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2021-12-31-accounts

St Cecilia's Abbey Annual Report Year Ended 31 December 2021

Annual Report

Year Ended 31 December 2021

Contents Contents Page
1-8
the Trustees 9-11
Statement of Financial Activities 12
Balance Sheet 13
Statement of Cash Flows 14
Notes and Accounting Policies 15

The Trustees present their report along with the financial statements of the Charity for the year ended 31 December 2021.

OBJECTIVES AND ACTIVITIES

The principal object of the Charity is the advancement of the Catholic religion. The principal means of advancing the Catholic religion is prayer, and the value and effects of this prayer can be measured only by God. Nevertheless the Charity undertakes the following activities in support of this aim.

of Benedictine nuns which inhabits it. The chief work of the nuns is the celebration of the Divine Office, which is sung in Latin and in Gregorian Chant. exclusively in its liturgy.

The nuns seek to earn their living by the production and sale of altar breads; they also undertake artistic commissions and sell religious books, recordings of their Gregorian Chant, rosaries and other pious articles, some of which are made by the nuns themselves.

The community share their contemplative life by welcoming visitors to their church and retreatants to the Garth, the Lower Lodge or the Hermitage, and through newsletters and the Internet. No charges are made for thes

When possible the Abbey takes the opportunity to assist other religious communities, either by financial help or by providing hospitality to other contemplative nuns for long or short visits, for studies and training in crafts which can contribute to the development of their own communities, or for a time of rest.

The Charity makes a number of grants, at the discretion of the Abbess, to both institutions and individuals. Further details are contained in note 5.

ACHIEVEMENTS AND PERFORMANCE

The Abbey and the Community

At 31 December 2021 there were 26 solemnly or perpetually professed nuns in the community, two temporarily professed, four novices and two postulants.

A number of young women visited the Abbey during the year to discern their vocation.

Two young women entered the monastery as postulants.

Two postulants who entered in 2020 received the habit and began their novitiate.

A novice made her temporary profession at a Mass in August followed by a festive recreation.

A junior renewed her temporary vows in accordance with the new legislation for contemplative nuns, Cor Orans .

A Sister celebrated her Silver Jubilee of Profession in September, with a special Mass and a festive recreation.

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Maintenance of the Abbey Buildings and Estate

In addition to the major works were undertaken:

Renewal of part of the roof of the Sacred Heart Oratory;

Re-gilding of a number of gold and silver items for use at Mass;

Installation of a radiator in the Altar Bread Bakery;

Repair of lead and a corner slab on the roof of Holy Angels;

Repointing of part of the gable of Holy Angels;

Renewal of the roof of the Conservatory;

Replacement of the door of the outside garage;

Repair of the roof of the Little King corridor;

Replacement of the front doors, cloister doors and the doors of St Scholastica;

Renovation of sash windows in the Oratory, Novitiate and library;

Replacement of the boiler in the back kitchen;

Repairs and improvements to the sound system in the church;

Extension of the kitchen food store with new flooring and redecoration

Transfer of the dairy to another site, with a new sink.

Included in capital expenditure are a replacement robot lawn-mower and iron railings for the extension to the

In addition to the continuing programme of maintenance of the rental and guest properties, the following major works were undertaken:

Replacement of the shower, carpets and vinyl in the Lower Lodge, and redecoration throughout;

Renewal of the Lower Lodge garden;

Replacement storage heater for the Upper Lodge.

Promotion of Gregorian Chant

The nuns continued work on the production of interlinear Latin/English booklets for the Divine Office for the use of visitors and postulants. These works require much time on the part of the nuns and also expenditure on paper and ink to make booklets of durable quality and suitable for their sacred function, but the nuns consider this work an important part of their apostolate.

2

Ministry to Visitors and Retreatants

In spite of the pandemic, the Abbey Church was available all day throughout the year for those who wished to attend the daily Mass and eight services of the Divine Office, or for private prayer.

The Abbey Chronicle, produced twice in the year, was sent to approximately 750 addresses free of charge. The Abbey also maintained a website on the life and work of the community , www.stceciliasabbey.org.uk . The website was completely renewed during the year.

There is always a Sister available to welcome visitors or give counsel to anyone in need. Because of the pandemic, the usual groups of Confirmation candidates and others were unable to visit.

count of the pandemic. In the later part of the year it was open and welcomed 40 persons for retreats. Though most retreatants make donations for their stay, no charge is levied, and this year offerings were not made for sixteen nights. The retreatants were able to participate in the Divine Office and to see the Guest Mistress or other nuns for spiritual counsel if they wished.

The Lower Lodge flat which had become vacant at the end of 2020 was thoroughly renovated at the beginning of 2021 and equipped to serve as additional accommodation for short-term guests or retreatants.

