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2022-06-30-accounts

Charity number: 209261

Edgware Abbey

Report and financial statements For the year ended 30 June 2022

Edgware Abbey

Contents

For the year ended 30 June 2022

Reference and administrative details .............................................................................................. 1 Trustees’ annual report ................................................................................................................... 3 Independent auditor’s report ....................................................................................................... 12 Statement of financial activities ..................................................................................................... 15 Balance sheet ............................................................................................................................... 16 Statement of cash flows ................................................................................................................ 17 Convent income and expenditure account .................................................................................... 18 Care home income and expenditure account ............................................................................... 19 Notes to the financial statements ................................................................................................. 20

Edgware Abbey

Reference and administrative details

For the year ended 30 June 2022

Charity number 209261
Country of registration England and Wales
Registered office and Edgware Abbey
operational address 94A Priory Field Drive
EDGWARE
Middlesex
HA8 9PU
Trustees Trustees who served during the year and up to the date of this report
were as follows:
Dame Mary Thérèse Zelent OSB: Abbess
Dame Barbara Johnson OSB (until 17 November 2022)
Mrs Denise Cooper
Rt Revd Peter William Wheatley
Revd Paul Reece
Mrs Gisela Daniels (until 11 March 2022)
Mr John Ringguth
Mr James Stewart-Smith (from 11 March 2022)
Investment managers Charles Stanley & Company Ltd
Ground Floor, 1 Bishop’s Wharf,
Walnut Tree Close,
GUILDFORD
Surrey GU1 4HI
Bankers CAF Bank
25 Kings Hill Avenue
West Malling
Kent
ME19 4TA
HSBC
PO Box 27
101-103 Station Road
EDGWARE
HA8 7JJ
Scottish Widows Bank
PO Box 12757
67 Morrison Street
Edinburgh
EH3 8YJ

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Edgware Abbey

Reference and administrative details

For the year ended 30 June 2022

Solicitors TWM Solicitors
Sweech House
Gravel Hill
Leatherhead
Surrey KT22 7HF
Auditor Sayer Vincent LLP
Chartered Accountants and Statutory Auditors
Invicta House
108-114 Golden Lane
LONDON
EC1Y 0TL

2

Edgware Abbey

Trustees’ annual report

For the year ended 30 June 2022

The trustees present their report and the audited financial statements for the year ended 30 June 2022.

The financial statements have been prepared on the accounting policies set out in note 1 to the financial statements and comply with the charity's trust deed, applicable law and the requirements of the Statement of Recommended Practice - Accounting and Reporting by Charities (SORP 2005).

Charity objects

The charity's main activities and who it tries to help are described below. All its charitable activities are undertaken to further Edgware Abbey’s charitable purposes for the public benefit.

The Objects of the Charity are to advance the Christian faith in accordance with the doctrines and principles of the Church of England, and to carry out the social mission of the church through the support of charitable work for the relief of poverty, through the maintenance of a religious Community of women, organised in accordance with the Rule of St Benedict and dedicated to St Mary at the Cross.

Historical summary

Founded in Shoreditch in 1866, this Anglican Benedictine Community closed its original hospital for ‘incurable children’ in 1931, moving the sick and disabled people in its care to what became the only house of the Order, in Edgware. Built by the Community in 1874 to provide a convalescent home in the country for those in their care, the convent at Edgware was extended in 1932 to provide necessary accommodation following the closure of the Shoreditch Hospital. The disabled and sick people in the care of the Sisters shared the convent buildings until 1992, when they moved into the newly built Care Home in the Abbey grounds, Henry Nihill House, (HNH). HNH is a not-for-profit Home in the Voluntary Sector, and is subsidised by the Charitable Trust.

The Trust holds the legal title to the land and buildings used by the Community (Edgware Abbey) and also a substantial portfolio of other investments and property, which produce income for the support of the Community and its charitable works. The principal charitable work carried out by the Community is the provision and conduct of a Care Home with nursing, Henry Nihill House. The Community also holds services in the chapel, to which HNH residents have easy access, provides the facility for parish groups to hold Quiet Days and study days, and guest accommodation for private retreats and space for rest and renewal.

The trustees have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing the charity's aims and objectives and in planning its future activities. In particular, the trustees consider how planned activities will contribute to the aims and objectives that have been set.

In 2010 the Trustees made a decision to invite the Hospitaller Order of St John of God to undertake the overall operational management of Henry Nihill House as the Order operated with

3

Edgware Abbey

Trustees’ annual report

For the year ended 30 June 2022

an ethos that is very close to that of St Mary at the Cross. On 1 February 2011, the Trustees entered into a management contract with the Order of St John of God in which they undertook the overall responsibility for the leadership and operational management and staffing of the Home (which remains the property of the Trust) with quarterly review meetings for trustees and management team, to discuss all aspects of the running of HNH including an appraisal of costs and budgeting.

In August 2020 the board decided to terminate the arrangement with St John of God bringing the operational management back in house, taking up employment of staff from 1[st] April 2021. A review was be completed at 16 to 18 months post SJOG a review of the situation for sustainability proposed a senior management level for Director of Operations and taken to the board for consideration.

HNH, which is a home for adults with 30 beds, is registered with the CQC - Care Quality Commission, under the Health & Social Care Act 2008, for the provision of:

a) Accommodation for persons who require nursing or personal care; b) Treatment of disease, disorder or injury.

