Charity registration number 271151
Company registration number 00366710 (England and Wales)
THE FREE CHURCH OF ENGLAND CENTRAL TRUST
ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
THE FREE CHURCH OF ENGLAND CENTRAL TRUST
LEGAL AND ADMINISTRATIVE INFORMATION
Trustees
The Right Reverend Dr P Hunt
The Right Reverend Dr J Fenwick
Mr W A Clements
Miss L A Secker
The Reverend R Wilson
The Reverend M Spiers
Mrs N Stenstrom
The Reverend Dr J Watson
Mrs T J C Sahadevan
The Reverend M P Firth
(Appointed 1 June 2023)
The Reverend B A Murphy
(Appointed 1 June 2023)
The Reverand A G Ford
(Appointed 23 May 2024)
Miss E C Garratt
(Appointed 23 May 2024)
Secretary
The Reverend Dr R Stephen
Charity number
271151
Company number
00366710
Registered office
Azzurri House
Walsall Road
Aldridge
Walsall
England
WS9 0RB
Independent examiner
Christopher Hession C.A.
Azzurri House
Walsall Road
Aldridge
Walsall
England
WS9 0RB
THE FREE CHURCH OF ENGLAND CENTRAL TRUST
CONTENTS
Page
Trustees' report
1 - 6
Independent examiner's report
7
Statement of financial activities
8
Balance sheet
9 - 10
Notes to the financial statements
11 - 22
THE FREE CHURCH OF ENGLAND CENTRAL TRUST
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

The Trustees present their annual report and financial statements for the year ended 31 December 2023.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the Company's governing document (Memorandum and Articles of Association), the Companies Act 2006 and "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) (effective 1 January 2019)".

Objectives and activities

The charitable objects of the Company are to act as a Central Board of Trustees for The Free Church of England, otherwise called The Reformed Episcopal Church (hereinafter called 'the Church'), and to promote aid and further the objects and work of and to perform work and to transact business in connection with the Church and there has been no change in these during the year.

The aims of the charity are the advancement of the Christian Faith by supporting the Churches of the Denomination of the Free Church of England in worship and witness; by planting new Churches; and by activities supportive of these aims.

 

The charity is committed to advancing the faith of the Free Church of England by seeking new followers and facilitating the practice of the faith by existing followers. It also seeks to proselytise new followers sensitively and without coercion.

It does by (inter alia):-

sermons and religious seminars, talks, meetings and conferences

the encouragement and support of pastoral work;

promoting the study of religious teachings and practices and scriptures;

support of religious office holders for acting as such, including the provision of stipends and other living allowances, pensions and retirement accommodation;

the provision and maintenance of a buildings used for religious practice.

 

 

The Trustees have paid due regard to the public benefit guidance published by the Charity Commission in reviewing the charity's objectives and activities.

The Trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.

Services continue in all Churches of the Denomination allowing for the Christian Faith to be shared publicly in worship and witness, alongside the Occasional Offices (Baptisms, Solemnisation of Matrimony and Funerals) and ongoing Pastoral Care. 

 

Grants are made to further the work of The Free Church of England.

THE FREE CHURCH OF ENGLAND CENTRAL TRUST
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Achievements and performance

The Free Church of England Central Trust has continued to work in line with the charitable objectives of the institution. The agendas for all meetings now follow a pattern where the charitable objectives are explicit and this is reflected in the headings of the report.

 

1. Property:

The FCECT continues to actively engage appropriately as Custodian Trustees of all properties vested in Central Trust. We have engaged another solicitors’ practice, Freeths, to advise on trusteeships and have consulted with lawyers (on their advice) to try to resolve historic issues.

The sale of the site of St David’s Church, Preston, was finally agreed and the land is now being redeveloped for community housing.

A new Parsonage for the Church in Morecambe has been purchased, in part utilising the funds realised from the sale of St David’s, Preston, alongside funds from Central Trust.

The uninsurable Parsonage at Harlesden will be sold and a new property purchased with the proceeds.

