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2020-09-30-accounts

Charity Registration No. 1158507

Company Registration No. 09124570 (England and Wales)

:

DOWNSIDE ABBEY GENERAL TRUST

ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2020

DOWNSIDE ABBEY GENERAL TRUST

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees/MonasticCouncil Reverend Nicholas PhilipWetz (Abbot)
(Controller ofthe Trust)
Rev Martin Joseph Hood
Rev Marc David Brumwell
RevJohn Mark Barrett
Rev David Roger Charlesworth (Appointed 23 October 2019)
Charity number 1158507
Companynumber 09124570
Registered office Downside Abbey
Stratton-on-the-Fosse
RADSTOCK
BA3 4RH
Auditor Old Mill Audit LLP
Bishopbrook House
Cathedral Avenue
WELLS
Somerset
BAS 1FD
Bankers Barclays Bank Plc
37 Milsom Street
BATH
Somerset
BA1 1DW
Solicitors Stone King LLP
13 Queen Square
BATH
Somerset
BAI 2HJ
Investment advisors BNY Mellon Asset Management Limited
The Bank of New York Centre
160 Queen Victoria Street
LONDON
ECAV 4LA
Insurance Broker DE
Ford
Poppleton Garage
Low Poppleton Lane
YORK
Y0266GZ

DOWNSIDE ABBEY GENERAL TRUST

CONTENTS

Page
Trustees report 1-8
Independent auditor's report 9-11
Consolidated statement of financial activities 12
Consolidated statement offinancial activites - continuing& 13
discontinuing operations
Group balance sheet 14
Balance sheet 15
Consolidated and charitystatement ofcash flows 16
Notestotheaccounts 17-45

DOWNSIDE ABBEY GENERAL TRUST

TRUSTEES REPORT (INCLUDING DIRECTORS' REPORT AND STRATEGIC REPORT) FOR THE GROUP FOR THE YEAR ENDED 30 SEPTEMBER 2020

The trustees present their report and financial statements for the year ended 30 September 2020.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's Memorandum and Articles, the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of treland (FRS 102) (effective 1 January 2019)".

Objectives and activities

The objects of the Charity include:-

Any such charitable purpose or purposes approved by the Controller as in the opinion of the Trustees is or are conducive to the advancement or maintenance of the Roman Catholic religion, including:-

The provision, maintenance and upkeep of:-

We aim through the work of the Monastic Community and the School to be a focal centre for Catholic, Benedictine life and to be a sustainable community.

Objectives

In setting our objectives and planning our activities we, the Trustees, have given careful consideration to the Charity Commission's general guidance on public benefit and in particular to its supplementary public benefit guidance on advancing education.

Our key objectives for the year included:

Our Ethos, Strategy and Policies

The Trustees are responsible for setting the strategy and for achieving the objectives they have set. The focus of the strategy is on developing the work of the Monastic Community.

In implementing our strategy we:

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DOWNSIDE ABBEY GENERAL TRUST

TRUSTEES REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT AND STRATEGIC REPORT) FOR

THE GROUP

FOR THE YEAR ENDED 30 SEPTEMBER 2020

Our Ethos

Downside Abbey General Trust is a charitable trust which seeks to benefit the public through its stated aims for the Monastic and thereby enhance the spiritual well-being of visitors to the abbey church, library and guest wing.

We are an equal opportunities organisation and are committed to a working environment that is free from any form of discrimination on the grounds of colour, race, ethnicity, religion, sex, sexual orientation or disability. We will make reasonable adjustments where possible to meet the needs of staff who are or become disabled.

Protection of Children and Vulnerable Adults

We are committed to the highest standards of safeguarding and seek to promote the welfare of children and vulnerable adults in all our endeavours, and expect all trustees, staff and volunteers to share this commitment. We actively engage and cooperate with and follow the guidance of the Roman Catholic Diocese of Clifton, the Catholic Safeguarding Advisory Service and the National Catholic Safeguarding Commission. Our safeguarding committee, comprising the Abbot, Compliance Trustee and lay Designated Safeguarding Lead meets regularly and reports to the Trustees every month. The monastery safeguarding committee also meets with the safeguarding committee of Downside School in order to share relevant information and to ensure a coordinated approach.

Strategic report

The description under the headings “Achievements and Performance" and "Financial Review" meet the company law requirements for the trustees to present a strategic report.

Achievements and Performance

Governance

The Reverend Nicholas Wetz, of Belmont Abbey, was appointed as Prior Administrator from 1 September 2018 and elected as Abbot for a period of eight years on 26 August 2020. The Reverend Marc Brumwell was appointed to be Prior to assist the Abbot.

Much effort was expended by the Prior Administrator and Sub-Prior, along with other Trustees and School Governors, in establishing Downside School as a separate, independent charitable Company Limited by Guarantee, approved by the Charity Commission. The new Governors are also Members of the new Company, and were appointed following a national advertising campaign and interview process, led by Nicholas Eldred, an external advisor appointed for this process. The superior of the monastic community is a Governor ex officio and the Bishop of Clifton appoints one member, both of whom have the responsibility to protect the Catholic and Benedictine ethos of the school. This complex process was completed on 11 September 2019, and required the expenditure of a very large proportion of our capital in legal fees and the monies needed for the school to function. This will be seen clearly in the accounts for 2019-2020.

Pastoral work

The Monastic Community continued to serve its four parishes, which are located in three dioceses (Clifton, Birmingham, East Anglia). The Community also provides chaplains for three local schools (Downside School, St Benedict’s Primary School, All Hallows School) and one monk was employed as a teacher in Downside School.

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DOWNSIDE ABBEY GENERAL TRUST

TRUSTEES REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT AND STRATEGIC REPORT) FOR THE GROUP FOR THE YEAR ENDED 30 SEPTEMBER 2020

The Monastic Library is usually made available for research, visits and events but the global COVID-19 pandemic limited this in the past year. The Monastic Library not only helps to protect the housed collection, but we have continued to open it up to the public through digitisation, tours and exhibitions. A number of events took place during the year, including Heritage Open Days, talks on Russia and the Church, Shakespeare and the Webbs of Odstock. George Ferzoco and Professor Carolyn Muessig of the Department of Religious Studies and Theology at Bristol University curated an exhibition on The Bible of Downside with the assistance of the monastic community and our library staff, which was visited by a large number of people at the launch and subsequent occasions. Mr Ferzoco also brought a number of students from Bristol University to Downside to visit the library and to learn about the resources available for their research. There were further lectures on Mediaeval Abbots as Historians (Dr Benjamin Pohl) and on the excavations at Bath Abbey. An on-line exhibition, curated by Dr Benjamin Pohl, the Downside Abbey Library staff and the Monastic Community, entitled “History and Community” took place in conjunction with the Bristol University History Department and attracted a large number of people to the on-line launch and to the website, which remains live (historyandcommunity.com). This has made the life, work and heritage of the Monastic Community accessible to considerably more people than would have made the journey to Stratton-on-the-Fosse. We continue to cultivate our partnership with the Departments of Theology and Religious Studies and History at Bristol] University, whose students and lecturers are eager to be able to return to use the Library for their research.

The Abbey Office continues to develop and help with research, publications, lectures and administration. In keeping with our core charitable objects we are able to publish relevant books and works of the Community and others. The Downside Review, our quarterly theological journal, continues to be published and sold to a large number of institutions and individuals throughout the world with the assistance of SAGE Publications.

The Abbey Visitor Centre provides facilities for retreats and courses to Catholic schools and organisations and other groups. It serves as a venue for lectures, retreats and discussion groups. Again, this was not possible for much of the past year owing to the global pandemic. Before this, however, Rachel Wright, a local artist, displayed her paintings of Downside Abbey here as part of her exhibition and sale. The monastery guest rooms are usually available for retreatants, wishing to benefit from the quiet offered by a few days living alongside a monastic community, but this has not been possible in the past year. The usual group retreats have also been impossible during the period of these accounts. The Monastic Community looks forward to being able to welcome visitors to the Visitor Centre, church and the guest wing when possible.

Work in the Community

The Trust makes available land adjacent to the Village Hall for use by the local football club, as a playground for the village and for public access.

The Trust continues to support the work of the Downside Fisher Youth Club situated in the inner London borough of Southwark. It usually hosts their annual camp in the school playing fields and a number of Sunday Mass collections are donated to the Club.

