# **THE MONASTERY OF ST. FRANCIS AND GORTON TRUST** (A company limited by guarantee) # **Trustees’ Report and Consolidated Financial Statements** **For the year ended December 31st 2022** **Charity number 1061457** **Company number 03251869** **THE MONASTERY OF ST FRANCIS AND GORTON TRUST LIMITED YEAR ENDED DECEMBER 31st 2022** ## **TABLE OF CONTENTS** |Administrative Information|2| |---|---| |Chairman’s Report|3| |Trustees’ and Directors’ Report|5 – 12| |Auditors’ Report|13 -15| |Group Statement of Financial Activities|16| |Charity Statement of Financial Activities|17| |Group Balance Sheet|18| |Charity Balance Sheet|19| |Group And Parent Charity Statement Of Cash Flows|20| |Notes To The Financial Statements|21 – 34| 1 **THE MONASTERY OF ST FRANCIS AND GORTON TRUST LIMITED YEAR ENDED DECEMBER 31st 2022** ## **ADMINISTRATIVE INFORMATION** ## **TRUSTEES:** The Trustees who served during the year were as follows; Paul Griffiths DL (Chairman & Company Secretary) Jeremy Cole (Resigned 5[th] March 2022) Ray Hanks Tim Isherwood (Resigned 3[rd] March 2022) David Oliver Piers Sturridge Janet Wallwork The Trustees are also the company’s directors for the purposes of company law. ## **CHIEF EXECUTIVE** Elaine Griffiths OBE, DL ## **REGISTERED OFFICE** The Monastery 89 Gorton Lane Manchester M12 5WF ## **REGISTERED CHARITY NUMBER** 1061457 ## **COMPANY NUMBER** 03251869 ## **STATUTORY AUDITORS:** Royce Peeling Green Limited The Copper Room Deva City Office Park Trinity Way Manchester M3 7BG ## **BANKERS** The Co-operative Bank Balloon Street Manchester M60 4EP ## **SOLICITORS** Brabners LLP Horton House Exchange Flags Liverpool L2 3YL 2 **THE MONASTERY OF ST FRANCIS AND GORTON TRUST LIMITED YEAR ENDED DECEMBER 31st 2022** ## **CHAIR’S REPORT** 2022 was an important year for The Monastery. We entered January with restrictions in place, though out of the shadows of the worst effects of the Covid Pandemic. But it also heralded the beginning of almost a first full year of a new operating model and a powerful vision championed by our Chief Executive, fully supported by Trustees. Its focus is on the Trust’s charitable and community objectives which are delivered within four key pillars of activity: 1. Heritage & Culture 2. Health & Wellbeing 3. Ceremony & Celebration 4. Wisdom & Consciousness Open daily to the public Sunday-Thursday 10am-4pm with free entry, free activities and free parking has made our heritage site fully accessible to everyone. We offer an Hour of Silence from 12 until 1pm every day for all those who wish to take time out from the stress and pressures of daily life. Every Wednesday Manchester Camerata Orchestra hold their Music Café in the Great Nave for those living with dementia. Other activities range from drop-in sessions for domestic abuse survivors, an anxiety & depression support group right through to free legal advice, yoga, tai chi, sound healing and meditation classes-a multitude of community events. Crucially, via The Sanctuary of Peace and Healing, our precious heritage spaces are used in ways to support and find solutions to some of the mental/physical health and wellbeing needs. We were delighted to welcome long-time supporter Gorton MP Afzal Khan when he visited to view the work of the LGBTQ+ African Rainbow Family Charity. Andy Burnham, Mayor of Greater Manchester, visited to view the work of Manchester Camerata and its Music Café for people living with Dementia, as did the Leader of Manchester City Council, Bev Craig, and local councillors to observe the same work. The visit also included observation of the work of Sanctuary of Peace and Healing with its focus on mental health and wellbeing. The year saw a strong public programme of Health & Wellbeing and family and community events. Our Belle Vue Day in May attracted over 600 visitors. The Charity relies on income from grants and public donations, and from its trading subsidiary (The Monastery Manchester) which provides income to the Charity from weddings and events held on a Friday or Saturday. This income ensures the good maintenance and repair of the impressive historic buildings. Trusted Partners continue to collaborate, and each help The Monastery to deliver its charitable objectives in Education, Skills, Arts & Health. The year witnessed a high number of legacy events, including weddings taking place. These had been deferred due to the pandemic, some several times. In common with everyone in the UK, we were unable to escape the impact of high energy prices which leapt in October 2022 and peaked in December with an eye-watering Gas bill during the Big Freeze of over £20,000 in just four weeks. Averaging over £10k a month in the early months of 2023, the costs remain 3 times higher than previous typical averages. Gas costs are expected to reduce significantly in the second quarter of 2023. Among notable achievements in the period is the completion of a Carbon Management Plan for the entire Monastery site. This was produced by ARUP and will prove invaluable in the future as we map out sustainability plans. We were delighted to welcome the BBC Songs of Praise team as they produced the annual Chorister of the Year and Gospel Choir of the year programmes. The voices of talented individuals resonating through the Nave was very special. The Monastery was built to hold such unique events. 3 **THE MONASTERY OF ST FRANCIS AND GORTON TRUST LIMITED YEAR ENDED DECEMBER 31st 2022** Award recognition came from Bride Book who voted the Monastery County Champion for weddings in the North-West, and from Hitched where Brides and Grooms married here, posted reviews which led to a 5-star award for Best Wedding Reviews. Both awards reinforce just how much The Monastery is appreciated. Fundraising in the year was tough going with applications for support regularly oversubscribed. We remain immensely grateful for all the support and funding made available by providers in such challenging times. In January 2023, The Trust submitted a bid to National Lottery Heritage Fund (NLHF) for a Heritage Resilience grant. In March we learnt that (NLHF) was prepared to provide a grant of £232k to support an exploration of future sustainability initiatives. As we strategically plan, and by future proofing The Monastery, we know that this special place is valued, cherished, and appreciated by the community more than ever. This is an important project for the Charity, as it will enable us to define the new sustainable operational priorities for the ongoing Quinquennial heritage works and Carbon Management Plans. The detailed work will inform the content for the much more detailed stage 2 bid for new boilers, solar, ground source heat pumps and so on. The scoping/market testing exercise is scheduled to be completed by June 2024. I am immensely grateful for the dedication, resilience and commitment demonstrated by Trustees, Volunteers and Employees, whose efforts are exemplary. We recently launched ’The Monastery Organ Appeal’. The original Wadsworth Victorian Organ was removed and sold for scrap when the church closed in 1989. The Monastery Trust has been given the unique opportunity to reinstate a Wadsworth (Manchester) organ. The organ has been gifted to us but needs to be repaired and reconfigured before it can be installed. Our vision is to restore and enhance the organ in perfect harmony with the Monastery’s acoustics and its exceptional architectural quality. It is encouraging to report that plans for 2023 envisaged a year ago, are bearing fruit in line with expectations. Thank you to everyone who has, in any way, supported our work in Gorton. Paul Griffiths DL ## **Chairman & Company Secretary-The Monastery of St. Francis & Gorton Trust.