## **WORTH ABBEY AND ITS SUBSIDIARIES Annual Report and Consolidated Financial Statements**
~~**for t**~~ **he Year Ended 31 August** ~~**2022**~~
## **Contents**
||**Foreword from the Abbot of Worth (Chairman of**
**Trustees)**|**2**|
|---|---|---|
||**Trustees’ Report (incorporating the Strategic Report)**|**3**|
||**Our Finances: A Review of 2021-22**|**10**|
||**Legal Structure & Governance**|**13**|
||**Statement of Trustees Responsibilities**|**16**|
||**Independent Auditor’s Report**|**19**|
||**Consolidated Statement of Financial Activities**||
||**including an Income & Expenditure Account**for the year|**23**|
||ended 31 August 2022||
||**Consolidated Balance Sheet**as at 31 August 2022|**24**|
||**Charity Balance Sheet**as at 31 August 2022|**25**|
||**Consolidated Cash Flow Statement**for the year ended 31
August 2022|**26**|
||**Notes to the Financial Statements**|**27**|
||**Reference & Administrative details**|**54**|
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**Foreword** ~~Dear Friends,~~
Through the energy and initiative of many friends and collaborators, during 2021 to 2022 the monks of Worth Abbey have launched a new partnership network, the Worth Abbey Pilgrims.
The Abbey Pilgrims network will promote friendship with Christ and mutual support among those who associate with Worth Abbey in many different ways. It will act as a communication network for information about Worth Abbey; it will support the monks of Worth in hosting a variety of pastoral events. Such events are intended to make the Abbey’s resources better known and more widely available to people in the locality and beyond.
It is our aim in this way to activate the ancient tradition of monastic hospitality in a contemporary modality, thereby bringing more people over the Abbey’s threshold where they may begin to move from an initial encounter with the Gospel to a deeper relationship with Our Lord Jesus Christ.
Dialogue between monks and the founding members of the Abbey Pilgrims network has assisted Worth Abbey in articulating the four major elements of the Abbey’s offer to those among whom we minister:
In a partnership of witness to Christ with our friends and collaborators,
- we offer the **Welcome** characteristic of the western monastic tradition;
- we lift our hearts in **Worship** both in public liturgy and personal prayer;
- we share the **Wisdom** of the Catholic Benedictine tradition; and
~~ we~~ ~~**Work** in service~~ of our neighbour.
May God bless us all for the year ahead.
## **The Rt Rev Dr JD Barrett, OSB**
The Abbot of Worth & Chair of the Trustees of Worth Abbey
## **2021/2022 key achievements**
- We launched the Worth Abbey Pilgrims initiative, a partnership network of monks and supporters of the Abbey, and hosted the first Easter Sunday Pilgrims celebration as well as a Summer Pilgrims Festival attended by almost 1000 people;
- Worth Abbey continued to offer audio streaming of the Divine Office and video streaming of Mass from the Abbey Church;
- The Abbatial Blessing of Dom Mark Barrett, the seventh Abbot of Worth, by Bishop Richard Moth, Bishop of Arundel and Brighton, took place;
- The monks of Worth worked alongside Worth School as School Governors and by providing priestly sacramental services, worship services, pastoral support and formation for pupils and staff, as well as accommodation for the school’s youth ministers, the ‘Forerunners’;
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## **Foreword**
- ~~The Worth Abbey Retreat Centre expanded~~ its client base and extended the availability of retreat experiences;
- We launched a ‘Monastic Interns Initiative’, by which it will be possible for Catholic men between 18 and 35 to live alongside the monastic community for up to a month at a time;
- ~~We developed the monastic~~ mission of our Brighton community by deepening our partnership with the Diocese of Arundel and Brighton through our involvement in the East Brighton parish and the Universities.
**The Trustees, who also served as company directors during the year, are pleased to present their report and the consolidated financial statements for Worth Abbey and its subsidiaries for the year ended 31 August 2022. The Trustees confirm that the financial statements comply with current statutory requirements, those of the various governing documents and the requirements of the Charities SORP (FRS 102).**
Worth Abbey is a registered charity based in Turners Hill, near Crawley in West Sussex. The monks of Worth Abbey, in response to the call of Christ, follow the life-giving guidance of the Rule of St. Benedict.
The objectives of the charity are:
_the advancement of education including the education and training of priests and persons desirous of becoming priests of the Roman Catholic religion_
_the relief of the infirm, aged or poor, and in particular the relief of aged priests and clerics and other persons professing the Roman_
_C h li li i_
Living from monastic wisdom, we welcome visitors to share the monks’ life of prayer and we evangelise through our pastoral works.
_the advancement of the such other purposes Roman Catholic religionthat are charitable_
## **How our work delivers public benefit**
Under section four of the Charities Act 2011, we have a duty to report on the public benefit that we deliver. Taking the Charity Commission’s guidance into consideration, the Trustees are satisfied that our public benefit requirements have been met in numerous ways as detailed within this report.
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## **Foreword** ~~**Our Monastic Community**~~
The Benedictine Monastic Community of Worth Abbey comprises 19 Benedictine monks. Some live together at Worth Abbey, while others are involved in mission contexts in East Brighton and other places. Every member of the community seeks God through fraternal service, communal and personal prayer, hospitality and pastoral mission.
Abbot Mark received the Abbatial Blessing as the seventh Abbot of Worth Abbey from Bishop Richard Moth of the Diocese of Arundel and Brighton on 11 September 2021.
In the course of 2021-22, we launched the Worth Abbey Pilgrims initiative, a partnership network of monks and supporters of the Abbey, which promotes friendship with Christ and mutual support among those who associate with Worth Abbey in many different ways. The Abbey Pilgrims will act as a communication network for information about Worth Abbey, and will support the monks of Worth in hosting a variety of pastoral events intended to make the Abbey’s resources better known by, and more widely available to, people in the locality and beyond. During the year the Abbey Pilgrims hosted a popular family-oriented Easter Sunday Pilgrims celebration, featuring children’s games and opportunities to explore the Abbey Estate. The August Bank Holiday saw our first ever Summer Pilgrims Festival, generously hosted by upward of 60 volunteers and attended by almost 1000 people.
The monks have also launched a ‘Monastic Interns Initiative’, following a successful model employed in several other Abbeys, by which it will be possible for Catholic men between 18 and 35 to live alongside the monastic community for up to a month at a time. In the course of the year a suitable physical facility, ‘Archway Lodge’, has been prepared for these men to live; we hope to welcome the first participants in 2023.
Following St Benedict’s concern that care for the sick must rank above and before all else, and that both the old and the young should be treated with compassion, we continue to monitor the long-term care of those within the Monastic Community who, through age or infirmity are unable to look after themselves. We seek to ensure that they receive the best possible care within our infirmary facilities. To assist us in this respect, we employ a Health and Care Manager who works alongside a monk Infirmarian; they lead in overseeing and providing the necessary medical and other care required. Two occasional nursing staff support this work. The provision of other day carers, while desirable, is currently proving challenging.
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## **Foreword** ~~**Worth Abbey staf**~~
In the course of the last year the work streams from previous Abbey staff roles have been re-absorbed into the Abbot’s office, and the staffing of the Abbot’s Office has been expanded to include a full-time secretarial and administrative Assistant to the Abbot. The work of the monastery continues to be supported by the Chief Operating Officer of Worth School, and the services provided by the support departments of Worth School.
## **Worth Abbey Music**
Music plays a central role in the life and worship of Worth Abbey. To support a high quality of Abbey music we have employed a professional musician to act as Abbey Director of Music and Monastic Organist, alongside our existing professional Abbey Organist. The Abbey Director of Music recruits and leads a Sunday Choir of local vocalists who support the Sunday worship offered in Worth Abbey Church.
## **Worth School**
Worth School is a co-educational Roman Catholic boarding and day independent school for pupils from 11 to 18 years of age. The School is located on the 500-acre Worth Abbey estate. Worth School is a subsidiary charity of Worth Abbey, which is the sole member. The Abbot of Worth is President of the Worth School Board and also a Governor of the School. Two other monastic governors complete the Abbey’s support to school governance at Worth. Worth School produces its own annual report which is published separately.
In addition to the support of school governance, Worth Abbey continues to work alongside Worth School in a number of ways:
**Sunday Mass and Wednesday School Worship** – Monks of the Abbey support the school’s religious and sacramental life by celebrating an evening mass in the Abbey Church for the school’s boarders each term-time Sunday evening. When the school meets to worship as a body in the course of the school week, usually on a Wednesday, monks are present to hear confessions and also to celebrate mass from time to time.
**Senior Leadership Formation** — A series of formation retreat periods are timetabled through the school year for members of the Worth School SLT. These are regularly attended by and supported by members of the monastic community, who thereby help to ensure that the Benedictine and Catholic ethos of the School is maintained and strengthened.
**Pupil Formation events –** Worth School timetables periods of pupil formation, for example the Student Leadership Programme for sixth form students who aspire to positions as Prefects in their final year, in which monks are offered a role as speakers and formators. As with staff formation, this involvement of
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## **Foreword**
~~monks helps to ensure that the Benedictine and Catholic ethos of the School is~~ maintained and strengthened.
**School Chaplaincy and the Forerunners** — The Chaplaincy is led by the Director of Mission and comprises a team of six youth ministers who are known as ‘Forerunners’. Monastic support of the Chaplaincy helps to ensure that the Benedictine and Catholic ethos of the School is maintained and strengthened. This is delivered through regular formation meetings between the Forerunners and members of the Monastic Community.
Worth Abbey further supports the Forerunners by providing them with accommodation in Compass House, situated opposite Worth Abbey Church.
## **Hospitality and retreats**
Hospitality is a hallmark of Benedictine monasteries and the Monastic Community has welcomed many visitors to Worth for retreats, spiritual direction and holistic recreation in the Abbey’s beautiful and natural environment.
We normally offer hospitality and retreats in two ways:
**The Retreat Centre —** men and women from all faiths are welcomed for residential and other retreats which are facilitated by members of the Monastic Community and lay collaborators. The Retreat Centre, based in the St Bruno’s building, is a space where we share our own search for God with others who are also seeking God in their daily life. It represents our commitment to responding to the increasing spiritual needs within our society.
Subsequent to the pandemic period, from autumn 2021, the St Bruno’s Retreat Centre has been open to visitors and a range of retreat experiences is once again being offered onsite. The improved facility is proving of value to the new retreat programme. In addition to financial resource recently invested in Worth Abbey’s retreat offer, the monastery is providing additional monastic personnel to support the running of retreats in the St Bruno’s facility.
**Monastery guests —** We are able to make guest rooms within the Monastery available for up to three male guests who wish to come on residential retreat to share in the liturgical and community life of the monks. This ministry is supported by a monk Guest Master. Meals are taken with the monks in the Monastery refectory and the monastic day centres around the rhythm of the Divine Office and daily Mass.
## **Worth Abbey Church**
Designed by the architect Francis Pollen and opened in 1974, the Grade II listed Abbey Church adjoins the monastery buildings, also designed by Pollen. The Church provides a welcoming place to seek peace, solace and community.
Throughout the year being reported, we have been able to offer public worship in the Abbey Church. In order to follow the guidelines, set down by the Catholic Bishops’ Conference of England and Wales, we continue to provide hand
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## **Foreword**
~~sanitisation stations at all entrances to the Church building, as well as making~~ use of face masks for ministers of communion.
In the course of the present year, work began on a major project to renew the fabric of the Abbey Church roof. It is anticipated that the contractor, Marcon, will complete this work towards the end of the year, in 2022.
## **Worth Abbey Estate**
The Worth Abbey estate is within an Area of Outstanding Natural Beauty and spans 500 acres of West Sussex countryside. All of the land and buildings on the estate are owned by Worth Abbey, some of which are leased to Worth School.
In June 2019 Worth Abbey received a generous donation of £6.25m from Lord Michael Spencer of Alresford, an alumnus of Worth School, for the construction and fit out of a new Library and Sixth Form Centre for use by the School. Construction on this building began in September 2020 and was completed in March 2022. The formal opening of the building, by Lord Spencer, took place in April 2022
Begun in December 2020, the now completed Worth Estate Biomass Project provides heating to most School and Abbey buildings. This investment of £2.3m provides an ecologically friendly alternative to our previously used oilbased heating. Wood biomass fuel is sourced locally. Heat began to be provided by the new energy centre in October 2021 and the project achieved practical completion in March 2022.
## **Quiet Garden**
Our Quiet Garden is over 100 years old and was opened to the public in 2000 as part of the Quiet Garden Movement. A publicly accessible space maintained as a place of beauty and tranquillity which attracts many visitors looking for stillness in a busy world, it is maintained personally by the Monastic Community.
## **The Worth Abbey Parish**
The Worth Abbey Parish is part of the Diocese of Arundel and Brighton and was created in the 1960s from the country area between the large town parishes of East Grinstead, Haywards Heath and Crawley. Our Abbey parish numbers approximately 250 parishioners; the parish principally serves local residential communities near the Abbey, but also attracts, particularly to the Sunday Mass, many who live outside the parish boundaries. Fr Paul Fleetwood (a monk of Worth Abbey) has been the parish priest since 2016.
The mission of the Parish is to foster values of welcome and hospitality towards our fellow Christians, and to those of other faiths and none. The Parish is committed to service and outreach to the poor and those in need; to evangelisation; to the young; and to the protection of God’s Creation.
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## **Foreword**
~~Catechesis (religious instruction) of both children and adults is an important~~ part of the work of the parish.
