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2020-12-31-accounts

The Panacea Charitable Trust

REPORT AND FINANCIAL STATEMENTS

For the year ended 31 December 2020

Charity Registration No. 227530

The Panacea Charitable Trust

31 December 2020

CONTENTS

CONTENTS
Page
Trustees, Officers and Advisers 1
Trustees’ Report 2-6
Statement ofTrustees’ Responsibilities 7
Independent Auditor’s Report 8-10
Statement ofFinancial Activities 11
Balance Sheet 12
Statement ofCash Flows 13
Accounting Policies 14-16
NotestotheFinancialStatements 17-24

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The Panacea Charitable Trust TRUSTEES, OFFICERS AND ADVISERS

TRUSTEES

Dr J J Meggitt (Chair) Mr CN Monsell Mr E Jones Ms S Cowls Dr N Hilton Rev Dr P Lockley

EXECUTIVE OFFICER

Mr D McLynn ACMA

PRINCIPAL OFFICE

14/16 Albany Road, Bedford, Bedfordshire, MK40 3PH

CHARITY NUMBER: 227530

AUDITOR

Collett Hulance LLP, 40 Kimbolton Road, Bedford, MK40 2NR

BANKERS

National Westminster Bank plc, 81 High Street, Bedford, Bedfordshire, MK40 1YN

SOLICITORS

Sloan Plumb Wood LLP, Apollo House, Isis Way, Minerva Business Park, Lynch Wood, Peterborough, PE2 6QR

INVESTMENT MANAGERS

Rathbones Investment Management, 20 Colmore Circus, Queensway, Birmingham, B4 6AT.

PROPERTY MANAGERS

Thomas Charles Property Management, 160 Castle Road, Bedford, Bedfordshire, MK40 3SW

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The Panacea Charitable Trust TRUSTEES’ REPORT

Report of the trustees for the year ended 31 December 2020

The trustees present their annual report and financial statements of the charity for the year ended 31 December 2020. The financial statements have been prepared in accordance with the accounting policies set out in the notes to the accounts and comply with the charity’s trust deed, the Charities Act 2011 and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland published on 16 July 2014.

Structure, Governance and Management

Background

The principal aim of the charity is to support the study of the Christian religion with particular emphasis on the teachings of Joanna Southcott and other prophets of the Visitation. It achieves this aim by funding academic research and sponsoring, publishing and distributing academic publications and through the operation of a Museum of the history of the Visitation and the Panacea Society. Alongside this work, the charity also supports recognised local organisations dealing with the relief of poverty and sickness, and educational and social support within the Bedford area.

Constitution

The charity was established as a Charitable Trust by a declaration of trust dated 24 July 1926 followed by a modernisation of the objects under a cy-pres scheme in 2001. A further modernisation of the governance of the charity took place in 2007. A new governing document was approved by the trustees on 27 February 2007 and was sealed by the Charity Commission on 20 March 2007, replacing the 1926 trust deed and 2001 scheme. The Commission approved a further scheme in February 2012 to change the name of the charity.

Recruitment and appointment of new trustees

The trustees feel that the most suitable candidates to be invited to become trustees are those who can demonstrate a clear empathy with the history and aims of the charity, have a recognised skill or competence, and can demonstrate a clear understanding of the role of a charity trustee.

New trustees are appointed by majority vote at a Special Meeting of the trustee body. Trustees serve a fixed term of 5 years; after which period they may put themselves forward for re-appointment. The Trust Deed provides for a minimum of 3 and a maximum of8 trustees. :

Induction and training of new trustees

The induction process for any newly appointed trustee comprises a series of meetings with fellow trustees and the charity’s Executive Officer on a broad range of topics, including but not limited to: investments, grant making including selection criteria, accounting policies, powers and responsibilities of the Board, delegated powers of the Executive Officer, and risk management.

