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2022-12-31-accounts

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 2022

Company Number: 1571090 Charity Number: 511689

THE UNITED REFORMED CHURCH (NORTH WESTERN PROVINCE) TRUST LIMITED ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31 2022

Contents Page
Reference & administration information 1
Trustees Annual Report 2 – 11
Independent Auditor’s Report 12 – 14
Statement of Financial Activities 15
Balance Sheet 16
Statement of Cash Flows 17
Notes to the Financial Statements 18 – 41

THE UNITED REFORMED CHURCH (NORTH WESTERN PROVINCE) TRUST LIMITED REFERENCE & ADMINISTRATIVE INFORMATION FOR THE YEAR ENDED DECEMBER 31 2022

Trustees & Directors
Professor C Whitehead Chair (from 19/3/22)
Revd M Aspinall Vice-Chair
N Andrews (Resigned 19/03/22)
G W Bell (Resigned 21/02/23)
N Carter
Revd C Downing (Appointed 01/06/23)
A Haigh
M T Hart Treasurer
J Skipworth (Appointed 22/02/23)
Revd B S Jolly (Resigned 22/11/22)
Clerk to the Synod T Hopley
& Company Secretary
Registered Office Synod Office
Unit 20, Sandpiper Quay
Waters Edge Business Park
Modwen Road
Salford M5 3EZ
Bankers National Westminster Bank plc
Spring Gardens
Manchester M60 2DB
Legal Advisers Slater Heelis LLP
Lloyds Bank Buildings
16 School Road,
Sale M33 7XP
Investment Managers Castlefield Investment Partners LLP
8th Floor, 111 Piccadilly
Manchester M1 2HY
Epworth Investment Management Ltd
9 Bonhill Street
London EC2A 4PE
Auditors MHA
Moorgate House
Silbury Boulevard
Central Milton Keynes MK9 1LZ

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THE UNITED REFORMED CHURCH (NORTH WESTERN PROVINCE) TRUST LIMITED TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED DECEMBER 31 2022

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 December 31, 2022. 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.

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.”

The Trust works with and on behalf of the North Western Synod of the United Reformed Church in order to enable it to meet its obligations under the acts governing the United Reformed Church and charity legislation. The funds under the control of Synod form part of these financial statements and detailed of the linked charities are given later in this report.

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:

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THE UNITED REFORMED CHURCH (NORTH WESTERN PROVINCE) TRUST LIMITED TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED DECEMBER 31 2022

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.

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.

Public benefit

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.

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 fifteen people. During 2022, the average number of full-time equivalents was eleven. Members of Synod Committees and others supporting and enabling Synod activities are only reimbursed for their travel and other expenses.

REVIEW OF THE YEAR

Support for Local Churches

Through the work of a group of volunteers from local churches and Missional Partnerships facilitating discussion and dialogue with local churches, the Synod has reviewed the activities and needs of local churches as they emerge from the restrictions caused by the Covid pandemic. As a follow-on to this, a more specific piece of work was undertaken to look at how the Synod could best use its financial resources to support local churches and to encourage those churches many of whom have significant reserves to invest in new opportunities for mission in their communities.

One part of the support for local churches is in the giving of grants, some to support the maintenance and improvement of church buildings but pleasingly this year has seen an increase in the amount being given to support mission development particularly around outreach work. A new initiative in 2022 was the offer of small grants (in this instance £1,000 each) to local churches with minimal bureaucracy. These grants were provided to local churches who were able simply to demonstrate a commitment to operate a Warm and Welcoming Space over the winter, as part of a national initiative to respond to the rise in energy costs for households and the cost-of-living crisis more broadly. Twenty-Six churches received grants for this initiative. The Synod Meeting in March 2023 agreed to extend the approach to support churches engaging with community organisations or seeking accreditation for work to address community needs.

Advice, Training and Pastoral Care for Ministers and Church Officers remained key elements of practical support provided by Synod Staff and Officers. In addition to the Learning and Development Officer and Children & Youth Development Officer, the Synod now employs a Mission Mentor working in each of our four areas. These Field Staff support Ministers and Local Churches in developing their understanding of mission and ministry in their local context and in developing practical actions to realise that understanding. A significant part of the funding for this investment in support for local churches comes from the use of monies released from the sale of closed church buildings across the Synod.

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THE UNITED REFORMED CHURCH (NORTH WESTERN PROVINCE) TRUST LIMITED TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED DECEMBER 31 2022

Through the use of its reserves, in response to the impact of the Covid pandemic the Synod provided significant financial support to churches in the payment of their agreed contributions to the national M&M fund. This 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. In addition, finance staff have supported churches in making claims under the provisions of their Insurance Policy for “Business” interruption caused by the Covid Pandemic. A total in excess of £900,000 has been received in total.

Closed Churches

Unfortunately, six local fellowships came to a decision to close their church during 2022. These were at:

We give thanks for the life and ministry of these congregations over many years of service.

At the time of writing one further fellowship has decided to close during 2023, with two pairs of churches having resolved to merge during the year.

These closures and the consequent sale of the redundant buildings are 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 Northwest.

Legacies of Slavery

In 2022, the URC General Assembly offered a confession and apology in response to the legacies of transatlantic slavery. In September, the NW Synod organised a very well received two day conference on legacies of slavery as the starting point for our work in carrying forward the confession and apology into local church communities.

Budget Working Group

During 2022, a Budget Working Group was established by the Synod Meeting to review the Synod’s budget and the associated decision-making process. The group included representatives of local churches as well as the Trust Management Committee and Synod Executive. The group reviewed all aspects of the budget which provided the basis for the budget plan for 2023. The group also reviewed the budget development and reporting processes and made a number of helpful recommendations which were accepted by the Synod Meeting in October.

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 for the Synod. Our self-assessment for accreditation was submitted to ARocha during 2022 and we were notified in early 2023 of the award of a Bronze Eco-Synod award, the second to achieve this.

To date 25 churches have received accreditation under the Eco-Church scheme, 10 at Silver level and 15 at Bronze.

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THE UNITED REFORMED CHURCH (NORTH WESTERN PROVINCE) TRUST LIMITED TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED DECEMBER 31 2022

Trust and Synod Relationship

During 2022, work commenced to review the relevant Governance responsibilities of the Trust and the North Western Synod of the United Reformed Church. The intention is to provide a greater clarity of the respective roles in matters relating particularly to Finance and Property based on the Trust’s primarily responsibility as a custodian of funds and building, and to reflect this separation more overtly in the Governance structures. Work has progressed well and is expected to be completed in 2023.

Changes in Staffing and Trustees

During 2022, Tracey Booth was appointed as the Legal and Trust Officer responsible for supporting the work and governance of the Trust; Peter Smith was appointed Finance Manager following the retirement of David Wyke.

In March 2022 Professor Christopher Whitehead took up the position of Chair of Trust.

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 2022 unrestricted fund operating income was £178,443 (2021, £179,934). Although realised investment income was lower than expected at £72,268, it represented an improvement on 2021. Investment values fell significantly during the year with a decrease in the overall value of the Trust’s investments of £600,019, offset in the SoFA by the net gains in properties held for resale of £659,357. In line with the recommendations of the budget working group, a guaranteed investment income approach has been adopted for 2023.

Total unrestricted general operating expenditure amounted to £1,019,769 (2021 £1,250,631). The main difference arises from the inclusion of £550,000 of contributions to the Ministers’ Pension Fund deficit in 2021, and changes to the accounting treatment for costs associated with closed churches which are now met from the Closed Churches designated fund.

Overall, the accounts show a deficit on unrestricted general funds of £3,092,369, after transfers to other funds of £1,666,498. Overall funds stand at £20,600,007.

Balance Sheet

The Balance Sheet continues to show a strong position with Unrestricted Income Funds (General and Designated) having a combined value of £20,041,042, an increase of £2,711,510 on the start of the year. Tangible Fixed Assets have grown during the year by £1,661,785, almost all as a result of the increase in value of manses reflecting the growth in residential properties during the year.

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.

In relation to financial and property risks, the Trust has agreed clear risk mitigation measures, for example savings deposits are mostly held in accounts covered by the government’s Financial Services Compensation Scheme.

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THE UNITED REFORMED CHURCH (NORTH WESTERN PROVINCE) TRUST LIMITED TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED DECEMBER 31 2022

The Synod’s investments are managed by independent specialists (Castlefield Investments and Epworth Investments) and are chosen to be low and medium risk and deposited with large 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.

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.

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).

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THE UNITED REFORMED CHURCH (NORTH WESTERN PROVINCE) TRUST LIMITED TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED DECEMBER 31 2022

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 2022 was -12.1% as compared with -9.6% 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-2022 was +5.2% as compared to +15.5% for the ARC Sterling Steady Growth Charity Index.