** 4 **THE MONASTERY OF ST FRANCIS AND GORTON TRUST LIMITED YEAR ENDED DECEMBER 31st 2022** ## **TRUSTEES’ AND DIRECTORS’ REPORT** The Trustees present the annual report and the audited financial statements of the Charity and its wholly owned subsidiary for the year ended December 31st 2022. The financial statements have been prepared in accordance with the accounting policies set out in note 1 and comply with the Monastery of St. Francis & Gorton Trust constitution, the Charities Act 2011, and the Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK (FRS 102). ## **OBJECTIVES AND ACTIVITIES** A precise version of the Trust’s charitable objects are as follows: - 1) To restore, conserve and maintain the Monastery of St Francis, being of historical & architectural merit. - 2) To further or benefit the residents of the Gorton district of Manchester and its surrounding areas. - 3) To advance the education of the public in general including the provision of facilities for education and the education of the public. - 4) The relief of unemployment for the benefit of the public in such ways as may be thought fit. - 5) To preserve and protect the health of residents of the Gorton district of Manchester and its surrounding areas. - 6) The prevention or relief of poverty in the Gorton district of Manchester and its surrounding areas. - 7) The promotion of equality and diversity for the public benefit by advancing education. - 8) The promotion of religious harmony for the benefit of the public by educating the public in different religious beliefs. - 9) Such other exclusively charitable purposes according to the law of England and Wales ## **Beneficiaries** Beneficiaries of the Charity’s work include: - Children, Young People and Age-Friendly groups. - Volunteers (adults and young people) - The People of Manchester and local communities - Voluntary organisations. - Community Charity & Community Groups. In shaping our objectives and planning our activities for the year, the Trustees confirm they have given regard to guidance published by the Charity Commission, including public benefit: running a charity (PB2) guidance. 5 **THE MONASTERY OF ST FRANCIS AND GORTON TRUST LIMITED YEAR ENDED DECEMBER 31st 2022** ## **TRUSTEES’ AND DIRECTORS’ REPORT** ## **ABOUT US** **WHO WE ARE:** The Monastery of St. Francis & Gorton Trust is a Building Preservation Trust and registered Charity set up almost 27 years ago to try to save, restore and find a viable new use for Pugin’s derelict architectural masterpiece, known locally as Gorton Monastery. **WHAT WE DO:** The Trust’s charitable mission is to generate enough income to maintain this precious & sacred heritage asset as a local resource, back at the heart of the community once again. **HOW WE DO IT:** By law, the Trust has a wholly owned trading subsidiary. This is the Monastery Manchester Ltd-which delivers community, educational and outreach activities and events. This includes charity dinners, community & family life events (weddings, funerals), meetings, community concerts and arts, health & well-being events. **WHY WE DO IT:** The Trust constantly strives to be self-sufficient and sustainable by generating its own income through the Charity and the Monastery Manchester. It relies heavily on its volunteers and pro-bono professional support. **YOUR EVENT HELPS US TO HELP OTHERS** : Any proceeds from events held by The Monastery Manchester, are donated to the Charitable Trust for ongoing conservation and maintenance work and to support charitable community projects in education, skills, arts & health. ## **Achievements and Performance** The Monastery has won well over 30 prestigious national & regional awards for its work in regeneration, community benefit, heritage, as a much-loved visitor attraction and unique historic venue. The social & economic Gross Value Added value brought to the City of Manchester by the Monastery since 2007 is truly exceptional. Considered by Manchester City Council as a strategically significant site, the Trusts diverse activities make possible the free to enter use of the building, while at the same time boosting the economy of Manchester and enhancing its reputation to all visitors… be they local Mancunians or from elsewhere. This historic and much-loved Manchester landmark continues to play a pivotal role in the improving fortunes of Gorton. The Monastery’s restoration is widely credited as the primary catalyst for the area’s regeneration. New Homes have been built in Gorton at an unprecedented rate/with 45 new homes completed on a brownfield site on Crossley Street adjacent to The Monastery and a new, One Manchester £15.7million development scheme of 102 apartments and 13 houses is well underway a few hundred yards away on Gorton Lane. ## **Social & Economic Value** **Investment in Gorton** - for many local people, the saving of Gorton Monastery was the catalyst for the area’s regeneration. Its restoration helped to rebuild confidence and improve people’s lives. More than £13million raised by the Charitable Trust to bring the Monastery to this point has encouraged people to move to Gorton because they want to, not because they have to. **Supporting the local economy** -The charity group endeavours to source goods and services locally. Spend in Manchester, and money remains in Manchester. We believe strongly in giving back to the community through this virtuous circle of buying goods and services locally. 6 **THE MONASTERY OF ST FRANCIS AND GORTON TRUST LIMITED YEAR ENDED DECEMBER 31st 2022** ## **TRUSTEES’ AND DIRECTORS’ REPORT** **World Monument site saved** -almost 27 years in the making it is self-evident that important heritage sites like the Monastery can have a positive social impact. They can help people thrive and develop pride in their communities. Such places can also make people feel better. **Community & Social Value** - The charity group adds to its Community and Social value locally by working with a myriad of Community, not-for-profit & charitable partnership groups. **Regeneration & Homes-** The Monastery sits at the heart of one of Manchester’s key regeneration areas, and it continues to act as a catalyst to regenerate the area. The perception of the area has improved, property prices increased-a virtuous circle of activity. **Employment & Jobs** -We continue to employ as many suitably qualified people as possible from the local community, while our reliable volunteer cohort are drawn from the local area. **Volunteers** are the heart of The Monastery. In 2022, with fewer employees than ever before, there was increased reliance on volunteers and from the Trust Chair and Trustees throughout the entire year. They donated 7,418 hours of time including travel. Their contribution valued at £169k in the year. In 2013, Trust volunteers were awarded a coveted Queen's Award for Voluntary Service, the highest award for a charity in the UK. **Education & Schools** - Activity is building up again with organised visits from local schools. **Environment & Sustainability** -work towards ISO 20121 International Sustainable Event Management was suspended due to the Pandemic. The drive to become more sustainable first began in 2012 when UNESCO granted The Monastery status as a Centre of Expertise in Sustainable Development. The new Welcome Wing is Carbon Neutral and has significant Passive House qualities to its construction. This was picked up again in 2022 with the development of a Carbon Management Plan for the site and a link up with Zellar Sustainability platform via the Cooperative Bank. **Colleagues.** The new operational model led to a significant reduction in headcount in 2020/2021 as activity was outsourced to external providers. All colleagues are sincerely thanked for their hard work, commitment, and support as we continue to build ourselves up again. ## **Financial review** ## Overview A new operating model in place since August 2021, provides for the Monastery to be open to the Public Sunday through Thursday, with Friday’s and Saturday’s set aside for weddings and events which provide income from which to maintain the historic property. The Trust’s trading subsidiary saw revenues increase to £1,059k (2021: £626k). Operating profit in the subsidiary was £62k (2021: £299k). The charity group consolidated result for the year saw revenues of £1.1m (2021: £1.2m) and net expenditure of £239k (2021: £178k) after depreciation of £219k (2021: £219k). 