The Trustees, who are also the directors of the charitable company for the purposes of company law, and make up the Governing Body, present their annual report and the audited financial statements for the year ended 31 December 2024. The Trustees have adopted the provisions of the Companies Act 2006 and the Statement of Recommended Practice (SORP) “Accounting and Reporting by Charities” applicable to charities in preparing the annual report and financial statements of the charitable company in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).
The principal objectives of the charitable company are to take over the whole or any part of properties of the former Diocesan Trustees in Northern Ireland and to hold properties and investments impressed with Trustees for or in connection with the Church of Ireland in any part of Ireland.
The main activities of the charitable company are unchanged since last year and are principally that of acting as trustees to hold property and other investments for dioceses, parishes and other organisations of the Church of Ireland operating mainly in Northern Ireland. In the bulk of cases, monies are received by the Trustees from donations or bequests and, following investment, the net income therefrom is repaid to the parishes/dioceses or other church bodies under the terms of the trust documents.
The Trustees believe that the charitable company provides a public benefit in a number of ways and most obviously through its efforts to promote the advancement of religion. This is achieved through helping to provide a capital resource which in many cases, is very significant in maintaining parochial structures in areas of deprivation or sparse population. In providing resources to non-parochial organisations, the charitable company assists the church in working on the island and overseas in areas such as poverty relief, education, aid to refugees and help to many people dealing with other social, health and spiritual problems.
The Trustees have paid due regard to public benefit guidance issued by the Charity Commission in deciding what activities the charitable company should undertake.
In the year under review funds were received from parishes and other organisations based in separate dioceses. For the primary activities, namely holding properties on trust and investments held with Sarasin & Partners LLP, both the level of activity and the nature of the same have remained substantially unchanged from previous years, and Trustees expect that this will be sustained for the foreseeable future.
The charitable company had a net gain before other recognised gains and losses of £1,764,814 (2023- £896,662 gain). This includes revaluation gain on invested assets of £1,688,851 (2023- £1,044,075) as well as expenditure on administered funds of £1,869 (2023- £146,993).
Dividend income increased by £37,445 or 6.9% (2023- increase of £19,436 or 3.7%)
The charitable company’s policy is to retain a level of free reserves which provides credible cover for present and future uncertainties. Recognising the extent of the potential volatility in financial markets the Trustees agreed that there was a need to match these risks through the creation of an Income Reserve and a Special Reserve. These funds more adequately identify and protect the interests of the charitable company and the trusts impressed therewith. In 2015 this policy was fully enacted and has continued each year since: the Income Reserve is supplied from a surplus on distributable income and a fixed proportion of fees rebated and stands at £0 (2023- £0 ); the Special Reserve is funded by a fixed proportion of fee rebates and stands at £203,910 (2023- £180,216). During this period a transfer was made from the Income reserve to the Restricted Surplus Fund to ensure it remained equal to the level of cash held by the investment managers at year end. The Trustees are content that adequate funding is in place to ensure the charitable company can continue its operations and the financial statements can be signed off as a going concern.
The Trustees undertook a review of the Investment Management Mandate and asked four firms including managers Sarasin, to tender for the managing of the investments. Three of the firms were asked to present to the trustees and they decided to award the management to Sarasin.
The Trustees remain very content with the investment management of Sarasin & Partners LLP which has included production of regular commentaries on markets in general and on the charitable company’s performance in particular. In order to evaluate the performance of funds and the fund manager, the Trustees have adopted a benchmark.
The benchmark provides a basic framework which approximates from time to time to the strategy of the Trustees and which its investment manager thinks is most suitable to protect the long term strategy of the fund which is to provide capital growth and a strong yield. The actual make-up of the fund may vary in line with market conditions or sentiment. However, over the long term the benchmark will give a signal as to whether or not the investment profile is broadly in line with the strategy and if the components in total are operating in line with the average for each sector. The following benchmark was in place at the reporting date:
Over the year the fund produced total a return of +12.1% (2023- 9.1%) compared to a benchmark expectation of +14.3% (2023- 5.3%).
