2020-12-31-accounts

St Monica Trust

Report of the Trustee and consolidated financial statements Registered charity number 202151

Year ended 31 December 2020

Report of the Board and consolidated financial statements Year ended 31 December 2020

Contents

Report of the Trustee	1
Statement of Trustees’ responsibilities	20
Independent auditors’ report to the members of St Monica Trust	21
Consolidated statement of financial activities (including and income and expenditure	25
account)
Charity statement of financial activities	26
Consolidated cash flow statement	27
Consolidated and company balance sheets	28
Notes	29

Report of the Board and consolidated financial statements Year ended 31 December 2020

Report of the Trustee for the year ended 31 December 2020

The Council presents its annual report and the audited consolidated financial statements for the year ended 31 December 2020. This report consolidates the results of St Monica Trust and its subsidiaries St Monica Trading Limited and Somerdale Pavilion Trust.

The financial statements comply with the memorandum and articles of association and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015) – Charities SORP (FRS 102), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).

Reference and administrative details of the Charity, its Trustee and Advisers

The Trust was founded by Henry and Monica Wills in 1925. The Trust is constituted by a Charity Commission Scheme sealed on 30 June 2005. The subsidiary St Monica Trading Limited was incorporated on 17 November 2017 and the subsidiary Somerdale Pavilion Trust was incorporated on 17 December 2018.

Registered Address of the Trust St Monica Trust Cote Lane Bristol BS9 3UN Charity Registration Number 202151

Trustee

St Monica Trustee Company Limited (a company limited by guarantee registered number 9357207) is the sole Trustee of St Monica Trust by virtue of the Charity Commission Scheme dated 19 December 2016. The directors of St Monica Trustee Company Limited, the Corporate Trustee, have ultimate responsibility for the administration of the charity and are regarded for internal governance purposes as being a trustee. The Directors are referred collectively in this report as the Council of St Monica Trust, the members of which served throughout the year and since the year-end and are set out below:

The Council

Mr T S Ross was appointed President and Chair of the Trust in June 2020.

Mrs S P Cooper – resigned 29 June 2020 Professor J McGeehan CBE Mr M Bothamley Miss H Morgan Mr C Griffiths – resigned 29 June 2020 Mrs D J England Dr A D Garrad CBE Lady Wills Dr R P H Wilde – resigned 31 December 2020 Mr A T Yates Mrs S Darwall Smith DL Venerable C A Froude Dr F C Forrest – appointed 24 June 2020 Mr J R Ancell – appointed 24 June 2020 Dr M D McCaldin – appointed 24 June 2020 Mr R T Wynn-Jones – resigned 29 June 2020

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Report of the Board and consolidated financial statements Year ended 31 December 2020

Report of the Trustee for the year ended 31 December 2020 (continued)

Members of the Council serve for three years, being eligible for re-election for up to three periods. The Scheme provides for the appointment by the Council of six members of Council, six nominations by the Society of Merchant Venturers of Bristol (SMV) and three members nominated respectively by the Bishops of Bristol, Gloucester and Bath & Wells. Sir David Wills Bt was elected Patron of the Trust upon retiring as a Trustee on 30 June 2006.

Chief Executive

The Trust appointed Mr D Williams as Chief Executive in April 2015. Mr Williams joined the Trust from the Accord Group, where he was Executive Director for Health Care and Support. Previously, Mr Williams worked as Head of Strategy and Service Development for Housing 21 and has also held senior positions with a number of other leading charities.

Management of the Permanent Endowment

The Endowment of St Monica Trust includes the investment fund of the Trust from which an income is derived and utilised for charitable purposes. This investment fund is managed on the Trust’s behalf by the Society of Merchant Venturers of Bristol (“SMV”) in its capacity as Endowment Trustee of the Trust. The Society was incorporated by Royal Charter in 1552 by King Edward VI with amendments by subsequent monarchs in 1566, 1639, 1643, 1665, and 1988.

The Society of Merchant Venturers, as Endowment Trustee of St Monica Trust, implement the investment strategy and asset allocation as recommended by the Endowment Trustees’ Investment Strategy Group having regard to the financial requirements of the Trust. In turn, the Finance and Investment sub-Committee and the Estates and Property sub Committee have particular management and advisory responsibilities for the endowment and report directly to the Investment Strategy Group. The overall investment strategy and objectives are subject to the approval of the Council.

Auditor	KPMG LLP
	66 Queen Square
	Bristol
	BS1 4BE
Bankers	NatWest Bank plc	Lloyds Bank
	32 Corn Street	Canon’s House, Canon’s Way
	Bristol	Bristol
	BS99 7UG	BS99 7LB
Solicitor	Womble Bond Dickinson (UK) LLP
	3 Temple Quay
	Temple Back East
	Bristol
	BS1 6DZ

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Report of the Board and consolidated financial statements Year ended 31 December 2020

Report of the Trustee for the year ended 31 December 2020 (continued)

Investment Adviser Cambridge Associates 80 Victoria Street Cardinal Place London SW1E 5JL Commercial Property Managing Alder King LLP Agent Pembroke House 15 Pembroke Road Bristol BS8 3BA Agricultural Estates and Land Savills Steward 14 Cirencester Office Park Tetbury Road Cirencester GL7 6JJ

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Report of the Board and consolidated financial statements Year ended 31 December 2020

Report of the Trustee for the year ended 31 December 2020 (continued)

2 Structure, Governance and Management of the Group

History

The Trust was founded by Henry and Monica Wills in 1925.

The group is structured as three entities – the parent charity St Monica Trust and its wholly owned subsidiaries St Monica Trading Limited (incorporated on 17 November 2017) and Somerdale Pavilion Trust (incorporated on 17 December 2018). The parent conducts the charitable operations of St Monica Trust. St Monica Trading Limited was established to conduct the commercial operations undertaken at St Monica Trust’s retirement village at Keynsham. The current activities being undertaken by the company include the sale of food in the B Block Café and Somer Dining Restaurant and secondly, the provision of leisure services. These services are available to residents and members of the general public. Somerdale Pavilion Trust was established to conduct the charitable activities of that Trust in providing and maintaining a pavilion, playing fields and other facilities for the use of the inhabitants of Keynsham and the surrounding areas.

Governing instrument and objects

The Trust is constituted by a Charity Commission Scheme sealed on 30 June 2005.

An amendment to the Trust’s governing document was granted by the Charity Commission on 26 February 2010. The objects of the Trust, defined in clause 4 of the Scheme, which should be referred to for exact details, are from this date:

“The objects of the charity are, for the public benefit, the relief of those individuals (and if appropriate their spouses) who are in need by reason of age, disability or ill-health by the provision of:

(a) accommodation and associated facilities; and/or

(b) other services or assistance”.

Organisational structure

In 2020 the Council has delegated the day-to-day running of the Trust to six principal committees, the Finance and Development Committee, the Care Committee, the Operations Committee, the Community Fund Committee, the Audit Committee and the Trustee Nominations Committee. From 1 January 2021, following an executive restructure, the committee structure has been amended to ensure that the committee structure follows the revised operational structure of the Trust. Membership of the existing committees at the year-end was as follows:

The Finance and Development Committee

The Committee is responsible for overseeing the financial management and performance of the Trust including the establishing of annual budgets and liaising with the Endowment Trustee in relation to financial planning. It is also responsible for overseeing new developments and monitoring of the building work involved in ongoing projects.

Mr A T Yates – Chair Professor J McGeehan CBE Dr A D Garrad CBE

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Report of the Board and consolidated financial statements Year ended 31 December 2020

Report of the Trustee for the year ended 31 December 2020 (continued)

The Care Committee

The Committee is responsible for overseeing the welfare and care of residents; and for carrying out monthly regulation inspections of the care homes, the care and support services and the sheltered housing facilities.

Mr T S Ross – President, Ex Officio

Dr F Forrest– Chair Mrs S Darwall Smith DL Lady Wills Dr M McCaldin Venerable C Froude Miss H Morgan

Operations Committee

The Committee is responsible for overseeing all day-to-day operational activities including the effective management of the Trust’s villages and Trust resources. Areas of responsibility include review and oversight of the provision of high quality effective and efficient services to residents and the recruitment, retention and training of staff.

Mr T S Ross – President, Ex Officio, and Chair Mr M Bothamley Mrs D J England Mr A T Yates Professor J McGeehan CBE

The Community Committee

The Committee is responsible for overseeing the provision of financial assistance, grants and gifts to individuals and organisations in the community in order to assist those with a physical disability or long-term health problem.

Mr T S Ross – President, Ex Officio Mrs S Darwall Smith DL – Chair Lady Wills Mr M Bothamley Mrs C Duckworth DL (co-opted) Venerable C A Froude

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Report of the Board and consolidated financial statements Year ended 31 December 2020

Report of the Trustee for the year ended 31 December 2020 (continued)

The Audit Committee

The Committee is responsible for ensuring there is a framework for accountability, for examining and reviewing relevant systems and methods of control, both financial and otherwise including risk analysis and risk management; and for ensuring the Trust is complying with all relevant aspects of the law, regulations and good practice.

Mr T S Ross – President, Ex Officio Mr M Bothamley Mr A T Yates

The Trustee Nominations Committee

The Committee is responsible for nomination to Council of new Trustees.

Mr T S Ross – President, Ex Officio Mr M Bothamley (Chair) Mrs S Darwall Smith DL Mrs D J England Dr A D Garrad CBE Venerable C A Froude

The Remuneration Committee

The Committee is responsible for oversight of reward strategy, executive pay and supporting the appraisal of the Chief Executive’s performance.

Mr T S Ross – President, Ex Officio Mrs D J England (Chair) Mr A T Yates

Trustee induction and training

The Corporate Trustee is appointed in accordance with the provisions of the Scheme of St Monica Trust. The Directors of the Company are regarded for the internal governance purposes as being a Trustee of the Charity. On appointment each Trustee signs a Code of Conduct and attends induction meetings with other Trustees and Executives. Trustees are given a Trustee Handbook, which includes the Trustee Code of Conduct, the Charity Commission Scheme, a copy of the Risk Register and procedures on issues such as delegation of authority, recruitment, equal opportunities, investment, reserves and conflict of interest and other guidance. This information contains role descriptions of Trustees and senior executives and a copy of the Charity Commission leaflet CC3. New Trustees meet with the President and Chief Executive and are invited to an induction tour of each of the Trust’s locations. According to their skills and aptitude, they take responsibility for at least one area of activity by appointment to a sub-committee of the Council. Training needs are assessed and met.

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Report of the Board and consolidated financial statements Year ended 31 December 2020

Report of the Trustee for the year ended 31 December 2020 (continued)

Senior Staff Pay policy

The Trust recognises the importance of transparency and accountability in all aspects of our work and we are committed to open information. This includes transparency about our Executive Team’s salaries and how they are set.

The Trustee considers the Council and sub-committees and the Chief Executive as comprising the key management personnel of the Charity in charge of directing and controlling the Charity and running and operating the Charity on a day to day basis. All Trustees give their time freely and no Trustee remuneration was paid in the year. Details of Trustee expenses and related party transactions are disclosed in note 27 to the accounts.

Trustees are required to disclose all relevant interests and register them with the Chief Executive and, in accordance with the Trust’s policy, withdraw from decisions where a conflict of interest arises.

The pay of the Charity’s Chief Executive is reviewed annually and normally increased in accordance with average earnings. The remuneration is bench-marked with charities of a similar size and activity to ensure that the remuneration set is fair and not out of line with that generally paid for similar roles.

Risk assessment

In the light of the Corporate Governance guidance contained within the Statement of Recommended Practice “Accounting and Reporting by Charities”, the Council with the assistance of the Society of Merchant Venturers of Bristol have examined the major risks faced by the Trust and the endowment. They have developed systems to monitor and control these risks to mitigate the impact that they may have on the Trust in the future. Each Committee of the Council reviews aspects of the risks pertinent to that Committee. The Audit Committee is responsible for the overall review and update of the Risk Register at least once a year.

Financial risk management

The following statements summarise the Trust’s policy in managing identified forms of financial risk:

• Price risk – The Trust negotiates contracts and fee rates to finance aspects of the Trust’s activities and incorporates this information into its business plan. Salary costs are communicated to staff during the formal annual review of salaries. Prices of services and materials purchased are subject to contracts with suppliers, based on current market prices.