New trustees are given a copy of the charity’s Governing Document, the last three years Reports and Accounts, copies of previous trustee meeting minutes, and the Charity Commission publication “the Essential Trustee — What You Need to Know, What You Need to Do”.

Organisational structure and decision making

The charity’s trustees are responsible for overall direction and policy-making, meeting at least three times per year. The trustees approve all investment decisions, grants, and sets the broad strategy and areas of activity for the charity. The charity’s trustees hold the title to all properties on behalf of the charity. The Executive Officer has day-to-day responsibility for the management of the charity, including liaison with grantees, staff management, investment and financial administration, and all office functions. The Executive Officer reports to the trustees formally at trustee meetings, and informally through telephone and email as and when necessary. To facilitate the management of the charity, two sub-committees, Administration and Grants, each comprising trustees and the Executive Officer and their deputy have been set up.

The charity benefits from the involvement and enthusiastic support of a number of volunteers who support the museum and archive staff across a range of day-to-day activities. In accordance with the Charities SORP, the economic contribution of general volunteers is not recognised in these accounts.

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The Panacea Charitable Trust TRUSTEES’ REPORT

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Major Risks

The trustees have considered the major strategic, business, heritage and operational risks that the charity faces, and consider that it has minimal exposure to them. This is documented in the charity’s Risk Matrix. Accounting systems and controls are in place, managed by the Executive Officer. A formal risk assessment has been developed.

Where necessary the trustees maintain suitable insurance to cover all perceived risks to minimise any potential loss to the charity. Property investments are insured for rebuilding costs. Other tangible and heritage assets are also insured.

The charity has been and will continue to be impacted by Covid-19 throughout 2020. Trustees and Management will continue to monitor and react to this situation through its reporting mechanisms, which will continue to incorporate advice provided by the government, the charity’s property and investment managers, and other reliable sources.

Public Benefit

We have referred to the Charity Commission's general guidance on public benefit when reviewing our aims and objectives and in planning our future activities. In particular, the trustees consider how planned activities will contribute to the aims and objectives they have set.

Objectives and Activities for the Public Benefit

Objects

The Trustees have resolved that, under the above objects, the charity will:

  1. Educate and disseminate information to the public about the Christian religion, particularly the history, beliefs and practices of the Panacea Society its antecedents and similar Christian religious groups, which is achieved by:

  2. 1.1 Fund, support and co-ordinate academic research, seminars and conferences and their outputs;

  3. 1.2 Operate a museum on the site of the former community and maintaining in perpetuity the collection displayed in the museum;

  4. 1.3. Maintain and make available the charity’s archive of books, manuscripts and papers; 1.4 Support any other activities that the trustees consider will help the charity to achieve this objective.

  5. Make grants for the relief of poverty and sickness and to advance education generally, primarily in Bedford and the surrounding area.

Grants

The charity began its grant making activities in 2001, and since that time has made a number of grants to both local and national organisations, basing its award criteria on the areas of education, and poverty, sickness and social support.

Education grants are made in two main ways:

All educational grants are assessed and awarded directly by the Panacea Charitable Trust, taking expert advice as and where necessary. With the creation and ongoing development of CenSAMM, the charity has discontinued it Education grant-making programme. ii es, Page 3

The Panacea Charitable Trust TRUSTEES’ REPORT

Poverty, sickness and social related grants are designated to support Bedford and its surrounding local community across a broad range of initiatives and recipients, to provide a range of valuable work and support in the area. Periodic application windows are opened between one and two times each year, with criteria and guidance information published on the charity’s website.

Main objectives for the year

Strategies for achieving objectives

Significant activities

The trustees have approveda set of criteria that they consider meets their objectives, the full details of which can be found on the charity’s website www.panaceatrust.org.

