2024-12-31-accounts

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WALSlP*GHAM TRUST (A ¢ompany limiied by guarknttt) ANNUAL REPORT AND Fll¥ANCIAL STATEMENTS YEAR ENDED 3A DECEMBER 2024 Companv number. 11655451 R)stered Charity Nurnber 118069)

WALSINGHAM TRUST TRUSTEES, ANf4uAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024 REFERENCE AND ADMINISTRATIVE DETAtIs Trustees Rt Rev Peier Collins (Chair) Rt Rev Alan HoFeS Dr David Livesey Lauretta Pil¢h Paul Rayne5 Rev Paul Keane Rev Frank Mulgrew Hugh Davies Sole Metnber Catholic Trust for Englond and Wllles (CaTEW) liector Rey Dr Robert Billing Principal Office Pilgrim Burea Fridav mark.et Plare lalsingham Norfolk NR22 6EG Chariry Registrdtion No 11806 Company No 11655451 Independeni Audilors Haysmac LLP 10 Queen Str¢et Place London EC4R IAG SolititOTS Bal Wells 10 Queen stre Place London EC4R IBE Bankers Lloyds Bank PLC i Notth Brink Wisbech Cambridgeshire PE13 IJT TSB PO Box 1000 BX4 7SB

WALSINGHAM TRUST TRUSTEES, APINUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024 INrRODucfioN The Trustees subrnit their annual repKbrt and the audiled finamcial staternents for the year ended 31 December 2024. The financial statements cOpIY with the Charities Aci 201 I, the Companies Aci 21x16. the Memorandum and Anicles of Association, and Accounting and Reportinir by Chariiies.. Siatement of Recommended Practice forchorities ISORP ?01 S) (Second Edition. effective l J2nuary 2019)- STRUCTURE, COVERNANCE & MANAGEME]YT Leadership and Governance The Walsingham TNSI Is a reoisiered charity (Chariry No. 1180690) and a compaffly lirnited by guatantee. The cofftpany 15 ¢0115Èituted by it5 Mernordndum and Articles of Aswcialion dated l November ?018, and was re<*istered at Companies Hollse, Company no. 11655451, on l November2018. The Trust i% governed by a Board of Trustees. chaired by the Bishop of Ea51 Angiia, M'bich meeL% at le&si thr¢¢ times per Peri, but usually rnore retsularly. The TNst is responsible for the Ch01]c National Shrine a]Ml Basilica of Our L74Jy, at Wa15ingham. The Tntsteeg continue to review their composition across the country. their Èti110na1 engagement. a varieri, of skills, and stratetsj¢ focu% towards theEr roles and responsibilities regardinu the Shrine. The Tnjstees ate mindfvl of the need for them ¢0 enga(pe in initial and ongointr fOrtIOn terms of these resp)nsibilitie5. Ownership The Trust is a wholly owned subsidiary undertaking of the Catholic Trust for England and Wales (CaTEW) which is its par¢nt and sole member. li has no subsidiary undertakings. Appointment of Trustee5 The procedures for the appointm¢T)L rotation, and re-elecTion of TneS are sei out in the Memorandum and Articles of Association of the Trnst. There must be a mintmum of 3 Trnstees and there is no maximum. The TNstees are appointed by the Bishop of East Anglia. and one Trustee is apwTrinted by the Member- the Catholic Trust for England and Wales, which itself is a regiSred charity (Charity No. 109748?) and is a c(xnpany lirnited by guarantee - Company No. 04734592. The Trustees who served the chatity duting the yrdr and 5ub5equently were as follows Rt Rev Peter Collins Rt Rev Alan Hopes Di David Livesey Lauretta Pilch Paul Raynes Rev Paul Keane Rev Frank Mulgrew Sarah Kilmartin {Retir¢d as trustee October 2tr24) Hugh Davies (Appointed October ?4) Organi5alional Structure and Deci5ion-Making Polieies Whet] the organisation was establishe<L the first trustees were guided by gwj govemance practtce in the charity sector, to achieve good governance throuoJ regular meeiings of the TnJstees- at least three a year- which receive comprehensiv< concise and timely reports on the charity'5 strategic direction together with oa$lonal meeiings focussed only on Strate as well as urgent de¢isions iaken by electronic circulation andlor additional tneetings when required_ The Rector oveisee5 the overall day-t041ay runt]ing of the Walsingham Trust on behalf of the TNsiees. with the tsciical assistance of the Generdl Manger.

WALSINGHAM TRUST TRUSTEES, ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024 l¢othtihutd) Sorne of the propttties from which Ihe Tru# opernies are ¢)wned by the Rofftan Catholic Diocese of E1 Antslia. The use of these propenies in This period is grdllted io the Ttull rent-free. Policie5 Adopted for tbe Induction and Training of Trustees New Trustees ate provided with induciion and trtinints covertng such topics as legal sta¢us and governance, structure, organi5ation and stafffg, oovemance, F4)li¢y.. and strategy. They are inviied to p1¢1pate in the Shrine's pilgrimaoes and celebrations and to ViSLt all the charities premise5 so they have a g(KKI undtf5tsndints of the life and mission of the Shrine. Setting of Pay for Key Personnel In this accounting peri¢xl the remunertitton for 211 key and management personnel are set by the Recror and the Finance Committee of the Trnst. This is under review as the Tn continue5 to Tnove thmugh a period oftransforniation. OBJECTS A.YD ACTIVITIES Objects The objects of the chariry are: the advancement of the Catholic religion anywhere in the world. the relief of poverry anywhere in Ihe world. and to advance such chariiable purposes (according to the law of England and Wales) as the Tn]stees see fit from time to lime. b) Acttvities In order to further ihe objects noted above, the primary artas of activity in ?024 were the chapels and grounds of Shrine domain itself, and a pilyim hosiel. a tearoom, and a gift shop sellin8 religious atielacts. ACHIEVEMENTS Af4D PERFORMANCE The Support ofpilgrims The Shrine 15 grateful to all the pilgrims and benefacior5 for iheir continuing spirimal and material support. The prayerful suppo letter5, emails, social media posi& cheques. onlin¢ donations. aTLd in-person donations have been of great eEJcouratrement io the ShTine and TTU5t. RelTgious CommuThities aDd Priests Ourplans to wel¢offte two religious Communiti to serve aithe Shrine continueatpace. The proposed establishTnent Ofac0munity of AlilS1[lan Frlars from Nioeria beoan with their arrKval in September ?0?4. Moreover, it Is hoped that the S&¥ler5 of ihe Adoralion ofihe Blessedsacrameni from Kerala K'ill tsrrn'e 20?) and1h ihg. w'ill serve a powerhouse of prayer and service in suppon for the life and ]SsiOn of the Shrine. Wa15inghgm A$$oelatlo The Trust remains oraleful for the ongoit]g support of the Walsinghttm.4ssocialion which in 2023 commenced opeTatlOll5 as a charity separate tothe Walsintwham TrusL. The Wa15itLgham AsyJcÉation exists to foster devotion to Our Lad of Walsin)am, andt0 5UPPOrt the Shrine in other material ways. In 20?4 the A550ciaiion rnised a total of £XXX for the Shrine. Other COllaratiOn The Shrine coniinues a collaiK*rntiv¢ relationship with EIYTN GB which continues to feature Walsinoham in events streamed live across its tslobal netwo, as well os # fruitful collab)raiion with Radio Moria.

WALsIf4GHAM TRUST TRUSTEES, ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMI BER 2024 (eontittued) The principal risk identified is: Significant increasE5 in the cost of living affecting the disposable [ne0C of those who might corne to visit the Shrine. This Tisk is rnitigated by reaching out to new pilgtim groups.. offeTino concretecoordinaied guidance for ortsanisets ofresidential groups and improvino the pilgrim experience with enhancem¢nt5 to the Shrin¢ slte and its liDJrgy. FUNDRAISJTriG The charity fundraises primarily from pil(rrims and the wider the public. It does noL however. employ profession fundraisers, nor does it pllt undue pressure or unretsonably intrude on arty(e to make a gifL li does not rdise funds ihrough telephone fi]TrdratsiTrg or work with any 2tsency to do so. If any donor does not wish to receive future communications from the Trus( they are mOVed from furnre mailinJ& . li occasionally approaches charitsble trnsts with respe to specific fiJndrai5ing tnitiatives. There were no cornplaints in the year with regard io fvndraisin& and none for 2023 either. TRANSFORMATION At the beginning of 2023 the TN5tees started a progrymrn¢ of transforn]ation of the Shtine and the Walshingham Trll5t. This programme of change is now conete1V tskinu shape and touches on many aspe£ts of the Shtine and the running of the Trllst. The implementhtion begins with the mission of the Shrin¢ and includes a focus on the pi]8[iage experience and care1 stewardship of resources and improved planning and preparnion in all 15pects. FUTURE PLANS The focus for the futhre is the continued deYeloTMnent of the pilgrimage experienc< both spiritually and Tnaterially, prornoting Walsinoham as a placc of pilJo imAtse and establishints the way fonvard for the development of the Shrine, grounded on sound governance and f¢81 discipline. our Shrine is known ts a place of welcome, peace, prayer. and reconciliation. and as a centre of liturgical beauty and g¢x>d preaching, mindFul of our hiJts _profile online presence. we take great Care in the cleaning and maintenartce of our chapel& facilities. and grounds- 'making our Shrine shine. we make incr£meTht21 physrcal irnprovements in our Shrine chapel% facilities. and grounds in the short and medium tern, and thai our fundrai5ints is focussed accordingly. the Shrine is administered by decisive leadership, sound tsovemance, iimely prepardtiom as well as fis1 discipline and a carefvl stewardship of our r¢sour¢es. FUTURE DEVELOPMENTS Since 31" December 2024 the following significani transacttons havetaken place, these willbe included tn ihe 2025 Ftnancial Accounts. The T$1 botrowed a further£65,000 from the Diocese of East Anglia in February 21r25. for which it gave security on two properties, and a further £1286,5001 from the Catholic Tn for En.land and Wal¢s in March 20?), in relaiion io which a fornial loan agreement is beino drawm up. li is anticipaied th* totsl debt will reduce by some £t270,0001 during 2025. financed by IEacy receipts and property sales. At the same time, a sigllificant resttucturino of ihe Tnl'S cost base was implemented Spring 2025 t(Tr ensure that thE trading position would deliver a sustainable surplus from 20?5 onwards. LEGAL DISPUTE The Trnsi is engaged in a dispule over profe55i0nal fee5 relatin4Y to architectural advice it received Én ?018. It is expected that the di5PUte will be inforniallv settled at a non-material figure. STATEMENT OF TRusfEES' RESPONSIBILITIES The Trustees (who Are also direciors of The Walsinrwham Trusi for ihe purposes of company law) are responsible (or pieparin(T the Trustees. Report and the financial 5taternents in accordance w'rih applicable la and Unlled Kingdom Accounting Standards (United .dom Generally Accepted Accountine Practice).