• Credit risk – credit risk on accounts owed to the Trust by its customers is low, as the majority of debtors are Local Authorities

• Liquidity risk – the Trust has borrowing facilities of £40.9m (2019: £29.2m), £24.9m was drawn down as at 31 December 2020 (2019: £23.2m), of which £24.7 is long-term (2019: £20.9m).

• Interest rate cash flow risk – the Trust is able to place surplus funds in a short-term deposit account with its bankers.

• Investment market risk – the Trust invests in a diversified portfolio of investments and properties in order to spread the risk.

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Report of the Board and consolidated financial statements Year ended 31 December 2020

Report of the Trustee for the year ended 31 December 2020 (continued)

Going concern

The Trust’s activities, together with the factors likely to affect its future development, performance and position are set out in this Report of the Trustee. The balance sheet on page 28 sets out the financial position of the Trust and its cash flows can be seen in the cash flow statement on page 27.

The Trust meets its day-to-day working capital requirements through a combination of cash generated by the sale of leasehold properties, investment income from the permanent endowment and Revolving Credit Facilities. The latter also funds any capital development expenditure.

The Trustees have reviewed financial forecasts for a period of 12 months and beyond from the date of signature of these financial statements. Key uncertainties are:

• The performance of the leasehold sales cycle;

• Occupancy within the Trust’s care homes and retirement living properties, particularly if impacted adversely by a recurrence of the Covid-19 pandemic; and

• The expiry of the Trust’s existing debt facilities in June 2022.

Applying ‘stress scenarios’ in respect of the above uncertainties confirms that the Trust can continue to operate within its existing debt facilities, assuming that they are renewed at expiry. Terms have already been received from several banks seeking to support the Trust’s refinancing of the current facilities, providing further comfort regarding the Trust’s credit status.

A key feature in the Trust’s plans over the coming financial year and beyond is the development of Block D at the Chocolate Quarter. Should the Trust’s existing debt facilities for any reason not be renewed, the Trust’s forecasts demonstrate that it can continue to operate sustainably within existing cash reserves and liquid investments by delaying this development expenditure to reduce cash demands.

Based on the above, the Trustees have a reasonable expectation that the Trust has adequate resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the financial statements.

Covid-19 pandemic

In March 2020, in response to Covid-19 and consistent with the provisions of the Trust’s Business Interruption Policy, a Response Team was established to ensure that resources were focussed on the necessary Resident and Staff welfare measures to enable safe and sustainable service delivery. Measures taken to support Residents and staff include the recruitment, training and deployment of more than 150 new people to help services affected by staff shielding and self-isolation, and the purchase of unprecedented levels of Personal Protection Equipment, including face masks and clothing .

The consequence of the pandemic for the Trust, in financial terms, has been substantial but not a threat to sustainable service provision. The financial impact suffered by both care homes and independent living schemes relates to the scale of additional costs and to disruption to the property market.

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Report of the Board and consolidated financial statements Year ended 31 December 2020

Report of the Trustee for the year ended 31 December 2020 (continued)

For the duration of the pandemic, the Trust’s Council has agreed that revised interim governance arrangements will operate, with meetings conducted using tele-conferencing facilities.

Related parties and connected charities

Details of related parties and connected charities and transactions with them are disclosed in note 27 to the financial statements.

Reserves

The accounting policies on pages 29 to 35 describe the various funds of the Trust. Note 21 to the Financial Statements shows the assets and liabilities attributable to the various funds by type and summarises the year’s movement on each fund.

The Trustee policy is to build up unrestricted reserves equivalent to approximately 12 months’ projected operating costs of the Residential Care and Support and the Grants and Gifts objects. This will be achieved through retained surpluses on the Unrestricted Fund and will incorporate the value of the Designated Fund. At 31 December 2020 the value of unrestricted reserves was £38.8m (2019: £21.7m).

Grant-making policy – Residents’ subsidies and support in the community

Applications for subsidies against full fees for residents and grants to support the community are monitored by the Council.

3. Objectives, Activities, Achievements and Performance

(A) Overview

The impact of the coronavirus epidemic which struck the UK in February 2020 has led to a dramatic reassessment of the Trust’s immediate aims. The Trust’s primary objective in 2020 has been formulating its response to Covid-19 and protecting the health and well-being of our residents, colleagues and volunteers from the virus. For the first 9 months of 2020 all of the Trust’s resources have been fully focused on maintaining its frontline services, protecting residents and staff and ensuring that the organisation had the financial capacity to cover the many business implications associated with the pandemic and the government restrictions to operation.

Within the last quarter of 2020, the trust restructured its Executive team to better reflect the requirements of the Trust in formulating and delivering a financial recovery plan in 2021 , from the effects of Covid on it’s services and to address underlying operational performance issues that predated the pandemic. The key changes within the Executive restructure were:

• the creation of two distinct business directorates, Nursing Homes and

• Property/Residential Development.

• The creation of a Charitable Impact Directorate with responsibility for the allocation of

• all endowment income both within operational services and to the wider community.

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Report of the Board and consolidated financial statements Year ended 31 December 2020

Report of the Trustee for the year ended 31 December 2020 (continued)

• The appointment of a Finance and Transformation Director with responsibility for business

• and digital transformation of the organisation.

• The creation of a Group Services Directorate encompassing all organisation wide internal

• service deliver including Human Resources and Marketing/Communication.

It is anticipated that the Trust’s recovery programme will run for three years, taking the Trust up to the end of the 2023 financial year.

(B) The focus of our work

In 2020 the Trust’s focus was the protection of both its residents and staff during the pandemic. During this period the Trust ceased all work not related to direct service provision or its Covid response both within the organisation, regionally and nationally.

The Trust key actions:

• Establishment of a 24-hour Pandemic Response Team

• Roll out of organisation wide infection control training.

• The creation of reliable PPE supply chains.

• Creation of multiple communication pathways and platforms for residents, staff and relatives.

• Closure of all sites to public access.

• The recruitment of 150 helping hands workers.

• Introduction of lateral flow testing.

During 2020 the Trusts average death rate amongst residents was less than the previous 5year average, which is testimony to hard work and dedication of the Trust’s workforce.

(C) The strategies we use to deliver our objectives

The objectives of St Monica Trust focus the work of the Charity on older people and adults with a physical disability or long-term illness. The mission statement of the Charity ‘Working together to support and celebrate the lives of older people’ the strategies we use to meet such objectives include:

• Providing retirement housing/sheltered housing accommodation all of which is disability-friendly and capable of supporting individuals in wheelchairs.

• ‘Extra Care’ Housing in partnership with Bristol City Council and North Somerset Council. This concept is a fresh approach to the provision of accommodation and support for older people. Service users enjoy the comfort of living within their own home as an alternative to

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Report of the Board and consolidated financial statements Year ended 31 December 2020

Report of the Trustee for the year ended 31 December 2020 (continued)

entry into a care home and are thus afforded greater choice and independence and the stimulation of a lively environment in which to live.

• Care and Support – many people prefer to ‘stay put’ as their care needs increase. A programme of Care and Support can be provided that enables individuals to maintain their independence within their own home. A 24-hour Care and Support service is available within the Trust’s own retirement housing settings.

• High quality nursing and residential care are key elements of the support provided by the Trust. In addition to long-term care, short-term places are available to give a carer a muchneeded break, or for those recovering following an operation or period of hospitalisation, and as a ‘safe haven’ for those older people facing an emergency or breakdown in their normal

• care arrangements. Many elements of our short-term care are operated in partnership with the NHS and local authorities.

In recent years, caring for people living with Alzheimer’s disease and other forms of dementia has become a central feature of the services offered by the Trust. This highly specialist care is provided in safe and positive environments where activities and therapies are a regular part of daily life.

• Care at Home – 2020 was the eighth full year of operation of the Trust’s Homecare Service. During this year and with the decrease in European workers coming to the UK following Brexit, the Trust has continuously struggled to recruit the necessary skilled staff to enable it to deliver the amount of care hours required to breakeven, the service has continued to be reliant on the receipt of an increasing subsidy from the endowment fund in order to fully cover its costs. Since the end of the 2020 financial year, a decision has been taken by Trustees to close the Care at Home service to customers outside of the Trust’s villages.

• The Community Impact – Our Community Impact Directorate works outside our villages to improve the wellbeing of older people living across the West of England. Whatever we are doing in the community, we work with local organisations and individuals to effect change.

The Trusts’ Community Connections work focuses on developing ongoing relationships with organisations, individuals, stakeholders and decision makers across the region in order to contribute to collectively improving the wellbeing of older people in the area.

Working across Bristol, Bath and North East Somerset, North Somerset and South Gloucestershire, We provide funding and support to organisations working with older people, finding ways to use our resources more effectively.

During the Coronavirus Pandemic, we engaged with local charities to quickly identify ways to improve the situation for isolating older people such as digital exclusion, access to cash, medicines and groceries. We also worked with a collaboration of VCSE organisations to provide a coordinated support hub for older people in the city.

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Report of the Board and consolidated financial statements Year ended 31 December 2020

Report of the Trustee for the year ended 31 December 2020 (continued)

Through our Community Giving work, we provide individuals over 40 with a long-term disability or illness gifts of essential items and/ or short term to offer support through a crisis, which is paid at a level which will not affect benefits or tax credits.

The Trust continues to be a core member of the Bristol Older People’s Funding Alliance, sharing community intelligence and adopting a more strategic approach to grant giving for older people, encouraging collaboration with the aim of maximizing the funding available in the city.

• Recruitment and retention of staff

St Monica Trust aims to recruit and retain a high calibre workforce in order to deliver the high quality of care that we have built our reputation upon.

Recruiting the ‘right’ people that share the Trust’s values is equally as important as recruiting people with the right skills. We offer a competitive pay and benefits package and are continually reviewing ways of improving this. We ensure employees are supported in the workplace using an annual performance management process that cascades organisational objectives and focuses on personal development at regular intervals during a 12-month period. We aspire to be a high-quality employer.

The Trust prides itself on its training and development provision for employees, employing an in-house team of skilled trainers that deliver tailored training both internally to St Monica Trust staff and externally to other care providers; and we are also an accredited assessment centre for health and social care qualifications. All colleagues must complete a comprehensive mandatory training programme upon appointment and undertake regular updates to stay up to date. Tailored training is provided upon request to teams to target specific areas of need.

Delivering well-being for older people is the Trust’s mission statement; this aim also extends to the well-being of colleagues. Promoting the health and well-being of colleagues is not only seen as a positive staff retention initiative but also contributes to the quality of care provided to residents/customers in terms of promoting continuity of care through reduced absenteeism, and improved staff morale.

(D) Public benefit and maximising access to our services

The Trustee of St Monica Trust has referred to the Charity Commission’s general guidance on public benefit when reviewing and planning the work of the Charity. The concern of the Trustees has been to ensure that the Trust, in servicing the needs of older people, has due regard to the particular needs of those individuals within the beneficiary group who live in poverty.

Whilst all persons who receive support from the Community Fund are individuals who can be regarded as in financial need, people who access our other services emanate from a range of socioeconomic backgrounds. The legal and regulatory framework in relation to payment by the state for care remains firmly rooted in a system of means testing. For example, any individuals who have money or assets in excess of £23,250 will find themselves responsible for meeting the cost of living in a care home.

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Report of the Board and consolidated financial statements Year ended 31 December 2020

Report of the Trustee for the year ended 31 December 2020 (continued)

When approximately 75% of the population over 65 years own their own property, quite clearly the welfare state assumes financial responsibility for only a percentage of people who need care.

Thus, along with other voluntary organisations, the Trust engages with people in need of a service, some of whom can afford the fee and others who are unable to meet such costs. The traditions and the philosophy of the Trust, and indeed the guidance of the Charities Act 2011, ensure that the Trust makes provision for individuals who are unable to pay the fees for relevant services and thus are able to benefit and not be excluded from the Trust’s services.

In 2020, the Trust helped 19,245 (2019: 16,440) people, of which 17,807 or 92.5% (2019: 14,857 or 90.4%) were afforded financial support by the Trust.