Full details of the activities undertaken by the Parish can be found on its website: worthabbeyparish.co.uk. Worth Abbey Parish benefits from the resources and skills of Worth Abbey for its main Sunday celebration in the Abbey Church. Sunday masses are live-streamed via YouTube and Vimeo.
## **Brighton mission**
In the course of the year 2021-22, the Worth Abbey Brighton Mission moved to a new location in Richmond Road, East Brighton, under the name ‘Monks in the City’. Their priority remains that of following the Benedictine way of life and witnessing to the gospel, living alongside both the people of East Brighton and the Wellspring Community. They have offered hospitality and engaged in pastoral ministry in the local parish and the locality. The Chaplaincy to the University of Sussex, Falmer, remains an important element of this mission.
Planning into the following year, the Brighton Mission ‘Monks in the City’ will relocate to become resident in the Presbytery of St John Baptist, Kemp Town; in this context, which will provide more appropriate physical resource for monastic life, mission and worship, the Worth monks will work integrally with the East Brighton Parish team.
## **Scholarships and publications**
Fr Martin McGee has published ‘Le Combat Spirituel de Frère Christophe de Tibhirine: Un Bonheur d’Évangile’ (7 July, 2022. Parole et Silence).
## **Other forms of outreach beyond Worth**
Members of our Monastic Community continue to operate beyond Worth in a variety of capacities:
- Fr Stephen Ortiger is Episcopal Vicar for Religious in the Diocese of Arundel and Brighton, representing the Bishop to about 40 Orders, Congregations, and Institutes of Religious Sisters, Brothers and Priests. He is also diocesan Coordinator of School Chaplains. In addition to these roles, he is currently serving the diocese as Priest in Residence in the parish of Our Lady Star of the Sea, East Preston, West Sussex;
- Fr Martin McGee helps as an interreligious advisor to the Arundel and Brighton Diocese Diocesan Interfaith Group.
## **Worth Abbey Outreach Peru (WAOP)**
The Restricted Fund WAOP, established 1968, is Worth Abbey’s development fund for networks, institutions and people working for the poor in Peru. Over the decades, WAOP finances projects in nutrition, health, education and sustainable development, and provides aid to vulnerable people, mainly though not exclusively, through Peruvian Catholic Church partners. Fr Alexander da
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## **Foreword**
~~Costa Fernandes, Director, monitors projects through the year and usually visits~~ Peru annually.
The Covid-19 pandemic had a profound impact on the running of projects. Peru in July 2021 had the highest number of deaths per capita in the world. The Governmental response of curfews, lockdowns, quarantine, stopping interprovincial travel and closing land frontiers meant that all projects were delayed and moved online where possible. WAOP financed emergency Covid aid to a regional hospital, to an AIDS orphanage and creation of alternative livelihoods for domestic workers left unemployed. A total of 10 projects were supported, the direct beneficiaries of which are estimated at 8,500 and the indirect beneficiaries at 13,500, excluding the incalculable online projects directed at youth.
The WAOP resources expenditure for 2021–22 is set out in Note 15 to the Financial Statements.
The Trustees of Worth Abbey are assisted in their overall responsibility for the Fund by delegating some oversight and decision making to the ‘Outreach Peru Committee’.
## **Our work with our trading subsidiary Worth Abbey Projects Limited (WAP)**
WAP is a wholly owned commercial trading subsidiary of Worth Abbey, the purpose of which is to raise funds for Worth Abbey and any charities associated with Worth Abbey.
**— Worth Abbey Farm and Livery** Our farm is managed by a Farm Manager (employed by Worth Abbey) who is responsible for the farm, woodland, sheep and acts as Livery Supervisor. There are 38 stables used by local residents for DIY livery.
Forty hectares of the grassland pasture is entered in a Countryside Stewardship Agreement and managed with very low inputs and low livestock density to benefit wild birds, pollinators and invertebrate biodiversity. Eighty Hectares of woodland is also managed using a Forestry Commission approved plan and is also entered into a Countryside Stewardship Agreement. Woodland walks and footpaths are kept open and clear to promote access by the local community and visitors.
## **SECR statement**
The parent company utilises less than 40,000KWh of energy per year and the subsidiaries are not within scope of SECR.
## **Section 172(1) statement**
The trustees act in good faith to make decisions, the outcome of which they consider will be most likely to promote the success of the charity for the benefit of its charitable purposes as a whole, both in current periods and in the long term.
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## **Foreword**
~~In discharging their duties above, the trustees carefully consider, amongst~~ other matters, the impact on and interests of clients, volunteers, staff, funders and suppliers, and factor these into their decision-making process.
## **Clients**
The trustees put considerable time, effort and resources into understanding and responding to the needs of our clients, which are reflected in the Future of Advice strategy and our response to the Covid-19 crisis.
## **Volunteers and staf**
Trustees receive information on volunteer and staff physical and mental wellbeing and are committed to promoting a healthy workforce. They support the current work to build an inclusive culture and, as such, are committed to attracting and retaining diverse, high-calibre talent which volunteer and staff development helps support.
## **Funders**
The trustees closely monitor our funder relationships and receive regular reports on how we are meeting funder requirements. Our impact section and our ‘main services across England and Wales’ section of this report demonstrate how we’re providing services that deliver a high value-for-money offer for our funders.
## **Suppliers**
The trustees have established procedures to ensure that external suppliers are individually verified to ensure they meet with health and safety, regulatory and financial security standards required by the Charity.
## **Community and the environment**
The Charity recognises the importance of its environmental responsibilities and has measures in place to monitor and control its impact on the local environment and its compliance with any regulatory environmental standards. The Charity seeks to implement policies aimed at reducing any potential harmful environmental impact of its activities. See the 'energy disclosures' section for more details.
## **Standards and conduct**
The Charity has various policies regarding ethical standards and the conduct of business.
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## **Our financees: A review of 2021-22** ~~**Financial review and results for the year**~~
## _General funds_
Worth Abbey and its subsidiaries made a net surplus on the general funds for the year ended 31 August 2022 of £276,299 (2021: £269,158 loss). This is stated before unrealised investment losses of £224,727 (2021: £644,901 gain).
Separate financial statements have been prepared for Worth School, Worth school Lettings, Worth Abbey Projects Limited and Worth Abbey Construction Limited and their results are incorporated into these consolidated financial statements.
## _Designated funds_
The trustees of Worth Abbey and Worth School have funds they have designated for specific purposes including development of the abbey, building repairs and capital investment.
In the year ending 31 August 2022, Worth Abbey and its subsidiaries had net income on designated funds of £1,154,899 (2021: £601,819).
The general and designated funds together form the unrestricted funds of the group. The group made a net surplus on its unrestricted funds in the year ending 31 August 2022 of £1,431,198 (2021: £62,292 loss).
## _Restricted funds_
The trustees of Worth Abbey and Worth School have funds that have restricted to specific purposes by donors including Outreach Peru and the Sixth Form Centre.
In the year ending 31 August 2022, Worth Abbey and its subsidiaries made a net loss on restricted funds of £155,322 (2021: £206,866 loss). This is largely as a result of Outreach Peru maintaining its grants in Peru in fulfilment of its primary purpose, irrespective of any amount of income. This is stated before unrealised investment losses of £152,336 (2021: £237,900 gain).
This net loss is largely due to expenditure exceeding donations in Outreach Peru by £294,611 (2021: £165,353) due to the decision to maintain support of projects in Peru, while winding down funds in fulfilling public benefit.
## **Going concern**
With the decline in the COVID-19 pandemic, the trustees no longer anticipate that it will impact significantly on Group finances. Going forward, however, the Group is facing the impact of rising costs, staff shortages and the effects of the war in Ukraine. The Bank of England is forecasting the longest recession on record.
On the other hand, pupil applications to the School remain strong. The School budgeted on opening with 650 pupils in September and the actual pupil number were 660 at September 2022. The school has forecast 660 pupils in September 2023 and is expecting surpluses in both years
When considering going concern, the trustees consider a base case scenario, a reasonable worst-case scenario and a range of mitigating actions that are
## **Our financees: A review of 2021-22**
~~available to them. Cash is managed through a 12-month rolling forecast for the~~ whole Worth Abbey group: Worth Abbey, Worth School, Worth Abbey Projects Ltd and Worth Abbey Construction Ltd. The Trustees receive regular reports of these forecasts.
The group operating forecasts, together with cash flow forecasts, indicate that the group can expect to meet all its anticipated payments from its anticipated inflows and existing borrowing facilities for the next 12 months even in the reasonable down side scenario. As a result of these factors the Trustees consider that the group remains a going concern.
## **Our approach to Reserves management**
Reserves are held for a number of practical reasons, including the following:
- to provide continuity if income unexpectedly falls;
- to provide working capital to meet upfront expenditure during the year before income is received; and
- to provide resource for investment
The Trustees’ policy is to hold general reserves that are equal in amount to the value of the functional fixed assets used operationally by the Group plus one term’s operating costs.
At present general reserves are £7 million (2021: £7.2 million) less than the net book value (at historical cost) of the functional fixed assets used by the Group. Part of this shortfall is financed by bank loans totalling £3.9 million (2021: £5 million). As there is an expectation of an ongoing income stream from Worth School with plans for an improved financial performance of the Group post the COVID-19 pandemic, the Trustees can accept the current level of reserves.
In order to meet the target level of reserves, the Trustees expect the financial performance of Worth School and Worth Abbey Projects Limited to improve following the ending of the pandemic and are looking at measures to manage costs within Worth Abbey.
As at 31 August 2022, the Group’s general reserves amounted to £19.3 million (2021: £19.3 million). At the same date the Group had negative free reserves of £10.3 million (2021: negative free reserves of £10.7m).
## _Designated reserves_
At 31 August 2022, the Group had designated reserves of £2.8 million (2021: £1.6 million).
These were principally held for planned maintenance work and capital investment in the School (£1.7m) and in the Abbey (£0.8m). The trustees of Worth Abbey and Worth School anticipate that these funds will be used over the next 12 to 36 months.
The remaining designated reserves are for parts of the group that operate with a degree of independence from the main charities including the parent body,
## **Our financees: A review of 2021-22**
~~Friends of Worth, the alumni association, Worth Society, and the outreach~~ Brighton project. These reserves would expect to be maintained into the future.
## _Restricted reserves_
At 31 August 2022, the Group had restricted reserves of £8 million (2020: £8.3 million).
These represent donations the charities received for particular purposes mainly the Sixth Form Centre, Outreach Peru and Bursary fund.
## **Our approach to investments**
Worth Abbey’s investment powers are set out in its governing document, namely its Articles of Association and documentation relating to relevant funds. The Articles of Association permit the funds to be invested in any investments, securities and property of any kind situated anywhere in the world. The Trustees’ on-going policy is to achieve long term capital growth whilst maintaining a balanced approach to investment risk.
The Trustees have renewed their Investment Subcommittee with new appointments to monitor and report on investment performance and to recommend any changes to the Trustees.
The majority of Worth Abbey’s investments are placed in BlackRock Catholic Charities Growth and Income Fund, a Charity Authorised Investment Fund (‘CAIF’) managed by BlackRock Investment Management (UK) Limited, chosen on the basis of the Fund’s objective of achieving capital growth and a growing level of income whilst adhering to Worth Abbey’s ethical investment policy. In November 2015, Fr. Patrick Fludder (Worth Abbey Subprior) was appointed to the Catholic Charities Growth & Income Fund Advisory Board to help maintain the Fund’s specifically Roman Catholic ethical policy and oversee the Manager’s responsibility in administering the Fund for the benefit of all the Unitholders. In the financial year 01 September 2021 to 31 August 2022, the value of Worth Abbey’s investments decreased by 7.9%.
The Fund supporting Worth Abbey’s mission in Peru has been managed by Tilney Smith and Williamson in a USD denominated bespoke investment account with a similar ethical policy. In this financial year, the underlying USD value of the Peru investments has decreased by 47% reflecting drawdowns in excess of underlying investment growth. The income is reinvested and grants to the projects that Worth Abbey supports in Peru are made in USD after approval by the Worth Abbey Outreach Peru Committee.
The Trustees periodically review the performance of investments against benchmarks set. The Outreach Peru Fund has broadly matched its benchmark this year whilst the BlackRock fund’s total return has outperformed its benchmark over the year.
## **Risks and uncertainties**
## **Our financees: A review of 2021-22**
~~The Trustees are responsible for Worth Abbey’s systems of internal control and~~ for reviewing its effectiveness.
Where hazards have been identified, individual risk assessments continue to be undertaken and each core area of Worth Abbey’s operations are now working towards completing Risk Registers which highlight key strategic, governance, financial, operational and other risks. The intention of our control processes is to manage risk to within acceptable tolerances rather than eliminating it altogether. Going forward, Trustees will receive a twice-yearly report on all ‘red’ risks and an annual review of all ‘amber’ risks.
Action taken to mitigate risks has included purchasing appropriate insurance cover. The Trustees are covered by trustee indemnity insurance which is included in Worth Abbey’s insurance policy.
## **Legal Structure & Governance**
~~**Worth Abbey is a company limited by guarantee incorporated in**~~ **England on 02 July 2002. Our Articles of Association were last amended on 27 April 2021 and provide for a limitation of member liability to £1. Worth Abbey is also a registered charity in England and Wales.**
## **Group structure and relationships**
For the purposes of company law, Worth Abbey is the parent company and there are three subsidiaries:
Worth Abbey is the sole member of Worth School.
The School is governed by the School Governors (who are also its
Directors and **Worth School** Trustees). The Abbot is President of the Company limited by School Board and also guarantee (4476558) a Governor. and a charity registered in England The charitable objects & Wales (1093914) of the School are to
provide education in the Benedictine tradition, advance the Roman Catholic faith and support the work of Worth Abbey.
