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← The Parochial Charity

2025-03-31-accounts

THE PAROCHIAL CHARITY

REGISTERED NUMBER 515251

TRUSTEES’ REPORT AND FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2025

THE PAROCHIAL CHARITY

LEGAL AND ADMINISTRATIVE DETAILS

~~Registered Charity Number:~~

515251

~~Principal Address~~ (that of the Clerk to the Trustees, Mrs S.Heap):

Cedar Lawns, Forties Lane, Smisby, Ashby ~~-d~~ e-la ~~-~~ Zouch, Leicestershire. LE65 2SN

Trustees:

Mr S ~~.~~ J ~~.~~ Barnett (resigned 1 February 2025) Miss C Hynam (resigned 2 September 2024) Mr R Hounslow (resigned 16 May 2024) Mr P Cooper Ms G K Dickens (appointed 3 June 2024) Ms E Sturgess (appointed 23 September 2024)

Bank:

CAF Bank Ltd ~~.,~~ 25, Kings Hill Avenue, Kings Hill, West Malling, Kent ~~.~~ ME19 4TA

~~Independent Examiner:~~

L Frost ACCA Nuvo Accountancy Limited Chartered Certified Accountants, Millennium Court First Avenue Burton on Trent, Staffordshire DE14 2WH

~~-~~ 1 ~~-~~

THE PAROCHIAL CHARITY

REGISTERED NUMBER 515251

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2025

1 Structure, Objectives and Activities for the Public Benefit

The Trustees of the Parochial Charity operate under their Trust Deed dated January 1982 and hereby submit their Report and Accounts for the financial year ended 31 March 2025. The Trustees prepare the accounts in accordance with the 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) issued on 16 July 2014 and the Charities Act 2011 ~~.~~

The objects of the Charity are defined in its Trust Deed and its discretionary expenditure is all within the terms stated in that deed; all other expenditure relates to the management and administrative requirements of the Charity, including the fees payable to its professional advisers ~~.~~ The Charity was first endowed in 1794 and has undergone many changes, the latest being in 2005 when most of its endowed land was sold, to conform with local planning authority requirements for an area which included the Charity owned land ~~.~~ This endowed land was sold for a sum of £2,360,000 but the monies were not received in full until 2009 ~~.~~ These Endowed funds have risen to £3,122,775 by 31 March 2025, and cannot as such be spent, but are invested to yield disposable income. Endowed and General Funds totaled £3,095,922 over the same period. This represents a decrease of £42,645 compared to the end of FY23 ~~-~~ 24 and is down to an overall decrease in Endowed Funds of £6,067 and a decrease in General Funds of £36,578.

As stated last year, we have engaged Thomson Snell Passmore (TSP) to oversee the transition to Charitable Incorporated Organisation (CIO) status ~~.~~ This widely recognised structure is advantageous for charities like ours, establishing the Charity as a distinct legal entity separate from the Trustees. This process also presents an opportunity to modernise the 1982 Trust Deed ~~.~~ While we had anticipated finalising the transition to a Charitable Incorporated Organisation (CIO) within this reporting year, this process has encountered unexpected complexities. The Charity Commission has referred our application to their regulatory authority team to address structural issues identified within our founding documents. Although a new application will be required, we remain confident that the CIO status will be achieved, albeit with a delay, and we will continue to operate under the existing charity and scheme in the interim.

After deducting half of the Charity's operating expenses, 50% of the remaining annual disposable income is allocated to The Church Charity, which operates independently and publishes a separate report on its activities.

Four Trustees govern the Parochial Charity: two nominated by the Smisby Parish Council and two co ~~-~~ opted by the Charity ~~.~~ As stipulated in the Trust Deed, co ~~-~~ opted individuals should possess a strong understanding of Smisby ~~.~~

The Trustees endeavour to concentrate their discretionary expenditure on projects that bring benefit to the greatest number of residents living in Smisby Parish ~~.~~ Christmas hampers were given to all those over sixty requesting a hamper, with this year’s hampers being sourced, produced and delivered by the Trustees ~~.~~ This was well received again with a larger number of recipients thanking the Charity for their wonderful hampers either by email, social media or by card ~~.~~ Those of age not wishing to receive a hamper, have the option of donating the value of their hamper to a local food bank in vouchers ~~.~~

We continue to support educational development within our community ~~.~~ This includes providing grants to students pursuing higher education, distributing book tokens to local children, and offering an annual grant to the Smisby Women's Institute, which funds their subsidized educational outings ~~.~~ This grant is subject to an annual increase as collectively agreed upon by the Trustees. In addition, the Charity has provided a small number of individual welfar ~~e-~~ based funds, including the recently introduced funeral expenses support. Importantly, our commitment to community support extends only to projects or individuals where public funding is either inaccessible or insufficient ~~.~~

Further funding extends to supporting community floral displays around the village during the year ~~.~~ The Charity also supported the Smisby Village Hall Summer and Christmas Parties, which continue to be a huge success.