There is a constant demand for beds in HNH, a not-for-profit Home in the Voluntary Sector, and full occupancy is the norm. The Home has Spot Beds with Barnet Council, is registered for Continuing Health Care, and on average 33% of residents paying their own fees for as long as their financial circumstances allow; no-one is ever turned away when their resources run out. While service users who can afford the costs pay fees until their financial resources diminish, the Home depends largely on NHS and Local Authority funding for the majority of those in care, and where necessary on subsidy from the Trust.

It is well known that it is not possible for a Care Home to maintain acceptable standards on Local Authority levels of funding. Barnet Council have only raised their funding level very slightly for several years now, and HNH is regularly subsidised from the Charity Trust funds; however skilfully this not-for-profit Home is managed the impact of low funding, and delayed payments, from Local Authorities and NHS sources make it impossible for the Home to maintain its high standards of care without the support of the Trust. During 2021/2022 this situation was made much worse by the merge of the North Central Care Board which created a backlog of funding to HNH – a very distressful time. Clearly HNH needs to rely on fundraising and Trust subsidy for all major maintenance works on buildings and grounds, legal and professional fees, insurance, expensive equipment, provision of specialised vehicles, pilgrimages and holidays for residents, and other special projects. In the present 2022 economic climate with the financial crisis enhanced by the on-going effects of Covid-19 and ‘Brexit’ , rising inflation and fuel costs due to war in Ukraine, it is becoming increasingly difficult to maintain the level of funding required.

Mission statement and ethos

Edgware Abbey - an Anglican Benedictine Community, founded in 1866; a registered Charitable Trust: "To advance the Christian faith in accordance with the doctrines and principles of the

4

Edgware Abbey

Trustees’ annual report

For the year ended 30 June 2022

Church of England, and to carry out the social mission of the Church through the support of charitable work for the relief of poverty, through the maintenance of a religious community of women organised in accordance with the Rule of St Benedict and dedicated to St Mary at the Cross."

In addition to its Ministry of Benedictine Hospitality for those seeking Sacred Space and Retreat, and Spiritual Renewal, the Community is the provider of care for 30 residents at Henry Nihill House Care Home with nursing. People of all faiths or none are welcomed. In accordance with the regulations of the Health and Social Care Act (2015); and in accordance with its Benedictine spiritual ethos, "Before all things, care must be taken of the sick; all are to be cared for as Christ Himself." (Rule of St Benedict Ch 36 reflecting St Matt. 25:36.40) through a bespoke service which is delivered to each person in a professional, inclusive and caring manner by upholding our values of Courtesy, Hospitality, Integrity, Individuality and Adaptability … Jesus said “What you have done unto the least of my brothers and sisters, you have done unto me” (Matt 25:40)

At Henry Nihill House Care Home, built adjoining Edgware Abbey, the presence of the Sisters and provision of chapel services is a valued dimension in the life of those who reside at Henry Nihill House; the Sisters maintain a presence in the home, working with the management and staff. A bespoke service is provided upholding the rights of each person in their choices, and to retain dignity, respect, privacy and freedom in their daily lives. Many who cannot be cared for elsewhere find a friendly welcome and expert care in the loving and homely atmosphere of Henry Nihill House, this ministry reflects the original charism and purpose/objects of our charity from its foundation. Everyone's need, both service users and colleagues, for continued fulfilment in life is seen as a gospel value:

Jesus said: "I am come that you may have life, and have it more abundantly." (St John 10:10b)

Property management

When the decision was made to sell the old Abbey buildings, conversion of laundry and other outbuildings to create dwellings for Sisters was approved by English Heritage. This has enabled the Sisters to remain living on-site and maintain their charitable works.

Financial review

Income for the year increased to £2,363,004 (2021: £2,237,144). Dividend income has decreased by £405 (2021: decrease of £87,595). There was an increase in Care Home income of £210,701 (2021: increase of £19,632). There have also been restricted grants received for covid support of £43,400 (2021: £80,473).

Expenditure increased to £2,722,001 (2021: £2,463,290). The charity made a Deficit of £1,400,300 (2021: surplus of £675,975). This is due to investments making a large deficit for the year end of £1,041,303 (2021: gain of £902,121). At the end of the year net unrestricted funds were £16,601,157 (2021: £17,967,542) and net current assets less restricted funds were £463,068 (2021: 427,743).

5

Edgware Abbey

Trustees’ annual report

For the year ended 30 June 2022

The trustees are confident that the financial position at the end of the year is satisfactory, in accordance with the careful activity of the Investment Managers.

Risk statement

The main financial risk is of reducing investment income and the increasing costs of running Henry Nihill House. Investment income has decreased due to global economic situation, and the portfolio is reviewed quarterly to make sure it is achieving its objectives.

Other risks include failing a CQC inspection or a serious incident at Henry Nihill House. The Trustees have reviewed these, and other risks facing the Charity, assessed their impact and put in place appropriate management actions including staff training to manage risks. The plans for the future drawn up by the Trustees and the actions they have decided to take, reflect their responsible stewardship and careful consideration.