More details about our work with Worth School can be found on page 5 of this report and within their own annual report.
> Worth Abbey is the **Worth Abbey** sole shareholder of Company limited by guarantee WAP. (4475556) and a charity WAP has a duly registered in England & Wales constituted Board of (1093913) Directors (three of ~~wh~~ o ~~m~~ a ~~r~~ e Trustees of Worth Abbey). **Worth Abbey** WAP is a commercial **Projects Limited** company set up to **('WAP')** raise funds for Worth Private company Abbey via a number of activities such as limited by shares (4523776) lettings, ‘The Open Cloister’ retreats, farm and forestry operations, the Church bookshop, Bermondsey Huts and other commercial activities. More details about our work with WAP can be found on page 9.
Worth Abbey is the sole shareholder of WACL. KEY: WACL also has a duly - - - - (sole member) constituted Board of ______ (sole shareholder) Directors (both are Trustees of Worth Abbey). WACL is a commercial company set up to **Worth Abbey** undertake major **Construction** construction projects on **Limited ('WACL')** behalf of Worth Abbey. Private company limited by shares (4074835)
## **Legal Structure & Governance**
~~The School also set up a new trading subsidiary in August 2021, known as~~ Worth School Lettings Ltd. This subsidiary broke even in 2021-22.
The existing Group structure links us together and provides for certain decisions to be taken by Worth Abbey (in addition to those which are available under the Companies Act in respect of company members and shareholders). The governing documents (Articles) for each of the companies set out what these are.
## **Trustees of Worth Abbey and appointments**
The Trustees of Worth Abbey are the Abbot and his Council. The Council is determined each December. The members of the Council act as the company directors, and under charity law they have legal duties and responsibilities as charity Trustees.
The Abbot is elected by the Monastic Community every eight years and on 8 June 2021 Fr Mark Barrett was duly elected as Abbot. The Abbot then appoints the Prior. The other spaces on the Council are comprised of one appointment made by the Abbot and two representatives elected by the Monastic Community.
The Trustees administer the affairs of Worth Abbey. There is a schedule of matters reserved for its consideration; some of these matters it can decide upon, for others trustees makes recommendations to the Monastic Community. The Company is governed by its Articles of Association and the Constitutions of the Monks of the English Benedictine Congregation.
**Abbot & Chair of Trustees** :The Right Reverend Dr John Douglas Barrett MA (Cantab), MA, PhD _(elected as Abbot on 8 June 2021)._
**Trustees:** Reverend Philip James Cutts (resigned 17 December 2021)
The Reverend Alexander Byron da Costa Fernandes BSc, ARCS, BA (resigned 17 December 2021)
The Reverend Patrick Vincent Fludder BSc, BD, MA (Subprior)
The Reverend Martin Edward McGee BA MA MST ( _resigned 18 Dec 2020, re-appointed 17 Dec 2021_ )
The Very Reverend Christopher Aidan Murray BSc, PhD, BA, PGCE (Prior _, until 18 Dec 2020, appointed Safeguarding Trustee on 09 February 2021_ ) The Very Reverend Peter Mostyn Williams _(Appointed Prior on 15 June 2021)_
## **Worth Abbey decision-making and committee structure**
The Trustees have the ultimate responsibility for running the charity, with their principal duties being to set the strategic direction of the charity and ensure that the charity is solvent, properly run and delivers its charitable purposes.
## **Legal Structure & Governance**
~~Worth Abbey Trustees are supported by a Trustee Advisory Committee (TAC)~~ whose remit is to provide advice, guidance and/or recommendations on matters relating to strategy and policy which assist Worth Abbey in fulfilling its charitable objects. The members of the TAC are:
## **Chair** :
The Reverend Michael Thoms, BA
**Members** : Alda Andreotti (Independent Pension/HR consultant and Hospital Trust director)
The Rt Reverend J D Barrett MA (Cantab), MA, PhD
Patrick Bergin (Chief Financial Officer and Director of ilke Homes Holdings Ltd and its subsidiaries)
The Reverend P V Fludder BSc, BD, MA
The Very Reverend C A Murray BSc, PhD, BA, PGCE
Kevin Smyth (Solicitor, full time Civil/Commercial and Workplace Mediator and Under Sheriff for The Bailiwick of Sussex)
Monica Turner (Independent HR consultant, Westminster Roman Catholic Diocese)
Worth Abbey also has:
- a Health and Safety Committee;
- an Investment Committee, which meets to decide on how investments are managed and to monitor that the performance and allocation of funds are aligned with the Abbey’s Investment policy. There are 4 members of this committee which includes 2 advisers, the Chief Operating Officer (COO), and the Abbey’s nominated Bursar;
- a Building Advisory Group, which sits termly to discuss ongoing maintenance and future Building projects for the Abbey and School Estate. This is formed by 3 external advisers, the COO and the Estates Bursar;
- Worth Abbey Outreach Peru Committee (consisting of the Abbot, Subprior, director of AOP and one external advisor) which has some delegated authority from Trustees to make decisions on which projects to fund.
## **Senior staf**
The senior personnel in the Worth Abbey charity are Benedictine Monks, i.e. the Abbot, the Prior and the Subprior. They do not receive any remuneration for their service or position other than being members of the monastery who are all beneficiaries of Worth Abbey.
The Abbey currently relies on senior staff in Worth School for other necessary expertise. The School’s key management personnel comprise the Head Master, the Chief Operating Officer and the Second Master. These staff are appointed and remunerated by the governors of Worth School.
## **Safeguarding**
The Trustees understand their responsibility for the safeguarding of children and adults at risk as a foundational dimension of operating as a charity, as well
## **Legal Structure & Governance**
~~as a Christian duty mandated by the Catholic Church. A lead Trustee for~~ safeguarding assists the Trustees in this area, endeavouring to be especially close to safeguarding matters, as well as supporting the work of the charity’s Religious Safeguarding Lead.
Because many of Worth Abbey’s activities take place in close geographical proximity to a boarding and day school for children aged 11-18 (Worth School), in safeguarding matters the charity works closely with the safeguarding leads for Worth School, and its safeguarding policies and practices are developed to reflect educational safeguarding requirements when appropriate.
The Trustees have appointed a Religious Safeguarding Lead (RSL) who is externally trained to Designated Safeguarding Lead standard (a training that is regularly updated, and fully refreshed every third year). The RSL has day to day responsibility for all aspects of safeguarding across the charity’s activities.
National safeguarding provision for the Roman Catholic Church has been transitioning in the course of the present year from the previous position in which Religious communities were aligned with a local Diocesan Safeguarding Commission to a new structure overseen by a Catholic Safeguarding Standards Agency (NSSA) which provides a Religious Life Safeguarding Service (RLSS) with a national remit.
Like all Catholic charities, Worth Abbey is in process of adjusting to this new arrangement.
## **GDPR and Data Protection**
Worth Abbey is registered with the Information Commissioner’s Office (ICO). During the year Worth Abbey has:
- undertaken a review of its Data Protection and GDPR policy and Privacy Notices and has recognised the need to undertake further gap analysis, embedding and training which will be taken forward in 2022-23;
- undertaken a number of Privacy Impact Assessments (PIA’s) particularly in relation to the live streaming of Monastic and Parish Masses and online retreats.
## **Fundraising**
Worth Abbey is committed to the Fundraising Promise and adherence to the Code of Fundraising Practice. During the year:
- our fundraising efforts focused on encouraging donations, gifts and legacies via our website;
- we did not use any professional fundraisers or commercial participators to help us raise funds;
- we have not received any complaints about our fundraising activity; and
## **Legal Structure & Governance**
~~ we have not incurred any material expenditure as a result of fundraising~~ activity.
## **Statement of Trustees’ Responsibilities**
~~The Trustees (who are also the directors of the Company for the purposes of~~ company law) are responsible for preparing the Trustees’ report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company law requires the Trustees to prepare financial statements for each financial year. Under company law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of its net incoming resources and application of resources, including its income and expenditure, 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 of the Charities SORP (FRS 102):
- make judgments and estimates that are reasonable and prudent;
- state whether applicable UK Accounting Standards (FRS 102) have been followed, subject to any material departures disclosed and explained in the financial statements;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue to operate.
The Trustees are responsible for keeping proper accounting records that are sufficient to show and explain the Company’s transactions and disclose with reasonable accuracy at any time the financial position of the Company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
## **Disclosure of information to auditors**
Insofar as each of the Trustees of the charity at the date of approval of this report is aware there is no relevant audit information (information needed by the charity’s auditor in connection with preparing the audit report) of which the charity’s auditor is unaware. Each Trustee has taken all of the steps that he should have taken as a Trustee in order to make himself aware of any relevant audit information and to establish that the charity’s auditor is aware of that information.
## **Auditors**
Crowe UK LLP has expressed its willingness to continue in office as auditor and a resolution proposing its reappointment will be submitted to the Chapter.
**Statement of Trustees’ Responsibilities**
This Annual Report, prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities (Issued in January 2015), the Charities Act 2011 and the Companies Act 2006, was approved by the Trustees of Worth Abbey on 14 December 2022, including in their capacity as Company Directors approving the Strategic Report contained therein, and is signed as authorised on its behalf by:
**The Right Reverend J D Barrett** Chair of Trustees, Worth Abbey
## **Independent Auditor’s Report to the members of Worth Abbey Opinion**
We have audited the financial statements of Worth Abbey (the “charitable company”) and its subsidiaries (the “group”) for the year ended 31 August 2022 which comprise Consolidated statement of financial activities, the Consolidated balance sheet, the Company balance sheet, the Consolidated statement of cash flows and the related note to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
- give a true and fair view of the state of the group’s and the charitable company’s affairs as at 31 August 2022 and of the group’s incoming resources and application of resources, including its 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 trustee's 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 charitable 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.
## **Independent Auditor’s Report to the members of Worth Abbey**
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 trustees are responsible for the other information contained within the annual report. The other information comprises the information included in the annual report, 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.
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 this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
## **Opinions on other matters prescribed by the Companies Act 2006**
In our opinion based on the work undertaken in the course of our audit
- the information given in the trustees’ report, which includes the trustees’ report and the strategic report prepared for the purposes of company law, for the financial year for which the financial statements are prepared is consistent with the financial statements; and
## **Matters on which we are required to report by exception**
In light of the knowledge and understanding of the charitable company and their 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:
- the parent company has not kept adequate accounting records, or returns adequate for our audit have not been received from branches not visited by us; or
- the 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
## **Independent Auditor’s Report to the members of Worth Abbey**
- we have not received all the information and explanations we require for our audit.
## **Responsibilities of trustees**
As explained more fully in the trustees’ responsibilities statement set out on page 19, 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 charitable 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 charitable company or to cease operations, or have no realistic alternative but to do so.
## **Auditor’s responsibilities for the audit of the financial statements**
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:
We obtained an understanding of the legal and regulatory frameworks within which the company operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Companies Act 2006 and Charities Act 2011.
We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be the override of controls by management. Our audit procedures to respond to these risks included:
- enquiries of management about their own identification and assessment of the risks of irregularities;
## **Independent Auditor’s Report to the members of Worth Abbey**
- reviewing board minutes and making enquiries of management regarding any non-compliance with laws and regulations and fraud;
- reviewing the revenue, supplier payments and payroll systems for significant deficiencies or susceptibility to fraud;
- challenging assumptions and judgements made by management in their significant accounting estimates and judgements; and
- reviewing journal entries, in particular any journal entries posted with unusual account combinations.
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. We are not responsible for preventing noncompliance and cannot be expected to detect non-compliance with all laws and regulations.
These inherent limitations are particularly significant in the case of misstatement resulting from fraud as this may involve sophisticated schemes designed to avoid detection, including deliberate failure to record transactions, collusion or the provision of intentional misrepresentations. A further description of our responsibilities for the audit of the financial statements is available 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.