Close contact is kept with the investment manager and detailed monthly, quarterly and annual reports are received and distributed to members of the investment sub-committee. Aside from the normal distant communications, occasional meetings with the investment manager are held.
At the year end all of the Unit Trust's investments were held by way of holdings in the Sarasin Endowment Fund. The underlying asset class weighting of the portfolio at the reporting date was as follows:
The geographic break down of holdings at the reporting date was as follows:
As at the reporting date, the estimated gross yield of the portfolio was 2.6% (2023- 2.8%).
The charitable company maintains a fee structure in relation to investment and cash holdings. The charge on such income is shown on the Statement of Financial Activities as ‘Gross transfers between funds’. The charitable company makes no charge for property dealings beyond recovery of actual expenditure together with legal and statutory costs. The charitable company has also negotiated discounts on the management costs of large holdings of Sarasin’s own stocks. The Governing Body has determined that 50% of such receipts shall be used to bolster core income in support of administration, with the residue made available to the Income Reserve to share the benefit with investing entities both through enhanced distributions and the growth of a dividend reserve. A further Special Reserve has been created to give some protection for investing trusts in the event of significant market upheavals.
Through the use of a unitised structure managed by Sarasin & Partners LLP, the Trustees have developed a broadly based global approach to investment. The intention remains to secure a strong dividend base and the growth in value of the units.
The monthly reports submitted by Sarasin & Partners LLP show all transactions, all movements in value and cash within the portfolio. A drill-down summary of every holding is produced monthly to ensure that the units held are not over-exposing the portfolio to any particular risk.
With the exception of a single heritage asset, the Trustees treat property held as investment property and the properties are stated at fair value in accordance with FRS102. Any gains or losses made by the company through revaluations will be passed on to the parishes or dioceses.
A single heritage asset is held by the Trustees. Down Cathedral is a place of worship for the local community with historic and artistic qualities. The Cathedral is maintained for its contribution to knowledge and culture. Heritage assets are held by the Trustees on behalf of bodies of the Church of Ireland only when required by the other bodies who continue to preserve, manage and use the asset.
The Trustees have assessed the major risks to which the charitable company is exposed, in particular those related to the operations and finances of the charitable company and are satisfied that systems are in place to mitigate any exposure to the major risks.
The sub-committee responsible for risk management met on multiple occasions in 2024. It is available to review the affairs and security of the charitable company as directed by the Governing Body.
The Trustees intend to continue with the existing policy of providing an excellent and professional service to parishes, dioceses and other bodies of the Church of Ireland. The Trustees continue to devote considerable amounts of time and energy to consideration of the future of the charitable company, to ensure the charitable company provides the appropriate services to current and potential beneficiaries.
The Church of Ireland Trustees. is a charitable company limited by guarantee and does not have share capital. It is governed by a Memorandum and Articles of Association and the liability of each member is limited to an amount not exceeding £1. The charitable company was incorporated on 25 April 1924. The charitable company is recognised as a charity by HMRC (XN45816) and by the Charity Commission NIC109802.
The Trustees are the members of the Governing Body which usually meets four times per annum. Members of the Investment Subcommittee receive monthly investment management reports and meet quarterly to assess fund performance and make recommendations to the governing body. An Audit and Risk Subcommittee also meet on a quarterly basis to review the financial statements, oversee the annual audit and to ensure that the risks to which the organisation is exposed are assessed and mitigated against. This includes overseeing and reviewing a risk register. During the year, the day to day management of the charitable company is carried out by an external provider under the direction of the Trustees.
The general membership of the charitable company consists of Representative Church Body and Diocesan representatives together with bishops of those dioceses wholly or partially situated in Northern Ireland and other persons selected because of their specialist skills. The general membership is ultimately responsible for elections to the Governing Body which manages the charitable company.
The charitable company forms part of the much larger family of the Church of Ireland. In its work, it assists dioceses representing the bulk of the Church of Ireland on the whole island in terms of both parishes and population. It also assists many of the major charities connected with the church, operating both on the island and internationally. It holds investments and cash assets to maximise the benefits to investing charities.