Covid-19 has presented a new challenge in risk management for finances and health care. With the government relaxing some of the Covid-19 restrictions through the summer of 2021, certain measures have remained in place, or adapted as appropriate, to protect the residents and staff of the Care Home, and continuing through 2022 and on-going.

Safeguarding Statement

The Community of St Mary at the Cross with the Trustees of The Edgware Abbey Charitable Trust are committed to Safeguarding, regarding safeguarding to be the responsibility of everyone, and promoting the welfare of all persons and especially all those who are vulnerable, that is children, young people, and adults - especially the vulnerable, frail and infirm in their care. It is our expectation that all visitors/relatives at the care home will treat all the residents and staff with equal courtesy and respect at all times. We expect all our staff, volunteers, visitors, and those who use our premises to share this commitment.

The Community of St mary at the Cross accept and abide by the principles set out in ‘Safeguarding in the Diocese of London’, and follow the guidance issued by the House of Bishops for Religious Communities, and adhere to the policies and practice guidance from the Diocese of London and National Safeguarding Team. We have a DSP. We apply the rules of Safer Recruitment for our members and staff. Our Safeguarding Statement and Community Policy is reviewed annually.

Reserves policy

The Trustees have built up reserves as a form of endowment for the Care Home and Community. The Charity needs to use these reserves to provide an income to support the members of the Community and its charitable work, and to provide a subsidy for the Care Home, in order to maintain quality of care. The amount held in reserves is reviewed regularly to make sure that it is sufficient to support the work of the charity. At the year-end free reserves, reserves not held in fixed assets, were £463,068 (2021: £427,743).

6

Edgware Abbey

Trustees’ annual report

For the year ended 30 June 2022

The Trust retains a sufficient area of property to enable the members of the small Community to continue its religious life of prayer and service, and to carry out its Charitable Objects. The area of the property includes:

The Chapel; Cloisters; Cemetery; Care Home; Gardens; accommodation for the Sisters, and a small area for Quiet Day Groups, Retreat Guests and people wanting quiet space for rest and renewal.

Investment policy

The Charitable Trust has a managed Investment Portfolio, which includes its Investment Policy Statement. This Statement lays down the Charity's Investment Objectives, its brief and its Investment restrictions on ethical grounds.

Investment policy statement

This Policy Statement has been prepared by the Trustees of the Edgware Abbey Charitable Trust and provides guidance as to how the asset's management functions delegated to Charles Stanley & Co. Ltd. by the Trustees, should be exercised. It has been formulated with a view to ensuring that the asset management functions will be exercised in the best interest of the Trust.

Investment objective

The Trustees intend that the real value of their assets be maintained and enhanced over the long term by investment in a Portfolio comprised of equities, fixed income stocks and cash, while at least maintaining the level of income yield at between 4-5% per annum. During the year the Investments achieved this yield.

Investment restrictions

No investment to be made into companies involved in Tobacco, Armaments, or Genetic Engineering for unethical purposes; also be guided by the Church of England Policy on Ethical and sustainable Investments.

Investment brief

In order to meet these investment objectives, the Trustees have appointed Charles Stanley & Co Ltd. as their agent, to manage a diversified Portfolio of suitable investments on a discretionary basis. In the context of the Charles Stanley & Co Client understanding note, the Trustees have selected an income investment objective with low to medium risk. The proportion invested in equities, fixed income stocks and cash, shall be reviewed with Charles Stanley & Co from time to time, to provide guidance on the ongoing suitability of that element of the investment Policy.

7

Edgware Abbey

Trustees’ annual report

For the year ended 30 June 2022

Review

The Trustees will regularly consider whether there is a need to revise this Policy Statement and keep under review the arrangement under which Charles Stanley acts as their agent, and periodically review performance of Broker Company. The Trustees receive a quarterly report on the performance of the Investment Portfolio. Investment meetings are held twice yearly to receive reports and to review the Portfolio.

Within the year the income return was 4% across the year this was under the income yield set as above, affected by global events and circumstances.

Governance and structure

For the purpose of the running of the activities of the Edgware Abbey, the trustees have delegated this responsibility to the Abbess of the community. The Trustees of the Trust currently number six; no more than seven persons shall be appointed by resolution of the Trustees; Trustees are appointed for terms of three years; any competent Trustee may be reappointed, (Subject to clause 2). When a new Trustee is to be appointed, the proposal takes place at a Trustees' meeting; after discussion the Appointee is proposed, seconded and elected by a show of hands, a simple majority being required. The solicitor is informed of the proposed change and a Deed of Appointment duly drawn up and signed by the existing Trustees. The Superior, (known as the Abbess) of the said Community of women, known as the Community of St Mary at the Cross, must always be a Trustee if competent to act, and at least a majority of the Trustees must be members of the Church of England or of churches in communion with the Church of England.

New trustees receive an induction to their role through a series of meetings, discussions and the provision of important information regarding the Trust to ensure they know the work of the trust and the current issues it faces. Additional training is also provided where needed to new trustees if they have specific requirements as well as additional guidance on the Charity’s Commission available for trustees.

Remuneration policy for key management personnel

Edgware Abbey is committed to ensuring that all staff are paid fairly. The Trustees decide the Key Management Personnel salary annually ensuring that the salary is in line with current market value, and adjusted accordingly. The salary is set in line with role and responsibilities and maintain a deferential between roles. The Trustees have worked towards the ‘Real Living Wage’ as set by the Living Wage Foundation and are now an accredited Living Wage Employer.