Ian Weekes
Senior Statutory Auditor
For and on behalf of
## **Crowe U.K. LLP**
Statutory Auditor
## **Riverside House**
## **Independent Auditor’s Report to the members of Worth Abbey**
## **40-46 High Street**
## **Maidstone**
## **Kent**
## **ME14 1JH**
**----- Start of picture text -----**
Consolidated Statement of Financial Activities including an Income
& Expenditure Account for the year ended 31 August 2022
General Designat Restrict Total Tota l
**----- End of picture text -----**
||~~**General**~~|~~**Designat**~~|~~**Restrict**~~|~~**Total**~~|~~_Tota_~~_l_|
|---|---|---|---|---|---|
|Note
s|**Funds (£)**|**ed**
**Funds (£)**|**ed**
**Funds**
**(£)**|**2022 (£)**|_2021 (£)_|
|**INCOMING**
**RESOURCES**||||||
|**Voluntary income**
Donations, gifts &
legacies
**Charitable activities**
Advancement of religion
Advancement of
education
4
Other charitable
activities
**Activities for raising**
**funds**
Investment income
5a
Courses and lettings
Other income
5b
**TOTAL INCOMING**
**RESOURCES**|167,001
154,672
17,162,154
160,665
83,597
414,788
476,756
18,619,633|-
5,854
-
-
-
86,406
92,260|227,820
-
-
25,602
-
11,518
264,940|394,821
160,526
17,162,15
4
160,665
109,199
414,788
574,680
18,976,83
3|_337,771_
_224,648_
_14,394,6_
_94_
_-_
_128,576_
_115,648_
_323,752_
_15,525,0_
_89_|
|**RESOURCES**
**EXPENDED**||||||
|**Cost of raising funds**
Investment
management fees
Courses and lettings
Other costs
**Net incoming**
**resources available**
**for charitable**
**application**
**Charitable**
**expenditure:**
Advancement of religion
6b
Advancement of
education
6b
Outreach Peru
6b
Other charitable
activities
6b
**TOTAL RESOURCES**
**EXPENDED**
**Net incoming**
**resources**
**before transfers and**
**revaluations**
Transfers between funds
15
**Net incoming**
**resources**
**before revaluations**
Other recognised gains/|13,356
453,643
522,450
989,449
17,630,184
986,366
15,227,115
-
82,644
16,296,125
1,334,059
(1,234,692)
99,367
176,932|-
-
-
-
92,260
48,317
140,026
-
-
188,343
(96,083)
1,250,982
1,154,899
-|13,806
-
-
13,806
251,134
15,774
158,976
302,337
5,040
482,127
(230,993
)
(16,290)
(247,283
)
-|27,162
453,643
522,450
1,003,255
17,973,57
8
1,050,457
15,526,11
7
302,337
87,684
16,966,59
5
1,006,983
-
1,006,983
176,932|_34,234_
_107,307_
_445,036_
_596,577_
_14,928,5_
_12_
_1,160,54_
_9_
_13,750,1_
_74_
_207,860_
_2,040_
_15,120,6_
_23_
_(192,111_
_)_
_-_
_(192,111_
_)_
_-_|
## **Consolidated Statement of Financial Activities including an Income & Expenditure Account for the year ended 31 August 2022**
**----- Start of picture text -----**
(losses)
**----- End of picture text -----**
|~~(losses)~~|||||||
|---|---|---|---|---|---|---|
|Realised gain/(loss) on
investment assets
**NET INCOME/**
**(EXPENDITURE)**
**FOR THE YEAR**
**Unrealised gain/(loss)**
**on investments**
**NET MOVEMENT IN**
**FUNDS INCLUDING**
**NET INCOME**
**FOR THE YEAR**
Reserves at 1
September
15,16,
**RESERVES AT 31**
**AUGUST**
15,16||-
276,299
(224,727)
51,572|-
1,154,899
-
1,154,899|91,961
(155,322
)
(152,336
)
(307,658
)|91,961
1,275,876
(377,063)
898,813|_(77,047)_
_(269,158_
_)_
_644,901_
_375,743_|
|||19,256,673
**19,308,24**
**5**|1,640,951
**2,795,85**
**0**|8,290,49
7
**7,982,8**
**39**|29,188,12
1
**30,086,9**
**34**|_28,812,3_
_78_
**_29,188,_**
**_121_**|
**The notes on pages 27 to 53 form part of these financial**
## **statements.**
**Consolidated Balance Sheet for the year ended 31 August 2022**
|Notes
**FIXED ASSETS**
Tangible fxed assets
7
Investments
8a
**CURRENT ASSETS**
Stock
10
Debtors
11
Cash at bank and in hand
**CREDITORS:**amounts falling due within
one year
12
**NET CURRENT**
**(LIABILITIES)/ASSETS**
**TOTAL ASSETS LESS CURRENT**
**LIABILITIES**
**CREDITORS:**amounts falling due after
more than one year
13
**TOTAL NET ASSETS**
**FUNDS**
Restricted funds
15
Designated funds
15
General funds
15
**TOTAL FUNDS**
16a|**2022**
**(£)**
**32,571,330**
**4,855,420**
**37,426,750**
**204,778**
**983,061**
**4,675,171**
**5,863,010**
**(7,249,893**
**)**
**(1,386,883**
**)**
**36,039,867**
**(5,952,933**
**)**
**30,086,934**
**7,982,839**
**2,795,850**
**19,308,245**
**30,086,934**|_2021_
_(£)_
_30,626,759_
_5,240,516_|
|---|---|---|
|||_35,867,275_
_132,207_
_519,973_
_6,009,652_|
|||_6,661,832_
_(6,183,934)_
_477,898_
_36,345,173_
_(7,157,052)_|
|||_29,188,121_|
|||_8,290,497_
_1,640,951_
_19,256,673_|
|||_29,188,121_|
The financial statements were approved and authorised by the Trustees on 14 December 2022, and signed on their behalf and authorised for issue by:
## **The Right Reverend John Douglas Barrett Fludder**
Trustee
Trustee
**The Reverend P V**
The notes on pages 28 to 54 form part of these financial statements.
## **Charity Balance Sheet for the year ended 31 August 2022**
**----- Start of picture text -----**
Notes 2022 2021
(£) (£)
FIXED ASSETS
7 32,011,943 30,144,971
Tangible fixed assets
Investmen
8b 3,958,955 4,499,088
ts
Investments in subsidiaries 9 1,100 1,100
35,971,998 34,645,159
CURRENT ASSETS
Stock 10 1,864 2,042
Debtors 11 960,774 707,848
Cash at bank and in hand 199,722 3,309,614
1,162,360 4,019,504
CREDITORS: amounts falling due within (7,039,558
12 (7,173,160)
one year )
NET CURRENT ASSETS/ (5,877,198
(3,151,656)
(LIABILITIES) )
TOTAL ASSETS LESS CURRENT
30,094,800 31,491,503
LIABILITIES
CREDITORS: amounts falling due after (3,447,435
13 (4,316,184)
more than one year )
TOTAL NET ASSETS 26,647,365 27,175,319
FUNDS
Restricted funds 15 6,923,357 7,309,188
Designated funds 15 917,629 649,218
General funds 15 18,806,379 19,216,913
TOTAL FUNDS 16b 26,647,365 27,175,319
**----- End of picture text -----**
The company’s net movement in funds for the year was a decrease of £527,954 (2021: £223,540 decrease).
The notes on pages 27 to 53 form part of these financial statements.
The financial statements were approved by the Trustees on 14 December 2022 and signed and authorised for issue on their behalf by:
**The Right Reverend John Douglas Barrett Fludder**
**The Reverend P V**
Trustee Trustee
**Consolidated Cash Flow Statement for the year ended 31 August 2022**
**----- Start of picture text -----**
Notes 2022 2021
(£) (£)
RECONCILIATION OF OPERATING
RESULT TO NET CASH INFLOW FROM
OPERATING ACTIVITIES
Changes in resources before transfers and
1,275,876 (269,158)
revaluation
Returns on investments and the servicing of 17a
(6,215) (70,400)
finance
-
Disposal of fixed assets (5,281)
Currency translation gain and investment
(67,387)) 97,084
fees
1,196,993 (242,474)
Depreciation 1,039,811 821,297
Decrease in stock (72,571) 16,524
(Increase) in debtors (463,088) 80,922
Increase/(decrease) in creditors 1,222,283 (216,631)
NET CASH INFLOW FROM OPERATING
2,923,428 459,638
ACTIVITIES
CASH FLOW STATEMENT
Notes 2022 2021
(£) (£)
Cash flows from operating
activities
Net cash inflow from operating
2,923,428 459,638
activities
Returns on investments and the servicing of
17a 6,215 70,400
finance
Payments to acquire tangible fixed assets (2,988,850) (5,839,166)
-
Receipts from sale of fixed assets 9,750
Payments to acquire investments 8a (200,000) -
Draw downs on investments 17b 275,418 165,469
Net cash (outflow)/inflow from investing
(2,899,467) (5,603,297)
activities
Net cash (outflow)/inflow from
17c (1,360,442) 2,518,388
financing activities
Increase in cash in the year (1,334,481) (2,625,271)
Cash and cash equivalents brought forward 6,009,652 8,634,923
Cash and cash equivalents carried forward 4,675,171 6,009,652
**----- End of picture text -----**
The notes on pages 27 to 53 form part of these financial statements.
## **Notes to the Financial Statements**
## ~~**1. CHARITY INFORMATION**~~
Worth Abbey is a company limited by guarantee incorporated in England and Wales (company registration number 4475556 and charity number 1093913). The principal activities of the Group are the advancement of the Roman Catholic religion and the advancement of education through the running of an independent school. Its registered address is at: Paddockhurst Road, Turners Hill, Crawley, West Sussex, RH10 4SB.
## **2. ACCOUNTING POLICIES**
## **a) Basis of preparation of financial statements**
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 (FRS 102) (effective 1 January 2015) – (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006. The charity has adjusted the formats from those prescribed by the Companies Act 2006 to include headings that are relevant to its activities, to enable it to show a true and fair view.
Worth Abbey meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.
The consolidated financial statements consolidate the accounts of the charity and its subsidiary undertakings at 31 August 2022. All transactions and balances relate to external transactions only. Under the provisions of the Companies Act 2006 Section 408, the Trustees have taken advantage of the dispensation not to publish the Statement of Financial Activities including an Income and Expenditure Account for Worth Abbey.
## **b) Going Concern**
With the decline in the COVID-19 pandemic, the trustees no longer anticipate that it will impact significantly on Group finances. Going forward, however, the Group is facing the impact of rising costs, staff shortages and the effects of the war in Ukraine. The Bank of England is forecasting the longest recession on record.
On the other hand, pupil applications to the School remain strong. The School budgeted on opening with 650 pupils in September and the actual pupil number were 660 at September 2022. The school has forecast 660 pupils in September 2023 and is expecting surpluses in both years
When considering going concern, the trustees consider a base case scenario, a reasonable worst-case scenario and a range of mitigating actions that are available to them. Cash is managed through a 12-month rolling forecast for the whole Worth Abbey group: Worth Abbey, Worth School, Worth Abbey Projects Ltd and Worth Abbey Construction Ltd. The
## **Notes to the Financial Statements**
~~Trustees receive regular reports of these forecasts.~~
The group operating forecasts, together with cash flow forecasts, indicate that the group can expect to meet all its anticipated payments from its anticipated inflows and existing borrowing facilities for the next 12 months even in the reasonable down side scenario. As a result of these factors the Trustees consider that the group remains a going concern.
## **c) Company Status**
The Charity is a company limited by guarantee. The members of the company are the Trustees (as set out on page 14) and such other persons as shall from time to time be members of the Chapter. In the event of the Charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the charity.
## **d) Fund accounting**
General funds are available to spend on activities that further any of the purposes of the Charity.
Designated funds are unrestricted funds which the trustees have decided at their discretion to set aside for a specific purpose.
Restricted funds are funds subject to specific restrictive conditions imposed by donors or by the purpose of the appeal. The purpose and use of the restricted funds are set out in Note 15 to the financial statements.
All income and expenditure are shown in the Statement of Financial Activities.
## **e) Income and liability recognition**
Fees receivable and charges for services and use of premises are accounted for in the period in which the service is provided. Fees receivable are stated after deducting scholarships, bursaries and other allowances. Interest is accounted for on a receivable basis and dividends on a received basis.
Realised gains are gains resulting from the sale of investments. Unrealised gains represent changes in market value on investments still held at the year end.
Liabilities are recognised when an obligation arises to transfer economic benefits as a result of past transactions or events.
## **f) Donations and legacies**
Donations and legacies received in cash are accounted for when they are received. In the case of assets received, they are accounted for when full legal title has passed to the Group.
## **g) Gifts in kind**
The values attributed to gifts in kind are either the amounts actually realised or an estimate of their value. They are recognised as incoming resources when received.
## **Notes to the Financial Statements**
## ~~**h) Resources expended**~~
All resources expended are accounted for on an accruals basis and are detailed under the following headings:
- **Costs of generating funds** : this includes non-charitable trading
- activities together with their related support costs.
- **Charitable activities** : this includes that expenditure incurred
- directly in connection with the objects of the charity and includes the cost of services, management and support costs.
- **Governance costs** : these are costs associated with constitutional
- and statutory requirements.
Expenditure is summarised under functional headings either on a direct cost basis or, for overhead costs, apportioned according to management estimates of expenditure incurred. The irrecoverable element of VAT is included with the item of expense to which it relates.
## **i) Fixed assets**
The Abbey’s land and buildings are carried at historical cost (including the cost of subsequent additions), less depreciation charged to date. Recapitalisation of buildings begins when planning permission is granted and depreciated from when it first begins to be used. General repairs and maintenance expenditure are written off in the year to which it relates.
Where the Trustees recognise that there has been a significant fall in the carrying value of one of their assets this is treated as an impairment and written off to the Statement of Financial Activities.
Woodlands are professionally valued periodically in accordance with FRS102 and no depreciation is charged. The last valuation was in August 2022.
Assets under construction are accounted for at cost, based on the value of direct or other costs incurred at the year end date. They are not depreciated until the accounting period in which they are brought into use. Interest of £19,004 has been capitalised during the year
(note 7).
When a tangible fixed asset is funded through an appeal or by way of a grant or donation, the accounting treatment of the asset acquired will depend on the circumstances of each case. In deciding whether the asset is categorised as restricted or unrestricted, Trustees should consider the terms of the gift:
- require the charity to hold the tangible asset acquired for an on-
- going basis for a specific purpose;
- are met once the specified asset is acquired, so allowing the
- charity to use the asset acquired on an unrestricted basis for any charitable purpose.
**j) Capitalisation and depreciation**
## **Notes to the Financial Statements**
~~Items costing less than £2,500 are written of as an expense as acquired.~~
Depreciation is provided on all tangible fixed assets at rates calculated to write off the cost on a straight line basis over their expected useful economic life as follows:
Motor vehicles 4 years Computer equipment 3 - 4 years Plant and machinery between 2 and 10 years Fixtures and fittings 5 years Freehold property 50 years
## **k) Investment assets**
Investments are stated at market value other than works of art which are held at cost. Market value is taken to be the middle market price ruling at the balance sheet date.
## **l) Stock**
Stocks are valued at the lower of cost and net realisable value. Livestock are measured at their fair value less sale costs. The fair value of livestock is determined based on market prices of livestock of similar age, breed and genetic merit.
