Charity registration number 01203417
SOUTHWARK, ARUNDEL & BRIGHTON BRETHREN CIO ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 11 FEBRUARY 2025
SOUTHWARK, ARUNDEL & BRIGHTON BRETHREN CIO
LEGAL AND ADMINISTRATIVE INFORMATION
| Trustees | Father Paul Hough |
|---|---|
| Father Gerard Bradley | |
| Frederika F Pizzoferro | |
| Charity number | 01203417 |
| Principal address | 3 Birch Way |
| Warlingham | |
| CR6 9DA | |
| Independent examiner | Sam Thomas |
| Azets Audit Services | |
| Trinity Court | |
| 34 West Street | |
| Sutton | |
| Surrey | |
| SM1 1SH | |
| Bankers | CAF Bank |
| 25 KIngs Hill Avenue | |
| West Malling | |
| ME19 4JQ | |
| Solicitors | Hewlett Swanson |
| Centurion House | |
| 129 Deansgate | |
| Manchester | |
| M3 3WR | |
| Investment advisors | JM Finn & Co |
| 4 Coleman Street | |
| London | |
| EC2R 5TA |
SOUTHWARK, ARUNDEL & BRIGHTON BRETHREN CIO
CONTENTS
| Page | |
|---|---|
| Trustees' report | 1 - 2 |
| Independent examiner's report | 3 |
| Statement of financial activities | 4 |
| Statement of financial position | 5 |
| Notes to the financial statements | 6 - 12 |
SOUTHWARK, ARUNDEL & BRIGHTON BRETHREN CIO
TRUSTEES' REPORT
FOR THE YEAR ENDED 11 FEBRUARY 2025
The trustees present their annual report and financial statements for the year ended 11 February 2025.
The accounts have been prepared in accordance with the accounting policies set out in the attached accounts and comply with the Charity’s Trust Deed, the Charities Act 2011 and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).
Objectives and activities
The Charity’s aims include advancing the Roman Catholic religion in the Roman Catholic Dioceses of Southwark, Arundel and Brighton, supporting charitable works and objectives promoted by the Roman Catholic Church. The principal way in which the Charity achieves these objectives is by providing funding for the welfare of priests who are sick or priests that are in need.
In planning the activities of the Charity for the year, the Trustees have considered the guidance on public benefit issued by the Charities Commission.
The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.
On 12 February 2024, The Charity of the Southwark Brethren and Southwark, Arundel & Brighton Brethren CIO merged into one charity, under the name of Southwark, Arundel & Brighton Brethren CIO.
Achievements and performance
Voluntary income is a key source of funds for the Charity. During the year donations were £6,757 (2024 - £15,448). Legacy income recognised in the year was nil (2024 - nil).
The current investment objective is to manage the portfolio on a total return basis, which can result in expenditure exceeding income before legacies received and gains/losses on investments. Retired priests do not automatically receive a payment when they retire instead they undergo an assessment of their needs. The Charity works with the Diocese and now makes payments based on this assessment to include payments to cover care costs of priests.
Masses for deceased clergy were not held during the year.
Financial review
A healthy level of free reserves is essential to ensuring that the Charity can sustainably continue to develop its mission and is an important part of how the Charity is resilient.
There are two main risks that would impact the level of free reserves:
-
Increasing number of priests retiring that may need support, and
-
A shock to asset values of the investments held.
The Trustees believe the current level of free reserves are more the adequate to withstand the impact of these two main risks.
Structure, governance and management
The charity is a registered charitable incorporated organisation, number 01203417, and is governed under a constitution dated 17 July 2024.
The Trustees who served in the year and up to the date of signature of the financial statements were: Father Paul Hough Father Gerard Bradley Frederika F Pizzoferro
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SOUTHWARK, ARUNDEL & BRIGHTON BRETHREN CIO
TRUSTEES' REPORT (CONTINUED)
FOR THE YEAR ENDED 11 FEBRUARY 2025
Investment Policy
The Trustees set the Investment Guidelines. The Trustees have decided to employ a professional investment management firm, J M Finn & Co., to manage our investments. The overall long-term objective is to manage the portfolio on a total return basis.
The Trustees regularly review information from their investment managers, monitor the performance of the portfolio against their Investment Guidelines and assess the suitability of the investment strategy. The Trustees reviewed the investment performance during the year and remain confident that their medium to long-term investment strategy is being achieved.
The trustees' report was approved by the Board of Trustees.
Frederika F Pizzoferro
Trustee
27 May 2025
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SOUTHWARK, ARUNDEL & BRIGHTON BRETHREN CIO
INDEPENDENT EXAMINER'S REPORT
TO THE TRUSTEES OF SOUTHWARK, ARUNDEL & BRIGHTON BRETHREN CIO
I report to the trustees on my examination of the financial statements of Southwark, Arundel & Brighton Brethren CIO (the charity) for the year ended 11 February 2025.