Of the total above, the Trust helped 1,835 individuals in 2019 (2019: 1,865) in its residential care services (care homes and retirement villages), of which 34% or 617 (2019: 31%, 569 people), were afforded financial support by the Trust. The Trust’s Care at Home service also assisted 220 individuals in their own home (2019: 287).

The Trust also helped 509 individuals (2019: 408) in financial need through its Individual Giving scheme plus a further 230 people (2019: 500) directly through the activities of its Community Impact Team. In addition, a further16,451 (2019: 13,380) people benefitted indirectly from the Trust’s financial support for local, community-based organisations.

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Report of the Board and consolidated financial statements Year ended 31 December 2020

Report of the Trustee for the year ended 31 December 2020 (continued)

• Positive work of the Community Impact Team

• The St Monica Trust Community Impact Team aims to ease the financial pressure and improve the daily lives of older people or those who have a physical or sensory impairment, or a longterm physical health problem need financial help. This is because they are more likely to be on a low income and face additional costs, such as high heating bills or special diets. The St Monica Trust Community Impact Team aims to ease the financial pressure and improve the daily lives of older people, individuals and families by helping them to buy the essential things they need or supporting them through a crisis.

In 2020, the team operated in the following manner:

Requests received	927 gift andgrantrequestsreceived(2019: 789)
Gifts awarded	329 gifts awardedworth£142,450 (2019: £161,085)
Short-term grants	192 new short-term grants awarded 37 people receiving a short-term grant at the year end Value ofshort-termgrants: £89,830 (2019: £57,630)
Organisations	Grants were awarded to 70 organisations worth £513,781 (2019: 35 organisations; £296,350) including the CAB Residents Advice Service and Active Ageing Bristol. In September 2020, Age UK Bristol took over the hosting of the Active Ageing Bristol project, with continued support from St Monica Trust and the Anchor Society. The project aims to improve the number of people from the local area and over the age of 55 to become in regular physical activity, coaching and volunteering. 2020 saw the fifth year of our successful collaboration with Quartet Community Foundation, providing grants to Organisations working with older people in North Somerset. Since it’s launch in 2016, £173,000 has been granted to 23 Organisations. In 2020 the Bristol Older Peoples Funding Alliance worked in partnership with local services, providing £100,000 of funding to improve the lives of older people during the pandemic.
People helped	At least 509 individuals were helped directly and many more were helped through the work of organisations funded. This included 16,451 individuals supportedby SMT funding.
Total net giving	£746,061 (2019: £629,262)
Community Impact Team	£253,670 (2019: £250,921)
TOTAL COMMUNITY IMPACT COST	£999,731 (2019: £880,183)

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Report of the Board and consolidated financial statements Year ended 31 December 2020

Report of the Trustee for the year ended 31 December 2020 (continued)

In 2020, the Community Impact Team were founding partners of the Bristol Support Hub for Older People, formed to help older people in Bristol and their families to cope with the impact of coronavirus [COVID-19]. It now consists of 37 organisations who are working together to support older people by offering practical, emotional and social support.

2020 also saw the culmination of all external projects:

• The Stockwood Communities in Transition project (September 2020), which leaves a legacy of several community led initiatives plus development of the STAR bereavement support model, which is being rolled out across the city and being used as a best practice example nationally.

• Befriending Scheme in Bedminster/Southville and Stockwood, Sandford and surrounding villages (March 2020). Over the life of this project over 300 older people received social visits and friendship from volunteers, many of these relationships are continuing.

• The ACE Neighbours programme (September 2020).

The objectives and achievements of the Endowment Trustee were as follows:

The objectives for the year:

• Agricultural property investments: To attain an average annual real (inflation adjusted) total return of at least 3% over the long term (measured over rolling 10 year periods).

• Financial investments: To attain an average annual real (inflation adjusted) total return of at least 3% over the long term (measured over rolling 10 year periods) and to outperform a composite benchmark measured over 3 year rolling periods.

The composite benchmark for allocation of financial investments is as follows:

%	Benchmark
17%	FTSE350 High Yield Index
15%	Barclays Global Aggregate Bond Index (Hedged)
40%	MSCIWorld Index
15%	HFRI Fundof FundsDiversified Index
8%	MSCI EmergingMarketsIndex
5%	FTSE Hi-YieldCash-Pay Capped Index

• Income: To provide the Trust with £6.5 million net unrestricted income for 2020.

Achievements for the year have been as follows:

Summary: The market value of St Monica Trust’s investments managed by the Endowment Trustee increased from £286 million at 31 December 2019 to £293 million at 31 December 2020 (this includes the Commercial Property at Block C which has been treated as an investment property in both years).

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Report of the Board and consolidated financial statements Year ended 31 December 2020

Report of the Trustee for the year ended 31 December 2020 (continued)

2020 saw volatility for stock markets. The Coronavirus pandemic led to a fall in dividend income and valuations and then a rebound in valuations following vaccine approvals and successful inoculation roll out. Global policy measures provided a supportive backdrop for risk assets. During the year the Bank of England’s Monetary Policy Committee cut the base rate from 0.75% to 0.25% and then to 0.1%

Asset Allocation: The broad asset allocation at 31 December 2020 was: Agricultural property – 56% Commercial property – 3% Financial investments – 39% Cash on deposit – 2%

This accords with the broad target asset allocation of 60% property and 40% financial investments.

Agricultural Property Investments:

For the 10 years to 31 December 2020 the portfolio achieved its objective of attaining an average annual real (inflation adjusted) total return of at least 3%. Actual average annual performance was 8.0% per annum for the 10 years against the inflation + 3% benchmark of 4.8%.

Financial Investments:

A detailed financial investment strategy has been produced to provide the required income for the Trust’s operations, both short and long term, and to ensure future capital growth. By using the advisory management of Cambridge Associates, the Endowment Trustee has been able to interview and select the best managers from a wide section of the investment market and so diversify the risk.

The composition of the portfolio was fairly stable in 2020 with the following transactions taking place:

• A switch from Stewart Global Emerging Leaders Fund into the Stewart Global Emerging Market Sustainability Fund (£3.2m).

• A full redemption from Fir Tree and reinvestment of the proceeds into the ROW Diversified Fund.

• A full redemption from Davide Leone in December 2020, with the proceeds being reinvested in 2021 (following redemption receipt).

For the 10 years to 31 December 2020 the portfolio achieved its objective of attaining an average annual real (inflation adjusted) total return of at least 3%. Actual average annual performance was 6.7% per annum for the 10 years against the inflation +3% benchmark of 4.8%.

For the 3 years to 31 December 2020 the portfolio returned 2.78% (2019: 4.8%) against the benchmark of 2.1% (2019: 6.9%).

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Report of the Board and consolidated financial statements Year ended 31 December 2020

Report of the Trustee for the year ended 31 December 2020 (continued)

Income:

The Endowment Investments provided the Trust with £6.02m (2019: £6.84m) of net unrestricted funds in 2020 against a target of £6.5m, a shortfall of £0.48m. Income is measured on a three-year rolling basis and for the three years to 31 December 2020 the Endowment Investments provided the Trust with £19.4m against the target of £19.0m, an excess of £0.4m.

In addition to the endowment income provided, the Trustees asked the Endowment Trustee to manage Block C, a commercial building at the Chocolate Quarter during the year. A surrender premium was negotiated in respect of one floor occupied by a tenant, and this has resulted in additional income of £1.95m being recognised in 2020 in respect of this.

17

Report of the Board and consolidated financial statements Year ended 31 December 2020

Report of the Trustee for the year ended 31 December 2020 (continued)

4. Financial review

The Trust’s financial position at the end of 2020 was strong, with unrestricted reserves of £38.8 million (2019: £21.7 million) and net assets of £305.6 million (2019: £304.3 million). The increase in unrestricted funds is the result of the transfer of £20 million from the permanent endowment following the approval by the Charity Commission of a resolution made by the Trustees under section 282 of the Charities Act. This resolution was made in direct response to the risks posed by the Covid-19 pandemic and the resulting transfer provides additional resource to the charity to effectively mitigate those risks.

The Trust is reliant on the unrestricted income from the Permanent Endowment, which in 2020 was £6.0 million (2019: £6.8 million) compared with the target for the year of £6.5 million (2019: £6.5 million).

Subsidiary company results

These statements include the second year of trading activity for St Monica Trading Limited. The principal activity of the company is to undertake the commercial operations at the Trust’s retirement village at Keynsham. The current activities include catering and leisure facilities offered to residents and members of the general public. The trading result for the year was a profit of £15k which will be used to support the Trust’s charitable objectives.

These statements include the first full year of trading activity for Somerdale Pavilion Trust. The principal activity of the charitable company is to provide and maintain a pavilion, playing fields and other facilities for the use of the inhabitants of Keynsham and the surrounding areas. The trading result for the year was a profit of £61k.

5. Plans for future periods

The Trust will deliver the following objectives in 2021:

Emerging from the financial challenges of the Covid-19 pandemic, the immediate priority for the Trust is to regain financial balance. The Aims of Recovery Plan will be:

• To return the organisation to overall breakeven (total income vs total costs) by the end of 2023; and

• To rebalance the application of endowment income subsidy away from internal operations and towards greater external charitable giving (recognising the need and desire to retain some subsidy in internal services commensurate with the Trust’s objectives and reputation). Within a five-year period 50% of the Trust’s endowment income should be spent (or available to spend) externally.

Critical to successfully delivering the plan will be investment in improved financial reporting and systems. As part of the Trusts digital transformation programme the Trust will commission and implement a digital financial system during 2021.

18

Report of the Board and consolidated financial statements Year ended 31 December 2020

Report of the Trustee for the year ended 31 December 2020 (continued)

In addition to the recovery plan the Trust will develop an:

• Endowment income strategy: Defining how the Endowment Income received by the trust is distributed both within its operational services and externally to achieve maximum charitable benefit.

Infrastructure Reset Programme : the Infrastructure Reset Programme will gather data to scope and evidence the scale of upgrading required in the Trust’s digital infrastructure and physical estate to bring it up to a foundation standard over the Recovery Plan period

Disclosure of information to auditors

The Trustees who held office at the date of approval of this Report of the Trustee confirm that, so far as they are each aware, there is no relevant audit information of which the Charity’s auditors are unaware; and each Trustee has taken all the steps that he/ she ought to have taken as a Trustee to make himself/ herself aware of any relevant audit information and to establish that the Charity’s auditors are aware of that information.

Auditors

St Monica Trust, Board of Trustees re-appointed auditors KPMG LLP at its Board meeting held on 23 June 2021.

By order of the Board

Mr Timothy Ross President of the Council

19

Report of the Board and consolidated financial statements Year ended 31 December 2020

Statement of Trustees’ responsibilities in respect of the Trustees’ annual report and the financial statements

Under charity law, the trustees are responsible for preparing a Trustees’ Annual Report and the group and the charity financial statements in accordance with applicable law and regulations.

The trustees are required to prepare both the group and the charity financial statements in accordance with UK Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland.

The group and charity’s financial statements are required by law to give a true and fair view of the state of affairs of the group and the charity and of the group’s and the charity’s incoming resources and application of resources for that period.

In preparing these financial statements, generally accepted accounting practice entails that the trustees:

• select suitable accounting policies and then apply them consistently;

• make judgements and estimates that are reasonable and prudent;

• state whether applicable UK Accounting Standards and the Statement of Recommended Practice have been followed, subject to any material departures disclosed and explained in the group and the charity financial statements;

• state whether the group and the charity financial statements comply with the trust deed,

• subject to any material departures disclosed and explained in the financial statements;

• assess the group and the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern; and

• use the going concern basis of accounting unless they either intend to liquidate the group or the charity or to cease operations or have no realistic alternative but to do so.

The trustees are required to act in accordance with the trust deed and the rules of the charity, within the framework of trust law. They are responsible for keeping accounting records which are sufficient to show and explain the charity’s transactions and disclose at any time, with reasonable accuracy, the financial position of the charity at that time, and to enable the trustees to ensure that, where any statements of accounts are prepared by them under section 132(1) of the Charities Act 2011, those statements of accounts comply with the requirements of regulations under that provision. They are responsible for such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error, and have general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the group and to prevent and detect fraud and other irregularities.

