Company registration number: 479317 Charity registration number: 221617
## **THE SOCIETY OF THE SALUTATION OF MARY THE VIRGIN LIMITED (A COMPANY LIMITED BY GUARANTEE)**
**COUNCILLORS’ REPORT AND ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2020**
## INDEX
|Page|1-5|Trustees’ report|
|---|---|---|
||6|Councillors’ responsibilities|
||7-10|Independent Auditors’ report|
||11|Statement of financial activities 2020|
||12|Statement of financial activities 2019|
||13|Balance sheet|
||14-22|Notes to the accounts|
1
## **THE SOCIETY OF THE SALUTATION OF MARY THE VIRGIN LIMITED**
## **TRUSTEES’ REPORT**
## **A. Reference and administrative information**
The Charity is a company limited by guarantee, incorporated 9th March 1950 certificate number 479317; charity registration number 221617.
The Trustees of the Charity are the Councillors of the Society ( _see also ‘C’ below_ ). The Councillors who served during the year were:
Thomas Gregory Quin Mossman Roueché Michael Edward Tavinor Philip Dulson Sally Anne Paley Alison Jacquelyn Fry
The financial officers of the Charity during 2020 were:
Thomas Quin (trustee) Philip Dulson (trustee) Michaël Brossard.
_Definitions: “Members” refers to Members of the Society, bound by its Articles of Association; “members” of any other body are given a lower-case ‘m’ and the relevant body is mentioned in the text. “Abbey” or “monastery” are synonymous and refer either to the functional property of the Charity or to the Community resident at that property, whose worship and hospitality provide the public benefit. “Order” refers to the Benedictine Order of which this abbey and its members are a part; however this abbey is autonomous, legally and financially_
Functional Property: Mucknell Abbey, Mucknell Farm Lane, Stoulton, Worcs., WR7 4RB. Auditors: Critchleys Audit LLP, Chartered Accountants, Beaver House, 23-38 Hythe Bridge Street, Oxford, OX1 2EP (also the registered address of the Charity).
Bankers: Barclays Bank plc, West Oxfordshire Group, 30 Market Square, Witney, Oxon, OX8 7BJ.
Investment Managers: Charles Stanley Stockbrokers, Willow Court, West Way, Minns Business Park, Oxford OX2 0JB.
Solicitors: Darbys Solicitors LLP, 52 New Inn Hall St, Oxford OX1 2DN.
## **B. Objectives and Activities**
In accordance with the Memorandum of Association, the principal object of the Charity is the advancement of the Christian Religion and the promotion of its practice, primarily by maintaining the life of a Benedictine Religious Community.
Since 1952 the Members have pursued this object by maintaining the Benedictine monastic life, within the Church of England; the majority of Members are also members of the Order, living the Religious Life under Vows according to the Rule of St Benedict, at Mucknell Abbey. In accordance with this Rule, public Christian worship is offered several times daily throughout the year, pastoral counsel is offered (to those who seek it) and hospitality (including Quiet Days and Retreats) is given; these constitute the most visible forms of **public benefit.** Some external engagements such as preaching, the conducting of services, teaching days or Retreats elsewhere, are also undertaken.
2
## **THE SOCIETY OF THE SALUTATION OF MARY THE VIRGIN LIMITED**
## **TRUSTEES’ REPORT (CONTINUED)**
Hospitality is an important part of the Benedictine monastic tradition. People of all ages and from all walks of life, from a variety of religious backgrounds and none, have discovered Benedictine monasteries to be places of restoration, reconciliation and peace, and many look to members of this Community for friendship and spiritual guidance. They value the opportunity the monastery affords for quiet and reflection. Grounds are maintained in ways that foster this atmosphere, and to allow guests, visitors and local residents to enjoy their unspoilt quiet.
The bulk of the work of the Charity is carried out by volunteers, indeed the members of the Order make over any income they might receive to the Charity. Voluntary help is provided by some members of the Friends Association (the informal support group who raise funds for the Charity and publicise its work) who help with the administration of the Friends and the organisation of Friends’ events. The Councillors (Directors/Trustees) give their time and expertise on a voluntary basis.
## **C. Structure, Governance and Management**
**The Council** consists of some members of the Order and some lay persons (two currently) co-opted onto the Council for their particular expertise and appreciation of the objects of the Charity. The Council meets at least twice each calendar year. The Articles of Association provide for retirement of Councillors in rotation; new Councillors are co-opted by the continuing Councillors until the next AGM when they must stand for election by the Members.
Induction of Councillors who are members of the Order is by the system of monastic formation (training) which involves living and learning the life under supervision for a minimum of five years. Members of the Order become Members of the Society before being eligible for Council and thus have previous exposure to the work of the Council. Lay persons on the Council are inducted into the particular work and needs of the Charity by those Councillors who are members of the Order. Councillors are regularly referred to the guidance put out by the Charity Commission.
The Charity's **Risk assessment** and **Fire Risk assessment** policies remain under regular review.