The annual Order of Malta Volunteers pilgrimage to Lourdes, in the south of France, takes place every July and is supported by one of the school chaplains (a member of the monastic community) and members of the St Gregory’s Society. This pilgrimage takes a number of physically and mentally disabled pilgrims to Lourdes and enables volunteers to learn more about the needs of vulnerable and disabled people and how to look after and relate to them appropriately.

The Abbot is ex officio a Governor of Downside School, with particular responsibility for overseeing the Benedictine and Catholic ethos, in conjunction with a Governor appointed by the Bishop of Clifton. A monk is Chaplain in Downside School, assisted by other members of the Community, and another monk is employed to teach Religious Studies.

The Trustees are committed to finding more ways to open up the grounds, and create additional opportunities for the public to enjoy the facilities, and to interact with the monastic community.

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DOWNSIDE ABBEY GENERAL TRUST

TRUSTEES REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT AND STRATEGIC REPORT) FOR THE GROUP . FOR THE YEAR ENDED 30 SEPTEMBER 2020

Impact of COVID-19

inevitably the global COVID-19 pandemic has impacted on the work of the Charity. The guest rooms and Visitor Centre have been closed for some of the year and for a few months it was not permitted to hold public religious services, including over Easter. As a consequence the income of the Charity has reduced, but expenditure has also decreased. On the positive side, however, the outreach of the Monastic Community has widened through the increased use of social media, the uploading of the daily Mass, which 35-90 people listen to on average each day, and occasional podcasts. We also host a monthly on-line service of prayer for healing on Instagram and YouTube, have broadcast Question and Answer sessions and the on-line ‘History and Community’ exhibition, curated by Dr Benjamin Pohl and the students at Bristol University with considerable input from the Monastic Community and our own staff has been a great success and opened up the collections to a very wide audience, both in the United Kingdom and in other parts of the world.

Future Plans

Over the past six years the Monastic Community has been engaged in a number of internal discussions regarding the future as a smaller community in large buildings. With the help of an external facilitator to guide discussions, the Community voted unanimously in July 2020 to leave Stratton-on-the-Fosse. Concrete plans have yet to be formulated and have been slowed by the COVID-19 pandemic, but it is hoped to determine the details in the course of 2021. In order to achieve this, the Monastic Community elected Dom Nicholas Wetz as its Abbot on 26 August 2020, with the mandate to help the Community to discern where they should move to, and how best to ensure that the buildings that remain are maintained and continue to be available to further the aims of the Charity.

Downside Abbey has the largest monastic archive and library in the United Kingdom. The Trustees continue to explore new ways of conserving and preserving the heritage assets of the Trust, including the library and archives. They will continue to further the project for widening access to the historically important material culture in accordance with the Heritage Management Plan drawn up in connection with the Heritage Lottery Fund project. When permitted, public talks will take place on a variety of topics. We will also hold days for our volunteers and participate in the national Heritage Open Days week.

Financial review

The financial statements show net incoming resources for the year for the Trust of £1,416,498 (2019: outgoing £662,528).

Income from donations and legacies for the year amounted to £248,006 (2019: £317,745).

The Charity’s trading subsidiary, Downside Enterprise Limited, which is comprised of the abbey book shop, madea profit of £16,297 compared with a loss of £17,744 in 2019.

Total resources expended were £1,212,318 (2019: £12,455,575). Overall the net movement of funds for the year was a surplus of £1,416,498 (2019: deficit £662,528).

Net gains in investments were £362,592 (2019: £780,314).

The consolidated Trust’s balance sheet as detailed on page 14 shows a satisfactory position with funds totalling £19,594,540 (2019: £18,178,041). The financial statements comply with current statutory requirements.

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DOWNSIDE ABBEY GENERAL TRUST

TRUSTEES REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT AND STRATEGIC REPORT) FOR THE GROUP FOR THE YEAR ENDED 30 SEPTEMBER 2020

Reserves

Notes 26 to 28 to the financial statements show the assets and liabilities attributable to the various funds by type and also show the various Trusts of the Charity and summarise the year’s movement on each fund.

The reserves of the Charity are those funds that are freely available to be spent in pursuing the Charity’s objects. The free reserves of the Charity at the financial year end were:

free reserves of thethe Charity at the financialthe financialfinancial year end were:
2020 2019
£ £
Total Reserves as at 30 September: 19,594,540 18,178,041
Less
Restricted Funds (701,455) (713,225)
Designated Funds (11,727) (11,960)
Unrestricted Funds which could only be realised by (10,841,017) (11,253,524)
disposing ofthe fixed assets held for charity use
FreeReservesSurplus 8,040,341 6,199,332

The Trustees regularly review the finances, budgets and spend against budget together with the cash flow analysis as part of the effective stewardship of the Trust. Work is ongoing to develop business plans and actions that properly reflect the shape of the Trust since legal and financial separation from Downside School.

Downside School has a continuing programme of refurbishment, development and investment to maintain excellent facilities for their pupils and as landlords we have committed to mend the roofs and windows of the school buildings most in need of repair up to a finite sum agreed with the Directors of Downside School.

The free reserves are £7,985,139 or approximately 79 months’ headroom at current levels. The Trustees consider that given the strength of the Charity’s balance sheet, the stable cash flow and the available banking facility this is acceptable at present.

The Trustees recognise that the level of reserves fluctuates during periods of investment and that arrangements are in place with our bank to provide facilities. The Trustees’ financial plans for the future are to remain in surplus and to hold an appropriate level of reserves, whilst conscious that it will take time to build up such reserves.

Investment Powers

The Trustees are permitted by the terms of the Trust Deed to make investments in any manner allowed by law.

Investment Policy

The Trustees’ objective is to maximise the total investment return within a controlled risk framework subject to certain investment and ethical restrictions. A small proportion of the Trust’s assets are invested in a leading common investment fund to provide income and capital growth for certain restricted and designated funds.

Investment Performance

90% of listed investments are in the Newton Growth fund for charities, which is a bespoke vehicle for charities looking to adopt certain ethical principles in their investments. For example, the fund does not invest in companies that derive more than 10% of turnover from tobacco production. Listed investments overall returned +2.98% for the period. This compares favourably with a broadly flat FTSE 100 share index in the same period, and near zero interest rates on cash deposits.

Developments and Maintenance

We continue to invest in the estate and the School infrastructure, completing a number of smaller projects during the year, including work on some village properties.

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DOWNSIDE ABBEY GENERAL TRUST

TRUSTEES REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT AND STRATEGIC REPORT) FOR THE GROUP FOR THE YEAR ENDED 30 SEPTEMBER 2020

Structure, Governance and Management

Constitution

Downside Abbey General Trust, the Charity, is also known as Downside General Trust and is referred to throughout the financial statements as the Trust.

The Trust is a company limited by guarantee constituted by its Memorandum & Articles on 10 July 2014. It was registered as a charity on 09 September 2014. This company supersedes the former Downside Abbey General Trust (Charity number 232548) which was formed by Trust Deed in 1934 and registered as a Charity on 16 February 1965. All assets and interests were transferred to the new company.

The trustees, who are also the directors for the purpose of company law, and who served during the year were:

Reverend Nicholas Philip Wetz (Abbot) (Controller of the Trust)

Rev Martin Joseph Hood

Rev Marc David Brumwell

Rev John Mark Barrett

Rev David Roger Charlesworth (Appointed 23 October 2019)

;

Downside Abbey General Trust (cc no. 1158507) (a charitable Company) was appointed the sole corporate trustee of Downside Abbey General Trust (previously cc. no. 232548, now 1158507-1} (a trust) by Charity Commission Scheme dated 04 September 2015.

The Controller of the Trust, being the Abbot of Downside, has absolute discretion over the appointment and removal of Trustees of The Downside Abbey General Trust (commonly known as The £50 Trust). The £50 Trust is governed by a Trust Deed dated 01 August 1934 (the “1934 Deed”) and a Charity Commission Scheme dated 15 September 1977. DATR is the incorporated trustee body of The £50 Trust (and other trusts). It was incorporated under the Charitable Trustees Incorporation Act 1872 (now part 12 of the Charities Act 2011).