With respect to the investments with Epworth, 2022 proved to be a challenging 12 months for financial markets and investors, particularly those with an ethical mandate with the exclusion of oil and gas causing a significant drag on performance. The Trust moved its portfolio into a discretionary mandate in the final quarter of the year with Epworth now determining the most appropriate investment strategy for the trust’s needs. This has resulted in a broader range of asset classes and greater diversification of investments with the intention of optimising the risk return profile of the portfolio. The portfolio grew by 3.96% in the final quarter of the year vs a benchmark performance of 3.65%.

Reserves Policy

Note 23 to the Trust’s accounts provides details of the disposition of the Trust’s reserves. Unrestricted and designated reserves at the end of the year amounted to £20,041,042. A relatively small proportion (£558,965 out of £20,600,007) are held in Restricted or Endowed Funds. £12.94m 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.

The Trust’s Reserves Policy seeks to balance maintaining sufficient reserves to provide the income stream (budgeted at £200k for 2023) 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 (general and designated) 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 reserves at least double that amount, i.e., £3m. The free reserves (unrestricted funds not invested in fixed assets or otherwise designated) stood at £1,084,800 and designated funds not invested in fixed assets were £6,016,541. There is a commitment to use £1.2m p.a. over the next three years from the closed churches fund to support the budget.

Post Balance Sheet Events

On 1st March 2023, following decisions made by the United Reformed Church General Assembly in July 2022 and consultation with affected staff changes were implemented to the staff pension scheme. The scheme has changed from a Defined Benefit Scheme administered by TPT to a Defined Contribution Scheme administered by AON.

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THE UNITED REFORMED CHURCH (NORTH WESTERN PROVINCE) TRUST LIMITED TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED DECEMBER 31 2022

Fundraising regulations

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 Regulator. The Trust has not used anyone to fundraise on its behalf and has not had any complaints regarding fundraising.

FUTURE PLANS

The Trust has continued to deliver support services as custodian trustee and to facilitate the work of the Synod. In particular since the year end:

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 UNITED REFORMED CHURCH (NORTH WESTERN PROVINCE) TRUST LIMITED TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED DECEMBER 31 2022

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.

Constitution of Synod

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:

More details can be found on the Synod website (www.nwsynod.org.uk)

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 2022, 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 13. 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 32 to the accounts.

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THE UNITED REFORMED CHURCH (NORTH WESTERN PROVINCE) TRUST LIMITED TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED DECEMBER 31 2022

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 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.

Employees – pay and remuneration.

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.

In 2022, the Synod contributes to a staff pension scheme which is administered by TPT, its trustee. This is operated as a defined benefit scheme. During 2022, the Synod contributed 32.6% of pensionable salary in respect of members of the scheme. Members make a salary sacrifice of 7.5% of gross pay in exchange for an employer’s contribution to the pension scheme of the same amount. This forms part of the 32.6% quoted above.

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 32 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.

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.

CUSTODIAN TRUSTEE

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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THE UNITED REFORMED CHURCH (NORTH WESTERN PROVINCE) TRUST LIMITED TRUSTEES’ ANNUAL REPORT FOR THE YEAR ENDED DECEMBER 31 2022

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:

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:

AUDITORS

Following a rebranding exercise on 15 May 2023 the trading name of the company’s independent auditor changed from MHA MacIntyre Hudson to MHA.

In line with the principles of good governance the Trustees decided to retender for audit services for 2023 onwards, and the proposal for the appointment of auditors will be brought to the AGM.

SMALL COMPANY PROVISIONS AND APPROVAL

This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.

Approved by the Board of Trustees and signed on its behalf by:

J C Whitehead

Professor J C Whitehead Chair of Trust

Date: August 16 2023

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INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF THE UNITED REFORMED CHURCH (NORTH WESTERN PROVINCE) TRUST LIMITED FOR THE YEAR ENDED DECEMBER 31 2022

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 2022 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.

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.

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INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF THE UNITED REFORMED CHURCH (NORTH WESTERN PROVINCE) TRUST LIMITED FOR THE YEAR ENDED DECEMBER 31 2022

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.

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.

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INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF THE UNITED REFORMED CHURCH (NORTH WESTERN PROVINCE) TRUST LIMITED FOR THE YEAR ENDED DECEMBER 31 2022

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulations. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, 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.

Elizabeth Newell

Elizabeth Newell BA(Hons), FCA (Senior Statutory Auditor) For and on behalf of MHA (Statutory Auditor) Milton Keynes, United Kingdom Date: August 18 2023

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

14

THE UNITED REFORMED CHURCH (NORTH WESTERN PROVINCE) TRUST LIMITED STATEMENT OF FINANCIAL ACTIVITIES (including the income and expenditure account) FOR THE YEAR ENDED DECEMBER 31 2022

Notes
Unrestricted Funds
General
Designated
£
£
Incoming resources
from generated funds:
Donations
2
83,934
100,539
Charitable activities
3
1,654
18,000
Other trading income
4
20,587
-
Investment income
5
72,268
-
Other income
6
-
2,524,490
TOTAL INCOME
178,443
2,643,029
EXPENDITURE
Costs of generating
funds
7
19,879
-
Charitable activities
8
999,890
533,340
TOTAL EXPENDITURE
1,019,769
533,340
Net gains/(losses)
on investments
12
(542,544)
659,357
NET INCOME/
(EXPENDITURE)
(1,383,870)
2,769,046
Transfers between funds 23
(1,666,498)
1,670,706
OTHER RECOGNISED
GAINS/(LOSSES)
Revaluation of fixed
assets
15
(42,001)
1,364,127
NET MOVEMENT IN
FUNDS
23
(3,092,369)
5,803,879
BROUGHT FORWARD
23
4,688,422
12,641,110
CARRIED FORWARD
23
1,596,053
18,444,989		 Notes
Unrestricted Funds
General
Designated
£
£
Incoming resources
from generated funds:
Donations
2
83,934
100,539
Charitable activities
3
1,654
18,000
Other trading income
4
20,587
-
Investment income
5
72,268
-
Other income
6
-
2,524,490
TOTAL INCOME
178,443
2,643,029
EXPENDITURE
Costs of generating
funds
7
19,879
-
Charitable activities
8
999,890
533,340
TOTAL EXPENDITURE
1,019,769
533,340
Net gains/(losses)
on investments
12
(542,544)
659,357
NET INCOME/
(EXPENDITURE)
(1,383,870)
2,769,046
Transfers between funds 23
(1,666,498)
1,670,706
OTHER RECOGNISED
GAINS/(LOSSES)
Revaluation of fixed
assets
15
(42,001)
1,364,127
NET MOVEMENT IN
FUNDS
23
(3,092,369)
5,803,879
BROUGHT FORWARD
23
4,688,422
12,641,110
CARRIED FORWARD
23
1,596,053
18,444,989		 Notes
Unrestricted Funds
General
Designated
£
£
Incoming resources
from generated funds:
Donations
2
83,934
100,539
Charitable activities
3
1,654
18,000
Other trading income
4
20,587
-
Investment income
5
72,268
-
Other income
6
-
2,524,490
TOTAL INCOME
178,443
2,643,029
EXPENDITURE
Costs of generating
funds
7
19,879
-
Charitable activities
8
999,890
533,340
TOTAL EXPENDITURE
1,019,769
533,340
Net gains/(losses)
on investments
12
(542,544)
659,357
NET INCOME/
(EXPENDITURE)
(1,383,870)
2,769,046
Transfers between funds 23
(1,666,498)
1,670,706
OTHER RECOGNISED
GAINS/(LOSSES)
Revaluation of fixed
assets
15
(42,001)
1,364,127
NET MOVEMENT IN
FUNDS
23
(3,092,369)
5,803,879
BROUGHT FORWARD
23
4,688,422
12,641,110
CARRIED FORWARD
23
1,596,053
18,444,989		 Restricted
Funds
£
2,476
14,500
4,288
1,468
-		 Endowment
Funds
£
-
-
-
5,899
-		 as restated
Total
Total
2022
2021
£
£
186,949
367,741
34,154
31,502
24,875
24,327
79,635
66,062
2,524,490
1,884,855
178,443 2,643,029 22,732 5,899 2,850,103
2,374,487
19,879
999,890		 -
533,340		 -
115,924		 -
-		 19,879
9,896
1,649,154
2,089,970
1,019,769
(542,544)		 533,340
659,357		 115,924
(4,637)		 -
(52,838)		 1,669,033
2,099,866
59,338
580,214
(1,383,870)
(1,666,498)
(42,001)		 2,769,046
1,670,706
1,364,127		 (97,829)
1,691
-		 (46,939)
(5,899)
-		 1,240,408
854,835
-
-
1,322,126
720,033
(3,092,369)
4,688,422		 5,803,879
12,641,110		 (96,138)
255,734		 (52,838)
452,207		 2,562,534
1,574,868
18,037,473
16,462,605
1,596,053 18,444,989 159,596 399,369 20,600,007
18,037,473

The notes on pages 18 to 41 form part of these financial statements.