**Financial risk** comprises investment risks and fraud risks. The statement of investment policy covers the following: manager, liquidity, political, custodial, currency, market and inflation risks. Most of these are addressed by employing professional investment managers, whose performance is regularly reviewed, and agreeing appropriate risk levels, asset allocation and diversification. This year has seen currency and market volatility owing to political uncertainty and international tensions: these are being monitored by the Council and kept under discussion with the investment managers. The risk of fraud is mitigated by a double-signature requirement for all significant payments, professional accounting software and material locks as well as password protection in IT; internet banking is only used for the Friends accounts.
**Property risk** affects the functional property of the Charity and all the furnishings and equipment used there. This is largely addressed by a schedule of inspections, from the architects’ Quinquennial (last made November 2015 – next planned April 2021) to regular observational checks on roof slates, maintenance contracts on all significant equipment, and a bespoke insurance policy designed with the particular needs of Religious Communities in mind.
**Reputation risk** comprises products and care for guests. While the Charity does not set out to work with young people or vulnerable adults, some retreatants or visitors might be so described: in any case the Charity has a written **Safeguarding policy** which matches all the objects and requirements of the wider Church of England Safeguarding instruments. As a consequence of this, all the members of the Order attended a Safeguarding training day in November 2018 and the safeguarding officer has attended further information and training days organised centrally by the Church of England and/or the Methodist Church of Great Britain.
3
## **THE SOCIETY OF THE SALUTATION OF MARY THE VIRGIN LIMITED**
## **TRUSTEES’ REPORT (CONTINUED)**
Product quality is checked by the use in-house of our own products, and Product liability insurance is held in regard to products sold.
In the area of Risks to the Charity’s beneficial activities, apart from the risks and responses detailed above, guest and visitor statistics are kept so that years may be compared, and the guest wing is kept in good order. 2020 saw the opening of Worcestershire Parkway station one mile from the monastery; while this has the benefit of promising easier transport links for visitors and Community members alike, there is a risk that noise and local land development may in time make the monastery a less attractive place for people to come on Retreat. This has not proved a problem for existing urban monasteries but, as proposals are developed, some trustees have attended local stakeholder meetings, discussed plans with the local Parish Council and begun engagement with the District Council.
Brexit now poses a risk to the welcoming of Alongsiders from EU countries, since any such candidates would become subject to all the immigration rules currently affecting those from further afield
In accordance with best practice there is also a written **health and safety policy** , which is reviewed at least annually.
## **D. Achievements and Performance**
The abbey constitutes the functional property of the Charity and was designed in order to provide suitable buildings for monastic life, accommodation for guests on Retreat, and a more sustainable way of life which - by incorporating appropriate 'green' technologies - reduces the Charity’s carbon footprint. Maintenance work was carried out during the year with the advice of Acanthus Clews: several issues have been addressed successfully but there is still trouble with some window embrasures on the south side. Meanwhile work continues in the grounds to enhance their amenity and conservation value.
The Community has struggled to maintain all its beneficial activities due to the covid pandemic. Worship has continued without break – except that for much of the year government restrictions forbade public attendance; the small size of the oratory and its position within the monastery made social distancing difficult . After two normal months, from March onwards the number of guests was almost zero due to the lockdowns and other restrictions. The Community carried out a careful and rigorous risk assessment and was able to devise means to welcome safely some Quiet Day visitors in the late summer and autumn. Maintaining the practice of inviting people to live alongside the Community for a period of several months (i.e., longer than that ordinarily spent by a Retreatant), the Community welcomed two such persons, given covid-tests and selfisolation, to experience at a deeper level the Benedictine life and spiritual tradition during 2020.
Members of the Order continued to accept a few requests to minister outside the abbey when this was still permissible and could be effected in a safe manner. Much pastoral work which would have taken place on site was shifted to virtual meetings, and additional material was posted on the website. One Member has continued to serve as a representative of Religious Communities on the General Synod of the Church of England; and two other members of the Order serve on the House of Bishops Advisory Council for Religious Communities which regulates and assists all Church of England Religious Communities.
The Charity successfully registered as a Sponsor of Foreign Voluntary Workers in order to welcome a US citizen as an Alongsider. The effects of Brexit have not yet been significant for the Charity.
4
## **THE SOCIETY OF THE SALUTATION OF MARY THE VIRGIN LIMITED**
## **TRUSTEES’ REPORT (CONTINUED)**
## **E. Financial Review**
The financial statements alongside this report comply with the Charities Act 2011, the Companies Act 2006 and the ‘Accounting and Reporting by Charities: Statement of Recommended Practice’ applicable to charities in the UK and Republic of Ireland from 1 January 2015 under FRS 102.
The audited accounts show significant financial changes from last year. Guest donations fell by about 75% due to the lockdowns and Investment income by 23% due to the decrease in business activity and the consequent halting or reduction in dividends. However, supporters of the Charity responded to these conditions by doubling their voluntary contributions. At the same time, Members’ contributions (largely from pensions) increased, resulting in a net increase in Donations for the year. Sale of Work almost halved because of the reduction in visitors and the closure of churches across the nation. On the expenditure side, several categories showed some decrease owing to having fewer people on site and Members travelling very little outside, but overall expenditure only decreased by about 5%.