-2 ~~-~~

2 Governance

The Charity, supported by our Land Agent, Fisher German, continues to actively seek opportunities for agricultural land acquisition in Smisby. To date, suitable properties meeting our criteria for both location and price have not been identified ~~.~~ Our existing land holdings, last valued by a Red Book valuation in 2021, were originally scheduled for revaluation by the Land Agent towards the end of the 2025 ~~-~~ 26 financial period. However, this revaluation has been deferred, as up ~~-t~~ o ~~-~~ date investment information will be crucial once the Charity's transition from the 1982 Scheme to a Charitable Incorporated Organisation (CIO) is finalised, a process which has experienced delays.

Our investment portfolio is managed by Rathbones Investment Management, appointed in May 2021 ~~.~~ Nuvo Accountancy Ltd (formerly ADS Accountancy Ltd) in Burton on Trent is responsible for the preparation of the Charity's financial statements, which are then independently examined by the same firm.

In line with recommendations from Rathbones Investment Management, we have strategically managed our General Funds, specifically short ~~-~~ term deposits, to maintain a balanced level of approximately £300,000 ~~.~~ This ensures sufficient readily accessible funding is available for potential land acquisition should a suitable parcel become available.

Maintaining transparency is paramount to our operations ~~.~~ Our financial records are readily available on the Charity Commission's website, ensuring public accountability ~~.~~ We foster open communication with residents through regular quarterly updates in the Parish Newsletter, accessible both online and in print, and actively encourage proposals for new community initiatives ~~.~~ Furthermore, a comprehensive annual report detailing the Charity's activities is submitted to the Parish Council.

3 Management

The Trustees convene approximately six meetings annually, with the frequency adjusted to meet operational requirements ~~.~~ All meetings are conducted in person, providing a dedicated forum for comprehensive discussions ~~.~~ Key areas of focus include:

Beyond the formal annual investment review, the Trustees also engage in interim consultations with our investment advisors, Rathbones Investment Management, to address and discuss pertinent investment matters as they arise ~~.~~

4 Financial Review

The financial year 2024 ~~-~~ 25 saw overall Charity income remain stable at £47,592 compared to £47,478 in the previous financial year ~~.~~ The significant increase in income experienced in the prior year was largely due to the movement of funds from Capital deposit (shor ~~t-~~ term banks/building society accounts) to the Rathbones Investment Management managed Charity account, which provided an improved yield, alongside increased interest rates over 2023/2024 for Capital deposit holdings due to Bank of England base rate increases. In FY24 ~~-~~ 25 overall Charity income remained stable. This was primarily due to minor decreases in both dividends/interest and rental income, largely offset by a reduced share of income allocated to the Church Charity as per the deeds.

This year £170,000 was transferred from bank accounts into Rathbones Investment Management portfolio ~~.~~ The remaining cash deposit accounts are all within the Financial Services Compensation Scheme (FSCS) framework of £85k ~~.~~ Any endowed deposit fund which is closed is held in general funds on a temporary basis until a suitable deposit account can be found.

-3 ~~-~~

5 Investment Policy and Performance

The endowed capital of the Charity is strategically invested across land (primarily agricultural), equity ~~-r~~ elated funds, and deposits ~~.~~ These deposits are held with banks and building societies operating within the FSCS framework, which continues to provide guarantees for sums up to £85,000 ~~.~~ Recommendations for capital cash deposits and truste ~~e-~~ sourced investments are thoroughly discussed and agreed upon with our financial advisers before implementation by the Trustees. The Rathbones Investment Management Portfolio adheres to ethical criteria and a medium- ~~r~~ isk profile, aiming to maintain or ideally grow the real value of capital (as defined by CPI) while generating a real-value income over time ~~.~~ Equity ~~-r~~ elated investments, typically longer ~~-~~ term, are a central focus of our annual financial review with our advisers, with sales and purchases agreed following their recommendations ~~.~~

For the year ended 31 March 2025, the long ~~-~~ term equity ~~-~~ related funds experienced a loss of £48,379 on revaluation and disposal of investments. This performance reflects a challenging market environment characterised by global economic uncertainty and geopolitical risks, as detailed in our investment manager's commentary for the period ~~.~~ This period was heavily influenced by renewed tariffs and economic uncertainty stemming from Donald Trump's policies, which triggered fears of a global trade war and a potential US recession, causing stock markets to decline to 31 March 2025 ~~.~~ However, markets demonstrated impressive resilience and recovered significantly in the subsequent quarter ~~.~~ Global equities, including the S&P 500, rebounded strongly in Q2 2025, with the S&P 500 ultimately returning nearly 18% by the end of 2025 and reaching new record highs ~~.~~ This recovery was aided by the US President pausing tariffs after the initial market plunges, as well as strong corporate earnings, advancements in Al technology, and interest rate cuts by the Federal Reserve.