WAtSINGHAM TRUST TRUSTEES, ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2024 (contiDved) PUBLIC BENEFIT The Trnsiees are conscious that the Charities Act 2011 eTnphasi5es the requirement that a]1 chariiies must be able to demonstrate Ih&ti their work is of direci benefil to the public. The TTU5tee5 can confirwn that ihey have complied with the duty u) 5eciion 17 of the Chdrilie5 Act 2011 io have due regard io the public benefit guidance published by the Charity C¢)mmis5ion in deremiining the activities undertaken by the Charity. The Shrine facilities and 0ndS in orditiary times are open to the public 365 days of the year, and are fijlly used by the publi throughout the period and especially durtng the summer months. Pl1iS. tourists, and othets of all faiÉhs and none enjoy daily acces5 to the fourteenih century Slipper ChapeL the Mern Chapel of Reconciliaiion. and other facilities. Modestly priced and excellent quality accommodation ensures that resideniial pilgrllns are well catered for. The TNst aims io piovide forthe spiritual and material need5 of all groLtPs and individual5. FINANCIAL REVIEW The charity'5 total inco]ne tn the period £i,295.145 (202) £2.289.875). Of this £1,637,026 (20?3 £881220) reled to unrE5tricted donatiOll5. £12.693 (23 - £21,i61) from unrestricted legacies. Charitable activities in (he year generated £1,431,565 eO?- £1,339Jl l) which ¢onsi5ted of £53,124 (20?3 £38,951) at the Shrine. £901,514 {2023 - £838,006) from the Shrine's hostels and tea room, £468,807 (2023 - £426,560) from the Shrine'5 retail uilets. £7 (2023 - £nil) froEn the actiyities of the Walsingham Asso¢iation. £nil {2023 - £35,994> from Development Activities and £7.293 (2023 - £nil) fmffj h¢r. The su]plus in the year was £270.225 (20?3 - deficit of £470,574) of which £46,?54 (?023 - £295,097) related to an operating surplus on General Funds, £137,991 (202i- nei ouifloh. £L?1.947} to 2 net inflow on Designated Funds. and £36.522 (2023- new inflow of £46.470) io a net outflow on Restri¢ied Funds. Th¢ primary repson for the inflow on Des141ed Fund was due to sale of a property in the year. Unrestricted funds Incre by £306,747 (2023 - £507,044)and 8tyur ¢nd stood ar£2536.775 (2023- £2.230.860) and Restricted Funds stood at £74,49012023- £100.180). Reserves General nds, being the charity'5 free re5eryes. defined as the total unrestricted funds ofihe chariry excludintr any designated ffijnds, including those fi]nds tied up in fixed asseis. stood at neoaiive £&14.771 (?0?3-negative £781:929). The Tru5tee5 de518t]aed a su of £3.181.546 (2023 - £3.012.789) to include amounts tied up in red &%sets. Restricted fi]nd being unspent rnonie5 towards development. had a closll)g balance 01£74.490 (22)- £l10.180). The Tnjsrees. largel is io hold six months, necessary expendirllre in free reserves amountin to £ Im. Althou the finon¢i#l circustart¢es of the Shrine mean thai this t*get is TIOÉ CUTrently rneL it is anticipated that it can be achieved wiihin 5-7 y¢ar5. Th¢ TtU5t's cash flow is highly 5ea50nal and 15 ciirrentty 511Ptxirted by M.01(r Capital loan5 from the Diocese of East Anglia of £140,000 received in ihe year. and the Guild of OLEr Lady of Ransom (fEceived November 2023) worth £150,000. Risk Manage¢t The Trnstees have 2 fornial risk manattem¢nt pr¢Kess to a55 risks and implement risk mmagement strategie5. This involves the identifitration of the types of risk faced by the charitv. assessing the likel1hoj and potential impaci of occurrence and identifyillg means of rnitigation. Risk5 have been caie<yorised under five broad headings: Governance, opeloal. Financial, External and Compliance. These are Ihen seSSed as to the likeliho(d of iheir occurrino and the severity of ihe effects ot the tisk leadino to a potential overall impact calculation in order to ertairt a scale of relative importance/urgenc) to each one.

WALSIF4GHAM TRUST TRUSTEES. Af4NUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 21Tr24 (contiTrued) Company law requires the Tn]stees to prepare f]nancial statements for each financial year which give a true and fair view of the state of affairs of th¢ charitable company and of the 5urplu5 or deficit of the company. including the income and expendiwre. of the charitable company for that period. In preparing tbese fjnallcial Stateellts. the TN5tees are requtred to.. Select suitable accounting policies and then apply them consistrntly. Observe the methods and principle5 in the Charities SORP. Make judgments and estimates that a r¢asonable and PTudenL Stste whether applicable UK Acxounting stsrtd have been followe¢ subject to any material departures disrlosed and explained in the fmancial statements. Prepare the fmancial statements on the going c0Cern basis UDles5 it 15 inappropriate PreSwne ththe charithble ¢ompany will continue in sineSS. The TNstees are responsible for keeping proper accountino records thai disclose with reasonable accuracy at an). time of the rinancial position of the ch2riitble company and enable them io ensure that the fancial stsiements COTnpty with the Companies A¢1 ?006. They are also resp(>nsible for safeguarding the assets of the cbaritsble company and hence fortaking reasonable sieps for the prevention and d¢te¢tion of fraud and h£r irregularities. In so far as we are aware: There is no relevant audit infortnation of which the charittble CoMpanS auditor 15 unaware,. and The Trustees have taken all sreps that they ouJ)t to have tsken to make them aware ofany relevant audit inforniation and to establish thai the auditor is aware of that information. Auditors On 18 November 2024 the COTllp3ny's auditorchanged its name from HaysmacintyTe LLP io Hay5Mac LLP. A resolution proposll that Haysmac LLP be reappointed as auditt*r5 of the company was approved by the members. This reporthas been prepared in accordance with the Sla1 provisionsrelating tocotDpanies subject lo the small cornpanies, retsime within Part 15 of the Compamies Act 2006. Approved and authorised issue by the Trustees ¢)n by.. 15109rJ025 and signed as authorised on their behalf Rt. Rey. Peter Collins Trusiee

INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF WALSINGHAM TRUST Opinion We have audited the fanCial statements of Walsingham Trust forthe yearended 3 1 December 2024 which comprise the Statement of Financial Activities, Balance Sheet, Stateent of Cash Flows and notes to the r]nancial statements including a surnmary of significant accouniin(p policies. The financial iewTrrting fraMeOrk that has been applied in their preparation is applicable law and United Kintrdom Accounting Siandards, includints Financial Reporting Standard 102 The Fip2oncial Repoyiing StoAdordopplicoble in ihe UK andRepublic oflrelund (United Kingdom Genernlly Acceptrd Accountints Practicc). In our opinion. the [ancIal statements.. give a tNe and fair view olthe sthte of the charitable company's affairs as at 31 DeCem1r 2024 and of the charitable company's net movemeni in fimds. includin(p the income and e.¥ndire, for the year ihen ended. have been properly prepared in accordance with Uniied Kinodom Generally Accepted Accounilljg Practiee; 8nd have been ptepaxed ll) accordante with the requireTnenis of the Companies Act 2006. Basis for opinion We conducied our audii in XC0rd¢t with International Standards on Auditing (UK} (ISAS (UK)) and 2ppIic2ble law. Our responsibilities under rhoge sialldards are fimher described in the Auditor's tesponsibilities for the audit of the financial statements section of our report. We are independent of the charity in acconlance with the ethical requirements thai are relevani to our audit of the financial statements in the UK. includiDO ihe FRC'S Ethical Siandar( and we have fulfilled our other ethical responsibilities in accordance with these requirements. We telieve ihat the audit evidence we have ob(ained is sufficieni and appropriate io provide a basis for our opinion. Conclusion5 re13ting to going contern In auditing the fmancial statetnents, we have concluded that the trustees, use of the going concern basi5 of accounting in the preparation of the fancial statements i5 appropriate. Based on the work we have perfonne(L we have not identified any material uncertainties relating to events or conditions ihai. individually or collectively. mav cast sienificant doubt on the charithble company's ability to continue as a going conttrn for a period of at least nvelve months from when the ftnancial 5taiements are authorised for issue. Our responsibilities and the responsibilities of the rnstees with resFttt to going concern are described in the relevant sections ol thi5 report. Other infortnation The trustee5 arc responsibl¢ for th¢ other inforniatlQD. The other ujfomiation comprises the inforniation included in the Trustees. Annual Rcport. Our opinEon on the fmancial statements does noi cover the other inforniation and excepi to the exrent otherwise explicitly staled in our repon, we do not express any fom) of assurdT)ce ¢¢)nclusion thereon. In conneciion with our audit of the financial sthtements. OurreSASibIlity is io read ihe other infom)ation and, in doints so, consider wheiher the other information is materially inconsistent with the fll)ancial state]nents or our knowledtse obtained in the audit or oihenvise appear5 10 be materially missraied. If we identify such MerIal inconsistencies or apparent marerial misstatements, we are required to deiermine whether there is a material milartment in the financial statements or a material missiatement ofthe other inforniation. If, based on the we have perfornied, we conclude that there is a material misstatement of this othei tnforniation, we are required to report that fact. We have nothin(F to rep in this ttgatd. Opinions on other matters prescribed by the Companies Act 2006 In our opinion. based or the M'ork undertaken in the coutse of the auditr. the information tsiven in the Twstees. Annual Repon (which includes the d)rt0[5, report prepared for the pujyoses of Company law) for the financial year for which the F¢1a1 SleMentS are prepared is consistent with the financial 5tatements,' and the direcrors. report included wiihin the TruMees' Annual Report have been prepared in accordance with applitable legal requiremen Matters on whieh we art required to report by exctptioR In the lioht of the know.led(ye and undcrstandints of the Charitable Company and its environmcnt obtsined in the course of the audiL we h2ve ntst identified materiAI Tni5staierr¢ents in the Trusiees. Annual RetM)n (which inCOTpofdt¢s the dire¢iors' rew)rn).

INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF WALSINGHAM TRVST (Continued) We have nothing to reFrfHX in respeci of the following mattets ID relation to which the Companies Act 21K)6 requtre5 US to report to you if. in our opinion= adequale accouniing records have not ky by the charitsble compauy" or Ihe charirable company fancial statements are not in agreement with ih¢ accounting records and retums. or certain disclosures oftrustees remuneration specified by law are noi made. or we have not rcceived all the inloTrnation and explanaiions require forouraudit- or the tNsiees were not entitled to prepare the financial sraiements in aecordance with the sm[ companies, regime and take adv2ntagc of the small companies" &iemption5 in preparintw the trustees. report and from the requirement to prepare a straietsic report. Responslbllltles of truste¢s for the financial $tatemeDts As explained more llY in the tTUStees' reswnsibiliiies statement set out on wes 5 and 6. the tswstees (who are also the directors of the charitable comparty for ihe purpo%s of company law) are responsible for the preparation of the financial ststements and for being satisfied that they give a true and fair Yiew. and for such internal control a5 the mjstees deterniine is necessary to enable th preparation of fancial staiements that are free from marerial mis5tatemen4 whether due to fraud or etTOr. In preparing the fmancial ststements, the tru51ee5 are responsil)le for a]ng the charitable company's abiliry io continue &$ a (Toing concern, disclosing. as applicable, matters related io going concern and usino the going concern basis of accounting unless the trusttts either intend to liquidate the charitabl¢ company or to Ce opeTation4 orhave no realistic alternative but to do so. Auditor'5 responsibilitie5 for tILE audit of the financial statements Our objectives are to obtain re&sonable assurance atrUl wbeiher the financial ststements as a whole are free from maierial misstatemeni whether due to fraud or Error, and to issue an audiior's report thai include5 our opinign. Reonable assuraAce is a hitth levcl of assurdnce. bui is noi a guatanlee thal an audit conducted ID accordance with ISAS (UK) will alwa}'s detect a maierial misstattment when it exists. Missia(etnents can arise from fraud or e)Tor and are ci)nsidered rnateria] if, individually or in the agtsregate, they could reasonably be expected to Influence the economic decisions of users taken on the basis of these fman¢ial stalcments. IrregUllties. including fraud, are instance5 of non-compliance with laws and reiulations. We design procedures in line with our responsibilities, ouilined above, to detect rnaterial Tnis5Lwements in respea of irretsularitie5. including fraud. The extent to which our procedures are capable of detectillg irregularitie£ including fraud is detailed belo.: Based on our understandino of the charitsble ¢ompamy and (he environment in which ti operate8 we identified that the principal risks of non-compliance with law5 and regulaiions related io compliance with Canon l.aw, Company Law. the Cotnpanie5 act 2006, Charitie5 act 2011, emplo>ment law and health and safety rulatiOnS and lie ¢on5idcrcd the exieni io which non-compliatLCt might have a Marial effect on the f]nancial statements. We also considered those la5 and regulations that have a direct impact on the preparation of the financial Stateents such as Catton Law. Ihe Companies Act 20(. the Charities Act 2011, the Statemenl of Recommended Practice for Charities (SORP 201)), FRS102 and payroll taxe5. We evalll2ted Fn2nagement's incentives and optX)rturtities for fraudulent manipulation of the fancIal stateentS (including the risk of override of contto15), and deterniined that ihe ptincipal risks were related to recoyiiion of income and rnanagement bias in certain accounting estimates. Audit procedures performed by the enoaaemeT)t team included-. Inspecting correspondence with reoulat(rs and tax authorities- Di5CU55È9n5 Wlth manauement includinrl consideration of known or susrned insw)ces of non-compli2n¢e wilh laws and regulation and fraud,. Evalvating management's controls designed to prevent and detect irregularities: Ideniifyino and testints ¥ journals, in particular journal entries rK)sted with unusual awouni c4)mbinations. p05tings by unusual users or with unusual desCriPtion5' and Challengin£ assumpiions and judgements made by monagement in their crtiical accounting estIateS. Because of the inherent limiiaiions of an audit, there is a risk thai we will dektt all irregularities, including rhose leading to material misstatement in the f3ClaI statements or non-compliance with retsulation. This risk increase5 Ihe more ihai compliance with a law or TE¥ulalion is retnoved from the evenrs and transactions reflected in the financial statemenis. as M'e will be les% likely lo become aware of installces of non-compliance. The risk is also greater regarding ]egUlar1tieS occurrino due to fraud rathcr than error, as frdud involves intentional concealment. forgery. collusion. omission or misrepresentsiion.

INDEPENDENT AUDITOR'S REPORT TO THE TRLSTEES OF WALSINGHAM TRUST (ContiAtitd) A further description of our responsibilities for the audit of the fmancial sraiements is IIKated on the Firwicial ReFrf)rting Council's website at: www.frc.o .uklaudiiorsres nsibilities. This description forms part of ouiaudiior's report. Use of tsur report This r¢port is made solely to ihe charitable company's member& as a l)ody. in accordance with Chapter 3 of Part 16 of the Companies Ad 2006. Our audit work has been undertaken so thai we might state to the charithble comp3ny's members those matters we are required io slate to them in an Auditovs rtport and for no other purpose. To the fvllesr extent pernjitted by law. we do not accept or assume responsibility to anyone other ihan the chaTitsble company and the clwiiabl¢ ¢ompany's member5. 85 a body, for our audit work, for this report, or for the opinions we have formed. Jane Askew (Senior Statutory Auditoi) For And on behalf of Haysmac LLP, StaNtory Auditor Da.. 10 Queen Street Place LA)ndon EC4R IAG 11 December2025

WALSINGHAM TRUST STATEMENT OF FINANCIAL AcfivITIES (Including the Summary Incorne 3nd Expenditur¢ AccouTr¢) FOR THE YEAR ENDED 31 DECEMBER 2024 G¢ner*l Funds Designated Funds Restricted Funds Totsl 2024 Totsl 2023 Notes INCOME FROM: Donations and legacies Donations Legacies 14 1.637.026 19),( 2.347 12,693 21,514 1,660,887 202.693 928,803 21.561 Total .8)7.026 15,040 21.514 1,863,580 950,364 Charitable activities: Shrine Hostels and Tea Roorn Shops Walsingham Association Development Other 53.124 901.514 468.807 827 53,124 901,514 468,807 827 38.951 838,006 426.560 35.994 7293 7,293 Total J,258,591 15.(140 21.514 J.295.145 2.289,875 EXPENDITURE ON: Charithble activities= Shrine Hostels and Tea Room Shops Walsingham Association Development 891.080 1,066.453 315,486 1.446 669.547 891,080 1.066.4i3 315.486 1,446 750.455 801,390 97O,J21 294.475 2,612 691.651 1,062 79.846 Total 2,944,012 1,062 79.486 3.024.920 2.760.449 NET INCOMEI(EXPENDITURE) 314579 13.978 (58,332) 270.225 (470,574) Transfers beeen funds 9,10,11 (176.588) 154.778 21.810 NET MOVEMENTS IN FUNDS {137,991) 168,756 (36,522) 27D,225 (470,574) RECONCILIATION OF FUNDS: Total funds brought fonvard 9,10.11 {782.76?) i.012.71 111,012 2,i41,040 2,811,614 TOTAL FUNDS CARIUED FORWARD 9,10.11 £(644.771) £3.181.546 £74.490 £2.611,265 £2,341,040 The accompanying noie5 numbered I to 18 fonn part of these financial ststements. 10

WALSINGHAM TRUST (Cornpany number: 11655451) BALANCE SHEET AS AT31 DECEMBER 2024 2024 2023 Not TANGIBLE FIXED ASSETS 3.181.546 3,354.569 CURRENT ASSETS Stock Debtors Cash at bank and in hand 86.313 255,655 51,651 94,820 66.054 )93,619 224,005 CREDITORS: Amounts fallinu due within one year (735220) (1,087.5M) NET CURRENT LLABILITIES ()41,601) (863.529) TOTAL ASSETS LESS CURREP4T LIABILITIES 2.839.945 2.491.040 CREDITORS: Amounts falling due in more tILan oDe year (Z28.680) (150,000) NET ASSETS £2,611.265 £2,341,040 FUNDS: Unresiri¢ted funds- general desitsnated io (614,771) i.181.546 (782,762) 3,0117) 2,536,775 2.230.028 Restricted funds- Shrine Development Other restricted fi]nd5 12 2,347 111,012 £2.611.265 £2.341.040 The a¢companyino noies numbered I to 16 fOn part of these f]nanci21 ststements. The finan¢i&l statements were approved and authorised for issue by the Board of the TNstee5 on 1510912025 and were siJo ed below on its behalf by.. Rt Rev Peter Collins Truste¢

WAISINGHAM TRUST ACCOUNTINC POLICIES FOR THE YEAR ENDED31 DECEMBER2024 The principal accounting policies ad0e<L judgements and key sources of estimation uncertainty in the prepardtlOD of fancial statements is follows= B2S15 of Accounting The financial statement5 have beell prepared accordanc¢ ivith Accountino and Reponing by Charities.- Sraiement of Recommended Prdctice applicable to chariiies prepatiDg their accounts in accordance with the Financial Reporting Standard applicable to the UK and Repllblic of Ireland (FRS 102) (effective l JonuaTr 2019), the Statement of Recommended Practice for Chartiies (SORP 2015) (Second Edition. etyeciive l January 2019) and the Cornpa]]ies Act 2006. Walsingham TNstmeets the defmÈrion of a public benefit entity undcr FRS 102. Asset5 and liabilities are initially recognised at historical cosl or transaciion value ut]less otherwise statrd in the relevani accounting policy note(51. Preparation ofthe accounts on a going eontern basi% The trnStees have ci)nsidered possible events or conditions that might ¢asi significant doubt on the ability of the charitable cornpany to continue as a goino concern. The irusiees have made their assessment for a of least one }'ear from the date trf the approval of these financial SleMents. In particular. the trustees hav¢ considered the charitable con)pamy's forecasts and projectioTrs and have considered ihe poieniial impatt of the tost of livints Crisis on the viability of the chariry. After ]nakinè enquiries, the twstees have coThcluded that there is a re&%onable expe¢tation that the charithble company has adequate resources to continue in operationai exisience lor ihe foreseeable fiJtur¢. The repaym¢nt of the £300k loan from the Dsocese of East Anglia which has been partially offset by a new £150k loan from th¢ Di(Ke5e of Easi Anglia, the conversion of the £500k loan froln CaTEW io a gift and the propeny gifted in a legacy have significantly str¢ngthened the assets 10 liabilities position. The charitable companJ therefore Coniinues io adom the goino concern basis in preparing its financial statements. The Trustees are of the ¢)pinion that no m&etial uncertainty exist5 retating lo £oing con¢em. Funds The difftrent funds Are def]ned as follows= UeStricted funds are th05e funds available io the charity for its general purpDses. It Is the policy of the Trusiees to retain in unrestricted fimds, aMolln which in their judoement. can help to mitigate the sbort-tenn effects of income volatiliry and retain fvnds to generate sufficieni income to meet CUTtEnt and future oIkrational activities of the chariry. D¢siJts ated funds comprise unrestyicted funds thai have been set aside by the Tru5tee5 for panicular PUryM)ses. The aim and Use of each desiJated fund is Set out in the notes to the r]nancial 5talernen Resiricted funds are those funds which are to be in accordance with specific instructions imEx)sed by the donor or trusf deed. Income COgnItion This comprises donations and le(racie5. fees receivable from the various activities and invesiment income. All income is cognised once the charity has entitlement to the income. il is probable that ihe income will receive4 and the amount of income can be measured reliably. Donations are recotsnised when the chariry ha5 been notified in wriling of tK)th the amount and settlement d#te. In the event that a donation is subject to conditions that require a level of perforniance before the charity is elltitled to rhe lld$, the corne is deferred and not recognised untll ihose conditions are fully me4 or the fuifilment of those conditions is wholty within the control of the charity and it is probable ihat Ihose conditions H'ill be fulfilled in the reponino period. Incorne from charitable activities is recooJised as earned as the rElated servi¢e5 are provided. 13