7 **THE MONASTERY OF ST FRANCIS AND GORTON TRUST LIMITED** **YEAR ENDED DECEMBER 31st 2022** ## **TRUSTEES’ AND DIRECTORS’ REPORT** ## **Principal funding sources** Aside from grants, the charity relied on donations from the public in 2022. The Trust’s trading subsidiary saw revenues increase to £1,059k (2021: £626k). Revenues were boosted by the fulfilment of legacy weddings and other deferred bookings which took place in the year, but which had earlier been impacted by the pandemic and deferred until 2022. This boost to revenues is unlikely to be repeated in future years as the new operating model restricts such activity Sunday-Thursday which are public open days. ## **Reserves policy and financial risk management** Trustees believe that having de-risked its activities by outsourcing and refocusing on core charitable activities, the charity has enhanced its future fund-raising prospects. During 2021, the charity group realised its long-term ambition to build unrestricted reserves to over £200,000. Cash reserves remain at £212,482 at 31 December 2022. The Trustees are also aware that one of the main risks to be managed relates to their own diligence and competence in overseeing the charity group’s affairs. This is particularly pertinent at this time when management and Trustee succession planning is in prospect. At the time of signing these accounts, the Trustees consider that they have undertaken a rigorous analysis of the main risks of that confront the charity. They have approved appropriate plans that mitigate the risks and have in place appropriate financial reporting procedures to ensure they are able to exercise effective oversight. ## **Going Concern considerations** The subsidiary is budgeted to achieve a surplus again in 2023, while the Trust looks to raise grant funding to support important initiatives and core costs in the year. Indeed, the application to National Lottery Heritage Fund early in 2023 for Heritage Resilience Funding. In March we learnt that (NLHF) was prepared to provide a grant of £232k to support an exploration of future sustainability initiatives. This grant funding will enable us to define the new sustainable operational priorities for the ongoing Quinquennial heritage works and Carbon Management Plans. The detailed work will inform the content for the much more detailed stage 2 bid for new boilers, solar, ground source heat pumps and so on. The scoping/market testing exercise is scheduled to be completed by June 2024. At the date of signing these accounts, the group cash flow forecast for the period to December 31[st] , 2024, predicts that the group will enjoy positive current account balances more than £250k. This projection does not include any potential future funding. Trustees expect this forecast to reflect a realistic estimate of fundraising income for the next year and that the current projected cash balances will be increased. Acknowledging that uncertainties remain regarding a challenging economic climate, the Trustees are confident that they are fully entitled to prepare the accounts on a going concern basis. ## **FUTURE PLANS** The Trustees were delighted to receive confirmation from the National Lottery Heritage Fund in March 2023, that following a bid for grant funding, it was prepared to provide a grant of £232k to support an exploration of future sustainability initiatives from its Heritage Resilience and Recovery Fund. The Heritage Resilience and Recovery Funding is creating an important project for the Charity. The detail is currently being developed for test and analysis during the second half of 2023, with completion of the scoping/market testing exercise scheduled to be completed by June 2024. 8 **THE MONASTERY OF ST FRANCIS AND GORTON TRUST LIMITED YEAR ENDED DECEMBER 31st 2022** The Monastery’s new operating model with its focus on providing plenty of opportunities for the public to visit, receive help, participate and simply enjoy what is now on offer. Trustees are pleased with the progressive nature and implementation of the new model. Open to the public Sunday through Thursday from 10 am until 4 pm every day. On Fridays and Saturdays, Weddings and special events can be given exclusivity to generate and maximise commercial income with proceeds helping to maintain the historic building. The Monastery provide free entry and free parking, donations are encouraged, and tickets sold for specific tours, talks, events, or workshops. Visitors can avail themselves of so much. - 1) Sanctuary of Peace and Healing-by providing compassionate professional support via this Well-Being Initiative. - 2) A free drop-in for people dealing with anxiety and depression. - 3) Free Legal Advice - 4) Yoga, Tai Chi, Meditation, Mindfulness. - 5) Daily “HOUR OF SILENCE” in the Great Nave or Private Chapel. - 6) Dementia Music Cafe, every week in the Nave with Manchester Camerata. - 7) Guided Tours - 8) Wisdom Study Centre Library. - 9) Welcome Wing Cafe & Exhibition. - 10) Gorton Voice Choir. National success continues from a Trusted Partnership with Manchester Camerata, which has seen a Dementia Music Café in the Nave for people living with Dementia enjoy substantial media exposure, heaping praise all around for this important work. Crucially participants have a truly wonderful experience, it appears to bring considerable benefits. Social Impact Reporting Software is proving invaluable as we can monitor, measure and report on the plethora of activities provided to visitors of the Monastery. The four pillars of activity we are engaged in, embrace the following: 1. Heritage & Culture 2. Health & Wellbeing 3. Ceremony & Celebration 4. Wisdom & Consciousness ## **STRUCTURE GOVERNANCE AND MANAGEMENT** The Charity is a company limited by guarantee. It is governed by its memorandum and articles of association dated September 19[th] 1996, as amended by special resolutions dated March 7th 1997, March 19th 1997, February 3rd 2006 and October 23[rd] 2019. It was registered with the Charity Commission on March 20th 1997. The Directors acting as the Governing Body have the power to admit or refuse membership to any individuals or corporations. Membership may be terminated by resolution of an extraordinary general meeting called for that purpose by the Governing Body. There are currently five members of the company, each of whom has agreed to contribute a sum not exceeding £100 in the event of the Charity being wound up. ## **APPOINTMENT, INDUCTION AND TRAINING OF TRUSTEES** The Directors, who are the Trustees, together form the Governing Body. The Trustees who served during the year, together with any changes up to the date of approving this report, are listed on page 1. It is recognised that the changing nature of the Trust’s focus, from restoring an important historic building to ensuring that its multi-faceted role is sustainably established. In the year, no new Trustees were appointed. 9 **THE MONASTERY OF ST FRANCIS AND GORTON TRUST LIMITED YEAR ENDED DECEMBER 31st 2022** Trustees are appointed for their specialist skills, knowledge and sound judgement. A relevant skill-set is sought that is appropriate for the successful delivery of the trust aims and objectives and its public benefit strategy. These skills inevitably vary as the trust progresses. We set out to establish a complementary board with a broad mix of skills, which satisfy our charitable objectives. ## **SUCCESSION PLANNING** In this the 27[th] year since the Charity was formed to save and restore Gorton Monastery, the Trustees remain committed to planning for future changes in the evolving membership of the Board and of its management. The Trust’s co-founders Elaine and Paul Griffiths are wholly supportive of a carefully considered approach to succession planning for the two roles they currently occupy and those occupied by existing Trustees. Trust solicitors Brabners LLP Charity Practice is advising Trustees and help guide the board through the process to conclusion. It is intended to develop measures to commence progressive implementation during 2023/24 and beyond. Any changes to current arrangements will be carefully implemented. It will be a progressive initiative, dovetailing into the Heritage Resilience and Recovery project funded by National Lottery Heritage Fund. ## **ORGANISATION** The Governing Body, which must have not less than one and not more than 20 members, administers the Charity and meets as necessary and usually not less than six times a year. Through appropriate discussion, the planning into our future community activities helps to ensure that the Trust’s vision of its role and purpose is realised. The management skills required, and the abilities of colleagues employed in the business of the Trust and its subsidiary, The Monastery Manchester, are naturally different. Delegated authority rests with the Chief Executive & co-founder of the Trust Elaine Griffiths OBE, DL. Trust Chairman Paul Griffiths DL is Chairman of the subsidiary. He is actively involved as a volunteer, chair’s board meetings throughout the year and fulfils Company Secretary duties. This approach ensures transparency between parent and wholly owned subsidiary. Comprehensive reports are provided to Trustees on performance by way of monthly P&L and management information reports on a stand-alone and consolidated basis. Key Performance Indicators are used to report against targets. ## **PAY POLICY FOR STAFF** The Trustees of The Monastery of St. Francis & Gorton Trust Limited and its leadership team are the key management personnel of the Charity in charge of