## **The Friars, Aylesford**
**Annual Report and Consolidated Financial Statements**
Year ended 31 December 2021
Charity Registration Number 1068518
Company Registration Number 03487590 (England and Wales)
## **Contents**
## **Reports**
|Reference and administrative details of||
|---|---|
|the charity, its trustees and its advisers|1|
|Trustees’ report|2|
|Independent auditor’s report|29|
|**Financial statements**||
|Consolidated statement of||
|financial activities|33|
|Balance sheets|34|
|Consolidated statement of cash flows|35|
|Principal accounting policies|36|
|Notes to the financial statements|41|
The Friars, Aylesford
## **Reference and administrative details of the Charity, its Trustees and its advisers**
|**Trustees**|Rev Brendan Grady, O. Carm.|
|---|---|
||Rev Patrick O’Keeffe, O. Carm.|
||Rev Francis Kemsley, O.Carm.|
||Isabel Bodunrin|
|**Advisers to the Trustees**|Mr Jonathan Louth|
||Mrs Jan Wilkinson|
||Mr Simon Howell|
|**Secretary**|Mrs Clare Abbotson|
|**Registered office**|The Friars|
||Aylesford|
||Kent|
||ME20 7BX|
|**Charity registration number**|1068518|
|**Company registration number**|03487590 (England and Wales)|
|**Auditor**|Buzzacott LLP|
||130 Wood Street|
||London|
||EC2V 6DL|
|**Principal bankers**|The Royal Bank of Scotland plc|
||62/63 Threadneedle Street|
||London|
||EC2R 8LA|
|**Solicitors**|Pothecary Witham Weld|
||84 Eccleston Square|
||London|
||SW1V 1PX|
The Friars, Aylesford
**1**
**Trustees’ report** Year ended 31 December 2021
## **FOREWORD**
2021 was not without challenges – the continuous difficult situation with the coronavirus pandemic forced us to quickly adapt and in doing so we learnt a lot about how to best serve our visitors with cost saving at the centre of everything.
Nonetheless, I am immensely proud of what we have achieved in what continues to be challenging times. The collective team spirit of our staff is commendable, and I remain grateful for their hard work, dedication, and commitment. I am also proud of the Group’s financial results which is testament to its strength and resilience, but also to the creativity of our teams.
Despite trading for just six months the Group returned a combined surplus of £328,322 which was better than forecast.
We were fortunate to receive some legacies and donations and some help from government grants. During the year, we also received grants from the programme of Major Works Scheme which is part of the Cultural Recovery Funds towards repairs to the roofs of our chapels.
Whilst the pandemic prevented in person gathering, we continued to hold directors’ and board of trustees’ meetings online.
Looking forward, despite the varied challenges presented by the pandemic, there are many reasons for us to be cautiously optimistic. Amongst them is the introduction of Creative Aylesford, a development group which is aimed at reflecting the desire for developing more partnerships to a greater degree than ever before.
As we enter 2022, we will continue to evolve and innovate to best meet the needs of our visitors; for example, providing internet service in our guest house, chapels and shrine area. There is much more to do, and we will continue to work with all our stakeholders to achieve this.
I could not sign off without recognising the impact that our board of trustees and advisers’ team have had on the success of our strategy. They have devoted so much time and effort to the Group in this challenging period.
I have no doubt that the passion, dedication and sheer determination of our teams will ensure that we continue our strong road to recovery in the coming year. I also believe that our proven ability to be flexible in our approach will serve us well in the years to come.
Pearl Nyafli
Operations and Business Development Manager
The Friars, Aylesford
**2**
## **Trustees’ report** Year ended 31 December 2021
The Trustees, who are the directors for the purposes of company law, are pleased to present their statutory report together with the consolidated financial statements of The Friars, Aylesford (the “Charity”) and its subsidiary Aylesford Priory Limited for the year ended 31 December 2021. This report has been prepared in accordance with part VI of the Charities Act 2011.
The financial statements have been prepared in accordance with the accounting policies set out on pages 36 to 40 of the attached financial statements and comply with the charitable company’s Memorandum and Articles of Association, applicable laws and Accounting and Reporting by Charities: Statement of Recommended Practice, applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102).
These financial statements consolidate the activities of The Friars, Aylesford and its wholly owned subsidiary Aylesford Priory Limited. The subsidiary company, which manages the commercial activities, has been trading since 1 January 2010.
## **The Friars, Aylesford**
## **Historic Overview**
Aylesford Priory, better known as The Friars, first came into the hands of the Carmelites in 1242. There are a number of medieval buildings still standing that are Grade I listed. They include two walks of the Cloisters, the Cloister Chapel, Priors’ Hall, and Pilgrims’ Hall which still provide hospitality to guests and pilgrims. One building provides accommodation to a community of Carmelite Friars. The Community returned in 1949 after leaving at the Dissolution of the Monasteries in 1538. A new Gothic style outdoor Shrine was built. Work began in 1958. It has a fine collection of religious modern art and was recently Grade II* listed.
Aylesford Priory is now a 44 acre site of significant religious and historical interest, attracting around 100,000 to 120,000 visitors in a more typical year. At its heart is a major religious shrine, the Shrine of Our Lady of Mount Carmel and St Simon Stock. The open air Marian shrine has a wide piazza which has room for up to 6,000 pilgrims, and a series of five linked chapels of varying sizes.
The Friars, Aylesford
**3**
## **Trustees’ report** Year ended 31 December 2021
## **Historic Overview** (continued)
Our surviving medieval buildings are now partly used as a home to some members (friars) of the Carmelite Community, the remainder forming part of our hospitality facilities, our guest house and conference suite, which with additional newer buildings can now accommodate up to 100 overnight visitors. The site also has a tea room and a gift shop located in a refurbished 16th century thatched barn, and some auxiliary buildings which are offered for rental to individuals and local businesses.
From 1949 Aylesford Priory formed a part of a Carmelite Charitable Trust, which covered England and Wales. However, in 1997, the management of Aylesford Priory was devolved to a separate charitable company, The Friars, Aylesford. The ownership of the site and buildings remains with the overall charity, namely the Carmelite Charitable Trust but the administration, the maintenance and the development of the site and the management of the commercial activities have been entrusted to The Friars, Aylesford, and its wholly owned subsidiary company, Aylesford Priory Limited formed in 2010.
## **Objectives and Activities**
The purpose of The Friars, Aylesford, as set out in the Memorandum of Association, is primarily to maintain and develop the Aylesford Priory site as a Marian shrine and retreat/conference centre at the service of the Roman Catholic community as well as other churches, people of other faiths, groups and individuals who wish to use the facilities. The trustees have given careful consideration to how activities of The Friars meet their statutory duty and have considered the Charity Commission’s guidance on public benefit. This report sets out how our activities benefit those who visit The Friars, Aylesford Priory, as well as the local and wider community affected by our presence and outreach activities.
## **Our Vision**
A meeting place and centre of Christian spirituality with a Carmelite community at its heart; a space where people of all ages and all faiths and none, will find a welcome, where the sacred is expressed through prayer, the arts and nature.
_Be still and know that I am God (Ps 46.10)_
## **Our Mission**
- To work in partnership with others
- To be inclusive
- To act responsibly as stewards of the buildings and the physical environment
- To be accountable to all our stakeholders
**Our Values** _Love one another as I have loved you (Jn 15.12)_
The Friars, Aylesford
**4**
## **Trustees’ report** Year ended 31 December 2021
## **Our Objectives**
- Such charitable purposes which advance the Roman Catholic religion in any part of Great Britain.
- To promote for the benefit of the public the restoration, presentation and maintenance of the historic buildings, amenities and grounds of The Friars, Aylesford.
## **Our Ethos**
- We derive our values from the life, message and teachings of Jesus Christ and our inspiration comes from our models, the prophet Elijah, the Blessed Virgin Mary and the saints of the Carmelite Family.
- The basis of our work is an expression of our commitment to serve the people through friendship, hospitality and a desire to live out the values that Christ preached.
## **Principal Activities**
The Friars, Aylesford principal activities and whether they meet our key objectives of partnership, inclusivity, stewardship and accountability are detailed in the table below. It is worth noting that in early January 2021, England entered the third national lockdown due to the Omicron virus and there was subsequently a phased easing of restrictions for different sectors of the economy.
A grey tick therefore indicates our objectives were partially achieved due to the continued impact of the pandemic during 2021.
## **Daily Visitors**
From July 2020, Masses were held on the Main Shrine four days a week. This was made possible by having a marquee erected (with permission from Historic Churches Southeast) over the Shrine for six months. The marquee was loaned by a benefactor. These outdoor Masses were very popular, and people came from afar. People felt The Friars was a safe and prayerful place to visit and outside Masses remained until October 2021. There is a friar available three hours a day to see pilgrims for confessions and other spiritual matters.
Partnership Inclusivity Stewardship Accountability
The Friars, Aylesford
**5**
## **Trustees’ report** Year ended 31 December 2021
## **Principal Activities** (continued)
|**Pilgrimages**|Due to the continuous impact of Covid-19 pandemic all pilgrimages|
|---|---|
||due to take place before July 2021 were cancelled. Pilgrimages|
||resumed with Our Lady of Mount Carmel pilgrimage on 11 July|
||2021. All pilgrimages that came after the month of July were|
||understandably smaller than usual. The Goan pilgrimage was the|
||largest. Ordinarily, we would have a comprehensive programme|
||welcoming between 21 national and international pilgrimage groups|
||of various sizes (100 to 2,000 people) to our shrine, as a place of|
||prayer, offering a meeting place and centre of spirituality. We hosted|
||only 11 groups between the months of July and October 2021,|
||which was 55% of the 20 planned. A pilgrimage secretary has been|
||employed to look after our visiting groups and to encourage|
||bookings. The pilgrimage secretary works with Catholic dioceses or|
||societies, and a variety of Christian denominations. Contacts also|
||include Primary and Secondary Schools, Adult Education,|
||University of the Third Age and Groups with Disabilities and Special|
||Needs. There are no fees for these bookings; however, voluntary|
||donations are often received. During 2021, sacristy work was|
||carried out by the Carmelites and the pilgrimage secretary, acting|
||as the Sacristan, left our employment and was not replaced.|
||Partnership
Inclusivity
Stewardship
Accountability|
|---|---|
|||
|||
|**Educational Tour**|We offer educational tours for groups covering the history of the|
|**Groups**|Carmelite Order here at Aylesford, the art work, Christian education|
||and the development of Aylesford Priory. These tours are of interest|
||to historical, art, and other educational groups and we often|
||welcome foreign groups visiting the UK. There are no fees for these|
||bookings; however, voluntary donations are occasionally received.|
||Once again in 2021 there were no educational tours due to the|
||impact of the pandemic.|
||Partnership
Inclusivity
Stewardship
Accountability|
|||
The Friars, Aylesford
**6**
## **Trustees’ report** Year ended 31 December 2021
## **Principal Activities** (continued)
**Schools** We have a schools’ programme, offering guidelines and resources **Programme** to support teachers and other adults who bring groups of children and young people to Aylesford. These were updated in 2021 by the pilgrimage Secretary and Carmelite Young People’s Coordinator. Some of the information provided is linked to the National Curriculum or Religious Education programmes of study. The programme has been designed to support spiritual, moral, social, and cultural education. There are no fees for the schools’ programmes. We had 17 school groups visiting from 23 June 2021, several of whom visited more than once Partnership Inclusivity Stewardship Accountability **Outreach** Southwark Catholic Youth Service (SCYS) was disbanded in March **Programme for** 2020, as St Vincent’s Centre in Whitstable had to close. In **Schools and** September 2021, the Carmelite Charitable Trust employed a **Young Adults** Carmelite Young People and Formation Commission Coordinator. It is hoped that a new Youth Community will become established in the Gatehouse. The Community of Friars will work with schools and other youth projects.