15

THE UNITED REFORMED CHURCH (NORTH WESTERN PROVINCE) TRUST LIMITED BALANCE SHEET AS AT DECEMBER 31 2022

Notes
2022
£
FIXED ASSETS
Tangible fixed assets
15
Investments
16
Programme related investments
17
DEBTORSdue in more than one year
18
CURRENT ASSETS
Debtors
19
586,361
Investments
20
2,269,630
Cash at Bank and in Hand
3,268,317
6,124,308
CREDITORS
Amounts falling due in one year
21
2,917,755
NET CURRENT ASSETS
CREDITORSamounts falling
due in more than one year
22
NET ASSETS
FUNDS
Revaluation reserve
24
2,741,581
Other unrestricted reserves
17,299,461
Unrestricted
23
Restricted
23
Endowment
23
TOTAL FUNDS		 Notes
2022
£
FIXED ASSETS
Tangible fixed assets
15
Investments
16
Programme related investments
17
DEBTORSdue in more than one year
18
CURRENT ASSETS
Debtors
19
586,361
Investments
20
2,269,630
Cash at Bank and in Hand
3,268,317
6,124,308
CREDITORS
Amounts falling due in one year
21
2,917,755
NET CURRENT ASSETS
CREDITORSamounts falling
due in more than one year
22
NET ASSETS
FUNDS
Revaluation reserve
24
2,741,581
Other unrestricted reserves
17,299,461
Unrestricted
23
Restricted
23
Endowment
23
TOTAL FUNDS		 as restated
as restated
2022
2021
2021
£
£
£
12,939,701
11,277,916
4,547,859
4,675,645
-
411,895
17,487,560
16,365,456
57,920
-
169,719
2,647,375
2,713,637
5,530,731
3,558,714
3,206,553
1,972,017
20,752,033
18,337,473
152,026
300,000
20,600,007
18,037,473
1,549,057
15,780,475
20,041,042
17,329,532
159,596
255,734
399,369
452,207
20,600,007
18,037,473
6,124,308
2,917,755
2,741,581
17,299,461

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The notes on pages 18 to 41 form part of these financial statements

Approved by the Board of Trustees and authorised for issue on: August 16 2023

And signed on their behalf by:

J C Whitehead

Prof Christopher Whitehead – Chair of the Board

Company registration number: 1571090

16

THE UNITED REFORMED CHURCH (NORTH WESTERN PROVINCE) TRUST LIMITED STATEMENT OF CASHFLOWS FOR THE YEAR ENDED DECEMBER 31 2022

Notes
Cash used in operating activities
29
Cashflows from investing activities
Investment income
Proceeds of disposal of current asset investment
Proceeds of sale of fixed assets
Purchase of tangible fixed assets
Withdrawals from investments
Purchase of investments, cash & gains reinvested
Cash provided by/(used in) investing activities
Cashflows from financing activities
Cash outflow from new loans
New finance lease
Repayment of Finance lease
Repayment of loans from churches
Cash used in financing activities
Increase/(decrease) in cash & cash equivalents in the year
Cash and cash equivalents brought forward
Cash and cash equivalents carried forward
Cash and cash equivalents consist of:
Cash at bank and in hand		 2022
£
(1,751,347)
79,635
2,888,483
252,573
(619,660)
83,467
(555,700)
2,128,798
-
3,147
(439)
174,521
177,229
554,680
2,713,637
3,268,317
3,268,317
3,268,317		 as restated
2021
£
(1,933,811)
66,062
-
2,574,392
(947,705)
150,332
(193,409)
1,649,672
(106,500)
-
162,396
55,896
(228,243)
2,941,880
2,713,637
2,713,637
2,713,637

The notes on pages 18 to 41 form part of these financial statements

17

THE UNITED REFORMED CHURCH (NORTH WESTERN PROVINCE) TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31 2022

1 ACCOUNTING POLICIES

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 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.

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.

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.

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.

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.

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:

The Trust is not registered for VAT, and where VAT is incurred it is charged as an expense against the activity for which expenditure arose.

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.

Support cost 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.

18

THE UNITED REFORMED CHURCH (NORTH WESTERN PROVINCE) TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31 2022

1 ACCOUNTING POLICIES (continued)

Tangible fixed assets and depreciation

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 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 Cars provided for Ministers 1/4 of purchase price in each of the first four years since purchase.

I nvestments

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 previously included loans to local churches but following a review of the nature of these loans they have been reclassified as debtors due in one year and more than one year, as this better reflects the nature of the relationship with the churches. Loans are stated at cost less repayments and are reviewed for impairment.

The Trust’s Investment policy is set out in the of the Trustees’ Annual Report.

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.

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.

Pension contributions

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.

Government and other 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.

Critical accounting estimates and judgments

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:

19

THE UNITED REFORMED CHURCH (NORTH WESTERN PROVINCE) TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31 2022

2 DONATIONS
Local Church Contributions
Missional Partnership contribution
Donations - Macedonia Mission Project
Donations
As restated:
Local Church Contributions
Missional Partnership contribution
Donations - Macedonia Mission Project
Donations
Grant - Ian Wallace Fund
HMRC - CJRS grant		 Unrestricted
General
Designated
Restricted
Endowment
Total
2022
2022
2022
2022
2022
£
£
£
£
£
81,588
-
-
-
81,588
-
100,539
-
-
100,539
-
-
2,476
2,476
2,346
-
-
-
2,346
83,934
100,539
2,476
-
186,949
2021
2021
2021
2021
2021
£
£
£
£
£
92,340
-
-
-
92,340
-
86,967
-
-
86,967
-
-
1,941
-
1,941
8,680
-
-
-
8,680
-
165,000
-
-
165,000
-
12,813
-
12,813
101,020
251,967
14,754
-
367,741

3 INCOME FROM CHARITABLE ACTIVITIES

Rent of manse for moderator
Grants from National URC:
University Chaplaincy
Discipleship Development Fund
Sale of resources & other income
Total
As restated:
Rent of manse for moderator
Grants from National URC:
University Chaplaincy
Sale of resources & other income		 Unrestricted
General
Designated
Restricted
Endowment
Total
2022
2022
2022
2022
2022
£
£
£
£
-
18,000
-
-
18,000
-
-
12,500
-
12,500
-
-

2,000
-
2,000
1,654
-
-
-
1,654
1,654
18,000
14,500
-
34,154
2021
2021
2021
2021
2021
£
£
£
£
-
18,000
-
-

18,000
-
-
12,500
-
12,500
1,002
-
-
-
1,002
1,002
18,000
12,500
-
31,502

20

THE UNITED REFORMED CHURCH (NORTH WESTERN PROVINCE) TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31 2022

4 OTHER TRADING INCOME
Rent income - Oasis
Macedonia room hire and fundraising
Other rent
As restated:
Rent income - Oasis
Macedonia room hire and fundraising
Loan interest		 Unrestricted
Restricted
Total
2022
2022
2022
£
£
£
20,517
-
20,517
-
4,288
4,288
70
-
70
20,587
4,288
24,875
2021
2021
2021
£
£
£
21,667
-
21,667
-
2,358
2,358
-
302
302
21,667
2,660
24,327

Unrestricted

Unrestricted
5 INVESTMENT INCOME
Income from fixed asset investments
Interest on loans
Bank interest
Income from fixed asset investments
Bank interest
6 OTHER INCOME
Transferers from closed churches:
Funds
Properties
Transferers from closed churches:
Funds
Properties
Profit/(Loss) disposal of properties
Other Income		 General
Designated
Restricted
Endowment
Total
2022
2022
2022
2022
2022
£
£
£
£
£
71,173
-
460
5,346
76,979
205
-
-
-
205
890
-
1,008
553
2,451
72,268
-
1,468
5,899
79,635
2021
2021
2021
2021
2021
£
£
£
£
£
47,545
6,072
808
5,094
59,519
2,583
3,284
28
648
6,543
50,128
9,356
836
5,742
66,062
2022
2022
2022
2022
2022
£
£
£
£
£
-
673,109
-
-
673,109
-
1,851,381
-
-
1,851,381
-
2,524,490
-
-
2,524,490
2021
2021
2021
2021
2021
£
£
£
£
£
99,961
-
-
-
99,961
1,784,375
-
-
-
1,784,375
(2,923)
3,394
-
-
471
48
-
-
-
48
1,881,461
3,394
-
-
1,884,855