The numbers of secular oblates remained steady at about 40. The oblates received their own letter of news and discussion of monastic spirituality several times in the year. Once household mixing was allowed, a number visited the Abbey to receive spiritual counsel from the Oblate Mistress. A novice-oblate made her together. A group of local oblates meets regularly for fellowship and mutual support.

Assistance to and Collaboration with Other Religious Communities

Barrington Cottage continues to be let to a consecrated hermit at a low rent.

A property on the mainland continues to be let to another religious community at a low rent.

As stated in note 5, the Abbey made a significant donation to another community in the Solesmes Congregation, Quarr Abbey, which was in particular need as a result of the pandemic.

Other Activities of the Community

of churches and the suspension of the Sunday obligation meant that this income was much reduced in 2020. In 2021 there was a gradual increase in demand, but sales remain below what they were in 2019.

The Sisters continued the venture of selling home-made soap, which has proved very popular, especially with the visitors to Quarr Abbey.

There were also modest sales of rosaries, candles, pyrography and knitted items made by the nuns, together with other pious goods and religious books, though these too were less than usual, because of the lockdown in the first part of the year. There was only modest income from the art studio (calligraphy and illumination) but the younger Sisters are being trained in these arts so that there is hope for future development. The candle dep -ends and wax scrapings recycled.

to be valued chiefly for the pollination of the orchard and soft fruit.

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The extensive vegetable garden continued to be maintained by the young nuns. This garden, the orchard (apples, pears, plums, quince, walnuts, hazelnuts, cobnuts) and the soft fruit cages (blackberries, boysenberries, loganberries, raspberries, gooseberries, strawberries) are an important source of food for the nuns.

At the beginning of 2021 Gracewing published by Sr Claire Waddelove. Many readers wrote to express their appreciation and it has received complimentary reviews in The Tablet, Faith Magazine and elsewhere.

One of the Sisters contributed articles to the German publication, Die Tagespost .

The Pandemic

As noted in the accounts for the year ended 31 December 2020, the Coronavirus Pandemic prompted the Sisters to redouble their work of intercession for the world, both informally and by the addition of special prayers at the end of Vespers each day. These prayers continued throughout 2021.

In the national lockdown in the first few months of 2021 churches were permitted to remain open. The nuns accordingly kept their church open for the benefit of anyone who wished to attend services or to spend time in silent prayer. Thanks to the monks of Quarr Abbey, Mass was celebrated every day. The nuns continued to sing the Divine Office.

The restrictions on numbers in parish churches meant that even though Masses were permitted the demand for altar breads was weak. By August 2022 altar bread income for the year was still only 80% of what it had been at the same stage in 2019.

CAPITAL COMMITMENTS

There were no capital commitments at 31 December 2021.

SIGNIFICANT EVENTS AFTER THE YEAR END

On 3 January 2022 Mother Abbess Ninian Eaglesham announced to the community that on account of her failing health she had submitted her resignation to the Abbot President of the Solesmes Congregation and it had been accepted. This news caused profound sorrow to the nuns, who are immensely grateful for Mother -five years as abbess. At the request of the Abbot President she remained in office until the Chapter of the community could elect her successor. On 17 January Mother Eustochium Lee, formerly Prioress, was elected and was confirmed in office by the Abbot President. The Abbatial Blessing was conferred by the Bishop of Portsmouth on 26 April.

PLANS FOR FUTURE PERIODS

Translations of The Joy of God in French and Polish were published in 2022. A German translation is in preparation.

In 2019 the Charity made a commitment to pay for new altar bread machinery for a community of the Solesmes Congregation in the United States, to a total of 206,002 euros. This sum was accounted for in the accounts for that year. The first payment of £36,091 was made in that year. The project was delayed by the pandemic, and the second payment of £105,022 was made only in 2022. The balance should be paid towards the end of 2022 or the beginning of 2023. The Charity had acquired investments in euros as a hedge against exchange movements.

No significant changes in the activities of the Charity are planned. The Charity intends to continue to maintain the Community at St

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FINANCIAL REVIEW AND RESERVE POLICY

During the year, the Abbey received income totalling £801,011 (2020: £695,881). The on-going principal sources of income were £522,426 (2020: £466,949) investment income, £59,703 (2020: £43,703) from the sale of Altar Breads and £106,965 (2020: £101,535) from the pensions and allowances received for the nuns. In addition to this, the Abbey benefitted from legacies of £43,404 (2020: £11,500). Gifts from benefactors were £45,080 (2020: £50,383). Expenditure for the year amounted to £617,974 (2020: £535,653). Of this, £397,710 (2020: £379,008) related to the costs of maintaining the religious community, £87,812 (2020: £60,216) to the grants and donations made, £28,575 (2020: £19,367) to the costs associated with the Altar Bread production and shop sales, £18,463 (2020: £9,070) to church expenses and £4,131 (2020: £3,846) to the costs of running the retreat house. £81,283 (2020: £64,146) was spent on raising funds including investment manager fees and rental property expenses.