Partnership Inclusivity Stewardship Accountability **Retreats** Due to pandemic restrictions, there was just one Retreat held in 2021, a Grief and Loss Retreat, which was attended by 10 people. All the participants suffered bereavements during the pandemic and more such retreats are now being offered. We usually offer a place of retreat for individuals and groups. Members of the Carmelite Community (the friars) often work alongside groups that come to stay at The Friars, Aylesford. These scheduled retreats include formal talk/discussion periods, quiet time and joining the community services. A charge is made to cover the hospitality costs and any speaker fees. The number of people coming for organised residential retreats is declining so we are focussing more on the day groups.
Partnership Inclusivity Stewardship Accountability
The Friars, Aylesford
**7**
## **Trustees’ report** Year ended 31 December 2021
## **Principal Activities** (continued)
**Fundraising** To maintain the historic buildings at The Friars and to financially **Activities** support the free pastoral offers to visitors, there is a continued programme of fundraising events. These include a Summer and Christmas Fayre, musical and dramatic productions. In 2021, the pandemic prevented us from holding the Summer Fayre, but we managed to hold the Christmas event, which was a great success. Despite the pandemic, we distributed approximately 22,000 pilgrims’ newsletters to around 6,500 people and we have an informative website which is regularly updated and maintain regular social media presence, including invitations to, and reviews of, events. We do not use professional fundraisers or participators. Partnership Inclusivity Stewardship Accountability **Maintenance and** We review, plan, and invest in the presentation, upkeep and **Restoration** maintenance of the grounds, buildings, and facilities to provide a comfortable, safe, accessible environment for all our guests, Carmelite community, staff, and volunteers. During 2021, refurbishment work on our guest rooms continued. Drainage improvements to the Chapel roofs and the painting of the tribune of the Relic Chapel and Confessionals was carried out, largely paid for by a Government Cultural Recovery Grant.
Partnership Inclusivity Stewardship Accountability
The Friars, Aylesford
**8**
## **Trustees’ report** Year ended 31 December 2021
## **Principal Activities** (continued)
|**Commercial Trading**
**(Aylesford Priory**
**Limited)**|Aylesford Priory Limited, Company Registration Number
06740190 (England and Wales), is a wholly owned subsidiary
of The Friars, Aylesford.
The company’s principal activity is to provide a profit on
commercial activities at Aylesford Priory to financially support:
the pastoral activity of the Charity; the promotion of the benefit
to the public; and the restoration, presentation and maintenance
of the historic buildings, amenities and grounds of The Friars,
Aylesford.
The trading activity is primarily the provision of conference
facilities, guests’ catering and accommodation, events, and sale
of books, gifts, and refreshments. Trading activity was curtailed
significantly in 2021 due to the impact of the pandemic.|Aylesford Priory Limited, Company Registration Number
06740190 (England and Wales), is a wholly owned subsidiary
of The Friars, Aylesford.
The company’s principal activity is to provide a profit on
commercial activities at Aylesford Priory to financially support:
the pastoral activity of the Charity; the promotion of the benefit
to the public; and the restoration, presentation and maintenance
of the historic buildings, amenities and grounds of The Friars,
Aylesford.
The trading activity is primarily the provision of conference
facilities, guests’ catering and accommodation, events, and sale
of books, gifts, and refreshments. Trading activity was curtailed
significantly in 2021 due to the impact of the pandemic.|Aylesford Priory Limited, Company Registration Number
06740190 (England and Wales), is a wholly owned subsidiary
of The Friars, Aylesford.
The company’s principal activity is to provide a profit on
commercial activities at Aylesford Priory to financially support:
the pastoral activity of the Charity; the promotion of the benefit
to the public; and the restoration, presentation and maintenance
of the historic buildings, amenities and grounds of The Friars,
Aylesford.
The trading activity is primarily the provision of conference
facilities, guests’ catering and accommodation, events, and sale
of books, gifts, and refreshments. Trading activity was curtailed
significantly in 2021 due to the impact of the pandemic.|Aylesford Priory Limited, Company Registration Number
06740190 (England and Wales), is a wholly owned subsidiary
of The Friars, Aylesford.
The company’s principal activity is to provide a profit on
commercial activities at Aylesford Priory to financially support:
the pastoral activity of the Charity; the promotion of the benefit
to the public; and the restoration, presentation and maintenance
of the historic buildings, amenities and grounds of The Friars,
Aylesford.
The trading activity is primarily the provision of conference
facilities, guests’ catering and accommodation, events, and sale
of books, gifts, and refreshments. Trading activity was curtailed
significantly in 2021 due to the impact of the pandemic.|
|---|---|---|---|---|
||Partnership|Inclusivity|Stewardship|Accountability|
||||||
The Friars, Aylesford
**9**
## **Trustees’ report** Year ended 31 December 2021
## **Principal Activities** (continued)
**Picture of Light up a Life – With Heart of Kent Hospice**
## **Volunteers**
The continued Covid-19 restrictions throughout much of the reporting year made it challenging for our volunteers to provide the same level of service we had in pre-pandemic times. It was only after the various lockdowns were lifted that a few volunteers felt confident enough to visit and give their service. There are many volunteers who help The Friars in their charitable activities, giving their time and invaluable support. The numbers of volunteers fluctuate according to people’s availability, but there are approximately 25 volunteers with some distinct volunteer groups: The Peace Garden Gardening group, and Pastoral, Domestic and Fundraising groups. It is worth mentioning that a proportion of these volunteers have been helping over many years and the amount that they are able to do is diminishing. The Friars hopes to address this by attracting new volunteers.
The Pastoral Team has transformed into a regular Prayer Group and will continue to support the pastoral ministry of The Friars. The Team, which includes some volunteers, meets regularly to help plan and support retreat programmes and enhance the pilgrim experience. The group members develop prayer opportunities, pilgrim tours and ways to improve the pastoral areas of the site.
The Peace Garden group assists the Estates Team to maintain the grounds and usually meets and tends the gardens each Thursday and Saturday.
Among the regular worshipping community at The Friars, volunteers support us at social events and fundraising activities.
The Friars, Aylesford
**10**
## **Trustees’ report** Year ended 31 December 2021
## **Volunteers** (continued)
Due to the pandemic, there was limited volunteering opportunity in the first six months of the year but once restrictions were lifted, the Peace Garden Group reconvened, and volunteers assisted with our Christmas Fayre in November 2021.
We are privileged to have a small number of professionally qualified lay advisors who hold honorary positions and regularly attend Trustees’ meetings for The Friars and Directors’ meetings for its subsidiary trading company Aylesford Priory Limited
The Trustees would once again wish to record their recognition of the professionalism and commitment of all their staff, volunteers, advisors, and the individual members of the Carmelite Community. Their dedication and positive approach are very much appreciated.
## **Achievements and Performance in 2021**
This time last year (2020) we would’ve been forgiven for thinking that 2021 would see all our economic worries melt away, instead, we experienced the worst form of déjà vu, with the hospitality industry suffering further restrictions, and the understandable concerns caused by the Omicron variant impacted severely on our operations.
Trading for only six months of the year meant that some of our goals were partially achieved as illustrated in the table below:
|**_What we said we would do in 2021_**|**_What we did in 2021_**|
|---|---|
|1.
Deliver the agreed 2021 break-
even budget|The Group made a combined profit of £328,322
of which Aylesford Priory Limited made a loss of
£31,990 and The Friars Aylesford make a
surplus of £360,312. The surplus for the charity
was a result of generous donations and
legacies received.|
|2.
Continue to invest in specific
priority capital and maintenance
projects approved by the board to
be funded by accumulated
reserves brought forward from
2020|Continued works to the Shrine roofs with the
help of a cultural recovery grant is taking place
in two phases, which will continue through to
2022. The rainwater disposal, previously
through pipes hidden in walls, will mostly have
been brought out to the exterior, minimising
leaks caused by blockages.
The kitchen garden peg tile roof was repaired.
The Gatehouse convent facilities were also
repaired.
There were urgent repairs to the boundary /
Rosary Way wall.|
The Friars, Aylesford
**11**
## **Trustees’ report** Year ended 31 December 2021
## **Achievements and Performance in 2021** (continued)
|3.
Develop a three-year business
plan and a more formalised
reserves policy|The development of this plan was not achieved
and was deferred to 2023 – given the ongoing
uncertainties with the pandemic during much of
2021.|
|---|---|
|4.
To further the plans for the
development of a new Pastoral
Centre|In September 2021 the province employed a
Carmelite Young People and Formation
Coordinator, and part of their job is to develop a
young adult community, based at The Friars
Aylesford. This community would be able to
develop programmes and support young people
both at The Friars and beyond.|
## **Fulfilling our mission 2021**
## _**Working in partnership with others**_
The Friars is an important retreat and pilgrimage centre. Several groups would come to pray and worship at the Shrine. Once the pandemic restrictions were eased, pilgrimages resumed from early July 2021.
The Friars and the Southwark Catholic Youth Services (SCYS) have continued to work closely together and further developed the work on the schools’ retreat programme.
The Changeling Theatre Group put on A Midsummer Night’s Dream in the month of July.
The Friars continued to play host to the Farmers’ market even during lockdown restrictions as outside markets were permitted to operate.
## _**Be inclusive**_
Aylesford Scouts continued to use the Brocard Room for their meetings. It is worth noting that the Brocard Room was also used by other groups, such as the Enamellers, the Woodturners and Syro Malabar group.
Aylesford Pottery offered limited classes to groups with learning disabilities (Emotional Behaviour Disorder). These classes inspire many visitors to develop new skills. The Potters’ work with schools and disability groups gathered more momentum after lockdown restrictions were fully lifted in July.
The Alcoholics Anonymous (AA) meetings also resumed after the lockdown restrictions were lifted.
Our guesthouse continued to welcome people of all backgrounds, abilities, ages and all faiths and none. Between the months of July and December, we hosted a number of small groups, like mindfulness training groups, yoga and reiki groups.
The Friars, Aylesford
**12**
## **Trustees’ report** Year ended 31 December 2021
## **Fulfilling our mission 2021** (continued)
## _**Acting responsibly as stewards of the buildings and the physical environment**_
During 2020, it became clear the archdiocesan intention to construct a pastoral centre in the walled garden would not proceed and, therefore, our focus must shift towards smaller, more incremental partnerships, in other areas of the estate. In September 2021, the province appointed a Carmelite Young People and Formation Coordinator. Part of this role is to develop a young adult community based at The Friars Aylesford. This community would be able to develop programmes and support young people both at The Friars and beyond. The advisors are in the process of developing appropriate accommodation and facilities on site. The coordinator is also developing resources and developing partnerships to support the project **.**
Proactive exploration of opportunities for collaborative partner organisations and for the improved use of the whole site continues.