Overall salary funding is part of the annual budget process, and within that approved budget the Key Management Personnel agree with the board any key payment changes.

8

Edgware Abbey

Trustees’ annual report

For the year ended 30 June 2022

Events in the year

In the year the Sisters of the Abbey and the staff of Henry Nihill House have continued their work to improve the experience of residents’ even through the changing environments as a result of Covid-19 restrictions. Some of the ways in which they have done this include:

Future plans

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Edgware Abbey

Trustees’ annual report

For the year ended 30 June 2022

Fundraising standards

As part of our commitment to good governance and adhering to best practice, we are proud to follow their guidance of the Fundraising Regulator on any of our fundraised income. We aim to ensure that fundraising is respectful, open, honest and accountable to the public.

Edgware Abbey has not engaged commercial participators or other professional fundraisers to raise money on its behalf in the period. We did not receive any complaints in relation to our fundraising during the period. Fundraising events arranged in the period are detailed above.

Statement of responsibilities of the trustees

The trustees are responsible for preparing the report of the trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England and Wales requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that period. In preparing these financial statements, the trustees are required to:

10

Edgware Abbey

Trustees’ annual report

For the year ended 30 June 2022

The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

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

Auditor

Sayer Vincent LLP is the appointed auditor of the Edgware Abbey.

Approved by the trustees on 10 March 2023 and signed on their behalf by

M H Zelent Rt. Revd. P. W. Wheatley

Mother Abbess Trustee

11

Independent auditor’s report

To the members of

Edgware Abbey

Opinion

We have audited the financial statements of Edgware Abbey (the ‘charity’) for the year ended 30 June 2022 which comprise the statement of financial activities, balance sheet, statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

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

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on Edgware Abbey's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

12

Independent auditor’s report

To the members of

Edgware Abbey

Other Information

The other information comprises the information included in the trustees’ annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the statement of trustees’ responsibilities set out in the trustees’ annual report, the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

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

13

Independent auditor’s report

To the members of

Edgware Abbey

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud are set out below.

Capability of the audit in detecting irregularities

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or

14

Independent auditor’s report

To the members of

Edgware Abbey

non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of our report

This report is made solely to the charity's trustees as a body, in accordance with section 144 of the Charities Act 2011 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 the charity's trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Date 21 March 2023

Sayer Vincent LLP, Statutory Auditor

Invicta House, 108-114 Golden Lane, LONDON, EC1Y 0TL

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

15

Community of St Mary at the Cross

Statement of financial activities

For the year ended 30 June 2022

Note
Income from:
2
Dividends
Interest
3a
3a
3a
4
Reconciliation of funds:
Total funds brought forward
Total funds carried forward
Raising funds
Net (expenditure)/income and net
movement in funds
Total expenditure
Charitable activities
Care home
Convent
Net (losses) /gains on investments
Net expenditure before net
(losses)/gains on investments
Investments
Total income
Expenditure on:
Donations and legacies
Charitable activities
Care home
Convent		 Unrestricted
£
19,402
1,820,736
14,552
454,647
267		 Restricted
£
10,000
43,400
-
-
-		 2022
Total
£
29,402
1,864,136
14,552
454,647
267		 Unrestricte
£
15,740
1,572,962
12,716
455,052
201		 Restricted
£
100,000
80,473
-
-
-		 2021
Total
£
115,740
1,653,435
12,716
455,052
201
2,309,604 53,400 2,363,004 2,056,671 180,473 2,237,144
57,719
2,308,569
254,346		 -
101,355
-		 57,719
2,409,924
254,358		 51,858
2,110,051
239,927		 -
61,454
-		 51,858
2,171,505
239,927
2,620,634 101,355 2,722,001 2,401,836 61,454 2,463,290
(311,030)
(1,041,303)		 (47,955)
-		 (358,997)
(1,041,303)		 (345,165)
902,121		 119,019
-		 (226,146)
902,121
(1,352,333)
17,967,542		 (47,955)
119,019		 (1,400,300)
18,086,561		 556,956
17,410,586		 119,019
-		 675,975
17,410,586
16,615,209 71,064 16,686,261 17,967,542 119,019 18,086,561

All of the above results are derived from continuing activities. There were no other recognised gains or losses other than those stated above. All income and expenditure is unrestricted. Movements in funds are disclosed in Note 14 to the financial statements.

16

Community of St Mary at the Cross

Balance sheet

As at 30 June 2022

Note
Fixed assets:
9
10
Current assets:
11
Liabilities:
12
14
Total unrestricted funds
The funds of the charity:
General funds
Total charity funds
Unrestricted income funds:
Revaluation reserve
Restricted Funds
Creditors: amounts falling due within one year
Short term deposits
Total net assets
Net current assets
Investments
Cash at bank and in hand
Tangible assets
Debtors		 £
308,870
102,633
276,245		 2022
£
4,867,265
11,270,812		 316,402
102,582
268,995		 2021
£
4,854,838
12,684,961
16,138,077
548,184		 17,539,799
546,762
687,748
(139,564)		 687,979
(141,217)
(819,578)
17,434,775		 536,962
17,430,580
16,686,261 18,086,561
71,064
16,615,197		 119,019
17,967,542
16,686,261 18,086,561