## **m) Debtors**
Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due. Known bad debts are written off and a provision is made for any considered to be doubtful.
## **n) Cash at bank and in hand**
Cash at bank and in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.
## **o) Liabilities and provisions**
Liabilities 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. Liabilities are recognised at the amount that the charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide. Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised within interest payable and similar charges.
Fees received in advance are carried forward for credit in the period to
## **Notes to the Financial Statements**
~~which they relate.~~
## **p) Financial instruments**
The charity mainly enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in non-puttable ordinary shares.
## **q) Foreign currencies**
Transactions in foreign currencies are recorded at the rate of exchange at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the rates of exchange prevailing at the balance sheet date and any gain or loss arising from a change in exchange rates is included as a gain or loss on investment assets in the Statement of Financial Activities.
## **r) Pensions**
The pension costs charged in the financial statements represent the contributions payable by the charity and group during the year.
Worth School contributes to the Teachers’ Pension Defined Benefits Scheme (“TPS”). The TPS is an unfunded scheme and contributions are calculated so as to spread the cost of pensions over employees’ working lives with the school in such a way that the pension cost is a substantially level percentage of current and future pensionable payroll. The
contributions are determined by the Government Actuary on the basis of quinquennial valuations using a prospective benefit method. As stated in Note 24, the TPS is a multi-employer scheme and the school is unable to identify its share of the underlying assets and liabilities of the scheme on a consistent and reasonable basis. The TPS is therefore treated as a defined contribution scheme and the contributions recognised as they are paid each year.
The Abbey and School also contribute to a Group Personal Pension Plan for non-teaching staff who have more than 3 months service, at 8% of annual basic pay, and these costs are recognised on an accrual’s basis.
## **s) Operating leases**
The rentals payable under operating leases are charged in the Statement of Financial Activities on a straight-line basis over the lease term.
## **t) Leasing and hire purchase**
Assets obtained under hire purchase contracts and finance leases are capitalised as tangible fixed assets. Assets acquired by finance lease are depreciated over the shorter of the lease term and their useful lives.
Assets acquired by hire purchase are depreciated over their useful lives.
Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the charity. Obligations under such agreements are included in creditors net of the finance charge allocated to
## **Notes to the Financial Statements**
~~future periods. The fnance element of the rental payment is charged to~~ the Statement of Financial Activities so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.
## **u) Acceptance Deposits**
When a pupil is accepted into the School, parents are required to pay an Acceptance Deposit which is refunded, without interest, after the pupil leaves the School. Acceptance deposits due for return in more than one year are treated as part of net debt.
## **v) Fee prepayments**
Fee prepayments are included within creditors and aged according to the expected year of release assuming that the pupil remains in the School.
## **w) Grants receivable**
Grants are included in the Statement of Financial Activities on a receivable basis. The balance of income received for a specific purpose but not expended during the period is shown in the relevant funds on the balance sheet. Where income is received in advance of entitlement of receipt its recognition is deferred and included in creditors as deferred income. Where entitlement occurs before income is received, the income is accrued.
## **x) Financial assets at fair value through profit and loss**
The charity has an interest rate cap arrangement with its bank. This is not a basic financial instrument. This arrangement was initially recognised at fair value on the date the contract was entered into and has subsequently been re-measured at its fair value. Changes in the fair value are recognised in profit or loss in finance costs or income as appropriate.
## **y) Critical accounting estimates and areas of judgement**
The charity makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.
- i. **Tangible fixed assets** : The Trustees annually assess the residual value of these assets, that they are still in use and their expected useful life based on experience.
- ii. **Recoverability of trade debtors** : The Trustees annually assess whether a bad debt provision is required for any bad or doubtful debtor balances.
- iii. **Stock provisions** : The Trustees regularly assess the age and quality of stock and will make necessary provisions based on the net realisable value of the stock held.
- iv. **Woodlands revaluation** : The estimation of uncertainty involves the use of judgement employed by the Trustees, however, the Trustees
## **Notes to the Financial Statements**
- ~~have relied on and independent valuer.~~
- v. **Interest rate swap** : The Trustees have an interest rate swap agreement on variable rate loans which exchanges payments on periodic interest rate payments
**----- Start of picture text -----**
Notes to the Financial Statements
3. INCOME & EXPENDITURE YEAR ENDED 31 AUGUST 2021
Note General Designat Restricte Total
s Funds (£) ed Funds d 2021 (£)
(£) Funds (£)
INCOMING RESOURCES
Voluntary income
-
Donations, gifts & legacies 250,327 87,444 337,771
Charitable activities
- -
Advancement of religion 224,648 224,648
Advancement of education 4 14,394,69 - - 14,394,6
4 94
Activities for raising
funds
Investment income 5 80,069 - 48,507 128,576
- -
Courses and lettings 115,648 115,648
Other income 281,180 40,215 2,357 323,752
TOTAL INCOMING 15,346,56 40,215 138,308 15,525,0
RESOURCES 6 89
RESOURCES EXPENDED
Cost of raising funds
-
Investment management 13,988 20,246 34,324
fees
- -
Courses and lettings 107,307 107,307
Other costs 455,036 - - 455,036
-
576,331 20,246 596,577
Net incoming resources
14,770,23 14,928,5
available for charitable 40,215 118,062
5 12
application
Charitable expenditure:
Advancement of religion 6b 1,103,138 57,080 331 1,160,54
9
Advancement of education 6b 13,696,56 26,180 27,429 13,750,1
5 74
Outreach Peru 6b - - 207,860 207,860
Other charitable activities 6b - - 2,040 2,040
TOTAL RESOURCES 14,799,70 83,260 237,660 15,120,6
EXPENDED 3 23
Net incoming resources (29,468) (43,045) (119,598) (192,111
)
before transfers and
revaluations
Transfers between funds 15,16 (634,500) 644,864 (10,364) -
Net incoming resources
before revaluations (663,968) 601,819 (129,962) (192,111
)
Realised gain/(loss) on
investment assets (143) - (76,904) (77,047)
NET INCOME/(LOSS) FOR (664,111) 601,819 (206,866) (269,158
THE YEAR )
-
Unrealised gain on 407,001 237,900 644,901
investment assets:
**----- End of picture text -----**
## **Notes to the Financial Statements**
|**NET MOVEMENT IN**||||||
|---|---|---|---|---|---|
|**FUNDS INCLUDING NET**||(257,110)|601,819|31,034|375,743|
|**INCOME FOR THE YEAR**||||||
||15,16,1|19,513,78|1,039,132|8,259,463|28,812,3|
|Reserves at 1 September|7|3|||78|
|**RESERVES AT 31 AUGUST**|15,16,1|**19,256,6**|**1,640,95**|**8,290,49**|**29,188,**|
||7|**73**|**1**|**7**|**121**|
**----- Start of picture text -----**
Notes to the Financial Statements
4. ADVANCEMENT OF EDUCATION
2022 (£) 2021(£)
Fee income for the year 17,992,798 16,722,144
Release of fee prepayments 708,459 659,102
Extras 877,043 572,188
Entrance fees 72,589 61,532
19,650,889 18,014,966
LESS:
Allowances and remissions:
Scholarships granted 1,459,737 1,395,422
Bursaries and other remissions 1,028,998 2,224,850
2,488,735 3,620,272
17,162,154 14,394,694
5A. INVESTMENT INCOME
2022 (£) 2021 (£)
Investment income from listed securities – general
83,597 80,069
funds
Investment income from listed securities –
-
21,410
restricted funds
Interest receivable 25,602 27,097
109,199 128,576
5B. OTHER INCOME
2022 (£) 2021(£)
Furlough grants received 323 234,620
Government grants 137,731 22,591
Rental Income 196,344 6,835
Membership fees 80,980 17,314
Domestic services 61,464 2,723
Other income 97,838 39,669
574,680 323,752
6. RESOURCES EXPENDED
2022 (£) 2021 (£)
Employment costs include:
Wages and salaries 7,815,050 7,684,648
Social security costs 796,351 740,709
Pension contributions 1,155,498 1,161,942
9,766,899 9,587,299
The average number of employees in the year was: 2022 2021
Number Number
Teaching & teaching support 112 108
Welfare 60 53
Premises 36 41
Management, administration & fundraising 70 68
278 270
**----- End of picture text -----**
## **Notes to the Financial Statements**
||The number of employees whose emoluments exceeded
£60,000 was:
**2022**
**Number**
_2021_
_Number_
£60,000 -
£70,000
**21**
_21_
£70,001 -
£80,000
**9**
_9_
£80,001 -
£90,000
**2**
_3_
£90,001 -
£100,000
**2**
_2_
£100,00
1
-
£110,000
**2**
_-_
£110,00
1
-
£120,000
**1**
_3_
£120,00
1
-
£130,000
_1_
£130,00
1
-
£140,000
_-_
£140,00
1
-
£150,000
_-_
£170,00
1
-
£180,000
**1**
_-_
£200,00
1
-
£210,000
_1_||
|---|---|---|
Thirty-four of the above employees were members of defined benefit pension schemes. Total pension contributions payable for these employees amounted to £493,894 (2021: 34 employees, £503,498) in the year.
Four (2021: Six) of the above were members of a defined contribution pension scheme. Total pension contributions payable for these employees amounted to £28,092 (2021: £40,417) in the year.
The key management personnel received total remuneration for the year of £409,219 (2021: £636,356).
## **6b. EXPENDITURE – Analysis of Total Resources Expended**
**----- Start of picture text -----**
Staf Depreciat Total
Other 2021
costs ion 2022
(£) (£)
(£) (£) (£)
Costs of generating
funds
- 107,30
Courses and lettings 195,877 257,766 453,643
7
455,03
Other 281,983 215,085 25,382 522,450
6
Investment
Management Fees - 27,162 - 27,162 34,234
1,003,25 596,57
477,860 500,013 25,382 5 7
Charitable activities
Advancement of 1,160,5
212,793 641,663 196,001 1,050,457
religion 49
Advancement of 9,355,87 15,526,11 13,750,1
5,352,843 817,397
education 7 7 74
Outreach Peru 847 301,490 - 302,337 207,86
0
Other charitable activities - 87,684 - 87,684 2,040
9,569,51 6,383,86 1,013,398 16,966,5 15,120,6
**----- End of picture text -----**
Notes to the Financial Statements
95
23
## **Notes to the Financial Statements PRIOR YEAR EXPENDITURE – Analysis of Total Resources Expended**
||**Staf costs**
**(£)**|**Other (£)**|**Depreciatio**
**n (£)**|**Total 2021**
**(£)**|
|---|---|---|---|---|
|**Costs of generating**|||||
|**funds**|||||
|Courses and lettings|76,033|31,274|-|107,307|
|Other|275,157|148,197|31,682|455,036|
|Investment
Management Fees|-|34,234|-|34,234|
||**351,190**|**213,705**|**31,682**|**596,577**|
|**Charitable activities**|||||
|Advancement of religion|430,778|553,112|176,659|1,160,549|
|Advancement of
education|8,938,446|4,198,772|612,956|13,750,174|
|Outreach Peru|9,996|197,84|-|207,860|
|Other charitable
activities|-|2,040|-|2,040|
||**9,379,220**|**4,951,788**|**789,615**|**15,120,623**|
**----- Start of picture text -----**
6c. EXPENDITURE – Other disclosures
2022(£) 2021 (£)
Consolidated costs include:
Auditors’ remuneration:
For audit 38,132 33,300
Interest payable 102,984 58,176
Operating leases – other 134,094 266,084
Depreciation of tangible fixed assets:
owned by the charitable company and its subsidiaries 1,039,81
821,297
1
-
(Profit)/loss on disposal of fixed assets (5,281)
Foreign exchange (gains) and losses (64,799) 111,281
Costs of an unusual or exceptional nature:
Future relationship costs 60 22,783
10 Year plan 108,572 -
108,632 22,783
**----- End of picture text -----**
**Notes to the Financial Statements**
## **7. TANGIBLE FIXED ASSETS**
## **CONSOLIDATED**
||**CONSOLIDATED**|||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
||**Cost**
At 1 September 2021
Additions
Transfers
Disposals
At 31 August 2022
**Depreciation**
At 1 September 2021
Charge for the year
Disposals
At 31 August 2022
**Net book value**
**At 31 August 2022**
_At 1 September 2021_||**Freehold**
**Property**
**(£)**
34,940,353
-
6,033,011
-
40,973,364
10,863,582
838,748
-
11,702,330
**29,271,03**
**4**
24,076,770|**Motor**
**Vehicles**
**(£)**
260,543
23,050
-
(5,500)
278,093
229,562
20,752
(1,031)
249,283
**28,811**
30,981|**Plant and**
**Machinery**
**(£)**
2,059,505
-
2,439,791
-
4,499,296
2,010,216
18,751
-
2,028,967
**2,470,329**
49,289|**Fixture**
**and**
**fttings**
**(£)**
499,397
-
247,661
-
747,058
141,296
125,341
-
266,637
**480,421**
358,101|**Computer**
**Equipment**
**(£)**
578,722
-
-
-
578,722
516,445
20,262
-
536,707
**42,015**
62,277|**Sports**
**Equipment**
**(£)**
114,615
-
-
-
114,615
81,231
15,957
-
97,188
**17,427**
33,384|**Assets**
**under**
**constructi**
**on**
**(£)**
6,015,956
2,965,800
(8,720,463)
-
261,293
-
-
-
-
**261,293**
6,015,956|**Total**
**(£)**
44,469,091
2,988,850
-
(5,500)||
|||||||||||47,452,441||
|||||||||||13,842,332
1,039,811
(1,031)||
|||||||||||14,881,112||
|||||||||||||
|||||||||||**32,571,330**||
|||||||||||30,626,759||
Assets under construction is for work in progress on the church roof and the library conversion to classrooms.