We continue to ensure all the buildings and the site are as safe as is reasonably possible for the many visitors we welcome. We have been responding closely to government guidelines to open, close or re-open our public income-generating facilities, albeit with reduced staffing.
## **Capital commitments**
2021 was not a normal year for capital or running expenditure on the estate. We completed the 2020 programme of works to the shrine roofs funded, unexpectedly, by the UK Government’s Cultural Recovery Fund’s Programmes of Major Works Scheme: that second project – the first having been self-funded – left some items of roofing and rainwater disposal still undone. We were surprised to obtain a further grant in late 2021 so works will continue into 2022, completing the over-whelming majority of high-level deficiencies in the shrines. The rainwater disposal, previously through pipes hidden in walls, will mostly have been brought out to the exterior minimising leaks caused by blockages.
The Friars, Aylesford
**13**
**Trustees’ report** Year ended 31 December 2021
## **Capital commitments** (continued)
**Above: Repair works on chapel roofs**
There was less wear and tear on facilities, but we had less staffing during the pandemic so fewer tasks were undertaken: that slightly reduced the maintenance budget outlay and made it just about manageable with the two available estates staff. During late 2021, we moved to appoint a third person to complete the team.
Since 2019, the quinquennial architects now attend and report to the Estates Group on a planned basis: there is an improved sub-division of specialist conservation work under their direction and ordinary in-house facilities management works, which reassures us on the capital expenditure projects.
Beside (and despite) the problems of the pandemic, the Estate Manager continued the annual risk assessments and his programme of health & safety, security, electrical and mechanical checks, and inspections, addressing matters from red to amber to green on the relevant reports, as and when received.
The Friars, Aylesford
**14**
## **Trustees’ report** Year ended 31 December 2021
## **Capital commitments** (continued)
The quinquennial architect and a building services consultant brought reports and tenders for one of the five boiler systems to fruition: the work, delayed from 2020, will proceed in 2022. Monitoring of the environmental conditions in St Ann’s Chapel has continued. The grantfunded work includes an element of environmental and conservation analysis and reporting: those consultants will have to be appointed to advise on statuary, sgraffito, and ceramics including the Rosary Way. The architect has embarked on a phased repair of stone walls (walled garden, riverside, buttresses and the like).
Work to improve the bedrooms in the older visitor wings of the estate proceeded in 2020 with some en-suite bathrooms and re-furbishing of six rooms: however, the scope of work did not improve acoustic insulation or electrical systems (to offer kettles or tea-points and the like). Plans for a further 3 rooms were shelved during 2021, in part as the staff had too little time and the price from external contractors was beyond the allocated budget. The Prior has obtained promise of funding for further upgrades from a Trust. It will be necessary in 2022 to identify whether the upgraded rooms bring a better return on income and occupancy rates, whether the loss of bedrooms in forming en-suites would affect the groups who book and whether the Local Planning Authority would need to give listed building consent for further radical alterations.
The Potters had previously undertaken to build a small additional building at their expense (which they completed) and the local Tree Surgeon similarly made improvements to the horse field (top field) which he rents. Both licenses were redrafted to reflect that: this work provides a blueprint for other tenants and license holders, who also have skills to maintain or improve the estate. The Upholsterer asked to undertake a comparable development along similar lines and that initiative will need to be followed through if feasible. The firm that advises and runs our IT/Internet infrastructure similarly asked to co-locate on the site and discussions/license should progress in 2022.
It should be noted that neither construction costs, nor construction labour, are easier to manage than before the pandemic: few firms tender for works, unless it is very clearly straight-forward and within their main skillset. If they tender, then their availability to concentrate on the estate, compared with their other more regular or larger clients, is poor. Accordingly, the Estates Manager and Estates Group Chair proposed gradually negotiating “term contracts” for the most relevant contractors and sub-contractors: the intention has been agreed and will have to be followed through, according to a sequence of largest or most frequently needed skills being prioritised. An element of competitive scrutiny (or value certainty) will be achieved through the negotiations being led by the quinquennial architect.
These matters, and the enthusiasm of new senior management staff to look once more at local contracts for supplies and local partners for events, led to re-establishing the Aylesford Development Group with a new name, Creative Aylesford, reflecting an aspiration to work with partners and suppliers whose local network will expand the outreach and effective mission of the Community. Creative Aylesford has offered the chance to align events and buildings redevelopment, with revenue and capital expenditure priorities.
The Friars, Aylesford
**15**
## **Trustees’ report** Year ended 31 December 2021
## **Capital commitments** (continued)
Hence, as reported in 2020, the emphasis on social enterprise, community volunteering and artisan tenants is likely to be progressed, as well as working towards engaging with appropriate commercial partners who are sympathetic to the mission, values and ethos of The Friars. It will be necessary in 2022 to expand the Creative Aylesford group to include representatives of the Carmelite province, so that The Friars Aylesford (TFA) and Aylesford Priory Limited (APL) can be assured that ideas and plans also match the aspirations of the Carmelite Order beyond our own boundaries.
Given the ongoing significant maintenance projects authorised in 2018, the Trustees agreed with the province (Carmelite Charitable Trust) that ongoing maintenance related to the cost of trading as a public venue, would be absorbed in the annual budgets, whereas capital repair and investment in the buildings as assets, such as flood protection pump systems, would be reimbursed through legacy income and other financial support from the province. We decided in 2021 to seek a discussion with the province, more clearly to allocate responsibilities for the building assets and to reconfirm terms of reference: the request was agreed, and the discussions will commence in 2022.
When that division of financial responsibilities is agreed, it will be easier to allocate works for the decade 2023-2032 that will follow the 2023 Quinquennial survey.
## **What we do for public and community outreach**
The Friars is home to many significant works of art, in particular a great number of ceramics by Adam Kossowski, in chapels, the grounds and in particular in the Prior’s Hall, where there are a series of narrative artworks depicting the history of The Friars, whilst also reflecting the Carmelite values and traditions. The public benefit of having free access to such works of art is widely appreciated and was formally recognised in the Grade II listing in 2016.
The site also presents a significant public benefit in that it has proved very popular with artists and photography clubs and conservation groups. We have regularly seen groups producing paintings of the various listed buildings and the wonderful grounds and have had considerable interest in the examples of very old trees. This activity was limited in 2021.
The Friars continues to encourage event organisers to arrange their events on the grounds including classic and vintage car shows, bike shows and several dramatic performances.
## **Fulfilling our Objectives in 2021**
## _**Be accountable to all stakeholders**_
The Friars’ quarterly pilgrims’ newsletter continued to be very important means of sharing information with our visitors, bringing a message of hope and spirituality to them. In 2021, well over 6,000 newsletters were circulated to people throughout the United Kingdom and the Republic of Ireland and beyond. Our readership continued to find newsletters very beneficial during the pandemic because it was the only way they could keep in touch with The Friars.
The Friars, Aylesford
**16**
**Trustees’ report** Year ended 31 December 2021
**Fulfilling our Objectives in 2021** (continued)
## _**Such charitable purposes which advance the Roman Catholic religion in any part of Great Britain**_
The Friars is primarily a Roman Catholic shrine and pilgrimage centre. Served by its Carmelite community, there are normally regular Masses celebrated each day, together with confessions, counselling, and consultations. Masses, confessions, and counselling activities were all put on hold until July 2021 from when Masses were held four days in the week outside on the Shrine. We also held a special mass for the victims of Covid on 11 September. The Syro-Malabar community joined us for Mass twice a month and they provided stewards for Mass. The Choir Chapel was opened for prayer three days a week.
The usual Lent Talks were unable to take place due to restrictions.
In 2021, some Schools continued to visit in September when restrictions were eased but these were prone to last minute cancellations due to year groups having to suddenly self-isolate. These schools offer their individualised programmes with the help of the Carmelite community. These programmes include history and art appreciation, and in most cases the young people attend Mass in one of the chapels. Many of the students who visit us come from the inner city and they enjoy the natural environment and expansive grounds. The friars are usually involved with these groups, taking them on tours explaining the history of the Carmelites in England and giving them an understanding of the various artworks.
We had groups who visited for the first time and hope to organise a pilgrimage in 2022, notably the Association of Polish Knights of Malta and a group from the Vietnamese community in South London.
As usual, we hosted the national gathering of the Carmelite Order and the year ended with the Heart of Kent Hospice “Light up a Life” event on 5 December.
## _**To promote for the benefit of the public the restoration, presentation and maintenance of the historic buildings, amenities and grounds of The Friars, Aylesford**_
Our ever - popular Mothering Sunday, Christmas and Easter lunches and several other events and social gatherings such as celebration of life buffets and weddings that would normally take place in the Pilgrims’ Hall were sporadic. We managed to host our yearly Christmas lunch with great pleasure to our clients.
To support families who have lost loved ones we continue to offer memorials in the form of benches, plaques, and trees, which are normally placed in our grounds. Demand for this undoubtedly went up during the pandemic as several families had lost loved ones and wanted a suitable memorial for them. It is worth noting that we are gradually running out of space for such memorials, and we are beginning to explore other types of memorials. We also offer bereaved families a place to celebrate the life of their loved ones, providing a venue and catering for funerals, as allowed during the pandemic restrictions.
In 2021, despite the pandemic, The Friars continued to host the monthly outdoor Farmers’ market. This brought in revenue to The Friars but also served the community allowing local producers to exhibit and sell their produce and afford us an opportunity to welcome those who would otherwise not visit.
The Friars, Aylesford
**17**
## **Trustees’ report** Year ended 31 December 2021
## **Financial Review**
Part of the year was marked by the severe disruption caused by the global pandemic, but nonetheless, this has been a fairly good year for us, where financial results are concerned. We adapted quickly and had a strong post covid recovery plan in place. We understood that consumer confidence was not back to pre-pandemic levels and had to find a way of attracting our customers back. The trustees’ stated aim in December 2020 was for the group to achieve a balanced budget and a continued commitment to invest in overdue maintenance projects.
The final results for 2021 have significantly exceeded our expectations which were for loss of income and, combined with the agreed cost savings that were achieved, by not immediately replacing staff (following on from unavoidable redundancies in 2020), meant that we ended the year with a combined net operating surplus of £328,322. This overall result was made possible due to the receipt of the UK Government Coronavirus Job Retention Scheme grant, the local authority business support grants, legacies, and generous donations. The team were resilient and worked hard to save on salaries and other overhead costs.
## _**General Funds**_
Despite not trading for a full year, the consolidated statement of financial activities shows that the Group (The Friars, Aylesford and Aylesford Priory Limited) returned a surplus of £328,322.
The trading activities of Aylesford Priory Limited was a loss of £31,990 (2020: £270,928 loss), (please see note 11). However, a surplus of £360,312 (£255,017 in 2020) was made by the Charity, resulting in a Group surplus of £328,322 (2020: loss of £15,911)
General reserves were £434,924 compared to £278,761 in 2020.
## _**Restricted Funds**_
£378,282 (2020: £365,380) of restricted funds were brought forward into 2021, represented by £17,491 (2020: £17,931) for the Peace Garden and £360,791 (2020: £347,449) for the Restoration Fund.
