THE ARMY ROMAN CATHOLIC TRUST FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 Charltv Number 1051643
THE ARMY ROMAN CATHOLIC TRUST
INDEX TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021
| Members of the board and professional advisers | Page 1 |
|---|---|
| Trustees' annual report | Pages 2 to 5 |
| Independent examiners' report | Page 6 |
| Statement of financial activities | Page 7 |
| Balance sheet | Page 8 |
| Notes to the financial statements | Pages 9 to 15 |
THE ARMY ROMAN CATHOLIC TRUST
Page 1
MEMBERS OF THE BOARD AND PROFESSIONAL ADVISERS
The Board of Trustees Father M Fava (Ex-Officio) (resigned 15 October 2020 ) P Firth Father P Hanrahan CF (Ex-Officio) Major General J S Kerr CBE Rt Rev Bishop P. Mason (Ex Officio) Colonel D Morgan OBE R A Smith MBE TD DL KSG - Chairman (resigned 16 July 2020) Father I Stevenson (Ex-Officio) appointed 23 November 2020) Wing Commander C P Thorpe - Chairman (appointed 16 July 2020) Principal Address St. Michael and St. George Parish Office Queens Avenue Aldershot Hampshire GU11 2BY Independent Examiner Mark Dickinson FCA Wise & Co Chartered Accountants Wey Court West Union Road Farnham Surrey GU9 7PT Bankers Royal Bank of Scotland Holts Farnborough Branch 200 Fowler Avenue Farnborough Business Park Farnborough Hampshire GU14 7JP Investment Managers BlackRock Investment Management (UK) Limited PO Box 9036 Chelmsford Essex CM99 2XD
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TRUSTEES' ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2021
The trustees have the pleasure in presenting their report and the financial statements of the charity for the year ended 31 March 2021.
Legal Status
The Army Roman Catholic Trust was created by a Declaration of Trust dated 17th May 1954, as varied or affected by Schemes of Arrangement of the Charity Commissioners dated 20th June 1994 and 14th April 2000.
The Army Roman Catholic Trust is a Registered Charity, charity number 1051643.
Trustees Appointments and New Trustee Proceedings
The ex-officio trustees are appointed by virtue of their respective offices. Co-optative trustees are appointed by a resolution of the trustees passed at a special meeting.
The chairman of trustees contacts new ex-officio trustees and potential new lay trustees prior to attendance at their first trustees meeting, to tell them about the background and activities of the trust. All new trustees are also provided with a copy of the Charity Commission guide "The Essential Trustee: what you need to know".
Objects of the Trust
The objects of the trust are the advancement of the Roman Catholic Religion among members of Her Majesty's Army and the welfare of Roman Catholics of Her Majesty's Army.
Connected Charities
The following Charities are connected to The Army Roman Catholic Trust.
| Vicariate Headquarters Trust | Royal Air Force Roman Catholic |
|---|---|
| 26 The Crescent | Church Purposes Fund |
| Farnborough | The Chaplaincy Centre |
| Hampshire | RAF Odiham |
| GU14 7AS | Hook |
| Hampshire | |
| RG29 1QT | |
| Royal Navy (Roman Catholic) Trust | The Roman Catholic Bishopric of the Forces (GB) |
| Royal Navy Catholic Chaplaincy | Wellington House |
| Building 1/020 | St Omer Barracks |
| Admiralty House North Wing (PP 13) | Aldershot |
| HM Naval Base | Hampshire |
| Portsmouth | GU11 2BG |
| Hampshire | |
| PO1 3LR |
Investment Powers
Under the Trust Deed, the charity has the power to make any investment which the trustees see fit. BlackRock Investment Management (UK) Limited invest all of the funds into the Armed Forces Charities Growth and Income Fund.
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TRUSTEES' ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2021
Risks
The major risks to which the charity is exposed, as identified by the trustees, have been reviewed and systems have been established to mitigate those risks.
