

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Company No. 1571090 Charity No. 511689

Statement of Financial Activities

Year Ended 31st December 2021

INCOME FROM:
Donations:
Investments:
Investment income
Bank and deposit interest
Incoming resources from charitable activities:
Charitable activities
Other operating incoming resources:
Rent and loan interest
Total Operating Income
Other incoming resources:
Cash & Investments Transferred from Closed Ch
Transfers from Local Churches to Manse Fund
Properties Transferred from Closed Churches
Profit/(Loss) on Disposal of Properties
Other Income
Total Income:
EXPENDITURE ON:
Raising Funds:
Charitable Activities:
Grants & Donations
Training
Special Category Ministers
Office Salaries - Charitable Activities
Property Costs
Mission
Area Support
Other Charitable Expenditure
Governance costs
Total Operating Resources Expended
Net Income/(Expenditure) on Operating Account
Net Income/(Expenditure) before Transfers
Net Transfers between Funds
Net Income/(Expenditure)
Other Recognised Gains/(Losses):
Investments - Realised
Investments - Unrealised
Unrealised Gain/(Loss) on Property Revaluation
Net movement in funds
Total Funds Brought Forward 1st January 2021
Total Funds Carried Forward 31st December 2021		 Note
2.1.1
2.1.4
2.1.4
2.1.2
2.1.3
urches
2.1.5
2.1.5
2.1.5
2.1.5
2.1.5
2.2.1
2.2.2
2.2.3
9
8
8

11, 15
9		 2021
2020
Unrestricted
Designated
Restricted
Endowed
Total
Total
Funds
Funds
Funds
Funds
Funds
Funds
£
£
£
£
£
£
107,140
165,000
12,813
-
284,953
107,882
47,542
6,075
808
5,094
59,519
80,602
2,583
3,284
28
648
6,543
9,993
1,002
-
-
-
1,002
-
21,667
-
302
-
21,969
10,167
179,934
174,359
13,951
5,742
373,986
208,644
99,961
-
-
-
99,961
41,242
-
-
-
-
-
8,675
1,784,375
-
-
-
1,784,375
-
(2,923)
3,394
-
-
471
170,285
48
86,967
-
-
87,015
81,306
2,061,395
264,720
13,951
5,742
2,345,808
510,152
885
-
-
-
885
5,899
613,648
407,429
2,862
-
1,023,939
524,788
844
71,761
-
-
72,605
74,088
25,962
-
-
-
25,962
14,614
213,429
29,967
602
-
243,998
195,478
7,312
256,838
15,798
-
279,948
226,006
117,728
344
-
-
118,072
169,997
486
1,488
-
-
1,974
1,500
31,082
44,062
1,975
-
77,119
42,260
197,738
595
-
-
198,333
185,700
1,209,114
812,484
21,237
-
2,042,835
1,440,330
(1,209,112)
(812,480)
(1,029,180)
(638,125)
(7,286)
5,742
(1,668,849)
(1,231,686)
852,281
(547,764)
(7,287)
5,742
302,972
(930,178)
(67,455)
69,875
3,322
(5,742)
-
-
784,826
(477,889)
(3,965)
-
302,972
(930,178)
(14,223)
-
-
-
(14,223)
-
422,417
48,686
6,479
43,396
520,978
(211,249)

(343,148)
1,136,641
-
-
793,493
840,454
849,872
707,439
2,514
43,396
1,603,221
(300,973)
4,032,012
11,755,671
245,339
408,811
16,441,833
16,742,806
4,881,884
12,463,110
247,853
452,207
18,045,054
16,441,833

Page 21

The United Reformed Church (North Western Province) Trust Limited

Company No. 1571090 Charity No. 511689

Balance Sheet At 31st December 2021

Note
Fixed Assets:
Tangible Assets
11
Investments
12
Programme Related Investments
13
Current Assets:
Debtors: amounts falling due within
one year
14
Properties for disposal
15
Cash and Short Term Deposits
Creditors: Amounts falling due within one
year
16
Net Current Assets
Total Assets less Current Liabilities
Creditors: Amounts falling due after
more than one year
17
Total Assets
Funds:
Unrestricted Income Funds:
General
19
Designated
19
Total
Restricted Income Funds
19
Endowment Funds
19
Total Funds		 2021
2020
Unrestricted
Designated
Restricted
Endowed
Total
Total
Funds
Funds
Funds
Funds
Funds
Funds
£
£
£
£
£
£
370,463
10,907,453
-
-
11,277,916
10,327,549
3,768,554
464,414
59,808
397,869
4,690,645
4,125,806
210,980
(10,632)
211,547
-
411,895
467,790
4,349,997
11,361,235
271,355
397,869
16,380,456
14,921,145
31,491
102,228
-
-
133,719
58,825
1,779,811
867,564
-
-
2,647,375
2,323,132
1,214,177
1,401,167
21,075
54,338
2,690,757
2,935,280
3,025,479
2,370,959
21,075
54,338
5,471,851
5,317,237
(2,235,105)
(1,269,084)
(44,577)
-
(3,548,766)
(3,796,549)
790,374
1,101,875
(23,502)
54,338
1,923,084
1,520,688
5,140,371
12,463,110
247,853
452,207
18,303,541
16,441,833
(258,487)
-
-
-
(258,487)
-
4,881,884
12,463,110
247,853
452,207
18,045,054
16,441,833
(1)
(0)
(0)
(0)
(0)
4,881,884
-
-
-
4,881,884
4,032,012
-
12,463,110
-
-
12,463,110
11,755,671
4,881,884
12,463,110
-
-
17,344,994
15,787,683
-
-
247,853
-
247,853
245,339
-
-
-
452,207
452,207
408,811
4,881,884
12,463,110
247,853
452,207
18,045,054
16,441,833

Approved by the Trust Management Committee on 8th September 2022 and signed on its behalf on 21 st September 2022 by

Mr M T Hart Synod Treasurer

Mr C Whitehead Chair

Page 22

The United Reformed Church (North Western Province) Trust Limited

Company No. 1571090 Charity No. 511689

Statement of Cash Flows

2021
£
Cash flows from operating activities:
Net cash provided by (used in) operating activities
(1,869,002)
Cash flows from investing activities:
-
Dividends, interest and rents from investments
-
Proceeds from the sale of property, plant and equipment
2,574,365
Purchase of property, plant and equipment
(947,705)
Proceeds from sale of investments
150,332
Purchase of investments
(208,409)
Net cash provided by (used in) investing activities
1,568,583
Cash flows from financing activities:
Repayments of loans
162,396
Cash outflows from new loans
(106,500)
Receipt of endowment
Net cash provided by (used in) financing activities
55,896
Change in cash and cash equivalents in the reporting period
(244,523)
Cash and cash equivalents at the beginning of the reporting period
2,935,280
Cash and cash equivalents at the end of the reporting period
2,690,757
Reconciliation of Net Income to net cash flow from operating activities
2021
£
Net income/(expenditure) for the reporting period (as per the
statement of financial activities)
1,603,220
Adjustments for:
Depreciation charges
15,034
(Gains)/losses on investments
(520,983)
Dividends, interest and rents from investments
-
Loss/(profit) on the sale of fixed assets
(793,493)
Donations of Closed Church Buildings (non Cash)
(1,784,375)
(Increase)/decrease in properties for disposal
(324,243)
(Increase)/decrease in debtors
(74,894)
Increase/(decrease) in creditors
10,704
Net cash provided by (used in) operating activities
(1,869,002)		 2020
£
941,177
1,362,161
(1,956,885)
-
(100,000)
(694,724)
616,072
(832,395)
(216,323)
30,130
2,905,150
2,935,280
2020
£
(300,973)
6,164
211,249
-
(732,122)
-
2,579,628
10,871
(833,640)
941,177

Page 23

The United Reformed Church (North Western Province) Trust Limited

Company No. 1571090 Charity No. 511689

Notes to the Financial Statements Year Ended 31st December 2021

1. Accounting Policies

1.1. General Information

The United Reformed Church (North Western Province) Trust Limited is a charitable company limited by guarantee, and registered in England and Wales. The registered office is shown on page 3 of the Trustees Annual Report. The Trust’s principal activities are to support the advancement of the Christian religion by supporting the work of the URC North Western Synod and acting as Custodian Trustee of the buildings and other assets of local churches in the Synod area.