The number of Trustees shall be no fewer than four and no more than twenty. Half of the Trustees are appointed by the Abbot and half are elected by the annual Chapter of Members of the Monastic Community. If it is believed to be helpful, under the provisions of the Constitutions of the English Benedictine Congregation the Abbot President of the English Benedictine Congregation may also appoint members of the Abbot’s Council, who also act as Charity Trustees. In making the appointments both the Abbot and the Community consider the qualifications and experience of the monks and their suitability to act as Trustees. New Trustees are briefed by experienced Trustees about their role and responsibilities and courses are made available to them.

Trustees are authorised to commit up to £210,000 on any one item of projected expenditure. Project expenditure in excess of £210,000 requires the approval of the Chapter of solemnly professed members of the Monastic Community.

Mrs Tina Woodham was appointed as Business Manager for Downside Abbey General Trust in February 2020. The Trustees have instituted a sub-committee of the Trust to advise them on matters relating to finance. Two members of the sub-committee are also Trustees and the other members have been appointed by the Trustees owing to their proven professional expertise in finance and as Company Directors.

The Trustees of the Downside Abbey General Trust are committed to high standards of corporate governance. The Trustees examine the principal areas of the Trust’s operations and consider the major risks faced in each of these areas at the beginning of each financial year as part of the planning process.

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DOWNSIDE ABBEY GENERAL TRUST

TRUSTEES REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT AND STRATEGIC REPORT) FOR

THE GROUP FOR THE YEAR ENDED 30 SEPTEMBER 2020

In the opinion of the Trustees the Charity has established resources and review systems which, under normal conditions, should allow these risks to be mitigated to an acceptable level in its day to day operations.

The principal risk to the Trust is the financial sustainability of the monastery, particularly in a time of global pandemic.

Non-financial risks of material concern include Charity Commission compliance, vocational recruitment to the monastic community and fire and health and safety risks. These risks are managed by having robust policies and procedures in place, supported by relevant training and professional advice.

The Charity has some exposure to credit risk which it manages through robust credit policies, regular review and enforcement against fee debtors. The Trust has sufficient resources to meet its needs, but there is increasingly a seasonal liquidity risk at certain times of the year when peak expenditure and income are not aligned. This is monitored through cash flow forecasting models, and we enjoy a positive relationship with our long term bankers to ensure that these risks do not pose a material threat to the Trust. As noted above, the Trustees have commenced an exercise to increase the liquidity buffer, which is likely to result in the sale of non-income producing assets over the year.

All Trustees give their time freely, and external Trustees who are not resident at Downside were paid reasonable travel expenses during the year.

Connected Entities

The following charities are connected to Downside Abbey General Trust:-

Downside Abbey Missions Trust, Downside Abbey, Stratton on the Fosse, Radstock, BA3 4RH (Charity Number 232550),

St Vedast’s Charitable Trust, Downside Abbey, Stratton on the Fosse, Radstock, BA3 4RH (Charity Number 1068575).

The above charities are controlled by The Downside Abbey (commonly known as The £50 Trust defined above), Stratton on the Fosse, Radstock, BA3 4RH, (Charity Number 232549), being an incorporated body of Trustees. The assets of Downside Abbey Missions Trust are held separately from those of Downside Abbey General Trust but the assets of the St Vedast’s Charitable Trust have all been transferred to the Charity.

In January 1990 the Trustees established Downside Enterprise Limited to carry on trading activities on behalf of the Trust.

There are four directors of Downside Enterprise Limited, one of whom is also a Trustee of the Trust:

Rev Richard Cuthbert Tolley Maidlow Davis

Rev Martin James Hood Rev David Foster Mrs Jane Vines (resigned 28 November 2019} Mr John Carter

The financial results of Downside Enterprise Limited are shown in Note 6 and have been consolidated with those of the Trust.

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DOWNSIDE ABBEY GENERAL TRUST

TRUSTEES REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT AND STRATEGIC REPORT) FOR

THE GROUP

FOR THE YEAR ENDED 30 SEPTEMBER 2020

Statement of trustees responsibilities

The trustees, who are also the directors of Downside Abbey General Trust for the purpose 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 which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.

tn preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The trustees are responsible for the maintenance and integrity of the charity and financial information included on the charity's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other[jurisdictions.]

Disclosure of information to auditor

Each of the trustees has confirmed that there is no information of which they are aware which is relevant to the audit, but of which the auditor is unaware. They have further confirmed that they have taken appropriate steps to identify such relevant information and to establish that the auditor is aware of such information.

The trustees report, including the strategic report, was approved by the Board of Trustees.

Reverend Nicholas Philip Wetz (Abbot) (Controller of the Trust) TrusteeDated: inob|202\

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DOWNSIDE ABBEY GENERAL TRUST

INDEPENDENT AUDITOR'S REPORT

TO THE MEMBERS OF DOWNSIDE ABBEY GENERAL TRUST

Opinion

We have audited the accounts of Downside Abbey General Trust (the ‘parent charity’) for the year ended 30 September 2020 which comprise the Group Statement of Financial Activities, the Group and charity Balance Sheet, the Group and charity Statement of Cash Flows and the notes to the accounts, including a summary of 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).

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 auditors’ report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the 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.

In our opinion, the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

Other information

The trustees are responsible for the other information. 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.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

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DOWNSIDE ABBEY GENERAL TRUST

INDEPENDENT AUDITOR'S REPORT (CONTINUED)

TO THE MEMBERS OF DOWNSIDE ABBEY GENERAL TRUST

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors’ report included within 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:

Responsibilities of trustees

As explained more fully in the statement of trustees responsibilities, the trustees, who are also the directors of the charity for the purpose of company law, are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the 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.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: http://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

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DOWNSIDE ABBEY GENERAL TRUST

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF DOWNSIDE ABBEY GENERAL TRUST

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DOWNSIDE ABBEY GENERAL TRUST

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 30 SEPTEMBER 2020

Unrestricted Unrestricted Restricted Total Total
funds funds funds 2020 2019
general designated
Notes £ £ £ £ £
Income and endowments from:
Donations and legacies 4 215,894 - 32,112 248,006 317,745
Charitable activities
Educational income 5 - - - - 8,973,515
Monastic Income 5 436,170 - - 436,170 503,759
Othertrading activities 16,941 - - 16,941 312,359
Investments 7 324,803 154 14,219 339,176 363,359
Other 8 1,225,931 - - 1,225,931 541,995
, Total income and endowments 2,219,739 154 46,331 2,266,224 11,012,732
Expenditure on:
Raising funds 9 92,224 - - 92,224 758,021
Charitable activities
Educational 11 - - - - 7,689,794
Monastic 11 1,097,681 - 22,413 1,120,094 4,007,759
Total charitable expenditure 1,097,681 - 22,413 1,120,094 11,697,553
Total resources expended 1,189,905 - 22,413 1,212,318 12,455,574
Net gains on investments 15 398,667 (387) (35,688) 362,592 780,314
Netmovement infunds 1,428,501 (233) (11,770) 1,416,498 (662,528)
Fund balances at 1 October 2019 17,452,857 11,960 713,225 18,178,042 18,840,570
Fund balances at30September
2020 18,881,358 11,727 701,455 19,594,540 18,178,042

The statement offinancial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities,

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.

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DOWNSIDE ABBEY GENERAL TRUST

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT SPLIT BETWEEN CONTINUING AND DISCONTINUED OPERATIONS FOR THE YEAR ENDED 30 SEPTEMBER 2020

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|||||||||||| |---|---|---|---|---|---|---|---|---|---|---| |Total|As|restated|Total| |Continuing|Discontinued|2020|=|Continuing|Discontinued|2019| |Operations|Operations|Operations|Operations| |Notes|£|£|£|£|£|£| |Income|and|endowments|from:| |Donations|and|legacies|4|248,006|-|248,006|109,442|208,303|317,745| |Charitable|activities| |Educational|Income|5|-|-|-|-|8,973,515|8,973,515| |Monastic|Income|5|436,170|-|436,170|49,328|454,431|503,759| |Other trading|activities|16,941|-|16,941|37,544|274,815|312,359| |Investments|7|339,176|-|339,176|356,205|7,154|363,359| |Other|8|1,225,931|-|1,225,931|541,995|-|541,995| |Total|income|and|endowments|2,266,224|-|2,266,224|1,094,514|9,918,218|11,012,732| |Expenditure|on:| |Raising|funds|9|92,224|-|92,224|226,273|531,748|758,021| |Charitable|activities| |Educational|11|-|-|-|8,194|7,681,600|7,689,794| |Monastic|11|1,120,094|-|1,120,094|3,978,154|29,605|4,007,759| |Total|charitable|expenditure|1,120,094|-|1,120,094|3,986,348|7,711,205|11,697,553| |Total|resources|expended|1,212,318|-|1,212,318|4,212,621|8,242,953|12,455,574| |Net|gains|on|investments|15|362,592|-|362,592|765,379|14,935|780,314| |Net movement|in|funds|1,416,498|-|1,416,498|(2,352,728)|1,690,200|(662,528)|

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The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.