The Church Hall at Walsall was being renovated so that it could be used more extensively and the Church sold.

2. Central Board of Finance:

There had been six applications to the Home Mission Fund for this current year and all grants were approved.

 

St George’s, Blackburn        Warm Hub Initiative        £300

Christ Church, Broadstairs        Printer for Publicity        £300

Christ Church Willesborough    Books & Carol Service Publicity    £292

Christ the Redeemer, Chudleigh    Web Costs and cards        £150

St John’s, Tottington        Printing & general outreach    £300

St Andrew’s, Bentley        Jubilee Tea Party            £300

 

As part of the restructuring of how we ‘do business’ we have agreed budgets for the various charitable objectives so that there are funds to apply to projects as they come to fruition.

3. Training for the Ministry of the Church:

The Bishops’ Examining Chaplain had to retire and the Denomination has now adopted a clearly defined Ministry Pathway that is published on the website. The provision of theological training for ministry candidates has been agreed with the London School of Theology and the syllabus, as is required, has been agreed by the General Council.

In partnership with the Board of Foreign Missions of the Reformed Episcopal Church and hosted by Bishop Gerhard Meyer, some of our Clergy attended an International Church Planting event in Germany in the summer of 2023.

THE FREE CHURCH OF ENGLAND CENTRAL TRUST
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -

 

4. Maintenance for the Ministry:

The Denominational Stipend Scheme and the Denominational Pension scheme are fully operational. There had been an agreed raise to the uplift grants made from the Stipend Scheme.

A formal document, a Working Agreement for Clergy, has been drafted and agreed and this forms the basis of engaging Clergy (together with a detailed letter of appointment).

St George’s, Blackburn, had drawn up a Parish Profile in a new style as they look to appoint a new Minister.

5. Church Planting and Evangelism:

The Church at Morecambe has been reopened under the leadership of the Rev’d Brett Murphy, incorporating a Community Pantry that attracts some income to support the stipend. The Rev’d Matthew Firth has initiated a new work in York, to which the funds realised from the sale of St Stephen’s, Middlesborough are applied.

6. Youth Education:

The TWiGG group based at St Andrew’s, Bentley and St Barnabas on the Isle of Man remain the most active Churches with regard to Youth Education. It is recognised that this is an area of weakness and needs to be addressed.

 

2023 has been a positive and active year in which the groundwork for current and future growth has been addressed.

The investments made during the year have performed in line with markets generally and the Trustees consider the investment manager's performance to be satisfactory.

Financial review

The Company has operated satisfactorily during the year in the furtherance of its principal activities and a summary of those activities is set out in the Statement of Financial Activities on page 4.

 

There was an increase of funds of £92,299 (2022 - £186,538 decrease).

 

As at 31 December 2023 the Company had reserves of £985,241 (2022 - £892,942) as detailed on the Balance Sheet on page 6.

It is the policy of the Company that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to between three and six month’s expenditure. The Trustees considers that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the charity's current activities while consideration is given to ways in which additional funds may be raised. This level of reserves has been maintained throughout the year.

There are no restrictions on the Company's power to invest. The investment strategy is to maintain the long term purchasing power of the capital against inflation whilst achieving a balance between capital growth and income.

 

The investments are managed within the financial and ethical guidelines set down by the Trustees but otherwise at the discretion of the investment managers.

The Trustees have assessed the major risks to which the Company is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.

THE FREE CHURCH OF ENGLAND CENTRAL TRUST
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -
Structure, governance and management

The Company is limited by guarantee and does not have a share capital. It is licensed by the Department of Industry to be registered without the addition of the word "Limited" to its name.

 

The Company was incorporated on 23 April 1941 under the Companies Act 1929.

 

The Company is a registered Charity, under the Charities Act 2011.

The Trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:

 

The Right Reverend Dr P Hunt
The Right Reverend Dr J Fenwick
Mr W A Clements
Mr C Mills
(Resigned 3 October 2023)
Miss L A Secker
The Reverend R Wilson
The Reverend M Spiers
Mrs N Stenstrom
The Reverend A K Roberts
(Resigned 1 April 2024)
The Reverend Dr J Watson
Mrs T J C Sahadevan
The Reverend G E Andow
(Resigned 8 February 2023)
The Reverend M P Firth
(Appointed 1 June 2023)
The Reverend B A Murphy
(Appointed 1 June 2023)
The Reverand A G Ford
(Appointed 23 May 2024)
Miss E C Garratt
(Appointed 23 May 2024)

All those elected to serve on the General Council of the Free Church of England are also appointed Trustees.  Article III states that:

 

Convocation shall appoint at its Annual Meeting a Council of its members and delegate to such Council such administrative powers and functions as Convocation shall from time to time resolve. The Council thus appointed shall hold once until the next succeeding Annual Meeting of Convocation.

 

No other person or persons within the Free Church of England or external to it has the power or authority to appoint Trustees.

 

None of the Trustees have any beneficial interest in the company. All of the Trustees are members of the Company and guarantee to contribute £1 in the event of a winding up.

 

THE FREE CHURCH OF ENGLAND CENTRAL TRUST
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 5 -

Committees and working parties

1.1    The Executive Council may:

1.1.1    establish Committees consisting of those persons whom the Executive Council decide;

1.1.2    delegate to a Committee any of its powers; and

1.1.3    revoke a delegation at any time.

1.2    The Executive Council may establish Working Parties consisting of those persons whom the Executive Council decide. A Working Party may not take decisions on behalf of the Executive Council but may consider issues in depth with a view to making recommendations to the Executive Council.

1.3    The members of a Committee or a Working Party are to be appointed by the Executive Council but the Executive Council may give a Committee or a Working Party the right to co-opt individuals to its membership. The Executive Council is to determine the chair of each Committee or Working Party.

1.4    Each member of a Committee or Working Party (including the chair) is to hold office from the date of his appointment until the term of office for which he has been appointed expires or until he resigns or is removed by the Executive Council from the Committee or Working Party.

1.5    The Executive Council must determine the quorum for each Committee and Working Party it establishes.

1.6    The Executive Council must specify the financial limits within which any Committee may function. A Working Party can have no authority to incur expenditure.

1.7    Every Committee or Working Party must report its proceedings and decisions to the Executive Council as the Executive Council determines.

1.8    A meeting of a Committee or Working Party may be held entirely through telephone, video conferencing or other communications equipment, via a mixture of such communications equipment or with some people physically present at the meeting whilst others are present via communications equipment. If all the people participating in the meeting are not in the same place, they may decide that the meeting is to be treated as taking place wherever any of them is.

Funds held as custodian trustee

The Free Church of England Central Trust holds funds as Trustee on behalf of the Denomination and various churches within the denomination. The objects of the denomination and the various churches within are the advancement of the Christian religion by means and in accordance with the principles of The Free Church of England.

 

Investments at market value        £876,699 (2022 - £806,913)

Cash deposits and other current assets    £96,868 (2022 - £152,884)

THE FREE CHURCH OF ENGLAND CENTRAL TRUST
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 6 -

The amounts held as custodian trustee for each church/trust as at 31 December 2023 are as follows:

 

 

 

2023

2022

Emmanuel Church, Barnstable

£190,300

£180,847

Crowborough Rectory

£33,209

£31,559

Crowborough Church, East Sussex

£98,415

£93,526

Emmanuel Church, Carshalton

£71,270

£66,909

Putney

£85,227

£79,254

Christchurch Exmouth Patten

£119,566

£109,887

Farnham SSF

£71,788

£68,412

St Georges, Blackburn

£42,620

£39,695

North Diocese

£102,843

£98,630

St Stephen's Church, Middlesbrough

£158,329

£191,078

Total

£973,567

£959,797

 

 

The objects of these churches and trusts are aligned and for the benefit of the Free Church of England Central Trust.