After taking into account the net gain on the revaluation of investment assets of £1,630,869 (2020: net loss of £711,147), the charity had net income for the year of £1,813,906 (2020: net expenditure £550,919). The £21,397,633 (2020: £19,337,794).

The Trustees have reviewed the reserves and income of the Charity against its immediate and foreseeable needs and are satisfied that the reserves are not excessive and should be sufficient to meet their needs. some of its surplus income as reserves. These reserves are necessary in order to secure the future ability 21, the total reserves of the charity were £26,023,005. Of this total, £1,606,959 are restricted reserves that are not available for the general purposes of the charity. The Trustees have designated funds totalling £11,865,934 related investments and a number of other reserves, full details of which can be found in note 13. At 31 December 2021 general unrestricted funds stood at £12,550,112.

The Trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern.

Investment performance

The investment policy of the Trustees is to maintain and enhance the real value of their assets over the long term by investment in a portfolio comprising equities, fixed income stocks and cash. The investment policy,

drawn up in consultation with Charles Stanley, aims to ensure a steady stream of dividend income while taking capital gains when an attractive opportunity arises.

The main portfolio is split between a capital account with a balanced objective and an income account with an income objective. The investment managers do not work to a fixed benchmark but use market indices to gauge the performance of the portfolios.

1 was 12% higher than in 2020 but at £522,426 was still significantly less than the pre pandemic level seen in 2019 of £649,407. Nevertheless, the Trustees do not foresee any difficulty in continuing the work of the Charity.

Risk management

The Sisters entrust themselves and their future to Divine Providence. Knowing, however, that part of the proper exercise of this trust is the careful stewardship of the resources which Providence has granted, the trustees have considered the risks faced by the charity.

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The risk which requires most attention from the Trustees is the possibility of the decline of the community of monastic community. As recruitment and retention of new members, under the Holy Spirit, is largely dependent on the fervour and integrity with which the nuns follow their calling, the effective apostolate of the Charity requires paradoxically constant vigilance to safeguard the silence and seclusion of the monastery. The Trustees strive to mitigate the risk of such a decline by managing the assets of the Charity appropriately and providing the resources necessary to support this effort. In particular, a continuous programme of maintenance of the buildings and grounds of the Abbey obviates the risk of major works and all the disruption they would entail. Investment in modern machinery reduces the need for seculars within the enclosure, while provision of the modern means of communication reduces the need for exits by the nuns. While frugality should characterize the life-style of the Sisters, the Trustees ensure that funds are available to maintain the library and pay for outside speakers when appropriate. The sick and elderly of the community are seen as a special treasure, and the trustees watch that sufficient resources are available to ensure their proper care.

charitable giving. The Truste financial risk. To reduce this risk they maintain a diversified portfolio and use the services of investment advisors who are not only experts in the charity sector but who also know the Abbey well and understand its ethos.

In this era of increasing government legislation and third-party litigation, the Trustees note also the risks which these present to the Abbey. The Trustees seek to reduce these risks by using the services of experts in the relevant fields (for example, lawyers, financial advisers, insurance brokers) to provide the knowledge which the trustees may lack.

In making charitable donations the Abbey risks that these grants will be ineffective. The Trustees reduce this risk by donating in the main to charities which are well known to them and whose accounts are available for inspection. Where necessary they seek the advice of relevant professionals or other charities in the field.

STRUCTURE, GOVERNANCE AND MANAGEMENT

The Abbey is governed by the Abbess, who is elected for life by the nuns. She is advised by her prioress and by a council consisting of the prioress, a nun chosen by the Abbess and two nuns elected by the community. The Abbess appoints a bursar who oversees the financial affairs of the charity.

Trustees are appointed by the Abbess from members of the community and decisions are made on a majority basis. The Trustees in office during the period and at the date of this report are set out on page 8.

All of the Trustees are senior nuns of the community and, as such, have an in-depth knowledge of the charity. All Trustees have been given a copy of the Charity Commission Publications, The Essential Trustee: What you need to Know and The Hallmarks of an Effective Charity so that they are fully aware of their responsibilities. The bursar during the period, who was also a trustee, attended the meetings of Benedictine bursars of the British Isles and also of the Solesmes Congregation whenever possible to hear of new Trustees also seek guidance whenever necessary from professional firms (for example, accountants, solicitors, investment managers, insurance brokers) of suitable standing and with wide knowledge of the religious charity sector.

gregation of Solesmes, a grouping of abbeys and priories in several countries which have a common history and traditions, derived from the Abbey of S-Pierre Declarations of the Abbey of Ste-Cécile de Solesmes. The chief financial consequence of the Rule and Declarations is that any activities of the Abbey must not trespass on the strictly enclosed contemplative life of the nuns, which finds its principal expression in the praise of God in the Divine Office. In accordance with the aforesaid Rule and Declarations, the Abbey of St Cecilia is an independent religious community and its financial affairs are in the hands of the nuns themselves.