Applying these criteria during the year, the trustees approved the following direct charitable expenditure:

  1. Under object 1 above, £293,577 for the Panacea Museum, CenSAMM, and archives. Expenditure in the year included additional development to the CenSAMM Dictionary of Apocalyptic and Millenarian Movements (CDAMM), which promotes and supports non-partisan, high-quality, critical research into apocalypticism and millenarianism to enhance public social, cultural and scholarly understanding of often controversial and sometimes contentious topics. CenSAMM’s other activities in the year included organisation of a conference held in June and a symposium held in September. Also included are the ongoing costs of delivering the Panacea Museum and costs of developing the charity’s unique archive.

  2. Under object 2 above, £128,995 to fund poverty, sickness and education grants that were directed towards supporting organisations and groups whose work covers health and social work within the local community.

Achievements and performance

Review of charitable activities

The charity focused on its three main strands of charitable activity in the year:

  1. The Panacea Museum. Due to the ongoing issues surrounding Covid-19 and government guidance, the Panacea Museum opened for just four months of 2020, compared with eleven months in 2019. In 2020 the charity had just 750 visitors to its museum complex of two main buildings, outbuildings, and gardens, a decrease of 4,750 versus the previous year.

  2. Centre for the Study of Apocalyptic and Millenarian Movements (CenSAMM). In 2020, CenSAMM focused on creating engagement with those identified as the target audience through: further developing the Centre’s website, organisation of a conference and symposium held virtually due to Covid-19; and further development of a new online academic resource, the CenSAMM Dictionary of Apocalyptic and Millenarian

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The Panacea Charitable Trust TRUSTEES’ REPORT

Movements (CDAMM) which was launched in January 2021. The dictionary is currently around 300,000 words long and free to use for a wide audience including lecturers, schoolteachers, students, journalists, independent researchers, and interested readers.

  1. Grant making programme. The charity continued to support a broad range of charities working in the borough of Bedford through administering a non-academic grant-making programme, which awarded £99,352 in 2020 compared with £128,995 in 2020 — a decrease of £29,643.

Fundraising

The charity does not carry out any fundraising activities.

Investment Performance

The effective management of investments is an important aspect of the ongoing work of the trustees and staff, as they are the main source of income available to the charity. Investments are held in UK residential and commercial property (“investment properties”) and equities, bonds and cash (“financial investments”). The trustees periodically monitor both classes of investment in terms of weightings and performance.

The charity’s investment portfolio mirrored the broader market trends during the year. Investment properties, accounting for approximately a third of the charity’s investments by value, improved their 2019 capital values by 3%. Annual rental income derived from these properties was £258,476, an increase of just over 3.2% (2019: £250,274). This reflects the continued appeal of the charity’s rental property portfolio and few void periods or tenant changes in the year. Individual rentals achieved reflect current market levels, as advised by the charity’s managing agents. The trustees remain satisfied with the work of the charity’s property managers in managing the charity’s property assets.

The charity’s financial investments reflected the performance of the market as a whole, showing less than a 0.5% capital loss in the year. Overall income derived from those investments, £373,684, underperformed against a target ofjust under £465,000 the charity set for its investment managers in January 2020, representing a decrease ofjust over 27% on the previous year (2019: £509,103). The primary cause of this underperformance was the cancellation of certain dividends due to Covid-19. The trustees remain satisfied with the work of the charity’s investment managers in managing the charity’s investment assets, and have communicated an expectation of similar levels of investment income for the 2021 financial year.

Financial Review

Income and Expenditure

Total income for the year was £661,220 (2019: £763,948), and total expenditure was £639,037 (2019: £719,157), leaving net income of £22,183 (2019: £44,791). The net increase in funds after revaluation of investments and fixed assets was £464,665 (2019: increase in funds of £2,522,935).

Reserves Policy

The trustees continue to keep the charity’s reserves policy under review, and aim to distribute up to 100% of net income after all expenses and investment allocations for the current year and thereafter.

The charity is reliant on income from its portfolio of investments, principally managed funds and investment properties, to support its work. It has funds to call upon if expenditure exceeds income in any particular year.