1.2. 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. The financial statements are prepared on a going concern basis under the historical cost convention, modified to include certain items at fair value. The financial statements are prepared in Sterling which is the functional currency of the charity, and rounded to the nearest £.

The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

1.3. Scope

The financial statements show the combined income, expenditure, assets and liabilities of those funds which are administered by the Trust for the benefit of the United Reformed Church North Western Synod. Page 5 of the Trustees report provides details of the main funds registered with the Charity Commission.

1.4. Classification of Funds

Endowed funds are permanent endowments which are required to be retained, but the income from these funds can be spent for the benefit of the Synod, subject to specific restrictions contained in the original endowment. Restricted funds are funds whose use is restricted to specific purposes, according to the terms on which the funds were received.

Unrestricted funds may be spent generally for furthering the religious and charitable work of the Synod. Unrestricted funds are analysed further as Designated Funds, which are earmarked by the Synod for a particular purpose, and General Funds, which can be used for any of the Synod’s purposes.

The notes to these accounts contain details of income and expenditure for funds by the above classification.

Page 24

1.5. Income Recognition

All incoming resources are included in the Statement of Financial Activities (SoFA) when the Trust 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.

1.6. Expenditure

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:

Costs of raising funds includes costs of managing investments and programme related investments; Expenditure on charitable activities includes costs of ministry, mission, training and property grants; and *Other expenditure represents those items not falling into the categories above. Irrecoverable VAT is charged as an expense against the activity for which expenditure arose.

1.7. Grants to Churches and Projects

Grants to churches and projects are accrued in the period in which the award is approved. 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 the control of the Trust.

1.8. 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, expenditure on charitable activities and governance costs on a basis consistent with use of the resources.

1.9. Tangible Fixed Assets

Properties are not depreciated as they are stated at a fair value. For Houses held as part of the Synod Manse Scheme, values are updated each year using the UK House Price Index. Church Buildings held for sale are included at the most recent Charities Act valuation for the individual property. It is the policy of the Trust to ensure that such properties are well maintained. The Trust’s policy is to revalue other properties once every five years, with an annual revaluation in the other years based on the Trustees estimate. No amounts under £2,500 are capitalised.

Other tangible fixed assets are stated at original cost less depreciation.

Depreciation

Depreciation of tangible fixed assets is charged at the following annual rates: Computers and office equipment - 1/3 of purchase price in each of first three years since purchase

Page 25

1.10. Investments

Investments are stated at fair value as at the balance sheet date and unrealised gains or losses are recognised in the Statement of Financial Activities. The Trust’s investment managers provide a valuation report as at the balance sheet date, showing the market value of each of the assets in the portfolio.

Programme related investments are those held to further our charitable purposes. Programme related investments include loans to local churches. Loans are stated at cost less repayments and are reviewed for impairment. The Trust’s Investment policy is set out on page 13 of the Trustees’ Annual Report.

1.11. Debtors and Creditors

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.

1.12. 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.

1.13. Contribution to Pension Funds

The Synod operates a defined benefit scheme in respect of its employees, which is provided by the Pensions Trust and administered by the United Reformed Church in London on behalf of the Synod. As the underlying assets and liabilities of the scheme cannot be separately identified, the pension scheme is accounted for as a defined contribution scheme and therefore the pension cost charged in the accounts represents the contributions payable by the Synod to the scheme during the year.

1.14 Critical accounting estimates and areas of judgement

The significant accounting policies adopted by the Trust have been set out above. These policies have been consistently applied to all years presented unless stated otherwise.

The following judgements, (apart from those involving estimates) have been made in applying the accounting policies, and which could have a significant effect on the amounts recognised in the financial statements Valuation of listed investments where valuations can be subject to variations arising from external factors which can impact on the future actual results.

Valuation of programme related investments, where a judgement is required as to whether impairment is required. These judgements are based on advice concerning the current property market Contingent assets and liabilities – estimates are made on the basis of the information available at point of approval of the financial statements as to the probability and value of the transactions Valuation of tangible fixed asset and investment properties where the trustees have considered the information available to them and made a judgement as to their fair value accordingly.

Page 26

1.15 Going concern

The Trustees assess whether the use of going concern is appropriate, i.e. whether there are any material uncertainties related to events or conditions that may cast significant doubt on the ability of the Charity to continue as a going concern. The Trustees make this assessment in respect of a period of at least one year from the date of authorisation for issue of the financial statements and have concluded that the Charity has adequate resources to continue in operational existence for the foreseeable future and there are no material uncertainties about the Charity’s ability to continue as a going concern, thus they continue to adopt the going concern basis of accounting in preparing the financial statements. This consideration has taken into account the expected impact of Covid-19 on the charity, as far as it can be determined, and the Trustees remain satisfied that the going concern principle remains appropriate.

1.16 Government grants

Grants are included in the Statement of Financial Activities on a receivable basis. The balance of income received for specific purposes but not expended during the period is shown in the relevant funds on the Balance Sheet. Where income is received in advance of meeting any performance related conditions there is not unconditional entitlement to the income and its recognition is deferred and included in creditors as deferred income until the performance-related conditions are met. Where entitlement occurs before income is received, the income is accrued.

Page 27

Company No. 1571090 Charity No. 511689

The United Reformed Church (North Western Province) Trust Limited

Notes to the Financial Statements Year Ended 31st December 2021

2. Analysis of Total Operating Income and Expenditure
2.1. Income
2.1.1. Voluntary Income
Donations
Local Church Contributions
Grants
Legacies
Total Voluntary Income:
2.1.2. Charitable Activities
Fund Generation - Synod Sales
Total Charitable Activities:
2.1.3. Rent and Loan Interest
Rent Income
Loan Interest
Total Rent and Loan Interest:
2.1.4. Investment Income
Investment Income
Bank and Deposit Interest
Total Investment Income:
Total Operating Income:
2.1.5. Other Income
Cash Transferred from Closed Churches
Transfers from Local Churches to Manse Fund
Properties Transferred from Closed Churches
Transfers from External Funds
Profit on Disposal of Properties (Note 4)
Other income
Sale of Assets
Total Other Income:
Total Income:
2.2. Expenditure
2.2.1. Expenditure on Raising Funds
Investment management costs
Goods purchased for resale
Shared indirect costs (note 3)
Total Expenditure on Raising Funds:		 2021
2020
Unrestricted
Designated
Restricted
Endowed
Total
Total
Funds
Funds
Funds
Funds
Funds
Funds
£
£
£
£
£
£
8,680
-
-
-
8,680
467
98,460
-
-
-
98,460
98,460
-
165,000
12,813
-
177,813
8,955
-
-
-
-
-
-
107,140
165,000
12,813
-
284,953
107,882
1,002
-
-
-
1,002
-
1,002
-
-
-
1,002
-
21,667
-
-
-
21,667
5,269
-
-
302
-
302
4,898
21,667
-
302
-
21,969
10,167
47,542
6,075
808
5,094
59,519
80,602
2,583
3,284
28
648
6,543
9,993
50,125
9,359
836
5,742
66,062
90,595
179,934
174,359
13,951
5,742
373,986
208,644
99,961
-
-
-
99,961
41,242
-
-
-
-
-
8,675
1,784,375
-
-
-
1,784,375
-
-
-
-
-
-
-
(2,923)
3,394
-
-
471
170,285
48
86,967
-
-
87,015
81,306
-
-
-
-
-
-
1,881,461
90,361
-
-
1,971,822
301,508
2,061,395
264,720
13,951
5,742
2,345,808
510,152
0
(3)
(1)
(1)
(3)
772
-
-
-
772
5,460
-
-
-
-
-
8
113
-
-
-
113
431
885
-
-
-
885
5,899