The Trustees, who are also the directors for the purpose of company law, and who served during the year or were subsequently appointed are:
At the Annual General Meeting (AGM) held on 11 June 2024:
The Honorary Secretary, Mr M G Forde, resigned from both his roles as a Trustee and as Honorary Secretary. Mr M H Johnston and Mr D Manning were both appointed Honorary Secretaries.
The Honorary Treasurer, Dr R Peters Gallagher, resigned. Dr R Peters Gallagher was nominated and duly re-elected; and
Mrs D Ruddock and Mrs S E Witchell were both appointed as Trustees.
Trustees are recruited and appointed in accordance with the Articles of Association. Upon election, each trustee is given a copy of the Memorandum and Articles of Association and the latest Annual Report of the charitable company. They are also introduced to the legal and operational aspects of the charity to ensure they have an understanding of the nature of charity trusteeship and the responsibilities and duties that go therewith.
The Trustees have no employees and manage their affairs through an external provider.
None of the Trustees (or any persons connected with them) received any remuneration, benefits or expenses from the charitable company during the year.
Indemnity insurance for the Trustees was purchased by the charitable company during the year amounting to £1,393 (2023- £1,243).
In prior periods the Trustees utilised the Representative Church Body (the "RCB") for administrative services relating to the annual distribution of the unit trust dividend. This process has now been brought in-house. The transactions for the year and any outstanding balances are disclosed in the notes to the financial statements.
In preparing the report the Trustees have taken advantage of the small companies exemptions provided within Part 15 of the Companies Act 2006.
The Trustees report that the Church of Ireland Trustees is an exempted person under the terms of the Financial Services and Markets Act 2000.
In the Trustees' judgement, there are no funds held as custodian trustee on behalf of others.
The Trustees' report was approved by the Board of Trustees.
The Trustees, who are also the directors of Church of Ireland Trustees. for the purpose of company law, are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and regulation.
Company law requires the Trustees to prepare financial statements for each financial year. Under that law the Trustees have prepared the financial statements in accordance with United Kingdom Accounting Standards, comprising FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland”, and applicable law (United Kingdom Generally Accepted Accounting Practice). Under company law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of the affairs of the Charitable Company and of the incoming resources and application of resources, including the income and expenditure, of the Charitable Company for that period. In preparing these financial statements, the Charitable Company are required to:
select suitable accounting policies and then apply them consistently;
observe the methods and principles in the Statement of Recommended Practice: Accounting and Reporting by Charities;
make judgments and estimates that are reasonable and prudent; and
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Charity will continue to operate.
The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the transactions and disclose with reasonable accuracy at any time the financial position of the Charitable Company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Charitable Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
In accordance with Section 418, directors’ reports shall include a statement, in the case of each director in office at the date the directors’ report is approved, that:
(a) so far as the trustee is aware, there is no relevant audit information of which the company’s auditors are unaware; and
(b) he has taken all the steps that he ought to have taken as a trustee in order to make himself aware of any relevant audit information and to establish that the company’s auditors are aware of that information.
Opinion
We have audited the financial statements of Church of Ireland Trustees for the year ended 31 December 2024 which comprise the statement of financial activities (including income and expenditure account), statement of financial position and the related notes, 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 FRS 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 for 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 charity 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 for our opinion.
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 charity'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 other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider 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 our audit:
the information given in the trustees' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the trustees' report has been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the charity 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 in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of trustees' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
As explained more fully in the trustees' responsibilities statement, the trustees 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 charity'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 intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.
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:
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following:
the nature of the industry and sector, control environment and business performance including the design of the remuneration policies, key drivers for directors' remuneration, bonus levels and performance targets;
results of our enquiries of management about their own identification and assessment of the risks of irregularities;
any matters we identified having obtained and reviewed documentation of their policies and procedures relating to:
- identifying, evaluating and complying with laws and regulations and whether management were aware of any instances of non-compliance;
- detecting and responding to the risks of fraud and whether management have knowledge of any actual, suspected or alleged fraud;
- the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations.
the matters discussed among the audit engagement team including significant component audit teams and relevant internal specialists, including tax and valuations specialists regarding how and where fraud might occur in the financial statements and any potential indicators of fraud.