WALSINGHAM TRUST STATElENT OF CASH FLOWS FOR THE YEAR ENDED31 DECEMBER2024 2024 2023 Cash flows from operating sctivitieS: Net Cash (used in) oper¥tin£ *etivities (see below) (83,882) (244,446) Cash tlows from Investing aetivitles: Purth2se of ft%ed assets Sal¢ of fixed a8sets (370,5?1) 300,0(M) (45,732) 10,070 Net Cash (used IA) investing activities (70.521) {35,662) Cash from fjnancing activities: Long temi loan receipts 140.000 150,000 Change in c25h and casb equiva]eDts iD the periixi Cash and cash equivalents at the stsrt of the period (14.403} 66.054 (130,108) 196,162 Cash and cash equivalents at the end of the period £51.651 £66,054 RF.CONCILIATION OF NET INCOMEI{EXPENDrruRE) TO NET CASH FLOW FROM OPERATING ACTIVITIES Net incomel(expenditure) for the period (¥$ ¢h¢ St#tement of Flnalleial AetlVLties) Adjustments for: Depreciation charges LossJ(gain) on sale of asset Decreasellincrease) in Ock (Increaseydeciease in debtors (Decrease) in creditors 270.225 (470,574) 220.03J ?3.512 8.506 (192.524) (413.634) 245,69? (7,069) (25,774) 13J54 (751 Net cash (used itt) operating activities 83.882) 244,446> AIYALYSIS OF CHANGES IN NET DEBT A¢ January 2024 At 31 December 2024 Ch flows Cash at bank and in hand Loans falling due within one year Loans falling due in more than one year 66.Oi4 (800.000) (150.000) (14.403) 605,348 (78,680) 51,651 {194.652} {228,680) £(883.946) £512265 £(371,681) 12

WALSINGHAM TRUST ACCOUNTING POLICIES (continued) FOR THE YEAR ENDED 31 DECEMBER 2024 Government grants Income from government grants is re¢oJis¢d wh¢n the charity has entitlemeni to the funds. any perforniance condititsns attached to the Jant hav¢ been met and in the period to which it relates. Expendiliire Liabilitie5 are recognised as expenditure as soon a5 there is legal or constructive oblitsation tommitting the charity to that expenditure, il is probable thai settlement will be requirf and the amount of obligation can be measured reliably. Expe[]d1tLe is recognised on an accruals basis as a liability is incurrtd. Charitable activities comprise mtiin]y of th¢ provision of a place of worship. accommodation. welfare and catering, premises and administrntive costs. Support costs have been allocated to charitable activities. Governance aciivities comprise organisational thini5tration and complian¢¢ with ¢onstitutional and statutory requirements. cOS include direct costs of external audiL legal fees and other professional adwite. Debtors Trade 3nd other debtOTS are recognised at the selllement amount due after any trade di5couni offered. Prepayments are valued at the amount prq)aid net of any trade discounis due. Cash at bank and in haDd Cash at bank and in hand includes bank accounts, cash and short temi highl> liquid investments with a Short maturity of three months or less from the date of acquisition or opening ofthe deposii or similar account. CreditDrs and provision5 Cyeditors and provisions are recognised where the charity has a pttsent obl joation resulting from a past evcnt that will probably result in ihe transfer of funds to a third party and the aEnount due to settle the obligation can Lx Tn¢asurcd or estimated reliably. Creditors and provisions are normally recooJised at ihetr settlement amount after allowin(r for any trade discounts due. VAT The charity is reoistered for VAT bui is unable to reclaim all of the input t&x incurred. ttTecovetable VAT is charged io the expenditure headino for which it was incurred. SigMificant judgments ad sourees estimation unttrlainty In the view of the Trustees in applyints the accouniing p)licies adwe& no juementS were required that have a siJiY ificant effect on the amounts recognised in the fin2neial sta*ments nor do any eAimates or assumption5 made cary a siJts ificant risk of maieria] adjustment in the next financial year. FiD#n¢i21 instruments The charity only ha% fjnancial assets and financial liabilities of a kTnd that qualify as basic financial instruments. Basic [anCIal instrurnents are initially recoonised at Tfdnsaction value and subsequently measured ai their settlement value. 14

WALSINGHAM TRUST ACCOUNTING POLICIES {contined) FOR THE YEAR ENDED 31 DECEMBER2024 Pensions The charity operdtes a Group PersoDal Pension scheme wilh Royal London. The pension is offered to all employees and advice is provided to the charity by N W Browi and Co. Li& who are tndependent Financial Advisers. Benefits are determined by the perfomiance of the scheme_ The charity'5 liabilty is limited to the an[al contrsbutions payable. All contributions are charged to the Statemeni of Financial Activities in the PerÈod in which the> acctue. Tangible Fixed Assets and Depreeiation The Trust occupie5 properties in Walstngham free of reni. the freehold interest belonging to the DI¢se of Et Anglia. The Costs of improvements lo Diocesan owned proWies are included in building improvemenls. The cost of religious objects are written off in the Period when the cost is incurre¢L and are therefore not represented in fixed sets. Depreciation is provided oll all f£d assets grealer than £500, except freehold land. The rdtE5 and bases of depreciation are a5 follows.. Freehold buildings Building iTnprovements Motor vehicles Fixtuiel fittings and equipment Freehold land and buildinJts 2QA straighi line I/0 5traioht line 25Q/o straitsht line 25Q/o straieht line 2V straijt line A full year of depreciation is charged in the year of acquisition. Sttseks Stock5 are 5tatEd at the lower of cost or net rea]isable vallle. Cost represents purehase price, calculated on a first in first out basi5. 15

WALSIPIGHAM TRUST NOTES TO THE FINANCIAL STATEMEP(rs FOR THE YEAR ENDED JI DECEiKBER 2024 CHARITABLE TRADIPIG ACTIVITIES (2024) Hosteb & Tea Room Total 2024 Total 2023 Shops Income 901,514 468,807 1,370.321 1.264,566 Expenditure.. Cost of $21es Other costs 194.962 120,524 396,603 985.336 416,302 848.494 864.812 315.486 1,381,939 1264.796 Net (d¢ficitysuTpIus £{164,939) £153.321 £(11,618) £(230) The above activitie5 represent trdding wh?ch is in putsuit of the purpose5 of the charity. CHARITABLE TIL4DIP4G AcfivITIES (2023) Hostel & Tea Room Totsl 2023 Shops Incotne 838,¢)06 426.560 1,2&1,566 Expenditure". Cost of sale5 Other costs 228,765 741.556 187.537 106,938 416.302 848.494 970,321 294.475 1,264,796 Net (deficity5urplus £(132J15) £132,085 £(2iO) 16

WALSINGHAM TRUST NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED31 DECEMBER 2024 ANALYSIS OF EXPENDITURE12024) Aetivitles lldertaken Support Costs directly Total 2023 Charitable Expenditure Shrine Hostels and Tea Rootn Shop5 Wa15ingham A550csation Developrnenl 619.031 996250 242.577 1.317 749.321 272.$9 140203 72,909 129 891.080 1.066.45J 315,486 1.446 750.455 801,390 970,321 294,475 2,612 691,651 1,134 £2.538,496 £486,424 £3,024.920 £2.760,449 ANALYSIS OF EXPENTIITURE (2023) Actiyities undertaken directty Support ¢05ts Total Charilable Expenditure Shrine H05tE15 and Tea Room Shops Wa155nghatn Association Developrnent 640J75 800,501 2?6.70? 2,612 684,902 161,015 169.820 67,773 801.39) 970.321 294.47) 2,612 691,651 6.749 £2.)55.(V)? £405u57 £2,760,449 2024 2023 Support colls consist of.. Salaries Premises Office Other Governance- audii fee 272,456 28275 31,014 134.679 20.000 194,491 14.453 23.013 151.313 2?.087 £486.4?4 £405.357 17

WALSINGHAM TRUST NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 DECEMBER2024 STAFF 2024 2023 weS and salarie5 Social security costs Pension costs Redundancy costs .163,174 90.165 70,024 981,838 75.904 79,788 22,646 £1,345,975 £1,160.176 21124 2023 No. The average nUbe[ of ll-tiMe employees was= The averdge nurnber of part-time employees wa5: 30 18 32 19 No eTt]ployee earned £60,0110 or more durints the current or pjrvious years. The aggtegate remuneration of key manaecrnent personnel comprising ihe Eiecior. CEO. Director of Operatior15 and Financial Controller w'as £115,30112023- £61.147). In addition to the alx)ve paymenis. Ihe Rector also received aCC4)m0daIlort by virrue of hi5 role TRANSACTiof4s WITH TRUSTEES No trustees teceived remunerntion in either year. Two trustees claimed reimbursement of travel expenses totalling £584 {2023.' i trustees £1,26?). 18

WAtSINGHAM TRUST NOTES TO THE FINANCIAL STATEMENTS (Con¢inu¢d) FOR THE YEAR ENDED31 DECEMBER2024 TANGIBLE FIXED A&SETS Freehold Land and Buildings Fixtsres F&ttings and Equipment Building ImproTrements Motor Vehicles Total COST Bal&nce brollght forward Additions Disposals 3,019.541 300,000 (336.991) 2231.658 55,670 23.032 545.730 14,851 5,819,961 370,521 (336,991) At 31 December 2024 2,982,550 2287.3?8 23.032 560,581 5,85J.491 DEPRECIATION Balance brought forward Charge for year Disposals 244,680 59.6(Kl (13,479) ,683,119 147.953 22J67 665 515225 2,465,391 220,033 (lJ,479) At 31 December 2024 290,801 1,8J1.072 2i.032 527.040 2.671,945 NET BOOK VALUE At 31 December 2024 £2,691,749 £456 ?56 £33.541 £3,181,546 At l January 2024 £2.774,861 £548.538 £665 £30,506 £3.354.570 STOCKS 2024 2023 Shop siock. for resale Other stock 75.960 10,353 81220 12.600 £86,) 13 St(Kk reCOlsed as an expense during the period is shown in ne l as Cost of Sales. DEWtORS 2024 2023 Trade debtors Prepayments and accrned income O(her debtor5 12,309 48.?S7 2,535 253.410 18 £2i5,6i5 £6i,131 19

WALSINGHAM TRUST NOTES TO THE FINANCIAL STATEMENTS (Con¢iDued) FOR THE YEAR ENDED 31 DECEMBER 2024 CREDITORS: Amount5 f311iTrg du¢ withirt olle year 2024 2023 Trdde creditors Sundry loans {5ee note 15) Social security and other taxes AccNals and deferred incorne Sundry creditors 225.088 194.652 22.48) 270.364 22.633 75.145 8(M),000 1?3.479 88.910 £7J5220 £1.087,534 CREDITORS: Amounts falling due in mort thall one year 2024 2023 Long tern) loans 228,680 150,000 £228,680 £150,DOO GEPIERAL FUNDS (2024) Brottght Fonvard Carried Forward EApenditure Trnnsfe General ndS (782,762) 3258,591 12.944,012) (176588) (644,771) £{782,762) £3,258.591 £(2,944,012) £(176.588) £(644.771) GENERAL FUNDS (2023) Brought Fonvard Carried Forward Income E5penditure Transfers General fuTKIs (486.8J2) 2.188.435 (2,474,154) (10211) (782,76?) 1£486,83?) £2.188.435 (£2.474.154) 1£10211} (£78? 7621 20