Investment Policy

The financial investment objective is to generate a total return of inflation plus 3% per annum, after expenses, over the long term. This should allow the Charity to at least maintain the real value of the assets, whilst funding annual charitable expenditure in the region of 3% per annum, which meets trustee requirements to generate both income and long-term capital growth.

In addition, a portfolio of property is held yielding rental income and long-term capital growth. The trustees consider that the use of both portfolios enables the charity to realise its policy and spread the risks associated with the investment market.

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The Panacea Charitable Trust TRUSTEES’ REPORT

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Plans for Future Periods

Covid-19 has significantly hindered the activities of the museum and CenSAMM since its onset in early 2020. Once government restrictions are lessened or removed, the charity plans to continue to build on the work it has previously undertaken to further develop both projects. The charity plans to continue applying part of its funds to the relief of poverty and sickness in the Bedford area through the work of recognised local health and social care related organisations. The programme will continue to be delivered in-house in 2021.

Key Management Personnel Remuneration

The trustees consider the board of trustees and the senior staff as comprising the key management personnel of the charity in charge of directing and controlling the charity and running and operating the charity on a day-today basis. All trustees give of their time freely and no trustee remuneration was paid in the year. Details of trustee expenses and related party transactions are disclosed in note 9 to the accounts. Trustees are required to disclose all relevant interests and register them with the Executive Officer and in accordance with the Trust’s policy withdraw from decisions where a conflict of interest arises.

The remuneration of all staff is reviewed annually by the trustees, taking into account sector and professional comparatives. As part of the review process reference is also made to the government’s annual inflation measures.

Auditor

The trustees in office on the date of approval of these financial statements have confirmed, as far as they are aware, that there is no relevant audit information of which the auditor is unaware. Each of the trustees have confirmed that they have taken all the steps they ought to take as trustees in order to make themselves aware of any relevant audit information and establish that it has been communicated to the auditor. Collett Hulance LLP was appointed as the charity’s auditor in the year, and has indicated its willingness to continue in office.

On behalf of the trustees

Justin Meggitt, Trustee 30" July 2021

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The Panacea Charitable Trust STATEMENT OF TRUSTEES’ RESPONSIBILITIES

The trustees are responsible for preparing the Trustees' Annual Report 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:

The trustees are responsible for maintaining proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and to enable them to ensure that the accounts 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.

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INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF THE PANACEA CHARITABLE TRUST

Opinion

We have audited the financial statements of The Panacea Charitable Trust (the 'charity') for the year ended 31 December 2020 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and the related notes, 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 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 have been appointed as auditors under section 144 of the Charities Act 2011 and report in accordance with regulations made under section 154 of that Act.

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities 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 the charity'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.

Other information

The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information. 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.

In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

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INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF THE PANACEA CHARITABLE TRUST (CONTINUED)

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 Act 2011 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the trustees' responsibilities statement, set out on page 7, 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

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:

We obtained an understanding of the legal and regulatory framework applicable to the charity and how the charity is complying with that framework. We considered the susceptibility of the financial statements to material misstatement, including how fraud might occur and we obtained an understanding of the charity’s current activities, the scope of its authorisation and the effectiveness of its control environment. These procedures are considered to be sufficient to identify material misstatements in in respect of irregularities, including fraud, but cannot be relied upon to detect every potential misstatement.

As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also:

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INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF THE PANACEA CHARITABLE TRUST (CONTINUED)

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Use of our report

This report is made solely to the charity's members, as a body, in accordance with the Charities Act 2011. Our audit work has been undertaken so that we might state to the charity'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 charity and the charity's members as a body, for our audit work, for this report, or for the opinions we have formed.