On Investments, the cash held is in an aggregated charity cash deposit which returns consistently higher than the 7-day LIBOR. The capital value of the investment portfolio, net of cash injected, rose by 7.3% (TR basis) outperforming the FTSE 100 (fell 14.3% for the Total Return) and outperforming the ‘RPI + 4%’ benchmark. While index benchmarks indicate the portfolio performance, or perhaps its asset allocation relative to the FTSE100 index, the ‘RPI + 4%’ benchmark relates to the costs of running the monastery.
'Donations received' include £99,598 of Community members' pensions and benefits made over to the Charity to provide for their living expenses (of which Trustees’ contributions were £59,095); other **major funding sources** during the year were investment income, donations, legacies which were more substantial than in 2019.
## **Financial Policy: Investments and Reserves**
Investment powers are described by the Charity's Memorandum of Association, and by the Trustee Investments Act 1961, with such amendments as given in the Charities Act 2011 and the Trustees Act 2000. The Council determines investment policy; to ensure that investment decisions are taken only by persons or organisations with the skills and resources necessary to take them effectively, the Council delegates routine investment decisions to investment managers. The investment performance, which aims at a long-term balance of overall capital and income growth, is reviewed at least twice each year. The Statement of Investment Policy (last revised in January 2020) addresses such parameters as asset allocation, performance benchmarks, suitability of investments and ethical criteria.
Although the Charity's assets are unrestricted, the investment portfolio is maintained in order to provide unearned income to enable the Members to continue doing the charitable work which does not generate income of itself.
The Council has monitored the property’s running costs and the returns on investments and has concluded that, since the current activities are dependent on the level of pensions made over to the Charity by Members, it is prudent to build up the **Reserves** as and when possible.
In accord with the policy of clarifying the accounts and the financial policy of the Charity, the Council now divides the Reserves (although these are neither permanent nor restricted) according to certain Designated Funds which represent future plans and needs. Three such Funds are allocated. The first is the Fabric Repair Fund which is an allocation for repair and maintenance; while the functional property is quite newly built or refurbished, the Council has become aware of some unsatisfactory workmanship and in any case must prepare for long term care, and therefore decided to state this Fund at 15% of construction costs, with
5
## **THE SOCIETY OF THE SALUTATION OF MARY THE VIRGIN LIMITED**
## **TRUSTEES’ REPORT (CONTINUED)**
subsequent increases by inflation and decreases according to Major Repair expenditure. The second is the Future Care Fund which is a provision for the cost of residential care of elderly Members should they need it towards the end of their lives: this cost has been a sudden and considerable addition to costs in the history of the Community and is set to cover local care costs for two persons for six years, with annual uplift for inflation. The third is the Opportunity Fund: when the design for Mucknell Abbey was agreed by the Council, planning and cost constraints determined which facilities for retreatants and visitors might be provided, and the emphasis was on the core needs of those coming to the abbey for residential retreats; this fund represents an approximate cost of providing further facilities on site or in the vicinity should the size of the Community and the skills it can offer increase. The Opportunity Fund also provides one source for major expenditure which may be necessitated by the development of the proposed new town around the monastery.
The principal material asset of the Charity has long been its functional property. The book value of Land and Buildings, in the balance sheet, represents the purchase cost of Mucknell Farm and the building additions to date, less depreciation.
## **F. Plans for Future Periods**
The principal plan and hope for the monastery is the maintenance of daily worship and a return – when safe - to something like the pre-pandemic pattern of pastoral work and hospitality. Until then, a cautious budget and stringent safety precautions will be followed.
Since moving to Mucknell, the monastic Community has received 28 Alongsiders, of whom nine have joined the Community as novices and three of these have since made their monastic Life Profession and become Members of the Society. Increasing numbers strengthen the Benedictine life, enhance the public worship and enable the Society to provide more hospitality and spiritual accompaniment.
The evolution of the South Worcestershire Development Plan will undoubtedly affect future plans and may prompt pastoral work with more local residents as well as retreatants from further away. Some building work is anticipated during 2021/2 following our Quinquennial Inspection, due in the spring of 2021.
6
## **THE SOCIETY OF THE SALUTATION OF MARY THE VIRGIN LIMITED**
## **TRUSTEES’ REPORT (CONTINUED)**
## **COUNCILLORS’ RESPONSIBILITIES**
The Councillors (who are also directors of the Society for the Salutation of Mary the Virgin Limited) for the purposes of company law) are responsible for preparing the Trustees’ Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company law requires the Councillors to prepare financial statements for each financial year, which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP (FRS 102);
- make judgements and estimates that are reasonable and prudent;
- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in operation.
##
The Councillors are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
In accordance with company law, the Councillors, as the company’s directors, certify that:
- so far as we are aware, there is no relevant audit information of which the company’s auditors are unaware; and
- as the directors of the company we have taken all the steps that we ought to have taken in order to make ourselves aware of any relevant audit information and to establish that the charity’s auditors are aware of that information.
Approved by Council and signed on their behalf on …………….. by: 07.05.21
………………………………………………..