WALSINGHAM TRUST NOTES TO THE FINANCIAL STATE11lTs (Continued} FOR THE YEAR ED4DED 31 DECEMBER 2014 10. DESIGNATED FUND5 (2024) Brougbt Forward Carried Forward Incom¢ Expenditure TraTrsfers Legacy Fund Fixed Asset Fund Development Fund 11,561 2,982253 18.976 (24.254) 199,29i (20.261) 3.181,546 2,347 (1.062) £3.012.790 15,040 £(1.062) £154.778 £),181.546 DESIGNATED FLNDS {2023) Brought Forward Carried Fonvard lllcome Expenditure Trnnsfer5 Legacy Fund Fixed Asset Fund Development Fund 21.563 (10.000) 11.563 2,982,25) 18.974 3227.946 6,790 (245,693) 12296 £3234.736 £33.859 (£245,805) I£10.000) £J.012,790 The Legacy Fund represents amounts received in leoacies and which the Ttee5 have detem)ined to set aside to support particular priorities of the Tn1. The trustee5 consider thus fund is Do longer ne¢ded and has therefore been transferred to general fvnds. The Fixed Asset Fund represents the net bk value of the Trust's fixed asse1¢55 loan amounts secLwed against these. The Developmeni Fund is eam]arked for vari[ infrastructure enhancements and for oth¢rdevelopmentsl aaiviiies. Certain expenditure been incurred in advance of the receipt of expeed don&ions. The tNst¢e5 ¢oDsider thus Fund is no longer needed and has iherefore been transferred generdl ffinds. 21

WALSINGHAM TRusr NOTES TO THE FINANCIAL STATEMED5 (Conliau¢d) FOR THE YEAR ENDED 31 DECEMBER 2024 RESTR[ED FufiDS (2024) Brought Fonvanl Carried Forward Income Expenditure Transfers Development Funds.. Shrine Developmeni Holy Water Font Appeal (WA) Mission & Outreach Livesiream Technology Dowry Elouse BuT5aries Dowry House Chapel Dowry House Reserve Dowry House Development Other 2J47 2,347 1,964 (1.03?) 12,790 (182) 12,608 5.4()0 1.060 (li.823) 10.363 26.739 2,045 10,52i 27.799 2.045 10,523 37,515 18,404 1.348 11299 (50,)10) (12.499} 11,447 17204 £111.012 £21.514 79,846) £21,810 £74,490 RESTRICTED FUNDS (2023) Brought Fonv4rd Carried Forward Income penditure Transfers Development Funds £6).710 £67.582 (£40,491} 20,211 £111,012 The Restricted D¢Ytloprnent Fund5 represent amounts received to fund initiative5 designated by the donor. The transfer of funds lliio the Other fund in 202) relates to a donlOn made into the Litutgical Fund which will be used to enhance the lilurtsical experience of pilgrims Yisiting rhe Shrine. 22

WALSINGHAM TRUST NOTES TO THE FITrIANCIAL STATEMEIYTS Icontinued) FOR THE YEAR ENDED 31 DECEMBER 2024 12. ANALYSIS OF NET ASSETS BETWEEN Fuf4DS (2024) General Funds D¢signated Funds Restricted Funds Tot81 2024 Fund balance5 at 31 Deeember 2024 are represented by: Tangible assets cuellt assets Current liabilities Long terni liabilities 3.181.546 3,181,546 393,619 (735.220) (228,680) 319.129 (735.220) (228.680) 74.490 Net assets £{644.771) £3,181,546 £74.490 £2,611,265 ANALYSIS OF NET ASSETS BETWEEN FUNDS (2023) General FndS Designated FuBds Restricted Funds Totsl 2023 Fund balances at 31 Decetllber 2023 are repres¢Dted by: Tangible assets CuTTent asse Curret]L liabilities Long iemi liabilities 3.354.569 3,354,569 2?4,005 (1.087,534) (150,000) 101,431 (734,193) (150.000) 111,012 (353u41) Net assets £{782,762) £J.012.790 £111,012 £?.341.040 IJ. OPERATING LEASES The charity's comtnilments in respect of operniing lease rentsls are &s follows: 2024 2023 In respeci of operaiing lease5 expiring Within one ye - Between one and Dvo years - Between two and five year5 14.306 6,li9 2,972 12,401 22.863 14. RELATED PARTY TRANSACTIof4S The charity had borrowed a sum of £500.OW from its parent charity and member- CaTEW. The loat] was converted to a gift in the finan¢ial >'ear and is iherefore no longer repayable. In addition a new loan of £140.000 was provided durino the year by CaTEW. This loan has no fixed repayment date and has therefore been cla55ified s due within one }'ear. 23

WALSINGHAM TRUST NOTES TO THE FINANCIAL STATEMENTS (Continued) FOR THE YEAR ENDED 31 DECEMBER 21)24 IS. LOAN ANALYSIS NOTE The loans held by the Trnst at the eTLd of 2024 were £140k from CaTEW with interest rate, not Secur no r]xed repaymeni dale. £133k balance from an original £150.(KIO loan from ihe Diow of Fast Anglia. There was no interest charged in ?024. but inierest of 10/0 above base raie will be charged 2025. The loan is being repaid in monthly instatsnenis. £150k from Guild of Our Lady of Ransom with 5.5% interest r&ie. nor secure& repayable in 3 m(Trnthly insta]ments from Septernber 2025. 24

WALSINGHAM TRUST NOTES TO THE Fif4ANCIAL STATEMEf4TS (Continued) FOR THE YEAR ENDED 31 DECEMBER 2024 17. FINANCIAL INFORMATIO FOR 2023 COMPARATIVE STATEMENT OF FINANCIAL ACTIVITIES General Funds De5ignattd Funds Restrieted Funds Total 2023 INCOME FROM: Donat10115 and legacies Donatio Legacie5 875.993 47,583 928.803 21,561 21,561 Total 875.993 26.788 47,583 950.364 Charitable activities.. Shrine Hostels and Tvd Room Shops Walsingham A%sociaiion Development 38,951 838.( 4?6,560 38,951 838.006 426,560 8.925 7.069 20.000 35.994 Total 2.188.435 i3.857 67.58i 2289,875 EXPENDITURE ON: Charitable activities= Shrine Hostels and Tea RLh)m Shops Walsingham Associaiion Development 801 J90 970.i?I 294,475 2,612 405Ji6 801,390 970. j? I 294,475 2,612 691,651 245.804 40.491 Totsl 2,474.154 245,8( 40,491 2,760,449 NET {EXPENDITUREyINCOME (285.719) (211,9471 27.092 (470,574) Transfers beNeen fvnds (10211) (10.0001 20.211 NET MOVEME[[5 IIN FUNDS (?94264) (2?1.9471 47.30) (470,574) RECONCILIATION OF FUNDS: (486,8i2) i234,7j6 6),710 2,811,614 Tot81 funds brouJt f¢)Tward TOTAL FUNDS CARRIED FORWARD (£78? 76?) £3.01?.789 £111.012 £2.341.040 25

WALSlP*GHAM TRUST (A ¢ompany limiied by guarknttt) ANNUAL REPORT AND Fll¥ANCIAL STATEMENTS YEAR ENDED 3A DECEMBER 2024 Companv number. 11655451 R)stered Charity Nurnber 118069)

Walsingham Trust

Audit Findings Report

For the Year Ended 31 December 2024

1.	Introduction and Executive Summary ................................................................................................................................................................ 1
2.	Significant audit risks, and other focus areas identified during audit planning ..................................................................... 2
3.	Accounting and Audit Matters .............................................................................................................................................................................. 4
4.	Detailed control points ............................................................................................................................................................................................. 10
5.	Emerging issues ............................................................................................................................................................................................................ 17

1. Introduction and Executive Summary

This report summarises our key findings in connection with the audit of the financial statements of Walsingham Trust for the year ended 31 December 2024.

Our audit approach

Our work was planned and performed in order to issue an audit opinion on the financial statements in accordance with International Standards on Auditing (UK) (“ISAs”) and the terms of our letter of engagement. Our audit approach is a risk-based approach founded on us gaining a thorough understanding of the entity and its business in order to allow us to identify the risks of material misstatement within the financial statements. To do this, we consider both the risk inherent in the financial statements themselves and the control environment in which the entity operates. We then use this assessment to develop an effective and efficient approach to the audit.

Limitations

Our audit procedures, which have been designed to enable us to express an opinion on the financial statements, have included an examination of the transactions and the controls thereon.

Our audit included consideration of internal controls relevant to the preparation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for expressing an opinion on the effectiveness of internal control or to identify any significant deficiencies in their design or operation.

We have included in this report only those matters that have come to our attention as a result of our normal audit procedures and, consequently, our comments should not be regarded as a comprehensive record of all deficiencies that may exist or improvements that could be made.

Overall conclusion and opinion

At the time of issuing this report we anticipate issuing an unqualified opinion on the financial statements.

Walsingham Trust – Audit Findings Report | Year Ended 31 December 2024

2. Significant audit risks, and other focus areas identified during audit planning

We set out below the significant audit risks identified at the planning stage and the conclusions of our audit work:

SIGNIFICANT AUDIT RISK AREA HOW WE ADDRESSED THIS COMMENTARY Presumed risk in revenue recognition Under ISA 240 there is a presumed risk that revenue may We have undertaken a review of transactions Our audit work on revenue did not identify any material be misstated due to improper revenue recognition. We around the year end to ensure income as being issues. are required to consider and respond to the risks of recorded in the correct period including reviewing accrued and deferred income.

Under ISA 240 there is a presumed risk that revenue may be misstated due to improper revenue recognition. We are required to consider and respond to the risks of improper revenue recognition.

We have assessed the appropriateness of the recognition policies to confirm they are in line with the requirements of the Charity SORP and FRS 102.

This includes the risks that income from donations and legacies is not recognised in the correct period and that restrictions on income are not appropriately disclosed.

We performed testing of transactions around the year end to ensure the appropriateness of cut-off of income.

Measurement of income is considered lower risk as there is minimal complexity to income transactions: donations are specific amounts given freely, and accommodation bookings, merchandise and tea-room wares are offered to the public at advertised priced. As income is simple to measure, the risk of fraud in revenue measurement is rebutted. However, there is a risk that income transaction are recorded in the incorrect period, and therefore the completeness of income is considered to be significant risk.

We also tested relevant balance sheet items, including accrued income, deferred income and debtors, on a sample basis to confirm the appropriateness of items included on the balance sheet.