**Notes to the Financial Statements**
## **PRIOR YEAR CONSOLIDATED**
||**Freehold**
**Property**
**(£)**|**Motor**
**Vehicles**
**(£)**|**Plant and**
**Machiner**
**y**
**(£)**|**Fixtures**
**and**
**fttings**
**(£)**|**Computer**
**equipme**
**nt**
**(£)**|**Sports**
**equipmen**
**t**
**(£)**|**Assets**
**under**
**constructi**
**on**
**(£)**|**Total**
**(£)**|
|---|---|---|---|---|---|---|---|---|
|**Cost**|||||||||
|At 1 September
2020|34,867,76
2|255,043|2,039,497|279,967|518,415|114,615|554,625|38,629,92
4|
|Additions|72,591|5,500|30,793|205,981|60,307|-|5,474,780|5,849,952|
|Transfer from
subsidiary|-|-|(10,785)|-|-|-|-|(10,785)|
|Transfers|-|-|-|13,449|-|-|(13,449)|-|
|At 31 August 2021|34,940,35
3|260,043|2,059,505|499,397|578,722|114,615|6,015,956|44,469,09
1|
|**Depreciation**|||||||||
|At 1 September
2020|10,166,22
7|205,760|1,989,667|83,509|510,598|65,274|-|13,021,03
5|
|Charge for the year|697,355|23,802|20,549|57,787|5,847|15,957|-|821,297|
|Disposals|-|-|-|-|-|-|-|-|
|At 31 August 2021|10,863,58
2|229,562|2,010,216|141,296|516,445|81,231|-|13,842,33
2|
|**Net book value**|||||||||
|**At 31 August**
**2021**|**24,076,77**
**1**|**30,981**|**49,289**|**358,101**|**62,277**|**33,384**|**6015,956**|**30,626,75**
**9**|
|_At 1 September_
_2020_|24,701,53
5|49,283|49,830|196,458|7,817|49,341|554,625|25,608,88
9|
## **Notes to the Financial Statements** ~~**CHARITY**~~
||**Cost**
At 1 September
2021
Additions
Transfers
Disposals
At 31 August
2022
**Depreciation**
At 1 September
2021
Charge for the
year
Disposals
At 31 August
2022
**Net book value**
**At 31 August**
**2022**
_At 1 September_
_2021_||**Freehold**
**Property**
**(£)**
34,940,353
6,033,011
40,973,364
10,863,582
838,748
-
11,702,330
**29,271,03**
24,076,771|**Motor**
**Vehicle**
**s**
**(£)**
81,618
23,050
(5,500)
99,168
75,431
2,773
(1,031)
77,173
**21,995**
6,187|**Plant**
**and**
**machine**
**ry**
**(£)**
**Fixtures**
**and**
**fttings**
**(£)**
999,118
2,439,79
247,661
3,438,90
247,661
953,060
15,947
25,461
-
-
969,007
25,461
**2,469,9**
**0**~~**2**~~
**222,200**
46,058|**Assets**
**under**
**Construc**
**tion**
**(£)**
6,015,955
2,731,320
(8720,463
26,812
-
**26,812**
6,015,955|**Total**
**(£)**
42,037,04
2,754,370
(5,500)
44,785,91
11,892,07
882,929
(1,031)
12,773,97
**32,011,9**
**4**
30,144,97|**3**|
|---|---|---|---|---|---|---|---|---|
Assets under construction is for work in progress on the church roof.
|**Prior year**
**Cost**
At 1 September
2020
Additions
Disposals
At 31 August
2021
At 1 September
2020
Charge for the
year
Dispo
At 31 August
2021|**Freehold**
**Property**
**(£)**
34,867,762
72,591
34,940,353
10,166,277
697,323
10,863,582|**Motor**
**Vehicles**
**(£)**
76,118
5,500
-
81,618
72,109
3,322
-
75,431|**Plant and**
**Machinery**
**(£)**
968,325
30,793
-
999,118
934,814
18,246
-
953,060|**Assets**
**under**
**construct**
**ion**
**(£)**
541,175
5,747,780
6,015,955|**Total**
**(£)**
36,453,380
5,583,664|
|---|---|---|---|---|---|
||||||42,037,044|
||||||11,173,150
718,923|
||||||11,892,073|
|||||||
## **Notes to the Financial Statements**
**----- Start of picture text -----**
At 31 August 24,076,77 6,015,95 30,144,97
2021 6,187 46,058 1
At 1 September
24,701,535 4,009 33,511 541,175 25,280,230
2020
**----- End of picture text -----**
## **Notes to the Financial Statements** ~~**8A. INVESTMENTS CONSOLIDATED**~~
**----- Start of picture text -----**
Listed Investments
Woodlan General Restricte
Works ds & d Total
of Art Designat
(£) (£) ed (£) (£) (£)
Market Market Market
value value value
At 1 September 2021 41,000 564,191 2,956,450 1,678,875 5,240,516
Additions to
- - -
200,000 200,000
investments
- -
Management Fees (13,356) (11,220) (24,576)
Foreign exchange - - -
91,961 91,961
Gains/(losses)
Draw down on
- - -
(275,418) (275,418)
investments
Unrealised investment
- (64,180) (160,547) (152,336) (377,063)
Gains/(losses)
Market value at
31 August 2021 2,782,54 1,531,86 4,855,42
41,000 500,011 7 2 0
Historical cost to the 1,556,27 1,025,37 2,690,11
charity 41,000 67,463 0 8 1
PRIOR YEAR INVESTMENTS CONSOLIDATED
Listed Investments
Woodland General & Restrict
Works of s Designate ed Total
Art d
(£) (£) (£) (£) (£)
Market Market Market
value value value
At 1 September 2020 2,563,43 1,689,53
41,000 564,191 4,858,167
7 9
Additions to
investments - - - - -
- -
Management Fees (13,988) (11,658) (25,646)
Foreign exchange - - -
(71,437) (71,437)
Gains/(losses)
Draw down on - - - (165,469
(165,469)
investments )
Unrealised
investment - - 407,001 237,900 644,901
Gains/(losses)
Market value at
31 August 2021 2,956,45 1,678,87 5,240,51
41,000 564,191 0 5 6
Historical cost to the
41,000 67,463 1,556,270 1,025,378 2,690,111
charity
**----- End of picture text -----**
Notes to the Financial Statements
## **Notes to the Financial Statements** ~~**8B. INVESTMENTS CHARITY**~~
**----- Start of picture text -----**
Listed Investments
Woodland General & Restrict
Works of s Designate ed Total
Art d
(£) (£) (£) (£) (£)
Market Market Market
value value value
2,956,45
At 1 September 2021 41,000 564,191 937,447 4,499,088
0
- -
Management Fees (13,356) (7,246) (20,602)
Foreign exchange - - -
91,961 91,961
Gains/(losses)
Draw down on - - - (275,418
(275,418)
investments )
Unrealised
investment - (64,180) (160,547 (111,347 (336,074)
) )
Gains/(losses)
Market value at
2,782,54 3,958,95
31 August 2022 41,000 500,011 635,397
7 5
PRIOR YEAR INVESTMENTS CHARITY
Listed Investments
Woodland General & Restricte
Works s Designate d Total
of Art d
(£) (£) (£) (£) (£)
Market Market Market
value value value
At 1 September 202 2,563,43
41,000 564,191 1,046,673 4,215,301
7
- -
Management Fees (13,988) (8,151) (22,139)
Foreign exchange - - -
(71,437) (71,437)
Gains/(losses)
Draw down on
- - -
(165,469) (165,469)
investments
Unrealised
investment - - 407,001 135,831 542,832
Gains/(losses)
Market value at
31 August 2021 2,956,45 4,499,08
41,000 564,191 0 937,447 8
9. INVESTMENT IN SUBSIDIARIES
Shares in Subsidiaries (£)
Cost 31 August 2022 (31 August 2021 £1,100) 1,100
**----- End of picture text -----**
## **Notes to the Financial Statements**
~~During the year, Worth Abbey was the sole member of Worth School, a~~ company limited by guarantee, whose total incoming resources were £17,844,617 (2021: £14,869,715).
The company also has the following subsidiary undertakings:
||Worth Abbey
Construction Ltd
(incorporated in
England)
Worth Abbey
Projects Ltd
(incorporated in
England)
Worth School
Lettings Ltd
(an indirect
subsidiary
incorporated in
England|**Class of**
**shares**
**held**
**% of**
**shares**
**held**
**Turnover**
**(£)**
**Nature of**
**business**
**Aggregate**
**of capital**
**and reserves**
**at 31 August**
**2021 (£)**
Ordinary
100%
4,452
Planning
and
building
contractor
s
1,000
Ordinary
100%
266,023
General
commerci
al
company
(174,137)
Ordinary
100%
414,788
Letting of
lands and
buildings
1||
|---|---|---|---|
Details of how the above activities relate to those of the charity are outlined in the Trustees Report. Separate financial statements have been produced for each of the above companies whose results have been incorporated into these consolidated financial statements.
## **10. STOCK**
**----- Start of picture text -----**
Charit Consolida
Charity
ted
2022 2021
2022 (£) 2021 (£)
(£)
Livestock 7,671
General stores 204,778 1,864 124,536 2,042
204,778 1,864 132,207 2,042
The difference between purchase price or production cost of stocks and their
replacement cost is not material.
11. DEBTORS
Consolida Consolid
Charity Charity
ted ated
2022 2021
2022 (£) 2021 (£)
(£)
**----- End of picture text -----**
## **Notes to the Financial Statements**
|School fees and extras less bad debt
provision
VAT
Other debtors
Amounts owed by group
undertakings
Financial instruments
Income|**121,815**
**196,856**
**176,932**
**487,458**
**983,061**|**636,356**
**176,932**
**147,481**
**960,774**|_161,262_
_148_
_-_
_55,720_
_101_
_673,48_
_9_
_302,843_
_34,258_
_519,973_
_707,84_
_8_|_161,262_
_148_
_-_
_55,720_
_101_
_673,48_
_9_
_302,843_
_34,258_
_519,973_
_707,84_
_8_|
|---|---|---|---|---|
|||||_707,84_
_8_|
Monies owed by Worth Abbey Construction are recoverable on demand and lent at commercial rates of interest.
Monies owed by Worth Abbey Projects are recoverable on demand and are interest free.
## **12. CREDITORS: amounts falling due within one year**
|Bank loans and overdraft
Fee prepayments (note 14)
Acceptance deposits (note 14)
School fees and extras received in
advance
Trade creditors
Amounts owed to Group
Undertakings
Other taxes and social security
costs
Clubs and societies
Other creditors
VAT
Accruals and deferred income|**Consolid**
**ated**
**Charity**_Consolidat_
_ed_
**2022**
**2022**
2021
**(£)**
(£)
**479,408**
**479,408**
_668,269_
**717,161**
_590,348_
**452,986**
_447,515_
**3,854,15**
_2,779,867_
**339,409**
**34,567**
_568,034_
**6,347,1**
**201,603**
**5,390**
_188,799_
**915**
_3,085_
**200,987**
_190,706_
**21,188**
**219**
_6,664_
**982,080**
**172,78**
_740,647_
**7,249,89**
**7,039,5**
_6,183,934_|_Charity_
2021
_(£)_
_668,269_
_45,121_
_6,426,8_
_10,980_
_21,876_|
|---|---|---|
|||_7,173,1_|
Included in consolidated other creditors are outstanding pension contributions of £136,398 (2021: £138,246).
Amounts owed to Worth Abbey School are interest free and repayable on demand
## **13. CREDITORS: amounts falling due after more than one year**
||**Consolid**
**ated**
**Charity**
**2021**
**2021**
**(£)**
Bank loan and overdraft
**3,447,43**
**5**
**3,447,4**
**35**
Fee prepayments (note 14)
**426,532**
**-**
Acceptance deposits
**2,078,96**
**6**
**-**|_Consolidat_
_ed_
_2021_
(£)
_4,316,184_
_453,599_
_2,387,269_|_Charity_
_2021_
(£)
_4,316,1_
_84_
_-_
_-_||
|---|---|---|---|---|
||||||
**Notes to the Financial Statements**
**----- Start of picture text -----**
5,952,93 3,447,4 4,316,1
7,157,052
3 35 84
**----- End of picture text -----**
The Abbey had an overdraft facility at year end of £1.5 million which bears interest at base rate plus 2% and is subject to annual review. The Abbey was not utilising this facility at year end.
The Abbey also has three long term loans which are under monthly repayments. One loan bears interest at base rate plus 1.5%. An additional £500k was paid against this loan in August 2022 and the loan was settled in October 2022. The outstanding balance at year end was £27k. The second loan bears interest at base rate plus 1.95% and is due to be repaid in March 2030. The outstanding balance on this loan at year end was £1.8 million. The third loan bears interest at base rate plus 2.5% and is due to be repaid in November 2025. The outstanding balance on this loan at year end was £2 million.
## **Notes to the Financial Statements** ~~**14. PARENTS’ DEPOSITS AND FEE PREPAYMENTS**~~
||Fee prepayments
Less: amount to be released within one year
On account of fees falling due after more than one year
Acceptance deposits
Less amounts due to be repaid in September
**Acceptance deposits and fee prepayments falling**
**due after more than one year at 31 August**|**2022**
**(£)**
1,143,693
(717,161)
426,532
2,531,952
(452,986)
2,505,498|_2021_
_(£)_
_1,043,947_
_(590,348)_||
|---|---|---|---|---|
||||_453,599_
_2,834,784_
_(447,515)_||
||||_2,840,868_||
||||||
Fee prepayments on account of fees falling due after more than one year are aged on the assumption that the pupil remains in the School until the prepayment is exhausted.