21

THE UNITED REFORMED CHURCH (NORTH WESTERN PROVINCE) TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31 2022

Unrestricted

Unrestricted
7 COSTS OF GENERATING FUNDS
Investment management charges
Support costs
As restated:
Investment management charges
Support costs
8 CHARITABLE EXPENDITURE
Grants (note 9)
Other charitable expenditure (note 10)
As restated:
Grants (note 9)
Other charitable expenditure (note 10)		 General
Designated
Designated Endowment
Total
2022
2022
2022
2022
2022
£
£
£
£
£
608
-

-
-
608
19,271
-

-
-
19,271
19,879
-

-
-
19,879
2021
2021
2021
2021
2021
£
£
£
£
772
-

-
-
772
9,124
-

-
-
9,124
9,896
-

-
-
9,896
2022
2022
2022
2022
2022
£
£
£
£
£
152,399
73,932
110,451
-
336,782
847,491
459,408
5,473
-

1,312,372
999,890
533,340
115,924
-
1,649,154
2021
2021
2021
2021
2021
£
£
£
£
£
631,091
407,429
12,500
-

1,051,020
609,644
405,051
24,255
-
1,038,950
1,240,735
812,480
36,755
-
2,089,970

22

THE UNITED REFORMED CHURCH (NORTH WESTERN PROVINCE) TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31 2022

9 GRANTS

GRANTS
Unrestricted
General Designated Restricted Endowment Total
2022 2022 2022 2022 2022
£ £ £ £ £
Grants:
Local Church Property grants 75,071 16,599 43,951 - 135,621
Local Mission grants - 57,333 54,000 - 111,333
Local URC NW pilots 1,300 -
 - - 1,300
External grants 41,996 -
 12,500 - 54,496
Ecumenical County subscriptions 3,883 - - -
 3,883
Support costs 30,149 - - -
 30,149
152,399 73,932 110,451 -
 336,782
As restated:
Grants:
Local Church Property grants
Local Mission grants
Local URC NW pilots
URC grant - Ministers' Pension Fund
URC grant - Ministry & Mission Fund
External grants
Ecumenical County subscriptions
Support costs		 2021
2021
2021
2021
2021
£
£
£
£
£
-
34,050
-
-
34,050
-
292,399
-
-
292,399
-

1,300
-
-
1,300
550,000
-
-
-
550,000
1,652
38,376
-

-
40,028
18,840
24,123
12,500
-
55,463

5,773
-
-
-
5,773

54,826
17,181

-
-
72,007
631,091
407,429
12,500
-
1,051,020

23

THE UNITED REFORMED CHURCH (NORTH WESTERN PROVINCE) TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31 2022

9 GRANTS (continued)

2021
Grand
Total
£
1,275
-
4,515
1,122
1,518
-
7,590
8,765
10,218
-
-
-
5,111
-
12,062
3,906
-
-

-

-
3,443
1,677
6,143
24,072
1,982
62,125
8,065
-
-
-
1,500
-
2,994
 168,083
2021
2021
2021
2021
Mission
M&M
Mission
Total
Property
£
£
£
£
1,275
-
1,275
-
-
-
-
-
4,515
-
4,515
-
1,122
-
1,122
-
1,518
-
1,518
-
-
-
-
-
-
-
-
7,590
5,765
3,000
8,765
-
10,218
-
10,218
-
-
-
-
-
-
-
-
-
-
-
-
-
5,111
-
5,111
-
-
-
-
-
10,062
2,000
12,062
-
3,906
-
3,906
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
3,443
-
3,443
-
1,677
-
1,677
-
6,143
-
6,143
-
3,072
-
3,072
21,000
1,982
-
1,982
-
5,160
56,965
62,125
-
8,065
-
8,065
-
-
-
-
-
-
-
-
-
-
-
-
-
1,500
-
1,500
-
-
-
-

-
2,994
-
2,994
-		 77,528

61,965
139,493
28,590
2022
Grand
Total
£
-
1,000
-
-
-
1,000
50,000
-
-
1,000
1,000
1,000
-
1,000
12,598
-
1,000
1,000
1,000
1,000
-
-
-
-
-
1,000
-
1,100
1,000
420
-
1,000
-		 77,118
2022
Property
£
-
-
-
-
-
-
50,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-

-
-
420
-
-
-		 50,420
2022
Mission
Total
£
-
1,000
-
-
-
1,000
-
-
-
1,000
1,000
1,000
-
1,000
12,598
-
1,000
1,000
1,000
1,000
-

-

-

-
-
1,000
-
1,100
1,000
-
-
1,000
-		 26,698
2022
2022
Mission
Warm Hub
£
£
-

-
-

1,000
-

-
-

-
-

-
-

1,000
-

-
-

-
-

-
-

1,000
-

1,000
-

1,000
-

-
-

1,000
11,598
1,000
-
-
-
1,000
-
1,000
-
1,000
-
1,000
-
-
-
-
-
-
-
-
-
-
-
1,000
-
-
1,100
-
-
1,000
-
-
-
-

-
1,000
-
-		 12,698
14,000
Analysis of URC grants:
Bewcastle URC
St George's URC, Carlisle
Cockermouth URC
Harrington URC
St Andrew's URC, Silloth
Whitehaven URC
Dalton In Furness
Kendal URC
Revidge Fold URC
Revidge Fold URC
Trinity URC, Blackburn
Blackburn, Westbury Gardens
Bispham URC
Marton URC
Chorley URC
Cleveleys URC
Cleveleys URC
Clitheroe URC
Central URC, Darwen
Elswick Memorial URC
Fleetwood URC
Forton
Garstang
Halton URC
Hambleton URC
Leyland URC
Sefton Road URC, Morecambe
Preesall, Bethel
St Annes On Sea URC
Trinity URC, Lower Darwen
Adlington URC/ Methodist Church
Charlestown URC
Hurst Nook URC
Subtotal c/f

24

THE UNITED REFORMED CHURCH (NORTH WESTERN PROVINCE) TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31 2022

9 GRANTS (continued)

2021
Grand
Total
168,083
4,851
5,904
3,402
3,450
10,800
4,358
3,134
5,270
366
-
14,327
2,652
4,284
1,181
1,294
7,601
519
2,716
-

-
5,608
-

5,382
3,824
2,576
1,372
3,100
384
327
2,566
-
53,918
-
3,000
200		 326,449
2021
2021
2021
2021
Mission
M&M
Mission
Total
Property
77,528
61,965
139,493
28,590
4,851
-
4,851
-
1,644
-
1,644
4,260
3,402
-
3,402
-
3,450
-
3,450
-
9,600
-
9,600
1,200
4,358
-
4,358
-
3,134
-
3,134
-
5,270
-
5,270
-
366
-
366
-
-
-
-
-
14,327
-
14,327
-
2,652
-
2,652
-
4,284
-
4,284
-
1,181
-
1,181
-
1,294
-
1,294
-
7,601
-
7,601
-
519
-
519
-
2,716
-
2,716
-
-
-
-
-
-
-
-
-
5,608
-
5,608
-
-
-
-
-
5,382
-
5,382
-
3,824
-
3,824
-
2,576
-
2,576
-
1,372
-
1,372
-
-
3,100
3,100
-
384
-
384
-
327
-
327
-
2,566
-
2,566
-
-
-
-
-
-
53,918
53,918
-
-
-
-

-
-
3,000
3,000
-
-
200
200
-		 170,216
122,183
292,399
34,050
2022
Grand
Total
77,118
-
-
-
-
15,835
-
-
-
-
1,000
-
-
-
-
-
-
-
-
1,000
1,000
-
1,000
50,000
-
42,250
-
-
-
-
-
46,951
1,000
10,000
-
(200)		 246,954
2022
Property
50,420
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
41,250
-
-
-
-
-
43,951
-

-
-

-
 135,621
2022
Mission
Total
26,698
-
-
-
-
15,835
-
-
-
-
1,000
-
-
-
-
-
-
-

-
1,000
1,000
-
1,000
50,000
-

1,000
-

-

-
-
-
3,000
1,000
10,000
-
(200)		 111,333
2022
2022
Mission
Warm Hub
12,698
14,000
-