The trustees have reviewed their discontinued operations and to fairer reflect the income & expenditure transferred to the school in the prior year it has been determined to restate the discontinued operations. Consequently £661,807 of income and £29,605 of expenditure has been reclassified from continuing to discontinued operations. The overall amount of income & expenditure disclosed in last year’s financial statements remains the same.

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DOWNSIDE ABBEY GENERAL TRUST

GROUP BALANCE SHEET

AS AT 30 SEPTEMBER 2020

2020 2019
Notes £ £ £ £
Fixed assets
Tangible assets 17 10,841,017 11,253,524
Investment properties 18 9,098,734 9,209,400
Investments 19 482,037 518,112
20,421,788 20,981,036
,
Current assets
Stocks 21 71,218 51,032
Debtors 22 543,055 1,447,223 ,
Cash at bank and in hand 260,623 334,075
874,896 1,832,330
Creditors: amounts fallingduewithin one 24
year (1,702,144) (4,635,325)
Net current liabilities (827,248) (2,802,995)
Total assets less current liabilities 19,594,540 18,178,041
income funds
Restricted funds 26 701,455 713,225
Unrestricted funds
Designated funds 27 11,727 11,960
General unrestricted funds 28 18,881,358 17,452,856
Unrestricted funds 18,893,085 17,464,816
19,594,540 18,178,041

The financial statements were approved by the board of trustees and authorised for issue on 18 [bla and are signed on its behalf by:

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YY Justa Waa MJ.— Heo
Reverend Nicholas Philip Wetz (Abbot) (Controller of the Trust) Rev Martin Joseph Hood
Trustee a
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DOWNSIDE ABBEY GENERAL TRUST

BALANCE SHEET

AS AT 30 SEPTEMBER 2020

2020 2019
Notes £ £ £ £
Fixed assets
Tangible assets 17 10,841,017 11,253,524
Investment properties 18 9,098,734 9,209,400
Investments 19 482,039 518,114
20,421,790 20,981,038
Current assets
Stocks 21 71,218 27,182
Debtors falling due after one year 22 - 20,000
Debtors falling due within oneyear 22 543,055 1,455,045
Cash at bank and in hand 260,623 330,278
874,896 1,832,505
Creditors: amounts falling due within one 24
year (1,702,146) (4,619,205)
Net current liabilities (827,250) (2,786,700)
Total assets less current liabilities 19,594,540 18,194,338
Income funds
Restricted funds 26 701,455 713,225
Unrestricted funds
Designated funds r
ie		 27 11,727 11,960
General unrestricted funds 28 18,881,358 17,469,153
18,893,085 17,481,113
19,594,540 18,194,338
Thefinancial statementswereapproved by the board oftrusteesandauthorised
signedonitsbehalfby:		 authorisedfor issueon on[socandare

Kucal Wate | Reverend Nicholas Philip Wetz (Abbot) (Controller of the Trust) Trustee

_ Ing: Hed

Rev Martin Joseph Hood Trustee

Company Registration No. 09124570

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DOWNSIDE ABBEY GENERAL TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2020

1 Accounting policies

Charity information

Downside Abbey General Trust is a private company limited by guarantee incorporated in England and Wales. The registered office is Downside Abbey, Stratton-on-the-Fosse, RADSTOCK, BA3 4RH.

1.1 Accounting convention

The financial statements have been prepared in accordance with the charity's Memorandum and Articles, the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)". The charity is a Public Benefit Entity as defined by FRS 102.

The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

Reporting period

The 2019 comparatives covered a 13 month period. They were extended to 30 September 2019 as the charity required an extension to legally complete the separation of the school from the monastery. Transactions and balances related to the school included within this entity after the split on 11 September 2019 are now shown ina separate entity. Therefore, the comparative amounts presented in the financial statements (including the related notes) are not entirely comparable.

In light of the current coronavirus pandemic, the trustees have reviewed likely future developments and remain of the opinion that there is no reason to believe that the charity will have to cease operating as a result of inadequate financial resources, or any other foreseeable event, within a period of at least 12 months from the date of the approval of these accounts.

1.3. Charitable funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives unless the funds have been designated for other purposes.

Designated funds comprise funds which have been set aside at the discretion of the trustees for specific purposes. The purposes and uses of the designated funds are set out in the notes to the accounts.

Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the accounts.

1.4 Incoming resources

Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

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DOWNSIDE ABBEY GENERAL TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2020

1 Accounting policies

(Continued)

Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.

Income from government and other grants, whether ‘capital’ grants or ‘revenue’ grants, is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred.

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity, this is normally upon notification of the interest paid or payable by the bank.

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 allowances, scholarships and other remissions granted by the Trust.

1.5 Resources expended

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. The irrecoverable element of VAT is included within the item of expense to which it relates.

Where an item of expenditure falls directly within one cost category it is attributed to that category only. Where expenditure involves more than one category it is apportioned on a reasonable and justifiable basis.

Fundraising costs are those incurred in seeking voluntary contributions and include the costs of disseminating information in support of the charitable activities. Support costs are those costs incurred directly in support of expenditure on the objects of the charity. Governance costs are those incurred in connection with administration of the charity and compliance with constitutional and statutory requirements.

1.6 Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses. :

Abbey Church and Monastery

The Abbey Church and Monastery are considered integral to the activities of the charity. This gives rise to difficulties in ascertaining an estimate of the current cost of construction of an asset that has the same service potential. A new structure could recreate a similar sized space but would not recreate the uniqueness of the original buildings. No information on original cost is available and it is considered that conventional valuation techniques would be inappropriate and impracticable for buildings of such an age used only for religious purposes. With the age of these buildings and as a depreciating asset over that time the current carrying value at cost is deemed immaterial.

In line with FRS102, certain subsequent expenditure (over £5,000) on these buildings has been capitalised on the basis that the expenditure enhances the previously assessed standard of performance.

-~18-

DOWNSIDE ABBEY GENERAL TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2020

1 Accounting policies

(Continued)

Abbey Village Properties

The primary aim of holding village properties is to provide accommodation for employees and former employees of the Abbey and School: a charitable use. Where a village property is not required in the short term to be used for charitable purposes it is rented at arms length to a third party on an assured shorthold tenancy. Village properties identified as surplus to charitable requirements are reclassified as investment properties.

Village properties were revalued by Cluttons, Chartered Surveyors, on 31 July 2013 on an open market non-vacant possession value basis in accordance with the Royal Institution of Chartered Surveyors Appraisal and Valuation Manual. The trustees believe that this valuation is still correct at 30 September 2020.

Other Buildings

The Monastery Library and certain School buildings have been capitalised at an estimated cost based on indexing back reinstatement insurance values to the year of acquisition. Other buildings with cost in excess of £5,000 have been capitalised at cost.

Library Books and Religious Artefacts

Certain religious artefacts have been valued for insurance purposes. Their cost is estimated by indexing back reinstatement insurance values at 31 July 2011 to the approximate year of acquisition.

Where no reliable information is available on the library books' and certain religious artefacts’ original cost or valuation these assets have not been capitalised. It is considered that significant costs are involved in obtaining a valuation and these would be onerous compared with the additional benefit derived by users of the accounts in assessing the Trustees’ stewardship of the assets. ,

The books are held in the library under conditions to ensure the books are preserved.

Capitalisation Threshold

All other tangible fixed assets costing more than £5,000 are capitalised.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Land and buildings 40 - 190 Years Straight Line Fixtures, fittings & equipment 5 - 33.3% Straight Line Motor vehicles 20% Straight Line

included with freehold land and buildings are house properties and land which are not being depreciated.

-19-

DOWNSIDE ABBEY GENERAL TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2020

1 Accounting policies

(Continued)

There is a rolling programme of maintenance and repair (charges for which are made to the profit and loss accounts) such that the village properties are retained at their previously assessed standard of performance. Consequently the useful economic life of these buildings is extended, and the estimated residual value at the end of their useful economic lives is not materially different from the original costs. Therefore, no depreciation charge is made on the grounds it would be immaterial.