Carried forward Restricted Funds as at 31 December 2021 are £311,869 (2020 £378,282) comprising £294,392 for the Restoration Fund and £17,477 for the Peace Garden.
Total funds as at 31 December 2021 were £1,109,300 (2020: £780,978) represented by £311,869 (2020: £378,282) of Restricted Funds, £635,055 of Tangible Fixed Assets (2020: £364,493), a shortfall of £(272,548) in Aylesford Priory Limited Funds/Reserves (2020: £(240,558)) and £434,924 of General Reserves (2020: £278,761).
## _**Income**_
The Group income for 2021 by activity is shown in figure 1 below, and figure 2 shows the increase in income from 2020 to 2021 by activity.
The Friars, Aylesford
**18**
## **Trustees’ report** Year ended 31 December 2021
## **Financial Review** (continued)
## _**Income** (continued)_
Figure 1 – 2021 Group Income by Activity
The Total income for the group was £1,369,703.
|Category|Income|% share|
|---|---|---|
|APL|£456,871|33.4%|
|Legacies|£77,181|5.6%|
|Unrestricted donations|£168,489|12.3%|
|Restricted donations|£249,099|18.2%|
|Rental Activity|£38,114|2.8%|
|Fayres|£39,184|2.9%|
|Shrine Activity|£71,172|5.2%|
|Car Park donations|£3,217|0.23%|
|Carmelite Charitable Trust donation|£120,000|8.8%|
|Coronavirusjob retentiongrant|£91,978|6.7%|
|Business supportgrants|£54,398|4%|
|**Total Income**|**£1,369,703**|**100%**|
Within the above total income, Aylesford Priory Limited turnover was £456,871 (made up of: - Hospitality, £97,723; Tearoom, £161,656; Gift shop £71,473; Events/bars £34,278; and Pilgrims’ Hall £91,742). All other income was derived from activities of The Friars Aylesford: - legacies £77,189; unrestricted donations £168,489; restricted donations £249,098; rental activity £38,114; fayres £39,184; shrine activity £71,172; car park donations £3,217; the Carmelite Charitable Trust donation £120,000; Coronavirus Job Retention Scheme grant of £91,978; and Covid-19 business support grants of £54,398.
The majority of this income was earned between the months of July and December.
The Friars, Aylesford **19**
**Trustees’ report** Year ended 31 December 2021
## **Financial Review** (continued)
## _**Income** (continued)_
Figure 2 – 2021 Group Income by Activity compared to 2020
**----- Start of picture text -----**
2021 Group Activity compared to 2020
400
350
300
250
200
150
100
50
0
2020 2021
**----- End of picture text -----**
Turnover of Aylesford Priory Limited from the provision of hospitality (conference facilities and guest accommodation), events, sale of books, gifts and refreshments was £456,871, up by £185,892 (69%) from 2020.
Figure 2 highlights which department’s income improved or declined in 2021 compared to 2020. Sales from our Hospitality department were £98k, down by 17% against 2020 (£118k in 2020). Tea Room’s sales were £162k, 71% up against 2020 (£95k in 2020). The Gift Shop’s sales were £71k, up by £31k (80% up) in comparison to 2020 (£40k). Pilgrims’ Hall’s sales were £92k, up by £19k which was 26% up on last year (2020 £73k). Events and bars were £34k, up (325%) against £8k in 2020.
Results from our charitable activities were very positive in 2020, with increasing income especially from legacies. We received a total of £77,181 in legacies in 2021, in contrast to £353,143 in 2020, a decrease of 78%.
Our unrestricted donations were £168k up £93k on last year (up 124%). Shrine activity was £71k up by £34k (92%) on last year (£37k in 2020). Summer fayre was cancelled but we hosted the Christmas fayre bringing an income of £39k which was 118% up against 2020 (£10k).
The Carmelite Charitable Trust (CCT) continues to provide financial support to the Charity. The CCT and the Charity budget for an annual grant of up to £120,000 for the on-going costs of the charitable activities. An annual grant of £120,000 (2020 £120,000) was still received from the CCT in the year to support The Friars, due to the financial challenges brought on by the pandemic.
The Friars, Aylesford
**20**
**Trustees’ report** Year ended 31 December 2021
## **Financial Review** (continued)
## _**Expenditure**_
As the impact of the Covid-19 pandemic unfolded we quickly made provision for reducing our overheads and operating costs.
Our trading operating costs (cost of sales) of the subsidiary company Aylesford Priory Limited, was £523,154, down 15% against 2020 (£612,794). Whilst group income of £1,369,703 was also increased by 23% in comparison to £1,109,355 in 2020.
For full details of the investment in the wholly owned subsidiary Aylesford Priory Limited see note 11.
Notable increases in expenditure for the Charity are increased costs of raising funds (note 4) and Support of the Carmelite Friars (note 6). As already mentioned, the summer fayre was cancelled but we still managed to generate a healthy income of £39,184 (£10,000 in 2020) from the Christmas fayre alone. We remain hopeful that the ability to hold events returns to more normal circumstances, so we can invest in better attractions, to achieve a step change in the number of visitors to these events, to secure better income year on year.
The living and personal expenses of the Carmelite Friars at Aylesford were £56,102 (£47,946 in 2020) which is up 17% year on year.
Table 1 below shows that expenditure in 2021 on the upkeep of the shrine (note 5) was up 5% on 2020. The expenditure on premises and facilities costs was on par with the previous year 2020 (at -0.45%).
Direct costs of £60,859 (2020 £49,994) up 22% were made up of purchase of candles, memorial benches and plaques, direct staffing costs, utilities, cash handling, chapel ad hoc expenses and general expenses. Other indirect staff costs were £35,715 (2020 £29,606) up by 21%.
**Table 1- 2021 Expenditure on upkeep of the shrine compared to 2020**
||**2020**|**2021**|**%**
**Difference**|
|---|---|---|---|
|Governance costs|£10,888|£9,021|-17.1%|
|Office costs|£9,645|£12,345|+27.9%|
|Premises & Facilities costs|£234,959|£233,892|-0.45%|
|Indirect Staff costs|£29,606|£35,715|+20.6%|
|Direct Shrine costs|£49,994|£60,859|+21.7%|
|**Total**|**£335,092**|**£351,832**|**+5.0%**|
The Friars, Aylesford
**21**
## **Trustees’ report** Year ended 31 December 2021
## **Financial Review** (continued)
## _**Reserves**_
At 31 December 2021 unrestricted general funds amounted to £434,924 (£278,761 in 2020).
Since 31 December 2013, unrestricted general funds have improved from an unrestricted deficit of £231,052 to unrestricted funds in hand of £434,924 as noted above.
During the year, restricted funds have decreased from £378,282 (31 December 2020) to £311,869 (made up of Peace Garden £17,477 and Restoration fund £294,392) at 31 December 2021.
The total funds at 31 December 2021 are a surplus of £1,109,300 (2020 £780,978).
These total funds are represented by tangible fixed assets of £654,897, net current assets of £454,403 (2020 £387,765) including within net current assets a net cash position of £366,866 (2020 £341,247). Bank accounts held are part of a centralised, pooled banking system, together with and managed by the Carmelite Charitable Trust. Pooled bank accounts are managed to optimise return on investments. Any accumulated reserves will be invested in the restoration, presentation and maintenance of the historic buildings, amenities and grounds of The Friars, Aylesford.
Whilst the financial position of the Charity did not make progress towards short term financial stability in 2021, most notably because of the Covid-19 pandemic, the Trustees recognise that the historic buildings at Aylesford require significant material investment. Therefore, in 2022, they will continue to explore the two potential strands of opportunity identified in 2015 and subsequently adjusted:
- To secure the long-term presence of a Carmelite Community at Aylesford Priory and by working collaboratively with a new Young Adults Community; and
- To secure a commercial partnership agreement by considering a new commercial or social enterprise partner or partners, to use part of the available assets, that is the land and buildings at Aylesford Priory, in delivering activities that provide adequate income to meet or exceed the on-going costs and support the viability of the non-business charitable activities and in particular the maintenance of our historic buildings.
In 2020, the Trustees considered a new financial strategy considering the next three years. The implementation of this continues to be delayed due to Covid-19, so further discussions will be held in 2022, and part of this work will be to formulate a more formal reserves policy.
## **Risks**
Risks refers to factors that could prevent us delivering our plans and strategies or achieving our aims. Risks can be financial, political, regulatory or operational. Whilst we cannot control the risk occurring, we can ensure that we have sound mitigating actions and controls in place. Risk management is incorporated into our planning, organisational decision-making and management procedures. Our Trustees review the organisational risk register regularly (yearly), ensuring that we manage threats to our work appropriately.
The Friars, Aylesford
**22**
## **Trustees’ report** Year ended 31 December 2021
## **Risks** (continued)
The Covid-19 pandemic has had a significant impact on both the internal and external environment and has in turn affected our risk profile. Our principal risks and uncertainties identified for 2021 were:
|**Identified Risk**|**Impact**|**Existing Controls**|**Further Controls**
**implemented**|
|---|---|---|---|
|1.Financial
performance and
sustainability|External economic
or environmental
factors - continued
impact of Covid-19
on trading income.
Other internal or
external “crisis”
leading to
unexpected
increased
expenditure for
example damage
caused by storms
on our buildings.|Regular monitoring,
review, and
proactive
management of
financial position by
the management
team.
Ensure insurance
plan is in place.|Team adapted ways
of working.
Sought support from
Carmelite Charitable
Trust as needed.|
|2. Impact of
increased energy
prices|Prices expected to
more than double,
consequently
impacting on our
overhead costs and
affecting the overall
bottom-line.|Explore fitting solar
panels in the future.|Energy saving ideas
implemented.|
|3.The longer-term
UK economic effect
of the Covid-19
crisis|Further reduction in
gross income
impacting proposed
future forecasts.|Team being agile
and different ways
of working.|Developing strategic
plans to mitigate
risks. Flex our
approach in every
aspect.|
|4.Staff turnover and
succession planning|Difficulty in
recruiting the right
calibre post
pandemic.
Managing the
uncertainty in the
talent pipeline to fill
in vacancies as
others retire.|Continuous
recruitment and
staff are multi
skilled.
Identify potential
successors and
determine when
they will be ready.
Determine what
development needs
they may have.|Work closely with
recruitment
agencies.
Create a talent
pipeline.|
The Friars, Aylesford
**23**
## **Trustees’ report** Year ended 31 December 2021
## **Plans for the future**
|**_What we aim to do in 2022_**|**_How_**|
|---|---|
|1. Deliver the agreed 2022 budget.|We will continue to focus on bringing annual
expenditure in line with our income by targeting
our resources on our core mission, to achieve
better services for visitors. The external
environment, including the trajectory of post
pandemic recovery remains uncertain, and we
are clear that we need to remain agile and be
able to be flexible to meet the changing
demands of our clients.|
|2. Continue to invest in specific priority
capital and maintenance projects
approved by the board to be funded
by the accumulated reserves brought
forward from 2021.|Continue working with Estates Sub-group and
the Estates Manager and regularly review
progress on agreed projects:
Replacement of steam boiler and washer
dryer for laundry department
Continue renewal of conference centre
and guest house facilities.