Page 28

2. Analysis of Total Operating Income and Expenditure (Continued)

2.2.2. Expenditure on Charitable Activities:

2.2.2. Expenditure on Charitable Activities:
Grants and Donations:
Local Church Property Grants - 34,050 2,862 - 36,912 173,515
Local Church Mission Grants - 292,399 - - 292,399 284,174
Local Church Grants - Other - - - - - -
Local URC Organisations - NW Pilots - 1,300 - - 1,300 1,300
URC Grants - Ministers' Pension Fund Support 508,487 - - - 508,487 21,397
URC Grants - Ministry & Mission Fund 1,652 38,376 - - 40,028 -
External Grants 18,840 24,123 - - 42,963 12,500
Ecumenical County Subscriptions 5,773 - - - 5,773 10,803
Shared indirect costs (note 3) 78,896 17,181 - - 96,077 21,099
Total Grants and Donations: 613,648 407,429 2,862 - 1,023,939 524,788
Training:
Ministers - 904 - - 904 7,747
Students - 2,917 - - 2,917 5,138
Lay Training 20 1,547 - - 1,567 463
Learning and Development Officer - 8,517 - - 8,517 -
Children and Young People 90 - - - 90 697
Children's and Youth Development Officer - 54,710 - - 54,710 59,760
Other training 625 140 - - 765 156
Shared indirect costs (note 3) 109 3,026 - - 3,135 127
Total Training: 844 71,761 - - 72,605 74,088
Special Category Ministers: Check 0 0 - -
Cumbria (74) - - - (74) 677
Chorlton 8,036 - - - 8,036 5,536
Salford 6,390 - - - 6,390 94
Oldham 8,581 - - - 8,581 7,116
Shared indirect costs (note 3) 3,028 - - - 3,028 1,191
Total Special Category Ministers: 25,962 - - - 25,962 14,614
Office Salaries - Charitable Activities: 1 - - -
Staff salaries and employment costs 188,536 28,703 602 - 217,841 182,883
Shared indirect costs (note 3) 24,893 1,264 - - 26,157 12,595
Total Office Salaries - Charitable Activities: 213,429 29,967 602 - 243,998 195,478

Synod Office staff provide legal, financial and property services to local churches, in addition to their activities on behalf of the Synod itself. The provision of these services to local churches is one of the charitable objects of the Synod. Salaries and associated costs are therefore apportioned between governance costs and charitable activities in the following proportions.

charitable activities in the following proportions.
Governance Charitable
Costs Activities
Legal & Trust Officer 20% 80%
Finance Officer, Finance Clerk & Office Manager 50% 50%
Treasurer & Clerk 25% 75%
Communications and Business Support Officer 40% 60%
Post Covid Support Officer - 100%
Other employees 100% -

Page 29

2. Analysis of Total Operating Income and Expenditure (Continued)

Property Costs:
Manse Fund
Other
Shared indirect costs (note 3)
Total Property Costs:
Mission:
Mission
Missional Discipleship
Shared indirect costs (note 3)
Total Mission:
Area Support:
Area Support
Shared indirect costs (note 3)
Total Area Support:
Other Charitable Expenditure:
Personal Expenses
Welfare
Other Operating Expenses
Shared indirect costs (note 3)
Total Other Charitable Expenditure:
Total Charitable Expenditure:
2.2.3. Governance Costs
Staff Salaries and Employment Costs
Trustee Expenses
Committee and Staff Expenses
Entertainment
Interest payable on Manse Fund balances
Legal Fees
Audit Fees
Consultancy Fees
Other Professional Fees
Shared indirect costs (note 3)
Total Governance Costs:		 -
246,007
-
-
246,007
184,375
6,457
-
15,798
-
22,255
39,234
855
10,831
-
-
11,686
2,397
7,312
256,838
15,798
-
279,948
226,006
260
329
-
-
589
871
102,641
-
-
-
102,641
155,308
15,182
15
-
-
15,197
13,818
118,083
344
-
-
118,427
169,997
425
1,425
-
-
1,850
1,380
62
63
-
-
125
120
487
1,488
-
-
1,975
1,500
12,905
25,699
-
-
38,604
24,990
-
-
1,975
-
1,975
1,820
14,181
16,505
-
-
30,686
14,708
3,997
1,858
-
-
5,855
742
31,082
44,062
1,975
-
77,119
42,260
1,010,847
811,889
21,237
-
1,843,973
1,248,731
114,444
-
-
-
114,444
87,032
3,970
569
-
-
4,539
4,617
441
-
-
-
441
471
682
-
-
-
682
-
-
-
-
-
-
27,671
8,040
-
-
-
8,040
22,699
9,180
-
-
-
9,180
10,992
11,233
-
-
-
11,233
16,236
20,675
-
-
-
20,675
3,106
29,073
26
-
-
29,099
12,876
197,738
595
-
-
198,333
185,700

Page 30

3. Analysis of Indirect Costs

Indirect Costs:
Premises Costs:
Rent Payable
General Rates
Property Repairs/ Decoration/ Refurbishment
Legal Fees
Other Professional Charges
Other Property Expenses
Electricity
Gas
Total Premises Costs:
Office Expenses:
Printing & Stationery
Postage
Copier Charges
Books etc
Subscriptions
Telephone
Internet Access
Computer Hardware, Software & Consumables
Mobile Charges
Office Furniture
Office Machine Maintenance
Office Equipment Repairs and Renewals
Cleaning
ICT Support
Online Backup
Office Provisions
Sundry Expenses
Health, Safety & Welfare
Recruitment Costs
Gifts
Storage Charges
Loss/(Gain) on sale of assets
Staff Training
Total Office Expenses:
Administration Costs:
Venue hire
Northern Synods Group
Conferences
Bank Charges
Bank Interest Paid
DCM Fees
Interest paid to churches with SMS fund
Bank Software
Closed Churches - Professional Charges
Closed Churches - M&M
Closed Churches - Property Expenses
Closed Churches - Sundry Expenses
Furniture/Fitting Depreciation
Office Equipment Depreciation
Computer Depreciation
Insurances
Total Administration Costs:
Total Indirect Costs:		 4,795
-
-
-
4,795
7,242
1,837
-
-
-
1,837
-
7,052
-
-
-
7,052
1,154
-
-
-
-
-
960
1,035
-
-
-
1,035
-
392
-
-
-
392
-
1,944
-
-
-
1,944
2,253
972
-
-
-
972
315
18,027
-
-
-
18,027
11,924
0
548
-
-
-
548
1,666
1,143
-
-
-
1,143
1,248
1,483
-
-
-
1,483
1,814
755
-
-
-
755
-
403
-
-
-
403
370
899
-
-
-
899
754
2,076
-
-
-
2,076
14
15,557
-
-
-
15,557
5,932
3,015
-
-
-
3,015
2,046
16,094
-
-
-
16,094
9
-
-
-
-
-
-
4,599
-
-
-
4,599
105
1,280
-
-
-
1,280
37
3,066
-
-
-
3,066
2,790
-
-
-
-
-
731
484
-
-
-
484
182
174
-
-
-
174
30
2,112
-
-
-
2,112
1,442
8,842
-
-
-
8,842
-
1,724
-
-
-
1,724
2,256
4,018
-
-
-
4,018
3,915
1,250
-
-
-
1,250
-
1,517
-
-
-
1,517
219
71,039
-
-
-
71,039
25,560
780
-
-
-
780
120
-
-
-
-
-
-
1,404
-
-
-
1,404
1,319
1,217
-
-
-
1,217
1,238
(87)
-
-
-
(87)
-
782
-
-
-
782
516
-
16,925
-
-
16,925
-
-
-
-
-
-
-
1,116
1,080
-
-
2,196
288
-
-
-
-
-
-
39,326
244
-
-
39,570
15,504
1,099
6,360
-
-
7,459
-
-
-
-
-
-
24
952
-
-
-
952
-
14,105
-
-
-
14,105
6,143
6,450
9,655
-
-
16,105
2,760
67,144
34,264
-
-
101,408
27,912
156,209
34,264
-
-
190,473
65,396

Page 31

3. Analysis of Indirect Costs (Continued)

Apportionment of Indirect Costs:

Expenditure on Raising Funds:
Expenditure on Charitable Activities:
Grants
Training
SCM
Office Salaries - Charitable Activities
Property Costs
Mission
Area Support
Other Charitable Expenditure
Governance Costs:
Total apportioned
4. Profit on Disposal of Properties
Gains/(losses) on disposal of fixed asset property
Proceeds from church closures		 113
-
-
-
113
431
78,896
17,181
-
-
96,077
21,099
109
3,026
-
-
3,135
127
3,028
-
-
-
3,028
1,191
24,893
1,264
-
-
26,157
12,595
855
10,831
-
-
11,686
2,397
15,182
15
-
-
15,197
13,818
62
63
-
-
125
120
3,997
1,858
-
-
5,855
742
29,073
26
-
-
29,099
12,876
156,209
34,264
-
-
190,473
65,396
0
(2,923)
3,394
-
-
471
179,784
-
-
-
-
-
(9,499)
(2,923)
3,394
-
-
471
170,285

Page 32

The United Reformed Church (North Western Province) Trust Limited

Company No. 1571090 Charity No. 511689

Notes to the Financial Statements

Year Ended 31st December 2021

5. Grants

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

Institutional Grants:
Ministry & Mission:
University Chaplaincy
County Ecumenical Subscriptions
Local URC Organisations Grants - North West Pilots
URC Grants - Ministers' Pension Fund Support
URC Grants - Ministry & Mission Fund Support
Local Church Mission Grants
Local Church Grants: Other
External Grants
Total Ministry & Mission Grants
Local Church Property Grants:
Asbestos surveys
Quinquennial property surveys
Property repairs and improvements
Total Local Church Property Grants
Total Institutional Grants
Individual Grants: (incuded in Training Costs in Note 2)
Training:
Ministers
Members
Students
Total Individual Grants
Total Grants Charged		 2021
2020
Number
Amount
Number
Amount
£
£
1
12,500
1
12,500
3
5,773
4
10,803
1
1,300
1
1,300
1
508,487
2
21,397
-
40,027
-
-
47
292,399
47
284,174
-
-
-
-
2
30,463
-
-
55
890,949
55
330,174
1
1,200
-
-
4
2,862
11
9,598
5
32,850
6
163,917
10
36,912
17
173,515
65
927,861
72
503,689
-
-
9
1,065
-
-
6
463
-
-
9
5,138
-
-
24
6,666
65
927,861
96
510,355

Page 33

6. Employment Emoluments

Wages and salaries
Employer's national insurance
Pension costs
The average number of employees was:
No employee received £60,000 per annum or more (2020: None). All staff are employed by the Company.		 2021
2020
£
£
367,632
342,324
328628.97
35,023
32,935
89,249
88,468
491,904
463,727
13.5
12.1

Lay Staff Pension Scheme:

The Synod contributed £89,249 (2020: £88,468) to The United Reformed Church Final Salary Scheme, a pension scheme principally for lay staff which is administered by TPT Retirement Solutions Trust (formerly The Pensions Trust). The scheme is a defined benefit scheme but the Synod is unable to identify its share of the underlying assets and liabilities – each member in the scheme pays a common contribution rate. The most recent formal actuarial review of the scheme was at 30 September 2019, when the scheme had a surplus of £2,689,000. The assumptions underlying that valuation include: -Discount rate of 1.4% pa

The company operates a defined benefit pension scheme and contributions are charged as expenditure as they become payable. Key Management Personnel include the Trustee's and key Synod Staff including Synod Clerk and the Treasurer. The Synod Clerk receives a salary for his role with the Trust. No other Trustee's are remunerated for their role as Trustee's. Key Management Personnel are considered to be the Trustee's only. The cost of Key Management Personnel (including associated payroll costs) were Synod Clerk £32,000 and the Treasurer £23,281 (2020: Synod Clerk £10,666 and the Treasurer £29,744)

7. Payments to Trustees/Related Party Transactions

The following expenses were paid to Trustees of the Trust:
Travel expenses
Stationery, telephone, repairs etc.		 2021
2020
£
£
3,322
2,923
1,217
1,694
4,539
4,617

All expenses paid to trustees in connection with their roles as trustees and in other roles with the Synod are included in the figures above.

A salary of £23,280 (2020: £29,744) was paid to Michael Hart for his role as Treasurer of the Synod. This is not considered to be renumeration for his role as a Trustee, and is permitted by the Articles of Association.

Owing to the nature of the Trust’s operations and the composition of the Board of Trustees being drawn from the local United Reformed Churches, grants awards, manse scheme agreements and loans may be made to churches from which the Trustee’s are drawn or to Trustee’s whose roles mean they are eligible to receive training grants. The Manse Scheme arrangements were agreed on the same basis and terms for all churches. All discussions about other grant awards or other transactions are undertaken without the presence of conflicted Trustees.

The local churches are not related parties by virtue of a common trustee but for transparency, grants and loans awarded, where they are not awarded to every church in the region, in excess of £20,000 are shown below.

Trustee Church Transaction/Terms £
Mr Nick Andrews Kendal URC Interest free loan to church 164,000

This loan has since been settled post year end

Page 34

8. Gains on Investments

Realised loss on investments sold
Gains previously recognised
Net gain in the year on investments sold
Unrealised gains/(losses) on investments for th
Net Gains/(Losses) on Investments for the Year
9. Movement in Funds
Unrestricted
General Purposes
Chapel Street (Southport)
Leverhulme
Unrestricted Designated
Training
Church Grants
Manse
Closed Churches
Missional Partnership
Total Designated Funds
Total Unrestricted Funds
Restricted
Church Property
Welfare
Graveyards
Stainton
Redwing
Great Salkeld
Fletcher Trust
Furlough Grant
Total Restricted Funds
Endowed
Capital
Church Property
Ministries
Leverhulme
Stainton
Redwing
Total Endowed Funds
Total Funds		 2021
2020
£
£
(14,223)
-
-
(14,223)
-
e year
520,978
(211,249)

506,755
(211,249)
Opening Balance
at 1st January
2021
Income
Expenditure
Transfers
Other
Movements
Closing Balance at
31st December
2021
Error Check
4,023,865
2,054,380
(1,209,112)
(3,788)
8,389
4,873,733
8,151
(2)
7,014
-
(63,668)
56,655
(1)
1
8,149
1
-
2
-
8,152
(1)
4,032,013
2,061,395
(1,209,112)
(67,455)
65,044
4,881,884
4,881,884
(1)
48,974
-
(69,874)
69,875
-
48,973
0
437,164
165,000
(350,571)
-
-
251,593
0
10,995,071
12,750
(243,659)
-
1,187,762
11,951,924
0
266,527
-
(46,059)
-
(2,435)
218,034
0
7,935
86,967
(102,317)
-
-
(7,415)
0
11,755,671
264,717
(812,480)
69,875
1,185,327
12,463,109
12,463,109
(0)
15,787,684
2,326,112
(2,021,592)
2,420
1,250,371
17,344,993
0
63,574
314
(2,862)
860
-
61,886
0
32,577
677
(2,577)
-
5,439
36,116
0
-
129
(15,798)
14,628
1,041
(0)
0
3,335
0
-
4
-
3,339
0
8,041
1
-
642
-
8,684
0
3,021
0
-
-
-
3,021
0
134,791
16
-
-
-
134,807
0
-
12,813
-
(12,813)
-
-
0
245,339
13,950
(21,237)
3,321
6,480
247,853
247,853
(0)
205,360
3,113
-
(3,113)
24,954
230,314
0
56,749
860
-
(860)
8,974
65,723
0
73,855
1,120
-
(1,120)
6,896
80,751
0
21,202
3
-
(3)
-
21,202
0
33,136
4
-
(4)
-
33,136
0
18,509
642
-
(642)
2,572
21,081
0
408,811
5,742
-
(5,742)
43,396
452,207
452,207
-
16,441,834
2,345,804
(2,042,830)
(0)
1,300,247
18,045,053
18,045,054
(1)

For a description of the funds and their purposes, see note 18.