The trustees review/revise the Investment Policy Statement and strategy with Rathbones Investment Management annually ~~.~~

The Trustees’ commitment to investment in land remains a key objective ~~.~~ However, our Land Agent, Fisher German, has not yet identified suitable properties that meet our criteria for location, price, and overall attractiveness ~~.~~ Our current land holdings are valued at £575,000, which includes a 2021 Red Book valuation for five of the six land parcels and a recent valuation for the car park ~~.~~ This represents a substantial increase from the original cost price of £437,090. A comprehensive Red Book revaluation of all land holdings was originally planned for the end of the 2025 ~~-~~ 26 financial period. However, this revaluation has been deferred, as up ~~-t~~ o ~~-~~ date investment information will be crucial once the Charity's transition to a Charitable Incorporated Organisation (CIO) is finalised, a process which has experienced delays. Currently, land constitutes approximately 19% of our total endowment funds, providing headroom to acquire further land and aligns with our investment policy target of 2 ~~5-~~ 30% in this asset class.

6 Reserves Policy

After allowing for the fact that half the Charity income (after deduction of all costs incurred) passes to the Church Charity each year, our total income for this year amounted to £47,592 ~~.~~ This supports the established and traditional expenditure that solely benefits Smisby Parish residents. Over the past few years, to allow the Charity to undertake one or more significant projects in the future, we have allowed our disposable cash reserves (General Funds) to build up steadily ~~.~~ However, in the current financial year, these funds sawa significant decrease from £9,725 at the start of the year to a deficit of (£26,853) at 31 March 2025. The Trustees view this deficit as short ~~-~~ term, and market conditions observed since the year ~~-~~ end point to an increased value of the Charity's investments to the date of writing this Trustee report ~~.~~

As the total disposable income exceeds the FSCS £85k threshold, other quick access bank/building society accounts are to be used to hold the reserves of the General Fund, leaving a sufficient amount in the day ~~-to-~~ day working account ~~.~~ Any requirement to call back from the reserves will be based on either a) a high value community project, or b) should the investment performance vs expenditure for a financial year be such that the working account goes below a base line threshold ~~.~~

Dated: 22 January 2026

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O k Ak ins
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Ms G K Dickens (On behalf of the trustees)

~~-~~ 4 ~~-~~

THE PAROCHIAL CHARITY

Statement of Financial Activities For the year ended 31% March 2025

General General Endowment Total Total Total
Note Funds Funds 2025 2024
INCOMING RESOURCES 2
Investment Income 5,280 42,312 47,592 47,478
Other Incoming Resources - - - -
TOTAL INCOMING RESOURCES 5,280 42,312 47,592 47,478
RESOURCES EXPENDED
3
Charitable expenditure:
Grants payable
Management and administration		 20,855
21,003		 ~~-~~
~~-~~		 20,855
21,003		 15,699
11,513
TOTAL RESOURCES EXPENDED 41,858 ~~-~~ 41,858 27,212
NET INCOMING RESOURCES
BEFORETRANSFERS
Transfers between funds		 (36,578) 42,312
-		 5,734
-		 20,266
-
NET INCOMING RESOURCES BEFORE
GAINSON INVESTMENTS
Netgains/(losses) on revaluation and
disposal of investments		 (36,578) 42,312
(48,379)		 5,734
(48,379)		 20,266
147,550
Net movement in funds (36,578) (6,067) (42,645) 167,816
Total funds at 1°" April 2024
Revaluation of properties		 9,725
-		 3,128,842
-		 3,138,567
-		 2,832,841
137,910
Total funds at 31° March2025 (26,853) 3,122,775 3,095,922 3,138,567