directing, controlling, running and operating the Charity. All Trustees freely give their time, and no Trustee received remuneration in the year. At the end of December 2022, 13 employees were on the books (2021: 9) serving all activities and events in pursuit of our charitable objectives. ## **RELATED PARTIES** The following transactions and balances are disclosed as related party transactions in accordance with the Charities SRP, FRS 102 and Companies Act 2006. Throughout this year, as in all preceding accounting periods, Mr Paul Griffiths has served as an unpaid Trustee of the Charity, and an unpaid director of The Monastery Manchester Limited (MML), the Charity’s trading subsidiary. During the accounting period, Mr Griffiths donated 2,760 hours to the Trust and The Monastery Manchester, and he continues to make no claims for travelling expenses. Mr Griffiths also purchased goods for both The Monastery Manchester and the Trust totalling £10,147 (2021: £14,215). This was the expenditure for exceptional items required by The Monastery Manchester and the Trust, where there was no trading account for either company available. The amount has been reclaimed in the proper manner for expenses. Elaine Griffiths, co-founder and Paul Griffiths’ wife, is employed by the Charity as Chief Executive Officer and received gross salary of £65,767 (2021: £65,575). Expenses of £2,309 (2021: £1.4k) were 10 **THE MONASTERY OF ST FRANCIS AND GORTON TRUST LIMITED YEAR ENDED DECEMBER 31st 2022** reimbursed. This was the expenditure for exceptional items required by The Monastery Manchester and the Trust, where there was no trading account for either company available. The amount has been reclaimed in the proper manner for expenses. Katy Griffiths, daughter of Elaine and Paul Griffiths, is employed as Sales & Marketing Co-ordinator, she received gross salary of £13,617 (2021: £nil). ## **RISK MANAGEMENT** The Trustees have a risk management strategy that comprises an annual review of the principal risks and uncertainties the charity faces, coupled with the leadership team’s ongoing measurement of risk factors. ## **ENVIRONMENTAL POLICY** The Monastery is committed to being environmentally responsible in the way it operates. The key components of this policy are addressing climate change, reducing waste and encouraging responsible business practice. This policy is enhanced by virtue of the Charity’s drive to achieve the ISO 20121 International standard for sustainable event management. This policy is further enhanced by our longterm relationship with the Co-operative Bank and its ethical policy. We recently signed up to the Zellar sustainability platform as part of this wider initiative. ## **TRUSTEES’ RESPONSIBILITIES IN RELATION TO THE FINANCIAL STATEMENTS** The Trustees (who are also directors of The Monastery of St Francis and Gorton Trust for the purposes of company law) are responsible for preparing the Trustees’ Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). Company law requires the Trustees to prepare financial statements for each financial year, which give a true and fair view of the state of 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 Trustees are required to: - select suitable accounting policies and then apply them consistently. - observe the methods and principles in the Charities SORP (FRS 102); - make judgements and estimates that are reasonable and prudent; - state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; - prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in operation. The Trustees are responsible for keeping adequate accounting records that 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. 11 **THE MONASTERY OF ST FRANCIS AND GORTON TRUST LIMITED YEAR ENDED DECEMBER 31st 2022** ## **STATEMENT OF DISCLOSURE TO AUDITORS** We, the directors of the company who held office at the date of approval of these Financial Statements as set out above each confirm, so far as we are aware, that: • there is no relevant audit information of which the company’s auditors are unaware; and • We have taken all the steps that we ought to have taken as directors to make ourselves aware of any relevant audit information and establish that the company’s auditors are aware of that information. The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. ## **AUDITORS** The Auditors, Royce Peeling Green Limited, have expressed their willingness to continue in office and a resolution regarding their appointment and remuneration will be submitted to the Annual General Meeting. ## **SMALL COMPANY PROVISIONS AND APPROVAL** This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies’ exemption. Approved by the Board of Trustees and signed on its behalf by: P Griffiths Director 25th July 2023. 12 **THE MONASTERY OF ST FRANCIS AND GORTON TRUST LIMITED YEAR ENDED DECEMBER 31st 2022** ## **AUDITORS REPORT TO THE MEMBERS OF THE MONASTERY OF ST FRANCIS AND GORTON TRUST** ## **Opinion** We have audited the financial statements of The Monastery of St. Francis and Gorton Trust (the ‘charitable company’ or ‘the charity’) and its subsidiaries (together ‘the Group’) for the year ended 31 December 2022 which comprise the group and charity statements of financial activities, the group and charity balance sheets, the group and charity statements of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion, the financial statements: - give a true and fair view of the state of the group and charitable company's affairs as at 31 December 2022 and of their incoming resources and application of resources, for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and - have been prepared in accordance with the requirements of the Companies Act 2006 and Charities Act 2011. ## **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. ## **Conclusions relating to going concern** In auditing the financial statements, we have concluded that the Trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group and 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 contained within the annual report. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. 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 course of 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 this gives rise to a material misstatement in the financial statements themselves. 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. 13 **THE MONASTERY OF ST FRANCIS AND GORTON TRUST LIMITED YEAR ENDED DECEMBER 31st 2022** ## **AUDITORS REPORT TO THE MEMBERS OF THE MONASTERY OF ST FRANCIS AND GORTON TRUST** ## **Matters on which we are required to report by exception** We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 and the Charities Act 2011 require us to report to you if, in our opinion: - the information given in the financial statements is inconsistent in any material respect with the Trustees' and directors’ report; or - sufficient accounting records have not been kept; or - the financial statements are not in agreement with the accounting records; or - we have not received all the information and explanations we require for our audit. ## **Responsibilities of Trustees** As explained more fully in the sstatement of Trustees' rresponsibilities, the Trustees, who are also the directors of the charity for the purpose of company law, are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the Trustees are responsible for assessing the group and 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 group or the charitable company or to cease operations, or have no realistic alternative but to do so. ## **Auditor's responsibilities for the audit of the financial statements** We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Companies Act 2006 and relevant regulations made or having effect thereunder. 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 specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud, are detailed below: - At the planning stage of the audit we gain an understanding of the laws and regulations which apply to the group and the charity and how the Trustees and management seek to comply with them. This helps us to make appropriate risk assessments. - During the audit we focus on relevant risk areas and review compliance with laws and regulations through making relevant enquiries and corroboration by, for example, reviewing Board Minutes and other documentation. - We assess the risk of material misstatement in the financial statements including as a result of fraud and undertake procedures such as: - I. Review of controls set in place by the Trustees and management - II. Enquiry of Trustees and management as to whether they consider fraud or other irregularities may have occurred or where such opportunity might exist - III. Challenge of Trustee/ management assumptions with regard to accounting estimates - IV. Identification and testing of journal entries, particularly those which may appear to be unusual by size or nature. 