Reserves
The trustees are resolved to ensure that income is expended upon the objects of the charity, taking one year with another. Reserves, which principally arise from the appreciation over time of the portfolio of investments, are resolved to be invested to procure a steady and rising income so as to ensure that the expenditure upon charitable objectives may be increased.
Achievements and Performance
The trust has continued to support the Bishopric.
Financial Review
The trust achieved a surplus of £44,610 on unrestricted funds for the year before gains on investments. There were no movements in restricted funds in the year.
The trust's investments are managed by BlackRock Investment Management (UK) Limited and have been invested in the Armed Forces Charities Growth and Income Fund. Investment income has increased over the previous period and the market value of investments has increased.
Plans for Future Periods
The Trust will support the Campion Dinner and develop ways to further support the original objects of the trust, namely the advancement of the Roman Catholic Religion among members of Her Majesty’s Army and also support Catholic Chaplains in their personal and spiritual development.
General
The financial statements comply with current statutory requirements, the Statement of ` Recommended Practice and the Charities Act 2011.
Funds
A legacy previously received from the estate of Angela Curran for the Community at The Cathedral Church of St Michael and St George, is included in restricted funds. Other restricted funds relate to Cathedral Maintenance.
Other funds held are unrestricted and are held to further the objects of the trust. These funds are available and are adequate to fulfil the obligations of the trust.
Unrestricted funds include a designated fund for Former Chaplains' Welfare.
Trustees Decision Making Process
Major decisions are made by a majority of trustees either at bi-annual trustees' meetings or by telephone or email discussion.
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TRUSTEES' ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2021
Grant Making Policies
Budgets are produced annually including proposed grants, and agreed in advance by the Trustees. The Principal Roman Catholic Chaplain has discretion for grants below £1,000.
Public Benefit
The Trust facilitates the faith practice of Roman Catholic members of the British Army, their families and those other Service personnel who wish to associate with them by providing for their participation in events which foster and develop their spiritual lives, enhance their sense of humanity and improve their sense of belonging and citizenship. It enables Chaplains to provide the best pastoral care and resources, and to engage people more deeply with the moral component of their military responsibilities. In addition, it supports the pastoral ministry of the Bishop of the Forces to those same people.
Recruiting to the Service – and thereby to benefiting from the Trust - is based on competence and character alone, and not determined by the Trust but by the Ministry of Defence.
The Trust makes a point of supporting servicemen and women affected by Operations. The Trust supports all Service personnel, Roman Catholic or not, who wish to be part of the outreach of the Roman Catholic community in the British Army. Particular care is taken that those on lower incomes, typically those under training, are given additional financial support.
No private benefits are received by anyone.
Investment Performance Against Objectives Set
Investments have performed adequately in the year under the management of the investment manager.
The Trustees
The trustees who served the charity during the period were as follows:
Father M Fava (Ex-Officio) (resigned 15 October 2020 ) P Firth Father P Hanrahan CF (Ex-Officio) Major General J S Kerr CBE Rt Rev Bishop P. Mason (Ex Officio) Colonel D Morgan OBE R A Smith MBE TD DL KSG - Chairman (resigned 16 July 2020) Father I Stevenson (Ex-Officio) appointed 23 November 2020) Wing Commander C P Thorpe - Chairman (appointed 16 July 2020)
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TRUSTEES' ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2021
Trustees' Responsibilities
The trustees are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
The law applicable to charities in England and Wales requires the trustees to prepare financial statements for each financial year which give a true and fair view of the charity's financial activities during the year and of its financial position at the end of the year. In preparing financial statements giving a true and fair view, the trustees should follow best practice and:
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Select suitable accounting policies and apply them consistently;
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Observe the methods and principles in the Charities SORP;
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Make judgements and estimates that are reasonable and prudent;
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State whether applicable accounting standards have been followed, subject to any material
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departures disclosed and explained in the financial statements, and
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Prepare the financial statements on the going concern basis unless it is inappropriate to
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presume that the charity will continue in operation.