Paintings and religious artefacts are maintained in such a state of repair that their estimated residual value is not fess than their carrying amount and thus the annual charge for depreciation is Enil.

Annual impairment reviews of freehold buildings and religious artefacts with an expected life of more than 50 years and of house properties have been carried out in accordance with the requirements detailed in note 1.9 below. So far these have confirmed that the service potential of these assets remains undiminished.

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in net income/{expenditure) for the year.

On the last day of the accounting period in 2015, certain assets were transferred from the unincorporated charity to the incorporated charity. These assets were transferred at their Net Book Value at the date of transfer. Depreciation has been calculated in line with the charity’s depreciation policy, based on the original cost to the unincorporated charity and taking into account the remaining useful life of these assets.

1.7. Investment properties

investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. The surplus or deficit on revaluation is recognised in profit or loss.

1.8 Fixed asset investments

Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year. Transaction costs are expensed as incurred.

A subsidiary is an entity controlled by the charity. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.9 Impairment of fixed assets

At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. tf any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

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DOWNSIDE ABBEY GENERAL TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2020

1 Accounting policies

(Continued)

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. An impairment loss is recognised immediately in income/(expenditure for the year, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised immediately, unless the relevant asset is carried in at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.10 Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition. Items held for distribution at no or nominal consideration are measured the lower of replacement cost and cost.

Net realisable value is the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution.

1.11 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors, cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

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DOWNSIDE ABBEY GENERAL TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2020

1 Accounting policies

(Continued)

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition offinancial liabilities

Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.

1.13 Taxation

The trust, being a registered charity, is exempt from any taxation with the exception of Value Added Tax.

1.14 Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.15 Retirement benefits

Retirement benefits to employees of the school are provided by the Teachers’ Pension Scheme (‘TPS’) and the non academic pension staff pension scheme.

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 quadrennial valuations using a prospective unit credit method. As stated in note 26, the TPS is a multi-employer scheme and there is insufficient information available to use defined benefit accounting. The TPS is therefore treated as a defined contribution scheme for accounting purposes and the contributions recognised in the period to which they relate.

The non academic pension staff pension scheme arrangement is a defined contribution scheme where the assets of the schemes are held separately from those of the School in an independently administered fund. Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.16 Leases

Rentals payable under operating leases, including any lease incentives received, are charged as an expense on a straight line basis over the term of the relevant lease.

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the term.

-22-

DOWNSIDE ABBEY GENERAL TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 30 SEPTEMBER 2020

1 Accounting policies

(Continued)

1.17 Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation are included in net income/(expenditure) for the period.

1.18 Group financial statements

These financial statements consolidate the results of the Trust and its wholly owned non-charitable subsidiary trading company Downside Enterprise Limited on a line by line basis. A separate Statement of Financial Activities and Income & Expenditure Account for the charity has not been presented because the Trust has taken advantage of the exemption afforded by section 408 of the Companies Act 2006.

The donation made by the subsidiary to the Trust and balances between the two entities have been eliminated on consolidation.

The two entities have coterminous year ends and the accounting policies are consistent across the group.

1.19 Fees Received In Advance

The School offers parents the opportunity to pay for up to five years tuition fees in advance in accordance with a written contract. This is treated as deferred income until the pupil joins the School whereupon the fees for each School term are charged against the remaining balance and taken to income. Al! amounts are included in creditors due within one year as the amounts are repayable on demand if the pupil leaves.

1.20 Prepayments

During the summer holiday the Trust incurs expenditure on books and materials. The Trust's policy is that these costs relate to preparing the Trust for the next academic year and are therefore carried forward.

2 Critical accounting estimates and judgements

In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Key sources of estimation uncertainty

Depreciation

The trustees use their knowledge of the charity and the school sector to estimate the useful life and residual value of tangible fixed assets in order to arrive at an applicable depreciation rate. In accordance with section 17 of FRS102, the trustees review and update these estimates if there are indicators that current estimates should change.

It must be noted that there is inherent uncertainty with these estimates as factors such as unexpected wear and tear, technological advancement and changes in market price may result in future changes to the appropriate rate of depreciation.

-23-

DOWNSIDE ABBEY GENERAL TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2020

3 Financial Performance of the charity

The consolidated statement of financial activities includes the results of the charity's wholly owned subsidiary which operates the shops.

Exemptions conferred by s408 Companies Act 2006 is being relied on, so the summary financial performance of the charity alone is:

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||||||| |---|---|---|---|---|---| |2020|2019| |£|£| |Income|2,249,283|10,714,790| |Donation|from|subsidiary company|1,221|-| |2,250,504|10,714,790| |Expenditure|(1,212,894)|(12,126,556)| |Gains|on|investment|asset|362,592|766,981| |1,400,202|(644,785)| |Total|funds|brought|forward|18,194,338|18,839,123| |Total|funds|carried|forward|19,594,540|18,194,338| |Represented|by:| |Restricted|funds|701,455|713,225| |Designated|funds|11,727|11,960| |Unrestricted|funds|18,881,358|17,469,153| |19,594,540|18,194,338|

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4 Donations and legacies

----- Start of picture text -----
|||||||||| |---|---|---|---|---|---|---|---|---| |Unrestricted|Unrestricted|Restricted|Total|Total| |funds|funds|funds|2020|2019| |general|designated| |£|£|£|£|£| |Donations,|gifts|and|legacies|117,304|-|32,112|149,416|285,213| |Grant|income|24,277|-|-|24,277|-| |Other|74,313|-|-|74,313|32,532| |215,894|-|32,112|248,006|317,745| |For the year ended|30 September 2019|81,795|417|235,533|317,745|

----- End of picture text -----

-24-

DOWNSIDE ABBEY GENERAL TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 30 SEPTEMBER 2020

5 Charitable activities

Educational Monastic Total Total
Income Income 2020 2019
£ £ £ £
School Fees - - - 8,931,198
Ancillary activities income - - - 15,421
Charitable rental income - 439,436 439,436 479,439
Other income - (3,266) (3,266) 51,216
- 436,170 436,170 9,477,274
School Fees comprises ofthe following: 2019
£
Gross Fees 10,910,542
Less: Total Scholarships, Bursaries and Fee Assistance (1,979,344)
SchoolFees 8,931,198

-~25-

DOWNSIDE ABBEY GENERAL TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2020

6 Income from trading subsidiary

Income fromfrom trading subsidiary
2020 2019
£ £
Turnover and other income 16,941 312,359
Cost ofsales and administration costs 577 (329,020)
Rent receivable - ~
Interest payable tothe charity - (1,083)
Net Profit 17,518 (17,744)
Donation tothe charity (1,221) -
Profit/(loss)fortheyear 16,297 (17,744)
The assets and liabilites ofthe subsidiary were:
Current assets 2 38,212
Current liabilites - (34,507)
Non current liabilites - (20,000)
Total net assets 2 (16,295)
Aggregatesharecapitalandreserves 2 (16,295)

The Charity has a wholly-owned trading subsidiary which is incorporated in the UK. Downside Enterprise Limited (Registered Company No. 02456168) operates the shops and its Registered Office is Downside Abbey, Stratton-onthe-Fosse, Radstock, BA3 4RH. A summary of its trading results is shown above. Audited accounts have been filed with the Registrar of Companies.

The directors of Downside Enterprise Limited have determined that on the year end date, the company would become dormant. Consequently, all the assets, liabilities and reserves have been transferred to Downside Abbey General Trust to leave the balance sheet with a total net asset value of £2, which relates to the share capital. The directors intend to keep this entity in existence for the foreseeable future.

-26-

DOWNSIDE ABBEY GENERAL TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2020

7 Investments

----- Start of picture text -----
||||||||||| |---|---|---|---|---|---|---|---|---|---| |Unrestricted|Unrestricted|Restricted|Total|Total| |funds|funds|funds|2020|2019| |general|designated| |£|£|£|£|£| |Rental|income|323,693|-|-|323,693|341,704| |Dividends|from|Investments|listed|on|a| |recognised|stock|exchange|-|154|14,219|14,373|20,520| |Interest|receivable|1,110|-|-|1,110|1,135| |324,803|154|14,219|339,176|363,359| |For the|year ended|30 September|2019|342,837|143|20,379|363,359| |Other| |2020|2019| |£|£| |Other|income|42,974|(30,972)| |Heritage|asset|sales|653,324|-| |Profit/(loss)|on|the|disposals|of investment|properties|&|Downside|Mission|Trust| |churches|529,633|572,967| |1,225,931|541,995| |For the|year ended|30 September 2019|541,995|

----- End of picture text -----

8 Other

As explained in more detail in note 1.6, the charity holds heritage assets with a £nil carrying value. Therefore, all of the proceeds received are recognised as gain on the sale of heritage assets within other income.