Artwork conservation for the shrines and
Prior’s Hall.
Ongoing quinquennial maintenance work
including Brocard room, Hermitage, and
electrical repairs.
Continue monitoring humidity levels in St
Anne’s
Chapel
and
commence
conservation.
Hold quarterly Estates meetings.|
|3. Develop a three-year business plan
and a more formalised reserves
policy.|Trustees will agree plans for the next three
years and a targeted level of reserves to be
achieved.|
|4. To redefine terms of reference and
responsibilities
for
areas
of
expenditure.|Trustees will
draft
a
paper
and open
discussions
with
CCT
regarding
the
responsibilities of CCT, TFA, APL for protecting
the
historic
assets,
undertaking
major
maintenance and repairs or undertaking
running repairs and renewals. This arises out of
consideration of what the province would do at
Aylesford if there were no trading company.|
The Friars, Aylesford
**24**
## **Trustees’ report** Year ended 31 December 2021
**Plans for the future** (continued)
|**Plans for the future**(continued)||
|---|---|
|**_What we aim to do in 2022_**|**_How_**|
|5. To collaborate with CCT regarding
the
province
plans
for
the
development
of
a
new
Young
Peoples’
programme
in
the
Gatehouse and walled garden|Support the project by providing adequate
relevant resources to help drive forward this
exciting venture: responsibility for the capital
expenditure in this part of the estate should
naturally transfer to CCT. We will explore the
structure of an appropriate lease between CCT
and TFA.|
## **Covid-19 and the impact on going concern**
External environmental events and the continuous impact of post pandemic recovery poses economic uncertainty for The Friars.
The coronavirus (COVID-19) pandemic has highlighted and heightened differences across society and economy, and the hospitality sector is no exception. While the sector itself has been severely affected, some sub-sectors within have fared better than others. Overall, turnover for the hospitality sector has remained below its 2019 levels throughout the pandemic, with July 2021 25% lower than July 2019 and our Hospitality department follow similar trends.
Throughout 2021, the hospitality industry has been hit hard by the coronavirus pandemic and the impact has been severe. In the case of Aylesford Priory, our trading was stopped between the months of January and June.
In the first half of the year, all planned events, including weddings and pilgrimages, were postponed and our only source of income came from donations and legacies. Pilgrims’ Hall and our other trading outlets reopened on 19 July to offer the usual “walk-in” service. Trade picked up well and, in some departments, outperformed pre-pandemic results, which was very encouraging.
We looked at other ways of working and became agile and trained in other departments.
With the introduction of Creative Aylesford, the hope is to continue working with partners and suppliers whose local network will expand the outreach and effective mission of the community.
We will explore offering to a wider range of customers including groups, universities, Anglican and ecclesiastical movements.
We recognise it remains important to continue to exercise stewardship of our core salaries and cost levels, at least until we see sustained growth in all our other supporter income streams. Accordingly, we are still minded to maintaining base core expenditure levels (salaries and costs) in line with the lower levels included in the 2021 budget.
The Friars, Aylesford
**25**
## **Trustees’ report** Year ended 31 December 2021
## **Covid-19 and the impact on going concern** (continued)
There was significant uncertainty around the charity’s financial position and the Trustees looked to the Carmelite Charitable Trust to provide financial support during 2021 and over the next twelve to twenty- four months. The exact financial position of the charity and its subsidiary company continues to depend on a few factors, including the extent of travel bans and other restrictions, extending into 2022; the continued availability of government assistance (which was fully utilised in 2021) and potential sources of replacement financing; in addition to the financial health of suppliers and customers. All of these may impact on expected profitability and other key financial performance ratios including cashflows and maintaining sufficient liquidity to continue to meet obligations when they are due.
With the assistance of the Carmelite Charitable Trust, the Trustees have confidence that the charity and its subsidiary company will be able to withstand the challenges presented by Covid-19 and be financially sustainable in the short to medium term.
## **Structure, governance, and management**
The Friars, Aylesford is constituted as a company limited by guarantee governed by its own Memorandum and Articles of Association. The members are the individual friars of the British Province of the Carmelite Order, who meet in Annual General Meetings to elect the Trustees, to review the financial statements for the previous year and to discuss any other relevant business.
The Trustees are appointed to oversee the strategic governance of The Friars and its subsidiary. They set the strategy, agree an annual budget and monitor performance. In particular, the Trustees make all decisions where the reputation and ethos may be impacted.
During 2021, the Trustees met five times, with an Annual General Meeting on 12 July 2021.
There are two specialist sub-groups which meet regularly providing advice and recommendations to the board.
- The Finance Group Acting Chair: Father Kevin Alban (deceased) & Fr Brendan Grady
- The Estates Group Chair: Jonathan Louth
The Trustees are supported by advisors: Jan Wilkinson (Finance), Jonathan Louth (Estates and Development) and Simon Howell (Legal and Development) who regularly attend board or sub-group meetings as applicable.
New Trustees are briefed on the role of a Trustee and provided with relevant literature plus copies of the Memorandum and Articles of Association. Trustee indemnity insurance premiums are paid for by the charitable company to provide protection for the Trustees in the execution of their duties. In December 2017, we undertook a review of our current practices compared to the Charity Commission’s Code of Governance and were pleased that there were few areas that were identified as needing minor improvement.
The Friars, Aylesford
**26**
## **Trustees’ report** Year ended 31 December 2021
## **Structure, governance, and management** (continued)
The Trustees delegate the day-to-day operations of the charity to the Management Team also known as the Trading Operations Management Team (TOMT). The TOMT comprises the Operations & Business Development Manager OBDM and four other members with clear lines of responsibility for specific departments of the organisation. The Trustees have worked with the TOMT to develop the longer-term strategic plans for the charity. Responsibility for the implementation of the plans is delegated to the TOMT through agreed one-year business plans also known as Operational Plans.
The TOMT has clear terms of reference, regularly reviewed by the Trustees, and its prime and collective responsibility is to self-manage the trading operations of The Friars, Aylesford and to achieve a balanced budget, in line with the budget presented to and agreed by the Trustees in December of the prior year.
Within the TOMT, certain managers are expected to occasionally attend Trustee meetings, reporting from and representing the TOMT. These managers can also refer urgent matters that are outside the remit of the TOMT to Trustees.
TOMT members at the start of 2021 were: Pearl Nyafli – The Operations & Business Development Manager (Lead); Ros Duddell – Gift Shop Manager; Steve Hayden – Estates Manager and Clare Abbotson – Prior’s and Trustees’ Secretary. The Hospitality Manager and Catering Manager positions were not filled until September 2021.
In 2021, we continued to benefit from the Government’s Coronavirus Jobs Retention Scheme and also from the Local Restrictions Grant from the local authority Tonbridge and Malling Council.
Key management remuneration is first informed by current local market rates for similar roles, and by maintaining appropriate differentials for job responsibilities within the organisation. A proposal is considered by the Finance Group and a recommendation made to the Trustees. The Trustees authorise all key management salaries.
## _**Statement of Trustees’ responsibilities**_
The Trustees (who are also directors of The Friars, Aylesford for the purposes of company law) are responsible for preparing the Trustees’ report and 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 Charity and the Group and of the income and expenditure, of the group 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 Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable to the United Kingdom and Republic of Ireland (FRS 102);
- make judgements and estimates that are reasonable and prudent;
The Friars, Aylesford
**27**
TStees, report Year ended 31 December 2021
Structure. govemance. and management {continuedl
Statement ol Trustees. respoftsiTbilitses (confinued)
state whether applicable Uniled Kingdom Attounling Standards have been followed,
subject lo any material departures disclosed and explained in the financial slatemenls.,
and
prepare the financial stslemenls on the going conceffl basis unless il is inappropriate lo
presume that the Chartty and the Group will conb.nue in operation.
Approved by the Trustees on:
I f/b? li
èLZ
•L44
The Friars, Aylesford
28
**Independent auditor’s report** 31 December 2021
## **Independent auditor’s report to the members of The Friars, Aylesford**
## **Opinion**
We have audited the financial statements of The Friars, Aylesford (the ‘charitable parent company’) and of The Friars, Aylesford and its subsidiary Aylesford Priory Limited (the ‘group’) for the year ended 31 December 2021 which the comprise the group statement of financial activities, the group and charitable parent company balance sheets, the consolidated statement of cash flows, the principal accounting policies and the notes to the financial statements. 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’s and of the charitable parent company’s affairs as at 31 December 2021 and of the group’s income and expenditure 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.
## **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 group 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 charitable parent company’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.
The Friars, Aylesford
**29**
## **Independent auditor’s report** 31 December 2021
## **Other information**
The trustees are responsible for the other information. The other information comprises the information included in the Annual Report and Consolidated Financial Statements, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
## **Opinions on other matters prescribed by the Companies Act 2006**
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the trustees’ report, which is also the directors’ report for the purposes of company law, for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the trustees’ report, which is also the directors’ report for the purposes of company law has been prepared in accordance with applicable legal requirements.
## **Matters on which we are required to report by exception**
In the light of the knowledge and understanding of the group and the charitable parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees’ report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept by the charitable parent company, or returns adequate for our audit have not been received from branches not visited by us; or
- the charitable parent company financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of trustees’ remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit; or
- the trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies’ exemptions in preparing the trustees’ report and from the requirement to prepare a strategic report.
The Friars, Aylesford
**30**
**Independent auditor’s report** 31 December 2021
## **Responsibilities of trustees**
As explained more fully in the trustees’ responsibilities statement, the trustees (who are also the directors of the charitable company for the purposes 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’s and the charitable parent company’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 parent company or to cease operations, or have no realistic alternative but to do so.
## **Auditor’s responsibilities for the audit of the financial statements**
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
- the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
- we identified the laws and regulations applicable to the group through discussions with management, and from our commercial knowledge and experience of the sector;
- we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006 and the Charities Act 2011;
- we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting correspondence; and
- identified laws and regulations were communicated within the audit team and the team remained alert to instances of non-compliance throughout the audit.
The Friars, Aylesford
**31**
## **Independent auditor’s report** 31 December 2021
## **Auditor’s responsibilities for the audit of the financial statements** (continued)
We assessed the susceptibility of the group’s accounts to material misstatement, including obtaining an understanding of how fraud might occur, by:
- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.
To address the risk of fraud through management bias and override of controls, we:
- performed analytical procedures to identify any unusual or unexpected relationships;
- tested journal entries to identify unusual transactions;
- assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and
- tested authorisation controls on expenditure items, checking that all expenditure was approved in line with the charitable parent company’s procedures and the group’s procedures.
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the trustees and other management and the inspection of regulatory and legal correspondence, if any.
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at 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 charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.