## **15. RESTRICTED & DESIGNATED FUNDS**
The restricted & designated funds of the Group and the unexpended balances are as follows:
||At 1
Septemb
er 2021
(£)
**Restricted Funds**
Bursary Fund
955,270
Annual Fund
13,889
Sports Facilities
12,151
Outreach Peru
962,883
6thForm Centre
6,323,73
0
Other funds
22,574
**Total**
**8,290,4**
**97**
**Designated Funds**
Hardship fund
123,483
Maintenance
funds
723,399
Worth Society
109,565
Friends
of
Worth
35,286
Abbey funds
633,023
Brighton
project
15,889
Other funds
308
**Total**
**1,640,9**
**50**|**Incomin**
**g**
**resourc**
**es**
**(£)**
133,854
80,337
-
14,972
12,063
23,714
**264,940**
-
-
60,845
25,561
5,854
-
-
**92,260**|**Resour**
**ces**
**expend**
**ed**
**(£)**
(3,972)
(74,768)
-
(309,58
3)
(86,795)
(20,814)
**(495,93**
**2)**
-
(50,340)
(46,415)
(43,271)
(3,361)
(44,010)
(947)
**(188,34**
**3)**|**Investme**
**nt and**
**foreign**
**currency**
**gain/**
**(loss) (£)**
(40,989)
-
-
(19,387)
-
-
**(60,376)**
-
-
-
-
-
-
-
**-**|**Transfe**
**rs**
**(£)**
(12,540)
(3,750)
-
-
-
-
**(16,290**
**)**
(123,48
3)
1,211,00
0
2,994
5,595
91,805
55,644
7,426
**1,250,9**
**82**|**At 31**
**August**
**2022**
**(£)**
1,031,62
3
15,708
12,151
648,885
6,248,99
8
25,473||
|---|---|---|---|---|---|---|---|
|||||||**7,982,8**
**39**||
|||||||-
1,884,05
9
126,989
23,171
727,321
27,523
6,787||
|||||||**2,795,8**
**50**||
Notes to the Financial Statements
## **Notes to the Financial Statements**
~~The restricted and designated funds of the charity and the unexpended~~ balances are as follows:
||**Restricted**
**funds**
Outreach
Peru
6thForm
Centre
Other funds
**Total**
**Designated**
**Funds**
Abbey fund
Backlog
maintenance
Brighton
project
Other funds
**Charity**|At 1
Septemb
er 2021
(£)
962,883
6,323,73
0
22,574
**7,309,18**
**7**
633,023
-
15,889
306
**649,218**|**Incomin**
**g**
**resource**
**s**
**(£)**
14,972
12,063
23,714
**50,749**
5,854
-
-
-
**5,854**|**Resourc**
**es**
**expende**
**d**
**(£)**
(309,583)
(86,795)
(20,814)
**(417,192**
**)**
(3,361)
-
(44,010)
(947)
**(48,318)**|**Investmen**
**t and**
**foreign**
**currency**
**gain/(loss)**
**(£)**
(19,387)
-
-
**(19,387)**
-
-
-
-
**-**|**Transf**
**ers**
**(£)**
-
-
-
**-**
91,805
156,00
0
55,644
7,426
**310,87**
**5**|**At 31**
**August**
**2022**
**(£)**
648,885
6,248,99
8
25,473|
|
|---|---|---|---|---|---|---|---|---|
||||||||**6,923,35**
**7**||
||||||||723,321
156,000
27,523
6,785||
||||||||**917,629**||
||||||||||
## **PRIOR YEAR RESTRICTED AND DESIGNATED FUNDS**
The 2021 restricted and designated funds of the Group and the unexpended balances are as follows:
|**Restricted**
**Funds**
Bursary Fund
Annual Fund
Sports
Facilities
Outreach Peru
6th
Form
Centre
Other funds
**Total**|At 1
Septemb
er 2020
(£)
816,759
40,563
12,151
1,069,30
9
6,305,22
1
15,460
**8,259,4**
**63**|**Incomin**
**g**
**resourc**
**es**
**(£)**
**Resourc**
**es**
**expende**
**d**
**(£)**
52,235
(3,509)
4,505
(27,429)
-
-
50,658
(216,011)
27,097
(8,587)
3,814
(2,371)
**138,309**
**(257,907**
**)**|**Investmen**
**t and**
**foreign**
**currency**
**gain/(loss)**
**(£)**
**Transf**
**ers**
**(£)**
**At 31**
**August**
**2021**
**(£)**
102,069
(12,285
)
955,269
-
(3,750)
13,889
-
-
12,151
58,927
-
962,883
-
-
6,323,73
1
-
5,671
22,574
**160,996**
**(10,36**
**4)**
**8,290,49**
**7**|
|---|---|---|---|
**Designated**
## **Notes to the Financial Statements**
**----- Start of picture text -----**
Funds
Hardship fund - - - (85,124
208,607 123,483
)
Maintenance - - - 504,39
219,000 723,399
fund 9
Worth Society - - 105,36
17,939 (13,742) 109,565
8
Friends of
- -
22,276 (12,439) 25,449 35,286,
Worth
Church fund 462,874 - (14,872) - 36,948 633,023
Brighton 578 - (41,955) - 57,266 15,889
project
Other funds - - (252) - 558 306
Total 1,039,132 40,215 (83,260) - 644,864 1,640,951
**----- End of picture text -----**
The 2021 restricted & designated funds of the charity and the unexpended balances are as follows:
||**Restricted**
**funds**
Outreach
Peru
6thForm
Centre
Other funds
**Total**
**Designated**
**Funds**
Church fund
Brighton
project
Other funds
**Charity**|At 1
Septemb
er 2020
(£)
1,069,30
9
6,305,22
1
15,460
**7,389,99**
**0**
610,947
578
-
**611,525**|**Incomin**
**g**
**resource**
**s**
**(£)**
50,658
27,097
3,814
**81,569**
-
-
-
**-**|**Resourc**
**es**
**expende**
**d**
**(£)**
(216,011)
(8,587)
(2,371)
**(226,969**
**)**
(14,872)
(41,955)
(252)
**(57,079)**|**Investmen**
**t and**
**foreign**
**currency**
**gain/(loss)**
**(£)**
58,927
-
-
**58,927**
-
-
-
**-**|**Transf**
**ers**
**(£)**
-
-
5,671
**5,671**
36,948
57,266
558
**94,772**|**At 31**
**August**
**2021**
**(£)**
962,883
6,323,73
1
22,574||
|---|---|---|---|---|---|---|---|---|
||||||||**7,309,18**
**8**||
||||||||633,023
15,889
306||
||||||||**649,218**||
- **Bursary Fund:** The Bursary Fund was established with a donation received for the express purpose of providing Worth School bursaries. The Fund is represented by investments and cash deposits.
- **Outreach Peru:** This Fund was established through legacies and the donations, covenants and fundraising receipts of Outreach Peru and under its previous name, the Friends of Peru. It is used to make grants for the
## **Notes to the Financial Statements**
- ~~relief of poverty and the improvement of educational and healthcare~~ facilities through institutions in Peru.
- **Sports facilities:** This Fund, managed by the Trustees of Worth School, was established to assist with funding for new sports facilities for Worth School including a 3G pitch.
- **Annual Fund:** The Annual Fund was set up to provide curriculumenhancing resources across the School.
- **Sixth Form Centre:** An alumnus of the school donated £6.25 million to Worth Abbey for the purpose of building and fitting out a new Sixth Form Centre for Worth School. This generous donation will be transformational for the school in years to come. The new centre was officially open on 25[th] April 2022. A retention was held for the completion of the snagging lists. In the interim the building contractors went under administration. The remaining funds of £134k are being held to cover the cost of the snags and the Sixth Form Centre will be move to unrestricted funds on completion.
- **Hardship Fund:** The Hardship Fund was established during 2019-2020 to assist families who were economically affected by COVID-19. This fund was fully utilised in 2021-22.
- **Maintenance and Capital Investment Fund:** This Fund was established during 2019-2020 to provide funding for essential maintenance that needs to take place in the School. It has been updated to include investment capital projects. The funds will be utilised during 2022-23 and 2023-24 for approved projects.
- **Friends of Worth School:** Friends of Worth is funded through subscriptions levied and fund-raising events with the funds being utilised to support extra school costs needs. The transactions between the general fund and the designated fund are processed as transfers.
- **Worth Society:** In February 2021 Worth Society donated all its funds to, and was incorporated into, Worth School. The final dissolution of the company became effective on 13 July 2021 at Companies House. Worth Society is a body consisting largely of alumni who continue to support the School.
- **Church Fund:** The church fund was established in 2016-2017 to cover improvements and furniture for the Church. Work will begin in 2022-23 to renovate church furniture.
- **Brighton Project:** The Brighton mission was established to create a more intentional Monastic Community. Their priority is that of following the Benedictine way of life and witnessing to the gospel, living alongside both the people of East Brighton and the Wellspring Community.
The general funds of the group and the unexpended balances are as follows:
## **CONSOLIDATED**
## **Notes to the Financial Statements**
**----- Start of picture text -----**
Resource Investme
Incoming Transfer
At 1 s nt and At 31
resource s
Septembe expende foreign August
s
r 2021 d currency 2022
(£) gain/ (£)
(£) (£)
(£) (loss) (£)
General fund 19,256,67 18,796,56 (17,285,5 (1,234,69 19,308,
(224,727)
3 5 74) 2) 245
PRIOR YEAR CONSOLIDATED
Resource Investme
Incoming Transfer
At 1 s nt and At 31
resource s
Septembe expende foreign August
s
r 2020 d currency 2021
(£) gain/ (£)
(£) (£)
(£) (loss) (£)
General fund 19,513,78 15,346,56 (15,376,1 (634,500 19,256,
407,001
3 5 76) ) 673
**----- End of picture text -----**
Transfers on reserves amounting to -£16,290 from restricted to general funds are set out in the table above representing the depreciation on a coffee van purchased (£3,750) and a bursary for a pupil (£12,540). Transfers between general and designated funds of £1,250,982 consisted of a net transfer from to hardship bursaries (-£123,483), a transfer for the backlog of maintenance projects (£1,211,000), and donations to Friends of Worth (£5,595), Worth Society (£2,994), the Brighton Project (£55,644), Abbey Development (£91,805) and the Jamison Fund (£7,426).