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

20

Independent auditors’ report to the Trustee of St Monica Trust

Opinion

We have audited the group and charity financial statements of St Monica Trust (“the charity”) for the year ended 31 December 2020 which comprise the consolidated statement of financial activities, charity statement of financial activities, consolidated cash flow, consolidated and company balance sheets and related notes, including the accounting policies in note 1.

In our opinion the financial statements:

• give a true and fair view of the state of the group’s and of the charity’s affairs as at 31 December 2020 and of the group’s and charity’s incoming resources and application of resources for the year then ended;

• have been properly prepared in accordance with UK accounting standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland ; and

• have been properly prepared in accordance with the requirements of the Charities Act 2011.

Basis for opinion

We have been appointed as auditor under section 144 of the Charities Act 2011 (or its predecessors) and report in accordance with regulations made under section 154 of that Act.

We conducted our audit in accordance with International Standards on Auditing (UK) (“ISAs (UK)”) and applicable law. Our responsibilities are described below. We have fulfilled our ethical responsibilities under, and are independent of the group in accordance with, UK ethical requirements including the FRC Ethical Standard. We believe that the audit evidence we have obtained is a sufficient and appropriate basis for our opinion.

Going concern

The trustees have prepared the financial statements on the going concern basis as they do not intend to liquidate the group or the charity or to cease their operations, and as they have concluded that the group and charity’s financial position means that this is realistic. They have also concluded that there are no material uncertainties that could have cast significant doubt over their ability to continue as a going concern for at least a year from the date of approval of the financial statements (“the going concern period”).

In our evaluation of the trustees’ conclusions, we considered the inherent risks to the group’s business model and analysed how those risks might affect the group and charity’s financial resources or ability to continue operations over the going concern period.

Our conclusions based on this work:

• we consider that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate;

• we have not identified and concur with the trustees’ assessment that there is not, a material uncertainty related to events or conditions that, individually or collectively, may cast significant doubt on the group or the charity's ability to continue as a going concern for the going concern period.

21

Independent auditors’ report to the Trustee of St Monica Trust

However, as we cannot predict all future events or conditions and as subsequent events may result in outcomes that are inconsistent with judgements that were reasonable at the time they were made, the above conclusions are not a guarantee that the group or the charity will continue in operation.

Fraud and breaches of laws and regulations – ability to detect

Identifying and responding to risks of material misstatement due to fraud

To identify risks of material misstatement due to fraud (“fraud risks”) we assessed events or conditions that could indicate an incentive or pressure to commit fraud or provide an opportunity to commit fraud. Our risk assessment procedures included:

• Enquiring of directors, the audit committee, as to the Group’s high-level policies and procedures to prevent and detect fraud, as well as whether they have knowledge of any actual, suspected or alleged fraud.

• Reading Board minutes.

• Considering remuneration incentive schemes and performance targets

We communicated identified fraud risks throughout the audit team and remained alert to any indications of fraud throughout the audit.

As required by auditing standards, we perform procedures to address the risk of management override of controls and the risk of fraudulent revenue recognition, and the risk that Group management may be in a position to make inappropriate accounting entries, and the risk of bias in accounting estimates and judgements such as the calculation of investment property and pension assumptions

We did not identify any additional fraud risks.

Identifying and responding to risks of material misstatement due to non-compliance with laws and regulations

We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial and sector experience and discussed with the directors the policies and procedures regarding compliance with laws and regulations.

We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit.

The potential effect of these laws and regulations on the financial statements varies considerably.

Firstly, the Group is subject to laws and regulations that directly affect the financial statements including financial reporting legislation (including related companies’ legislation), distributable profits legislation and taxation legislation, and we assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.

Secondly, the Group is subject to many other laws and regulations where the consequences of noncompliance could have a material effect on amounts or disclosures in the financial statements, for instance through the imposition of fines or litigation. We identified the following areas as those most likely to have such an effect: health and safety, and employment law, recognising the nature of the Group’s activities. Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the directors and inspection of regulatory and legal

22

Independent auditors’ report to the Trustee of St Monica Trust

correspondence, if any. Therefore, if a breach of operational regulations is not disclosed to us or evident from relevant correspondence, an audit will not detect that breach.

Context of the ability of the audit to detect fraud or breaches of law or regulation

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it.

In addition, as with any audit, there remained a higher risk of non-detection of fraud, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. Our audit procedures are designed to detect material misstatement. We are not responsible for preventing non-compliance or fraud and cannot be expected to detect non-compliance with all laws and regulations.

Other information

The trustees are responsible for the other information, which comprises Report of the Trustee. Our opinion on the financial statements does not cover the other information and, accordingly, we do not express an audit opinion or, except as explicitly stated below, any form of assurance conclusion thereon.

Our responsibility is to read the other information and, in doing so, consider whether, based on our financial statements audit work, the information therein is materially misstated or inconsistent with the financial statements or our audit knowledge. We are required to report to you if:

• based solely on that work, we have identified material misstatements in the other information; or

• in our opinion, the information given in the Report of the Trustee is inconsistent in any material respect with the financial statements.

We have nothing to report in these respects.

Matters on which we are required to report by exception

Under the Charities Act 2011 we are required to report to you if, in our opinion:

• the charity has not kept sufficient accounting records; or

• the financial statements are not in agreement with the accounting records; or

• we have not received all the information and explanations we require for our audit.

We have nothing to report in these respects.

23

Independent auditors’ report to the Trustee of St Monica Trust

Trustees’ responsibilities

As explained more fully in their statement set out on page 20, the trustees are responsible for: the preparation of financial statements which give a true and fair view; such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error; assessing the group and the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern; and using the going concern basis of accounting unless they either intend to liquidate the group or the charity or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue our opinion in an auditor’s report. Reasonable assurance is a high level of assurance, but does not guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial statements.

A fuller description of our responsibilities is provided on the FRC’s website at www.frc.org.uk/auditorsresponsibilities.

The purpose of our audit work and to whom we owe our responsibilities

This report is made solely to the charity’s trustees as a body, in accordance with section 144 of the Charities Act 2011 (or its predecessors) and regulations made under section 154 of that Act. Our audit work has been undertaken so that we might state to the charity’s trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and its trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Jonathan Brown for and on behalf of KPMG LLP, Statutory Auditor

Chartered Accountants 66 Queen Square Bristol BS1 4BE

Date: 2 August 2021

KPMG LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006

24

Report of the Board and consolidated financial statements Year ended 31 December 2020

Consolidated statement of financial activities (including an income & expenditure account) for the year ended 31 December 2020

Note Income Income from charitable activities Residential care and support Accommodation income Generated funds Investment income 4 Total income Expenditure Costs of raising funds Investment management charges 6a Property operational costs 6b Commercial trading operations 6c Total costs of generating funds 6 Charitable activities Costs in furtherance of the Trust’s objects Residential care and support 7 Accommodation costs Community support Governance 8 Total charitable expenditure Total expenditure Net income/(expenditure) before investment gains/ (losses) Realised and unrealised gains on investments 14 Net income/(expenditure) for the year before transfers Transfers between funds 9 Actuarial gain/(loss) on defined benefit pension 28 Net movement in funds Total funds brought forward Total funds carried forward 21	Unrestricted Funds Designated fund Other restricted funds Expendable endowment funds Permanent endowment funds Total Funds 2020 £’000 £’000 £’000 £’000 £’000 £’000 31,886 - - - - 31,886 1,365 640 - - - 2,005 10,211 - 5 - - 10,216	Total Funds 2019 £’000 30,693 1,715 9,096
	43,462 640 5 - - 44,107	41,504
	(44) - - - (842) (886) (1,078) - - - - (1,078) (45) - - - (414) (459)	(737) (1,417) (214)
	(1,167) - - - (1,256) (2,423) (43,106) - (5) - (66) (43,177) (860) - - - - (860) (1,000) - - - - (1,000) (80) - - - - (80)	(2,368) (39,439) (654) (766) (55)
	(45,046) - (5) - (66) (45,117)	(40,914)
	(46,213) - (5) - **(1,322) (47,540) **	(43,282) (1,778) 17,438
	(2,751) 640 - - (1,322) (3,433) (825) - 11 - 5,795 4,981
	(3,576) 640 11 - 4,473 1,548 (344) 290 - 20,000 (19,946) - - - - - (241) (241)	15,660 - (740)
	(3,920) 930 11 20,000 (15,714) 1,307 16,698 5,031 356 - 282,191 304,276	14,920 289,356
	12,778 5,961 367 20,000 **266,477 305,583 **	304,276

Incoming resources and resulting net movement in funds in each year arise from continuing operations. The group has no recognised gains or losses for the current or previous year other than those shown above.

25

Report of the Board and consolidated financial statements Year ended 31 December 2020

Charity statement of financial activities for the year ended 31 December 2020

Note Income Income from charitable activities Residential care and support Accommodation income Generated funds Investment income 4 Total income Expenditure Costs of raising funds Investment management charges 6a Property operational costs 6b Commercial trading operations 6c Total costs of generating funds 6 Charitable activities Costs in furtherance of the Trust’s objects Residential care and support 7 Accommodation costs Community support Governance 8 Total charitable expenditure Total expenditure Net income/(expenditure) before investment gains/ (losses) Realised and unrealised gains on investments 14 Net income/(expenditure) for the year before transfers Transfers between funds 9 Actuarial gain/(loss) on defined benefit pension 28 Net movement in funds Total funds brought forward Total funds carried forward 21	Unrestricted Funds Designated fund Other restricted funds Expendable endowment funds Permanent endowment funds Total Funds 2020 £’000 £’000 £’000 £’000 £’000 £’000 31,620 - - - - 31,620 1,365 640 - - - 2,005 10,211 - 5 - - 10,216	Total Funds 2019 £’000 30,316 1,715 9,096
	43,196 640 5 - - 43,841	41,127
	(44) - - - (842) (886) (1,078) - - - - (1,078) (45) - - - (414) (459)	(737) (1,417) (214)
	(1,167) - - - (1,256) (2,423) (42,759) - (5) - (66) (42,830) (860) - - - - (860) (1,000) - - - - (1,000) (73) - - - - (73)	(2,368) (39,147) (654) (766) (55)
	(44,692) - (5) - (66) (44,763)	(40,622)
	(45,859) - (5) - **(1,322) (47,186) **	(42,990) (1,863) 17,438
	(2,663) 640 - - (1,322) (3,345) (825) - 11 - 5,795 4,981
	(3,488) 640 11 - 4,473 1,636 (344) 290 - 20,000 (19,946) - - - - - (241) (241)	15,575 - (740)
	(3,832) 930 11 20,000 (15,714) 1,395 16,514 5,031 356 - 282,191 304,092	14,835 289,257
	12,682 5,961 367 20,000 **266,477 305,487 **	304,276

Incoming resources and resulting net movement in funds in each year arise from continuing operations. The group has no recognised gains or losses for the current or previous year other than those shown above.