Funds which have been registered as a separate charity with the Charity Commission are marked with an * above

Transfers between funds:-

Graveyard fund is now closed and any transfer are to clear to zero. Endowed Funds - income from investments moved to Unrestricted Funds

Page 35

10. Prior Year Funds Movement

Unrestricted
General Purposes
Chapel Street (Southport)
Leverhulme
Total Unrestricted Funds
Unrestricted Designated
Training
Church Grants
Manse
Closed Churches
Missional Partnership
Total Designated Funds
Total Unrestricted Funds
Restricted
Church Property
Welfare
Graveyards
Stainton
Redwing
Great Salkeld
Fletcher Trust
Furlough Grant
Total Restricted Funds
Endowed
Capital
Church Property
Ministries
Leverhulme
Stainton
Redwing
Total Endowed Funds
Total Funds		 Opening Balance
at 1st January
2020
Income
Expenditure
Transfers
Other
Movements
Closing Balance at
31st December
2020
Error Check
4,903,391
238,784
(798,041)
(194,587)
(125,682)
4,023,865
0
37,163
8,225
(732)
(18,810)
(25,848)
(2)
0
8,074
21
-
54
-
8,149
0
4,948,628
247,030
(798,773)
(213,343)
(151,530)
4,032,012
0
48,974
202
(76,796)
76,594
-
48,974
0
425,647
-
(95,470)
106,987
-
437,164
0
10,299,855
106,710
(212,736)
-
801,242
10,995,071
0
180,937
55,627
-
29,963
-
266,527
0
-
81,020
(73,085)
-
-
7,935
0
10,955,413
243,559
(458,087)
213,544
801,242
11,755,671
0
15,904,041
490,589
(1,256,860)
201
649,712
15,787,683
0
228,289
1,563
(167,331)
1,053
-
63,574
0
35,916
1,113
(1,970)
-
(2,482)
32,577
0
-
134
(13,648)
13,989
(475)
-
0
3,242
8
-
85
-
3,335
0
7,496
19
-
526
-
8,041
0
3,013
8
-
-
-
3,021
0
134,448
343
-
-
-
134,791
0
-
8,955
-
(8,955)
-
-
0
412,404
12,143
(182,949)
6,698
(2,957)
245,339
0
Opening Balance
at 1st January
2020
Income
Expenditure
Transfers
Other
Movements
Closing Balance at
31st December
2020
Error Check
216,744
4,133
(322)
(3,810)
(11,385)
205,360
0
59,895
1,142
(89)
(1,053)
(3,146)
56,749
0
77,950
1,480
(110)
(1,371)
(4,094)
73,855
0
21,202
54
-
(54)
-
21,202
0
33,136
85
-
(85)
-
33,136
0
17,434
526
-
(526)
1,075
18,509
0
426,361
7,420
(521)
(6,899)
(17,550)
408,811
0
16,742,806
510,152
(1,440,330)
-
629,205
16,441,833
0

Page 36

11. Tangible Fixed Assets

Cost or Valuation
At 1st January 2021
Additions at Cost
Additions at Valuation
Revaluation
Disposals
Transfer to Current Assets
At 31st December 2021
Depreciation
At 1st January 2021
Charge for year
Disposals
At 31st December 2021
Net Book Value at 31-Dec-21
Net Book Value at 31-Dec-20		 General Fund (Unrestricted)
Manse Fund
(Designated)
Total
Computers
Office Equipment
Motor Vehicles
Buildings
Total
Unrestricted
Properties
31,865
3,448
-
384,480
419,793
9,928,035
10,347,828
-
-
23,263
308,668
331,931
615,774
947,705
-
-
-
-
-
-
-
-
-
-
(343,148)
(343,148)
1,063,184
720,036
-
-
(2,800)
-
(2,800)
-
(2,800)
-
-
-
-
-
(699,540)
(699,540)
31,865
3,448
20,463
350,000
405,776
10,907,453
11,313,229
17,769
2,510
-
-
20,279
-
20,279
14,096
938
-
-
15,034
-
15,034
-
-
-
-
-
-
-
31,865
3,448
-
-
35,313
-
35,313
-
-
20,463
350,000
370,463
10,907,453
11,277,916
14,096
938
-
384,480
399,514
9,928,035
10,327,549

All manses wholly or partly owned by the company were revalued by Lamb and Swift during 2018 and up to February 13th 2019, and the accounts used these revaluation figures for last year's accounts. In December 2020 the manses were revalued based on the annual inflation figure for the area.

12. Investments

At 1st January 2021
Purchases		 Castlefield
Investments
COIF Investment
Fund
Epworth
UK Equities
Total
3,899,250
18,508
-
208,050
4,125,808
-
-
208,409
-
208,409
-
-
(150,332)
(150,332)
-
-
(14,223)
(14,223)
473,806
2,572
34,477
10,128
520,983
4,373,056
21,080
242,886
53,623
4,690,645
Disposals
Realised gains/(losses) on disposal
Unrealised gains/(losses) on revaluation
At 31st December 2021

The company's investments are managed by Castlefield Investment Partners LLP under a discretionary management agreement. The funds are invested in a diversified portfolio of UK and overseas equities and fixed interest investments. The investments comply, as far as is practicable, with the United Reformed Church's guidelines on ethical investment.

Page 37

13. Programme Related Investments

Loans to local churches
Amounts falling due within one year
Amounts falling due after more than one year
Analysis of balances outstanding on loans made to churches:
Church
Purpose
Blackburn Ragged School
Related to 2020 losses
Blackburn Revidge Fold
Roof work
Blackford Bridge URC
Building repairs
Bolton le Sands
Related to 2020 losses
Bramhall
Related to 2020 losses
Chorley
Building Project
Chorlton
Manse Scheme - Property - building work
Elswick
Related to 2020 losses
Gatley
Related to 2020 losses
Halton
Building Project
Heald Green
Related to 2020 losses
Kendal
Building Project
Leyland
Manse Scheme - Projector
Lower Darwen
Related to 2020 losses
Macclesfield
Building Loan - Manse Scheme
Morecambe Sefton Road
Manse Scheme - Property - boiler
New Mills URC
Dry rot
Salford Chapel St & Hope
Basement floor
Shaw & Heyside
Bridging Loan
Silloth
Related to 2020 losses
St Annes on Sea
Manse Scheme - Property
Stockport Short Street
Related to 2020 losses
Wilmslow
Development
Windermere
Related to 2020 losses		 2021
2020
£
£
411,895
467,790
411,895
467,790
2021
2020
£
£
173,947
391,822
237,948
75,968
411,895
467,790
2021
2020
£
£
-
6,966
-
-
453
-
6,624
-
18,054
170,000
170,000
-
-
540
-
7,644
10,000
-
-
13,974
164,000
67,500
-
10,632
-
2,994
-
-
5,600
9,155
-
6,358
62,295
67,294
-
1,782
-
22,776
-
8,148
-
34,824
-
12,072
411,895
467,790

No interest was charged on loans in 2021.