-
-

-
-

-
-

-
15,835
-
-

-
-

-
-

-
-

-
d
-

1,000
C
-

-
-

-
-

-
-

-
-

-
-

-
-
-
-
-
-
1,000
-
1,000
-
-
-
1,000
50,000
-
-
-
-
1,000
-
-
-
-
-
-
-
-
-
-
-
3,000
-
1,000
10,000
-
-
-
(200)
-		 88,333
23,000
Analysis of URC grants:
Subtotal b/f
Bank Top URC
Breightmet Red Lane
Egerton URC
Deane URC
Rose Hill URC
Besses O' Th' Barn URC
Blackford Bridge URC
Littleborough URC
Christ Church Lep, Little Lever
Beulah Community Church, Hollinwoo
Oldham - Shaw (1976) & Heyside UR
Dundee URC, Ramsbottom
Hallfold URC, Whitworth
St Andrew's Methodist & URC
Chapel Street & Hope URC
Worsley Rd URC, Swinton
Wharton
Ashton-On-Mersey URC
Bramhall URC
Chorlton Central LEP
Christ Church URC, S Manchester
Heald Green URC
Levenshulme Inspire URC
Marple Bridge URC
Providence URC
St Paul's With St John's, Manchester
Christ Church URC, Reddish
St Peter's Church, Manchester
Whaley Bridge Uniting Church
George Lane URC, Woodley
Dandelion Community Wythenshawe
Oasis Centre
Bolton & Salford Mission Partnership
Holiday Forum
LGBT Wellbeing Group
Total for the year

25

THE UNITED REFORMED CHURCH (NORTH WESTERN PROVINCE) TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31 2022

Unrestricted Unrestricted
General Designated Restricted Endowment Total
£ £ £ £ £
**9 ** GRANT GIVING (continued) 2022 2022 2022 2022 2022
External grants
St Peter House - University Chaplaincy 17,500 - 12,500 - 30,000
The Western Dales Mission Community 15,869 - - - 15,869
Church Action on Poverty 7,000 - - - 7,000
Holiday Forum 3,000 - - - 3,000
Eco Church 400 - - - 400
Northern Synod - returned portion (1,773) - - - (1,773)
41,996 - 12,500 - 54,496
2021 2021 2021 2021 2021
St Peter House - University Chaplaincy 12,500 - 12,500 - 25,000
The Western Dales Mission Community - 24,123 - - 24,123
Northern Synod 6,340 - - - 6,340
18,840 24,123 12,500 - 55,463
**10 ** OTHER CHARITABLE EXPENDITURE 2022 2022 2022 2022 2022
Training 211,324 48,975 2,000 - 262,299
Special Categories Ministry 13,929 - - - 13,929
Manse costs - 220,021 - - 220,021
Closed churches costs 4,252 68,956 - - 73,208
Other property costs 37,999 - - - 37,999
Missional Partnership - 121,456 - - 121,456
Synod M&M contributions 130,137 - - - 130,137
Personal and welfare 1,755 - - - 1,755
Macedonia costs - - 3,473 3,473
Other direct staffing 167,872 - - - 167,872
Other operating costs 55,175 - - - 55,175
Support costs 225,048 - - - 225,048
847,491 459,408 5,473 - 1,312,372
Direct Other
Staff Direct Support Total
Analysed as: £ £ £ £
Training 231,944 30,355 - 262,299
Special Categories Ministry 3,742 10,187 - 13,929
Manse costs - 193,021 27,000 220,021
Closed churches costs - 73,208 - 73,208
Other property costs - 37,999 - 37,999
Missional Partnership/Mission 43,931 77,525 - 121,456
Synod M&M contributions - 130,137 - 130,137
Personal and welfare - 1,755 - 1,755
Macedonia Mission Project - 3,473 - 3,473
Other direct staffing 165,932 1,940 - 167,872
Other operating costs - 55,175 - 55,175
Support costs - - 225,048 225,048
445,549 614,775 252,048 1,312,372

26

THE UNITED REFORMED CHURCH (NORTH WESTERN PROVINCE) TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31 2022

10 OTHER CHARITABLE EXPENDITURE (continued)

As restated:
Training
Special Categories Ministry
Manse costs
Other property costs
Mission
Personal and welfare
Macedonia Mission Project
Other direct staffing
Other operating costs
Support costs		 2021
2021
2021
2021
2021
Unrestricted
General
Designated
Restricted
Endowment
Total
£
£
£
£
£
735
68,735
-
-
69,470
22,934
-

-
-
22,934
2,348
243,659
-
-
246,007
6,457
-

18,660
-
25,117
102,971
1,754

-
-
104,725
12,905
25,699
1,975
-
40,579
-
-

3,018
-
3,018
188,536
28,703
602
-
217,841
14,181
16,505
-
-
30,686
258,577
19,996
-
-
278,573
609,644
405,051
24,255
-
1,038,950
As restated:
Analysed as:
Training
Special Categories Ministry
Manse costs
Other property costs
Mission
Personal and welfare
Macedonia Mission Project
Other direct staffing
Other operating costs
Support costs		 Staff
Direct
Support
Total
£
£
£
£
63,227
6,243
-
69,470
3,600
19,334
-
22,934
-
246,007
-
246,007
-
25,117
-
25,117
21,753
82,972
-

104,725
-

40,579
-
40,579
-
3,018
-
3,018
217,841
-
-

217,841
-
30,686
-
30,686
-
-
278,573
278,573
306,421
453,956
278,573
1,038,950

27

THE UNITED REFORMED CHURCH (NORTH WESTERN PROVINCE) TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31 2022

11 SUPPORT AND GOVERNANCE COSTS

Support costs
Staff costs
Office costs
Premises costs
Administration
Governance costs
Staff costs
Trustees' expenses
Committee & staff expenses
Legal & Professional
Audit
Consultancy costs
Analysis 2021
Support costs
Staff costs
Office costs
Premises costs
Administration
Governance costs
Staff costs
Trustees' expenses
Committee & staff expenses
Legal & Professional
Audit
Consultancy costs		 Charitable
2022
Fundraising
Grants
Other
Total
£
£
£
£
12,911
12,911
103,283
129,105
2,421
2,421
19,366
24,208
-
3,156
28,408
31,564
3,939
3,939
31,508
39,386
19,271
22,427
182,565
224,263
-
2,500
22,495
24,995
-
-
-
-
-
2,009
18,077
20,086
-
1,501
13,508
15,009
-
1,712
15,403
17,115
-
-
-
-
-
7,722
69,483
77,205
19,271
30,149
252,048
301,468
Charitable
2021
Fundraising
Grants
Other
Total
£
£
£
£
9,011
-
81,103
90,114
-
18,975
52,064
71,039
-
4,815
13,212
18,027
113

27,084
74,207
101,404
9,124

50,874
220,586
280,584
-
6,499
17,831
24,330
-

1,212
3,327
4,539
-

300
823
1,123
-
7,670
21,045
28,715
-

2,452
6,728
9,180
-
3,000
8,233
11,233
-
21,133
57,987
79,120
9,124
72,007
278,573
359,704

Staff costs are allocated on the basis of estimate of time spent and other costs on the estimate of resources used.

28

THE UNITED REFORMED CHURCH (NORTH WESTERN PROVINCE) TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31 2022

Unrestricted Designated
funds
funds
£
£
12 GAINS AND LOSSES ON INVESTMENTS
Realised gain/(loss) properties for sale
-
679,102
Unrealised gain/(loss) properties for sale
-
(19,745)
Realised gain/(loss) FA investments
(26,311)
-
Unrealised gain/(loss) FA investments
(516,233)
-
(542,544)
659,357
2021 as restated:
Realised gain/(loss) properties for sale
-
73,460
Realised gain/(loss)
(14,223)
-
Unrealised gain/(loss)
422,415
48,686
408,192
122,146
13 NET INCOMING RESOURCES AFTER TRANSFERS
This is stated after charging/(crediting):
Auditors remuneration
Depreciation of fixed assets
Operating lease rentals
Trustees' remuneration as trustees
Trustees' expenses as trustees (travel & subsistence)
Trustees claiming expenses
14 STAFF INFORMATION
a Staff costs
Salaries and wages
Apprenticeship levy
Pension contributions - defined benefit
Employer's NI contributions		 Unrestricted Designated
funds
funds
£
£
12 GAINS AND LOSSES ON INVESTMENTS
Realised gain/(loss) properties for sale
-
679,102
Unrealised gain/(loss) properties for sale
-
(19,745)
Realised gain/(loss) FA investments
(26,311)
-
Unrealised gain/(loss) FA investments
(516,233)
-
(542,544)
659,357
2021 as restated:
Realised gain/(loss) properties for sale
-
73,460
Realised gain/(loss)
(14,223)
-
Unrealised gain/(loss)
422,415
48,686
408,192
122,146
13 NET INCOMING RESOURCES AFTER TRANSFERS
This is stated after charging/(crediting):
Auditors remuneration
Depreciation of fixed assets
Operating lease rentals
Trustees' remuneration as trustees
Trustees' expenses as trustees (travel & subsistence)
Trustees claiming expenses
14 STAFF INFORMATION
a Staff costs
Salaries and wages
Apprenticeship levy
Pension contributions - defined benefit
Employer's NI contributions		 Restricted
Endowment
Funds
funds
2022
£
£
£
-
-
679,102
-
-
(19,745)
-
-
(26,311)
(4,637)
(52,838)
(573,708)
(542,544)
659,357		 (4,637)
(52,838)
59,338
-
73,460
(14,223)
-
422,415
48,686		 2021
-
-
73,460
-
-
(14,223)
6,480
43,396
520,977
408,192
122,146		 6,480
43,396
580,214
2022
2021
£
£
17,115
11,233
7,832
15,034
-
-
-
-
5,128
4,539
No.
No.
4
4
£
£
465,547
367,632
1,675
-
87,160
89,249
45,268
35,023
599,650
491,904

No staff member was paid more than £60,000 p.a. in either year.