6

REFERENCE AND ADMINISTRATIVE DETAILS

The name of the Charity: Charity registration number: 1088086 Address: Appley Rise Ryde Isle of Wight PO33 1LH Trustees: E Eaglesham (retired 22 January 2022) H Eckhardt E Lee A-M Fiévet The custodian trustees at 31 December 2021 were as above. Solicitors: Tozers Solicitors Southernhay West Exeter EX1 1UA Auditors: Francis Clark LLP Chartered Accountants Sigma House Oak View Close Edginswell Park Torquay TQ2 7FF Bankers: HSBC 38 Union Street Ryde Isle of Wight PO33 2LJ Investment Managers: Charles Stanley Limited 25 Luke Street London EC2A 4AR

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St Cecilia's Abbey Trustees, Report ststement of Tru8tees' Responslbllltie8 The trustees are responsible for p￿parIng the Trustees, Report and the financial statements in accordance with appIl￿ble law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Praclicel. The law applieable lo charities in England and Wales requires the Trustees to prepare financial statements for each financial year which give a lrtje and frdir view of the state of affairs of the charity and of the incoming resources and application tsf resouices of the ¢harily lor that period. In preparing these financial statements, the tnjslees are required lo.. select suitable accounting policies and then apply them consislentty., observe the methods and principles in the Charities SORP., make judgments and eslimales that are reasonable and prudent., stale whether applicable accounting standards have been followed, subject lo any material departures disclosed and explained in the financial ststements., and prepare the financial ststemenls on the going concern basis unles$ it is inappropriate to presume that the Charity will continue in business. The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy al any time the financial posi12on of the charity and enable them to ensure that the financial statements comply with the Charities Ac: 2011, the Charities (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They a￿ also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Slgned on behalf of the Trustees Trustee

St

Independent Auditor

Opinion

We have December 2021 which comprise the Statement of Financial Activities, the Balance Sheet, the statement of Cash Flows and the related notes. 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 in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements 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 charity's ability to continue as a going concern for a period of at least twelve months from when the original financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report, other than the financial The trustees are responsible for the other information. Our opinion on the financial statements does not cover the other information and 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.

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St

Independent Auditor

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters where the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:

Responsibilities of trustees

page 8 the trustees are responsible for the preparation of financial statements which 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 prepari continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the Charity or to cease operations, or have no realistic alternative but to do so.

responsibilities for the audit of the financial statements

We have been appointed as auditor under the Charities Act 2011, s144 and report in accordance with regulations made under the Act and relevant regulations made or having effect thereunder.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether 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:

As part of our audit planning we obtained an understanding of the legal and regulatory framework that is applicable to the Charity and the sector in which it operates to identify the key laws and regulations affecting the Charity. The key regulations we identified were Charity legislation and Charity Commission requirements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements, primarily the Charities Act and the Charities SORP.

We discussed with management how the compliance with these laws and regulations is monitored and discussed policies and procedures in place. We also identified the individuals who have responsibility for ensuring that the Charity complies with laws and regulations and deals with reporting any issues if they arise. As part of our planning procedures, we assessed the risk of any non-compliance with laws and regulations on

Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Our procedures involved the following:

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St

Independent Auditor

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements. This risk increases the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements as we are less likely to become aware of instances of non-compliance. The risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment, collusion, omission or misrepresentation.

A further description of our responsibilities is available

Use of our report

This report is made solely to the Charity trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the trustees those matters we are required to state to trustees in an auditors report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Charity and its trustees as a body, for our audit work, for this report, or for the opinions we have formed.

(Senior Statutory Auditor) Francis Clark LLP, Statutory Auditor

Sigma House Oak View Close Edginswell Park Torquay TQ2 7FF

Francis Clark LLP is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.