Amanda Francis (Senior Statutory Auditor) For and on behalf of Buzzacott LLP, Statutory Auditor 130 Wood Street London EC2V 6DL
22 August 2022
The Friars, Aylesford
**32**
## **Consolidated statement of financial activities** Year to 31 December 2021
|Notes|**Unrestricted**
**funds**
**£**|**Restricted**
**funds**
**£**|**2021**
**Total**
**funds**
**£**|Unrestricted
funds
£|Restricted
funds
£|2020
Total
funds
£|
|---|---|---|---|---|---|---|
|**Income from:**
Donations, grants and legacies
1
Other trading activities
2
Charitable activities
3
Other sources:
. Coronavirus Job Retention
Scheme
. Coronavirus Business
Support Scheme
**Total income**
**Expenditure on:**
Raising funds
4
Charitable activities
. Upkeep of the shrine at
Aylesford
5
. Support of the Carmelite
Friars of the Aylesford
community
6
**Total expenditure**
**Net income (expenditure)**
**before transfers**
Transfers between funds
14
**Net income (expenditure)**
**and net movement in funds**
7
**Reconciliation of funds:**
**Balances brought forward**
**at 1 January 2021**
**Balances carried forward**
**at 31 December 2021**|**365,678**
**534,161**
**74,389**
**91,978**
**54,398**|**249,099**
**—**
**—**
**—**
**—**|**614,777**
**534,161**
**74,389**
**91,978**
**54,398**|526,104
319,561
43,539
194,172
—|25,979
—
—
—
—|552,083
319,561
43,539
194,172
—|
||**1,120,604**|**249,099**|**1,369,703**|1,083,376|25,979|1,109,355|
||**644,034**
**330,658**
**56,102**|**—**
**10,587**
**—**|**644,034**
**341,245**
**56,102**|741,768
324,529
47,946|460
10,563
—|742,228
335,092
47,946|
||**1,030,794**|**10,587**|**1,041,381**|1,114,243|11,023|1,125,266|
||**89,810**
**304,925**|**238,512**
**(304,925)**|**328,322**
**—**|(30,867)
2,054|14,956
(2,054)|(15,911)
—|
||**394,735**
**402,696**|**(66,413)**
**378,282**|**328,322**
**780,978**|(28,813)
431,509|12,902
365,380|(15,911)
796,889|
||**797,431**|**311,869**|**1,109,300**|402,696|378,282|780,978|
All the group’s activities derived from continuing operations during the above two financial years.
There were no recognised gains and losses other than those set out in the consolidated statement of financial activities above.
The Friars, Aylesford
**33**
Balance sheets 31 December 2021
Group
2021
Charity
2021
2020
2020
Notes
Fixed assets
Tangible assets
Investments
10 654.897
393.213
635.055
364.492
654,897
393,213
635.056
364,493
Current assets
Stock
Debtors
Cash at bank and in hand
24,919
173,85S
366,866
565,640
27,030
153,460
341,247
521,737
1.640
546,031
240,950
788,621
836
451,112
281,107
733,055
12
Creditor5". amounts falling due
wilhin one year
13
1111.2371
{133,9721
{41.8281
176,012)
Net current assèts
4S4.403
387.765
746,793
657,043
Total net assets
1.109,300
780,978 1.381.849 1.021,536
Repr8s&nted by:
Funds and reserves
Reslricled funds
Unrestricted funds
General fvnds
. Tangible fixed assets fund
Non-charitable trading funds
Totsl ftjnds
14 311.869
378.282
311.869
378,282
434.924
278.761
635,055
364.493
{272,548I 1240,5581
1.109.300
780,978 1.381,849 1,021,536
434,925
635.055
278,761
364,493
Approved by the trustees of The Friars. Aylesford. Company Registfation Number 03487590
{England and Wales) and signed on their behalf by..
Brendan Grady
Trustee
Approved by the truslees on..
The Friats, Aylesford
34
## **Consolidated statement of cash flows** Year to 31 December 2021
|**A**|Notes|**2021**
**£**|
|---|---|---|
||**Cash flows from operating activities**
. Net cash provided by operating activities
A
**Cash flows from investing activities**
. Purchase of tangible fixed assets
**Change in cash and cash equivalents in the**
**year**
**Cash and cash equivalents at 1 January 2021**
B
**Cash and cash equivalents at 31 December 2021**
B|**316,866**
**(291,247)**|
|||**25,619**
**341,247**|
|||
**366,866**|
|**B**
**C**||||**2021**
**£**||2020
£
(15,911)
49,393
12,730
(20,765)
7,833
33,280
2020
£
341,247|
|---|---|---|---|---|---|---|
||Net movement in funds (as per the statement of financial
activities)
Depreciation charge
Decrease in stocks
Increase in debtors
(Decrease) increase in creditors
**Net cashprovided by operating activities**|||**328,322**
**47,135**
**2,111**
**(20,395)**
**(40,307)**|||
|||||**316,866**|||
||**Analysis of cash and cash equivalents**|||**2021**
**£**|||
||**Total cash and cash equivalents:**
Cash at bank and in hand|||**366,866**|||
||**Analysis of changes in net debt**|2020
£|
||||
|||||||**2021**
**£**|
||Cash at bank and in hand|341,247||
25,619||
**366,866**|
The Friars, Aylesford
**35**
**Principal accounting policies** 31 December 2021
The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are laid out below:
## **Basis of accounting**
These accounts have been prepared for the year to 31 December 2021 with comparative information provided in respect to the year to 31 December 2020.
The financial statements have been prepared under the historical cost convention with items initially recognised at cost or transaction value unless otherwise stated in the relevant accounting policy notes.
The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (Charities SORP FRS 102) issued on 16 July 2014, the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
The charity constitutes a public benefit entity as defined by FRS 102.
The accounts are presented in sterling and rounded to the nearest pound.
## **Basis of consolidation**
The consolidated statement of financial activities and group balance sheet consolidate each reporting line of the financial statements of The Friars, Aylesford and its subsidiary company, Aylesford Priory Limited, made up at the balance sheet date.
## **Critical accounting estimates and areas of judgement**
The preparation of the financial statements in compliance with the Charities SORP FRS 102 requires the use of certain critical accounting estimates. It requires also that trustees and management exercise judgement in applying the group’s and charity’s accounting policies.
In preparing these financial statements, the trustees have made significant estimates and judgements in the following areas:
- Estimating the expected useful economic life of tangible fixed assets for the purpose of calculating an annual depreciation charge;
- Estimating any provision for slow moving and/or obsolete stock;
- Estimating any provision for bad or doubtful debts;
- Assessing the probability of the receipt of legacy income of which the charity and group had been notified;
- Estimating and recognising accrued expenditure;
- Determining the basis for allocating shared overhead costs between the charity and its subsidiary company; and
The Friars, Aylesford
**36**
**Principal accounting policies** 31 December 2021
## **Critical accounting estimates and areas of judgement** (continued)
- Estimating future income and expenditure flows for the purpose of assessing going concern (see below).
## **Going concern**
The trustees have assessed whether the use of the going concern assumption is appropriate in preparing these accounts. The trustees have made the assessment in respect to a period of at least one year from the date of approval of these accounts.
Having reviewed the financial position and future plans for the charity, the Trustees have identified no material uncertainties related to events or conditions that cast significant doubt on the charity’s ability to continue its activities for the foreseeable future.
The long-term economic outlook is uncertain and with the onset of the war in Ukraine and the surge in Coronavirus variants, the team here at The Friars have put a few measures in place to ensure financial stability. This includes finding smarter ways of working, embarking on various cost saving initiatives and regular cashflow forecasting. We will continue to closely monitor the impact of any government decision making and the impact on the economy from any crisis, and we will actively respond to any rapid changes.
Therefore, the financial statements have been prepared on a going concern basis given the undertaking of the Carmelite Charitable Trust (note 16) to support the group and charity financially whilst they continue with the work to restore the activities at Aylesford to a sustainable basis.
## **Income**
Income is recognised in the period in which the group is entitled to the income, the amount can be measured with reasonable certainty and it is probable that the funds will be received.
Income is deferred only when the charity has to fulfil conditions before becoming entitled to it or where the donor or funder has specified that the income is to be expended in a future accounting period.
Donations are recognised when receivable and the amount can be measured reliably by the charity.
Donations and grants are recognised when the charitable parent company and/or group has confirmation of both the amount and settlement date. In the event of donations or grants pledged but not received, the amount is accrued for where the receipt is considered probable. In the event that a donation or grant is subject to conditions that require a level of performance before the charitable parent company and/or group is entitled to the funds, the income is deferred and not recognised until either those conditions are fully met, or the fulfilment of those conditions is wholly within the control of the charitable parent company and/or group and it is probable that those conditions will be fulfilled in the reporting period.
Legacies are included in the statement of financial activities when the charity is entitled to the legacy, the executors have established that there are sufficient surplus assets in the estate to pay the legacy, and any conditions attached to the legacy are within the control of the charity.
The Friars, Aylesford **37**
## **Principal accounting policies** 31 December 2021
## **Income** (continued)
Entitlement is taken as the earlier of the date on which either: the charity is aware that probate has been granted, the estate has been finalised and notification has been made by the executor to the charity that a distribution will be made, or when a distribution is received from the estate. Receipt of a legacy, in whole or in part, is only considered probable when the amount can be measured reliably and the charity has been notified of the executor’s intention to make a distribution. Where legacies have been notified to the charity, or the charity is aware of the granting of probate, but the criteria for income recognition have not been met, then the legacy is treated as a contingent asset and disclosed if material. In the event that the gift is in the form of an asset other than cash or a financial asset traded on a recognised stock exchange, recognition is subject to the value of the gift being reliably measurable with a degree of reasonable accuracy and the title of the asset having being transferred to the charity.
In accordance with the 2015 SORP, volunteer hours are not recognised.
Income from trading activities is recognised to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured. It is measured at fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.
Income from charitable activities, comprising income in connection with the shrine and retreats, is recognised to the extent that it is probable that the economic benefits will flow to the charity and the revenue can be reliably measured.
Income from other sources comprises funding in connection with the Coronavirus Job Retention Scheme and Coronavirus Business Support Scheme and is recognised as unrestricted income in the period in which the charity is entitled to the income, the amount of income can be measured reliably and it is probable that the income will be received.
No separate statement of financial activities has been presented for the charity alone, as permitted by s408 of the Companies Act 2006 and the Charities SORP FRS 102. The charity had total income in the year of £801,198 (2020 - £669,641), total expenditure of £440,885 (2020 - £414,624), resulting in net income of £360,313 (2020 – net income of £255,017).
## **Expenditure**
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the group or charity to make a payment to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably.
All expenditure is accounted for on an accrual basis. Expenditure is comprised of direct costs and support costs. Direct costs are allocated to a specific activity. The classification between activities is as follows:
- a) Expenditure on raising funds includes all expenditure associated with raising funds for the charity and the operating costs of Aylesford Priory Limited.
The Friars, Aylesford **38**
## **Principal accounting policies** 31 December 2021
## **Expenditure** (continued)
- b) Expenditure on charitable activities includes all costs associated with furthering the charitable purposes of the charity through the provision of its charitable activities i.e. the upkeep of the shrine at Aylesford and supporting the Carmelite Friars of the Aylesford community. Expenditure on charitable activities includes both direct costs and indirect support costs.
All expenditure is inclusive of irrecoverable VAT.
## **Allocation of support and governance costs**
Support costs represent indirect charitable expenditure. In order to carry out the primary purposes of the charity it is necessary to provide support in the form of personnel development, financial procedures, provision of office services and equipment and a suitable working environment.
Governance costs comprise the costs involving the public accountability of the charity (including audit costs) and costs in respect to its compliance with regulation and good practice.