Approved by the trustees on 10 March 2023 and signed on their behalf by

M H Zelent Mother Abbess

Rt. Revd. P. W. Wheatley Trustee

17

Community of St Mary at the Cross

Statement of cash flows

For the year ended 30 June 2022

Reconciliation of net (expenditure) to net cash flow from operating activities

Cash and cash equivalents at the beginning of the
year
Cash and cash equivalents at the end of the year
Change in cash and cash equivalents in the year
Cash flows from operating activities
Net cash provided by investing activities
Net cash (used in) operating activities
Cash flows from investing activities:
Dividends, interest and rents from investments
Purchase of fixed assets
Proceeds from sale of investments
Net cash (used in) operating activities
Purchase of investments
Movement on cash in investments
Net (expenditure)/ Income for the reporting period
(as per the statement of financial activities)
Depreciation charges
Losses/(Gains) on investments
Dividends, interest and rent from investments
Decreased/ (Increase) in debtors
(Decrease)/ Increase in creditors
Loss on disposal of fixed assets		 £
£
(745,244)
454,914
(75,215)
9,836,057
(781,513)
(8,681,698)
752,545
7,301
371,577
378,878
2022		 £
£
(745,244)
454,914
(75,215)
9,836,057
(781,513)
(8,681,698)
752,545
7,301
371,577
378,878
2022		 2022
£
(1,400,300)
62,788
-
1,041,303
(454,914)
7,532
(1,653)		 2021
£
675,975
59,255
165
(902,121)
(455,253)
(187,383)
88,647
7,301
371,577		 39,823
331,754
378,878 371,577

18

Community of St Mary at the Cross

Care home income and expenditure account

For the year ended 30 June 2022

Income
Expenses
Deficit for the year
Other staff costs
Staff costs
Investment income
Fees receivable
Other
Professional services
Accountancy
Allocation of governance costs ( note 3 )
Inspection fees
Donations and grants
Other direct costs
Medical
Repairs and renewals
Office costs
Catering
General expenses
Depreciation on freehold property
Depreciation on fixtures, fittings and equipment
Depreciation on ambulance and minibus		 2022
£
49
1,782,370
43,400
38,366		 2021
£
8
1,569,448
80,618
3,369
1,864,185
1,771,078
19,005
22,115
12,942
9,456
12,297
149,793
62,650
7,921
71,674
176,115
53,787
14,747
25,289
1,055		 1,653,443
388,684
8,898
1,370,434
9,320
9,080
4,270
23,443
80,727
31,518
33,028
172,763
4,617
14,747
18,986
990
2,409,924 2,171,505
(545,739) (518,062)

In the proir year, included within professional services is management fees paid to St John of God for the provision of services related to the care home. With 2022, all these services were provided inhouse.

Staff costs
Office costs
Utilities
Expenses
Maintenance
Furniture/equipment
Medical consumables
Management fees
Depreciation
Recruitment and CIB checks
Training
Registration fees and insurances
Life cover pension scheme		 2022
£
-
-
-
-
-
-
-
-
-
-
-
-
-		 2021
£
1,077,704
19,081
33,269
670
73,285
6,965
144
21,130
2,241
9,637
2,387
123,399
522
- 1,370,434

19

Community of St Mary at the Cross

Convent income and expenditure account

For the year ended 30 June 2022

Income
Convent Expenses
Investment income
Interest
DSS pensions and benefits
Donations
Receipts from guests
Other income
Rates and water
Insurance
Legal and professional
Light and heat
Chapel expenditure
Repairs and maintenance
Library expenses
Printing, postage and stationery
Telephone and fax
Website design and computer expenses
Catering
Housekeeping
Medical costs
Clothes
Costs of generating funds - investment managers fees
Total expenditure for Covent
Surplus for the year
Motor vehicles
Advertising
Depreciation:
Freehold convent and chapel
Fixtures and fittings
Motor expenses
Accountancy
Allocation of governance cost (Note 3)
Bank charges
Sundry expenses and funeral arrangements
Donations paid
Courses and conferences		 2022
2021
£
£
454,647
455,052
218
193
13,988
12,563
29,392
115,740
10
-
564
153
498,819
583,701
4,674
4,609
46,271
28,268
-
832
31,587
13,953
2,812
1,713
61,542
61,565
419
683
4,363
4,909
18,204
18,936
15,466
17,455
139
177
5,686
6,520
1,077
835
3,271
6,447
2,982
2,651
3,164
3,354
4,589
5,859
18,100
18,865
998
1,003
382
318
4,677
9,686
2,256
6,594
20,644
22,988
-
825
1,055
717
254,358
239,762
57,719
51,858
312,077
291,620
186,742
292,081

20

Community of St Mary at the Cross

Notes to the financial statements

For the year ended 30 June 2022

The Community of St Mary at the Cross Charitable Trust is an unincorporated charity registered with the Charity Commission in England & Wales.

The registered office address and principal place of business is Edgware Abbey, 94A Priory Field Drive, Edgware, Middlesex, HA8 9PU.

b) 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) - (Charities SORP FRS 102), The Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.

Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy or note.