The Trust made a termination payment of £38,051, to an employee in the year.

b Key management personnel

The key management of the charity comprise the trustees and the Clerk to the Synod. Mr Hart is remunerated for his roles as Transformation Director and Treasurer, as permitted by the Articles, but this is not considered to be remuneration for acting as a trustee.

The total remuneration benefits of the key management are: 67,262 55,281

c Average staff numbers

The average number of members of staff of the charity was as follows:-

s:-
Average Average
number number
15.0 14.0
15.0 14.0

29

THE UNITED REFORMED CHURCH (NORTH WESTERN PROVINCE) TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31 2022

15 TANGIBLE FIXED ASSETS
TANGIBLE FIXED ASSETS
Cost
As at January 1 2022
Additions
Disposals
Revaluation
Transfer between categories
As at December 31 2022
Depreciation
As at January 1 2021
Charge for the year
Disposals
Transfer to current assets
As at December 31 2022
Net book value
As at December 31 2022
As at December 31 2021		 Computers &
Motor
Office
Buildings
Manses
Vehicles
Equipment
Total
£
£
£
£
£
350,000
10,907,453
20,463
35,313
11,313,229
-
571,038
45,304
3,318
619,660
-
(272,169)
-
-
(272,169)
(42,001)
1,364,127
-
-

1,322,126
142,001
(142,001)
-
-

-
450,000
12,428,448
65,767
38,631
12,982,846
-
-
-
35,313
35,313
-
-
7,003
829
7,832
-
-
-
-

-
-
-
-
-
-
-

-
7,003
36,142
43,145
450,000
12,428,448
58,764
2,489
12,939,701
350,000
10,907,453
20,463
-
11,277,916

The net book value of equipment held on finance leases was £2,360 (2021 - £nil).

30

THE UNITED REFORMED CHURCH (NORTH WESTERN PROVINCE) TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31 2022

16 FIXED ASSET INVESTMENTS
Market value brought forward
Income re-invested
Additions at cost
Disposals at carrying value
Realised gains/(losses) on disposal
Net gain/(loss) on revaluation
Market value carried forward
Investments at fair value comprise:
Castlefield Investments
Epworth Investments
Quoted shares
COIF Investment fund
Market value brought forward
Income & gains re-invested
Additions at cost
Disposals at carrying value
Realised gains/(losses) on disposal
Net gain/(loss) on revaluation
Market value carried forward
Castlefield Investments
Epworth Investments
Quoted shares
COIF Investment fund
Market value brought forward
Income & gains re-invested
Additions at cost
Disposals at carrying value
Net gain/(loss) on revaluation
Market value carried forward
Castlefield Investments
Epworth Investments
Quoted shares
COIF Investment fund		 2022
£
4,675,645
1,882
553,818
(83,467)
(26,311)
(573,708)
4,547,859
3,762,773
695,826
70,857
18,403
4,547,859
Unrestricted funds
as restated
2022
2021
£
£
4,217,970
3,718,009
1,882
-
553,818
193,409
(59,777)
(150,332)
(26,311)
(14,223)
(516,233)
471,107		 2022
£
4,675,645
1,882
553,818
(83,467)
(26,311)
(573,708)		 as restated
2021
£
4,125,808
-
193,409
(150,332)
(14,223)
520,983
4,675,645
4,373,108
227,886
53,572
21,079
4,675,645
Restricted funds
2022
2021
£
£
59,806
53,326
-
-
-
-
(23,690)
-
-
-
(4,637)
6,480
4,547,859
3,762,773
695,826
70,857
18,403
4,547,859
4,171,349
4,217,970		 31,479
59,806
3,404,666
3,936,512
695,826
227,886
70,857
53,572
-
-		 31,479
59,806
-
-
-
-
-
-
4,171,349
4,217,970		 31,479
59,806
-
Endowment funds
2022
2021
£
£
397,869
354,473
-
-
-
-
-
-
(52,838)
43,396
345,031
397,869
326,628
376,790
-
-
-
-
18,403
21,079
345,031
397,869

31

THE UNITED REFORMED CHURCH (NORTH WESTERN PROVINCE) TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31 2022 2022 2021

17 PROGRAMME RELATED INVESTMENTS
Loans to local churches
Amounts due in one year
Amounts due in more than one year		 £
£
-
411,895
-
411,895
-
173,947
-
237,948
-
411,895

Programme related investments have been reclassified as loans within debtors.

18 DEBTORS DUE IN MORE THAN ONE YEAR

18 DEBTORS DUE IN MORE THAN ONE YEAR
Church loans
19 DEBTORS
Trade debtors
Loans to churches
Income receivable
Prepayments & other debtors
2022
Analysis of church loans:
Due 1 year
£
Chorley - Building Project
170,000
Halton - Building Project
2,500
New Mills URC - dry rot
1,954
Shaw & Heyside - bridging loan
5,000
179,454
No interest is payable on the loans in 2022 (2021 - none).
20 CURRENT ASSET INVESTMENTS
Properties held for resale
21 CREDITORS falling due within one year
Trade creditors
Accruals
Grants awarded and not paid
Support for Ministers' Pension Fund
Other Creditors
Synod Manse Scheme due to churches
Finance lease creditor
22 CREDITORS falling due in more than on year
Support for Ministers' Pension Fund
Finance lease creditor		 2022
Due 1 year
£
170,000
2,500
1,954
5,000		 57,920
-
57,920
-
as restated
54,000
36,000
179,454
-
291,261
2,536
61,646
131,183
586,361
169,719
2022
2022
2021
Due > 1 year
Total
Total
£
£
£
-
170,000
-
5,625
8,125
-
-
1,954
-
52,295
57,295
-
179,454 57,920
237,374
-
2022
2021
£
£
2,269,630
2,647,375
2,269,630
2,647,375
as restated
82,410
34,098
54,585
67,368
98,517
42,887
150,000
150,000
2,891
10,339
2,528,670
3,254,022
682
-
2,917,755
3,558,714
150,000
300,000
2,026
-
152,026
300,000

32

THE UNITED REFORMED CHURCH (NORTH WESTERN PROVINCE) TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31 2022

23 STATEMENT OF FUNDS

----- Start of picture text -----
31/12/2022 £ 1,596,053 - 1,596,053 12,661 - 637,921 5,365,959 - 12,428,448 18,444,989 20,041,042 62,696 31,939 11,172 - 3,703 9,321 3,051 37,714 - - - 159,596 199,652 57,250 69,724 21,202 33,136 18,405 399,369 20,600,007
Transfers £ (1,666,498) - (1,666,498) (165,000) - (298,869) 1,949,375 28,332 156,868 1,670,706 4,208 810 - - - 331 550 - - - - - 1,691 (2,942) (810) (1,054) (212) (331) (550) (5,899) -
- - - - - - - - - - - - - - - -
2022 gains & loses £ (584,545) (584,545) 58,340 601,017 1,364,127 2,023,484 1,438,939 (4,637) (4,637) (30,662) (8,473) (11,027) (2,676) (52,838) 1,381,464
£ (8,152) - - - (3,473) - - - - (2,000) - - - - - - - -
Expenditure (1,011,617) (1,019,769) (73,932) (48,975) (220,021) (68,956) (121,456) (533,340) (1,553,109) (97,951) (12,500) (115,924) (1,669,033)
£ - - - - - 460 6,764 - 33 87 30 858 2,000 - 2,942 810 1,054 212 331 550 5,899
178,443 178,443 18,000 100,539 12,500 22,732
Income 2,524,490 2,643,029 2,821,472 2,850,103
b/f and c/f As restated 31/12/2021 £ 4,680,270 8,152 4,688,422 251,593 48,975 1,080,471 360,033 (7,415) 10,907,453 12,641,110 17,329,532 61,886 36,116 7,881 - 3,339 8,684 3,021 134,807 - - - 255,734 230,314 65,723 80,751 21,202 33,136 21,081 452,207 18,037,473
2 - - 859 - - 4 642 - - - - (860) (3) (4) (642) -
Transfers £ (209,455) (209,453) 69,875 83,766 142,000 (83,766) 211,875 2,422 14,628 (12,813) 3,320 (3,113) (1,120) (5,742)
£ 65,044 - 65,044 - - (2,435) - - 5,439 - 1,041 - - - - - - - 6,480 24,954 8,974 6,896 - - 2,572 43,396
Gains & loses 124,578 1,063,184 1,185,327 1,250,371 1,300,247
- - - - - - - - - - - - - - -
2021 Expenditure £ (1,250,631) (1,250,631) (350,571) (69,874) (243,659) (46,059) (102,317) (812,480) (2,063,111) (2,862) (2,577) (3,018) (15,798) (12,500) (36,755) (2,099,866)
£ 1 165,000 - 30,750 - 86,967 - 282,717 315 677 4,299 129 - 1 - 16 12,500 - 12,813 30,750 3,113 860 1,120 3 4 642 5,742
Income 2,055,277 2,055,278 2,337,995 2,374,487
As restated 01/01/2021 £ 4,020,035 8,149 4,028,184 437,164 48,974 1,085,036 266,527 7,935 9,928,035 11,773,671 15,801,855 63,574 32,577 6,600 - 3,335 8,041 3,021 134,791 - - - 251,939 205,360 56,749 73,855 21,202 33,136 18,509 408,811 16,462,605
Unrestricted funds: General fund+ Leverhulme Designated Funds:+ Church Grants Training Manse fund Closed Church Fund Missional partnership Invested in manses Total unrestricted funds Restricted Funds: Church Extension Fund Welfare Fund Macedonia Project Graveyards Stainton Redwing Trust 2014 Great Salkeld The Fletcher Trust University Chaplaincy Discipleship Development Furlough Total restricted funds Endowments General Purposes Fund Church Extension Fund Ministries+ Leverhulme+ Stainton+ Redwing Trust 2014+ Total endowment funds Total Funds * are linked charities, + are part of the Synod General purposes linked charity
----- End of picture text -----*