As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.
We also obtained an understanding of the legal and regulatory frameworks in operation, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included ongoing compliance with the UK Companies Act and tax legislation.
In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental for their ability to operate or to avoid a material penalty.
As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the trustees.
Conclude on the appropriateness of the trustees' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the charity's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the charity to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
This report is made solely to the 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 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 company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.
All income and expenditure derive from continuing activities.
Church of Ireland Trustees. is a private company limited by guarantee incorporated in Northern Ireland. The registered office is 6th Floor, East Tower, Lanyon Plaza, 8 Lanyon Place, Belfast, Co. Antrim, BT1 3LP, Northern Ireland.
The financial statements have been prepared in accordance with the charitable company's Memorandum and Articles of Association, the Companies Act 2006 and “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their financial statements in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)” (as amended for accounting periods commencing from 1 January 2019). The charitable company is a Public Benefit Entity as defined by FRS 102.
The financial statements are prepared in sterling, which is the functional currency of the charitable company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
At the time of approving the financial statements, the Trustees have a reasonable expectation that the charitable company has adequate resources to continue in operational existence for the foreseeable future.
Unrestricted funds are available for use at the discretion of the Trustees in furtherance of their charitable objectives unless the funds have been designated for other purposes. In addition, funds may be held in order to finance capital investment and working capital. These funds are the accumulated revenue surpluses of the charitable company.
Restricted funds are funds which are held under specific terms of trust and are not subject to the discretionary powers of the Trustees in their general operation. Amounts received are usually for the purpose of generating income for redistribution. Certain capital funds may be returnable on request.
Voluntary income received by the charitable company is included in full in the Statement of Financial Activities (SOFA) when received. Gifts in kind are valued at a reasonable estimate of their value to the charitable company.
Investment income is included in full together with the related tax credit, in the SOFA, when receivable.
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.
All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category.
Charitable activities represents the return of net dividends received to stated beneficiaries together with payments under trust on behalf of certain funds and the costs associated with the running costs of the charitable company.
Governance costs include those incurred in the governance of its assets and are associated with constitutional, statutory and strategic requirements.
Support costs are actual costs and are allocated to charitable activities.
Investment property, which is property held in trust for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. The surplus or deficit on revaluation is recognised in the statement of financial activities.
Heritage assets are tangible assets with historic or artistic qualities that are held and maintained principally for their contribution to knowledge and culture. Where it is not possible to obtain a true cost or value of the asset in such a way that would be beneficial to the users of the financial statements they have not been recognised in the Statement of Financial Position.
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.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. An impairment loss is recognised immediately in income/(expenditure) for the year, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised immediately, unless the relevant asset is carried in at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
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.
The charitable company only has financial assets and financial liabilities of a kind that qualify as basic financial instruments.
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, 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.
Financial liabilities are derecognised when the charitable company’s contractual obligations expire or are discharged or cancelled.
In the application of the charitable 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.
In the Trustees' judgement, the charitable company operates a pooling arrangement on behalf of parishes, dioceses and other bodies connected to the Church of Ireland. Investment properties with a carrying value of £2,300,141 (2023- £2,300,141) are managed as part of the shared pool but are specifically identifiable to the investees. No investee has a sole interest in investment properties only, the assets are treated as one pool of resources with gains reinvested if applicable. In accordance with section 22.7 of the Charities SORP the pooled assets have been recognised on the charitable company's balance sheet and held in a restricted fund.
There are no critical accounting estimates and assumptions.
Commission income is generated by a 5% charge levied on the distributions to unit holders. Trustees' have disclosed this figure as a separate income line to provide greater clarity to the users of the financial statements.