26

Report of the Board and consolidated financial statements Year ended 31 December 2020

Consolidated cash flow statement for the year ended 31 December 2020

Note Cash flows from operating activities Net (expenditure)/income Interest receivable Depreciation of tangible assets Profit on disposal of accommodation Losses/(gains) on investment assets Actuarial gains on pension scheme less contributions paid Change in trade and other debtors Change in stocks Change in trade and other creditors Net cash (used in)/from operating activities Cash flows from investing activities Interest received Dividend income received Purchase of tangible fixed assets Proceeds from sale of tangible fixed assets Purchase of investments Decrease in fixed asset investment cash deposits Proceeds from sale of investments Net cash from/(used in) investing activities Cash flows from financing activities Repayment of bank loans Loan drawdowns Net cash (used in)/from financing activities 25 Movements in cash and cash equivalents in the reporting year Cash at bank and in hand at beginning of year Cash at bank and in hand at end of year 25	2020 £’000 1,307 (2,286) 2,788 (504) (4,981) 122 6,289 13 856 3,604 19 2,267 (3,488) 1,365 (19,222) (1,994) 19,207 (1,846) 1,634 - 1,634 3,392 6,406 9,798	2019 £’000 14,920 (2,840) 2,576 (511) (17,438) 664 4,648 (14) 13,444
		15,449 19 2,821 (3,970) 1,165 (15,199) (1,237) 11,144
		(5,257) (9,091) -
		(9,091)
		1,101 5,305
		6,406

27

Report of the Board and consolidated financial statements Year ended 31 December 2020

Consolidated and charity balance sheets at 31 December 2020

Note Fixed assets Tangible assets 13 Investments 14 Current assets Stocks 15 Debtors 16 Cash at bank and in hand Creditors: due within one year 17 Net current liabilities Total assets less current liabilities Creditors: due after more than one year 18 Net assets excluding pension liability Pension liability 28 Net assets Permanent endowment fund net of pension liability Other restricted funds 19 Total restricted funds Designated fund 20 Expendable endowment fund Unrestricted fund Total unrestricted funds Total funds	Group 2020 2019 £’000 £’000 149,287 149,448 293,029 286,039 442,316 435,487 43 56 11,061 17,350 9,798 6,406 20,902 23,812 (24,629) (27,380) (3,727) (3,568) 438,589 431,919 (124,125) (118,884) 314,464 313,035 (8,881) (8,759) 305,583 304,276 266,477 282,191 367 356 266,844 282,547 5,961 5,031 20,000 - 12,778 16,698 38,739 21,729 305,583 304,276	Charity 2020 2019 £’000 £’000 149,279 149,445 293,029 286,039 442,308 435,484 43 49 11,060 17,442 9,619 6,142 20,722 23,633 (24,537) (27,382) (3,815) (3,749) 438,493 431,735 (124,125) (118,884) 314,368 312,851 (8,881) (8,759) 305,487 304,092 266,477 282,191 367 356 266,844 282,547 5,961 5,031 20,000 - 12,682 16,514 38,643 21,545 305,487 304,092	Charity 2020 2019 £’000 £’000 149,279 149,445 293,029 286,039 442,308 435,484 43 49 11,060 17,442 9,619 6,142 20,722 23,633 (24,537) (27,382) (3,815) (3,749) 438,493 431,735 (124,125) (118,884) 314,368 312,851 (8,881) (8,759) 305,487 304,092 266,477 282,191 367 356 266,844 282,547 5,961 5,031 20,000 - 12,682 16,514 38,643 21,545 305,487 304,092
			435,484
			49 17,442 6,142
			23,633
			(27,382) (3,749)
			431,735 (118,884)
			312,851 (8,759)
			304,092
			282,191 356
			282,547 5,031 - 16,514
			21,545
			304,092

These financial statements were approved by the Board on 23 July 2021 and were signed on its behalf by:

Mr Timothy Ross President of the Council

28

Report of the Board and consolidated financial statements Year ended 31 December 2020

Notes

(forming part of the financial statements)

Accounting policies

Basis of preparation

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015) – (Charities SORP (FRS 102)) and the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), which have been applied consistently.

St Monica Trust meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note.

Notwithstanding the Trust’s net current liabilities of £3.7m at the end of 2020, the Trustees have prepared the financial statements on a going concern basis which they consider is appropriate for the following reasons.

The Trustees have reviewed cash flow forecasts for a period of 12 months from the date of approval of these financial statements which indicate that, taking account of reasonably possible downsides and the anticipated impact of COVID-19 on the operations and its financial resources, the group and charity will have sufficient funds to meet its liabilities as they fall due for that period.

As noted in the Report of the Trustee, this has included modelling of plausible downside scenarios. In the event that a combination of more extreme stresses occurred affecting the operations of the Trust, £107 million of endowment assets as at the balance sheet date can be liquidated in less than one month. This amount would support the charity’s normal operations for more than two years.

Consequently, the Trustees are confident that the group and charity will have sufficient funds to continue to meet its liabilities as they fall due for at least 12 months from the date of approval of the financial statements and therefore have prepared the financial statements on the going concern basis.

Basis of consolidation

These consolidated financial statements include the financial statements of St Monica Trust ("the charity") and St Monica Trading Limited and Somerdale Pavilion Trust (“the subsidiaries”). These financial statements consolidate the results of the charity and its wholly owned subsidiaries on a lineby-line basis.

The trading results of the subsidiaries are disclosed in notes 2 and 3 to these financial statements.

Critical accounting judgements and key sources of estimation uncertainty

In applying the charity’s accounting policies, the Trustee is required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates.

29

Report of the Board and consolidated financial statements Year ended 31 December 2020

Notes (continued)

(forming part of the financial statements)

The Trustees consider that besides the points listed below there are no other critical judgements or sources of estimation uncertainty requiring disclosure;

Investment properties

The valuation of investment properties is a critical accounting judgement in respect of the application of the Trust's accounting policies. The method by which the Trustees have assessed the fair value of the investment properties at year end is described in detail in note 14. The valuations are based on company data, including current rental rates, occupancy, terms and conditions of leases and upon market related assumptions such as yield and discount rates. An element of ‘hope value’ is also included in the valuation of properties in line with accounting standards.

Leasehold Apartment Sales at The Chocolate Quarter

The established method of accounting for leasehold apartment sales is that receipts are held as a liability until conclusion of the lease as detailed in the Lifetime Lease Accounting Policy Note. At The Chocolate Quarter a lease is offered which provides the leaseholder with a choice between equity participation and fixed return. The accounting treatment of an equity participation lease is that the initial sale results in recognition of income and costs in the Statement of Financial Activities. The Trust has followed the general principle for income recognition in the Charities SORP and FRS 102.

Defined benefit pension scheme

The Trust has an obligation to pay pension benefits to certain employees and past employees. The cost of these benefits and the present value of the obligation depends on a number of factors, including life expectancy, salary increases, and the discount rate on corporate bonds. The principal assumptions made by the Trust can be found in note 28. Management estimates these factors in determining the net pension obligations in the balance sheet. The assumptions reflect historical experience and current trends.

Donations and legacies

Dividends and interest on capital and income fund investments are included as income in the financial statements on an accruals basis.

Voluntary income

This is credited to the appropriate fund in the year in which it is receivable.

Government grants

These are credited to the appropriate fund in the year in which they are receivable.

Residential care and support

Fees from residents and other service-user income is credited to the unrestricted fund on an accruals basis.

30

Report of the Board and consolidated financial statements Year ended 31 December 2020

Notes (continued)

(forming part of the financial statements)

Accommodation Income

The Trust offers leases to tenants at The Chocolate Quarter on a fixed repayment (i.e. the tenant will receive the price they paid on exit) or equity participation basis (i.e. the exit amount is driven by the market). Where the lessee opts for a fixed repayment, the proceeds are recognised as a liability in accordance with the lifetime leases accounting policy described on page 32. However, where the lessee opts for the equity participation arrangement, the Trust is under no obligation to repurchase the apartment until the property has been sold on to a new tenant.

Therefore, the proceeds from the initial sale of a property under an equity participation lease are recognised as income in the statement of comprehensive income, with a corresponding cost of sale recognised in accommodation costs.

Under both the fixed repayment and equity participation arrangements, the Trust becomes entitled to a surrender fee, payable at the end of the lease, which is accrued annually over the life of the lease. This is recognised within accommodation income in the statement of financial activities (SoFA) as it is earned.

Expenditure

All expenditure is included on an accruals basis and is recognised when there is a legal or constructive obligation to pay for expenditure. All costs are allocated or apportioned to one of the functional categories of resources expended in the statement of financial activities.

(a) Costs of generating funds relate to those costs incurred in the management of the fixed asset investments.

(b) Costs in furtherance of the Trust’s objects relate to those costs incurred in running and supporting the objects of the Trust.

Support costs

Support costs are apportioned to categories of expenditure, and only governance costs are separately disclosed.

Grants payable

Grants are awarded from the Community Fund and a detailed analysis and explanation of grants awarded has been provided in the Report of the Trustee.

Irrecoverable VAT

Any irrecoverable VAT is charged to the statement of financial activities or capitalised as part of the cost of the related asset, where appropriate.

31

Report of the Board and consolidated financial statements Year ended 31 December 2020

Notes (continued)

(forming part of the financial statements)

Recognition of liabilities

Liabilities are recognised when an obligation arises to transfer economic benefits as a result of past transactions or events.

Tangible fixed assets

All expenditure on the acquisition, enhancement, production or installation of fixed assets for use by the Trust and all receipts of such assets by way of gift are capitalised and included in the balance sheet at cost. The freehold land and property is included in fixed assets at cost. Assets with a value below £1,000 are not capitalised.

Tangible fixed assets include apartments which may be disposed of within 12 months through an equity participation lease (see accommodation income accounting policy above).

Capitalisation of finance costs

All finance costs in respect of the bank loan obtained for the Keynsham, Westbury-on-Trym, Bedminster and Sandford developments up to the point when these developments commenced normal operations are capitalised within tangible fixed assets and are being amortised over the life of the asset to which they relate.

Depreciation

Depreciation is provided with the intention of writing off the costs of tangible fixed assets (to residual values) over their useful lives. The provision is calculated using the straight-line method at the following rates:

Assets in the course of construction	Nil
Freehold buildings	2%
Special building assets	14%
Furniture and equipment	12.5% to 33.3%
Motor vehicles	25%

Freehold land is not depreciated. The residual values of freehold buildings were revised by management during 2014. The revision resulted in a reduction to the depreciation expense of £1.4m in that year.

Impairment reviews

Impairment reviews are carried out annually which includes consideration of current selling price of properties against the carrying value of each asset.

Lifetime leases

The Trust provides a lifetime leasehold purchase scheme for up to 351 properties across four of its sites in which the lease operates for the duration of the purchaser’s occupation of the property and then reverts to the Trust on their departure. The cash received under this scheme is returned to the lease holder or their estate when the lease is determined. The Trust, therefore, always has a liability

32

Report of the Board and consolidated financial statements Year ended 31 December 2020

Notes (continued)

(forming part of the financial statements)

to repay the full value of the lease proceeds, which is reflected in the balance sheet as amounts due to lifetime leasehold tenants. When a lease is determined, the Trust will sell the lease on to another purchaser under the same lifetime lease arrangement, thus restoring the funding and the liability to repay the value of the lease when, in turn, it is determined.

In addition, the Trust has a further 136 leasehold properties at its site in Keynsham. The lessee has an option at this site to have a fixed repayment lease with the liability recognised as described in the above policy. However, where the lessee opts for an Equity Participation arrangement the accounting policy is as described in the Accommodation Income note on page 31.

Investments

Both current and fixed asset investments are stated at mid-market value at the balance sheet date. This is not in accordance with FRS 102 which recommends bid value but is consistent with the entity’s performance management process. Using bid values would lead to a reduction in the valuation of these listed investments of an amount which is considered by the Trustee to be immaterial.

All recognised gains and losses on investments are shown separately in the statement of financial activities. The investments in the subsidiary undertakings are stated at cost.

Investment properties

Investment properties are included in the balance sheet at their open market value on an existing use basis. The valuation is determined on the basis of professional advice and includes an element of hope value in line with accounting standards. In accordance with FRS 102 investment properties are revalued annually and the aggregate surplus or deficit is included as an unrealised gain or loss within the permanent endowment fund. No depreciation or amortisation is provided in respect of freehold investment properties.

Stocks

Stocks consist of catering supplies and have been valued at the lower of cost and net realisable value.

Leased assets

Rentals in respect of operating leases are charged directly to the statement of financial activities on a straight-line basis over the lease term.

Pension costs

The employees of the Trust are eligible to join a group personal pension plan with Aviva or with the National Employment Savings Trust (NEST). The Trust’s pension contributions for current employees are charged to the statement of financial activities in the year in which the obligation to make contributions arises.

The Trust pays certain discretionary pensions, which are not funded under a closed defined benefit scheme. The pension liability in respect of this obligation is recognised in the balance sheet based on annual actuarial valuations. Actuarial gains or losses are included in the statement of financial activities.

33

Report of the Board and consolidated financial statements Year ended 31 December 2020

Notes (continued)

(forming part of the financial statements)

Further details in respect of unfunded pension liabilities are contained in note 28. The Trustees have confirmed with the Charity Commission that the pension liability may be treated as a deduction from the Permanent Endowment Fund, and, as a result, the Permanent Endowment Fund in the “Funds” section of the balance sheet is shown net of the estimated pension liability.