It was agreed with Downside Mission Trust that any proceeds from the sale of their churches will be recognised in this charity.

-27-

DOWNSIDE ABBEY GENERAL TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 30 SEPTEMBER 2020

9 Raising funds

2020 2019
£ £
Fundraising and publicity
Financing costs - 309,113
Fundraising other costs 12,647 23,348
Fundraising staffcosts 79,577 117,582
Fundraising and publicity 92,224 450,043
Trading costs
Othertrading activities - 307,978
92,224 758,021
10 Grants payable
Monastic Monastic
2020 2019
£ £
Grants to institutions:
DownsideSchool 2,356 217,615

As part of the separation agreement, assets & liabilities previously recognised in this entity but related to the school were transferred in 2019. The net value of these transactions resulted in this entity making a grant to Downside School.

DOWNSIDE ABBEY GENERAL TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2020

11. ~=— Charitable activities

Educational Monastic Total Total
2020 2019
£ £ £ £
Staffcosts - 55,337 55,337 6,647,886
Depreciation and impairment - 422,550 422,550 787,814
Teaching - - - 960,527
Welfare - 139,443 139,443 950,431
Premises - 229,383 229,383 884,442
Support - 149,616 149,616 1,156,177
- 996,329 996,329 11,387,277
Grantfunding ofactivities (see note 10) - 2,356 2,356 217,615
Share ofgovernance costs (see note 13) - 121,409 121,409 92,661
- 1,120,094 1,120,094 11,697,553
Analysis byfund
Unrestricted funds - general - 1,097,681 1,097,681
Restricted funds - 22,413 22,413
- 1,120,094 1,120,094
Forthe yearended 30September2019
Unrestricted funds -general 7,656,508 3,997,105 11,653,613
Unrestricted funds - designated 1,975 - 1,975
Restricted funds 31,311 10,654 41,965
7,689,794 4,007,759 11,697,553

12 ~=—s Trustees

None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year. Two of them were reimbursed for travelling expenses for a total of £340.

The Charity provides board and living expenses for the Trustees who are Monks of Downside Abbey.

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DOWNSIDE ABBEY GENERAL TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 30 SEPTEMBER 2020

13 Support & Governance costs

Support costs Governance 2020 2019 Basis ofallocation
costs
£ £ £ £
Staff costs - 99,587 99,587 25,805
Audit fees - 12,240 12,240 23,580 Governance
Legal and professional ~ 9,242 9,242 12,033 Governance
Governors meetings - 340 340 31,243 Governance
- 121,409 121,409 92,661
Analysed between
Charitableactivities - 121,409 121,409 92,661

In addition to the audit costs shown above and included within the expenses of the Trust are fees payable to the auditor for other services of £9,242 (2019:£12,033).

Included within the administration expenses of the trading subsidiary as disclosed in note 6 are audit fees of £2,150 (2019:£4,100).

The Trust has legal liability insurance that covers the liability of the Trustees up to a limit of £1 million. The premiums paid for this cover were £1,274 (2019:£3,949).

-30-

DOWNSIDE ABBEY GENERAL TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 30 SEPTEMBER 2020

14 Employees

Number of employees

The average monthly number of employees during the year was:

----- Start of picture text -----
|||||| |---|---|---|---|---| |2020|2019| |Number|Number| |Voluntary|2|2| |Trading|Company|1|3| |Teaching|-|89| |Welfare|-|22| |Premises|3|39| |Support|5|28| |11|183| |Employment|costs|2020|2019| |£|£| |Wages|and|salaries|208,349|5,816,353| |Social|security|costs|16,875|489,015| |Other|pension|costs|9,277|521,600| |234,501|6,826,968|

----- End of picture text -----

Within employment costs shown above are £79,577 (2019:£119,666) in relation to raising funds shown in note 8; £6,160 (2019:£35,695) in relation to the trading subsidiary which is included in “other trading activities" in note 8 and £99,587 (2019:£25,805) in relation to governance cost shown in note 12. The remaining amount is included within charitable activities on note 10.

The number of employees whose annual remuneration was £60,000 or more

were:

----- Start of picture text -----
|||||| |---|---|---|---|---| |2020|2019| |Number|Number| |£60,000|-|£69,999|-|2| |£70,000|-|£79,999|-|2| |£80,000|-|£89,999|-|1| |£130,000|-|£139,999|-|1| |£170,000|- £179,999|-|1|

----- End of picture text -----

The contributions for the provision of retirement benefits for staff within these bands were fnil (2019:£84,091).

-31-

DOWNSIDE ABBEY GENERAL TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2020

15 Net gains/(losses) on investments

----- Start of picture text -----
||||||||| |---|---|---|---|---|---|---|---| |Unrestricted|Unrestricted|Restricted|Total|Total| |funds|funds|funds|2020|2019| |general|designated| |£|£|£|£|£| |Revaluation|of investments|-|(387)|(35,688)|(36,075)|40,570| |Revalution|of investment|properties|398,667|-|-|398,667|739,744| |398,667|(387)|(35,688)|362,592|780,314| |For the|year ended|30 September 2019|739,744|275|40,295|780,314|

----- End of picture text -----

16 Discontinued operations

On 11 September 2019, this charitable company legally completed the split of the school element and the monastery element of the charity into two entities. The monastic part remains within this entity, with the school results to be shown within Downside School (Company Number 11751009) going forward.

17‘ Tangible fixed assets - charity (also comprising that of the group)

----- Start of picture text -----
||||||||| |---|---|---|---|---|---|---|---| |Land|and|Fixtures, fittings|Motor vehicles|Total| |buildings|& equipment| |£|£|£|£| |Cost| |At|1|October|2019|11,495,416|930,787|11,855|12,438,058| |Prior|Year Adjustment|-|_|287,240|-|287,240| |Additions|37,952|52,728|-|90,680| |Disposals|(10,388)|(6,251)|-|(16,639)| |Transfer|between|asset|category|(781,726)|781,726|-|-| |Transfer to|investment|property|(64,000)|-|-|(64,000)| |At|30|September|2020|10,677,254|2,046,230|11,855|12,735,339| |Depreciation|and|impairment| |At|1|October|2019|1,129,910|47,935|6,689|1,184,534| |Prior Year Adjustment|-|287,238|-|287,238| |Depreciation|charged|in|the year|283,679|137,100|1,771|422,550| |Transfer|between|asset|category|(179,478)|179,478|-|-| |At|30|September 2020|1,234,111|651,751|8,460|1,894,322| |Carrying amount| |At 30 September 2020|9,443,143|1,394,479|3,395|10,841,017| |At|30 September 2019|10,365,506|882,852|5,166|11,253,524|

----- End of picture text -----

-~32-

DOWNSIDE ABBEY GENERAL TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2020

17 =‘Tangible fixed assets - charity (also comprising that of the group)

(Continued)

During the year management undertook a detailed review of the fixed asset register and identified that some of the assets need to be reclassified into a more appropriate asset category, hence the transfer of assets in the year.

in addition, management found that there were certain assets where the full cost and depreciation had not been recognised in the prior period tangible fixed asset note and these are shown above. However, the Net Book Value of these assets are £2 so do not make a material difference to the overall tangible fixed asset value in last year’s financial statements. Therefore, the prior year results are not considered to require a restatement.

18 Investment property - charity (also comprising that of the group)

Investment property - charity (also comprising that of thethe group)
2020
£
Fairvalue
At 1 October 2019 9,209,400
Transfers from owner-occupied property 64,000
Disposals (573,333)
Net gains or losses through fairvalue adjustments 398,667
At30September2020 9,098,734

Investment property comprises of farm buildings, farm land and village properties identified as surplus to charitable requirements and are shown at market value at the balance sheet date. The properties continue to be rented during the year.

The fair value of the farm land and buildings has been arrived at on the basis of a valuation carried out in September 2020 by Cooper and Tanner LLP, who are not connected with the charity. Cooper and Tanner LLP is a member of The Central Association of Agricultural Valuers. The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties.