14 **THE MONASTERY OF ST FRANCIS AND GORTON TRUST LIMITED YEAR ENDED DECEMBER 31st 2022** ## **AUDITORS REPORT TO THE MEMBERS OF THE MONASTERY OF ST FRANCIS AND GORTON TRUST** Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements, or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we are less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. A further description of our responsibilities is available on the Financial Reporting Council’s website at: https:// www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report. ## **Use of our report** This report is made solely to the charity’s Trustees, as a body, in accordance with part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's Trustees 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 charity and the charity’s Trustees as a body, for our audit work, for this report, or for the opinions we have formed. ## **Martin Chatten** **For an on behalf of Royce Peeling Green Limited Date 26[th] July 2023 Chartered Accountants Statutory Auditor** The Copper Room The Copper Room Deva City Office Park Trinity Way Manchester M3 7BG Royce Peeling Green Limited is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006. 15 **THE MONASTERY OF ST FRANCIS AND GORTON TRUST LIMITED YEAR ENDED DECEMBER 31st 2022** ## **GROUP STATEMENT OF FINANCIAL ACTIVITIES (including the income and expenditure account) FOR THE YEAR ENDED DECEMBER 31st 2022** |**Notes**
**INCOME**
Donations
**2**
Charitable activities
**3**
Other trading activities
**4**
Other income
**TOTAL INCOME**
**EXPENDITURE**
Cost of raising funds
**6**
Charitable activities
**7**
**TOTAL EXPENDITURE**
Net gains/losses on
investments
**NET INCOME/**
**(EXPENDITURE)**
**11**
Transfers between funds
**NET MOVEMENT IN**
**FUNDS**
**RECONCILIATION OF**
**FUNDS:**
**Balances brought**
**forward**
**18**
**Balances carried forward**
**18**|**Unrestricted**
**funds**
**Restricted**
**Funds**
**Total Unrestricted**
**funds**
**Restricted**
**Funds**
**Total**
**2022**
**2022**
**2022**
**2021**
**2021**
**2021**
**£**
**£**
**£**
**£**
**£**
**£**
12,967
-
12,967
42,810
-
42,810
-
-
-
74,440
439,700
514,140
1,122,297
-
1,122,297
627,245
-
627,245
-
-
-
4,704
-
4,704| |---|---| ||1,135,264
-
1,135,264
749,199
439,700
1,188,899| ||943,938
418,642 1,362,580
374,869
980,728
1,355,597
11,398
-
11,398
11,468
-
11,468| ||955,336
418,642
1,373,978
386,337
980,728
1,367,065| ||-
-
-
-
-
-| ||179,928
(418,642)
(238,714)
362,862
(541,028)
(178,166)
-
-
-
-
-
-| ||179,928
(418,642)
(238,714)
362,862
(541,028)
(178,166)
3,650,181
3,908,265
7,558,446
3,287,319
4,449,293
7,736,612| ||3,830,109
3,489,623
7,319,732
3,650,181
3,908,265
7,558,446| The notes on pages 21 to 34 form part of these financial statements 16 **THE MONASTERY OF ST FRANCIS AND GORTON TRUST LIMITED YEAR ENDED DECEMBER 31st 2022** ## **PARENT CHARITY STATEMENT OF FINANCIAL ACTIVITIES (including the income and expenditure account) FOR THE YEAR ENDED DECEMBER 31st 2022** |**Notes**
**INCOME**
Donations
**2**
Charitable activities
**3**
Other trading activities
**4**
**TOTAL INCOME**
**EXPENDITURE**
Cost of raising funds
**6**
Charitable activities
**7**
**TOTAL EXPENDITURE**
Net gains/losses on
investments
**NET INCOME/**
**(EXPENDITURE)**
Transfers between funds
**NET MOVEMENT IN**
**FUNDS**
**11**
**RECONCILIATION OF**
**FUNDS:**
**Balances brought**
**forward**
**18**
**Balances carried forward**
**18**|**Unrestricted**
**funds**
**Restricted**
**Funds**
**Total Unrestricted**
**funds**
**Restricted**
**Funds**
**Total**
**2022**
**2022**
**2022**
**2021**
**2021**
**2021**
**£**
**£**
**£**
**£**
**£**
**£**
12,967
-
12,967
42,810
-
42,810
-
-
-
74,440
439,700
514,140
261,300
-
261,300
36,868
-
36,868| |---|---| ||274,267
-
274,267
154,118
439,700
593,818| ||144,601
418,642
563,243
78,713
980,728
1,059,441
11,398
-
11,398
11,468
-
11,468| ||155,999
418,642
574,641
90,181
980,728
1,070,909
-
-
-
-
-
-| ||118,268
(418,642)
(300,374)
63,937
(541,028)
(477,091)
-
-
-
-
-
-| ||118,268
(418,642)
(300,374)
63,937
(541,028)
(477,091)
3,849,588
3,908,265
7,757,853
3,785,651
4,449,293
8,234,944| ||3,967,856
3,489,623
7,457,479
3,849,588
3,908,265
7,757,853| The notes on pages 21 to 34 form part of these financial statements 17 **THE MONASTERY OF ST FRANCIS AND GORTON TRUST LIMITED** **YEAR ENDED DECEMBER 31st 2022** ## **GROUP BALANCE SHEET AS AT DECEMBER 31st 2022** |**Notes**
**FIXED ASSETS**
Tangible Assets
**12**
Heritage Assets
**13**
**CURRENT ASSETS**
Stock
Debtors
**15**
Cash at Bank and in Hand
**CREDITORS**
Amounts falling due in one year
**16**
**NET CURRENT ASSETS**
**TOTAL ASSETS LESS CURRENT LIABILITIES**
**LONG TERM CREDITORS**
Amounts falling due after more than
one year
**17**
**NET ASSETS**
**FUNDS**
Restricted funds
**18**
Unrestricted funds
Designated funds
**18**
General funds
**18**
Total unrestricted funds
**TOTAL FUNDS**
**18**|
**£**
41,171
47,055
328,749|**2022**
**£**
3,179,065
4,442,434|**£**
42,424
112,137
478,804|**2021**
**£**
3,255,347
4,563,136| |---|---|---|---|---| |||7,621,499||7,818,483| ||416,975
(286,256)||633,365
(393,402)|| ||3,655,055
175,054||3,601,747
48,434|| |||130,719
7,752,218
(432,486)||239,963
8,058,446
(500,000)| |||7,319,732||7,558,446| |||3,489,623
||3,908,265| |||3,830,109||3,650,181| |||7,319,732||7,558,446| These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies’ regime. Approved by the Board of Directors and authorised for issue on 25[th] July 2023. Paul Griffiths ## **DIRECTOR** Company registration number: 03251869 The notes on pages 21 to 34 form part of these financial statements 18 **THE MONASTERY OF ST FRANCIS AND GORTON TRUST LIMITED** **YEAR ENDED DECEMBER 31st 2022** ## **PARENT CHARITY BALANCE SHEET AS AT DECEMBER 31st 2022** |**Notes**
**FIXED ASSETS**
Tangible Assets
**12**
Heritage Assets
**13**
Investments
**14**
**CURRENT ASSETS**
Stock
Debtors
**15**
Cash at Bank and in Hand
**CREDITORS**
Amounts falling due in one year
**16**
**NET CURRENT ASSETS**
**TOTAL ASSETS LESS CURRENT LIABILITIES**
**LONG TERM CREDITORS**
Amounts falling due after more than one
year
**17**
**NET ASSETS**
**FUNDS**
Restricted funds
**18**
Unrestricted funds
Designated funds
**18**
General funds
**18**
**TOTAL FUNDS**|**£**
-
97,122
227,087|**2022**
**£**
3,179,065
4,442,434
100|**£**

-
75,464
422,525|**2021**
**£**
3,255,347
4,563,136
100| |---|---|---|---|---| |||7,621,599||7,818,583


| ||324,209
(55,843)||497,989
(58,719)|| ||3,655,055
312,801||
3,601,747
247,841|| |||268,366
7,889,965
(432,486)||439,270
8,257,853
(500,000)| |||7,457,479||7,757,853| |||3,489,623||3,908,265| |||3,967,856||3,849,588| |||7,457,479||7,757,853| These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies’ regime. Approved by the Board of Directors and authorised for issue on 25[th] July 2023. Paul Griffiths **DIRECTOR** Company registration number: 03251869 The notes on pages 21 to 34 form part of these financial statements. 19 **THE MONASTERY OF ST FRANCIS AND GORTON TRUST LIMITED** **YEAR ENDED DECEMBER 31st 2022** ## **GROUP AND PARENT CHARITY STATEMENT OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31st 2022** |**Notes**
**Cash flows from operating activities**
Cash generated from operations
**20**
**Investing activities**
Purchase of tangible fixed assets
**12**
Proceeds from disposable of tangible
fixed assets
**Net cash used in investing activities**
**Financing activities**
New borrowings
Repayment of borrowings
**Net cash used in financing activities**
**21**
**Net (decrease)/ increase in cash**
**and cash equivalents**
Cash and cash equivalents at beginning
of year
Cash and cash equivalents at end of year
**Cash and equivalents consist of:**
Cash at bank and in hand
Bank overdrafts|**Group**
**Group**
**Charity**
**Charity**
**2022**
**2021**
**2022**
**2021**
**£**
**£**
**£**
**£**
(104,748)
130,256
(150,131)
84,971| |---|---| ||(22,229)
(6,424)
(22,229)
(6,424)
-
-
-
-| ||(22,229)
(6,424)
(22,229)
(6,424)
-
500,000
-
500,000
(23,078) (405,961)
(23,078) (405,961)| ||(23,078)
94,039
(23,078)
94,039| ||(150,055)
217,871
(195,438)
172,586
478,784
260,913
422,525
249,939| ||328,749
478,784
227,087
422,525| ||328,749
478,784
227,087
422,525
-
-
-
-| ||328,749
478,784
227,087