2 Walsingham Trust – Audit Findings Report | Year Ended 31 December 2024


SIGNIFICANT AUDIT RISK AREA	HOW WE ADDRESSED THIS	COMMENTARY


Presumed risk of management override We are required to consider and respond to the risks arising from management override of controls. Specifically, the risk over the use of journal entries to mask fraud and the manipulation of management estimates and judgements to materially alter the financial results and position.	We reviewed the accounting estimates and judgements. We have analysed the journals made in the year and determined the risk criteria for identifying higher risk journals. Subsequently significant, unusual or unexpected journal postings have been investigated and verified.	The results of our planned audit work are considered to be satisfactory in this area.

3 Walsingham Trust – Audit Findings Report | Year Ended 31 December 2024

3. Accounting and Audit Matters

3.1 Qualitative aspects of accounting practices and financial reporting

i. Key accounting estimates

Accounting estimates are defined by ISA 540 as monetary amounts for which the measurement, in accordance with the requirements of UK GAAP, is subject to estimation uncertainty. We set out our comments on the key accounting estimates relevant to the current year below.

SIGNIFICANT ACCOUNTING ESTIMATE & DETAIL

COMMENTARY

Stock – a stock take was carried out at the year-end which valued stock held at £94,113. The EPOS system which records on-line stock values showed a lower figure of £86,313 difference of £7,800. This is because stock loss and unsaleable stock had been adjusted already in the EPOS valuation and this accounts for the vast majority of the difference. Most of the slow-moving stock had been sold prior to the year-end to clear them. It is believed that whilst the stocktake figure is likely to be more accurate, the EPOS figure of £86,313 has been used, with the difference effectively being a slow-moving provision.

Although the stock take figure of £94,113 is the correct value to use, the stock figure shown in the accounts has been incorrectly shown as the EPOS figure. This means that stock is potentially understated by £7,800. Given the explanations provided, we are satisfied that the slow-moving provision is adequate.

As a specific provision has been made against slow moving and obsolete stock, it has been considered that no additional stock provision is needed to further to reduce the stock figure in the accounts.

4 Walsingham Trust – Audit Findings Report | Year Ended 31 December 2024

ii. Key judgements

Management exercises judgement in application of accounting policies while preparing the financial statements. By their nature, judgements are subjective and could be subject to bias, which affects the presentation of Walsingham Trust’s performance or financial position. We set out below the key judgements applied in the preparation of the financial statements for the current year.

SIGNIFICANT ACCOUNTING JUDGEMENT & DETAIL

COMMENTARY

The charity made a deficit in the year of £137,991 on general funds, further to an overall deficit of £470,574 in 2023.This has reduced unrestricted funds to £2,536,775, although free reserves (unrestricted funds less fixed assets) are negative £644,771. The charity also has net current liabilities of £341,601 (2023: net current liabilities of £863,529). This is a significant reduction in unrestricted funds and raises questions over the charity’s ability to continue as a going concern.

Given these additional cash flow inputs, we are satisfied with the going concern conclusion in the financial statements at present, but highlight that further deficits could significantly weaken the charity’s financial position. We recommend that the trustees continue to regularly review the charity’s financial position and performance so that prompt corrective action can be taken as and when needed.

Post year-end, the charity has taken steps to improve its cash flow, including:

It has secured a £???k loan from CaTEW to cover short time finance, as well as extending repayment periods for other loans.
A full staff review was carried out after the year end with a redundancy programme resulting in future lower staff costs.

We appreciate that some of the deficit on unrestricted funds in 2023 was due to the depreciation charge on fixed assets (£220k), and that some was due to restructuring costs. Forecasts and budgets indicate that the charity

5 Walsingham Trust – Audit Findings Report | Year Ended 31 December 2024

SIGNIFICANT ACCOUNTING JUDGEMENT & DETAIL

COMMENTARY

has sufficient funds to continue in operation for at least 12

months from the date of signing the accounts.

Legacy

The charity had in the past been notified of a legacy due. To it consisting of property and other assets. It was previously not recognized on the basis that it was not possible to quantify. However in September 2025, an interim distribution was made for £190k resulting from a sale of shares and other assets, but not including the property sale.

The £190k receipt from the sale of shares has been accrued, but as the sale of the property has not yet taken place, this element of the legacy has not been accrued.

Provision

The charity was being sued for unpaid and disputed The provision included looks reasonable in the circumstances. architects fees. A consent order is now in place for £40k which the charity now believed will be payable, In addition legal costs will be incurred which will make the provision nearer to £50k. As a result, this amount has been accrued and included in these accounts.

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3.2 Accounting and audit matters

i. Summary of adjusted and unadjusted misstatements

The following unadjusted potential errors were picked up during our audit:

Stock is potentially overstated by£7,800 (see 3.1.i above)

Creditors understated for electricity and VAT penalty £11,552

There were the following audit adjustments picked up during the course of our audit fieldwork:

Moving employee pension contributions to the SOFA from the Balance Sheet £22,895

Loan from CaTEW converted to a grant £500,000

Legacy income misposted to accrued income £10,000

Provision in respect of architects fees (see above) £50,000

Additional legacy income due £190,000

ii. Letter of representation

International Standards on Auditing require us to obtain written representations from the directors when you approve the financial statements. The letter contains only standard matters with no additional items specific to Walsingham Trust.

Walsingham Trust – Audit Findings Report | Year Ended 31 December 2024

iii. Trading Activity

As in previous years and as disclosed in note 1 to the financial statements, the Trust undertakes trading through the Slipper Chapel Shop and the Tea Room which are considered to be in pursuit of one of the primary purposes of the charity, i.e. the advancement of religion. Such primary purpose trading may be carried on by a charity without attracting a liability for taxation.

However, there is an element of the trading activity which could be deemed non-primary purpose: the sales of goods with no obvious religious significance e.g. key rings and postcards. Accommodation bookings to members of the public with no connection to the shrine, could also be potentially taxable. Nonprimary purpose trading is not taxable when undertaken by a charity if the annual value of such sales is lower than £80,000. We have no reason to believe that this value has been exceeded; however we continue to recommend that an analysis is undertaken of the amount of religious and non-religious items sold each year.

We recommend that non-primary purpose trading is identified in the annual budget and management accounts so that early action can be taken if the amount is expected to rise. If the value of all non-primary purpose trading is expected to exceed £80,000 in the future, the tax liability can be mitigated by using a subsidiary trading company which would then donate its taxable profits to the Trust under Gift Aid.

Walsingham Trust – Audit Findings Report | Year Ended 31 December 2024

3.3 Data Analytics

In additional to our usual audit tests we have used our data analytics software to interrogate transactions making up the financial statements. We extracted the full transactional listing from your accounting system. By then reconciling on a line-by-line basis the aggregate impact of the transactions made during the period we were able to confirm the completeness of the population. We then used characteristic based data analytics and a multi-dimension risk scoring logic which analysed every transaction in the population against a set of potential risk identifiers, highlighting the transactions we deemed to pose a heightened risk of fraud, error or misstatement.

The visualisation shows each unique accounting entries posted during the year, plotting the number of identical transactions (frequency) and the impact they have on the reported profit number. The visualisation highlights unusual entries which heavily impact the surplus/deficit in the top left and top right of the chart.

9 Walsingham Trust – Audit Findings Report | Year Ended 31 December 2024

Conclusion:

During the period there were a total of 9,014 transactions within Walsingham Trust’s Sage 50 Cloud system. When combined, 301 unique general ledger code combinations were found. A total of 5 combinations were flagged in the highest risk category, being those occurring fewer than 4 times and having a significant impact on reported profit (in red). There were 9 transactions within these combinations. These mainly relate to posting of accruals, accrued income, and posting of depreciation. We have investigated these entries and have not found any matters of concern.

- Test: Suspense accounts review of transactions posted to a suspense account in the year

Risk: The existence of suspense accounts can be indicative of accounting processes or systems being incomplete in their design or finance staff bypassing designed controls. Using suspense accounts causes inefficiencies and reduces the traceability of transactions.

Conclusion : There were 513 entries posted to suspense accounts in the year. We understand that suspense accounts are being used for two reasons. The main reason is for accommodation income transactions, which are initially posted to the suspense account and then at the end of each month are allocated between Elmham House, the Dowry house and deposits via a report produced from the booking system. The second reason is for credit card transactions where statements are not available until the month end. There is not any concern over these postings and consequently the high percentage compared to benchmark is not considered to be a cause for concern.

– Test: Keywords transactions where the description field or general ledger contain keywords

Risk: This test identifies any users who makes postings to the accounting system with keywords that are flagged for investigation. Postings made with words such as “correction”, “amendment” or “error” can relate to manual corrections that increase the risk of fraudulent or erroneous transactions.

Conclusion: There were 111 highlighted with “keywords” from our data analytics. These were reviewed as part of the audit, and we noted that the majority of these journals related to correcting journals for allocations and items such as depreciation postings. We consider these as normal accounting adjustments for month end and period end processes, and we did not note any issues in our review of these transactions.

– Test: Closing Entries review of transactions posted in the last 14 days of the year

Risk: Closing entries include year-end adjustments that are often significant values and only processed on an annual basis therefore risk of management override. We note that due to high values and frequency of journals posted in the final two weeks there is a greater risk of errors going undetected as well as an increased risk of management override.

Conclusion: A total of 208 transactions were entered in the last 14 days of the reporting period. We have reviewed a sample of journals posted in the year including a selection of year end journals. We have also reviewed the controls in place for posting and reviewing the journals within the finance team and we have not noted any controls weaknesses or issues with our testing.

10 Walsingham Trust – Audit Findings Report | Year Ended 31 December 2024

4. Detailed control points

During the course of our audit, we identify detailed control points that we feel need to be brought to the attention of the Trustees and certain recommendations for improvements and/or corrective action. Our audit included consideration of internal controls relevant to the preparation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for expressing an opinion on the effectiveness of internal control or to identify any significant deficiencies in their design or operation. The matters and detailed control points that we have identified are graded within the following framework to assist the Trustees in assessing their impact.

RATING	RATING TYPE	CHARACTERISTICS OF RATING TYPE
Significant These findings are considered to be significant to the management of risk in the business. The finding represents a serious weakness in systems and controls currently in place or a potentially fundamental control that has been omitted from the risk management systems as currently in operation. • Key control omitted • Key control not designed or operating effectively, for example as indicated by multiple exceptions found during our review work • Evidence of override of controls in place with significant or potentially fraudulent outcomes • Non-compliance with laws and regulations
Important Important findings that should be reviewed by management, pending corrective action and or updates to systems and controls. • Errors and exceptions noted during our testing that had corrected retrospectively during the year by management. • Potential improvement to existing control noted • Possibility for override of controls exists • Our review noted numerous exceptions but not in key controls
Limited Findings that identify non-compliance with established systems and controls. • Minor control weakness, for example limited exceptions noted during our review work
Advisory Items requiring no immediate action but which may be of interest to management or best practice advice. • Information for department management • Control operating but scope for efficiency and/or effectiveness improvements exist • Control operating but not necessarily in accordance with best practice • Recent or anticipated developments may necessitate new controls.