The village properties were valued by the Trustees based on an expected rental yield for residential properties.

19 ~—~* Fixed asset investments

Listed Investment in Total
investments subsidiary
£ £
Cost or valuation
At 30September2020 518,112 2 518,114
Valuation changes (36,075) - (36,075)
At 30 September2020 482,037 2 482,039
Carryingamount
At 30 September2020 482,037 2 482,039
At30September2019 518,112 2 518,114

~33-

DOWNSIDE ABBEY GENERAL TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 30 SEPTEMBER 2020

19 ‘Fixed asset investments

(Continued)

----- Start of picture text -----
||||||||||| |---|---|---|---|---|---|---|---|---|---| |Shareholdings|which|individually|represent|more than|5%|of the|group's|investments|are:| |No of shares|Investments|Market value| |357,223.44|Global|Growth|and|Income|Fund|for|Charities|£482,037| |Group|Charity| |2020|2019|2020|2019| |Other investments|comprise:|Notes|£|£|£|£| |Investments|in|subsidiaries|34|~|-|2|2| |20|‘Financial|instruments|Group|Charity| |2020|2019|2020|2019| |£|£|£|£| |Carrying|amount|of financial|assets| |Debt|instruments|measured|at|amortised|cost|396,383|1,355,543|396,383|1,355,004| |Equity|instruments|measured|at|cost|less| |impairment|482,035|518,110|482,037|518,112| |Carrying amount|of financial|liabilities| |Measured|at|amortised|cost|1,695,682|4,624,529|1,695,682|4,612,460| |21|=|Stocks|Group|Charity| |2020|2019|2020|2019| |£|£|£|£| |Finished goods|and|goods|for|resale|71,218|51,032|71,218|27,182|

----- End of picture text -----

-34-

22 ~+Debtors

DOWNSIDE ABBEY GENERAL TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2020

~+Debtors
Group Charity
2020 2019 2020 2019
Amounts falling due within one year: £ £ £ £
Trade debtors 154,622 2,426 154,622 2,426
Amounts duefrom subsidiary undertakings - - - 18,387
Other debtors 241,761 1,314,730 241,761 1,314,191
Prepayments and accrued income 146,672 130,067 146,672 120,041
543,055 1,447,223 543,055 1,455,045
Amountsfallingdue after morethan one year:
Amounts duefrom subsidiary undertakings - - - 20,000
Totaldebtors 543,055 1,447,223 543,055 1,475,045

Charity debtors over one year include an amount of £nil (2019:£20,000) in respect of a formal loan to the subsidiary undertaking, Downside Enterprise Limited, that is likely to fall due after more than one year. The !oan has no fixed repayment terms and interest is currently being charged at 5% per annum. The loan is secured by a floating charge over the trading company’s assets. As part of the process of Downside Enterprises Limited becoming a dormant company, the £20,000 loan was repaid.

23 _ Loans and overdrafts

_ Loans andLoans andand overdrafts
2020 2019
£ £
Other loans 500,000 -
Payablewithinoneyear 500,000 -

The loan is secured by by way of legal mortgage over a property owned by the Trust, it is a 5 year loan which was expected to be fully repaid by 30 September 2025, and has an interest rate of 4% above base rate. After the year end the charity has been able to repay this loan, hence its classification as payable within one year.

-35-

DOWNSIDE ABBEY GENERAL TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 30 SEPTEMBER 2020

24 ~ Creditors:amountsfallingduewithin oneyear Group Charity
2020 2019 2020 2019
£ £ £ £
Borrowings 500,000 - 500,000 -
Othertaxation and social security 6,464 9,414 6,464 6,745
Trade creditors 196,306 350,809 196,306 349,427
Other creditors 681,195 3,883,425 681,197 3,883,425
Accruals and deferred income 318,179 391,677 318,179 379,608
1,702,144 4,635,325 1,702,146 4,619,205

DOWNSIDE ABBEY GENERAL TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2020

25 ~—— Retirement benefit schemes

Defined contribution schemes

Teachers' Pension Scheme

The Teachers’ Pension Scheme (TPS) is a statutory, contributory, defined benefit scheme, governed by the Teachers’ Pensions Scheme Regulations 2014. Membership is automatic for full-time teachers in academies and, from 1 January 2007, automatic for teachers in part-time employment following appointment or a change of contract, although they are able to opt out.

The TPS is an unfunded scheme and members contribute on a ‘pay as you go’ basis — these contributions along with those made by employers are credited to the Exchequer. Retirement and other pension benefits are paid by public funds provided by Parliament.

Valuation of the Teachers’ Pension Scheme

The Government Actuary, using normal actuarial principles, conducts a formal actuarial review of the TPS in accordance with the Public Service Pensions (Valuations and Employer Cost Cap) Directions 2014 published by HM Treasury. The aim of the review is to specify the level of future contributions. Actuarial scheme valuations are dependent on assumptions about the value of future costs, design of benefits and many other factors. The latest actuarial valuation of the TPS was carried out as at 31 March 2012 and in accordance with the Public Service Pensions (Valuations and Employer Cost Cap) Directions 2014. The valuation was published by the Department for Education on 9 June 2014. The key elements of the valuation and subsequent consultation are:

The TPS valuation for 2012 determined an employer rate of 16.4%, which was payable from September 2015. The next valuation of the TPS is currently underway based on April 2016 data, whereupon the employer contribution rate is expected to be reassessed and will be payable from 1 September 2019.

The employer’s pension costs paid to TPS in the period amounted to £nil (2019:£415,888). At the year-end £nil (2019:£19,092) was accrued in respect of contributions to this scheme.

A copy of the valuation report and supporting documentation is on the Teachers’ Pensions website.

Under the definitions set out in FRS 102, the TPS is a multi-employer pension scheme. The school has accounted for its contributions to the scheme as if it were a defined contribution scheme. The school has set out above the information available on the scheme.

Non-academic Staff Pension Scheme

The Charity also runs a scheme for its non-teaching staff, which is a defined contributions scheme. The cost for the year represents the Charity's contributions to that scheme of £9,277 (2019:£105,414). At the year-end £1,150 (2019: £352) was accrued in respect of contributions to this scheme.

-37-

DOWNSIDE ABBEY GENERAL TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2020

26 Restricted funds

The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:

Movement in funds Movement in funds Movement in funds
Balance at 1 Incoming Resources Gains,Losses Balance at 30
October 2019 resources expended and Transfers September 2020
£ £ £ £ £
Ecclesistical Education 214,771 5,262 (9,357) (11,368) 199,308
AbbeyChurch Extension 173,636 21,585 (5,092) (8,144) 181,985
Friends of Downside 510 350 (50) - 810
StVedast Fund 232,134 16,810 (7,914) (11,660) 229,370
Other Funds 92,174 2,324 - (4,516) 89,982
713,225 46,331 (22,413) (35,688) 701,455
PriorYear Movement in funds
Balance at 1 Incoming Resources Gains, Losses Balance at 30
September resources expended andTransfersSeptember TransfersSeptember2019
2018
£ £ £ £ £
Scholarships & Bursaries 140,000 3,858 - (143,858) -
School Prize Funds 10,959 676 (500) (11,135) -
Ecclesistical Education 208,328 8,841 (10,476) 8,078 214,771
Abbey Church Extension 148,819 19,030 - 5,787 173,636
Friends of Downside - 510 - - 510
Old Gregorian Bursary Fund 61,560 3,120 - (64,680) -
Downside Development Fund (25,078) 207,378 (29,605) (152,695) -
St Vedast Fund 213,682 10,167 - 8,285 232,134
Other Funds 95,133 2,332 (1,383) (3,908) 92,174
853,403 255,912 (41,964) (354,126) 713,225

DOWNSIDE ABBEY GENERAL TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 30 SEPTEMBER 2020

26 ~—s* Restricted funds

(Continued)

St Gregory's Charitable Trust provides funds for scholarships and bursaries.

The School Prize Fund provides funds for prizes at the annual prize day.

The Ecclesiastical Education Fund provides for education in England or elsewhere of students for the Roman Catholic priesthood,

The Abbey Church Extension Fund provides for the extension, upkeep or repair of the Abbey Church at Downside.

The Old Gregorians Bursary Fund comprises donated shares to provide funding for bursaries for the children of former pupils of Downside.