 

Funds held as custodian trustee are accounted for as separate funds within the charity's books and records.

The Trustees' report was approved by the Board of Trustees.

The Reverend Dr R Stephen
The Right Reverend Dr J Fenwick
Company Secretary
Trustee
23 May 2024
THE FREE CHURCH OF ENGLAND CENTRAL TRUST
INDEPENDENT EXAMINER'S REPORT
TO THE TRUSTEES OF THE FREE CHURCH OF ENGLAND CENTRAL TRUST
- 7 -

I report to the Trustees on my examination of the financial statements of The Free Church of England Central Trust (the Company) for the year ended 31 December 2023.

Responsibilities and basis of report

As the Trustees of the Company (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 (the 2006 Act).

Having satisfied myself that the financial statements of the Company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the Company’s financial statements carried out under section 145 of the Charities Act 2011 (the 2011 Act). In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

Independent examiner's statement

Since the Company’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of the Institute of Chartered Accountants in England and Wales, which is one of the listed bodies.

I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

1

accounting records were not kept in respect of the Company as required by section 386 of the 2006 Act; or

2

the financial statements do not accord with those records; or

3

the financial statements do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination; or

4

the financial statements have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).

I am aware of ongoing correspondence with the Charity Commission in relation to various matters which may have occurred over recent years. As at the date of signing this report the matters remain outstanding and as such I have not noted this as a matter of material concern.

 

I confirm that there are no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.

Christopher Hession C.A.
Azzurri House
Walsall Road
Aldridge
Walsall
WS9 0RB
England
Dated: 5 September 2024
THE FREE CHURCH OF ENGLAND CENTRAL TRUST
STATEMENT OF FINANCIAL ACTIVITIES
INCLUDING INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
Unrestricted
Designated
Restricted
Total
Unrestricted
Designated
Restricted
Total
funds
funds
funds
funds
funds
funds
2023
2023
2023
2023
2022
2022
2022
2022
Notes
£
£
£
£
£
£
£
£
Income from:
Donations and legacies
3
500
-
-
500
-
-
-
-
Charitable activities
4
202,211
-
52,770
254,981
723
-
55,684
56,407
Investments
5
3,478
-
-
3,478
1,067
-
-
1,067
Total income
206,189
-
52,770
258,959
1,790
-
55,684
57,474
Charitable activities
6
133,780
-
86,205
219,985
53,537
-
98,285
151,822
Other expenditure
12
8
-
4
12
-
-
-
-
Total expenditure
133,788
-
86,209
219,997
53,537
-
98,285
151,822
Net gains/(losses) on investments
13
20,291
6,070
26,976
53,337
(35,071)
(10,492)
(46,627)
(92,190)
Net income/(expenditure) and movement in funds
92,692
6,070
(6,463)
92,299
(86,818)
(10,492)
(89,228)
(186,538)
Reconciliation of funds:
Fund balances at 1 January 2023
459,100
104,961
328,881
892,942
545,918
115,453
418,109
1,079,480
Fund balances at 31 December 2023
551,792
111,031
322,418
985,241
459,100
104,961
328,881
892,942

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.

THE FREE CHURCH OF ENGLAND CENTRAL TRUST
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 9 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
15
666,932
260,500
Investments
16
271,950
476,613
938,882
737,113
Current assets
Debtors
17
40,254
25,137
Cash at bank and in hand
37,805
166,913
78,059
192,050
Creditors: amounts falling due within one year
19
(31,572)
(36,093)
Net current assets
46,487
155,957
Total assets less current liabilities
985,369
893,070
Creditors: amounts falling due after more than one year
20
(128)
(128)
Net assets
985,241
892,942
Income funds
Restricted funds
22
322,418
418,109
Designated funds
23
111,031
115,453
Unrestricted funds
551,792
459,100
985,241
892,942
THE FREE CHURCH OF ENGLAND CENTRAL TRUST
BALANCE SHEET (CONTINUED)
AS AT
31 DECEMBER 2023
31 December 2023
- 10 -

The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 December 2023.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

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

The financial statements were approved by the Trustees on 23 May 2024
Mr W A Clements
Trustee
Company Registration No. 00366710
THE FREE CHURCH OF ENGLAND CENTRAL TRUST
NOTES TO THE  FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
1
Accounting policies
Charity information

The Free Church of England Central Trust is a private company limited by guarantee incorporated in England and Wales. The registered office is Azzurri House, Walsall Road, Aldridge WS9 0RB.