The trustees are responsible for keeping sufficient accounting records which disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. The trustees are responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Signed on behalf of the trustees
Father P. Hanrahan CF Trustee
Approved by the trustees on 15 July 2021
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REPORT OF THE INDEPENDENT EXAMINER UNDER SECTION 145 OF THE CHARITIES ACT 2011
TO THE TRUSTEES OF THE ARMY ROMAN CATHOLIC TRUST
I report on the financial statements for the year ended 31st March 2021 as set out on pages 7 to 13.
The accounts have been prepared in accordance with Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standards applicable in the UK and Republic of Ireland (FRS 102) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice on 1 April 2005 which is referred to in the extant regulations but has been withdrawn.
Respective responsibilities of trustees and independent 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
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ꞏ examine the accounts under section 145 of the 2011 Act;
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ꞏ to follow the procedures laid down in the General Directions given by the
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Charity Commission under section 145(5)(b) of the 2011 Act; and
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ꞏ to state whether particular matters have come to my attention.
Basis of independent examiner's statement
My examination was carried out in accordance with the General Directions given by the Charity Commissioners. 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 the course of my examination, no matter has come to my attention:
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which gives me reasonable cause to believe that, in any material respect, the requirement:
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ꞏ to keep proper accounting records in accordance with section 130 of the 2011 Act; and
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ꞏ to prepare accounts which accord with the accounting records and to comply
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with the accounting requirements of the 2011 Act have not been met; or
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to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached.
Mark Dickinson FCA Wise & Co. Chartered Accountants Wey Court West Union Road Farnham Surrey GU9 7PT
Dated : 15 July 2021
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Page 7
STATEMENT OF FINANCIAL ACTIVITIES
FOR THE YEAR ENDED 31 MARCH 2021
| Notes INCOME AND ENDOWMENTS General donations and legacies Charitable activities 3 Investment income 2 Other incoming resources TOTAL INCOME EXPENDITURE Charitable Activities Grants paid 4 Other charitable activities 4 TOTAL EXPENDITURE NET INCOME/EXPENDITURE AND NET MOVEMENT IN FUNDS BEFORE GAINS AND LOSSES ON INVESTMENTS Net gains/(losses) on investments 7 NET MOVEMENT IN FUNDS BEFORE TRANSFERS Transfers General unrestricted Designated unrestricted NET MOVEMENT IN FUNDS RECONCILIATION OF FUNDS FUNDS AT 1 APRIL 2020 FUNDS AT 31 MARCH 2021 |
2021 2021 2021 2020 Restricted Unrestricted Total Total Funds Funds Funds Funds £ £ £ £ - 6,224 6,224 31,986 - - - 467 - 136,465 136,465 134,050 - - - - |
|---|---|
| - 142,689 142,689 166,503 |
|
| - 73,611 73,611 64,638 - 24,468 24,468 70,372 |
|
| - 98,079 98,079 135,010 |
|
| - 98,079 98,079 135,010 |
|
| - 44,610 44,610 31,493 - 716,901 716,901 (305,994) |
|
| - 761,511 761,511 (274,502) - - - - - - - - |
|
| - 761,511 761,511 (274,502) 16,483 3,470,923 3,487,406 3,761,908 |
|
| 16,483 4,232,434 4,248,917 3,487,406 |
The statement of financial activities includes all gains and losses recognised in the year.
All incoming resources and resources expended derive from continuing activities.