T G Quin (Director/Trustee)
7
## **INDEPENDENT AUDITORS’ REPORT**
## **TO THE TRUSTEES OF THE SOCIETY OF THE SALUTATION OF MARY THE VIRGIN LIMITED**
## **FOR THE YEAR ENDED 31 DECEMBER 2020**
## **Opinion**
We have audited the financial statements of The Society of the Salutation of Mary the Virgin Limited (the ‘charitable company’) for the year ended 31 December 2020 which comprise the statement of financial activities, balance sheet and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
- give a true and fair view of the state of the charitable company’s affairs as at 31 December 2020, and of its incoming resources and application of resources, for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Charities Act 2011.
## **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 ‘Auditors’ responsibilities for the audit of the financial statements’ section of our report. We are independent of the charitable company 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 the charitable company’s ability to continue as a going concern for a period of at least 12 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.
## **Other information**
The other information comprises the information included in the annual report, including the trustees’ 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.
8
## **INDEPENDENT AUDITORS’ REPORT**
## **TO THE TRUSTEES OF THE SOCIETY OF THE SALUTATION OF MARY THE VIRGIN LIMITED**
## **FOR THE YEAR ENDED 31 DECEMBER 2020**
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.
## **Opinions on other matters prescribed by the Companies Act 2006**
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the trustees’ report, which includes the directors’ report prepared for the purposes of company law, for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the directors’ report included within the trustees’ report has been prepared in accordance with applicable legal requirements.
## **Matters on which we are required to report by exception**
In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees’ report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 require us to report to you if, in our opinion:
- adequate and proper accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of trustees’ remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit; or
- the trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies’ exemptions in preparing the trustees’ report and from the requirement to prepare a strategic report.
## **Responsibilities of trustees**
As explained more fully in the trustees’ responsibilities statement set out on page 6, the trustees are responsible for the preparation of 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.
9
## **INDEPENDENT AUDITORS’ REPORT**
## **TO THE TRUSTEES OF THE SOCIETY OF THE SALUTATION OF MARY THE VIRGIN LIMITED**
## **FOR THE YEAR ENDED 31 DECEMBER 2020**
## **Auditors’ responsibilities for the audit of the financial statements**
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
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 is detailed below:
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
- the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
- we identified the laws and regulations applicable to the charitable company through discussions with directors/trustees and other management, and from our knowledge and experience of the client’s sector;
- we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the charitable company;
- we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management; and
- identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
We assessed the susceptibility of the charitable company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud;
- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and
To address the risk of fraud through management bias and override of controls, we:
- performed analytical procedures to identify any unusual or unexpected relationships;
- tested journal entries to identify unusual transactions;
- assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias;
10
## **INDEPENDENT AUDITORS’ REPORT**
## **TO THE TRUSTEES OF THE SOCIETY OF THE SALUTATION OF MARY THE VIRGIN LIMITED**
## **FOR THE YEAR ENDED 31 DECEMBER 2020**
- investigated the rationale behind significant or unusual transactions.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
- agreeing financial statement disclosures to underlying supporting documentation;
- reading the minutes of meetings of those charged with governance;
- enquiring of management as to actual and potential litigation and claims;
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance.
Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors/trustees and other management and the inspection of regulatory and legal correspondence, if any.
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditors responsibilities.
This description forms part of our auditor’s report
## **Use of our report**
This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an 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 charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
Robert Kirtland, Senior Statutory Auditor for and on behalf of Critchleys Audit LLP Statutory Auditors Beaver House 23 – 38 Hythe Bridge Street Oxford OX1 2EP
Date: 11 May 2021
11
## **THE SOCIETY OF THE SALUTATION OF MARY THE VIRGIN LIMITED**
## **STATEMENT OF FINANCIAL ACTIVITIES (INCLUDING INCOME AND EXPENDITURE ACCOUNT) YEAR ENDED 31 DECEMBER 2020**
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
|**Income from**
**Donations and legacies:**
Donations
Legacies
**Other trading activities**
**Investments:**
Dividend income
Interest received