Basic financial instruments

(a) Trade and other debtors / creditors

Trade and other debtors are recognised initially at transaction price less attributable transaction costs. Trade and other creditors are recognised initially at transaction price plus attributable transaction costs. Subsequent to initial recognition they are measured at amortised cost using the effective interest method, less any impairment losses in the case of trade debtors. If the arrangement constitutes a financing transaction, for example if payment is deferred beyond normal business terms, then it is measured at the present value of future payments discounted at a market rate of instrument for a similar debt instrument.

(b) Interest-bearing borrowings classified as basic financial instruments

Interest-bearing borrowings are recognised initially at the present value of future payments discounted at a market rate of interest. Subsequent to initial recognition, interest-bearing borrowings are stated at amortised cost using the effective interest method, less any impairment losses.

(c) Fixed asset investments

Investments are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date using the closing quoted market price. The statement of financial activities includes the net gains and losses arising on revaluation and disposals throughout the year.

(d) Cash and cash equivalents

Cash and cash equivalents comprise cash balances and call deposits. Bank overdrafts that are repayable on demand and form an integral part of the charity's cash management are included as a component of cash and cash equivalents for the purpose only of the cash flow statement.

Permanent endowment fund

The permanent endowment fund incorporates the original endowment together with surpluses arising from disposals of investments, that element of gravel royalties which represents the depletion of the site and, by orders of the Charity Commission, the recoupment from income by annual contributions, over 25 years or 30 years, of capital expenditure made on real estate improvements and leasehold property.

Expendable endowment fund

On 16 November 2020 the Charity Commission approved a resolution made by the Trustees to redesignate £20 million of the permanent endowment for use by the Trust in furtherance of its objectives and as if it were income. This resolution was made to ensure that, in the light of the

34

Report of the Board and consolidated financial statements Year ended 31 December 2020

Notes (continued)

(forming part of the financial statements)

impacts of the pandemic on the Trust’s income streams and cost base, the Trust had sufficient ongoing resources to continue providing services. The result is that £20 million has been transferred from permanent endowment funds into an unrestricted expendable endowment fund during the financial year. Expenditure from the expendable endowment will be charged against the fund in future years.

Restricted funds

These are other funds for which the donor has specifically restricted the purpose for which they can be used. The amounts in the funds represent the monies remaining for future expenditure. There are two restricted funds which are held by the Trust and explained in more detail below:

(a) Residents’ legacy fund

These are funds donated by residents, which have restricted purposes for which they can be applied.

(b) Community support fund

These are funds donated by beneficiaries of the Trust’s community support services, which have restricted purposes for which they can be applied.

Unrestricted fund

Operating income together with income arising from permanent endowment and unrestricted fund investments is credited to the unrestricted fund. The Charity Commission Scheme permits the fund to be applied towards contributions to the management expenses, the expenses related to running the operational activities, establishing a reserve fund and paying annuities and gifts. Any balance remaining may be accumulated for endowment purposes, but in practice is currently retained as unrestricted funds as explained in the reserves policy in The Report of the Trustee.

Designated fund

A designated fund exists to hold a proportion of the community fee and exit fees for the Equity Participation and Fixed Repayment leasehold options as detailed in the Accommodation Income accounting policy. These funds are set aside for future maintenance costs.

Subsidiaries

Details of subsidiary undertakings owned by the charity are disclosed in notes 2 and 3.

Financial activities of the charity

The financial activities shown in the consolidated statement includes those of the charity’s wholly owned subsidiaries, St Monica Trading Limited and Somerdale Pavilion Trust.

35

Report of the Board and consolidated financial statements Year ended 31 December 2020

Notes (continued)

(forming part of the financial statements)

2 Trading subsidiary’s results (St Monica Trading Limited)

Turnover Cost of sales Gross profit Administration and other costs Trading profit Other income Net income Management charge from St Monica Trust Tax on profit Retained profit for the year Retained profit Retained profit carried forward	2020 2019 Total Total £’000 £’000 324 844 (105) (254)
	219 590 (204) (525)
	15 65 - -
	15 65 - - - -
	15 65
	15 65

Gift aid and distributions totalling £14,890 (2019: £163,576) will be made post year end in relation to the current year

36

Report of the Board and consolidated financial statements Year ended 31 December 2020

Notes (continued)

(forming part of the financial statements)

The assets and liabilities of the subsidiary were:

Fixed assets Current assets Creditors: amounts falling due within one year Provisions for liabilities and charges Net assets Profit and loss reserve Equity shareholders’ funds Statement of changes in equity Balance at 1 January 2019 Period ended 31 December 2019 Profit and total comprehensive income for the period Distributions to parent charity under gift aid Balance at 31 December 2019 Year ended 31 December 2020: Profit and total comprehensive income for the year Distributions to parent charity under gift aid Balance at 31 December 2020	2020 2019 Total Total £’000 £’000 - - 19 168 (4) (4) -
	15 164
	15 164
	15 164
	Share Capital Profit and loss reserves Total £ £ £ 1 98,595 98,596 - 64,981 64,981 - -
	1 163,576 163,577 - 14,890 14,890 - (163,576) (163,576)
	1 14,890 **14,891 **

37

Report of the Board and consolidated financial statements Year ended 31 December 2020

Notes (continued)

(forming part of the financial statements)

3 Trading subsidiary’s results (Somerdale Pavilion Trust)

Somerdale Pavilion Trust (a company limited by guarantee) was incorporated on 17 December 2018. The subsidiary’s comparative figures below and within the 2019 consolidation are for the short period 2 September 2019 – 31 December 2019.

Income Grant income Charitable activities Other trading activities Expenditure Charitable activities Other Net income Net movement in funds Total funds brought forward Total funds carried forward	2020 2019 Total Total £’000 £’000 98 67 290 190 263 96
	651 353 572 310 18 23
	(590) (333)
	61 20 61 20 20 -
	81 20

38

Report of the Board and consolidated financial statements Year ended 31 December 2020

Notes (continued)

(forming part of the financial statements)

The assets and liabilities of the subsidiary were:

Fixed assets Current assets Creditors: amounts falling due within one year Net assets Total restricted funds Total unrestricted funds Total funds 4 Investment income Group and charity (a) Unrestricted fund Commercial investment properties Agricultural investment properties Listed and other investments Interest on cash deposits Other investments (b) Restricted funds Distributions from CCLA Investment Management Limited		2020 2019 Total Total £’000 £’000 8 3 235 289 (162) (272) 81 20 - - 81 20 81 20 2020 2019 £’000 £’000 4,216 2,075 3,714 4,181 2,262 2,725 19 19 - 91
		10,211 9,091
		5 5
		10,216 9,096

39

Report of the Board and consolidated financial statements Year ended 31 December 2020

Notes (continued)

(forming part of the financial statements)

5 Analysis of total resources expended

Group Costs of generating funds (note 6) Charitable expenditure Residential care and support (note 7) Accommodation costs Community support Governance costs (note 8)	Staff costs Depreciation Other costs 2020 2019 £’000 £’000 £’000 £’000 £’000 - - 2,423 2,423 2,368 30,956 2,788 9,433 43,177 39,439 - - 860 860 654 238 - 762 1,000 766 80 80 55
	31,194 2,788 11,135 45,117 40,914
	31,194 2,788 13,558 47,540 43,282

All support costs have been allocated to one charitable activity (Residential care and support).

Charity

Charity
Costs of generating funds (note 6) Charitable expenditure Residential care and support (note 7) Accommodation costs Community support Governance costs (note 8)	Staff costs Depreciation Other costs 2020 2019 £’000 £’000 £’000 £’000 £’000 - - 2,423 2,423 2,368 30,575 2,788 9,467 42,830 39,147 - - 860 860 654 238 - 762 1,000 766 - - 73 73 55
	30,813 2,788 11,162 44,763 40,622
	30,813 2,788 13,585 47,186 42,990

40

Report of the Board and consolidated financial statements Year ended 31 December 2020

Notes (continued)

(forming part of the financial statements)

6 Costs of generating funds

Group and charity

6 Costs of generating funds Group and charity
(a) Investment management charges Society of Merchant Venturers of Bristol – reallocation of salaries, overheads and general advisory Investment manager fees Agricultural estate management Commercial properties management (b) Property operational costs Agricultural estates Commercial properties (c) Major repairs & other costs Agricultural estates Total costs of generating funds 7 Residential care and support Group Staff costs Residential services Site services Provisions and catering Insurance Property and equipment (including depreciation) Miscellaneous Management and administration	2020 2019 £’000 £’000 251 246 239 101 352 349 44 41
	886 737
	379 445 699 971
	1,078 1,416
	459 214
	2,423 2,368
	2020 2019 £’000 £’000 30,956 28,105 909 856 1,284 1,466 1,205 1,380 394 372 6,050 4,967 658 646 1,721 1,648 43,177 39,440

41

Report of the Board and consolidated financial statements Year ended 31 December 2020

Notes (continued)

(forming part of the financial statements)

Charity

Staff costs Residential services Site services Provisions and catering Insurance Property and equipment (including depreciation) Miscellaneous Management and administration 8 Governance costs Group Auditor’s remuneration (including irrecoverable VAT) - for audit - other professional services Trustee expenses Charity Auditor’s remuneration (including irrecoverable VAT) - for audit - other professional services Trustee expenses		2020 2019 £’000 £’000 30,575 27,906 895 855 1,210 1,409 1,188 1,358 394 372 6,003 4,936 884 682 1,681 1,629 42,830 39,147 2020 2019 £’000 £’000 40 40 39 12 1 3
		80 55
		35 36 37 16 1 3
		73 55

Neither the Council, nor persons connected with them, received any remuneration or other benefits from the Trust during the current or previous year. Reimbursement of expenses amounted to £nil during the year (2019: £nil).

42

Report of the Board and consolidated financial statements Year ended 31 December 2020

Notes (continued)

(forming part of the financial statements)

9 Transfers

9 Transfers
Group and charity Service Charge Transfer (A) Section 282 Transfer (B) Total Transfers	Unrestricted fund Designated fund Other restricted funds Expendable Endowment funds Permanent endowment funds £’000 £’000 £’000 £’000 £’000 (344) 290 - - 54 - - - 20,000 (20,000)
	(344) 290 - 20,000 (19,946)

(A) During the year £344,000 (2019: £344,000) has been transferred out of the unrestricted fund which represents service charges received from residents. The transfer is part of an agreement to designate funds for future maintenance costs on the Westbury-on-Trym, Cote Lane and Bedminster sites, £290,000 (2019: £290,000) has been transferred into the designated fund and £54,000 (2019: £54,000) into the permanent endowment fund.

(B) On 16 November 2020 the Charity Commission approved a resolution made by the Trustees to redesignate £20 million of the permanent endowment for use by the Trust in furtherance of its objectives and as if it were income. This resolution was made to ensure that, in the light of the impacts of the pandemic on the Trust’s income streams and cost base, the Trust had sufficient ongoing resources to continue providing services.

10 Staff numbers and costs

The average headcount in the year for the group was 1,596 (2019: 1,569). The full time equivalent average number of persons employed by the group during the year, including directors, analysed by category, was as follows:

Residential care and support Community support Management of the Trust The aggregate payroll costs were as follows: Wages and salaries Social security costs Pensions Agency staff costs	2020 Total £’000 847 3 23 873 2020 Total £’000 26,280 1,822 988 2,104 31,194	2019 Total £’000 836 3 23
		862
		2019 Total £’000 24,098 1,595 992 1,658
		28,343

43

Report of the Board and consolidated financial statements Year ended 31 December 2020

Notes (continued)

(forming part of the financial statements)

During the current and previous year, the Trustees were not paid any remuneration or reimbursed for expenses, and no Trustees made donations to the charity.

Key management remuneration in total for the year was £965,170 (2019: £950,080).