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BALANCE SHEET
| Notes FIXED ASSETS Investments 7 CURRENT ASSETS 8 Debtors Cash at bank CREDITORS: Amounts falling due within one year 9 NET CURRENT ASSETS NET ASSETS REPRESENTED BY: FUNDS Restricted 12/13 Unrestricted: 12 Designated General TOTAL FUNDS FOR THE YEAR |
£ £ 4,012,896 4,012,896 5,413 234,323 239,736 (3,715) (3,715) 236,021 4,248,917 16,483 50,000 4,182,434 4,248,917 ENDED 31 MARCH 2021 2021 |
£ £ 4,012,896 4,012,896 5,413 234,323 239,736 (3,715) (3,715) 236,021 4,248,917 16,483 50,000 4,182,434 4,248,917 ENDED 31 MARCH 2021 2021 |
£ £ 3,295,995 3,295,995 7,893 186,805 194,698 (3,286) (3,286) 191,412 3,487,406 16,483 50,000 3,420,923 3,487,406 2020 |
£ £ 3,295,995 3,295,995 7,893 186,805 194,698 (3,286) (3,286) 191,412 3,487,406 16,483 50,000 3,420,923 3,487,406 2020 |
|---|---|---|---|---|
| 4,248,917 | 3,487,406 | |||
| 16,483 50,000 4,182,434 |
16,483 50,000 3,420,923 |
|||
| 4,248,917 | 3,487,406 |
These financial statements were approved by the trustees on 15 July 2021 and are signed on their behalf by:
Wing Commander C. P. Thorpe Chairman
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2021
1. Accounting Policies
Basis of accounting
The accounts have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant notes to these accounts. The financial statements have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.
The accounts have been prepared to give a 'true and fair' view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a 'true and fair' view. This departure has involved following the Charities SORP (FRS 102) published on 16 July 2014 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.
The trust constitutes a public benefit entity as defined by FRS 102.
Incoming Resources
General donations, collections and bank interest are accounted for on a receivable basis.
Investments
Investments are managed under discretionary agreements by Blackrock Investment Management (UK) Limited.
Investments are accounted for by reference to the bargain date shown by the contract note issued in respect of their purchase or disposal.
Investments are a form of basic financial instrument and are initially recorded at their transaction value and subsequently measured at their fair value as at the balance sheet date using the bid price. The statement of financial activities includes the net gains and losses arising on revaluations and disposals throughout the year.
The Trust does not acquire put options, derivatives or other complex financial instruments.
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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021
1 Accounting Policies
Investment income
Income arising from investments is included by reference to the normal date of payment of dividends or interest on that investment. Provision is not made in the accounts for dividends to be received in the next accounting period on investments declared ex-dividend prior to 31st March 2021.
Taxation
As a qualifying charity, the trust is not liable to UK taxation.
Resources Expended
Charitable activities costs include grants made and governance costs as shown in note 4.
Debtors
Short term debtors are measured at transaction price, less any impairment.
Creditors
Short term creditors are measured at the transaction date.
| 2 Investment Income UK quoted investments Bank interest receivable 3. Income : Charitable activities Grants-Unrestricted Funds Cathedral Deacon's Salary Contribution and Aldershot Sub-Dean Cost Contribution Royal Navy (Roman Catholic) Trust |
2021 2020 £ £ 136,386 133,763 79 287 |
|---|---|
| 136,465 134,050 |
|
| 2021 2020 £ £ - 467 |
|
| - 467 |
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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021
4. Expenditure : Charitable activities
| Grants Paid-Unrestricted Funds Bishopric of the Forces |
2021 2020 £ £ 73,611 64,638 |
|---|---|
| 73,611 64,638 |
| 4. Expenditure : Charitable activities Unrestricted: Royal Army Chaplain's Research Project Museum of Army Chaplaincy, Shrivenham Lourdes Military Pilgrimage Catholic Military Association, Our Lady of Victories Latin Mass Society Special Collections Deacon, Sub-Dean and Book-keeping Salaries Sub-Dean Rent Chaplains' Conferences and Retreats PRCC Expenses Refurbishment of St Joan of Arc's Catholic Garrison Church, Catterick Sundry Archiving and Printing Accountancy (see note 5) There was no restricted expenditure in 2021 or 2020. 5. Accountancy Accountancy, payroll and secretarial Independent examination fees |
2021 2020 £ £ - 3,000 4,000 - 7,038 35,502 500 - 432 - - 181 4,381 7,446 - 4,321 - 426 617 1,242 - 7,614 530 893 142 772 6,828 8,976 |
|---|---|
| 24,468 70,372 |
|
| 2021 2020 £ £ 4,253 6,401 2,575 2,575 |
|
| 6,828 8,976 |
6. Staff Remuneration & Trustees' Emoluments
During the year there was 1 employee on average (2020 - 1). No employee earned £60,000 per annum or more (2020 - none).