~~-~~ 5 ~~-~~

THE PAROCHIAL CHARITY

Balance Sheet as at 31st March 2025

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||||||||| |---|---|---|---|---|---|---|---| |Note|2025|2024| |FIXED|ASSETS| |Tangible|assets|6|575,000|575,000| |575,000|575,000| |CURRENT ASSETS| |Debtors|and|prepayments|7|-|-| |Investments|8|2,292,681|2,348,524| |Cash|at|bank|and|in|hand|259,316|249,566| |2,551,997|2,598,090| |CURRENT|LIABILITIES| |Creditors:|Amounts|falling| |due|within|one|year|9|31,075|34,523| |NET CURRENT ASSETS|2,520,922|2,563,567| |TOTAL ASSETS|LESS|CURRENT|LIABILITIES|3,095,922|3,138,567| |LONG|TERM|LIABILITIES| |Creditors:|Amounts|falling|due| |after|more|than|one|year|-|-| |NET ASSETS|3,095,922|3,138,567| |CAPITAL|FUNDS| |Endowment|13|3,122,775|3,128,842| |INCOME|FUNDS| |General|fund|13|(26,853)|9,725| |3,095,922|3,138,567|

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Approved by the Trustees on 22 January 2026 and signed on its behalf by... iic ~~c~~ ps ~~ee~~ ey ~~a~~ sa ~~av~~ etittennbtlels G K Dickens ) ~~.~~

The analysis of net assets between funds can be found on note 13, on page 12 ~~.~~ The notes on pages 7 to 12 form part of these accounts.

~~-~~ 6 ~~-~~

THE PAROCHIAL CHARITY

Notes to the Accounts

For the year ended 31st March 2025

1. ACCOUNTING POLICIES

Basis of accounting

The financial statements have been prepared in accordance with FRS102 ~~.~~ The financial statements have also been prepared in accordance with the Statement of Recommended Practice (SORP), ‘Accounting and Reporting by Charities’ published in 2015.

The accounts have been prepared under the historical cost convention, with the exception that investments are valued at market value.

Donations, legacies and similar incoming resources

Donations, legacies and similar incoming resources are included in the year in which they are receivable, which is when the charity becomes entitled to the resource.

Investment income

Income from quoted investments and interest on short term deposits is accounted for in the year in which it is receivable ~~.~~

Rental income is included in the period to which it relates ~~.~~ Amounts received in advance are deferred to the following period.

Tangible fixed assets and depreciation

Land is included at a valuation and no provision for depreciation has been made as it is considered that market value is not less than original cost ~~.~~

Allocation of expenditure

For accounting purposes expenditure is allocated as follows:

~~Grants Payable~~

Grants payable are charged in full in the year in which they are awarded.

~~Management and administration~~

All other expenditure arising from the management and administration of the charity ~~.~~

Funds Accounting

The funds held by the charity are categorised as follows;

General Funds

These are funds which the trustees are free to use in accordance with the objects of the charity as set out in its governing document. Designated funds are amounts which have been set aside at the discretion of the trustees for a specific purpose in the future. Trustees have the power to reallocate these funds until such time as they have been expended ~~.~~ Reserves are the general funds which have not been designated.

Endowment Funds

These funds must be retained by the charity and cannot be spent ~~.~~ The income generated from the assets held in these funds is first applied to the cost of maintaining those assets. Surplus income is available for expenditure by the trustees in accordance with the objects of the charity after the fulfilment to pay half income less half costs to the church charity ~~.~~

~~-~~ 7 ~~-~~

INDEPENDENT EXAMINER’S REPORT TO THE TRUSTEES OF THE PAROCHIAL CHARITY

| report on the accounts of the Charity for the year ended 31 March 2025 which are set out on pages 5 to 12.

Respective responsibilities of trustees and examiner

The charity's trustees are responsible for the preparation of the accounts. The charity’s trustees consider that an audit is not required for this year under section 144(2) of the Charities Act 2011 (the 2011 Act) and that an independent examination is needed ~~.~~

It is my responsibility to:

~~-~~ state whether particular matters have come to my attention ~~.~~

Basis of independent examiner's report

My examination was carried out in accordance with the general Directions given by the Charity Commission ~~.~~ An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from you as trustees concerning any such matters ~~.~~ The procedures undertaken do not provide all the evidence that would be required in an audit and consequently no opinion is given as to whether the accounts present a “true and fair view” and the report is limited to those matters set out in the statement below ~~.~~

Independent examiner's statement

In connection with my examination, no matter has come to my attention:

~~-~~ to prepare accounts which accord with the accounting records and comply with the accounting requirements of the Charites Act have not been met; or

2 to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached ~~.~~

Mr L Frost ACCA of Nuvo Accountancy Limited

Millennium Court

First Avenue

Burton on Trent

Staffordshire DE14 2WH

Date: 22 January 2026

~~-~~ 13-