Coltith Houle

Collett Hulance LLP Chartered Certified Accountants & statutory auditor 40 Kimbolton Road Bedford MK40 2NR

Date: NA Se herbes de

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The Panacea Charitable Trust STATEMENT OF FINANCIAL ACTIVITIES for the year ended 31 December 2020

Notes Total Total
Funds Funds
2020 2019
£ £
Income from:
Investment income 1 632,160 759,377
Other income 29,060 4,571
Totalincome 661,220 763,948
Expenditure on:
Raising funds:
Investment management costs 3 235,338 242,379
Charitable activities 4,5,7 403,719 476,778
Total expenditure 639,037 719,157
Gain/(Loss) on revaluation ofinvestments 13 342,058 2,412,493
Net income/(expenditure) before transfers 364,221 2,457,284
Other recognised gains and losses:
Gain on revaluation of 12 100,444 65,651
tangible fixed assets
Net movement in funds 464,665 2,522,935
Balance at 1 January2020 36,205,223 33,682,288
Balanceat31December2020 36,669,888 36,205,223

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The Panacea Charitable Trust BALANCE SHEET

Charity Number 227530

31 December 2020

Notes 2020 2019
£ £
FIXED ASSETS
Tangible fixed assets 12 5,161,298 4,848,997
Investments 13 31,485,546 31,236,715
36,646,844 36,085,712
CURRENT ASSETS
Debtors 14 14,021 6,800
Cash atbank and in hand 127,639 192,089
141,660 198,889
CREDITORS: Amounts falling due within one year 15 118,616 79,378
NETCURRENTASSETS 23,044 119,511
NETASSETS 36,669,888 36,205,223
FUNDS
Unrestricted fund 36,669,888 36,205,223
36,669,888 36,205,223

The notes on pages 14 to 24 form part of these financial statements.

The financial statements were approved by the trustees and authorised for issue on 30" July 2021 and signed on their behalf by:

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The Panacea Charitable Trust STATEMENT OF CASH FLOWS

For the year ended 31 December 2020

Notes 2020 2019
£ £
Net cash used in operating activities 19 (484,753) (599,637)
Cash Flows from investing activities
Interest and dividends 373,684 509,103
Rental income 258,476 250,274
Purchaseoftangible fixed assets (211,857) (242,084)
Netcash provided by investing activities 420,303 517,293
Change in cash and cash equivalents in the year (64,450) (82,344)
Cashand cash equivalentsbrought forward 192,089 274,433
Cashandcashequivalentscarriedforward 127,639 192,089

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The Panacea Charitable Trust ACCOUNTING POLICIES For the year ended 31 December 2020

BASIS OF ACCOUNTING

The accounts (financial statements) have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant notes to these accounts. The financial statements have been prepared in accordance FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland’, the 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 Charities Act 2011. The financial statements are prepared in sterling, which is the functional currency of the Trust. Monetary amounts in these financial statements are rounded to the nearest £1. The charity is an unincorporated charitable trust registered in England. The principal office of the Trust is shown on page 1.

The charity constitutes a public benefit entity as defined by FRS 102.

GOING CONCERN

There are no material uncertainties in respect of going concern due to reliable investment income underpinned by substantial long term financial assets.

INCOME RECOGNITION

Interest on Government Securities and dividends on UK quoted equities, interest on bank deposits, and rental income is accounted for on an accruals basis. Other income such as donations and legacies is recognised in the Statement of Financial Activities once the charity has entitlement to the resources, it is probable that the resources will be received and the monetary value of income can be measured with sufficient reliability.

EXPENDITURE RECOGNITION

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to the expenditure. Expenditure, including irrecoverable VAT, is included on an accruals basis. Key management personnel remuneration costs together with all support costs and governance costs have been apportioned between expenditure on raising funds and on charitable activities on a time apportioned basis.

EXPENDITURE ON RAISING FUNDS

Expenditure on raising funds comprises those costs directly attributable to managing the investment portfolio and raising investment income.

GOVERNMENT GRANTS REVEIVABLE

Government grants are recognised at the fair value of the asset received or receivable. Grants are not recognised until there is reasonable assurance that the charity will comply with the conditions attaching to them and the grants will be received.

Government grants are recognised using the accrual model and the performance model.