1.1
Accounting convention

The financial statements have been prepared in accordance with the Company's governing document, the Companies Act 2006 and "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) (effective 1 January 2019)". The Company is a Public Benefit Entity as defined by FRS 102.

 

The Company has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows.

The financial statements are prepared in sterling, which is the functional currency of the Company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2
Going concern

At the time of approving the financial statements, the Trustees have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. Thus the Trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Charitable funds

Unrestricted funds are available for use at the discretion of the Trustees in furtherance of their charitable objectives.

Restricted funds are subject to specific conditions by donors or grantors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

Endowment funds are subject to specific conditions by donors that the capital must be maintained by the Company.
1.4
Income
Income is recognised when the Company is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Cash donations are recognised on receipt. Other donations are recognised once the Company has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Legacies are recognised on receipt or otherwise if the Company has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.
THE FREE CHURCH OF ENGLAND CENTRAL TRUST
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 12 -
1.5
Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.

 

Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.

Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs allocated directly to such activities and those costs of an indirect nature to support them.

Grants are accounted for when the company is committed to paying them.

Governance costs include those incurred in the governance of the charity and are primarily associated with constitutional and statutory requirements.

1.6
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Freehold land and buildings
2% on cost and nil

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.

The freehold properties purchased in 2022 and 2023 are not depreciated, on the basis of them having such a long useful life and a high residual value.

1.7
Fixed asset investments

Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year. Transaction costs are expensed as incurred.

A subsidiary is an entity controlled by the Company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.8
Impairment of fixed assets

At each reporting end date, the Company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

THE FREE CHURCH OF ENGLAND CENTRAL TRUST
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 13 -
1.9
Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.10
Financial instruments

The Company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the Company's balance sheet when the Company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the Company’s contractual obligations expire or are discharged or cancelled.

1.11
Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the Company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.12
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

THE FREE CHURCH OF ENGLAND CENTRAL TRUST
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 14 -
2
Critical accounting estimates and judgements

In the application of the Company’s accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

3
Donations and legacies
Unrestricted
Total
funds
2023
2022
£
£
Legacies receivable
500
-
4
Income from charitable activities
Unrestricted
Restricted
Total
Unrestricted
Restricted
Total
funds
funds
funds
funds
2023
2023
2023
2022
2022
2022
£
£
£
£
£
£

Incoming resources from charitable activities - contributions from churches

-
52,770
52,770
-
55,684
55,684
Other income
202,211
-
202,211
723
-
723
202,211
52,770
254,981
723
55,684
56,407
5
Income from investments
Unrestricted
Unrestricted
funds
funds
2023
2022
£
£
Interest receivable
3,478
1,067

Interest receivable comprised £824 loan interest (2022 - £742) and £2,654 bank interest (2022 - £325).

THE FREE CHURCH OF ENGLAND CENTRAL TRUST
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 15 -
6
Charitable activities

 

 

2023
2022
£
£
Stipend costs
138,874
100,924
Depreciation and impairment
229
229

Book-keeping fees

456
2,688

Accountancy

11,312
12,546

General expenses

5,135
8,746

Legal and professional fees

18,646
21,710

Charges and fees

1,112
890

Property repairs

14,206
1,506
189,970
149,239
Grant funding of activities (see note 7)
30,015
2,583
219,985
151,822
Analysis by fund
Unrestricted funds
133,780
53,537
Restricted funds
86,205
98,285
219,985
151,822
7
Grants payable

 

 