11 Walsingham Trust – Audit Findings Report | Year Ended 31 December 2024

We wish to bring the following matters to your attention which arise from the current year audit as well as the latest status of outstanding issues arising from previous year audits:

Current year

ISSUE: MISSING DOCUMENTATION			CONTROL POINT RATING:	IMPORTANT
Risk	Our comments & proposals	Management response
During our audit, there were several documents that could not be located. This included backup for some income items (deposits and bank receipts) as well as loan documentation and property sales.	The charity should retain documentation for all transactions.

ISSUE: CREDIT CARD AUTHORISATION			CONTROL POINT RATING:	IMPORTANT
Risk	Our comments & proposals	Management response
During our testing, we found no evidence of authorisation of credit card expenditure. This could mean that unauthorised expenditure will be incurred.	It should be ensured that all credit card expenditure be authorised and evidence of this should be retained.

12 Walsingham Trust – Audit Findings Report | Year Ended 31 December 2024

We identified the following issues in the prior year audit and made the following recommendations. We have followed up the status of the issue in the current year:

Prior year

ISSUE: VAT RECONCILIATIONS			CONTROL POINT RATING:	IMPORTANT
Risk	Our comments & proposals	Current year update
Preparation of VAT returns has been outsourced to a local firm of accountants. Although the returns were prepared based on the information supplied to them, significant accommodation income transactions were omitted in error. This arose due to a change in accounting procedures. Previously, each sales invoice was posted individually to the accounting system. Following a change in processes, invoices were posted in batches instead. Although the VAT element of these invoices was posted directly to the VAT account, they were not given a VAT code, meaning they were not picked up when the return was prepared. A reconciliation between the VAT return and the accounting system had not been carried out in the past, which would have highlighted these discrepancies. When a reconciliation was carried out in the year, (at our request as part of the 2022 audit) it was found that there was an underpayment of £85k as a result of these entries. The underpayment will be repaid to HMRC and an agreement to repay the sum in instalments is currently in progress. In addition, in the current year, VAT was reconciled from returns to the accounts and it was found to not reconcile by £9,378. This is currently being investigated.	We recommend that a VAT reconciliation should be carried out each quarter to avoid such problems in the future.	No reconciliation was carried out in the year, but during our audit, we carried out our own reconciliation and found there was an overall difference of £585.

13 Walsingham Trust – Audit Findings Report | Year Ended 31 December 2024

ISSUE: IT CONTROL PROCEDURES			CONTROL POINT RATING:	IMPORTANT
Risk	Our comments & proposals	Current year update
Our IT questionnaire, which was introduced as a result of revisions to ISA (international standards on auditing) 315 highlighted the following: a) Although the IT network is noted in the shrine management system, there is no IT network diagram providing a visual representation of the structure of IT network, its components and how they interact, including routers, devices, hubs and firewalls. b) Penetration testing has not been carried out – this is important to check if unauthorised access to the system is possible. c) Intrusion detection systems have not been implemented and automated alerts are not in place,within the charity’s systems, although these are in place on the website. IT network scanning on a continuous basis is not carried out. This is intended to detect unauthorised access to the IT network.	We recommend that these points are discussed with the Charity’s IT manager to help improve the charity’s IT systems.	These policies are in the process of being reviewed.

14 Walsingham Trust – Audit Findings Report | Year Ended 31 December 2024

ISSUE: DELAYS IN POSTING TRANSACTIONS			CONTROL POINT RATING:	IMPORTANT
Risk	Our comments & proposals	Current year update
We note that there was a backlog of accounting transaction postings in the year with some postings for October/November 2023 not being made until January 2024. This was due to staff shortages. In addition, accounting journals for items such as depreciation and accrualswere only being posted once a year, although we understand this has been changed to quarterly. The issue with late postings would mean that any management accounts produced would not be accurate and due to recent cash flow issues, it is vital for trustees to be able to se an accurate cash flow position and the latest forecasts.	Postings should be made on a timely basis so that any reports produced are up to date.	Due to shortage of staff, this was again the case.

ISSUE:	PAYE BALANCE		CONTROL POINT RATING:	RESOLVED
Risk		Our comments & proposals	Management response
At the year-end, a PAYE liability reconciliation was prepared, and it was noted that there was a creditor of £7,105 that appeared to relate to prior months; although the payment of PAYE liabilities was considered to be up to date. We understand that this will be fully reconciled in the current year.		PAYE should be reconciled on a monthly basis.	This was carried out in the year.

15 Walsingham Trust – Audit Findings Report | Year Ended 31 December 2024

ISSUE: USE OF PERSONAL CREDIT CARDS		CONTROL POINT RATING:	ADVISORY
Risk	Our comments & proposals	Management response
Staff currently use their personal credit cards for business expenses, which are subsequently reimbursed. For administrative convenience and to ensure P11d returns in respect of the reimbursed expenses are not required, we would recommend that company credit cards are used instead.	The charity should consider using company credit cards instead of reimbursing individuals.	Personal expenses are still incurred but these have been minimised.

16 Walsingham Trust – Audit Findings Report | Year Ended 31 December 2024

5. Emerging issues

Sector specific matters

A link to our most recent updates can be found here:

Social Purpose eNews
Schools briefing
International briefing
PIMBs briefing
Employment tax briefing

Charity reporting and governance matters

Fundraising levy review

In April 2024 the Fundraising Regulator announced plans to increase their yearly fundraising levy for the first time since its introduction in 2016. Each year there are around 2,000 charities covered by the levy, which is charged to charities who are registered with the Fundraising Regulator. The levy will increase for everyone, but the more you as a charity spend on fundraising, the higher that percentage increase will be. Conversely, the less you spend on fundraising, the lower it will be.

The revised rates took effect from September 2024, with further increases from September 2025. Details of the rate changes can be found here.

Raising a concern with the Charity Commission

In June 2025 the Commission issued updated guidance which sets out when to raise concerns about a charity with the Commission as well as what it can do or cannot do within its remit of helping charities in England and Wales be accountable, well-run and meet their legal obligations. The guidance also covers where and how it can and will act and how it prioritises the most serious concerns that present risk of significant harm to, or abuse of, charities, their beneficiaries or assets or to trust and confidence in the sector.

An improved online ‘raising a concern’ form on gov.uk for members of the public, which still allows evidence to be attached, now provides new signposting to make it easier for a charity’s trustees, employees and volunteers to raise concerns in the right way via alternative routes for whistleblowing, reports of serious incidents or matters of material significance.

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Guidance on what is required in the 2025 Annual return

The Commission have issued a question guide to help charities understand the information that will be needed for their 2025 annual return submission. The guidance can be found here.

Updated guidance on decision-making for charity trustees (CC27)

In September 2024 the Charity Commission published updates to its guidance on making trustee decisions. The aim of these updates is to make the guidance more accessible and easier to use, however the backbone of the guidance remains the seven principles developed by the courts when they reviewed decisions made by trustees, which we have set out below.

When making decisions, trustees must:

act within their powers
act in good faith
be sufficiently informed
take into account all relevant factors
identify and disregard any irrelevant factors
manage conflicts of interest
ensure their decision is within the range of decisions that a reasonable trustee body could make

The revised guidance can be found here.

Updated guidance on “improving your charity’s finances” (CC12)

In September 2024 the Charity Commission published updates to its guidance on “improving your charity’s finance”. These updates are aimed at making the guidance more accessible and provide advice on actions that can protect charities against financial difficulties, as well as understanding what to do if a charity is insolvent, or at risk of insolvency.

The updated guidance, which is separated depending on the legal structure of the charity, can be found here.

Volunteers

The Social Purposes sector relies heavily on its volunteers. Typically, these are unpaid and may in certain circumstances be paid out of pocket expenses. This is usually

18 Walsingham Trust – Audit Findings Report | Year Ended 31 December 2024

limited to food, drink, travel or any equipment they need to buy to undertake their duties. Normally, there are no employment taxes implications for reimbursement of these out of pocket expenses as long as they are reasonable.

If the volunteers are paid expenses that do more than reimburse the costs incurred then HMRC may contend that they are receiving remuneration for their services. In which case, the payments will be taxable as employment income if it can be shown that they either hold an office or employment. If they do not hold an office or employment, the payments may be Miscellaneous Income.

In an Employment tribunal case in 2024 M Groom v Maritime and Coast Guard Agency, the volunteer was judged to be a worker which confers employment rights such as holiday pay, National Minimum/Living wage etc. It is therefore imperative that the correct policies, controls and governance are in place to avoid any possible successful employment status challenge by HMRC.

Financial Reporting

Financial reporting framework

UK GAAP Developments – FRS 102

Following the Periodic Review and other amendments to UK and Ireland accounting standards, the Financial Reporting Council (FRC) issued revised versions of FRSs 100, 101, 102, 103, 104 and 105. The FRC has also revised the “Overview of the financial reporting framework”.

The changes to FRS 102 include the significant revisions made to leasing and revenue recognition which arose from the Periodic Review 2024. Most of these amendments are effective for accounting periods beginning on or after 1 January 2026, although those changes that relate to “supplier finance arrangements” have an earlier effective date of accounting periods beginning on or after 1 January 2025.

These amendments seek to provide greater consistency and more (but not total) alignment to international accounting standards including:

A new 5 step model for revenue recognition, which is aligned to IFRS 15: Revenue from Contracts with Customers, (with some simplifications);
On balance sheet lease accounting for lessees, aligned to IFRS 16: Leases, (with certain practical exemptions); and
Other modifications to fair value measurement, uncertain tax positions, business combinations, and a revised Section 2 aligned with IASB’s Conceptual Framework.

The effective date for most amendments is periods beginning on or after 1 January 2026, with early adoption permitted. The new standard sets out the requirements for the restatement of comparative amounts. There are choices available in some areas of change but others are more prescriptive so you will need to take care to ensure that you have complied with each relevant requirement and made the appropriate disclosures.

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The transition to the new requirements will take careful planning for many organisations currently following FRS 102. For instance, many organisations will see leases (and debt) hit their balance sheets for the first time. For some this will seem strange and for most will require careful planning to ensure, amongst other things, that all leases are captured, the financial effects are known, effects on reporting requirements e.g. covenants are understood.

The new accounting standards are available on the FRC website here. Note that despite the effective dates in the future, the new versions are described as the “current edition” with versions that are still in use described as “superseded editions.”

With the changes to FRS 102, a new exposure draft of the charities SORP has been issued and has now been through its period of consultation. The exposure draft includes the changes noted above as they are relevant to charities, but has also introduced a three tier system categorising charities by size. The requirements of the SORP relevant to each size have then been clearly set out in the standard. A link to our webinar on the exposure draft can be found here.

Employment Tax

Increase in employer’s National Insurance contributions (NIC)

The Government, as part of the Autumn Budget, introduced an increase in employer’s Class 1 National Insurance contributions (NIC), rising by 1.2% to 15% and the reduction to the threshold at which employers will start to pay NIC to £5,000 from 6 April 2025. It is intended that threshold limit will be fixed until 5 April 2028 and will increase in line with CPI thereafter.

The increase will also apply to Class 1A NIC (benefits in kind) and Class 1B (PAYE settlement agreements) will also apply from 6 April 2025.