In applying the financial reporting framework, the trustees have made a number of subjective judgements, for example in respect of significant accounting estimates. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The nature of the estimation means the actual outcomes could differ from those estimates. Any significant estimates and judgements affecting these financial statements are detailed within the relevant accounting policy below.

c) Public benefit entity

The charity meets the definition of a public benefit entity under FRS 102.

The trustees have reviewed budget and considered the impact of covid and consider that there are no material uncertainties about the charity's ability to continue as a going concern.

The trustees do not consider that there are any sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next reporting period.

e) Income

Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the income have been met, it is probable that the income will be received and that the amount can be measured reliably.

For legacies, entitlement is taken as the earlier of the date on which either: the charity is aware that probate has been granted, the estate has been finalised and notification has been made by the executor(s) to the charity that a distribution will be made, or when a distribution is received from the estate. Receipt of a legacy, in whole or in part, is only considered probable when the amount can be measured reliably and the charity has been notified of the executor’s intention to make a distribution. Where legacies have been notified to the charity, or the charity is aware of the granting of probate, and the criteria for income recognition have not been met, then the legacy is a treated as a contingent asset and disclosed if material.

Income received in advance of the provision of a specified service is deferred until the criteria for income recognition are met.

f) Interest receivable

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

21

Community of St Mary at the Cross

Notes to the financial statements

For the year ended 30 June 2022

g) Fund accounting

Restricted funds are to be used for the specific purposes as laid down by the donor. Expenditure which meets these criteria is charged to the fund.

h) Expenditure and irrecoverable VAT

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. Expenditure is classified under the following activity headings:

Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.

i) Tangible fixed assets

Items of equipment are capitalised where the purchase price exceeds £500. Depreciation costs are allocated to activities on the basis of the use of the related assets in those activities. Assets are reviewed for impairment if circumstances indicate their carrying value may exceed their net realisable value and value in use. Assets are held at historic rates and are not revalued.

Depreciation is provided at rates calculated to write down the cost of each asset to its estimated residual value over its expected useful life. The depreciation rates in use are as follows:

 Freehold property 100 years

 Freehold property improvements 20 years

 Fixture, fittings and equipment 5 years

 Motor vehicles 4 years

j) Listed investments

Investments are a form of basic financial instrument and 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. Any change in fair value will be recognised in the statement of financial activities. Investment gains and losses, whether realised or unrealised, are combined and shown in the heading “Net gains/(losses) on investments” in the statement of financial activities. The charity does not acquire put options, derivatives or other complex financial instruments.

k) Debtors

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

l) Cash at bank and in hand

Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

22

Community of St Mary at the Cross

Notes to the financial statements

For the year ended 30 June 2022

1 Accounting policies (continued)

m) Creditors and provisions

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

n) Pension

Auto-enrolment for pensions are held the scheme with a company called Smart Pension (Market Rated) and pay government minimum 3%. The employees have an opt out period of 8 or 12 weeks before their own contribution % is taken – this is reflected in their payroll at the end of the opt out period by a larger deduction to the pension scheme.

2 Income from donations and legacies

Income from donations and legacies
Donations 2022
Total
£
29,402		 2021
Total
£
115,740
29,402 115,740

Within Donations for 2022, £10,000 ( 2021:£100,000) was restricted and £19,402 (2021:£15,740) was unrestricted.

23

Community of St Mary at the Cross

Notes to the financial statements

For the year ended 30 June 2022

3a Analysis of expenditure (current year)

Staff costs
Other staff costs
Investment manager's fees
Legal and professional
Auditor's remuneration
Accountancy
Repairs and maintenance
Rates
Depreciation
Office costs
Housekeeping
Gifts and donations
Travel and motor expenses
Catering
Other expenses
Light and heat
Bank charges
Medical expenses
Governance costs
Total expenditure 2022
Total expenditure 2021		 Cost of
raising funds
£
-
-
57,493
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 Charitable activities Charitable activities Governance
costs
£
-
-
-
-
10,680
-
-
-
-
-
-
-
-
-
-
-
-
-		 2022
Total
£
1,771,078
19,005
57,493
80,683
10,680
31,042
97,890
4,674
62,788
88,636
38,321
5,686
7,014
176,115
10,913
181,380
487
78,116		 2021
Total
£
388,684
8,898
51,641
1,399,534
10,300
28,185
93,083
4,609
59,253
45,480
18,936
6,520
5,859
177,672
28,740
37,396
318
98,182
Convent
£
-
-
-
46,271
-
18,100
61,542
4,674
21,699
16,960
25,985
5,686
4,589
-
419
31,587
382
15,466		 Care Home
£
1,771,078
19,005
-
34,412
-
12,942
36,348
-
41,091
71,674
12,336
-
2,425
176,115
10,494
149,793
105
62,650
57,493
226		 253,360
998		 2,400,468
9,456		 10,680
(10,680)		 2,722,001
-		 2,463,290
-
57,719 254,358 2,409,924 - 2,722,001 2,463,290
51,858 239,927 2,171,505 2,463,290

24

Notes to the financial statements

For the year ended 30 June 2022

3b Analysis of expenditure (prior year)