2023
2022
£
£
Grants
30,015
2,583
30,015
2,583
8
Net movement in funds
2023
2022
£
£
The net movement in funds is stated after charging/(crediting):
Fees payable to the charity's independent examiner:
- for the independent examination of the charity's financial statements
2,000
2,000
- for other assurance services
9,312
7,626
Depreciation of owned tangible fixed assets
229
229
THE FREE CHURCH OF ENGLAND CENTRAL TRUST
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 16 -
9
Independent Examiner's Remuneration
Fees payable to the Charity's Independent Examiner:
2023
2022
£
£
Independent Examination of the Charity's Annual Accounts
2,000
2,000
Non-audit services
Accountancy and payroll services
9,312
7,626
10
Trustees

None of the Trustees (or any persons connected with them) received any remuneration or benefits from the Company during the year.

11
Stipend

The average monthly number of office holders receiving a stipend during the year was:

2023
2022
Number
Number
Ministers
6
5
General Secretary
1
1
Total
7
6
Employment costs
2023
2022
£
£
Stipends
132,763
95,419
Social security costs
5,021
4,491
Other pension costs
1,090
1,014
138,874
100,924
There were no employees whose annual remuneration was £60,000 or more.
12
Other expenditure
Unrestricted
Restricted
Total
Unrestricted
Restricted
Total
funds
funds
funds
funds
2023
2023
2023
2022
2022
2022
£
£
£
£
£
£
Interest on late PAYE
8
4
12
-
-
-
8
4
12
-
-
-
THE FREE CHURCH OF ENGLAND CENTRAL TRUST
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 17 -
13
Net gains/(losses) on investments
Unrestricted
Designated
Restricted
Total
Unrestricted
Designated
Restricted
Total
funds
funds
funds
funds
funds
funds
2023
2023
2023
2023
2022
2022
2022
2022
£
£
£
£
£
£
£
£
Gain/(loss) on investments
20,291
6,070
26,976
53,337
(35,071)
(10,492)
(46,627)
(92,190)
THE FREE CHURCH OF ENGLAND CENTRAL TRUST
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 18 -
14
Taxation

The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.

15
Tangible fixed assets
Freehold land and buildings
£
Cost
At 1 January 2023
262,790
Additions
406,661
At 31 December 2023
669,451
Depreciation and impairment
At 1 January 2023
2,290
Depreciation charged in the year
229
At 31 December 2023
2,519
Carrying amount
At 31 December 2023
666,932
At 31 December 2022
260,500

 

During the year a house was purchased in Morecambe.

16
Fixed asset investments
Listed investments
Other investments
Total
£
£
Cost or valuation
At 1 January 2023
476,513
100
476,613
Valuation changes
53,337
-
53,337
Withdrawals
(258,000)
-
(258,000)
At 31 December 2023
271,850
100
271,950
Carrying amount
At 31 December 2023
271,850
100
271,950
At 31 December 2022
476,513
100
476,613
2023
2022
Other investments comprise:
Notes
£
£
Investments in subsidiaries
100
100
THE FREE CHURCH OF ENGLAND CENTRAL TRUST
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
16
Fixed asset investments
(Continued)
- 19 -
17
Debtors
2023
2022
Amounts falling due within one year:
£
£
Other debtors
40,254
25,137

Other debtors includes a loan from the Central Trust to St Jude's Church, Walsall. Interest is charged at 3%. There are no fixed repayment terms. The balance owed to the Central Trust as at 31 December 2023 was £38,161 (2022 - £25,137).

18
Loans and overdrafts
2023
2022
£
£
Interest free loans
128
128
Payable after one year
128
128

 

 

19
Creditors: amounts falling due within one year
2023
2022
£
£
Other creditors
31,572
36,093
20
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Other loans
18
128
128
21
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
1,090
1,014
THE FREE CHURCH OF ENGLAND CENTRAL TRUST
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
21
Retirement benefit schemes
(Continued)
- 20 -

The Company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the Company in an independently administered fund.