33

THE UNITED REFORMED CHURCH (NORTH WESTERN PROVINCE) TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31 2022

23 STATEMENT OF FUNDS (continued)

Transfers between funds

Unrestricted funds
General fund
Leverhulme
Designated Funds:
Church Grants
Training
Manse fund
Closed Church Fund
Missional partnership
Invested in manses
Restricted Funds:
Church Property
Welfare
Graveyards
Stainton
Redwing
Great Salkeld
Fletcher Trust
Furlough
Total restricted funds
Endowments
Capital
Church Property*
Ministries
Leverhulme
Stainton
Redwing
Total endowment funds		 Closed
churches
31/12/21
held for
sale
£
(1,784,375)
-		 manse sale
manse
purchase
£
£
-
-
-
-		 Interest
Transfer
other
property
from
manses
Ian Wallace
fund
MP
overspend
Total
Transfers
£
£
£
£
£
4,208

142,001
-
(28,332)
(1,666,498)
-

-
-
-
-
4,208

142,001
-
(28,332)
(1,666,498)
-

-
(165,000)
-
(165,000)
-

-
-
-
-
-

-
-
-
(298,869)
-
-
165,000
-

1,949,375
-
-
-
28,332
28,332
-
(142,001)
-
-

156,868
(1,784,375) -
-
-
-
-
1,784,375
-
-
 -
-
-
-
272,169
(571,038)
-
-
-
-
(272,169)
571,038
1,784,375 -
-		 -
(142,001)
-
28,332
1,670,706
-

-
-
-
-

-
-
-		 -
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
 810
-
-
-

810
-
-
-
-
-
-
-
-
-
-
331
-
-
-

331
550
-
-
-
550
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
- -
-
 1,691
-
-
-
1,691
-
-
-
-
-
-		 -
-
-
-
-
-
-
-
-
-
-
-		 (2,942)
-
-
-
(2,942)
(810)
-
-
-
(810)
(1,054)
-
-
-
(1,054)
(212)
-
-
-
(212)
(331)
-
-

-
(331)
(550)
-
-
-
(550)
- -
-		 (5,899)

-
-
-
(5,899)

notes

closed churches had been included in general not closed churches fund.

34

THE UNITED REFORMED CHURCH (NORTH WESTERN PROVINCE) TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31 2022

23 STATEMENT OF FUNDS (continued)

Unrestricted funds

General funds are available for the general purposes of the charity.

Designated funds

Church grants balance of funds set aside in previous years to make grants for mission and property projects to local churches. Going forward such grants form part of the annual budget. Expected to be spent in 2023.

Closed Churches funds - amounts from the closure of churches either from the sale of properties or the transfer of funds. Used to support the costs of holding properties till they are sold and to provide budget support to the general fund by means of a year end transfer (expected to be £1.2m for the next 3 years). The closed churches fund includes the following sub designations:

The Closed Churches Fund includes the following allocations:
For the use of Bolton & Salford Missional Partnership#
For the use of Ashton-on-Mersey URC
For capital development by the Lighthouse Community Church
Westhoughton URC (on sale of church		 2022
2021
£
£
165,000
165,000
200,000
200,000
99,000
99,000
178,170
225,000
642,170
689,000

known as the Ian Wallace Fund

Manse Fund - funds from the sale of surplus manses used to finance the running costs of existing manses and to fund new purchases. Expected to be spent over the next 5 years. Invested in manses - Represents the investment in manses to house ministers.

Restricted funds

Church Extension Fund. This fund arose from the dissolution of the Lancashire Congregational Union, and receives income from the Endowed Church Property fund. It is available to buy and maintain properties for use in the furtherance of the Synod's mission activities, and to make property grants to churches.

Welfare Fund. This fund holds monies apportioned by the dissolution of the Lancashire Congregational Union. To make Christmas payments to retired ministers, widows/widows, and welfare grants to individuals, at the Synod Moderators Discretion.

Macedonia . This is a Synod project based in Failsworth, Oldham and the monies are only expandable on the this work.

Stainton Fund. This fund's purpose can no longer be fulfilled and the Trustees intend to apply to the Charity Commission to make it available for the Synod's general purposes.

Redwing Fund. To make book grants available to ministers and lay people in Cumbria.

Great Salkeld Fund . This fund's purpose can no longer be fulfilled and the Trustees intend to apply to the Charity Commission to make it available for the Synod's general purposes.

Fletcher Trust Fund. Available to spend on the Synod's charitable purposes in Manchester and Trafford.

Endowments

The income of the Capital, Ministries and Leverhulme funds transferred to the general purposes fund and the income of the other endowments to the corresponding restricted funds.

As the purposes of the Stainton Fund can no longer be fulfilled, the trustees intend to apply to the Charity commission to make these funds expendable on the general purposes of the Synod.

35

THE UNITED REFORMED CHURCH (NORTH WESTERN PROVINCE) TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31 2022

24 REVALUATION RESERVES

Included within unrestricted reserves are amounts attributable to the revaluation reserve arising from the annual revaluations of land and buildings included in fixed assets.

Brought forward
Disposals
Reclassified as current asset investment for sale
Year end revaluation
Carried forward		 2022
2021
£
£
1,549,057
530,425
(171,603)
-
-
(44,549)
1,364,127
1,063,181
2,741,581
1,549,057

25 ANALYSIS OF COMPANY NET ASSETS BETWEEN FUNDS Fund balances at December 31 2022 are represented by:-

Tangible fixed assets
Fixed asset investments
Debtors due in more than one year
Net current assets
Creditors due in more than one year
Free reserves		 Unrestricted
General
Designated
Funds
Funds		 Restricted
Funds		 Endowment
Funds		 Total
£
£
511,253
12,428,448
427,429
3,743,920
7,920
-
801,477
2,272,621
(152,026)
-		 £
-
31,479
50,000
78,117
-		 £
-
345,031
-
54,338
-		 £
12,939,701
4,547,859
57,920
3,206,553
(152,026)
1,596,053
18,444,989		 159,596 399,369 20,600,007
1,084,800

Fund balances at December 31 2021 are represented by:-

Fund balances at December 31 2021 are represented by:-
Tangible fixed assets
Fixed asset investments
Programme investments
Net current assets
Creditors due in more than one year		 as restated
370,463
10,907,453
-
-
11,277,916
3,753,553
464,414
59,809
397,869
4,675,645
305,431
-
106,464
-
411,895
602,856
1,233,243
81,580
54,338
1,972,017
(300,000)
-
-
-
(300,000)
4,732,303
12,605,110
247,853
452,207
18,037,473
4,056,409

26 TAXATION

The Trust is a registered charity and is entitled to claim annual exemption from UK corporation tax.

27 CAPITAL COMMITMENTS

At the year end the Trust had authorised capital expenditure of up to £900,000 on the purchase of two manses but no contracts had been entered into (2021 - none).

36

THE UNITED REFORMED CHURCH (NORTH WESTERN PROVINCE) TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31 2022

28 LEASE COMMITMENTS

Operating lease commitments

The Charity had no commitments under non-cancellable operating leases (2021 - none).