The number of employees whose emoluments, excluding pension contributions, were in excess of £60,000 per annum fell within the following bands:

	2020	2019
	Number	Number
£60,001 to £70,000	4	4
£70,001 to £80,000	2	1
£80,001 to £90,000	2	4
£90,001 to £100,00	2	-
£100,001 to £110,000	-	1
£110,001 to £120,000	-	1
£120,001 to £130,000	-	-
£130,001 to £140,000	1	1
£140,001 to £150,00	1	-
£150,001 to £160,000	-	-
£160,001 to £170,000	-	-
£170,001 to £180,000	-	1
£180,001 to £190,000	-	-
£190,001 to £200,000	1	1

These members of staff have pension benefits accruing under the group personal pension plan.

44

Report of the Board and consolidated financial statements Year ended 31 December 2020

Notes (continued)

(forming part of the financial statements)

11 Net movement on funds is stated after charging

	2020	2019
	£’000	£’000
Auditors’ remuneration – Charity (excluding VAT)		36
Auditors’ remuneration – Subsidiaries (excluding VAT)		4
Auditors’ remuneration – for other professional services		12
Depreciation and other amounts written off tangible fixed assets	2,424	2,576
Inventories recognised as an expense	1,205	1,380
12 Taxation
The charity is not liable to taxation on the net income from its primary activity. Stated below are the
tax details of the subsidiary St Monica Trading Limited:
	2020	2019
	£’000	£’000
Current tax
UK corporation tax on results of the year	-	-
Tax on profit on ordinary activities	-	-
Factors affecting the tax charge for the current period
The tax assessed for the period differs from the standard rate of corporation tax in the UK (19%),
_(2019: 19%)._The differences are explained below:
	2020	2019
	£’000	£’000
Current tax reconciliation
Profit before tax (of trading subsidiary only)	15	65
Current tax at 19%	3	12
Effects of:
Gift Aid payments	(3)	(12)
Total current tax charge (see above)	-	-

45

Report of the Board and consolidated financial statements Year ended 31 December 2020

Notes (continued)

(forming part of the financial statements)

13 Tangible fixed assets

Group Cost At beginning of year Transfers Additions Disposals in the year At end of year Depreciation At beginning of year Charge for year Depreciation on disposals At end of year Net book value At 31 December 2020 At 31 December 2019	Assets in the course of construction £’000 2,068 (749) 374 -	Freehold land and buildings £’000 152,683 749 1,793 (831) 154,394 13,521 753 (9) 14,265 140,129 145,407	Furniture and equipment £’000 21,794 - 1,244 (58) 22,980 13,599 2,017 (19) 15,597 7,383 1,194	Motor vehicles £’000 327 - 77 (8) 396 304 18 (8) 314 82 779	Total £’000 176,872 - 3,488 (897) 179,463 27,424 2,788 (36) 30,176 149,287 149,448
	1,693
	- - -
	-
	1,693
	2,068

The above schedule includes finance costs of £3,890,000 (2019: £3,890,000) relating to loan interest and charges incurred for financing the new Keynsham, Monica Wills House, the sheltered flats and the Garden House Annexe at Cote Lane, and the Sandford developments.

Land costing £27,025,000 (2019: £26,025,000) is not depreciated.

The Trustee’s review of the fixed assets has concluded that their value is not impaired.

46

Report of the Board and consolidated financial statements Year ended 31 December 2020

Notes (continued)

(forming part of the financial statements)

Charity Cost At beginning of year Transfers Additions Disposals in the year At end of year Depreciation At beginning of year Charge for year Depreciation on disposals At end of year Net book value At 31 December 2020 At 31 December 2019	Assets in the course of construction £’000 2,068 (749) 374 - 1,693 - - - - 1,693 2,068	Freehold land and buildings £’000 152,683 749 1,793 (831)	Furniture and equipment £’000 21,791 - 1,238 (58)	Motor vehicles Total £’000 £’000 327 176,869 - - 77 3,482 (8) (897) 396 179,454 304 27,424 18 2,787 (8) (36) 314 30,175 82 149,279 23 149,445	Motor vehicles Total £’000 £’000 327 176,869 - - 77 3,482 (8) (897) 396 179,454 304 27,424 18 2,787 (8) (36) 314 30,175 82 149,279 23 149,445
		154,394	22,971		179,454
		13,521 753 (9)	13,599 2,016 (19)		27,424 2,787 (36)
		14,265	15,596		30,175
		140,129	7,375		149,279
		139,162	8,192		149,445

47

Report of the Board and consolidated financial statements Year ended 31 December 2020

Notes (continued)

(forming part of the financial statements)

14 Fixed asset investments

Group

roup
Cost At beginning of year Transfer from Fixed Assets Additions Disposals At end of year Revaluation – unrealised gains At beginning of year Disposals Net gains arising on revaluation At end of year Net book value At 31 December 2020 At 31 December 2019	Investment Properties Financial securities Cash on deposit Other investments Total £’000 £’000 £’000 £’000 £’000* 55,767 81,859 5,800 2,913 146,339 - - - - - 62 19,160 1,994 - 21,216 (250) (11,463) - - (11,713)
	55,579 89,556 7,794 2,913 155,842 121,994 19,382 - (1,676) 139,700 (1,650) (3,392) - - (5,042) 3,779 (682) - (568) 2,529
	124,123 15,308 - (2,244) 137,187
	179,702 104,864 7,794 669 293,029
	177,761 101,241 5,800 1,237 286,039

There were total realised and unrealised gains during the year of £4,981,000 (2019: Gain £17,438,000). * Other investments are Hercules Unit Trust income units, investments in CCLA Investment Management Limited.

48

Report of the Board and consolidated financial statements Year ended 31 December 2020

Notes (continued)

(forming part of the financial statements)

Investments with a market value of greater than 5% of total quoted securities at 31 December 2020 and 2019:

Investment	Portfolio	Portfolio
	2020	2019
Artemis Equity Income Fund	-	5.4%
Brummer Multi-Strategy 2 XL Fund	5.8%	5.2%
NinetyPne (formerly Investec UK Special Situations Fund)	5.5%	6.9%
Newton Global Higher Income Fund	9.6%	10.1%
JO Hambro Global Select Equity Fund	7.2%	5.8%
KBI Institutional Developed Equity Fund	8.0%	9.5%
Trojan Income Fund	5.4%	6.4%
Kiltearn Global Equity Fund	7.4%	8.3%
Liontrust (formerly Neptune Income Fund)	-	-

The total cumulative surplus/(deficit) on revaluing investment properties is as follows:

Commercial property (note (a)) Agricultural property (note (b))	2020 2019 £’000 £’000 (200) (200) 124,323 122,194
	124,123 121,994

(a) Subject to the exception noted under (c) below, the last tri-annual valuation for the commercial property was at 31 December 2018 by CBRE Limited in accordance with the RICS Valuation – Professional Standards 2014 (the ‘Red Book’).

(b) The agricultural property has been valued at 31 December 2020 by the Land Steward in accordance with the RICS Valuation – Professional Standards 2014 (the ‘Red Book’).

(c) Block C at The Chocolate Quarter has been valued at 31 December 2020 by Alder King LLP in accordance with the RICS Valuation – Global Standards 2017 – incorporating the International Valuation Standards (Red Book) and the UK national supplement FRS102 ‘The Financial Reporting Standard’ applicable to the United Kingdom and Republic of Ireland.

49

Report of the Board and consolidated financial statements Year ended 31 December 2020

Notes (continued)

(forming part of the financial statements)

Charity

Cost At beginning of year Transfer from Fixed Assets Additions Disposals At end of year Revaluation – unrealised gains At beginning of year Disposals Net gains arising on revaluation At end of year Net book value At 31 December 2020 At 31 December 2019	Subsidiary undertakings Investment Properties Financial securities Cash on deposit Other investments Total £’000 £’000 £’000 £’000 £’000 £’000* - 55,767 81,859 5,800 2,913 146,339 - - - - - - - 62 19,160 1,994 - 21,216 - (250) (11,463) - - (11,713)
	- 55,579 89,556 7,794 2,913 155,842 - 121,994 19,382 - (1,676) 139,700 - (1,650) (3,392) - - (5,042) - 3,779 (682) - (568) 2,529
	- 124,123 15,308 - (2,244) 137,187
	- 179,702 104,864 7,794 669 293,029
	- 177,761 101,241 5,800 1,237 286,039

The charity owns 100% of the issued share capital of St Monica Trading Limited (company registration number: 11070522), a company incorporated in England and Wales. The total share capital is £1 – too small to show in the rounded figures above. The principal activities of this company are conducting the commercial operations undertaken at St Monica Trust’s retirement village at Keynsham.

• Other investments are Hercules Unit Trust income units, investments in CCLA Investment Management Limited.

15 Stocks

	Group		Charity
	2020	2019	2020	2019
	£’000	£’000	£’000	£’000
Sundry stocks	43	56	43	49

Stock relates to catering purchases in the SoFA of £1,205,000 (2019: £1,380,000)

50

Report of the Board and consolidated financial statements Year ended 31 December 2020

Notes (continued)

(forming part of the financial statements)

16 Debtors

Trade debtors Prepayments and accrued income Other debtors Amounts owed by group undertakings	Group 2020 2019 £’000 £’000 2,445 2,490 3,656 7,540 4,960 7,320 - - 11,061 17,350	Charity 2020 2019 £’000 £’000 2,445 2,490 3,597 7,653 4,959 7,186 59 113 11,060 17,442

Prepayments and accrued income include accrued consideration for agricultural disposals of £Nil (2019: £7,221,000), in respect of the Cheddington and Quakers Walk disposals. Professional fees in respect of the agricultural portfolio are £1,500,000.

Other debtors include an agricultural disposal for Brockworth of £470,000 (2019: £4,023,000) and cash in transit of £3,185,000 relating to the redemption from the David Leone Fund (2019: £Nil).

17 Creditors: amounts falling due within one year

Trade creditors Bank loan Amounts due to lifetime leasehold tenants Other creditors Tax and Social Security Accruals and deferred income Amounts owed to group undertakings	Group 2020 2019 £’000 £’000 1,747 1,806 116 2,362 15,073 14,989 2,108 2,016 1,263 1,457 4,322 4,750 - - 24,629 27,380	Charity 2020 2019 £’000 £’000 1,747 1,797 116 2,362 15,073 14,989 2,118 1,968 1,254 1,457 4,214 4,642 15 167 24,537 27,382

Accruals and deferred income includes accruals of £1,936,000 (2019: £1,899,000) and deferred income comprising £2,386,000 (2019: £2,851,000).

51

Report of the Board and consolidated financial statements Year ended 31 December 2020

Notes (continued)

(forming part of the financial statements)

Deferred income comprises care home fees of £1,255,002 (2019: £1,819,595), sheltered housing rent and service charges of £409,396 (2019: £470,664), commercial rents of £451,456 (2019: £444,662) and other of £270,062 (2019: £115,746):

and other of £270,062 (2019: £115,746):
Deferred income brought forward Recognised in the year Released to the SoFA in the year Deferred income carried forward	Group 2020 2019 £’000 £’000 2,851 2,165 2,386 2,851 (2,851) (2,165) 2,386 2,851	Charity 2020 2019 £’000 £’000 2,799 2,165 2,319 2,799 (2,799) (2,165) 2,319 2,799
			2,799

18 Creditors: amounts falling due after more than one year

Bank loan Amounts due to lifetime leasehold tenants Age analysis of bank loan Due within one year Between two and five After five years	Group 2020 2019 £’000 £’000 24,739 20,859 99,386 98,025 124,125 118,884 116 2,362 24,604 20,595 135 264 24,855 23,221	Charity 2020 2019 £’000 £’000 24,739 20,859 99,386 98,025 124,125 118,884 116 2,362 24,604 20,595 135 264 24,855 23,221	Charity 2020 2019 £’000 £’000 24,739 20,859 99,386 98,025 124,125 118,884 116 2,362 24,604 20,595 135 264 24,855 23,221
			118,884
			2,362 20,595 264
			23,221

The Trust’s bank loans have been arranged with no security having been provided by the Trust to the lender.

Bank loans consist of:

• a) Keynsham development loan relating to the commercial Block C of £20,000,000 which is fully utilised. The interest rate is 0.90% above LIBOR and is repayable in July 2022

• b) Revolving credit facilities of £20,000,000 of which £4,000,000 has been drawn down. The interest rate is 1.10% above LIBOR. The facility end date is 28 June 2022.