**Other income**
**Total income**
**Expenditure on**
**Cost of raising funds:**
Fundraising trading: cost of goods sold
Investment management costs
**Expenditure on charitable**
**activities:**
Donations made
Abbey (religious community)
**Total expenditure**
**Net income/(expenditure) before**
**gains and losses on investment:**
Gains/(losses) on investments
**Net income/(expenditure)**
**Transfers between funds**
**Net movement in funds**
**Funds brought forward**
**Funds carried forward**|**Unrestricted**
**General Designated Restricted**
**£**
**£**
**£**
175,620
- 3,913
20,332
-
-
12,414
-
-
88,556
-
-
3,230
-
-
6,615
-
-
306,767
-
3,913
4,998
-
-
12,787
-
-
4,045
-
-
178,600
157,886
423
200,430
157,886
423
106,337
(157,886) 3,490
229,258
-
-
335,595
(157,886) 3,490
(8,101)
8,101
-
327,494
(149,785)
3,490
1,989,579
7,883,883
1,882
2,317,073
7,734,098
5,372|**Unrestricted**
**General Designated Restricted**
**£**
**£**
**£**
175,620
- 3,913
20,332
-
-
12,414
-
-
88,556
-
-
3,230
-
-
6,615
-
-
306,767
-
3,913
4,998
-
-
12,787
-
-
4,045
-
-
178,600
157,886
423
200,430
157,886
423
106,337
(157,886) 3,490
229,258
-
-
335,595
(157,886) 3,490
(8,101)
8,101
-
327,494
(149,785)
3,490
1,989,579
7,883,883
1,882
2,317,073
7,734,098
5,372|**2020**
**Total**
**£**
179,533
20,332
12,414
88,556
3,230
6,615
310,680
4,998
12,787
4,045
336,909
358,739
(48,059)
229,258
181,199-
-
181,199
9,875,344
10,056,543|**2019**
**Total**
**£**
163,519
4,500
21,234
116,665
2,073
8,088
316,079
9,177
13,095
4,013
346,466
372,751
(56,672)
451,959
395,287
-
395,287
9,480,057
9,875,344|
|---|---|---|---|---|
|||-
-
-
423|||
|||423|||
|||3,490
-
3,490
-
3,490|||
|||
1,882|||
|||
5,372|||
12
## **THE SOCIETY OF THE SALUTATION OF MARY THE VIRGIN LIMITED**
## **STATEMENT OF FINANCIAL ACTIVITIES (INCLUDING INCOME AND EXPENDITURE ACCOUNT) YEAR ENDED 31 DECEMBER 2019**
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
|**Income and endowments**
**Donations and legacies:**
Donations
Legacies
**Income from other trading activities**
**Income from investments:**
Dividend income
Interest received
**Other income**
**Total income**
**Expenditure on**
**Cost of raising funds:**
Fundraising trading: cost of goods sold
Investment management costs
**Expenditure on charitable**
**activities:**
Donations made
Abbey (religious community)
**Total expenditure**
**Net income/(expenditure) before**
**gains and losses on investment:**
Gains/(losses) on investments
**Net income/(expenditure)**
**Transfers between funds**
**Net movement in funds**
**Funds brought forward**
**Funds carried forward**|**Unrestricted**
**General Designated Restricted**
**£**
**£**
**£**
161,287
-
2,232
4,500
-
-
21,234
-
-
116,665
-
-
2,073
-
-
8,088
-
-
313,847
-
2,232
9,177
-
-
13,095
-
-
4,013
-
-
188,230
157,886
350
214,515
157,886
350
99,332
(157,886)
1,882
451,959
-
-
551,291
(157,886)
1,882
2,130
(2,130)
-
553,421
(160,016)
1,882
1,436,158
8,043,899
-
1,989,579
7,883,883
1,882|**2019**
**Tota**
**£**
163,519
4,500
21,234
116,665
2,073
8,088
316,079
9,177
13,095
4,013
346,466
372,751
(56,672)
451,959
395,287
-
395,287
9,480,057
9,875,344
|**2018**
**Total**
**£**
153,307
12,942
15,613
115,838
1,474
13,408
312,582
10,984
10,685
4,053
341,786
367,508
(54,926)
(202,547)
(257,473)
-
(257,473)
9,737,530
9,480,057|
|---|---|---|---|
13
## **THE SOCIETY OF THE SALUTATION OF MARY THE VIRGIN LIMITED**
|**(Company registration number: 479317)**
**BALANCE SHEET**
**AT 31 DECEMBER 2020**
**2020**
**Note**
**£**
**Fixed Assets**
Intangible assets
Tangible assets
6
7
1,026
5,697,686
Investments
8
3,918,594
9,617,306
**Current Assets**
Debtors
9
9,492
Cash in bank and in hand
533,054
542,546
**Creditors:**Amounts falling due within one year
10
(8,656)
**Net current assets**
533,890
**Total assets less current liabilities**
10,151,196
**Creditors:**falling due after more than one year
11
(94,653)
**Net Assets**
10,056,543
**Reserves**
Designated funds
12
7,734,098
General revenue
2,317,073
Restricted funds
5,372
**Total Funds**
10,056,543|**2019**
**£**
2,052
5,847,460
3,551,440
9,400,952
9,449
568,546
577,995
(8,950)
569,045
9,969,997
(94,653)
9,875,344
7,883,883
1,989,579
1,882
9,875,344|
|---|---|
The notes on pages 14 to 22 form part of these accounts.
These accounts were approved and authorised for issue by the Council on ………………….and signed on their behalf by: 07/05/21
…………………………………………………………………..
Thomas Gregory Quin (Trustee)
14
## **THE SOCIETY OF THE SALUTATION OF MARY THE VIRGIN LIMITED NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2020**
## **1 ACCOUNTING POLICIES**
- The following accounting policies have been used consistently in dealing with items which are considered material in relation to the company’s accounts:
## a) **BASIS OF ACCOUNTING**
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) and the Companies Act 2006.
SSMV 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(s).
The financial statements have been prepared on a going concern basis. The trustees consider that there are no material uncertainties about the charity’s ability to continue as a going concern.
## b) **INCOME**
Income is generally recognised on a receivable basis and reported gross of related expenditure, where the amounts are reasonably certain and when there is adequate certainty of receipt.
The following specific policies are applied to particular categories of income:
- Donations are included in full in the Statement of Financial Activities when receivable. Gift Aid recoverable is accounted for in the same period as the related donation.
- Legacies are recognised as income only when the charity becomes entitled to the income, receipt is certain and the amount concerned is measurable.