422,525| 20 **THE MONASTERY OF ST FRANCIS AND GORTON TRUST LIMITED YEAR ENDED DECEMBER 31st 2022** ## **NOTES TO THE FINANCIAL STATEMENTS.** ## **1. ACCOUNTING POLICIES** ## **Basis of preparation** The financial statements have been prepared: under the historic cost convention through the Statement of Financial Activities (SoFA); 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 (FRS102) effective January 1st 2015; FRS102; and the Companies Act 2006. The Charity constitutes a public benefit entity as defined by FRS102. ## **Going Concern** At the date of signing these accounts, the group is meeting all its liabilities as they fall due. Detailed financial projections have been prepared for the period to December 31st, 2024. These forecasts predict that the group has adequate resources to meet its liabilities throughout this period without recourse to new borrowing. In their consideration of insolvency risks, the Trustees have reviewed the reliability and prudence of the assumptions that underpin their financial forecasts. They have also interrogated the charity group’s employed staff and relevant advisers, as appropriate. The Trustees are confident that, for reasons explained more fully in the Financial Review Section of the Trustees’ Annual Report, the assumptions on which the financial projections are based are robust. Concerning the group's longer-term financial prospects, the board is confident that the de-risked business model for its trading subsidiary, and the fund-raising potential of the Trusted partner collaborations of the Charity, will eventually enable the group to reduce its indebtedness and further build cash reserves beyond existing levels of £212k. For these reasons, the Trustees are fully satisfied that the Charity's accounts should continue to be prepared on a going concern basis. In January 2023, the Charity applied to National Lottery Heritage Fund (NLHF) for a Heritage Resilience Grant. In March 2023 NLHF granted the Charity a sum of £232,000 to support the development and exploration of sustainability plans, aimed at securing the future of The Monastery. This grant will help us with energy costs, overheads and resources over the next 12 to 18 months. The grant will also enable the development of appropriate succession plans and the eventual implementation of a phased and controlled plan of succession. This will involve charity co-founders Elaine and Paul Griffiths and Trustees. This Project work will include a full review of all of our current and future outsourced work to ensure we are getting the best possible value and service in each sector. This will include Food, Beverage, Fundraising, Finance, Cleaning, Facilities & Building Management. We will also be using some of this grant funding for testing and trialling these two main areas of work over the next 12 months: - 1) Heritage & Integrated Health Innovation Centre. - 2) Heritage & Hospitality Solutions. The Heritage Resilience and Recovery grant will complete in June 2024 and there will be a need for a bigger NLHF grant request in their 2-stage bid process at the end of 2023/24 to take the project to 2026 and beyond. 21 **THE MONASTERY OF ST FRANCIS AND GORTON TRUST LIMITED YEAR ENDED DECEMBER 31st 2022** ## **NOTES TO THE FINANCIAL STATEMENTS** ## **1. ACCOUNTING POLICIES (continued)** ## **Funds structure** Unrestricted funds are available at the discretion of the Trustees in furtherance of the general objectives of the Charity. From time to time, the Trustees may designate some or all of these funds for specific purposes; however, such designations may be varied or removed at the Trustees absolute discretion. Restricted funds, donations or other charitable income, subject to specific conditions by the donor or grantor, or by the appeal’s nature, restricted the funds to be used for specific areas of the Charity’s work. Details of restricted funds at the year-end are given in Note 18. Designated funds comprise the charity's fixed assets which are no longer subject to restrictions and the associated long term debt which are unavailable for distribution due to their illiquid nature and fundamental importance to the objects of the Charity. ## **Income recognition** All income is recognised once the Charity has an entitlement to the income, it is probable that the income will be received, and the amount of income receivable can be measured reliably. The following applies to particular types of income: **Grants** , whether of a capital or revenue nature, are recognised when the Charity has an entitlement to the funds, any performance conditions have been met, and it is probable that the income will be received. **Donations** from individuals and other bodies (not being of the nature of a grant) are recognised when receivable. **Earned income** is measured at the fair value of the consideration received or receivable for services and goods supplied, net of discounts and VAT. ## **Deferred income** Income is only deferred and included in creditors when: - The income relates to a future accounting period - A sales invoice has been raised ahead of the work being carried out, and there is no contractual entitlement to the income until the work has been done - Not all the terms and conditions of the grant have been met, including the incurring of expenditure, and the grant conditions are such that unspent grant must be refunded ## **Expenditure and irrecoverable VAT** Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party; it is probable that the settlement will be required, and the amount of the obligation can be measured reliably. Expenditure is classified under the following activity headings: Costs of raising funds including those associated with fund-raising activities, managing investments and commercial Charitable activities costs of undertaking the work of the Charity The Charity is registered for VAT and can recover all input tax charged. Costs are stated exclusive of VAT where charged. ## **Allocation of support costs** Support costs are those attributable to functions that assist the Charity’s work either by supporting the delivery of charitable activities, or by supporting the generation of funds. They include property costs, back-office functions, staff costs and professional fees. The basis of allocations is set out in Note 8 22 **THE MONASTERY OF ST FRANCIS AND GORTON TRUST LIMITED YEAR ENDED DECEMBER 31st 2022** ## **NOTES TO THE FINANCIAL STATEMENTS** ## **1. ACCOUNTING POLICIES (continued)** ## **Pension contributions** The Charity operates a defined contribution pension scheme for its employees, agreeing the contribution rates with each individual. The contributions are paid to a third party who invests the contributions in a money purchase plan. Contributions are charged to the SoFA as they become payable. ## **Tangible and heritage fixed assets and depreciation** Individual fixed assets costing more than £500 are capitalised at cost and are depreciated over their estimated useful lives on a straight-line basis, as set out below. Depreciation rates are as follows: Buildings 2% Kitchen equipment 5 -10% Church fittings Nil The residual value is not expected to decline over the asset’s life. Equipment & furniture 20% ## **Investments, gains and losses** Fixed asset 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 closing quoted market price. The SoFA includes the net gains and losses arising on revaluation and on disposals throughout the year. Gains and losses on are taken to the Statement of Financial Activities as they arise. Realised gains and losses are calculated as the difference between sale proceeds (net of transaction costs) and the opening carrying value or cost, if acquired during the year. Unrealised gains and losses are calculated on the difference between opening and closing fair values. ## **Debtors** Trade and other debtors are recognised at the settlement amount due, and prepayments are valued at the amount prepaid. ## **Cash at bank and in hand** Cash at bank and in hand includes cash and short-term liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account. ## **Creditors and provisions** Creditors and provisions are recognised where the Charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party, and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount. ## **Financial instruments** The Charity has only basic financial instruments, which are initially recorded at cost, and with the exception of investments (as set out above) subsequently measured at their settlement value. ## **Group financial statements** The financial statements consolidate the results of the Charity and its wholly-owned subsidiary, The Monastery Manchester Ltd, on a line-by-line basis. 23 **THE MONASTERY OF ST FRANCIS AND GORTON TRUST LIMITED YEAR ENDED DECEMBER 31st 2022** ## **NOTES TO THE FINANCIAL STATEMENTS** |**2. DONATIONS**|**31/12/2022**|**31/12/2022**|||**31/12/2021**|| |---|---|---|---|---|---|---| ||**Unrestricted**|