Responsibilities and basis of report
As the trustees of the charity you are responsible for the preparation of the financial statements in accordance with the requirements of the Charities Act 2011 (the 2011 Act).
I report in respect of my examination of the charity’s financial statements carried out under section 145 of the 2011 Act. In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
Independent examiner's statement
Your attention is drawn to the fact that the charity has prepared financial statements in accordance with Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has now been withdrawn.
I understand that this has been done in order for financial statements to provide a true and fair view in accordance with Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2015.
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
-
1 accounting records were not kept in respect of the charity as required by section 130 of the 2011 Act; or
-
2 the financial statements do not accord with those records; or
-
3 the financial statements do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination.
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.
Sam Thomas
Azets Audit Services
Trinity Court 34 West Street Sutton Surrey SM1 1SH United Kingdom
Dated: .........................28 May 2025
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SOUTHWARK, ARUNDEL & BRIGHTON BRETHREN CIO
STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 11 FEBRUARY 2025
| TCOTSB | SABBCIO | Combined | Combined | ||
|---|---|---|---|---|---|
| **Unrestricted ** | Unrestricted | Total | Total | ||
| funds | funds | ||||
| 2025 | 2025 | 2025 | 2024 | ||
| Notes | £ | £ | £ | £ | |
| Income and endowments from: | |||||
| Donations and legacies | 3 | - | 6,757 | 6,757 | 15,448 |
| Investments | 4 | - | 123,370 | 123,370 | 71,960 |
| Other income | 5 | - | 53 | 53 | 137 |
| Total income | - | 130,180 | 130,180 | 87,545 | |
| Expenditure on: | |||||
| Raising funds | 6 | - | 27,343 | 27,343 | 23,985 |
| Charitable activities | 7 | - | 171,034 | 171,034 | 167,164 |
| Total expenditure | - | 198,377 | 198,377 | 191,149 | |
| Net gains/(losses) on investments | 11 | - | 190,674 | 190,674 | (100,678) |
| Net movement in funds | - | 122,477 | 122,477 | (204,282) | |
| Fund balances at 12 February 2024 | 4,240,024 | - | 4,240,024 | 4,444,306 | |
| Fund balances at 11 February 2025 | 4,362,501 | 4,240,024 |
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
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SOUTHWARK, ARUNDEL & BRIGHTON BRETHREN CIO
STATEMENT OF FINANCIAL POSITION
AS AT 11 FEBRUARY 2025
| Notes Fixed assets Investments 13 Current assets Debtors 14 Cash at bank and in hand Creditors: amounts falling due within one year 15 Net current assets Total assets less current liabilities Income funds Unrestricted funds |
2025 £ £ 4,355,130 1,158 12,832 13,990 (6,619) 7,371 4,362,501 4,362,501 4,362,501 |
Combined 2024 £ £ 4,209,784 129 36,111 36,240 (6,000) 30,240 4,240,024 4,240,024 4,240,024 |
Combined 2024 £ £ 4,209,784 129 36,111 36,240 (6,000) 30,240 4,240,024 4,240,024 4,240,024 |
|---|---|---|---|
| 4,240,024 | |||
| 4,240,024 | |||
| 4,240,024 |
The financial statements were approved by the Trustees on 27 May 2025
Frederika F Pizzoferro
Trustee
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SOUTHWARK, ARUNDEL & BRIGHTON BRETHREN CIO
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 11 FEBRUARY 2025
1 Accounting policies
Charity information
Southwark, Arundel & Brighton Brethren CIO is a charitable incorporated organisation registered with the Charity Commission in England & Wales. They are goverened under the consistution dated 17 July 2024. The office address is 3 Birch Way, Warlinham, CR6 9DA.
1.1 Accounting convention
The financial statements have been prepared in accordance with the charity's constitution, the Charities Act 2011, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019). The charity is a Public Benefit Entity as defined by FRS 102.
The charity has taken advantage of the provisions in the SORP for charities not to prepare a Statement of Cash Flows.
The financial statements have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a true and fair view. This departure has involved following the Statement of Recommended Practice for charities applying FRS 102 rather than the version of the Statement of Recommended Practice which is referred to in the Regulations but which has since been withdrawn.
The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2 Charity merger
On 12 February 2024, the following charities merged into this set of financial statements.
| Name | Charity number |
|---|---|
| The Charity of the Southwark Brethren | 281950 |
| Southwark, Arundel & Brighton Brethren CIO | 1203417 |
The principal objective of both charities is for the relief of poverty and the relief of need by reason of sickness, infirmity convalescence or disability, among Roman Catholic Priests incardinated into any diocese of the Roman Catholic church.
The accounting policies of both charities were the same and therefore no adjustments have had to be made.
1.3 Going concern
At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
1.4 Charitable funds
Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.
Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.