The Employment Allowance will increase from 6 April 2025 from £5,000 to £10,500. The increased allowance will be available to all employers, not just those with a Class 1 NIC liability of less than £100,000. This means all eligible businesses and charities will be able to claim a greater reduction on their secondary Class 1 NICs liability, irrespective of what their secondary Class 1 NICs liabilities were in the tax year prior to the year of the claim.

Increase in National Living Wage

The National Minimum Wage and National Living Wage rate increased with effect from 1 April 2025.

20 Walsingham Trust – Audit Findings Report | Year Ended 31 December 2024

Details	NMW rate £	Increase £	Percentage increase %
National Living Wage (21 and over)	£12.21	£0.77	6.7
18-20 year old rate	£10.00	£1.40	16.3
16-17 year old rate	£7.55	£1.15	18.0
Apprentice rate	£7.55	£1.15	18.0
Accommodation offset	£10.66	£0.67	6.7

As part of the announcement the minimum hourly rates of pay for those aged between 16-years of age and the apprentice rate have been aligned.

Employers will need to ensure that their payroll data is fully updated to reflect the increases.

Pension salary exchange

After much speculation, the Government has not made any changes in tax relief on employees’ pension contributions. Furthermore, NIC will not be levied on employer pension contributions, so pension salary exchange can be used to mitigate the increase in employers NIC.

However, with the release of a research paper commissioned by HMRC titled ‘Understanding the attitudes and behaviours of employers towards salary sacrifice for pensions’, the spotlight has shifted back on possible changes to the pension salary exchange. Our article here explores the possible changes and the action charities can take to mitigate any impact.

If you do not provide your employer pension in conjunction with a pension salary exchange arrangement, then this will be an ideal time, especially in view of the above research paper, to consider implementing such an arrangement, the benefits of which include:

Providing pensions in a National Insurance efficient manner.
Encourage employees to think about their saving for their retirement.
Increase employee engagement.
Help employers to maximize their salary budget.

21 Walsingham Trust – Audit Findings Report | Year Ended 31 December 2024

If you already have a pension salary exchange in place, given the Government’s recent announcements, now will be an ideal time to see whether it is achieving all your objectives.

The use of a tax and NIC efficient salary can also be used to provide employees with an electric car. The chargeable percentage for electric vehicles is currently 3% and will increase by 1% in the subsequent tax years then rising by 2% in 2028/29 and 2029/30, to 9% in 2029/30. The use of providing an electric vehicle in conjunction with a salary sacrifice will continue to be a viable option for employers who are looking at providing cars to their employees/directors.

Umbrella companies – tackling anti-avoidance

The Government continues to challenge the perceived tax avoidance with the use of umbrella company arrangements. Future legislation will be published whereby the obligation to operate PAYE on payments made to workers whose services are provided through an umbrella company will sit with the agency. Where there is no agency, then the obligation will fall onto the end client. It is expected that further guidance will follow before the draft legislation is published.

The draft legislation is expected to be published in mid-July 2025, with the changes taking effect from April 2026.

HMRC has since published examples of good practices for umbrella companies. Our article sets out these examples in more detail here.

Company cars/ vans

The government has uprated the Van Benefit Charge and the Van Fuel Benefit Charges by CPI from 6 April 2025. The new flat-rate van benefit charge and the flat-rate van fuel benefit charge will increase to £4,020 and £769 respectively.

The multiplier for the car fuel benefit increased to £28,200.

Double cab pickups

Due to the Court of Appeal ruling in Payne & Ors (Coca-Cola) v R & C Commrs (2020) BTC19, HMRC will no longer align its interpretation of the terms “car” and “van” for tax purposes with the definitions used for VAT purposes. Our article delves in the detail here.

Ending contrived car ownership schemes

The government will publish draft legislation relating to loopholes in car ownership arrangements, through which an employer or a third party sells a car to an employee, often via a loan with no repayment terms and negligible interest, then buys it back after a short period.

This arrangement means those benefiting don’t pay company car tax, which other employees pay, and so this measure will seek to level the playing field.

The changes will take effect from 6 April 2026, however, draft legislation has not been published to date.

22 Walsingham Trust – Audit Findings Report | Year Ended 31 December 2024

Mandating the reporting of benefits in kind via payroll software

The government confirms that the use of payroll software to report and pay tax on benefits in kind will become mandatory, in phases, from April 2027. This will apply to income tax and Class 1A NICs. Our article covers this in more detail here.

Employment Tax Update

Our recent Employment Tax update has been published here, and includes HMRC compliance targeting of directors loans written off, new umbrella legislation, and employers PAYE disputed charges update.

VAT

VAT Registration Threshold

From 1 April 2024, the VAT registration threshold increased from £85,000 to £90,000. The deregistration threshold also increased from £83,000 to £88,000.

VAT on energy saving materials

From 1 February 2024, the zero rate relief in respect of the installation of Energy Saving Materials in buildings used solely for a relevant charitable purpose has been reinstated. This allows qualifying charities to install such materials and benefit from the zero rate as long as the installations are taking place in a property which is to be used otherwise than in the course or furtherance of business.

Late payment and return submission penalties

The penalty regime (that came into effect on 1 January 2023) for the late submission of VAT returns and the late payment of returns allows penalties to be issued if a return is submitted late even if the relevant return shows no VAT was due. In 2025, HMRC increased both the late payment penalties and the rate of late payment interest.

The late payment penalties are as follows:

3% of the tax outstanding after 15 days,
3% after 30 days, and
10% after 31 days

Alongside this, the rate of late payment interest increased from 2.5% above the base rate to 4% above the base rate. As at 28 May 2025 the late payment interest rate is 8.25%.

23 Walsingham Trust – Audit Findings Report | Year Ended 31 December 2024

Considering the above, organisations should ensure they have procedures in place if key personnel are unavailable when a return becomes due for submission to limit the financial impact of not meeting the compliance deadlines.

Fundraising Events

In 2025, HMRC has updated its interpretation of the VAT exemption for fundraising events.

Multiple Purposes Allowed: Events can now qualify for VAT exemption even if fundraising is just one of several main purposes.
Promotion Rule Relaxed: Events no longer need to be advertised as “primarily” for fundraising to qualify but still need to be advertised as fundraising events.
Clearer Event Definition: Only planned, one-off events qualify—not ongoing activities like shops or cafés.

These changes give organisations greater flexibility to run events that serve multiple goals—like education, awareness, and fundraising—while still benefiting from VAT exemption, helping them maximise the value of every pound raised.

Other matters

Changes to Companies House filing arrangements

One consequence of the Economic Crime and Corporate Transparency Bill 2022 is that Companies House will have extended powers to mandate how companies submit their accounts for filing. Companies House has published proposals to move to a fully digital, software-based filing process for all registered companies, including dormant companies.

The detailed timetable for implementation will be published in due course, following the passage of the Bill to Royal Assent, but Companies House has indicated that there will be a phased implementation to enable all accounts filers to obtain suitable software.

We will provide updates on this as the Bill proceeds through the legislative process.

HMRC “customer” service standards

There are increasing delays in obtaining responses from HMRC ranging from delays in the region of six months in processing applications for VAT registrations, delays in obtaining repayments, a decision to cease acknowledging option to tax notifications. If you anticipate having any interaction with HMRC then factor in additional time.

24 Walsingham Trust – Audit Findings Report | Year Ended 31 December 2024

Auditing developments

ISA (UK) 600 “Special Considerations - Audits of Group Financial Statements (Including the Work of Component Auditors)” Revised)

In September 2022 the FRC published ISA (UK) 600 “Special Considerations - Audits of Group Financial Statements (Including the Work of Component Auditors)“ Revised).

The revision introduces changes to the audit standard to ensure it better reflects other new and recently revised standards, such as the quality management standards and the revised ISA 315. This standard is now in operation for all group audits.

A key change is the introduction of a proactive risk-based approach to the audit of groups. As with the recent changes to ISA 315, this means more focus on identifying and assessing the risks of material misstatement, planning the approach to the audit and performing engagement procedures that respond to the assessed risks.

Amendments have also been made to clarify how the requirements in ISA 220 (Revised) apply to group audits. These focus on the resources needed to perform the engagement, and the direction and supervision of the engagement team and the review of its work. The definition of ‘engagement team’ includes component auditors.

The definition of a component has been revised and greater importance has been given to the consideration of risks of material misstatement at the assertion level of the group financial statements that are associated with components.

The requirements for robust two-way communication between the group and component auditor have been further strengthened and there are enhanced requirements in relation to professional scepticism.

The revised ISA also includes expanded and increased documentation requirements and clarifies the restrictions on access to people or information that might exist, including guidance on how these might be overcome.

As the requirements are principles-based, ISA 600 (Revised) is intended to be scalable for group audits of differing complexity however the changes will result in more work for the group engagement team and group engagement partner, particularly in light of the enhanced responsibilities for direction, supervision and review of the work of component auditors.

Materiality in practice

The FRC has published “Materiality in practice: applying a materiality mindset,” a report looking at how companies can improve their reporting by being more focused and strategic when assessing materiality. The report, in four sections, recognises that removing irrelevant information strengths the value of an entity’s reporting and encourages preparers to think about investors’ needs and decision making and take a holistic approach towards materiality. It also encourages preparers to focus on the key issues that management and the board are prioritising across the short, medium and long-term. Read more here.

25 Walsingham Trust – Audit Findings Report | Year Ended 31 December 2024

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Walsingham Trust

Table of Contents

1. Introduction and Executive Summary

Our audit approach

Limitations

Overall conclusion and opinion

2. Significant audit risks, and other focus areas identified during audit planning

3. Accounting and Audit Matters

3.1 Qualitative aspects of accounting practices and financial reporting

i. Key accounting estimates

SIGNIFICANT ACCOUNTING ESTIMATE & DETAIL

COMMENTARY

ii. Key judgements

SIGNIFICANT ACCOUNTING JUDGEMENT & DETAIL

COMMENTARY

SIGNIFICANT ACCOUNTING JUDGEMENT & DETAIL

COMMENTARY

Legacy

Provision

3.2 Accounting and audit matters

i. Summary of adjusted and unadjusted misstatements

ii. Letter of representation

iii. Trading Activity

3.3 Data Analytics

Conclusion:

- Test: Suspense accounts review of transactions posted to a suspense account in the year

– Test: Keywords transactions where the description field or general ledger contain keywords

– Test: Closing Entries review of transactions posted in the last 14 days of the year

4. Detailed control points

Current year

Prior year

5. Emerging issues

Sector specific matters

Charity reporting and governance matters

Volunteers

Financial Reporting

Financial reporting framework

Employment Tax

Umbrella companies – tackling anti-avoidance

Company cars/ vans

Double cab pickups

Ending contrived car ownership schemes

Mandating the reporting of benefits in kind via payroll software

Employment Tax Update

VAT

VAT Registration Threshold

Late payment and return submission penalties

Fundraising Events

Other matters

HMRC “customer” service standards

Auditing developments

Materiality in practice