Support costs and governance costs are apportioned based on area occupied, level of activity and staff time as appropriate.
Certain support costs incurred are shared between the charity and its subsidiary company, Aylesford Priory Limited. This allocation is based on area occupied, level of activity and staff time. Those costs which would be incurred whether or not Aylesford Priory Limited existed are allocated 100% to the charity.
## **Tangible fixed assets**
All assets costing more than £1,000 with an expected useful life exceeding one year are capitalised.
Depreciation is provided at the following annual rates on a straight line basis in order to write off the cost of each asset, less its estimated residual value, over its estimated useful economic life. The annual rates used for this purpose are:
||Leasehold improvements|- 4 to 10% per annum on cost|
|---|---|---|
||Plant and machinery|- 10 to 20% per annum on cost|
||Furniture and equipment|- 20% per annum on cost|
||Motor vehicles|- 20% per annum on cost|
Depreciation is applied in all cases commencing from the start of the month following that in which the asset was purchased.
No value is attached in these financial statements to the leasehold land occupied by the group and charity. As explained in note 10, the site is of historic importance generally and specifically to the Roman Catholic Church and the principal objective of the charity is to preserve the site for the enjoyment of future generations. As such, the asset meets the definition of heritage assets in the Charities SORP FRS 102 and is not valued for the purposes of these financial statements.
The Friars, Aylesford
**39**
**Principal accounting policies** 31 December 2021
## **Stock**
Stocks of books, souvenir items and food stuff for resale are valued at the lower of cost and net realisable value. Cost is calculated by assuming stock movements are on a first in, first out basis.
## **Debtors**
Debtors are recognised at the settlement amount, less any provision for non-recoverability. Prepayments are valued at the amount prepaid.
## **Cash at bank and in hand**
Cash at bank and in hand represents such accounts and instruments that are available on demand or have a maturity of less than three months from the date of acquisition.
## **Creditors and provisions**
Creditors and provisions are recognised when there is an obligation at the balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Creditors and provisions are recognised at the amount the charity anticipates it will pay to settle the debt.
## **Fund structure**
Restricted funds comprise monies raised for, or their use restricted to, a specific purpose, or contributions subject to donor imposed conditions.
General funds represent those monies which are freely available for application towards achieving any charitable purpose that falls within the charity’s charitable objects.
The tangible fixed assets fund represents the net book value of the land and buildings occupied by the charity and other tangible fixed assets held by the charity. Such assets are vital to the charity being able to carry out its charitable work and the value invested in the assets cannot, therefore, be realised in order to meet future expenditure or contingencies. To emphasise this point the net book value of the assets is represented by a specific tangible fixed assets fund on the balance sheet.
Non charitable trading funds comprise the retained surplus or accumulated deficit on the activities of Aylesford Priory Limited.
## **Pension contributions**
Contributions in respect of the charity’s defined contribution pension scheme are charged to the statement of financial activities when they are payable to the scheme. The charity’s contributions are restricted to the contributions disclosed in note 8. There were no outstanding contributions at the year end. The charity has no liability beyond making its contributions and paying across the deductions for the employees’ contributions.
The Friars, Aylesford
**40**
**Notes to the financial statements** 31 December 2021
## **1. Income from: Donations, grants and legacies**
|**Group**|**Unrestricted**
**funds**
**£**|
**Restricted**
**funds**
**£**|**2021**
**Total**
**funds**
**£**|Unrestricted
funds
£|Restricted
funds
£|2020
Total
funds
£|
|---|---|---|---|---|---|---|
|Legacies
Donations
Grants for roof
repairs (see below)
Grant from Carmelite
Charitable Trust|**77,189 **
**168,489 **
**—**
**120,000**|
**—**
**5,563**
**243,536**
**—**|**77,189 **
**174,052 **
**243,536 **
**120,000**|
331,976
74,128
—
120,000|21,167
4,812
—
—|353,143
78,940
—
120,000|
||**365,678 **|
**249,099**|**614,777 **|
526,104|25,979|552,083|
During the year, the charitable parent company and group received grants from the Programme of Major Works Scheme which is part of the Cultural Recovery Funds towards repairs to the roof of the church situated on the site of The Friars, Aylesford. The grants were administered through the Catholic Trust for England and Wales (CaTEW).
## **2. Income from: Other trading activities**
|**Income from: Other trading activities**|||
|---|---|---|
|**Group**|Unrestricted funds||
||**2021**
**£**|2020
£|
|Provision of conference facilities, guest accommodation, events, and
sale of books, gifts and refreshments
Rental income
Other|**456,871**
**38,144**
**39,146**|270,979
38,411
10,171|
||**534,161**|319,561|
## **3. Income from: Charitable activities**
|**Income from: Charitable activities**|||
|---|---|---|
|**Group**|Unrestricted funds||
||**2021**
**£**|2020
£|
|Shrine income
Retreat centre
Car park contributions|**71,172**
**—**
**3,217**|37,428
236
5,875|
||**74,389**|43,539|
## **4. Expenditure on: Raising funds**
|**Group**|**Unrestricted**
**funds**
**£**|**Restricted**
**funds**
**£**|**2021**
**Total**
**funds**
**£**|Unrestricted
funds
£|Restricted
funds
£|2020
Total
funds
£|
|---|---|---|---|---|---|---|
|Provision of conference
facilities,
accommodation, events,
and sale of books, gifts
and refreshments
Other|
**600,496 **
**43,538 **|
**—**
**—**|**600,496**
**43,538**|710,643
31,125|—
460|710,643
31,585|
||**644,034 **|
**—**|**644,034**|741,768|460|742,228|
The Friars, Aylesford
**41**
## **Notes to the financial statements** 31 December 2021
## **5. Expenditure on: Upkeep of the shrine at Aylesford**
|**Group**|**Unrestricted**
**funds**
**£**|**Restricted**
**funds**
**£**|**2021**
**Total**
**funds**
**£**|Unrestricted
funds
£|Restricted
funds
£|
2020
Total
funds
£|
|---|---|---|---|---|---|---|
|Direct costs
Other indirect staff costs
Premises and facilities
Office costs
Governance costs|**60,859**
**35,715**
**212,718**
**12,345**
**9,021**|**—**
**—**
**10,587**
**—**
**—**|
**60,859**
**35,715**
**223,305**
**12,345**
**9,021**|49,994
29,606
224,396
9,645
10,888|
—
—
10,563
—
—|
49,994
29,606
234,959
9,645
10,888|
||**330,658**|**10,587**|
**341,245**|324,529|
10,563|
335,092|
Governance costs included above comprise auditor’s remuneration only.
## **6. Expenditure on: Support of the Carmelite Friars of the Aylesford Community**
|**Group**
Livingandpersonal expenses|Unrestricted funds|Unrestricted funds|
|---|---|---|
||**2021**
**£**
**56,102**|2020
£|
|||47,946|
## **7. Net income (expenditure) and net movement in funds**
This is stated after charging:
|**Group**|**2021**
**£**
**522,837**
**10,426**
**2,240**
**47,135**|2020
£|
|---|---|---|
|Staff costs (note 8)
Auditor’s remuneration
. Statutory audit services
. Other services: tax compliance
Depreciation||663,551
10,631
2,570
49,393|
## **8. Staff costs and trustees’ remuneration**
|**Staff costs and trustees’ remuneration**|||
|---|---|---|
|**Group**|**2021**
**£**
**483,756**
**23,770**
**11,577**
**519,103**
**—**
**3,734**
**522,837**
**119,625**
**312,080**
**91,132**
**522,837**|2020
£|
|Staff costs during the year were as follows:
Wages and salaries
Social security costs
Other pension costs
Redundancy payments
Other staff related costs
Staff costs per function were as follows:
Upkeep of the shrine
Provision of conference facilities, related accommodation, events and
sale of books, gifts and refreshments
Support functions||573,970
30,617
13,650|
|||618,237
41,906
3,408|
|||663,551|
|||120,543
429,284
113,724|
|||663,551|
The Friars, Aylesford
**42**
## **Notes to the financial statements** 31 December 2021
## **8. Staff costs and trustees’ remuneration** (continued)
No employee earned £60,000 per annum or more (including taxable benefits but excluding pension contributions) during the year (2020 – none).
The average number of employees, based on full time equivalents and analysed by function, was as follows:
|was as follows:|||
|---|---|---|
|**Group**|**2021**|2020|
|Shrine maintenance
Commercial trading operations
Support costs|**4**
**16**
**3**|5
19
3|
||**23**|27|
The average number of employees, based on headcount, was 45 in 2021 (2020: 56).
A number of the trustees are members of the Carmelite Order and, as such, certain of their personal living expenses are borne by the charity, but they received no remuneration in connection with their duties as trustees during the year (2020 – none). Incidental expenses of £87 (2020 - £108) were reimbursed to one trustee (2020 – one).
The charity has purchased trustees and individual insurance to indemnify the trustees or other officers against the consequences of any claim for a wrongful act. The insurance premium paid by the charity during the year totalled £839 (2020 - £621) and provides cover up to a maximum of £1 million (2020 - £1 million).
In addition to the trustees, the key management personnel of the charity in charge of directing and controlling, running, and operating the charity on a day-to-day basis during 2021 comprised the Operations and Business Development Manager, the Estates Manager, the Catering Manager, the Hospitality Manager and the Prior’s Secretary. The total remuneration (including taxable benefits, employer’s pension contributions and employers national insurance contributions) of these employees was £136,972 (2020 - £170,477).
## **9. Taxation**
The Friars, Aylesford is a registered charity and, therefore, is not liable to corporation tax or income tax on income or gains derived from its charitable activities, as they fall within the various exemptions available to registered charities.
Profits of Aylesford Priory Limited, if any, are subject to corporation tax calculated on the basis of tax rates and laws that have been enacted or substantially enacted by the balance sheet date.