Finance lease commitments
The Charity had the following commitments under finance leases:
Not later than one year
Later than one year and not later than five years
Less interest charges
Per creditors notes		 2022
2021
£
£
905
-
2,262
-
3,167
-
(459)
-
2,708
-

29 RECONCILIATION OF NET MOVEMENT IN FUNDS TO NET CASHFLOW FROM OPERATING ACTIVITIES

Net income/(expenditure) before transfers
Add back depreciation on fixed assets
Deduct property transferred to Synod
Deduct/(add) unrealised gains/(losses) on investments
Deduct interest income shown in investing activities
Deduct profit/add back losses on disposals of FA
Decrease/(increase) in debtors
Increase/(decrease) in creditors
Net cash generated from/(used in) operating activities		 as restated
2022
2021
£
£
1,240,408
854,835
7,832
15,034
(1,851,381)
(1,784,375)
(59,338)
(520,983)
(79,635)
(66,062)
19,596
(397,703)
(237,188)
(92,894)
(791,641)
58,337
(1,751,347)
(1,933,811)

30 NET MOVEMENT IN DEBT

NET MOVEMENT IN DEBT
Cash and cash equivalents
Cash at bank and in hand
Debt
Finance lease obligations
Cash and cash equivalents
net of debt		 as at
as at
31/12/2021
Cashflows
new lease
31/12/2022
£
£
£
£
2,713,637
554,680
-
3,268,317
-
(439)
3,147
2,708
2,713,637
3,265,609

37

THE UNITED REFORMED CHURCH (NORTH WESTERN PROVINCE) TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31 2022

31 PRIOR YEAR ADJUSTMENT

General funds
Designated funds
Manse Fund
Other Designated fund
Restricted funds
Endowment funds		 as
previously
stated
31/12/20
Rent
Moderator's
manse
Synod
M&M
overpaid
Macedonia
Mission
project
As restated
31/12/20
£
£
£
£
£
4,032,012
-
(3,828)
-
4,028,184
-
-
-
-
-
1,067,036
18,000
-
-
1,085,036
10,688,635
-
-
-
10,688,635
11,755,671
18,000
-
-
11,773,671
245,339
-
-
6,600
251,939
408,811
-
-
408,811
16,441,833
18,000
(3,828)
6,600
16,462,605

The adjustments above have arisen as follows:

General Funds

In reconciling the local church contributions collected on behalf of the Synod by the National Church in 2022, it was discovered that there had been overpayments in 2020 and 2021.

Designated funds

The Trust rented a property to the national church as a manse for the Moderator at £18,000 pa but the income was not included in the accounts and not received until January 2023.

Restricted funds

In 2019 Macedonia Church, Failsworth Oldham, became a Synod Project but its income and expenditure and local bank account had not previously been incorporated into these financial statement. Details of the transactions are given below.

Prior year adjustments 2021
General funds
Designated funds
Manse Fund
Closed Churches Fund
Other Designated fund
Restricted funds
Endowment funds		 as
previously
stated
adjustments
As restated
31/12/2021
2020
2021
31/12/2021
£
£
£
£
4,881,883
(3,828)
(189,633)
4,688,422
-
-
-
-
1,044,471
18,000
18,000
1,080,471
218,033
-
142,000
360,033
11,200,606
-
-
11,200,606
12,463,110
18,000
160,000
12,641,110
247,853
6,600
1,281
255,734
452,207
-
-
452,207
18,045,053
20,772
(28,352)
18,037,473

38

THE UNITED REFORMED CHURCH (NORTH WESTERN PROVINCE) TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31 2022

31 PRIOR YEAR ADJUSTMENT (continued)

Detailed adjustments 2021
Rent Macedonia sale of Total
Moderator's Synod M&M Mission Pension church adjustments
manse overpaid project creditor Transfer 2021
£ £ £ £ £
General funds - (6,120) (41,513) (142,000) (189,633)
Designated funds - - - - - -
Manse Fund 18,000 - - - - 18,000
Closed churches fund - - - - 142,000 142,000
Other Designated fund - - - - - -
18,000 - - - 142,000 160,000
Restricted funds - - 1,281 - - 1,281
Endowment funds - - - - - -
18,000 (6,120) 1,281 (41,513) - (28,352)

The adjustments above have arisen as follows:

General Funds

In reconciling the local church contributions collected on behalf of the Synod by the National Church in 2022, it was discovered that there had been overpayments in 2020 and 2021.

Designated funds

The Trust rented a property to the national church as a manse for the Moderator at £18,000 pa but the income was not included in the accounts and not received until January 2023.

Restricted funds

In 2019 Macedonia Church, Failsworth Oldham, became a Synod Project but its income and expenditure and local bank account had not previously been incorporated into these financial statement. Details of the transactions are given below.

Balance sheet only reclassifications

In addition fixed asset investments at 31/12/21 were overstated and cash balances understated by £15,000 being the value of custodian funds invested with Epworth. The 2021 accounts had mistakenly accounted for these funds as cash but they had been invested with Epworth before the year end.

Macedonia
Income
Expenditure
Previous years net
Balance sheet
bank account		 2021
2020
£
£
4,299
3,632
(3,018)
(5,597)
-
8,565
1,281
6,600
7,881
6,600

Transfer

In 2021 the proceeds of sale of a closed church of £142,000 were not transferred to the closed church fund.

39

THE UNITED REFORMED CHURCH (NORTH WESTERN PROVINCE) TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31 2022

31 PRIOR YEAR ADJUSTMENT (continued)

The effect of these adjustments on the SOFA and balance sheet was as follows:

SOFA adjustments
Donations - Macedonia
Income from charitable activities
Missional partnership income
Rent
Other income - Macedonia
Total income adjustments
Expenditure - charitable activities
Payroll costs
Macedonia
Net effect
Balance sheet adjustments
Investments misstated
Debtors rent and MP income 2020 and 2021
Bank account - Macedonia and investment
Creditors due > 1 year - Pension liability
Reserves 2020
Reserves 2021		 2021
£
1,941
(6,120)
18,000
11,880
2,358
13,821
(41,513)
3,473
(38,040)
(24,219)
(15,000)
26,052
22,881
(41,513)
(7,580)
20,772
(28,352)
(7,580)		 2020
£
1,260
(3,828)
18,000
14,172
2,372
15,432
-
5,597
5,597
21,029
-
14,172
6,600
-
20,772
20,772
-
20,772

32 RELATED PARTY TRANSACTIONS

Mr M Hart, a trustee, received a salary for his role as Treasurer and Transformation Director of £20,456 (2021 - £23,280) as 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 Trustees are drawn or to Trustees 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. Details of grants are given in note 9.

During the year an interest free loan of £164,000 made by Mr Andrews (a trustee) to Kendal URC in a previous period was repaid in full.

40

THE UNITED REFORMED CHURCH (NORTH WESTERN PROVINCE) TRUST LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31 2022

33 CUSTODIAN FUNDS

The Trust acts as custodian trustee of local church assets for churches in the North Western Province of the United Reformed Church (the Province). Local churches as unincorporated charities are not legal persons and cannot hold title to property and investments in their own name.

The Trust holds title for all church buildings in the Province except for one. The deeds to the properties are vested in the Trust, with a declaration of trust recording which local church the property is held on behalf of. As custodian trustee, the Trust signs any legal documents relating to the property and making it clear that it enters into any agreement in the name of the local church.

The Elders of the local churches are the managing trustees of their local church and retain the responsibility for the upkeep of the property and the right to nay income derived from them, and the right to the asset.

In addition, the Trust holds a range of investments and deposit accounts on behalf of the local churches. Responsibility for deciding how these funds should be invested, the withdrawal of capital and the application of income remains with the managing trustees. At the year end the value of these investments and cash deposit was £4,851,639 (2021 - £5,813,369).

None of the custodian funds are included in these accounts.

34 CONTINGENT LIABILITY

The National Church administers the Ministers’ Pension Fund, the majority of the contributions coming from the local churches through their Mission & Ministry contributions. The last actuarial review took place in January 2021, and identified a significant accumulated deficit on the fund. In 2021, the Trust, along with other URC Trusts, agreed a comprehensive package to address the deficit.

Although the deficit is not the legal responsibility of the Trust, it agreed to make a grant of £550,000 as a contribution to the fund. It paid £100,000 in 2021, and the balance was payable in three equal annual instalments of £150,000, and the £450,000 liability was included in creditors. The 2022 instalment was paid in the year under review. In addition, the Trust has given a non-binding commitment to the National Church that:

In the opinion of the trustees this contingent liability of £640,000 is not required to be included in these financial statements as it is dependent on uncertain future events.

41