Charitable activities

Staff costs
Other staff costs
Investment manager's fees
Legal and professional
Auditor's remuneration
Accountancy
Repairs and maintenance
Rates
Depreciation
Office costs
Housekeeping
Gifts and donations
Travel and motor expenses
Catering
Other expenses
Light and heat
Bank charges
Medical expenses
Governance costs
Total expenditure 2021		 Cost of
raising funds
£
-
-
51,641
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 Convent
£
-
-
-
29,100
-
18,865
61,565
4,609
24,530
12,452
18,936
6,520
5,859
4,909
19,853
13,953
318
17,455		 Care Home
£
388,684
8,898
-
1,370,434
-
9,320
31,518
-
34,723
33,028
-
-
-
172,763
8,887
23,443
-
80,727		 Governance
costs
2021
Total
£
£
-
388,684
-
8,898
-
51,641
-
1,399,534
10,300
10,300
-
28,185
-
93,083
-
4,609
-
59,253
-
45,480
-
18,936
-
6,520
-
5,859
-
177,672
-
28,740
-
37,396
-
318
-
98,182
10,300
2,463,290
(10,300)
-
-
2,463,290
51,641
217		 238,924
1,003		 2,162,425
9,080
51,858 239,927 2,171,505

25

Community of St Mary at the Cross

Notes to the financial statements

For the year ended 30 June 2022

This is stated after charging / (crediting):

This is stated after charging / (crediting):
2022 2021
£ £
Depreciation 62,788 59,255
Loss on disposal of Fixed Assets - 165
Operating lease payments 392 392
Auditor's remuneration (excluding VAT):
Audit 8,900 8,500
Other services 6,200 5,900

Staff costs were as follows:

Staff costs were as follows:
Social security costs
Employer’s contribution to defined contribution pension schemes
Agency staff costs
Salaries and wages		 2022
£
1,347,229
131,661
30,849
261,339		 2021
£
289,288
26,421
6,502
66,473
1,771,078 388,684

Prior year figures are only 3 months from bringing payroll in house from April 2021.

One employee earned between £70,000 and £79,999 during the year (2021: £nil).

The total employee benefits (including pension contributions and employer's national insurance) of the key management personnel were £86,402 (2021: £19,095).

The charity trustees were not paid nor received any other benefits from employment with the charity in the year (2021: £nil). No charity trustee received payment for professional or other services supplied to the charity (2021: £nil).

No trustee received any expenses in the years 2022 or 2021.

6 Staff numbers

The average number of employees (head count based on number of staff employed) during the year was 51 (2021: 47). All staff were employed in relation to the activities of the care home.

Staff are split across the activities of the charity as follows:

Staff are split across the activities of the charity as follows:
Care Home
Governance
Raising funds
Convent		 2022
No.
-
1.0
50.0
-		 2021
No.
-
1.0
46.0
-
51.0 47.0

26

Community of St Mary at the Cross

Notes to the financial statements

For the year ended 30 June 2022

7 Related party transactions

There are no related party transactions to disclose for 2022 (2021: none).

There are no donations from related parties which are outside the normal course of business and no restricted donations from related parties.

8 Taxation

The charity is exempt from corporation tax as all its income is charitable and is applied for charitable purposes.

9 Tangible fixed assets

Tangible fixed assets
Disposals in year
Disposals in year
Cost
Depreciation
Net book value
At the end of the year
At the end of the year
At the start of the year
Charge for the year
At the start of the year
Additions in year
At the end of the year
At the start of the year		 Freehold
property
£
5,028,466
-
-		 Freehold
property
improvements
£
-
66,583
-		 Fixtures,
fittings and
equipment
£
278,408
8,632
(97,964)		 Motor vehicles
£
51,658
-
-		 Total
£
5,358,532
75,215
(97,964)
5,028,466 66,583 189,076 51,658 5,335,783
243,308
36,994
-		 -
-
-		 212,701
24,739
(97,964)		 47,685
1,055
-		 503,694
62,788
(97,964)
280,302 - 139,476 48,740 468,518
4,748,164 66,583 49,600 2,918 4,867,265
4,785,158 - 65,707 3,973 4,854,838

Land with a value of £1,225,000 (2021: £1,225,000) is included within freehold property and not depreciated.

The freehold property, other than the property in Bognor Regis, was externally valued at 30 June 2015 by Reeves & Partners, Chartered Surveyors. The Care home and the Nuns accommodation and retreat house were valued at market value, which is now considered to be the historic cost. The chapel and cloister were valued at depreciated replacement cost. No revaluation is undertaken.

All of the above assets are used for charitable purposes.

27

Community of St Mary at the Cross

Notes to the financial statements

For the year ended 30 June 2022

Listed investments
Fair value at the end of the year
Historic cost at the end of the year
Net (loss)/gain on change in fair value
Shares listed on the London Stock Exchange
Investments comprise:
Disposal proceeds
Cash
Cash held by investment broker pending reinvestment
Fair value at the start of the year
Additions at cost		 2022
£
12,437,559
8,681,698
(9,836,057)
(1,041,303)		 2021
£
11,798,046
1,660,779
(1,923,387)
902,121
10,241,897
1,028,915		 12,437,559
247,402
11,270,812 12,684,961
11,061,475 11,900,597
2022
£
10,241,897
1,028,915		 2021
£
12,437,559
247,402
11,270,812 12,684,961

Since the year end the investment value has increased by 1.67% to £11,458,262 as at 28 February 2023, compared the the year end figure of £11,270,812.