There was no remuneration payable to the trustees in the current or previous years. During the year no trustees were reimbursed (2020: £420 reimbursed to one trustee) travel & subsistence expenses incurred for services provided to the charity. In addition the charity paid expenses of £nil (2020: £822) on behalf of one trustee.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2021
7.
| Investments Listed investments Armed Forces Charities Growth and Income Fund Movement in Market Value Market value at 1 April 2020 Acquisitions at cost Disposals at open book value Net (losses)/gains on revaluations in the year ended 31 March 2020 Market value at 31 March 2021 Historical cost at 31 March 2021 |
2021 2020 £ £ 4,012,896 3,295,995 |
|---|---|
| 2021 2020 £ £ 3,295,995 3,601,989 - - - - 716,901 (305,994) |
|
| 4,012,896 3,295,995 |
|
| 2,847,489 2,847,489 |
All investments are carried at their fair value. Holdings in growth and income funds are at the bid price.
8. Analysis of current assets
| alysis of current assets | |
|---|---|
| Income Tax Recoverable - Gift Aid Other debtors |
2021 2020 £ £ 762 606 4,651 7,288 |
| 5,413 7,893 |
All debtors relate to unrestricted funds
Cash at bank balances were as follows: unrestricted funds (including designated) £217,840 (2020: £170,322), restricted income funds £16,483 (2020: £16,483).
9.
Analysis of current liabilities
| alysis of current liabilities Accruals Other creditors |
2021 2020 £ £ 2,792 2,190 923 1,096 |
|---|---|
| 3,715 3,286 |
All creditors relate to unrestricted funds.
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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021
10. Vicariate Headquarters Trust
In the past, the Army Roman Catholic Trust has contributed funds to the Vicariate Headquarters Trust for the purchase of property. The trustees of the Vicariate Headquarters Trust have confirmed that in event of the Trust being wound up, they would return surplus funds to the contributing parties. In the eventuality 56.73% of any surplus would be returned to the Army Roman Catholic Trust.
11. Related Party Transactions
A grant was paid during the year to the Roman Catholic Bishopric of the Forces (GB) of £73,611 (2020: £64,638). The charities are connected by virtue of having some Trustees in common.
12. Analysis of net assets between funds
| alysis of net assets between funds | ||
|---|---|---|
| Fund balances at 31 March are represented by: Investments Net Current Assets Split of unrestricted funds Designated General |
Restricted Funds 2021 - 16,483 |
Unrestricted Funds Total Funds Total Funds 2021 2021 2020 4,012,896 4,012,896 3,295,995 219,538 236,021 191,412 |
| 16,483 | 4,232,434 4,248,917 3,487,407 |
|
| 50,000 4,182,434 4,232,434 |
A designated fund was set up for Former Chaplains' Welfare, the balance on this fund at the year end was £50,000.
13. Restricted Funds
| As at 1 April 2020 Incoming Resources Resources Expended Transfer from unrestricted funds As at 31 March 2021 |
Cathedral Cathedral Community Maintenance Total Funds Total Funds Fund Fund 2021 2020 6,751 9,732 16,483 16,483 - - - - |
|---|---|
| 6,751 9,732 16,483 16,483 - - - |
|
| 6,751 9,732 16,483 16,483 - - - - |
|
| 6,751 9,732 16,483 16,483 |
Previously a legacy of £10,000 was received from the estate of Colonel Angela Curran for the Community at the Cathedral Church of St Michael and St George.
A separate fund arising from a bequest originally amounting to £22,520 was maintained by the trust during the year. The fund was established to contribute to the maintenance of the Aldershot Cathedral.