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Statement of Financial Activities

Year Ended 31 December 2021

2021
Restricted
Unrestricted
Total
Fund
Funds
Funds
Notes
£
£
£
Income from:
Donations and legacies
3
-
88,484
88,484
Retreat income
-
5,210
5,210
Nuns' pensions and allowances
-
106,965
106,965
Charitable activities:
Sale of Altar Breads
-
59,703
59,703
Other Shop Sales
-
9,067
9,067
Investment income
4
-
522,426
522,426
Other
-
9,156
9,156
Total
-
801,011
801,011
Expenditure on:
Raising funds:
-
56,630
56,630
Rental property expenses
-
24,653
24,653
Charitable activities:
Altar breads and shop expenses
-
28,575
28,575
Retreat expenses
-
4,131
4,131
Church expenses
-
18,463
18,463
Costs of maintaining the community
6
-
397,710
397,710
Grants and donations
5
-
87,812
87,812
Total
-
617,974
617,974
Net gains/(losses) on investments
9
-
1,630,869
1,630,869
Net income/(expenditure)
-
1,813,906
1,813,906
Transfers between funds
12
(1,053,657)
1,053,657
-
Net movement in funds
(1,053,657)
2,867,563
1,813,906
Reconciliation of funds:
Total Funds brought forward
2,660,616
21,548,483 24,209,099
Total funds carried forward
1,606,959
24,416,046 26,023,005		 2021
Total
Funds
£
88,484
5,210
106,965
59,703
9,067
522,426
9,156
2020

Total

Funds

£

61,883

2,570

101,535

43,703

5,570

466,949

13,671

695,881

46,638

17,508

19,367

3,846

9,070

379,008

60,216

535,653
(711,147)
(550,919)

-
(550,919)
24,760,018
24,209,099
801,011
56,630
24,653
28,575
4,131
18,463
397,710
87,812
617,974

The notes on page 15 to 25 form part of these accounts.

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St Cecilia's Abbey Balance Sheet 31 December 2021 Notes 2021 2020 Flxed assets Tangible assets Investments 5,814,592 21.397,633 5,850,709 19,337,794 27,212,225 25,188,S03 Current assets Stock Debtors Cash 21 bank and In hand 4,700 107,260 210.830 4.700 88,108 231.416 10 322,790 324,224 Llabilities Creditors". Amount5 falling due within one year 11 11,512,010) 11,303,628) Net current liabilities 11,189,220} 1979,404} Total Net assets 26,023,005 24,209,099 The fund$ of tho charlty:_ Restricted funds Unrestricted funds" Designated funds General funds 12 13 1.606.959 2,660,616 11.806.924 12.609.122 11,120,598 10,427,885 Total charlty funds 26.023.005 24,209,099 Approved by the Trustees on . and signed on their behalf by.. Trnstee Tb,e fiotes on page 15 10 25 form part of these accounts. 13

St

Statement of Cash Flows

Year Ended 31 December 2021

Notes
Cash flows from operating activities:
Net Cash provided by/(used in) operating activities
17
Cash flows from investing activities:
Dividends, interest and rents from investments
4
Purchase of property and equipment
8
Net (investments) from investment portfolio
9
Net cash provided by investing activities
Change in cash and cash equivalents in the reporting
period
Cash and cash equivalents at the beginning of the
reporting period
Cash and cash equivalents at the end of the reporting
period		 2021
£
(108,092)
522,426
(5,950)
(428,970)
87,506
(20,586)
231,416
210,830		 2020
£
61,056
466,949
(38,801)
(394,559)
33,589
94,645
136,771
231,416

The notes on page 15 to 25 form part of these accounts.

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Notes and Accounting Policies

Year Ended 31 December 2021

1 Accounting Policies

The principal accounting policies adopted, judgments and key sources of estimation uncertainty in the preparation of the financial statements are as follows:

The accounts (financial statements) have been prepared on an accruals basis under the historical cost convention, except for the valuation of investments at market value. The financial statements have been prepared in accordance with the Charities SORP (FRS 102) Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019), the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and the Charities Act 2011.

The trust constitutes a public benefit entity as defined by FRS 102.

as a going concern.

(b) Fund accounting

Donations and legacies

Donations are recognised when the Trust has been notified in writing of both the amount and settlement date.

Where the charity does not have discretion in the collection and distribution of donations and has no entitlement to the donations, then these amounts are conduit funding. Amounts relating to conduit funding are not included in the Statement of Financial Activities of the Charity.

Legacy gifts are recognised on a case by case basis following the granting of probate when the administrator/executor for the estate has communicated in writing both the amount and settlement date.

Retreat income

This relates to the donations received from retreatants and is recognised on a receivable basis.

Pensions and allowances are recognised on a receivable basis.

Altar bread and shop income

Income from the sale of altar breads and shop sales is recognised when the goods are despatched.

Investment income

Investment income is recognised on a receivable basis. Where income is receivable net of basic rate tax, the gross amount of income is included in the Statement of Financial Activities (SOFA) as investment income. No adjustment is made for accrued income included in the price of securities that were acquired or disposed of during the year.

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Notes and Accounting Policies

Year Ended 31 December 2021

1 Accounting Policies (continued)

(d) Expenditure recognition

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that settlement will be required and the amount of the obligation can be measured reliably.

All expenditure is accounted for on an accruals basis and includes irrecoverable VAT. All costs have been directly attributed to one of the categories of resources expended in the SOFA.