- Grants, where entitlement is not conditional on delivery of a specific performance by the charity, are recognised when the charity becomes unconditionally entitled to the grant.
- Income from activities for generating funds consists of income from sale of work, which is recognised when earned.
- Investment income is accounted for when receivable.
## c) **EXPENDITURE**
Expenditure is accounted for on an accruals basis and gross of any related income. They are classified under headings that aggregate all costs related to the category. Where costs cannot be directly attributed to particular headings, they have been allocated to activities on a basis consistent with use of the resources.
- Costs of generating funds comprise the costs associated with income generation via sale of work and costs associated with the investment portfolio.
- Charitable expenditure comprises direct expenditure including direct staff costs attributable to activities. Where costs cannot be directly attributed, they have been allocated to activities on a basis consistent with the use of resources.
- Governance costs include those costs, such as statutory audit and legal and professional fees, associated with constitutional and statutory requirements
- d) **RESTRICTED FUNDS** Where a donor has specified a particular purpose for a donation, the income is shown as restricted income in the Statement of Financial Activities. Any such income unexpended at the year end is shown as a restricted fund in the balance sheet. Any expenditure in anticipation of restricted income is carried forward as a negative balance on the restricted fund.
15
## **THE SOCIETY OF THE SALUTATION OF MARY THE VIRGIN LIMITED NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2020 (CONTINUED)**
## e) **UNRESTRICTED & DESIGNATED FUNDS**
**The Fabric Repair Fund** is a designated reserve established to cover repairs and maintenance costs anticipated in the long term care of Mucknell Abbey. Council has initially set this Fund at 15% of reconstruction costs.
**The Future Care Fund** is a provision for residential care of elderly members should they need it. This is currently set at a level to cover estimated local care costs for two persons for six years.
**The Opportunity Fund** is a designated reserve representing an approximate cost of providing further facilities should the size of the Community and the skills it can offer continue to increase.
**Abbey Property** represents the historic cost (as subsequently depreciated) of the functional property and fixtures and fittings of the Charity and therefore does not represent funds available for expenditure on general charitable purposes.
**General Unrestricted Funds** represents all other unrestricted funds.
## f) **INTANGIBLE FIXED ASSETS AND AMORTISATION**
Intangible fixed assets are stated at historical cost less accumulated amortisation. Amortisation is provided on a straight line basis over the estimated useful life. The useful economic life of the website is 4 years.
## g) **TANGIBLE FIXED ASSETS AND DEPRECIATION**
Tangible fixed assets are stated at historical cost less depreciation. Depreciation is provided using various bases and rates which reflect the anticipated useful lives of the various assets and their estimated residual values.
Depreciation is charged on the following bases:
Land and buildings 50 years straight line Motor vehicles 4 years straight line Fixtures and fittings 10 years straight line Furniture and equipment 5 years straight line
Where the recoverable amount of a fixed asset is found to be below its net book value, the asset is written down to the recoverable amount and the loss on impairment is recognised in the SOFA.
## h) **INVESTMENTS**
Investments are shown at mid-market value as at the year-end. Movements in value are shown in the income and expenditure account and allocated to the capital surplus account.
## i) **DOWRY MONIES**
Dowry monies received are treated as long term, interest free loans, held within creditors on the balance sheet.
16
## **THE SOCIETY OF THE SALUTATION OF MARY THE VIRGIN LIMITED NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2020 (CONTINUED)**
|**2**
**Surplus/deficit on ordinary activities**
Surplus/deficit is stated after charging:
Amortisation
Depreciation
Auditors’ remuneration - audit
Auditors’ remuneration – non audit
Donations made
(Profit)/Loss on sale of assets
**3**
**Income**
Members’ contributions
Visitors’ contributions
General donations
Targeted donations
Pastoral donations
Friends donations
Legacies
Sale of work
Investment income
Other restricted income
Other receipts
**4**
**Expenditure**
**Costs of raising funds**
Fundraising trading (cost of goods sold)
Investment management costs
**Expenditure on charitable activities**
Donations made
Abbey (religious community) general unrestricted
Abbey (religious community) designated
Abbey (religious community) restricted
Governance costs||**2020**
**£**
1,026
173,321
3,210
4,886
4,045
(2,650)
**2020**
**£**
98,958
13,963
34,956
5,681
1,481
20,581
20,332
12,414
91,786
3,913
6,615
310,680
**Amortisation &**
**Direct**
**Depreciation**
**£**
**£**
4,998
-
12,787
-
4,045
-
155,069
15,535
-
157,786
423
8,096
-
185,418
173,321|**2019**
**£**
1,026
168,560
3,100
6,406
4,013
-
**2019**
**£**
63,284
57,894
16,974
3,286
3,135
18,946
4,500
21,234
118,738
-
8,088
316,079
**Total**
**Total**
**2020**
**2019**
**£**
**£**
4,998
9,177
12,787
13,095
4,045
4,013
170,604
178,734
157,786
157,876
423
350
8,096
9,506
358,739
372,751|
|---|---|---|---|
Direct costs are those associated with providing a specific charitable activity.