The general funds of the charity and the unexpended balances are as follows:
## **CHARITY**
||At 1
Septembe
r 2021
(£)
General fund
19,216,91
3|**Incoming**
**resource**
**s**
**(£)**
**Resource**
**s**
**expende**
**d**
**(£)**
1,832,660
(1,707,59
2)|**Investme**
**nt and**
**foreign**
**currency**
**gain/**
**(loss) (£)**
**Transfer**
**s**
**(£)**
**At 31**
**August**
**2022**
**(£)**
(224,727)
(310,875
)
**18,806,**
**379**||
|---|---|---|---|---|
**PRIOR YEAR CHARITY**
## **Notes to the Financial Statements**
**----- Start of picture text -----**
Resource Investme
Incoming Transfer
At 1 s nt and At 31
**----- End of picture text -----**
|**Notes to the Financial Statements**|**Notes to the Financial Statements**|**Notes to the Financial Statements**|
|---|---|---|
|At 1
**Incoming**
~~**Resource**~~
**s**
~~**Investme**~~
**nt and**
**Transfer**
**At 31**|||
|Septembe
r 2020
(£)
General fund
19,397,07
4|**resource**
**s**
**(£)**
**expende**
**d**
**(£)**
1,234,595
(1,721,32
4)|**foreign**
**currency**
**gain/**
**(loss) (£)**
**s**
**(£)**
**August**
**2021**
**(£)**
407,001
(100,433
)
**19,216,**
**913**|
## **16. ANALYSIS OF NET ASSETS BETWEEN FUNDS**
## **A) CONSOLIDATED AS AT 31 AUGUST 2022**
|**Restricted**
**Funds**
Bursary Fund
Outreach Peru
6thForm Centre
Sports facilities
Other funds
**Designated**
**funds**
Hardship fund
Maintenance
fund
Worth Society
Friends of
Worth
Abbey fund
Brighton Project
Other funds
**General funds**
Total reserves|**Tangible**
**fxed**
**assets**
**(£)**
-
-
6,196,465
-
-
6,196,465
-
-
-
-
-
-
-
-
26,374,865
**32,571,33**
**0**|**Investmen**
**ts**
**(£)**
896,466
635,397
-
-
1,531,863
-
-
-
-
-
-
-
-
3,323,557
**4,855,420**|**Net current**
**assets/**
**(liabilities)**
**(£)**
135,157
13,488
52,533
12,151
41,182
254,511
-
1,884,059
126,989
23,171
727,321
27,523
6,787
2,795,850
(4,437,244)
**(1,386,883)**|**Long**
**term**
**liabilitie**
**s**
**(£)**
-
-
-
-
-
-
-
-
-
-
-
-
-
(5,952,9
33)
**(5,952,9**
**33)**|**Total**
**(£)**
1,031,62
3
648,885
6,248,99
8
12,151
41,182||
|---|---|---|---|---|---|---|
||||||7,982,83
9||
||||||-
1,884,05
9
126,989
23,171
727,321
27,523
6,787||
||||||2,795,85
0||
||||||19,308,2
45||
||||||||
||||||**30,086,**
**934**||
**AS AT 31 AUGUST 2021**
**Tangible Investmen fixed ts**
**Total**
**Net current Long assets/ term**
## **Notes to the Financial Statements**
**----- Start of picture text -----**
assets (liabilities) liabilitie (£)
(£) (£) (£) s
(£)
Restricted
Funds
- -
Bursary Fund 741,426 213,843 955,269
Outreach Peru - 937,448 25,435 - 962,883
6 [th] Form Centre - - 6,323,73
4,199,910 2,123,821
1
- - -
Sports facilities 12,151 12,151
Other restricted
- - 34,463 - 36,463
funds
4,199,910 1,678,874 2,411,713 - 8,290,497
Designated
funds
- - -
Hardship fund 123,483 123,483
Maintenance
- - -
723,399 723,399
fund
- - -
Worth Society 109,565 109,565
Friends of
- - -
35,289 35,289
Worth
Church fund - - 633,023 - 633,023
- - -
Brighton Project 15,889 15,889
Other funds - - 306 - 306
- - 1,640,951 - 1,640,951
General funds (7,157,0 19,253,6
26,426,849 3,561,642 (3,574,766)
52) 73
(7,157,0 29,188,1
Total reserves 30,626,759 5,240,516 477,898 52) 21
**----- End of picture text -----**
**----- Start of picture text -----**
B) CHARITY AS AT 31 AUGUST 2022
Tangible Investmen Net current Long Total
fixed ts assets/ term
assets (liabilities) liabilitie (£)
(£) (£) (£) s
(£)
Restricted
Funds
6 [th] Form Centre 6,196,46 - 52,533 - 6,248,99
5 8
Outreach Peru - 635,397 13,488 - 648,885
Other restricted - - 25,473 - 25,473
funds
6,196,46 6,923,35
5 635,397 91,495 - 7
Designated
Funds
- - -
Abbey fund 727,321 723,321
- - -
Brighton Project 27,523 27,523
Maintenance fund - - 156,000 - 156,000
Other funds - - 6,785 - 6,785
- - -
917,629 917,629
**----- End of picture text -----**
## **Notes to the Financial Statements**
**----- Start of picture text -----**
General Funds 25,815,4 3,324,658 (6,886,322) (3,447,4 18,806,3
78 35) 79
Total reserves 32,011, 3,960,055 (5,877,198) (3,447,4 26,647,6
943 35) 35
**----- End of picture text -----**
## **AS AT 31 AUGUST 2021**
**----- Start of picture text -----**
Long
Tangibl Investmen Net current term
e fixed ts assets/ liabilitie Total
assets (liabilities) s
(£) (£) (£) (£) (£)
Restricted
Funds
6 [th] Form Centre 4,199,91 - 2,123,821 - 6,323,73
0 1
Outreach Peru - 937,448 25,435 - 962,883
Other restricted
funds - - 22,574 - 22,574
4,199,91 - 7,309,18
937,448 2,171,830
0 8
Designated
Funds
Church fund - - 633,023 - 633,023
- - -
Brighton Project 15,889 15,889
Other funds - - 306 - 306
25,945,0 3,562,7 (4,316,1 19,216,9
General Funds (5,974,704)
61 40 84) 13
30,144, (4,316,1 27,175,
Total reserves 971 4,500,188 (3,153,656) 84) 319
**----- End of picture text -----**
## **17. ANALYSIS OF CASH FLOWS**
|**17. ANALYSIS OF CASH FLOWS**|||
|---|---|---|
|**a)**
**Returns on investments and the servicing of**
**fnance**|**2022 (£)**|_2021 (£)_|
|Investment income
Note 5a|**83,597**|_101,479_|
|Interest received
Note 5a|**25,602**|_27,097_|
|Interest paid
Note 6c|**(102,984)**|_(58,176)_|
|**Net cash infow/(outfow)**|**6,215**|_70,400_|
## **b) Investments**
During the year, £275,458 was drawn down from the investments designated for Outreach Peru and used to meet the expenditure of that Fund (2021: £165,469).
**c) Financing**
**2022 (£)** _2021 (£)_
Decrease/(Increase) in parents’ acceptance deposits
**(302,832)** _(765,159)_
## **Notes to the Financial Statements**
**----- Start of picture text -----**
- (2,194,435
Decrease/ (Increase) in new loans
)
(1,057,61
Decrease/(Increase) in loan repayments 441,206
0)
1,360,442 (2,518,388
Net cash outflow
) )
18. ANALYSIS OF CHANGES IN NET DEBT
At 31 At 31
Cash flow
August August
2021 2022
(£)
(£) (£)
(1,334,481
Cash in hand and at bank 6,009,652 4,675,171
)
Loans due in less than one year (668,269) 188,861 (479,408)
(4,316,184 (3,447,43
Loans due after one year 868,749
) 5)
(2,834,784 (2,531,95
Parents’ acceptance deposits 302,832
) 2)
(1,809,585 (1,783,62
Net Debt 25,961
) 4)
PRIOR YEAR
At 31 Cash flow At 31
August August
2020 (£) 2021
(£) (£)
Cash in hand and at bank 8,634,924 (2,625,272) 6,009,652
Loans due in less than one year (492,149) (176,120) (668,269)
(4,316,18
Loans due after one year (2,739,077) (1,577,107)
4)
(2,834,78
Parents’ acceptance deposits (2,069,623) (765,161)
4)
(1,809,58
Net Debt 3,334,075 (5,143,660)
5)
**----- End of picture text -----**
## **19. CAPITAL COMMITMENTS**
At the year end the Group had capital commitments to convert the Library block to classroom (£1.5 million) and to replace the church roof (£1.5 million).
## **20. OPERATING LEASE COMMITMENTS**
Commitments under operating leases to make payments in the following year are analysed below by the expiry date of the leases concerned.
||Under 1 year
Between 2 and 5 years|**Other operating leases**
**2022 (£)**
_2021 (£)_
**129,428**
_103,971_
**65,557**
_162,113_
**194,985**
_266,084_|**Other operating leases**
**2022 (£)**
_2021 (£)_
**129,428**
_103,971_
**65,557**
_162,113_
**194,985**
_266,084_||
|---|---|---|---|---|
||||_266,084_||
**21. FINANCIAL INSTRUMENTS**
## **Notes to the Financial Statements**
**----- Start of picture text -----**
Consolida Charity Consolidat Charity
ted 2022 ed 2021
2022 (£) 2021 (£)
(£) (£)
Financial Assets
Financial assets measured 176,932 176,932 -
at fair value through profit
and loss
Financial assets measured 4,872,027 199,727 6,067,350 3,311,545
at amortised cost
5,048,959 376,659 6,067,350 3,311,545
Financial Liabilities
Financial liabilities measured
at amortised cost (13,202,8 (4,139,80 (13,340,98 (5,062,514
26) 1) 5) )
**----- End of picture text -----**
Financial assets measured at fair value though profit and loss comprise financial instruments.
Financial assets measured at amortised cost comprise cash at bank, trade debtors and other debtors.
Financial liabilities measured at amortised cost comprise bank loans, trade creditors, other creditors and accruals.
## **22. RELATED PARTY TRANSACTIONS**
Neither the Trustees nor persons connected with them received any remuneration from the Abbey. The Trustees do however, in common with all other members of Worth Abbey’s Monastic Community, receive benefits in kind in the form of payment by the Abbey for their general living expenses. These costs are not allocated between individual members of the Community as it would be impracticable to do so. Trustees of Worth School received a total of £Nil for food and travel expenditure incurred whilst travelling on school business (2021: £Nil). The School enters into transactions with parent governors. These transactions occur on an arm’s length basis with independent consideration of any bursaries and scholarships which may arise. Trustee Indemnity Insurance is included in the Abbey’s insurance policy at no extra cost and covers those members of the Monastic Community serving as Trustees.
The Worth Abbey Group operates in such a way that goods and services are often bought by one entity on behalf of another and then passed on at cost. As a result, during the year Worth Abbey transacted with Worth School, Worth Abbey Construction Limited and Worth Abbey Projects Ltd. Worth School received goods and services from Worth Abbey valued at £3,391,176 (2021: £1,108,179) in the year and passed goods and services to Worth Abbey valued at £2,117,577 (2021: £1,131,754) in the year. Goods and services valued at £137,683 (2021: £246,727) were transferred to Worth Abbey Projects Ltd.
## **Notes to the Financial Statements**
~~In addition to these transactions, Worth School leased land and buildings from~~ Worth Abbey for £1,028,276 (2021: £828,276). Worth Abbey also purchased goods and services from Worth Abbey Projects Ltd to the value of £21,028 (2021: £44,431) on a basis that is equivalent to that paid by other customers of Worth Abbey Projects Ltd.
As at the year end, £6,347,191 was owed to Worth School by Worth Abbey (2021: £6,426,830), £180,744 was owed from Worth Abbey Projects Limited (2021: £220,025) and £455,611 was owed from Worth Abbey Construction Limited (2021: £453,464) to Worth Abbey.
## **23. PENSION COMMITMENTS**
The School participates in the Teachers’ Pension Scheme (England and Wales) (“the TPS”) for its teaching staff. The pension charge for the year includes contributions payable to the TPS of £870,203 (2021: £895,642) and at the yearend £96,454 (2021: £104,116) was accrued in respect of contributions to this scheme.
The TPS is an unfunded multi-employer defined benefits pension scheme governed by the Teachers’ Pensions Regulations 2010 and the Teachers’ Pension Scheme Regulations 2014 (as amended). Members contribute on a ‘pay as you go’ basis with contributions from members and the employer being credited to the Exchequer. Retirement and other pension benefits are paid by public funds provided by Parliament.
The employer contribution rate is set by the Secretary of State following scheme valuations undertaken by the Government Actuary’s Department. The latest valuation report in respect of the TPS was prepared as at 31 March 2016 and the Valuation Report, which was published in March 2019, confirmed that the TPS would increase from 16.4% to 23.6% effective from 1 September 2019. Employers are also required to pay a scheme administration levy of 0.08% giving a total employer contribution rate of 23.68%.
The 31 March 2016 Valuation Report was prepared in accordance with the benefits set out in the scheme regulations and under the approach specified in the Directions, as they applied at 5 March 2019. However, the assumptions were considered and set by the Department of Education prior to the ruling in the ‘McCloud/Sargeant case’. This case has required the courts to consider cases regarding the implementation of the 2015 reforms to Public Service Pensions including the Teachers Pensions.
On 27 June 2019 the Supreme Court denied the Government permission to appeal the Court of Appeal’s judgment that transitional provisions introduced to the reformed pension schemes in 2015 gave rise to unlawful age discrimination. The Government is respecting the Court’s decision and has said it will engage fully with the Employment Tribunal as well as employer and member representatives to agree how the discriminations will be remedied. The government announced on 4 February 2021 that it intends to proceed with a deferred choice underpin under which members will be able to choose either legacy or reformed scheme benefits in respect of their service during the
## **Notes to the Financial Statements**
~~period between 1 April 2015 and 31 March 2022 at the point they become~~ payable.
The TPS is subject to a cost cap mechanism which was put in place to protect taxpayers against unforeseen changes in scheme costs. The Chief Secretary to the Treasury, having in 2018 announced that there would be a review of this cost cap mechanism, in January 2019 announced a pause to the cost cap mechanism following the Court of Appeal’s ruling in the McCloud/Sargeant case and until there is certainty about the value of pensions to employees from April 2015 onwards. The pause was lifted in July 2020, and a consultation was launched on 24 June on proposed changes to the cost control mechanism following a review by the Government Actuary. Following a public consultation, the Government has accepted three key proposals recommended by the Government Actuary, and are aiming to implement these changes in time for the 2020 valuations.
The 2016 cost control valuations have since been completed in January 2022, and the results indicated that there would be no changes to benefits or member contributions required. The results of the cost cap valuation are not used to set the employer contribution rate, the HM treasury has confirmed that any changes to the employer contribution rate resulting from the 2020 valuations will take effect in April 2024.
Until the 2020 valuation is completed it is not possible to conclude on any financial impact or future changes to the contribution rates of the TPS. Accordingly, no provision for any additional past pension benefit is included in these financial statements.
The School is in a phased withdrawal from the Teacher’s Pension Scheme with effect from 1 September 2022 with new teaching staff members being enrolled into the defined contributions group personal pension scheme
The charity makes defined contributions to a group personal pension scheme for its non-teaching staff. Contributions to this scheme in the year amounted to £274,606 (2021: £244,666).
## **Reference & Administrative details** ~~**Registered Ofce**~~
Worth Abbey Paddockhurst Road Turners Hill, Crawley West Sussex RH10 4SB Tel: 01342 710310 worthabbey.net
Company registration number: 4475556 Charity Registration number: 1093913
## **Bankers & Principal Advisors**
## **Bankers**
HSBC, 9 The Boulevard, Crawley, West Sussex, RH10 1UT
## **Auditors**
Crowe UK LLP, Riverside House, High Street, Maidstone, Kent, ME14 1JH
## **Investment Managers**
BlackRock Investment Managers Limited, 12 Throgmorton Avenue, London, EC2N 2DL
Flagstone Investment Management (deposit accounts), 1[st] Floor, Clareville House, 26-27 Oxendon Street, London, SW1Y 4EL
Smith & Williamson, 25 Moorgate, London, EC2R 6AY
## **Solicitors**
Farrer & Co, 66 Lincoln’s Inn Fields, London, WC2A 3LH
Stone King, 13 Queen Square, Bath, BA1 2HJ
Womble Bond Dickinson (UK) LLP, Newcastle St Ann’s, 112 Quayside, Newcastle Upon Tyne, NE1 3DX