The Downside Development Fund is to provide funds for academic and non academic facilities and resources in the School, the award of bursaries and the development of the facilities of the Abbey.

The St Vedast Fund provides support to elderly members of the community.

Sufficient resources are held in an appropriate form for each fund to enable the fund to be applied in accordance with the restriction.

-39-

DOWNSIDE ABBEY GENERAL TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 30 SEPTEMBER 2020

27 ‘Unrestricted funds - designated

These are unrestricted funds which are material to the charity's activities made up as follows:

Movement in funds Movement in funds Movement in funds
Balance at 1 incoming Resources Gains, Losses Balance at30
October2019 resources expended and Transfers September2020
£ £ £ £ £
Sundry Funds 11,960 ; 154 - (387) 11,727
Prioryear Movement in funds
Balance at 1 Incoming Resources Gains, Losses Balance at30
September resources expended andTransfers September2019
2018
£ £ £ £ £
SundryFunds 13,100 560 (1,975) 275 11,960

Sundry funds comprises of small funds for various purposes such as scholarships and bursaries.

DOWNSIDE ABBEY GENERAL TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 30 SEPTEMBER 2020

28 Unrestricted funds

The income funds of the charity include the following designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes:

Movement in funds Movement in funds Movement in funds
Balance at 1 Incoming Resources Gains, Losses Balance at30
October2019 resources expended and Transfers September2020
£ £ £ £ £
General funds — - 17,452,857 2,219,739 (1,189,905) 398,667 18,881,358
Total unrestrictedfunds funds 17,452,857 2,219,739 (1,189,905) 398,667 18,881,358
PriorYear Movement in funds
Balance at 1 Incoming Resources Gains, Losses Balance at 30
September resources expended andTransfers September2019
2018
£ £ £ £ £
General funds 17,974,067 10,756,260 (12,411,634) 1,134,164 17,452,857
Totalunrestricted funds 17,974,067 10,756,260 (12,411,634) 1,134,164 17,452,857

-A1-

DOWNSIDE ABBEY GENERAL TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2020

29 ~~—Analysis ofgroup netassets betweenfunds
Unrestricted Designated Restricted Total
£ £ £ £
Fund balances at 30 September 2020 are
represented by:
Tangible assets 410,841,017 - - 10,841,017
Investment properties 9,098,734 - - 9,098,734
Investments - 11,192 470,847 482,039
Current assets/(liabilities) (1,058,393) 535 230,608 (827,250)
18,881,358 11,727 701,455 19,594,540
Prioryear
Analysis ofgroup net assets between funds
Unrestricted Designated Restricted Total
£ £ £ £
Fund balances at 30 September are represented
by:
Tangible assets 11,253,524 - - 11,253,524
Investment properties 9,209,400 - - 9,209,400
Investments - 11,425 506,689 518,114
Current assets/(liabilities) (3,010,067) 535 206,536 (2,802,996)
Longterm liabilities - - - -
17,452,857 11,960 713,225 18,178,042

The trustees reviewed their analysis of net asset between funds for both the current and prior year in more detail. Previously all restricted funds and some designated funds were classed as current assets/(liabilities) but as a large portion of these are linked to investments it was felt that this note should be updated to fairer reflect the position of the funds at the year end. Overall there is no change in the amount of unrestricted, designated and restricted funds at the year end.

30 ~—s- Financial commitments, guarantees and contingent liabilities

The land and buildings and investment properties of this charity, act as security for a £2,725,000 loan which Downside School (Company Number: 11751009 and Charity Number:1184700) have taken out. If the School is unable to keep up with the required repayments then these assets will act as collateral against the loan.

-42-

DOWNSIDE ABBEY GENERAL TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 30 SEPTEMBER 2020

31 Operating lease commitments

Lessor

The operating lease represents the lease of the premises to Downside School. The lease commenced on 30 September 2019 and is subject to a five yearly rent review.

At the reporting end date the charity had contracted with tenants for the following minimum lease payments:

2020 2019
£ £
Within one year 425,000 425,000
Between two and five years 1,275,000 1,700,000
1,700,000 2,125,000

32 ~—~ Related party transactions

Remuneration of key management personnel

The remuneration of key management personnel, which includes the Headmaster, the deputy head, the chief executive and the director of external communications plus their spouses where applicable, is as follows.

2020 2019
£ £
Aggregate compensation - 451,886

Transactions with related parties

During the year the charity entered into the following transactions with related parties:

2020 2019
£ £
Entities overwhich the entity has control, joint control or significant influence - 14,225
Parish priests 17,500 15,000
Parish expenses (29,375) 19,978
(11,875) 49,203

-43-

DOWNSIDE ABBEY GENERAL TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2020

32.‘ Related party transactions

(Continued)

The following amounts were outstanding at the reporting end date:

----- Start of picture text -----
||||||||| |---|---|---|---|---|---|---|---| |Amounts owed|by|related|Amounts|owed|by|related| |parties|Parties| |2020|2019| |Balance|Net|Balance|Net| |£|£|£|£| |Entities|over|which|the|entity|has|control,|joint| |control|or|significant|influence|-|-|9,911|9,911| |Parish|priests|7,500|7,500|40,000|40,000| |Parish|expenses|-|-|29,375|29,375| |7,500|7,500|79,286|79,286|

----- End of picture text -----

The above balance, due from Downside Abbey Missions Trust, at 30 September 2020 is for the group, the amount owed to the charity only totalled £7,500 (2019:£79,286).

The assets of Downside Abbey Missions Trust are held separately from those of Downside Abbey General Trust.

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|||||||||| |---|---|---|---|---|---|---|---|---| |33|= Capital commitments|2020|2019| |£|£| |At|30 September 2020 the|charity|had|capital|commitments|as|follows:| |Contracted|for|but|not|provided|in|the|financial|statements:| |Essential|repair work to|school|property|4,000,000|4,000,000|

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As part of the separation agreement, Downside Abbey General Trust have agreed to pay up to £4m for essential repair work to the school property. There is no fixed date on when this work will take place and when this money will be required to be paid to Downside School.

34 Subsidiaries

These financial statements are consolidated charity financial statements.

Details of the charity's subsidiary at 30 September 2020 are as follows:

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|||||||||||| |---|---|---|---|---|---|---|---|---|---|---| |Name|of undertaking|and|country of|Nature|of business|Class|of|%|Held| |incorporation|or residency|shareholding|Direct|Indirect| |Downside|Enterprise|UK|Operating|the|bookshop.|In|2019|it|Ordinary|Shares| |Limited|also|operated|the|School|Shop|&| |Theatre|Café|100.00|-|

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DOWNSIDE ABBEY GENERAL TRUST

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2020

35 __ Analysis of changes in net debt

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|||||||||||| |---|---|---|---|---|---|---|---|---|---|---| |At|1|October 2019|Cash|flows|At|30 September| |2020| |£|£|£| |Cash|at|bank|and|in|hand|330,278|(69,655)|260,623| |Loans|falling|due|within|one|year|-|(500,000)|(500,000)| |330,278|(569,655)|(239,377)| |36|Cash|generated|from|operations|Group|Charity| |2020|2019|2020|2019| |£|£|£|£| |Surplus/(deficit)|for the year|1,416,499|(662,528)|1,400,202|(644,785)| |Adjustments|for:| |Investment|income|recognised|in|profit|or|loss|(339,176)|(363,359)|(339,176)|(364,442)| |Loss|on|disposal|of investment|property|70,837|(101,467)|70,837|(101,467)| |Loss|on|disposal|of tangible|assets|16,637|-|16,637|-| |Fair value|gains|and|losses|on|investment| |properties|(398,667)|(739,744)|(398,667)|(739,744)| |Fair value|gains|and|losses|on|investments|36,075|(40,570)|36,075|(40,570)| |Depreciation|and|impairment|of tangible|fixed| |assets|422,550|787,814|422,550|787,814| |Movements|in|working|capital:| |(Increase)/decrease|in|stocks|(20,186)|157,652|(44,036)|30,219| |Decrease|in|debtors|942,553|156,366|931,990|286,981| |(Decrease)/increase|in|creditors|(3,471,566)|1,442,654|(3,417,059)|1,441,421| |(Decrease)|in|deferred|income|-|(461,766)|-|(461,766)| |Cash|(absorbed|by)/generated from|operations|(1,324,444)|175,052|(1,320,647)|193,661|

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