**Restricted**|
**Total**|
**Unrestricted**|**Restricted**|**Total**| ||**£**|**£**|**£**|**£**|
**£**|**£**| |Public donations|12,967|-|12,967|42,810|
-|42,810| ||12,967|-|12,967|42,810|
-|42,810| |**3. INCOME FROM CHARITABLE**|**ACTIVITIES**|||||| ||**31/12/2022**||||**31/12/2021**|| |**Revenue income**|**Unrestricted**|**Restricted**|
**Total**|**Unrestricted**|
**Restricted**|**Total**| ||**£**|**£**|**£**|**£**|
**£**|**£**| |Project grants|-|-|-|74,440|
439,700|514,140| ||-|-|-|74,440|439,700|514,140| |**4. OTHER TRADING ACTIVITIES**||||||| ||**31/12/2022**||||**31/12/2021**|| ||**Unrestricted**|**Restricted**|**Total**|**Unrestricted**|**Restricted**|**Total**| ||**£**|**£**|**£**|**£**|
**£**|**£**| |Rental Income|105,200|-|105,200|36,000|
-
|36,000| |Management charge|150,000|-|150,000|-|
-|-| |Other income|6,100|-|6,100|868|
-|868| |**Total per charity**|261,300|-|261,300|36,868|-|36,868| |Less eliminated on consolidation:||||||| |Rent re subsidiary|(48,000)|-|(48,000)|(36,000)|
-|(36,000)| |Management charge|(150,000)|-|(150,000)|-|
-|-| |Add subsidiary income|1,058,997|-|1,058,997|626,377|
-
|626,377| |**Total per group**|1,122,297|-|1,122,297|627,245|-|627,245| ## **5. INVESTMENT INCOME** Neither of the companies in which the company has investment has paid dividends in the last two years and the Group has not had surplus funds available to invest. 24 **THE MONASTERY OF ST FRANCIS AND GORTON TRUST LIMITED YEAR ENDED DECEMBER 31st 2022** ## **NOTES TO THE FINANCIAL STATEMENTS** ## **6. COSTS OF RAISING FUNDS** |||**31/12/2022**|**31/12/2022**|||||**31/12/2021**|**31/12/2021**|| |---|---|---|---|---|---|---|---|---|---|---| ||**Support**||||||**Support**|||| ||**of**|**External**|||||**of**|
**External**||| ||**subsidiary**|
**fundraising**|||**Total**|**subsidiary**||
**fundraising**||**Total**| ||**£**||**£**||**£**||**£**||**£**|**£**| |Direct staff costs|99,276||-||99,276||51,984||-|51,984| |Advertising & printing|2,093||-||2,093||4,326||-|4,326| |Support costs (Note 8)|233,158||228,716|461,874|||309,366||693,765|1,003,131| |**Total per charity**|334,527||228,716|563,243|||365,676||693,765|1,059,441| |**Analysed as**||||||||||| |**Restricted funds**||||||||||| |Depreciation|189,926||-|189,926|||189,399||-|189,399| |Other costs|-||163,400|163,400|||97,564||530,765|628,329| |Grant to subsidiary|-||65,316||65,316||-||163,000|163,000| ||189,926||228,716|418,642|||286,963||693,765|980,728| |**Unrestricted funds**||||||||||| |Depreciation|29,286||-||29,286||29,751||-|29,751| |Other costs|115,315||-|115,315|||48,962||-|48,962| ||144,601||-|144,601|||78,713||-|78,713| |**Total per charity**|334,527||228,716|563,243|||365,676||693,765|1,059,441| |Eliminated on||||||||||| |consolidation||||(65,316)||||||(163,000)| |Subsidiary||||864,653||||||459,156| |**Total per group**||||1,362,580||||||1,355,597| |**7. CHARITABLE EXPENDITURE**||||||||||| |||||**31/12/2022**||||||**31/12/2021**| ||**Unrestricted**||
**Restricted**||**Total**||
**Unrestricted**||
**Restricted**
**Total**|| ||**£**|||**£**||**£**||**£**||**£**
**£**| |Community provision||11,398||-|11,398|||11,468||-
11,468| |**Per charity & group**||11,398||-|11,398|||11,468|
|-11,468| |**Analysed between:**||||||||||| |Direct costs||-||-||-||500||-
500| |Support costs||11,398||-|11,398|||10,968||-
10,968| |||11,398||-|
11,398|||11,468||- 11,468| 25 **THE MONASTERY OF ST FRANCIS AND GORTON TRUST LIMITED YEAR ENDED DECEMBER 31st 2022** ## **NOTES TO THE FINANCIAL STATEMENTS** ## **8. SUPPORT & GOVERNANCE COSTS** |**Support costs**
Support staff
Property costs
Depreciation
Grant funded projects
Finance charges & interest
Office costs & other costs
**Governance costs**
Professional fees
Support staff
**Total support costs**|**31/12/2022**
**Community**
**Capital**
**project**
**The**
**Monastery**
**Manchester**
**Limited**
**External**
**Fundraising**
**Total**
**£**
**£**
**£**
**£**
**£**
-
-
-
-
-
-
-
28,646
-
28,646
-
-
219,212
-
219,212
-
-
-
-
-
-
-
22,497
-
22,497
-
-
191,519
-
191,519| |---|---| ||-
-
461,874
-
461,874| ||11,398
-
-
-
11,398
-
-
-
-
-| ||11,398
-
-
-
11,398| ||11,398
-
461,874
-
473,272| |**Support costs**
Staff expenses, training & recruitment
Property costs
Depreciation
Grant funded projects
Finance charges & interest
Office costs & other costs
**Governance costs**
Professional fees
Support staff
**Total support costs**|**31/12/2021**
**Community**
**Capital**
**project**
**The**
**Monastery**
**Manchester**
**Limited**
**External**
**Fundraising**
**Total**
**£**
**£**
**£**
**£**
**£**
-
-
-
-
-
-
-
32,571
-
32,571
-
-
219,150
-
219,150
-
693,765
-
-
693,765
-
-
2,724
-
2,724
-
-
9,341
45,580 54,921| |---|---| ||-
693,765
263,786
45,580
1,003,131| ||10,968
-
-
-
10,968
-
-
-
-
-| ||10,968
-
-
-
10,968| ||10,968
693,765
263,786
45,580
1,014,099| 26 **THE MONASTERY OF ST FRANCIS AND GORTON TRUST LIMITED YEAR ENDED DECEMBER 31st 2022** ## **NOTES TO THE FINANCIAL STATEMENTS** ## **9. TRADING SUBSIDIARY** |**9. TRADING SUBSIDIARY**|| |---|---| |Turnover
Cost of sales
Gross profit
Administration expenses
Other income
Net profit before and after tax (See Note 20)|**31/12/2022**
**31/12/2021**
**£**
**£**
1,058,997
626,377
(435,540)
(223,761)| ||623,457
402,616
(627,114)
(271,395)
65,316
167,704| ||61,659
298,925| Rent of £48,000 payable to charity (2021: rent £36,000), management charges of £150,000 (2021: £nil), income from sale of services to the charity of £nil (2021: £35,000) and other income of £65,316 (2021: £163,000) are eliminated on consolidation. |Current assets
Creditors due within one year
Total net assets|162,752
149,493
(300,399)
(348,799)| |---|---| ||(137,647)
(199,306)| ## **10. PAYROLL COSTS** |**a**
The group payroll costs are as follows:
Salaries
Social security costs
Employer pension contributions|**31/12/2022**
**31/12/2021**
**£**
**£**
238,465
171,569
14,266
9,362
12,974
10,787| |---|---| ||265,705
191,718| One employee earned more than £60,000 but less than £70,000 per annum (2021: one). **b** Key management personnel comprise two directors and the key members of staff listed on page 1. |Remuneration & benefits
**c**
The average number of employees was as follows:
The Monastery Manchester Limited
Fundraising and events|80,586
88,114| |---|---| ||**Number**
**Number**
12
8
1
1| ||13
9| 27 **THE MONASTERY OF ST FRANCIS AND GORTON TRUST LIMITED YEAR ENDED DECEMBER 31st 2022** ## **NOTES TO THE FINANCIAL STATEMENTS** |**11. GROUP NET INCOMING RESOURCES**
This is stated after charging:
Auditors remuneration:
Audit fees - current year
Accountancy fees - current year
Depreciation other tangible fixed assets
Directors' remuneration (Trust directors)
Trustee's expenses|**31/12/2022**
**31/12/2021**
**£**
**£**
6,250
5,250
3,500
3,500
219,212
219,150
-
-
-
-| |---|---| |**12. TANGIBLE FIXED ASSETS**
**GROUP & CHARITY**
**Cost**
As at 1 January 2022
Additions
As at 31 December 2022
**Depreciation**
As at 1 January 2022
Charged in the year
As at 31 December 2022
**Net Book Value**
As at 31 December 2022
As at 31 December 2021|**Freehold Land &**
**Buildings**
**Fixtures and**
**Fittings**
**Total**
**£**
**£**
**£**
3,461,429
840,264
4,301,693
-
22,229
22,229| |---|---| ||3,461,429
862,493
4,323,922| ||293,266
753,080
1,046,346
69,224
29,287
98,511| ||362,490
782,367
1,144,857| ||3,098,939
80,126
3,179,065| ||3,168,163
87,184
3,255,347| 28 **THE MONASTERY OF ST FRANCIS AND GORTON TRUST LIMITED YEAR ENDED DECEMBER 31st 2022** ## **NOTES TO THE FINANCIAL STATEMENTS** ## **13. HERITAGE ASSETS** |**GROUP & CHARITY**
**Cost**
As at 1 January 2022
Additions
As at 31 December 2022
**Depreciation**
As at 1 January 2022
Charged in the year
As at 31 December 2022
**Net Book Value**
As at 31 December 2022
As at 31 December 2021|**Freehold Land &**
**Buildings**
**Church Fittings**
**Total**
**£**
**£**
**£**
6,034,974
86,750
6,121,724
-
-
-| |---|---| ||6,034,974
86,750 6,121,724| ||1,557,565
1,023
1,558,588
120,702
-
120,702| ||1,678,267
1,023
1,679,290| ||4,356,707
85,727
4,442,434| ||4,477,409