Tangible assets donated on the creation of the Trust have been valued in accordance with their insurance values at that time. Subsequent additions are included at cost or, in the case of property transferred from investments, at its insurance value. Replacement fixtures, furniture and equipment are charged to the SOFA in the year in which the expense is incurred.

Tangible assets other than freehold land are depreciated over their estimated useful lives, at the following rates:-

Abbey buildings 0% straight line
Other leasehold buildings 2% straight line
Fixtures, fittings and equipment 5-10% straight line

Abbey in such a condition that the value is not impaired by the passage of time. Such expenditure is charged in the year it is committed. The nature of the Abbey owned by the Charity is such that it is unlikely to suffer from economic changes or technical advances. As a consequence any element of depreciation would, in the opinion of the Trustees, be immaterial and therefore no provision has been made.

The valuation of the Abbey buildings is reviewed for impairment whenever events or changes in circumstances suggest that the carrying value may be in excess of its recoverable amount. Recoverable amount is the higher of net realisable value and value in use (which is measured on the basis of the worth of the service delivery of the asset). Where an impairment has occurred, the carrying value of the asset is written down to its recoverable amount, and the revised value of the asset is depreciated over its remaining useful life. The impairment loss is charged to the

(f) Financial instruments

The Abbey only has financial assets and other financial liabilities of a kind that qualify as basic financial instruments. These comprise cash and bank balances, short term trade and other debtors and creditors and listed investments.

Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value. They are derecognised when the contractual rights to cash flows from the assets expire or substantially all the risks and rewards of ownership are transferred to another party or in the case of liabilities when obligations are discharged.

16

Notes and Accounting Policies

Year Ended 31 December 2021

(i) Foreign currencies

2

position

as trustees.

The charity maintains and supports the trustees in the same way as nuns who are not trustees. As this is part of the charitable objects of the charity it is not seen to be remuneration for their services as trustees.

No expenses have been paid or reimbursed to the trustees by virtue of their position as trustees.

During the year trustees donated their pensions and allowances totalling £24,193 to the charity (2020: £24,625), as well as dowries of £174,000 (2020: £nil).

3
Income
Donations and legacies:
Legacies
Other gifts and donations
Other gifts and donations		 2021
£
43,404
45,080
88,484		 2020
£
11,500
50,383
61,883

Includes £nil (2020: £nil) restricted income.

17

Notes and Accounting Policies

Year Ended 31 December 2021

4
Investment Income (unrestricted)
Income received from:
Properties
Listed investments
Cash held as part of an investment portfolio and at bank		 2021
2020
£
£
40,962
40,367
481,443
425,348
21
1,234
522,426
466,949

5 Grants Payable

During the year the following grants and donations were made:

Individuals:
Grants to people in financial need
Institutions involved in:
Religious Welfare
Overseas Aid
Children
Medical
Poor
Other
Total		 2021
£
Number
120
2
67,362
15
9,950
8
800
2
2,520
4
4,600
5
2,460
5
87,692
39
87,812
41		 2020
£
336
41,405
7,800
600
2,520
5,100
2,455
59,880
60,216		 Number
4
23
7
1
4
5
5
45
49

Included in the grants above is £nil (2020: £nil) relating to restricted funds.

Included in the above institutional grants are the following amounts greater than £1,000:

£
ACN 15,000
AIM 1,000
CAFOD 1,000
CAFOD - Afghan 1,000
Grief to Grace 1,000
Holy See 3,246
Ethiopaid 2,000
International Refugee Trust 1,000
2,750
Opportunity International 1,000
Earl Mountbatten Hospice 2,000
De Paul Trust 1,000
Emmaus 1,000
Missionaries of Charity, Manchester 1,000
The Passage 1,000
Jubilee 1,240
Domicans Lym 5,000
Quarr Abbey 40,000

18

Notes and Accounting Policies

Year Ended 31 December 2021

6 Costs of Maintaining the Community

Designated Unrestricted
£
£
Wages Costs
-
95,918
Nuns' NIC
-
5,256
Repairs, renewals and maintenance
-
98,046
Heat and light
-
16,710
Postage, phone and stationery
-
11,123
Water rates and council tax
-
7,828
Household provisions
-
23,115
Insurance
-
15,845
Clothing
-
2,046
Gardening expenses
-
31,871
Monastic hospitality
-
1,446
Medical costs
-
11,111
Library Costs
-
1,668
Motor and travel expenses
-
1,491
Advertising
-
13,367
Sundries
-
8,363
Depreciation
40,817
-
Legal and Professional
-
109
Governance
- statutory audit
-
6,000
- other
-
5,580
40,817
356,893
Included in the costs above is £nil (2020: £nil) relating to restricted funds.
7
Staff costs
Gross wages and salaries
Employer
s national insurance
Average number of staff		 2021
£
94,855
5,256
98,046
16,710
11,123
7,828
23,115
15,845
2,046
31,871
1,446
11,111
1,668
1,491
13,367
8,363
40,817
109
6,000
5,580
397,710
2021
£
87,685
7,170
94,855
5		 2020
£
112,236
2,363
41,262
15,709
6,334
7,149
33,079
15,041
990
31,519
1,353
7,240
1,703
1,009
120
7,530
79,499
3,892
6,000
4,980
379,008
2020
£
108,111
4,125
112,236
5

The charity considers its key management personnel comprise the Trustees only to whom no employment benefits were paid.