• c) John Wills Annex loan of £854,909 which is due for repayment by January 2028. The interest rate is 0.65% above bank base rates.

The amounts due to lifetime leasehold tenants relates to amounts paid by the residents for their leases, which is repayable when the properties are vacated.

52

Report of the Board and consolidated financial statements Year ended 31 December 2020

Notes (continued)

(forming part of the financial statements)

19 Other restricted funds – Group and charity

Residents’ legacy fund Community support fund	At 1 January 2020 Incoming resources Outgoing resources Gains on nvestments At 31 December 2020 £’000 £’000 £’000 £’000 £’000 162 3 3 4 166 194 2 2 7 201
	356 5 5 11 367

20 Designated fund – Group and charity

A designated fund has been set up for future maintenance costs on the Westbury-on-Trym, Cote Lane, Sandford and Bedminster sites. Transfers from the unrestricted fund have been made in line with the expected costs, and represent service charges received from residents.

At 1 January 2020 Transfer from the unrestricted fund Surrender Fees At 31 December 2020	Total £’000 5,031 290 640
	5,961

53

Report of the Board and consolidated financial statements Year ended 31 December 2020

Notes (continued)

(forming part of the financial statements)

21Analysis of funds

Group

Group
	Unrestricted Designated			Restricted			Expendable		Permanent	Total
		fund	fund		fund	endowment		endowment
									fund
Movement in funds		£’000	£’000		£’000		£’000		£’000	£’000
At 1 January 2020		16,698	5,031		356		-		282,191	304,276
Net incoming/(outgoing) resources		(2,751)	640		-		-		(1,322)	(3,433)
Transfers between funds		(344)	290		-		20,000		(19,946)	-
Gains on investment assets		(825)	-		11		-		5,795	4,981
Actuarial loss on pension liability		-	-		-		-		(241)	(241)
At 31 December 2020		12,778	5,961		367		20,000		266,477	305,583
Representation of	fund	£’000	£’000		£’000		£,000		£’000	£’000
balances
Tangible fixed assets		123,419		-		-		-	25,868	149,287
Investments		22,875		-	332		20,000		249,822	293,029
Cash and bank balances		9,801		-		-		-	(3)	9,798
Other current assets and liabilities		(19,192)	5,961			35		-	(329)	(13,525)
Long term creditors		(124,125)		-		-		-	-	(124,125)
Pension liability		-		-		-		-	(8,881)	(8,881)
At 31 December 2020		12,778	5,961		367		20,000		266,477	305,583
Unrealised and	realised	(825)			-	11		-	5,795	4,981
investment asset gains /	(losses)
included above

54

Report of the Board and consolidated financial statements Year ended 31 December 2020

Notes (continued)

(forming part of the financial statements)

Charity

	Unrestricted	Designated	Restricted	Expendable	Permanent	Total
	fund	fund	fund	endowment	endowment
				fund	fund
Movement in funds	£’000	£’000	£’000	£’000	£’000	£’000
At 1 January 2020	16,514	5,031	356	-	282,191	304,092
Net incoming/(outgoing) resources	(2,663)	640	-	-	(1,322)	(3,345)
Transfers between funds	(344)	290	-	20,000	(19,946)	-
Gains on investment assets	(825)	-	11	-	5,795	4,981
Actuarial gain on pension liability	-	-	-	-	(241)	(241)
At 31 December 2020	12,682	5,961	367	20,000	266,477	305,487
Representation of fund	£’000	£’000	£’000	£’000	£’000	£’000
balances
Tangible fixed assets	123,411	-	-	-	25,868	149,279
Investments	22,875	-	332	20,000	249,822	293,029
Cash and bank balances	9,622	-	-	-	(3)	9,619
Other current assets and liabilities	(19,101)	5,961	35	-	(329)	(13,434)
Long term creditors	(124,125)	-	-	-	-	(124,125)
Pension liability	-	-	-	-	(8,881)	(8,881)
At 31 December 2020	12,682	5,961	367	20,000	266,477	305,487
Realised and unrealised	(825)	-	11	-	5,795	4,981
investment asset gains
included above
22 Capital commitments
					2020	2019
					£’000	£’000
Capital expenditure that	has been contracted for		but has not	been
provided for in the financial	statements				2,857	4,730

55

Report of the Board and consolidated financial statements Year ended 31 December 2020

Notes (continued)

(forming part of the financial statements)

23 Operating leases as a lessee

The future minimum lease payments under non-cancellable operating leases expected to be paid by the Charity and Group will fall due as follows:

	2020	2019
	Group and Charity plant	Group and Charity plant
	and machinery	and machinery
	£’000	£’000
Within one year	8	12
Between one and five years	16	20
After five years	-	-
	24	32

The total charge to the statement of financial activities in the year in respect of operating lease rentals for the hire of plant and machinery was £10,000 (2019: £14,000).

24 Operating leases as a lessor

The future minimum lease payments due to be received under non-cancellable operating leases by the Charity and Group are as follows:

	2020	2019
	Group and	Group and
	Charity	Charity
	leasehold	leasehold
	property	property
	£’000	£’000
Within one year	1,334	1,307
Between one and five years	6,635	8,107
After five years	3,754	5,744
	11,723	15,158

25 Reconciliation of movement in net cash

Investments Cash at bank and in hand Bank loan	At 1 January 2020 Cash flow At 31 December 2020 £’000 £’000 £’000 5,800 1,994 7,794 6,406 3,392 9,798 (23,221) (1,634) (24,855)
	(11,015) 3,752 (7,263)

56

Report of the Board and consolidated financial statements Year ended 31 December 2020

Notes (continued)

(forming part of the financial statements)

26 Analysis of changes in net debt

Cash and cash equivalents Cash Overdrafts Cash equivalents Borrowings Debt due within one year Debt due after one year Total	At 1 January 2020 Cash flow At 31 December 2020 £’000 £’000 £’000 6,416 3,384 9,800 (10) 8 (2)
	6,406 3,392 9,798 (2,362) 2,246 (116) (20,859) (3,880) (24,739)
	(23,221) (1,634) (24,855)
	(16,815) 1,758 (15,057)

27 Related party transactions

A number of the Trust’s Council members are also members of the Society of Merchant Venturers. The Trust paid a fee including reallocation of salaries and overhead costs totalling £251,000 (2019: £246,000) to the Society of Merchant Venturers of Bristol to cover the services it provides in its role as Endowment Trustee (note 6(a)).

A professional indemnity insurance premium of £2,900 (2019: £2,800) was paid by the Trust on the behalf of the Trustees.

The charity owns 100% of the issued share capital of St Monica Trading Limited (company registration number: 11070522), a company incorporated in England and Wales. During the period St Monica Trust provided to St Monica Trading Limited staff time, catering supplies and other operating costs totalling £304,930 (2019: £676,039) and collected £323,869 (2019: £843,073) of income. The amount owing to St Monica Trading Limited at the period end was £14,938 (2019: £167,636). A Gift Aid payment was made to St Monica Trust by St Monica Trading Limited of £163,576 in respect of the trading results for 2019 (2019: £98,595 in respect of the trading results for 2018).

St Monica Trustee Company is the sole member of Somerdale Pavilion Trust (company registration number: 11730938), a company limited by guarantee, incorporated in England and Wales and registered as a charity (registered charity number: 1182426). During the period, St Monica Trust provided staff time and funds for operating expenses to Somerdale Pavilion Trust totalling £64,884 (2019: £152,654) and provided services to St Monica Trust in the form of parking and academy rent totalling £236,850 (2019: £39,476). The amount owed by St Monica Trust at the year-end was £58,789 (2019: £113,178).

57

Report of the Board and consolidated financial statements Year ended 31 December 2020

Notes (continued)

(forming part of the financial statements)

28 Pension schemes

Unfunded pension liability

The Trust has granted unfunded defined benefit pensions to some current and former employees of the Trust. The valuation of the pensions was carried out as at 31 December 2020 by PriceWaterhouseCoopers, a qualified independent actuary who are a fellow of the Institute of Actuaries. Pension payments made for the year ended 31 December 2020 in respect of the defined benefit pensions were £287,000 (2019: £298,000).

The principal assumptions made by	2020	2019	2018	2017
the Trust were:
	%	%	%	%
Rate of increase in pensionable	3.0	3.0	3.2	3.1
salaries
Rate of increase in pensions in	2.9	2.9	3.0	3.0
payment
Inflation rate	3.0	3.0	3.2	3.1
Discount rate	1.3	2.0	2.8	2.5
Pensioner and non-pensioner	1% pa	1% pa	1% pa	1% pa
mortalitySAPS all MC
The amounts recognised in the balance
sheet are as follows:	£’000	£’000	£’000	£’000
Present value of scheme liabilities	(8,881)	(8,759)	(8,095)	(8,505)
Deficit in the scheme	(8,881)	(8,759)	(8,095)	(8,505)

58

Report of the Board and consolidated financial statements Year ended 31 December 2020

Notes (continued)

(forming part of the financial statements)

Analysis of amount charged to net outgoing resources in respect of defined benefit pensions Interest on pension liability Total operating charge Movement in liability during the year Liability at the start of the year Movement: Employer contributions (including pension payments) Interest cost Actuarial gain / (loss) Liability at the end of the year covered by a specific provision in the financial statements Analysis of amount recognised in the statement of financial activities Actuarial gain / (loss) recognised in the statement of financial activities	2020 2019 £’000 £’000 (168) (222)
	(168) (222)
	2020 2019 £’000 £’000 (8,759) (8,095) 287 298 (168) (222) (241) (740)
	(8,881) (8,759)
	£’000 £’000
	(241) (740)

59

Report of the Board and consolidated financial statements Year ended 31 December 2020

Notes (continued)

(forming part of the financial statements)

Amounts for the current and previous four periods are as follows

	2020	2019	2018	2017	2016
	£’000	£’000	£’000	£’000	£’000
Scheme assets	-	-	-	-	-
Scheme liabilities	(8,881)	(8,759)	(8,095)	(8,505)	(8,876)
	__	__	__	__	__
Deficit in plan	(8,881)	(8,759)	(8,095)	(8,505)	(8,876)
Actuarial	(241)	(740)	316	303	(1,249)
gains/(losses) on	__	__	__	__	__
liabilities
Statement of total	(241)	(740)	316	303	(1,249)
recognised gains and	__	__	__	__	__
losses for the period
ending 31 December

Other pension scheme

The Trust also contributes to a group personal pension plan. The contributions made by the Trust to this pension scheme are charged to the statement of financial activities when they fall due and were £816,000 (2019: £766,000).

60

Report of the Board and consolidated financial statements Year ended 31 December 2020

Notes (continued)

(forming part of the financial statements)

29 Comparative charity statement of financial activities

Income Income from charitable activities Residential care and support Accommodation income Generated funds Investment income Total income Expenditure Costs of raising funds Investment management charges Property operational costs Major repairs and other costs Total costs of generating funds Charitable activities Costs in furtherance of the Trust’s objects Residential care and support Accommodation costs Community support Governance Total charitable expenditure Total expenditure Net income/expenditure before investment losses Realised and unrealised losses on investments Net income/expenditure before transfers and Net income/(expenditure) for the year Transfers between funds Actuarial gain/(loss) on defined benefit pension Net movement in funds Total funds brought forward Total funds carried forward	Restricted funds Unrestricted Funds Designated fund Other restricted funds Permanent endowment funds Total Funds 2019 £’000 £’000 £’000 £’000 £’000 30,316 - - - 30,316 1,166 549 - - 1,715 9,091 - 5 - 9,096
	40,573 549 5 - 41,127
	(41) - - (696) (737) (1,417) - - - (1,417) (45) - - (169) (214)
	(1,503) - - (865) (2,368) (37,239) - (5) (1,903) (39,147) (654) - - - (654) (766) - - - (766) (55) - - - (55)
	(38,714) - (5) (1,903) (40,622)
	(40,217) - (5) (2,768) (42,990)
	356 549 - (2,768) (1,863) - - 42 17,396 17,438
	356 549 42 14,628 15,575 (344) 290 - 54 - - - - (740) (740)
	12 839 42 13,942 14,835 16,502 4,192 314 268,249 289,257
	16,514 5,031 356 282,191 **304,092 **

61