Debtors
Tax and Social Security
Other creditors
Trade debtors
Accruals
Trade creditors
Creditors: amounts falling due within one year
Accrued income
Other debtors
Prepayments		 2022
£
274,662
344
22,996
10,868		 2021
£
271,620
344
12,913
31,525
308,870 316,402
2022
£
29,386
30,775
72,727
6,676		 2021
£
71,028
26,557
37,764
5,868
139,564 141,217

28

Community of St Mary at the Cross

Notes to the financial statements

For the year ended 30 June 2022

13a Analysis of net assets between funds (current year)

13b
Analysis of net assets between funds (prior year)
14a
At 1 July 2021
£
17,822
6,325
2,872
-
92,000
-
119,019
Revaluation Reserve
536,962
General funds
17,430,580
17,967,542
18,086,561
Restricted fund
Barnet Council - Infection Control
Fund and Covid
Barnet Council - Rapid Testing funding
Raili Lappalainen
Tangible fixed assets
Investments
Net assets at 30 June 2022
Investments
Net current assets
Net assets at 30 June 2021
Total funds
Total unrestricted funds
Movements in funds (current year)
Prior Simon
PPE funding
Total restricted funds
Tangible fixed assets
Net current assets
Barnet Council - Workforce Grant		 13b
Analysis of net assets between funds (prior year)
14a
At 1 July 2021
£
17,822
6,325
2,872
-
92,000
-
119,019
Revaluation Reserve
536,962
General funds
17,430,580
17,967,542
18,086,561
Restricted fund
Barnet Council - Infection Control
Fund and Covid
Barnet Council - Rapid Testing funding
Raili Lappalainen
Tangible fixed assets
Investments
Net assets at 30 June 2022
Investments
Net current assets
Net assets at 30 June 2021
Total funds
Total unrestricted funds
Movements in funds (current year)
Prior Simon
PPE funding
Total restricted funds
Tangible fixed assets
Net current assets
Barnet Council - Workforce Grant		 Restricted
£
-
-
71,064		 Revaluation
reserve
£
-
(819,578)
-		 General
unrestricted
£
4,867,265
12,090,390
477,120		 Total funds
£
4,867,265
11,270,812
548,184
71,064 (819,578) 17,434,775 16,686,261
Restricted
£
-
-
119,019		 Revaluation
reserve
-
536,962
-		 General
unrestricted
£
4,854,838
12,147,999
427,743		 Total funds
£
4,854,838
12,684,961
546,762
119,019 536,962 17,430,580 18,086,561
Income and
gains
£
30,809
-
-
12,591
-
10,000		 Expenditure
and losses
£
(33,567)
(6,325)
(2,872)
(12,591)
(36,000)
(10,000)		 Transfers
£
-
-
-
-
-
-		 At 30 June
2022
£
15,064
-
-
-
56,000
-
119,019 53,400 (101,355) - 71,064
536,962
17,430,580		 -
2,309,604		 (1,041,303)
(2,620,646)		 (315,237)
315,237		 (819,578)
17,434,775
17,967,542 2,309,604 (3,661,949) - 16,615,197
18,086,561 2,363,004 (3,763,304) - 16,686,261

29

Community of St Mary at the Cross

Notes to the financial statements

For the year ended 30 June 2022

14b Movements in funds (prior year)

Revaluation Reserve
General funds
Restricted fund
Barnet Council - Infection Control
Barnet Council - Rapid Testing funding
Barnet Council - Workforce Grant
Barnet Council - other
Raili Lappalainen
Total restricted funds
Total unrestricted funds
Total funds		 At 30 June
2020
£
-
-
-
-
-		 Income and
gains
£
54,694
8,855
2,872
14,052
100,000		 Expenditure
and losses
£
(50,924)
(2,530)
-
-
(8,000)		 Transfers
£
-
-
-
-
-		 At 30 June
2021
£
3,770
6,325
2,872
14,052
92,000
- 180,473 (61,454) - 119,019
(594,537)
18,005,123		 902,121
2,056,671		 -
(2,401,836)		 229,378
(229,378)		 536,962
17,430,580
17,410,586 2,958,792 (2,401,836) - 17,967,542
17,410,586 3,139,265 (2,463,290) - 18,086,561

Purposes of restricted funds

Barnet Council - Infection Control Funding provided to HNH for support with the additional costs on the carehome due to Covid.

Barnet Council - Rapid Testing funding provided to HNH to contribute to the addtion costs around testing for Covid.

Barnet Council - Workforce Grant, provided to HNH to assit with the additional workforce demands due to Covid.

Barnet Council - other funding provided to HNH to help the carehome continue in lite of the pandemic.

Raili Lappalainen - funding given to fund care for specific residents.

15 Operating lease commitments

The charity's total future minimum lease payments under non-cancellable operating leases is as follows for each of the following periods:

periods:
Less than 1 year
1 - 5 Years		 2022
2021
£
£
392
392
-
392
392
784
Equipment
392 784

16 Legal status of the charity

The Charity consists of two charities forming part of a charitable association, namely the Community of St Mary at the Cross and the Trust Property. Both are registered with the Charity Commission under registered charity no. 209261. The Community of St Mary at the Cross has no income or any assets. All reported income and assets are that of the Trust Property.

30