No employees received any employee benefits in excess of £60,000 (2020: nil).

During the year a redundancy payment of £Nil was made (2020: £8,568)

19

Notes and Accounting Policies

Year Ended 31 December 2021

8 Tangible Fixed Assets Fixtures
Freehold Leasehold Fittings &
Property Property Equipment Total
£ £ £ £
Cost
At 1 January 2021 5,535,622 200,655 1,183,122 6,919,399
Additions 3,072 - 2,878 5,950
Disposals - - (2,500) (2,500)
At 31 December 2021 5,538,694 200,655 1,183,500 6,922,849
Accumulated Depreciation
At 1 January 2021 - 80,260 988,430 1,068,690
Charge for the Year - 4,013 37,079 41,092
Disposals - - (1,525) (1,525)
At 31 December 2021 - 84,273 1,023,984 1,108,257
Net Book Value
At 31 December 2021 5,538,694 116,382 159,516 5,814,592
At 31 December 2020 5,535,622 120,395 194,692 5,850,709

Tangible assets donated on creation of the Trust have been valued in accordance with their insurance values at the time.

The leasehold property is held on a 1,000 year lease that expires in 2841.

20

Notes and Accounting Policies

Year Ended 31 December 2021

9
Investments
Listed on a recognised stock exchange:
Market value of Portfolio at 1 January 2021
Transfers to/(from) cash
Net investment (disposals)/additions made in the year
Realised and unrealised gains/(losses) on investments
Market value at 31 December 2021
UK Cash held as part of the investment portfolio:
Balance at 1 January 2021
Transfers (to)/from listed investments
Withdrawn from investment
Balance at 31 December 2021
UK Investment properties:
Balance at 1 January 2021
Additions to investment properties
Revaluation during year
Market value of investment property at 31 December 2021
Programme related property investments:
Balance at 1 January 2021 and cost of programme related
investments at 31 December 2021		 2021
2020
£
£
15,432,382
15,632,898
(421,216)
212,824
428,970
394,559
1,523,690
(807,899)
16,963,826
15,432,382
1,529,459
1,742,283
421,216
(212,824)
-
-
1,950,675
1,529,459
1,623,461
1,526,709
-
-
107,179
96,752
1,730,640
1,623,461
752,492
752,492
21,397,633
19,337,794

The investment property donated on creation of the Trust has been valued by the Trustees on the basis of its building insurance value. The investment property purchased in 2015 has been included at indexed cost. These are considered to be fair values.

The programme related property investment has been made to support another religious order and is valued at cost.

The market value of the listed investments held at 31 December 2021 was £16,963,826 (2020: £15,432,382); of this value £4,912,614 (2020: £4,495,889) relates to non-UK investments. The cost of listed investments at 31 December 2021 was £14,703,748 (2020: £14,290,343). The trustees consider that there were no material individual investment holdings in the year that require disclosure.

All quoted investments are carried at their fair value. Investments in equities and fixed interest securities are all traded in quoted public markets. Holdings in common investment funds and unit trusts are at bid price. The basis of fair value for quoted investments is equivalent to the market value. Assets sales and purchases are recognised at the date of trade at cost (that is their transaction value).

21

Notes and Accounting Policies

Year Ended 31 December 2021

10 Debtors 2021 2020
£ £
Trade Debtors 5,483 5,372
Prepayments and accrued income 101,777 82,736
107,260 88,108
11 Creditors
2021 2020
£ £
Other Creditors 176,955 186,531
Repayable Dowries 1,332,377 1,117,097
1,509,332 1,303,628

12 Restricted Funds

The Congregation of Solesmes restricted fund represents an amount prescribed by the Congregation. investments which enable it to be accessed if required. A transfer is made to or from the fund to ensure .

The movement on the restricted fund is shown below.

Balance at Incoming Balance at
1 Jan 2021 Gifts Transfers Expenditure 31 Dec 2021
£ £ £ £ £
Current year:
Congregation of Solesmes
2,660,616		 - (1,053,657)
-		 1,606,959
Previous year:
Congregation of Solesmes
2,017,623		 - 642,993 - 2,660,616

22

Notes and Accounting Policies

Year Ended 31 December 2021

13 Unrestricted Funds

The movements on the designated and unrestricted funds are shown below.