Page 38

14. Debtors

Prepayments
Ministerial and lay training costs recoverable fr
Other costs recoverable from national URC and
Other debtors
15. Other Current Assets
Properties for disposal:
Opening Balance:
7 Primrose Avenue, Macclesfield
118 Windermere Road, Kendal
66 Caryl Road, Lythan St Annes
18 Ladymeadow Close, Bolton
15 Crossford Drive, Ladybridge, Bolton
34 Montgomery Way, Radcliffe, Manches
1 Highbank, Tintwistle, Glossop
Former Christ Church URC, Morecambe
Former Read URC
2K17 Darwen Bolton Road CC
2M37 Offerton CC
2J03 Brampton CC
Former Sedbergh URC
Total Opening Balance
Properties sold:
118 Windermere Road, Kendal
66 Caryl Road, Lythan St Annes
18 Ladymeadow Close, Bolton
15 Crossford Drive, Ladybridge, Bolton
34 Montgomery Way, Radcliffe, Manches
1 Highbank, Tintwistle, Glossop
2K17 Darwen Bolton Road CC
2M37 Offerton CC
7 Primrose Avenue
Union Maitland
Total Properties Sold
Transferred from fixed assets:
8 Ash Grove
1 Longridge Heath
7 Romney Road
Total Transferred from Fixed Assets
Revaluation:
8 Ash Grove
1 Longridge Heath
7 Romney Road
Total Revaluation
Additions:
2M31 Reddish
2L38 Salford Chapel Street & Hope
2K01 Accrington
2L41 Westhoughton
2L30 Patricroft
2K15 Cleveleys
Total Additions
Transfers of Net Benefit on Disposal to Clos
Total Transfers to Closed Churches Fund
Total Properties for Disposal		 2021
2020
£
£
131,183
58,807
om national URC
2,315
-
other Synods
221
8
-
10
133,719
58,825
2021
2020
Unrestricted
Designated
Total
Total
General
Purposes Fund
Manse Fund
Closed Churches
Fund
Total Designated
Funds
£
£
£
£
£
-
325,932
-
325,932
325,932
-
-
311,200
-
311,200
311,200
-
-
326,200
-
326,200
326,200
-
-
194,200
-
194,200
194,200
-
-
321,200
-
321,200
321,200
-
t
-
231,200
-
231,200
231,200
-
-
256,200
-
256,200
256,200
-
(104,200)
104,200
104,200
-
(76,737)
76,737
76,737
-
125,000
-
-
-
125,000
-
142,000
-
-
-
142,000
-
90,000
-
-
-
90,000
-
(55,627)
55,627
55,627
-
120,436
1,966,132
236,564
2,202,696
2,323,132
4,902,760
-
(311,200)
-
(311,200)
(311,200)
-
-
(326,200)
-
(326,200)
(326,200)
-
-
(194,200)
-
(194,200)
(194,200)
-
-
(321,200)
-
(321,200)
(321,200)
-
t
-
(231,200)
-
(231,200)
(231,200)
-
-
(256,200)
-
(256,200)
(256,200)
-
(125,000)
-
-
-
(125,000)
-
-
-
-
-
-
-
-
(325,932)
-
(325,932)
(325,932)
-
-
(142,000)
-
(142,000)
(142,000)
-
-
-
-
-
-
-
(125,000)
(2,108,132)
-
(2,108,132)
(2,233,132)
(3,629,160)
-
229,620
-
229,620
229,620
-
-
224,280
-
224,280
224,280
-
-
245,640
-
245,640
245,640
-
-
-
-
-
-
-
-
699,540
-
699,540
699,540
906,200
-
-
-
-
(23,620)
(23,620)
(23,620)
46,720
46,720
46,720
50,360
50,360
50,360
-
-
-
-
-
-
-
73,460
-
73,460
73,460
143,332
309,375
-
-
-
309,375
-
250,000
-
-
-
250,000
-
250,000
-
-
-
250,000
-
225,000
-
-
-
225,000
-
425,000
-
-
-
425,000
-
325,000
-
-
-
325,000
-
1,784,375
-
-
-
1,784,375
-
ed Churches Fund:
-
-
-
-
-
-
-
-
-
-
1,779,811
631,000
236,564
867,564
2,647,375
2,323,132

Since year end six properties held for disposal have sold at £2,388,190 - an increase of £690,190 against valuation.

Page 39

16. Creditors - Amounts Falling Due within One Year

Trade creditors
Accruals
Grants awarded, not yet paid
Deposits held for Inter-Synod Resource Sharing scheme
Local churches' investment income not yet paid out
Support for Ministers' Pension Fund
Other creditors
SMS Liability on Fixed Assets
17. Creditors - Amounts Falling Due after one year
Support for Ministers' Pension Fund		 2021
2020
£
£
34,098
55,377
67,368
20,331
42,887
12,145
0
3
0
22,104
150,000
-
391
392
3,254,022
3,686,197
3,548,766
3,796,549
2021
2020
£
£
258,487
-
258,487
-

Note 18: Contingent Liability

The pension scheme for ministers is administered by the central United Reformed Church and is mainly funded from income received from local churches into the Ministry and Mission Fund. The last actuarial valuation of this pension fund took place at the end of 2020. This identified a significant accumulated deficit on the fund. During 2021 the Trust along with all other URC Trusts agreed to a comprehensive package to address this deficit.

The Trust has agreed to contribute £550,000 payable in four annual instalments, one of which was paid in this year with the other three instalments (at net present value) being included in note 16 and 17.

The Trust has given a commitment to the central United Reformed Church that, in the event that the actuarial valuation in 2024 demonstrates that it is necessary to provide additional financial support, they will contribute additional sums to the URC totalling £350,000 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 up to £290,000 over the period from 2028 to 2030.

Page 40

Company No. 1571090 Charity No. 511689

The United Reformed Church (North Western Province) Trust Limited

Notes to the Financial Statements Year Ended 31st December 2021

19. Disposition of Funds at 31st December 2021

Unrestricted
General Purposes
Chapel Street (Southport)
Leverhulme
Unrestricted Designated
Training
Church Grants
Manse
Closed Churches
Missional Partnership
Total Designated Funds
Total Unrestricted Funds
Restricted
Church Property
Welfare
Graveyards
Stainton
Redwing
Great Salkeld
Fletcher Trust
Total Restricted Funds
Endowed
Capital
Church Property
Ministries
Leverhulme
Stainton
Redwing
Total Endowed Funds
Total Funds		 Tangible Fixed
Assets
Investments
Programme
Related
Investments
Bank and Cash
Debtors
Other Current
Assets
Liabilities
Total
£
£
£
£
£
£
£
370,463
3,245,649
210,980
1,728,931
31,491
1,779,811
(2,493,592)
4,873,733
-
522,905
-
(522,905)
-
-
-
-
-
-
-
8,151
-
-
-
8,151
370,463
3,768,554
210,980
1,214,177
31,491
1,779,811
(2,493,592)
4,881,884
-
-
-
(2,910)
1,491
-
(200)
(1,619)
-
-
(10,632)
372,783
-
-
(110,557)
251,594
10,907,453
464,414
-
997,053
14,730
631,000
(1,157,003)
11,857,647
-
-
-
124,793
-
236,564
(1,324)
360,033
-
-
-
(90,553)
86,007
-
-
(4,546)
10,907,453
464,414
(10,632)
1,401,167
102,228
867,564
(1,269,084)
12,463,110
11,277,916
4,232,968
200,348
2,615,344
133,719
2,647,375
(3,762,675)
17,344,994
-
-
211,547
(105,083)
-
-
(44,578)
61,886
-
50,204
-
(14,091)
-
-
-
36,113
-
9,605
-
(9,605)
-
-
-
0
-
-
-
3,340
-
-
-
3,340
-
-
-
8,686
-
-
-
8,686
-
-
-
3,021
-
-
-
3,021
-
-
-
134,807
-
-
-
134,807
-
59,808
211,547
21,075
-
-
(44,578)
247,853
-
230,316
-
-
-
-
-
230,316
-
48,621
-
17,103
-
-
-
65,724
-
97,853
-
(17,103)
-
-
-
80,750
-
-
-
21,202
-
-
-
21,202
-
-
-
33,137
-
-
-
33,137
-
21,079
-
-
-
-
-
21,079
-
397,869
-
54,338
-
-
-
452,207
11,277,916
4,690,645
411,895
2,690,757
133,719
2,647,375
(3,807,253)
18,045,054

Page 41

19. Disposition of Funds at 31st December 2021 (Continued)

Details of Synod Funds:

The Synod operates the following funds:

Unrestricted Funds:

Apportionment Chapel Street Southport Fund – This fund was created when the former Lancashire Congregational Union apportioned its assets between the Synod and other bodies. It can be used for any Synod charitable purpose. It was used to finance all training in the Synod, and has now been exhausted.

General Purposes Fund – This fund is used for the general purposes of the Synod. It is financed by income from the investments, proceeds from the sale of redundant church buildings, contributions from local churches, grants from external bodies, legacies and donations.

Leverhulme Fund - This fund was transferred to the Synod by the Leverhulme Trust in 2011. It was treated as a designated fund in previous years' accounts. The Trust Management Committee applied to the Charity Commission to allow the fund to be used for the Synod’s general purposes, as its original purposes can no longer be fulfilled.

Designated Funds:

Church Grants Fund – This fund receives 50% of the net proceeds from the disposal of redundant church property. The Trust Management Committee uses it to make grants to churches for property and mission projects.

Training Fund – This is funded by grants from the national URC and other bodies, and transfers from the Synod’s Chapel Street Fund. It is used to pay for all ministerial and lay training in connection with the Synod’s charitable objects. Training of Synod office staff is treated as a governance cost, and is paid for from the General Fund. From 2022 this fund will be closed down and all training will be paid for through the General Fund.

Manse Fund – The Synod set up a Manse Fund in 2013, to hold manses used by the ministers of local churches and the Synod. From 2019 all manse properties (including those from local churches) were transferred to the Manse Fund at current valuation.