17
## **THE SOCIETY OF THE SALUTATION OF MARY THE VIRGIN LIMITED**
## **NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2020 (CONTINUED)**
## **5 Staff and Trustees**
|Salaries and wages
There was one part time employee during the year (2019: One).|**Total**
**2020**
**£**
1,861|**Total**
**2019**
**£**
1,828|
|---|---|---|
Living expenses of those trustees and members of the charity’s key management personnel who are also members’ of the Order were borne by the charity during the year. However all members of the Order make over personal income to the charity [Members’ Contributions – see note 3]. Total donations received from members of the council in the year amounted to £59,905 (2019: £31,061).
No trustees received remuneration, reimbursement of expenses or other benefits in connection with their duties as trustees during the year.
## **6 Intangible Fixed Assets**
|**Intangible Fixed Assets**||
|---|---|
||**Website**|
||**£**|
|**Cost**||
|1 January 2020 and 31|4,104|
|December 2020||
|**Amortisation**||
|1 January 2020|2,052|
|Charge for the year|1,026|
|31 December 2020|3,078|
|**Net book value**||
|31 December 2020|1,026|
|31 December 2019|2,052|
18
## **THE SOCIETY OF THE SALUTATION OF MARY THE VIRGIN LIMITED**
## **NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2020 (CONTINUED)**
## **7 Tangible Fixed Assets**
|**Freehold land**
**and buildings**
**Fixtures and**
**fittings**
**£**
**£**
**Cost or valuation**
1 January 2020
7,169,316
185,000
Additions
-
-
Disposals
-
(2,000)
31 December 2020
7,169,316
183,000
**Depreciation**
1 January 2020
1,378,556
155,400
Charge for the year
139,386
18,400
On disposals
-
(2,000)
31 December 2020
1,517,942
171,800
**Net book value**
31 December 2020
5,651,374
11,200
31 December 2019
5,790,760
29,600|**Motor**
**vehicles**
**Furniture and**
**equipment**
**£**
**£**
23,800
72,920
20,068
3,479
(23,800)
(622)
20,068
75,777
23,800
45,820
4,402
11,133
(23,800)
(622)
4,402
56,331
15,666
19,446
-
27,100|**Total**
**£**
7,451,036
23,547
(26,422)|
|---|---|---|
|||
7,448,161
1,603,576
173,321
(26,422)|
|||
1,750,475
5,697,686|
|||5,847,460|
Freehold land and buildings comprise the Community’s monastery, known as Mucknell Abbey. This includes freehold land of £200,000 which is not depreciated.
|**8**|**Fixed Asset Investments**|**Unquoted**||**Quoted**|**Total**|
|---|---|---|---|---|---|
|||**investments**||**investments**|**investments**|
|||**£**||**£**|**£**|
||Market value at 1 January 2020|173,429||3,378,011|3,551,440|
||Additions at cost||-|323,527|323,527|
||Disposal proceeds||-|(174,544)|(174,544)|
||Cash movement||-|(11,087)|(11,087)|
||Movement in value in year|(5,899)||235,157|229,258|
||Market value at 31 December 2020|167,530||3,751,064|3,918,594|
Cost of investments £2,691,880 (2019: £2,575,693).
All investments are held for the purpose of generating an investment return for the charity.
At 31 December 2020 no single investment comprised more than 5% of the portfolio value
19
## **THE SOCIETY OF THE SALUTATION OF MARY THE VIRGIN LIMITED**
## **NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2020 (CONTINUED)**
|**9**
**Debtors**
Trade debtors
Prepayments and accrued income
Other debtors
**10**
**Creditors: Amounts falling due within**
**one year**
Accruals
**11**
**Creditors: Amounts falling due after**
**more than one year**
Interest free loans brought forward
New loans
Loans repaid
Interest free loans carried forward
|**2020**
**£**
450
5,785
3,257
9,492
**2020**
**£**
8,656
8,656
**2020**
**£**
94,653
-
-
94,653|**2019**
**£**
-
5,592
3,857
9,449
**2019**
**£**
8,950
8,950
**2019**
**£**
94,653
-
-
94,653|
|---|---|---|
20
## **THE SOCIETY OF THE SALUTATION OF MARY THE VIRGIN LIMITED**
## **NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2020 (CONTINUED)**
|**12**
**Funds 2020**
**General**
**unrestricte**
**d**
**£**
**Fabric Repairs**
**Fund**
**£**
**Future care**
**Fund**
**£**
**Opportunity**
**Fund**
**£**
**Abbey**
**Property**
**£**
**Total**
**Designated**
**£**
Funds brought forward
1,989,579
1,053,272
470,484
539,770
5,820,357
7,883,883
Income
306,767
-
-
-
-
-
Expenditure
(200,430)
-
-
-
(157,886)
(157,886 )
Net gains/(losses) on
investments
229,258
-
-
-
-
-
Transfers between fund
(8,101)
(4,022)
5,646
6,477
-
8,101
Funds carried forward