Balance at
Current year:
1 Jan 2021
£
Designated Funds
Repairs
584,939
Nursing Fees
1,800,000
Library and liturgical Books
22,143
Contingency Reserve
2,092,875
Fixed Assets/PRI
6,603,201
New Car
12,000
India
440
Visiting Nuns Fund
5,000
Total Designated Funds
11,120,598
Unrestricted General Fund
10,427,885
Total Unrestricted Funds
21,548,483
Balance at
Previous year:
1 Jan 2020
£
Designated Funds
Repairs
595,205
Nursing Fees
1,800,000
Library and liturgical Books
22,143
Contingency Reserve
2,022,351
Fixed Assets/PRI
6,643,899
New Car
12,000
India
440
Visiting Nuns Fund
5,000
Total Designated Funds
11,101,038
Unrestricted General Fund
11,641,357
Total Unrestricted Funds
22,742,395		 Depreciation/
Income Expenditure/
Gains/
Balance at
Transfers
(Losses)
31 Dec 2021
£
£
£
£
- (86,718) - 498,221
- 810,000
-
2,610,000
-
100
-
22,243
- (939) - 2,091,936
- 4,975 (41,092) 6,567,084
- - - 12,000
- - -
440
- - - 5,000
-
727,418
(41,092) 11,806,924
801,011 (250,643) 1,630,869 12,609,122
801,011 476,775 1,589,777
24,416,046
Depreciation/
Income Expenditure/
Gains/
Balance at
Transfers
(Losses)
31 Dec 2020
£
£
£
£
-
(10,266)
-
584,939
-
-
-
1,800,000
-
-
-
22,143
-
70,524
-
2,092,875
-
38,801
(79,499)
6,603,201
-
-
-
12,000
-
-
-
440
-
-
-
5,000
-
99,059
(79,499)
11,120,598
695,881
(1,198,206)
(711,147)
10,427,885
695,881
(1,099,147)
(790,646)
21,548,483

23

Notes and Accounting Policies

Year Ended 31 December 2021

13 Unrestricted Funds (continued)

Repairs fund

This represents a reserve designated for building maintenance. A transfer from this fund has been made during the year so that the fund amounts to five years repair costs.

Nursing fees

This is a fund designated to meet the cost of nursing fees likely to be required if a Sister is in need of specialist care.

Library books

The Abbey has to meet the costs of providing new books for the library and choir. This fund is to ensure that these costs can be met as and when required.

Contingency reserve

This designation is to be used for emergency purposes and is based on the cost of maintaining the Community over the last five years. A transfer to the fund has been made during the year to reflect this.

Fixed asset and PRI reserve

This fund represents the net book value of the Ch investments (PRI). A transfer is made to or from unrestricted reserves each year to ensure that the fund continues to reflect the net book value of these assets.

New car

This fund is for the purchase of a new car.

India fund

This is a fund used to account for gifts and donations from the monastery and from friends so that the Charity is able to assist in an emergency and pay for machinery for altar breads from other European countries.

Visiting nuns reserve

This designation is for anticipated long term costs that will arise in connection with Sisters staying at the Abbey.

14 Commitments

The charity has promised to allow a religious community to live in one of its properties for as long as the community needs it.

At 31 December 2021 and 31 December 2020 the Abbey had no capital commitments.

24

Notes and Accounting Policies

Year Ended 31 December 2021

15 Obligations under operating leases

Lessor

The total of future minimum lease payments receivable is as follows:

2021 2020
£ £
Not later than one year 5,032 5,032
Later than one year and not later than five years 3,168 3,168
8,200 8,200
Split of Assets Between Funds
2021 2020
Restricted Unrestricted Total Total
Fund
Funds		 Funds Funds
£ £ £ £
Represented by:
Tangible fixed assets -
5,814,592		 5,814,592 5,850,709
Investments 1,606,959 19,790,674 21,397,633 19,337,794
Current assets -
322,790		 322,790 324,224
Current liabilities - (1,512,010) (1,512,010) (1,303,628)
1,606,959
24,416,046		 26,023,005 24,209,099

16 Split of Assets Between Funds

17 Reconciliation of net income / (expenditure) to net cash flow from operating activities

2021
£
Net income / (expenditure) for the reporting period (as per the
1,813,906
statement of financial activities)
Adjustments for:
Depreciation charges
41,092
(Gains)/losses on investments
(1,630,869)
Loss on fixed assets
975
Dividends, interest and rents from investments
(522,426)
(Increase) /decrease in debtors
(19,152)
Increase in creditors
208,382
Net cash (used in)/provided by operating activities
(108,092)		 2020
£
(550,919)
79,499
711,147
-
(466,949)
276,496
11,782
61,056

25