22
Restricted funds

The restricted funds of the charity comprise the unexpended balances of donations and grants held on trust subject to specific conditions by donors as to how they may be used.

At 1 January 2023
Incoming resources
Resources expended
Transfers
Gains and losses
At 31 December 2023
£
£
£
£
£
£
Southern Diocese Bishops Fund
85,114
-
(10,000)
-
-
75,114
National Stipend Scheme
240,995
52,770
(76,209)
-
26,976
244,532
Russian Church Appeal
2,772
-
-
-
-
2,772
328,881
52,770
(86,209)
-
26,976
322,418
Previous year:
At 1 January 2022
Incoming resources
Resources expended
Transfers
Gains and losses
At 31 December 2022
£
£
£
£
£
£
Southern Diocese Bishops Fund
85,114
-
-
-
-
85,114
National Stipend Scheme
330,223
55,684
(98,285)
-
(46,627)
240,995
Russian Church Appeal
2,772
-
-
-
-
2,772
418,109
55,684
(98,285)
-
(46,627)
328,881

a) The Southern Diocese Stipend Fund represents funds set aside to augment stipends to clergy in the Southern Diocese.

b) The Russian Church Appeal represents funds available to assist the development of a church in St Petersburg, Russia.

 

THE FREE CHURCH OF ENGLAND CENTRAL TRUST
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 21 -
23
Designated funds
The income funds of the charity include the following designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes:
At 1 January 2023
Gains and losses
At 31 December 2023
£
£
£
Clergy Benevolent Fund
104,860
6,070
110,930
Somerville Bequest
101
-
101
104,961
6,070
111,031
104,961
6,070
111,031
Previous year:
At 1 January 2022
Gains and losses
At 31 December 2022
£
£
£
Clergy Benevolent Fund
115,352
(10,492)
104,860
Somerville Bequest
101
-
101
115,453
(10,492)
104,961

a) The Clergy Benevolent Fund is used to assist retired clergy of The Free Church of England and their widows and to augment pension contributions on behalf of serving clergy of The Free Church of England.

 

b) The Somerville Bequest is used to assist the running of The Free Church of England Central Trust.

24
Unrestricted funds

The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used.

At 1 January 2023
Incoming resources
Resources expended
Transfers
Gains and losses
At 31 December 2023
£
£
£
£
£
£
General funds
459,100
206,189
(133,788)
-
20,291
551,792
459,100
206,189
(133,788)
-
20,291
551,792
THE FREE CHURCH OF ENGLAND CENTRAL TRUST
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
24
Unrestricted funds
(Continued)
- 22 -
Previous year:
At 1 January 2022
Incoming resources
Resources expended
Transfers
Gains and losses
At 31 December 2022
£
£
£
£
£
£
General funds
545,918
1,790
(53,537)
-
(35,071)
459,100
545,918
1,790
(53,537)
-
(35,071)
459,100
25
Analysis of net assets between funds
Unrestricted
Designated
Restricted
Total
funds
funds
funds
2023
2023
2023
2023
£
£
£
£
Fund balances at 31 December 2023 are represented by:
Tangible assets
666,932
-
-
666,932
Investments
(142,521)
76,095
338,376
271,950
Current assets/(liabilities)
27,509
34,936
(15,958)
46,487
Long term liabilities
(128)
-
-
(128)
551,792
111,031
322,418
985,241
Unrestricted
Designated
Restricted
Total
funds
funds
funds
2022
2022
2022
2022
£
£
£
£
Fund balances at 31 December 2022 are represented by:
Tangible assets
260,500
-
-
260,500
Investments
95,188
70,025
311,400
476,613
Current assets/(liabilities)
103,540
34,936
17,481
155,957
Long term liabilities
(128)
-
-
(128)
459,100
104,961
328,881
892,942
26
Related party transactions

During the year the Company paid £1,105 (2022 - £1,854) to Mrs Sharon Clements, the wife of a Trustee, for book-keeping services.

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