The Friars, Aylesford **43**
**Notes to the financial statements** 31 December 2021
## **10. Tangible fixed assets**
|**Group**|Leasehold
improvements
£|Plant and
machinery
£|Furniture
and
equipment
£|Motor
vehicles
£|Office
equipment
£|**Total**
**£**|
|---|---|---|---|---|---|---|
|**Cost or valuation**
At 1 January 2021
Additions
Disposals
At 31 December 2021
**Depreciation**
At 1 January 2021
Charge for year
Disposals
At 31 December 2021
**Net book values**
At 31 December 2021
At 31 December 2020|410,261
304,925
—|193,434
3,894
(91,393)|151,309
—
(80,281)|12,652
—
(4,157)|7,779
—
—|**775,435**
**308,819**
**(175,831)**|
||715,186|105,935|71,028|8,495|7,779|**908,423**|
||69,418
24,964
—|163,691
12,923
(91,393)|134,187
5,993
(80,281)|10,953
1,699
(4,157)|3,973
1,556
—|**382,222**
**47,135**
**(175,831)**|
||94,382|85,221|59,899|8,495|5,529|**253,526**|
||**620,804**|**20,714**|**11,129**|—|**2,250**|**654,897**|
||340,843|29,743|17,122|1,699|3,806|**393,213**|
|**Charity **|Leasehold
improvements
£|Plant and
machinery
£|Furniture
and
equipment
£|Motor
vehicles
£|**Total**
**£**|
|---|---|---|---|---|---|
|**Cost or valuation**
At 1 January 2021
Additions
Disposals
At 31 December 2021
**Depreciation**
At 1 January 2021
Charge for year
Disposals
At 31 December 2021
**Net book values**
At 31 December 2021
At 31 December 2020|410,261
304,925
—|88,488
—
(24,819)|51,092
—
(27,780)|8,495
—
—|**558,336**
**304,925**
**(52,599)**|
||715,186|63,669|23,312|8,495|**810,662**|
||69,418
24,964
—|75,402
5,483
(24,819)|42,228
2,216
(27,780)|6,796
1,699
—|**193,844**
**34,362**
**(52,599)**|
||94,382|56,066|16,664|8,495|**175,607**|
||**620,804**|**7,603**|**6,648**|—|**635,055**|
||340,843|13,086|8,864|1,699|364,492|
The charity’s objective is to promote for the benefit of the public the restoration, presentation and maintenance of the historic buildings, amenities and grounds of The Friars, Aylesford. The freehold title to The Friars, Aylesford is held by The Carmelite Charitable Trust, a registered charity and a connected entity to the charity (see note 16). In 2002 the charity was granted a 99 year lease over the site and pays an annual rent of £200 to the Carmelite Charitable Trust. No value has been assigned to this lease in these financial statements. The site is of historic importance generally and specifically to the Roman Catholic Church and, as noted above, the principal objective of the charity is to preserve the site for the enjoyment of future generations. As such, the asset meets the definition of heritage assets in the Charities SORP FRS 102 and is not valued for the purposes of these financial statements.
The Friars, Aylesford
**44**
## **Notes to the financial statements** 31 December 2021
## **11. Investments**
|**Investments**|||||
|---|---|---|---|---|
||**Group**
**2021**
**£**|Group
2020
£|**Charity**
**2021**
**£**|Charity
2020
£|
|Investment in subsidiarycompany|**—**|—|**1**|1|
## _**Investment in subsidiary company**_
The charity holds 100% of the issued share capital of Aylesford Priory Limited. This holding was acquired on incorporation of the company on 10 November 2008.
The following is a summary of the financial statements of Aylesford Priory Limited for the year ended 31 December 2021, which have been included in the consolidated financial statements.
||**2021**
**£**|2020
£|
|---|---|---|
|**Turnover**
Cost of sales
**Gross loss**
Administrative expenditure
Other income: Coronavirus Job Retention Scheme and Coronavirus
Business Support Scheme
**Operating loss**
(Accumulated losses) retained profits at 1 January 2021
**Accumulated losses at 31 December 2021**|**456,871**
**(523,154)**|270,979
(612,794)|
||**(66,283)**
**(77,342)**
**111,635**|(341,815)
(97,848)
168,735|
||**(31,990)**
**(240,558)**|(270,928)
30,369|
||**(272,548)**|(240,559)|
At 31 December 2021 the company had total net liabilities of £272,548 (2020 – total net liabilities of £240,558) represented by called up share capital of £1 (2020 - £1) and negative reserves of £272,549 (2020 – £240,559).
## **12. Debtors**
|**Debtors**|||||
|---|---|---|---|---|
||**Group**||**Charity**||
||**2021**
**£**|2020
£|**2021**
**£**|2020
£|
|Trade debtors
Amounts due from the Carmelite
Charitable Trust (note 16)
Other debtors
Legacies receivable
Prepayments
Amounts due from Aylesford Priory Limited|**18,180**
**10,929**
**8,408**
**45,153**
**91,185**
**—**|11,449
4,402
15,322
43,363
78,924
—|**4,505**
**10,102**
**5,729**
**45,153**
**83,271**
**397,271**|2,804
3,529
14,412
43,363
74,150
312,854|
||**173,855**|153,460|**546,031**|451,112|
The Friars, Aylesford **45**
**Notes to the financial statements** 31 December 2021
## **13. Creditors: amounts falling due within one year**
||**Group**|**Group**|**Charity**|**Charity**|
|---|---|---|---|---|
||**2021**
**£**|2020
£|**2021**
**£**|2020
£|
|Expense creditors
Additions to tangible fixed assets
Social security and other taxes
Other creditors
Accruals and deferred income|**30,355**
**12,256**
**156**
**8,379**
**60,091**|67,323
—
(80)
12,587
54,142|**15,043**
**12,256**
**—**
**1,361**
**13,168**|58,629
—
—
5,762
11,621|
||**111,237**|133,972|**41,828**|76,012|
Income has been deferred where it relates clearly to future periods and/or where the charity has not yet met the conditions for recognising the income. The movements in deferred income are analysed below:
||**2021**
**£**|2020
£|
|---|---|---|
|Brought forward
Released in the year
Deferred in the year
**Carried forward**|**22,095**
**(25,720)**
**22,095**|25,720
(25,720)
22,095|
||**18,470**|22,095|
## **14. Restricted funds**
The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trusts to be applied for specific purposes:
|**Group and charity**|**At**
**1 January**
**2021**
**£**|**Income**
**£**|**Expenditure**
**£**|**Transfers**
**£**|**At 31**
**December**
**2021**
**£**|
|---|---|---|---|---|---|
|Restoration fund
Peace garden fund|**360,791**
**17,491**|**249,089**
**10**|**(10,563)**
**(24)**|**(304,925)**
**—**|**294,392**
**17,477**|
||**378,282**|**249,099**|
**(10,587)**|**(304,925) **|**311,869**|
|Groupand charity|At
1 January
2020
£|Income
£|Expenditure
£|Transfers
£|At 31
December
2020
£|
|Restoration fund
Peace garden fund|347,449
17,931|25,959
20|(10,563)
(460)|(2,054)
—|360,791
17,491|
||365,380|25,979|(11,023)|(2,054)|378,282|
## _**Restoration fund**_
This fund represents donations received from the Carmelite Charitable Trust for maintenance projects which are only to be carried out after approval by the Trustees of the Carmelite Charitable Trust together with grants from the Programme of Major Works Scheme which is part of the Cultural Recovery Funds towards repairs to the roof of the church situated on the site of The Friars, Aylesford. The transfer from the restoration fund to unrestricted funds represents eligible expenditure incurred and capitalised during the year.
The Friars, Aylesford
**46**
## **Notes to the financial statements** 31 December 2021
## **14. Restricted funds** (continued)
## _**Peace garden fund**_
This fund represents donations received for the creation of a peace garden at the entrance to the Friars.
## **15. Analysis of net assets between funds**
|**Group**|**Unrestricted funds**|**Unrestricted funds**|**Unrestricted funds**|**Restricted**
**funds**
**£**|**Total**
**2021**
**£**|
|---|---|---|---|---|---|
||**General**
**funds**
**£**|**Tangible**
**fixed assets**
**fund**
**£**|**Non-**
**charitable**
**trading**
**funds**
**£**|||
|**Fund balances at**
**31 December 2021 are**
**represented by:**
Tangible fixed assets
Net current assets (liabilities)
**Total net assets**|**—**
**434,924**|**635,055**
**—**|**19,842**
**(292,390)**|**—**
**311,869**|**654,897**
**454,403**|
||**434,924**|**635,055**|**(272,548)**|**311,869**|**1,109,300**|
|Group|Unrestricted funds|Unrestricted funds|Unrestricted funds|Unrestricted funds|Unrestricted funds||Restricted
funds
£||Total
2020
£|
|---|---|---|---|---|---|---|---|---|---|
||General
funds
£||Tangible
fixed assets
fund
£||Non-
charitable
trading
funds
£|||||
|Fund balances at
31 December 2020 are
represented by:
Tangible fixed assets
Net current assets (liabilities)
Total net assets|—
278,761||364,493
—||28,720
(269,278)||—
378,282||393,213
387,765|
||278,761||364,493||(240,558)||378,282||780,978|
|**Charity**|||**Unrestricted funds**||||**Restricted**
**funds**
**£**||**Total**
**2021**
**£**
**635,055**
**1**
**746,793**
**1,381,849**|
||||**General**
**funds**
**£**|**Tangible**
**fixed**
**assets**
**fund**
**£**||||||
|**Fund balances at 31 December 2021**
**are represented by:**
Tangible fixed assets
Investments
Net current assets
**Total net assets**|||**—**
**1**
**434,924**|**635,055**
**—**
**—**|||**—**
**—**
**311,869**|||
||||**434,925**|**635,055**|||**311,869**|||
The Friars, Aylesford
**47**
**Notes to the financial statements** 31 December 2021
## **15. Analysis of net assets between funds** (continued)
|Charity|Unrestricted funds|Unrestricted funds|Restricted
funds
£|Total
2020
£|
|---|---|---|---|---|
||General
funds
£|Tangible
fixed
assets
fund
£|||
|Fund balances at 31 December 2020
are represented by:
Tangible fixed assets
Investments
Net current assets
Total net assets|—
1
278,760|364,493
—
—|—
—
378,282|364,493
1
657,042|
||278,762|364,493|378,282|1,021,536|
## **16. Connected charities**
The Friars, Aylesford is connected to the Carmelite Charitable Trust by virtue of the fact that several of the trustees of the charitable company are also trustees of the Carmelite Charitable Trust (Charity Registration No. 1061342).
The transactions with the Carmelite Charitable Trust during the year are as follows:
- The Friars, Aylesford received an unrestricted grant of £120,000 (2020 - £120,000) and rent of £ 4,200 (2020 - £4,200) from the Carmelite Charitable Trust.
- At 31 December 2021 The Carmelite Charitable Trust owed £10,929 to The Friars, Aylesford (2020 – £4,402 owed by The Carmelite Charitable Trust to The Friars, Aylesford).
The Carmelite Charitable Trust holds the freehold of Aylesford Priory. No rent was paid by the charity in the period, but the charity and its subsidiary absorbed all the running costs of the Priory, including all repair and maintenance costs.
The Carmelite Charitable Trust has confirmed that it will continue to provide financial support to the group as and when required to enable it to meet its liabilities as they fall due over the short to medium term.
The charity has taken advantage of the exemption provided by FRS 102 for the requirement to disclose transactions with its subsidiary undertaking.
## _**Banking arrangements**_
The charity’s bank accounts form part of a centralised banking system operated with the Carmelite Charitable Trust. Cash and cash equivalents for the group were £366,866 as at 31 December 2021 (£341,247 as at 31 December 2020).
The Friars, Aylesford **48**
## **Notes to the financial statements** 31 December 2021
## **17. Lease commitments**
As at 31 December 2021 the Friars, Aylesford had total future commitments under noncancellable operating leases due as follows:
|**Office equipment**|**2021**
**£**|2020
£|
|---|---|---|
|Within one year
Within one to two years|**1,379**
**345**|1,379
1,724|
||**1,724**|3,103|
## **18. Capital commitments**
At 31 December 2021, the charity had capital commitments in respect to work on the repair to the roof of the church situated on the site of The Friars, Aylesford. At 31 December 2021, a total of £305,000 (2020 - £nil) had been incurred leaving a capital commitment of circa £20,000 being amounts contracted for but not provided for in these financial statements (2020 - £325,000 authorised but not contracted for).
**Scaffold and roof stripping to choir chapel**
The Friars, Aylesford
**49**