Closed Churches Fund - over recent years significant funds have been generated from the sale of closed churches. Whilst 50% and 10% of the net proceeds are allocated to the Grants Fund and Ministers Pension Fund respectively, it was considered important that these funds be identified seperately. This only shows the net gain after the church has been sold, and was started from 1st January 2019.

Missional Partnership Fund - this was set up in 1st January 2020, and monitors the costs and income from churches for the Missional Partnerships which are being established across the NW Synod.

Page 42

19. Disposition of Funds at 31st December 2021 (Continued)

Restricted Funds:

Church Property Fund – This fund holds assets which were apportioned to the Synod on the dissolution of the Lancashire Congregational Union. Income received by the Endowed Church Property Fund is also transferred to this fund. It is used to buy and maintain properties for use in furtherance of the Synod’s mission activities. Property grants to churches are also paid from this fund, but are usually financed by transfers from other Synod funds, especially the General Reserve Fund.

Welfare Fund – This fund holds cash which was apportioned to the Synod on the dissolution of the Lancashire Congregational Union. It is used to make Christmas payments to retired ministers and widows/widowers, and small welfare grants to individuals, at the Synod Moderator’s discretion.

Graveyards Fund – This fund holds the cash balance of the Deakin bequest, which is used for the maintenance of the graveyard of the former Belmont URC.

Stainton Fund – This fund’s charitable purposes can no longer be fulfilled, so the Trustees intend to apply to the Charity Commission to make the fund available for the Synod’s general purposes as soon as possible.

Redwing Fund – This fund is used to provide book grants to ministers and lay people in Cumbria. On examining the original governing document of the Redwing Trust in 2014, the Synod Trustees concluded that the Redwing Fund was a permanent endowment. The investments held by the fund are therefore now included in endowed funds, whilst the accumulated income is treated as a restricted fund.

Great Salkeld Fund – This fund was transferred from the United Reformed Church Trust in 2011. Its charitable purposes can no longer be fulfilled, so the Trustees intend to apply to the Charity Commission to make the fund available for the Synod’s general purposes.

19. Funds Held As Trustee For Local Churches Fletcher Trust Fund - This fund was transferred from private Trustees in 2015. Its funds can be spent on the URC's charitable purposes in Manchester and Trafford. It has been included in the Synod Trust's uniting declaration for the first time in 2017.

Furlough Fund - This fund was introduced by the Government to pay a % of the cost of salaries for staff who couldn't work during Covid. The fund is paid retrospectively from the Government for specific named employees.

Endowed Funds:

Apportioned funds - These funds were derived from the apportionment of assets of the former Lancashire Congregational Union: Endowed Capital Fund – this fund’s income is transferred to the General Fund.

Endowed Church Property Fund – this fund’s income is transferred to the Church Property Fund.

Endowed Ministries Fund – this fund’s income is transferred to the General Fund. The Trustees intend to apply to the Charity Commission to change the charitable purposes of this fund and make it expendable.

Other Endowed Funds:

Endowed Leverhulme Fund – the income from this fund can now be used for the Synod’s general purposes.

Endowed Stainton Fund - this fund’s charitable purposes can no longer be fulfilled, so the Trustees intend to apply to the Charity Commission to make the fund expendable and available for the Synod’s general purposes as soon as possible.

Endowed Redwing Fund – on examining the original governing document of the Redwing Trust in 2014, the Synod Trustees concluded that the Redwing Fund was a permanent endowment. The investments held by the fund are therefore now included in endowed funds, whilst the accumulated income is treated as a restricted fund.

Page 43

20. Funds Held As Trustee For Local Churches

The United Reformed Church (North Western Province) 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 North Western Synod (save 1) are held by the Trust. The Trust has no entitlement to any of the assets of the local church, including rental income, sale proceeds etc. and it has no responsibility for expenditure in relation to them.

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.

None of the assets (property, investments and cash deposits) held by the Trust as Trustee for local churches are included in these accounts. The amount of cash held by the Trust on behalf of local churches at 31st December 2021 was £1,843,405 (2020: £2,071,826).

Page 44

The United Reformed Church (North Western Province) Trust Limited

Company No. 1571090 Charity No. 511689

Notes to the Financial Statements Year Ended 31st December 2021

21. Comparative Analysis by Fund

The key components from the previous year's figures are analysed below by fund type:

21.1 Analysis of Total Operating Income and Expenditure

21.1.1 Income
21.1.1.1 Voluntary Income
Donations
Local Church Contributions
Grants
Legacies
Total Voluntary Income:
21.1.1.2. Charitable Activities
Fund Generation - Synod Sales
Total Charitable Activities:
21.1.1.3. Rent and Loan Interest
Rent Income
Loan Interest
Total Rent and Loan Interest:
21.1.1.4. Investment Income
Investment Income
Bank and Deposit Interest
Total Investment Income:
Total Operating Income:
21.1.1.5. Other Income
Cash Transferred from Closed Churches
Transfers from Local Churches to Manse Fund
Properties Transferred from Closed Churches
Profit on Disposal of Properties (Note 4)
Other income
Sale of Assets
Total Other Income:
Total Income:		 2020
Unrestricted
Designated
Restricted
Endowed
Total
Funds
Funds
Funds
Funds
Funds
£
£
£
£
£
25
202
240
-
467
98,460
-
-
-
98,460
-
-
8,955
-
8,955
-
-
-
-
-
98,485
202
9,195
-
107,882
-
-
-
-
-
-
-
-
-
-
-
5,269
-
-
5,269
3,000
-
1,898
-
4,898
3,000
5,269
1,898
-
10,167
65,338
7,436
1,073
6,755
80,602
3,850
5,501
(23)
665
9,993
69,188
12,937
1,050
7,420
90,595
170,673
18,408
12,143
7,420
208,644
41,242
-
-
-
41,242
-
8,675
-
-
8,675
-
-
-
-
-
34,829
135,456
-
-
170,285
286
81,020
-
-
81,306
-
-
-
-
-
76,357
225,151
-
-
301,508
247,030
243,559
12,143
7,420
510,152

Page 45

21.1.2 Expenditure
21.1.2.1. Expenditure on Raising Funds
Investment management costs 4,856 - 83 521 5,460
Goods purchased for resale 8 - - - 8
Shared indirect costs (note 3) 431 - - - 431
Total Expenditure on Raising Funds: 5,295 - 83 521 5,899
21.1 Analysis of Total Operating Income and Expenditure (Continued)
21.1.2.2. Expenditure on Charitable Activities:
Grants and Donations:
Local Church Property Grants -
6,184		 167,331 - 173,515
Local Church Mission Grants 192,388 91,786 - - 284,174
Local Church Grants - Other -
-		 - - -
Local URC Organisations - NW Pilots -
1,300		 - - 1,300
URC Grants - Ministers' Pension Fund Support 21,397 - - - 21,397
URC Grants - Ministry & Mission Fund -
-		 - - -
External Grants 12,500 - - - 12,500
Ecumenical County Subscriptions 10,803 - - - 10,803
Shared indirect costs (note 3) 21,031 68 - - 21,099
Total Grants and Donations: 258,119 99,338 167,331 - 524,788
Training:
Ministers 119 7,628 - - 7,747
Students -
5,138		 - - 5,138
Lay Training 90 373 - - 463
Children and Young People 600 97 - - 697
Children's and Youth Development Officer -
59,760		 - - 59,760
Mission Enabler -
-		 - - -
Other training 60 96 - - 156
Shared indirect costs (note 3) 77 50 - - 127
Total Training: 946 73,142 - - 74,088
Special Category Ministers:
Cumbria 677 - - - 677
Chorlton 5,536 - - - 5,536
Salford 94 - - - 94
Oldham 7,116 - - - 7,116
Shared indirect costs (note 3) 1,191 - - - 1,191
Total Special Category Ministers: 14,614 - - - 14,614
Office Salaries - Charitable Activities:
Staff salaries and employment costs 141,674 41,209 - - 182,883
Shared indirect costs (note 3) 12,567 28 - - 12,595
Total Office Salaries - Charitable Activities: 154,241 41,237 - - 195,478

Page 46

21.1.2.2. Expenditure on Charitable Activities: (continued)

Synod Office staff provide legal, financial and property services to local churches, in addition to their activities on behalf of the Synod itself. The provision of these services to local churches is one of the charitable objects of the Synod. Salaries and associated costs are therefore apportioned between governance costs and charitable activities, in the following proportions:

Governance Charitable
Costs Activities
Legal & Trust Officer 20% 80%
Finance Officer, Finance Clerk & Office Manager 50% 50%
Treasurer & Clerk 25% 75%
Communications and Business Support Officer 40% 60%
Post Covid Support Officer - 100%
Other employees 100% -
21.1 Analysis of Total Operating Income and Expenditure (Continued)
Property Costs:
Manse Fund - 184,375 - - 184,375
Other 25,599 - 13,635 - 39,234
Shared indirect costs (note 3) 2,271 126 - - 2,397
Total Property Costs: 27,870 184,501 13,635 - 226,006
Mission:
Mission 479 392 - - 871
Missional Discipleship 155,297 11 - - 155,308
Shared indirect costs (note 3) 13,818 - - - 13,818
Total Mission: 169,594 403 - - 169,997
Area Support:
Area Support 1,356 24 - - 1,380
Shared indirect costs (note 3) 120 - - - 120
Total Area Support: 1,476 24 - - 1,500
Other Charitable Expenditure:
Personal Expenses 4,770 20,220 - - 24,990
Welfare (80) - 1,900 - 1,820
Other Operating Expenses 3,429 11,279 - - 14,708
Shared indirect costs (note 3) 720 22 - - 742
Total Other Charitable Expenditure: 8,839 31,521 1,900 - 42,260
Total Charitable Expenditure: 635,699 430,166 182,866 - 1,248,731
21.1.2.3. Governance Costs
Staff Salaries and Employment Costs 87,032 - - - 87,032
Trustee Expenses 4,617 - - - 4,617
Committee and Staff Expenses 471 - - - 471
Interest payable on Manse Fund balances 27,671 27,671
Legal Fees 22,469 230 - - 22,699
Audit Fees 10,992 - - - 10,992
Consultancy Fees 16,236 - - - 16,236
Other Professional Fees 3,106 - - - 3,106
Shared indirect costs (note 3) 12,856 20 - - 12,876
Total Governance Costs: 157,779 27,921 - - 185,700

Page 47

21.2 Analysis of Indirect Costs

Indirect Costs:
Premises Costs:
Rent Payable
Property Repairs/ Decoration/ Refurbishment
Legal Fees
Other Property Expenses
Electricity
Gas
Total Premises Costs:
Office Expenses:
Printing & Stationery
Postage
Copier Charges
Books etc
Subscriptions
Telephone
Internet Access
Computer Hardware, Software & Consumables
Mobile Charges
Equipment Hire
Office Machine Maintenance
Office Equipment Repairs and Renewals
Cleaning
ICT Support
Online Backup
Office Provisions
Sundry Expenses
Health, Safety & Welfare
Recruitment Costs
Gifts
Storage Charges
Staff Training
Total Office Expenses:
Administration Costs:
Venue hire
Northern Synods Group
Conferences
Bank Charges
DCM Fees
Closed Churches - Professional Charges
Closed Churches - M&M
Closed Churches - Property Expenses
Closed Churches - Sundry Expenses
Furniture/Fitting Depreciation
Computer Depreciation
Insurances
Total Administration Costs:		 7,242
-
-
-
7,242
1,154
-
-
-
1,154
960
-
-
-
960
-
-
-
-
-
2,253
-
-
-
2,253
315
-
-
-
315
11,924
-
-
-
11,924
1,680
(14)
-
-
1,666
1,248
-
-
-
1,248
1,814
-
-
-
1,814
-
-
-
-
-
370
-
-
-
370
754
-
-
-
754
14
-
-
-
14
5,932
-
-
-
5,932
2,046
-
-
-
2,046
9
-
-
-
9
-
-
-
-
-
44
61
-
-
105
37
-
-
-
37
2,790
-
-
-
2,790
731
-
-
-
731
182
-
-
-
182
30
-
-
-
30
1,442
-
-
-
1,442
-
-
-
-
-
2,256
-
-
-
2,256
3,915
-
-
-
3,915
219
-
-
-
219
25,513
47
-
-
25,560
120
-
-
-
120
-
-
-
-
-
1,319
-
-
-
1,319
1,238
-
-
-
1,238
249
267
-
-
516
288
-
-
-
288
-
-
-
-
-
15,504
-
-
-
15,504
-
-
-
-
-
24
-
-
-
24
6,143
-
-
-
6,143
2,760
-
-
-
2,760
27,645
267
-
-
27,912

Page 48

21.2. Analysis of Indirect Costs (Continued)

Total Indirect Costs:
Apportionment of Indirect Costs:
Expenditure on Raising Funds:
Expenditure on Charitable Activities:
Grants
Training
SCM
Office Salaries - Charitable Activities
Property Costs
Mission
Area Support
Other Charitable Expenditure
Governance Costs:
Total apportioned
21.3 Profit on Disposal of Properties
Gains/(losses) on disposal of fixed asset property
Proceeds from church closures		 65,082
314
-
-
65,396
431
-
-
-
431
21,031
68
-
-
21,099
77
50
-
-
127
1,191
-
-
-
1,191
12,567
28
-
-
12,595
2,271
126
-
-
2,397
13,818
-
-
-
13,818
120
-
-
-
120
720
22
-
-
742
12,856
20
-
-
12,876
65,082
314
-
-
65,396
99,955
79,829
-
-
179,784
(65,126)
55,627
-
-
(9,499)
34,829
135,456
-
-
170,285

Page 49

Company No. 1571090 Charity No. 511689

The United Reformed Church (North Western Province) Trust Limited

Notes to the Financial Statements Year Ended 31st December 2021

22. Disposition of Funds at 31st December 2020

Unrestricted
General Purposes
Chapel Street (Southport)
Leverhulme
Unrestricted Designated
Training
Church Grants
Manse
Closed Churches
Missional Partnership
Total Designated Funds
Total Unrestricted Funds
Restricted
Church Property
Welfare
Graveyards
Stainton
Redwing
Great Salkeld
Fletcher Trust
Furlough Grant
Total Restricted Funds
Endowed
Capital
Church Property
Ministries
Leverhulme
Stainton
Redwing
Total Endowed Funds
Total Funds		 Tangible
Fixed Assets
Investments
Programme
Related
Investments
Bank and
Cash
Debtors
Other Current
Assets
Liabilities
Total
£
£
£
£
£
£
£
399,514
2,851,084
147,030
748,058
7,608
120,436
(249,865)
4,023,865
-
466,250
-
(466,252)
-
-
-
(2)
-
-
-
8,149
-
-
-
8,149
399,514
3,317,334
147,030
289,955
7,608
120,436
(249,865)
4,032,012
-
-
-
50,031
930
-
(1,986)
48,975
-
-
-
251,086
-
-
186,077
437,163
9,928,035
400,672
-
2,373,941
12,487
1,966,132
(3,686,197) 10,995,070
-
-
-
29,963
-
236,564
-
266,527
-
-
-
(29,865)
37,800
-
-
7,935
9,928,035
400,672
-
2,675,156
51,217
2,202,696
(3,502,106) 11,755,670
10,327,549
3,718,006
147,030
2,965,111
58,825
2,323,132
(3,751,971) 15,787,682
-
-
320,760
(212,608)
-
-
(44,578)
63,574
-
44,763
-
(12,186)
-
-
-
32,577
-
8,561
-
(8,561)
-
-
-
-
-
-
-
3,335
-
-
-
3,335
-
-
-
8,041
-
-
-
8,041
-
-
-
3,021
-
-
-
3,021
-
-
-
134,791
-
-
-
134,791
-
-
-
-
-
-
-
-
-
53,324
320,760
(84,167)
-
-
(44,578)
245,339
-
205,360
-
-
-
-
-
205,360
-
39,648
-
17,101
-
-
-
56,749
-
90,958
-
(17,103)
-
-
-
73,855
-
-
-
21,202
-
-
-
21,202
-
-
-
33,136
-
-
-
33,136
-
18,510
-
-
-
-
-
18,510
-
354,476
-
54,336
-
-
-
408,812
10,327,549
4,125,806
467,790
2,935,280
58,825
2,323,132
(3,796,549) 16,441,833

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