2,317,073
1,049,250
476,130
546,247
5,662,471
7,734,098
**Funds 2019**
**General**
**unrestricted**
**£**
**Fabric Repairs**
**Fund**
**£**
**Future care**
**Fund**
**£**
**Opportunity**
**Fund**
**£**
**Abbey**
**Property**
**£**
Funds brought forward
1,436,158
1,077,150
460,356
528,150
5,978,243
Income
313,847
-
-
-
-
Expenditure
(214,515)
-
-
-
(157,886)
Net gains/(losses) on investments
451,959
-
-
-
-
Transfers between funds
2,130
(23,878)
10,128
11,620
-
Funds carried forward
1,989,579
1,053,272
470,484
539,770
5,820,357|**Novice**
**Guardians**
**Fund**
**£**
**Guest Wing**
**Furniture**
**Fund**
**£**
**Total**
**restricted**
**funds**
**£**
**Total**
**Funds**
**£**
1,882
-
1,882
9,875,344
2,258
1,655
3,913
310,680
(423)
-
(423)
(358,739)
-
-
-
229,258
-
-
-
-
3,717
1,655
5,372
10,056,543
**Total**
**Designated**
**£**
**Restricted**
**Novice**
**Guardians**
**Fund**
**£**
**Total**
**Funds**
**£**
8,043,899
-
9,480,057
-
2,232
316,079
(157,886)
(350)
(372,751)
-
-
451,959
(2,130)
-
-
7,883,883
1,882
9,875,344|
|---|---|
21
## **THE SOCIETY OF THE SALUTATION OF MARY THE VIRGIN LIMITED**
## **NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2020 (CONTINUED)**
|**13**
**Analysis of net assets between funds**
**Restricted**
**Funds**
**£**
**Unrestricted**
**Funds**
**£**
Fund balances as 31 December 2020
are represented by:
Intangible fixed assets
-
1,026
Tangible fixed assets
-
5,697,686
Investments
-
3,918,594
Current assets
5,372
537,174
Current liabilities
-
(8,656)
Non-current liabilities
-
(94,653)
Total net assets
5,372
10,051,171|**Total**
**£**
1,026
5,697,686
3,918,594
542,546
(8,656)
(94,653)
10,056,453|
|---|---|
## **14 Related Party Transactions**
There were no related party transactions in the year (2019: no transactions) except for the Trustee transactions disclosed in note 5.
## **15 General information**
SSMV is a company limited by guarantee incorporated and domiciled in England. Its registered office address is Beaver House, 23-38 Hythe Bridge Street, Oxford OX1 2EP. Its principal place of business is Mucknell Abbey, Mucknell Farm Lane, Stoulton, Worcestershire, WF7 4RB.
The liability of the members in the event of the company being liquidated is limited to one pound per member.
22
## **THE SOCIETY OF THE SALUTATION OF MARY THE VIRGIN LIMITED SUPPLEMENTARY NOTES FOR THE YEAR ENDED 31 DECEMBER 2020**
|**Charitable activities**
**Donations**
**Made**
**£**
Water rates
-
Council tax
-
Heating and lighting
-
Insurance
-
Repairs and renewals
-
Cleaning materials
-
Salaries
-
Grounds and Garden
-
National insurance (Community
members)
-
Provisions
-
Medical
-
Clothing
-
Books and periodicals
-
Postage, stationery and printing
-
IT costs
-
Telephone
-
Travelling and conference expenses
-
Audit and accountancy
-
Legal and professional fees
-
Miscellaneous
-
Exceptional costs
-
Bank charges
-
Donations made
4,045
Depreciation
-
Amortisation
-
(Profit)/loss on disposal of assets
Restricted expenditure
-
-
Net chapel costs
-
4,045|**Abbey**
**£**
**Governance**
**costs**
**£**
791
-
1,774
-
22,158
-
8,966
-
42,782
-
1,858
-
1,861
-
6,382
-
4,918
-
20,173
-
2,101
-
609
-
1,092
-
2,570
-
9,060
-
2,771
-
11,994
-
-
8,096
-
-
3,864
-
7,138
-
1,345
-
-
-
173,321
-
1,026
-
(2,650)
423
-
-
2,486
-
328,813
8,096|**Total**
**Costs**
**2020**
**£**
791
1,774
22,158
8,966
42,782
1,858
1,861
6,382
4,918
20,173
2,101
609
1,092
2,570
9,060
2,771
11,994
8,096
-
3,864
7,138
1,345
4,045
173,321
1,026
(2,650)
423
2,486
340,954|**Total**
**Costs**
**2019**
**£**
464
1,710
20,511
8,674
49,189
1,936
1,828
6,073
5,636
20,906
3,101
783
1,172
932
9,777
3,657
21,202
9,506
10
6,471
-
1,542
4,013
168,550
1,026
-
-
1,810
350,479|
|---|---|---|---|
Where noted, costs are allocated according to the use of resources by members of the community and guests or the proportion of staff time dedicated to specific tasks. All other costs are capable of direct allocation.
## **CASH AT BANK AND IN HAND**
|Current bank account
Deposit fund (held for development of functional property)
CafCash account
Friends’ bank accounts
Cash account
Instant AS account
Business active saver|**2020**
**£**
18,376
390,000
51,515
17,706
758
6,431
48,268
533,054|**2019**
**£**
14,233
390,000
58,860
20,583
945
23,777
60,148
568,546|
|---|---|---|