85,727 4,563,136| ## **14. INVESTMENTS** |**14. INVESTMENTS**|||| |---|---|---|---| |||**2022**|**2021**| |||**%**|**%**| |||**Shares**|**Shares**| |**Name of Subsidiary**|**Trading activity**|**held**|**held**| |The Monastery Manchester Limited|Management services and event management|100|100| |The Angels (Manchester) Limited|Dormant|100|100| 29 **THE MONASTERY OF ST FRANCIS AND GORTON TRUST LIMITED YEAR ENDED DECEMBER 31st 2022** ## **NOTES TO THE FINANCIAL STATEMENTS** ## **15. DEBTORS** |**15. DEBTORS**|| |---|---| |Trade debtors
Grants & income receivable
Amount due from subsidiary
Other debtors
Prepayments|**Group**
**31/12/2022**
**Group**
**31/12/2021**
**Charity**
**31/12/2022**
**Charity**
**31/12/2021**
**£**
**£**
**£**
**£**
7,486
35,818
-
-
5,840
43,970
5,840
43,970
-
-
69,986
-
-
-
-
5,462
33,729
32,349
21,296
26,032| ||47,055
112,137
97,122
75,464| **16. CREDITORS amounts falling due within one year** |**16. CREDITORS**
**amounts falling due within one year**|| |---|---| |
Bank loan (see also note 17)
Trade creditors
Amount due to subsidiary
Social security and other taxes
Income received in advance
Accruals & other creditors|**Group**
**31/12/2022**
**Group**
**31/12/2021**
**Charity**
**31/12/2022**
**Charity**
**31/12/2021**
**£**
**£**
**£**
**£**
44,436
-
44,436
-
42,899
77,611
2,867
20,422
-
-
-
8,735
5,265
7,021
2,939
-
143,514
272,213
-
-
50,142
36,557
5,601
29,562| ||286,256 393,402
55,843 58,719| 30 **THE MONASTERY OF ST FRANCIS AND GORTON TRUST LIMITED YEAR ENDED DECEMBER 31st 2022** ## **NOTES TO THE FINANCIAL STATEMENTS** ## **17. CREDITORS** |**17. CREDITORS**|| |---|---| |**Amounts falling due after more than**
**one year**
Bank loan
Other loans|**Group**
**31/12/2022**
**Group**
**31/12/2021**
**Charity**
**31/12/2022**
**Charity**
**31/12/2021**
**£**
**£**
**£**
**£**
432,486
500,000
432,486
500,000
-
-
-
-| ||432,486
500,000
432,486
500,000| In January 2021 the charity drew down a CBILs loan of £500,000 which is repayable over 12 years from drawdown including an initial 12-month capital repayment holiday. The loan is secured by a first charge over the Charity’s freehold land and buildings, guarantee from the subsidiary company and a debenture over its assets. ## **18. STATEMENT OF FUNDS** |**GROUP**
Unrestricted general funds
Restricted funds
Total funds|**2022**
**31/12/2021**
**Income**
**Expenditure**
**Transfers**
**31/12/2022**
**£**
**£**
**£**
**£**
**£**
3,650,181
1,135,264
(955,336)
-
3,830,109
3,908,265
-
(418,642)
-
3,489,623| |---|---| ||7,558,446
1,135,264
(1,373,978)
-
7,319,732| |**2021**
**GROUP**
**31/12/2020**
**Income**
**Expenditure**
**Transfers**
**31/12/2021**
**£**
**£**
**£**
**£**
**£**
Unrestricted general funds
3,287,319
749,199
(386,337)
-
3,650,181
Restricted funds
4,449,293
439,700
(980,728)
-
3,908,265
Total funds
7,736,612
1,188,899
(1,367,065)
-
7,558,446
**Funds analysed between charitable and non-charitable:**
**2022**
**2021**
**£**
**£**
Charity unrestricted and designated
3,967,856
3,849,588
Charity restricted
3,489,623
3,908,265
7,457,479
7,757,853
Trading subsidiary
(137,747)
(199,407)
7,319,732
7,558,446|**2021**
**31/12/2020**
**Income**
**Expenditure**
**Transfers**
**31/12/2021**
**£**
**£**
**£**
**£**
**£**
3,287,319
749,199
(386,337)
-
3,650,181
4,449,293
439,700
(980,728)
-
3,908,265|**2021**
**31/12/2020**
**Income**
**Expenditure**
**Transfers**
**31/12/2021**
**£**
**£**
**£**
**£**
**£**
3,287,319
749,199
(386,337)
-
3,650,181
4,449,293
439,700
(980,728)
-
3,908,265| |---|---|---| ||7,736,612
1,188,899|(1,367,065)
-
7,558,446| |||
**2022**
**2021**
**£**
**£**
3,967,856
3,849,588
3,489,623
3,908,265
7,457,479
7,757,853
(137,747)
(199,407)
7,319,732
7,558,446| 31 **THE MONASTERY OF ST FRANCIS AND GORTON TRUST LIMITED YEAR ENDED DECEMBER 31st 2022** ## **NOTES TO THE FINANCIAL STATEMENTS** ## **18. STATEMENT OF FUNDS** (continued) |**CHARITY**
Unrestricted general funds
**Restricted funds:**
Culture Recovery Fund
Capital grants expended on fixed
assets
Total funds
**CHARITY**
Unrestricted general funds
**Restricted funds:**
Heritage Emergency Fund
Culture Recovery Fund
Capital grants expended on fixed
assets
Total funds|**2022**
**31/12/2021**
**Income**
**Expenditure**
**Transfers**
**31/12/2022**
**£**
**£**
**£**
**£**
**£**
3,849,588
274,267
(155,999)
-
3,967,856| |---|---| ||3,849,588
274,267
(155,999)
-
3,967,856| ||260,484
-
(418,642)
158,158
-
3,647,781
-
-
(158,158)
3,489,623| ||3,908,265
-
(418,642)
-
3,489,623| ||7,757,853
274,267
(574,641)
-
7,457,479| ||**2021**
**31/12/2020**
**Income**
**Expenditure**
**Transfers**
**31/12/2021**
**£**
**£**
**£**
**£**
**£**
3,785,651
154,118
(90,181)
-
3,849,588| ||3,785,651
154,118
(90,181)
-
3,849,588| ||40,629
-
(40,629)
-
-
571,484
439,700
(750,700)
- 260,484
3,837,180
-
(189,399)
-
3,647,781| ||4,449,293
439,700
(980,728)
-
3,908,265| ||8,234,944
593,818
(1,070,909)
-
7,757,853| 32 **THE MONASTERY OF ST FRANCIS AND GORTON TRUST LIMITED YEAR ENDED DECEMBER 31st 2022** ## **NOTES TO THE FINANCIAL STATEMENTS** ## **19. ANALYSIS OF NET ASSETS BETWEEN FUNDS** |**Fund balances at 31 December**
**2022**
are represented by:
Fixed assets
Net current assets/(liabilities)
Creditors due in more than one year
**Fund balances at 31 December**
**2021**
are represented by:
Fixed assets
Net current assets/(liabilities)
Creditors due in more than one year
**Fund balances at 31 December**
**2022**
are represented by:
Fixed assets
Net current assets/(liabilities)
Creditors due in more than one year
**Fund balances at 31 December**
**2021**
are represented by:
Fixed assets
Net current assets/(liabilities)
Creditors due in more than one year|**GROUP**
**Unrestricted funds**
**Restricted**
**funds**
**Total**
**Designated**
**General**
**£**
**£**
**£**
**£**
3,713,234
- 3,908,265 7,621,499
(44,436)
593,797
(418,642)
130,719
(432,486)
- -
(432,486)| |---|---| ||3,236,312
593,797
3,489,623 7,319,732| ||**GROUP**
4,101,747
-
3,716,835 7,818,582
-
48,434
191,430
239,864
(500,000)
- -
(500,000)| ||3,601,747
48,434 3,908,265 7,558,446| ||**CHARITY**
**Unrestricted funds**
**Restricted**
**funds**
**Total**
**Designated**
**General**
**£**
**£**
**£**
**£**
4,131,977
- 3,489,623 7,621,599
(44,436)
312,802 -
268,366
(432,486)
- -
(432,486)| ||3,655,055
312,802 3,489,623 7,457,479| ||**CHARITY**
4,101,747
-
3,716,835 7,818,582
-
247,842
191,429
439,271
(500,000)
- -
(500,000)| ||3,601,747
247,842 3,908,264 7,757,853| Restricted funds comprise of monies received for the restoration, conservation and maintenance of the former monastery and church of St Francis. Designated funds comprise the charity's fixed assets which are no longer subject to restrictions and the associated long term debt which are unavailable for distribution due to their illiquid nature and fundamental importance to the objects of the Charity. 33 **THE MONASTERY OF ST FRANCIS AND GORTON TRUST LIMITED YEAR ENDED DECEMBER 31st 2022** ## **NOTES TO THE FINANCIAL STATEMENTS** ## **20. RECONCILIATION OF NET MOVEMENT IN FUNDS TO NET CASHFLOW FROM OPERATING ACTIVITIES** |Net movement in funds
Depreciation and other fixed asset adjustments
Decrease/ (increase) in stocks
Decrease/ (increase) in debtors
(Decrease)/ increase in creditors
Net cash generated from/(used in) operating
activities|**Group**
**2022**
**Group**
**2021**
**Charity**
**2022**
**Charity**
**2021**
**£**
**£**
**£**
**£**
(238,714)
(178,166)
(300,374)
(477,091)| |---|---| ||219,212
219,150
219,212
219,150
1,254
5,257
-
-
73,736
258,872
(27,120)
327,305
(160,236)
(174,857)
(41,849)
15,607| ||(104,748)
130,256
(150,131)
84,971| ## **21. MOVEMENT IN NET DEBT** |**21. MOVEMENT IN NET DEBT**|| |---|---| |**GROUP**
**Cash and cash equivalents**
Cash at bank and in hand
**Debt**
Loans|**At 31**
**December**
**2022**
**Cash flows**
**Non cash**
**flows**
**At 31**
**December**
**2021**
**£**
**£**
**£**
**£**
328,749
(150,055)
-
478,804
(476,922)
23,078
-
(500,000)| ||(148,173)
(126,977)
-
(21,196)| The parent company had net debt of £249,835 at 31 December 2022 (2021: £77,475). ## **22. CONSTITUTION** The Charity is a company limited by guarantee and does not have a share capital. In the event of winding up the members are liable to contribute up to £100 each. The number of members at the year-end was 5 (2021 -5). ## **23. CAPITAL COMMITMENTS** The Group and the parent company had no capital commitments at the year end. ## **24. TAXATION** The company is a registered charity and is entitled to claim annual exemption from UK corporation tax under sections 466 to 493 of the CTA 2010. ## **25. RELATED PARTIES** The transactions and balances are disclosed on page 10 of the Trustees’ and Directors’ Report as related party transactions in accordance with the Charities SORP, FRS 102 and Companies Act 2006. 34