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SOUTHWARK, ARUNDEL & BRIGHTON BRETHREN CIO
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 11 FEBRUARY 2025
1 Accounting policies
(Continued)
Endowment funds are subject to specific conditions by donors that the capital must be maintained by the charity.
1.5 Income
Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.
Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.
1.6 Expenditure
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.
Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.
1.7 Fixed asset investments
Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year. Transaction costs are expensed as incurred.
1.8 Cash and cash equivalents
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.9 Financial instruments
The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
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SOUTHWARK, ARUNDEL & BRIGHTON BRETHREN CIO
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 11 FEBRUARY 2025
1 Accounting policies
(Continued)
Basic financial liabilities
Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Derecognition of financial liabilities
Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.
1.10 Employee benefits
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
2 Critical accounting estimates and judgements
In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
3 Donations and legacies
| **Unrestricted ** | Unrestricted | |
|---|---|---|
| funds | funds | |
| 2025 | 2024 | |
| £ | £ | |
| Donations and gifts | 6,757 | 15,448 |
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SOUTHWARK, ARUNDEL & BRIGHTON BRETHREN CIO
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 11 FEBRUARY 2025
4 Investments
| **Unrestricted ** | Unrestricted | |
|---|---|---|
| funds | funds | |
| 2025 | 2024 | |
| £ | £ | |
| Income from listed investments | 101,405 | 66,873 |
| Interest receivable | 21,965 | 5,087 |
| 123,370 | 71,960 |
5 Other income
| 6 | Unrestricted Unrestricted funds funds 2025 2024 £ £ Other income 53 137 Raising funds Unrestricted Unrestricted funds funds 2025 2024 £ £ Investment management 27,343 23,985 27,343 23,985 |
Unrestricted Unrestricted funds funds 2025 2024 £ £ Other income 53 137 Raising funds Unrestricted Unrestricted funds funds 2025 2024 £ £ Investment management 27,343 23,985 27,343 23,985 |
|---|---|---|
| 23,985 |
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SOUTHWARK, ARUNDEL & BRIGHTON BRETHREN CIO
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 11 FEBRUARY 2025
7 Charitable activities
| Charitable | Charitable |
|
|---|---|---|
| Expenditure | Expenditure | |
| 2025 | 2024 | |
| £ | £ | |
| Charitable expenditure | 154,275 | 141,756 |
| Share of support costs (see note 8) | 5,719 | 2,428 |
| Share of governance costs (see note 8) | 11,040 | 22,980 |
| 171,034 | 167,164 |
8 Support costs
| Printing, postage & stationery Telephone & internet Motor running expenses Insurance Advertising Bank charges Audit fees Legal and professional Analysed between Charitable activities |
Support costs Governance costs £ £ 4,682 - 427 - 15 - 302 - 210 - 83 - - 7,500 - 3,540 5,719 11,040 5,719 11,040 |
2025 £ 4,682 427 15 302 210 83 7,500 3,540 16,759 16,759 |
Support costs Governance costs £ £ 2,001 - 141 - - - 181 - 33 - 72 - - 5,220 - 17,760 2,428 22,980 2,428 22,980 |
2024 £ 2,001 141 - 181 33 72 5,220 17,760 |
|---|---|---|---|---|
| 25,408 | ||||
| 25,408 |
Governance costs includes payments to the auditors of £7,500 (2024: £5,220) for audit fees.
9 Trustees
None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year.
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SOUTHWARK, ARUNDEL & BRIGHTON BRETHREN CIO
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 11 FEBRUARY 2025
10 Employees
The average monthly number of employees during the year was:
| Total There were no employees whose annual remuneration was more than £60,000. |
2025 Number - |
2024 Number - |
|---|---|---|
11 Net gains/(losses) on investments
| **Unrestricted ** | Unrestricted | |
|---|---|---|
| funds | funds | |
| 2025 | 2024 | |
| £ | £ | |
| Revaluation of investments | 190,674 | (100,678) |
12 Taxation
The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.
13 Fixed asset investments
| Listed | |
|---|---|
| investments | |
| £ | |
| Cost or valuation | |
| At 12 February 2024 | 4,209,784 |
| Valuation changes | 190,674 |
| Movement | (45,328) |
| At 11 February 2025 | 4,355,130 |
| Carrying amount | |
| At 11 February 2025 | 4,355,130 |
| At 11 February 2024 | 4,209,784 |
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SOUTHWARK, ARUNDEL & BRIGHTON BRETHREN CIO
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 11 FEBRUARY 2025
| 14 Debtors Amounts falling due within one year: Prepayments and accrued income 15 Creditors: amounts falling due within one year Trade creditors Accruals and deferred income |
2025 £ 1,158 2025 £ 319 6,300 6,619 |
2024 £ 129 |
|---|---|---|
| 2024 £ - 6,000 |
||
| 6,000 |
16 Related party transactions
There were no disclosable related party transactions during the year (2024 - none).
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