None of the Trustees (or any persons connected with them) received any remuneration, benefits or expenses from the charitable company during the year (2023- none).
Indemnity insurance for the Trustees was purchased by the charitable company during the year amounting to £1,393 (2023- £1,243).
The average monthly number of employees during the year was:
All administrative functions during the year were subcontracted to an external provider.
The charitable company is a charity recognised by HM Revenue & Customs, and, as such, is entitled to certain tax exemptions on income and profits from investments and surpluses on any trading activities carried on in furtherance of its primary objectives, if these profits and surpluses are applied solely for charitable purposes. The charitable company is not registered for VAT and accordingly all its expenditure is recorded inclusive of any VAT incurred.
Other movements in reserves represents the net inflow and outflow of both Investment properties and Investments. For Investment properties there were no additions and no disposals. The total movement on reserves of £41,262 represents additions made by parishes in to the Sarasins Unit Trust amounting to £104,904 and withdrawals from the Sarasins Unit Trust of £63,642.
Down Cathedral was derecognised as an investment asset in 2019 and treated as the charity's sole heritage asset. The Cathedral is a place of worship for the local community with historic and artistic qualities. It is maintained for its contribution to knowledge and culture. Parts of the building date back to 1183 and the grounds contain the burial place of St Patrick. It is not possible to obtain a true cost or value of the asset in such a way that would be beneficial to the users of the financial statements therefore it is not recognised in the Statement of Financial Position.
Investment property comprises land and buildings held on behalf of dioceses, parishes and other Church of Ireland organisations.
During the year, no properties were sold.
The fair value of the properties is based on valuations carried out in April 2022 and December 2021 by an external valuer, Neill Estate Agents, or by experts who are RICS registered and have many years experience in the property field. There is one site with a value of £15,000 for which there has not been a recent valuation carried out. The Trustees are satisfied that the valuations reflect the market value at 31 December 2024.
The details of the market value of the fixed asset investments are provided by Sarasin & Partners LLP based on the latest available mid-market prices at the valuation date.
The historical cost of fixed asset investments amounts to £18,099,377 (2023- £18,045,476).
Included in other debtors is £14,600 (2023- £12,775) in respect of a fee rebate from Sarasin & Partners LLP and £7,631 (2023 - £7,735) owed in land rent ultimately due to Rathmullan Parish.
Included in other creditors are dividends payable of £189,980 (2023- £266,080), amounts due to Down & Connor & Dromore Diocesan Board of Education of £20,000 (2023- £20,000) and land rents of £7,249 (2023- £6,987). Included in accruals are audit fees of £6,810 and administrative fees of £3,360 (2023- £12,600).
The income funds of the charity include restricted funds comprising the following balances of funds held on trust for specific purposes:
Property holdings - represents investment properties held upon trust.
Fund investments - represents fixed asset investments held upon trust.
Restricted surplus fund- represents surplus funds created when dividend income from the investment manager exceeds distribution made to unit holders. This surplus is used when distributions exceed dividends, its minimum value at year end is the value of the cash held by the investment managers. The designated reserves are used to ensure this fund does not fall below its minimum value.
Administered funds- represents cash held on deposit for trusts where the trustees provide an administrative function.
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. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.
Income reserve - This fund is supplied from a fixed proportion of fee rebates. The Income Reserve is drawn upon to ensure the Restricted surplus fund does not fall below the value of the cash held by investment managements.
Special reserve - These funds have been designated to protect the key areas of distribution and market instability. All reserves are managed and applied by the Trustees as they deem necessary for the protection and benefit of the charitable company and the underlying trusts impressed therewith. The Special Reserve is supplied from a fixed proportion of fee rebates. The designated reserves ought to be considered in the wider context of the unrestricted funds of which they are a part.
During the year the charitable company entered into no transactions with related parties.
The following amounts were outstanding at the reporting end date:
The charitable company is a company limited by guarantee. Each member has undertaken to contribute £1 to the assets of the charitable company to meet its liabilities if called on to do so.
The charitable company considers the Board of Trustees to be its ultimate controlling party.