Under the accrual model, government grants relating to revenue are recognised on a systematic basis over the periods in which the charity recognises the related costs for which the grant is intended to compensate. Grants that are receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the entity with no future related costs are recognised in income in the period in which it becomes receivable. Grants relating to assets are recognised in income on a systematic basis over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is recognised as deferred income and not deducted from the carrying amount of the asset.

Under the performance model, where the grant does not impose specified future performance-related conditions on the recipient, it is recognised in income when the grant proceeds are received or receivable. Where the grant does impose specified future performance-related conditions on the recipient, it is recognised in income only when

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The Panacea Charitable Trust ACCOUNTING POLICIES For the year ended 31 December 2020

the performance-related conditions have been met. Where grants received are prior to satisfying the revenue recognition criteria, they are recognised as a liability.

GRANTS PAYABLE

Grants payable are charged in the year when the offer is conveyed to the recipient except in those cases where the offer is conditional, such grants being recognised as expenditure when the conditions attached are fulfilled.

ALLOCATION OF SUPPORT AND GOVERNANCE COSTS

Governance costs are associated with the governance arrangements of the charity, in particular the activities of the trustees. These costs include audit, legal advice for trustees and costs associated with meeting constitutional and statutory requirements such as the cost of trustee meetings and the preparation of statutory accounts. This category also includes costs associated with the strategic as opposed to the day-to-day management of the charity’s activities. All governance and support costs have been apportioned on a time-apportioned basis.

TANGIBLE FIXED ASSETS

Tangible fixed assets comprise functional freehold properties used as the charity’s offices and in furtherance of its aims, assets in the course of construction, certain furniture and chattels, and office equipment.

All functional properties are held at valuation, and maintained with a view to ensuring that total residual values are not less than values at which they are recorded in the accounts of the charity and consequently have not been depreciated.

Properties in the course of construction are carried at cost, less any identified impairment loss. Cost includes professional fees and other directly attributable costs that are necessary to bring the property to its operating condition. Depreciation commences when the properties are ready for their intended use. Furniture and chattels are held at valuation, and are reviewed annually to consider any material changes likely to affect the balance sheet valuation. Such assets are not subject to depreciation as the trustees review their carrying value each year and adjust as appropriate.

Revaluation gains are recognised in other gains and losses. Revaluation losses are recognised in expenditure on charitable activities except to the extent that they reverse previously recognised gains.

Museum assets, office equipment, and motor vehicles purchased in direct furtherance of charitable activities are capitalised if the purchase value exceeds £5,000. Depreciation is charged at 25% ona straight-line basis on these capitalised assets.

HERITAGE ASSETS

In addition to the fixed assets noted above, the charity possesses a highly significant and unique collection of manuscripts and documents, artefacts and items of religious significance, along with Joanna Southcott’s box. These items have been collected over many years since the inception of the charity. The collection is held by the charity in pursuit of preservation or conservation objectives and accordingly the trustees consider them to be heritage assets, as defined by the SORP FRS 102. It is the trustees’ policy that any costs of conservation are not capitalised, but expensed as incurred. The charity employs a Conservator to ensure heritage assets are maintained in line with industry standards.

Acquisitions are made by purchase or donation. Assets which have been purchased and can be readily ascribed a value have been capitalised in the financial statements at cost. No value has been ascribed to the collection for assets which have been gifted in the past in these financial statements as there is no reliable cost information available or indeed suitable valuation techniques that are reliable. Therefore, due to the religious and unique nature of these items, it is not considered appropriate to recognise a value relating to the collection. The collection is catalogued and managed by the trustees.

It is the trustees’ policy to add to this unique collection whenever the opportunity arises.

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The Panacea Charitable Trust ACCOUNTING POLICIES For the year ended 31 December 2020

FIXED ASSET INVESTMENTS

Fixed asset investments comprise those freehold properties which are currently let, certain furniture and chattels, listed investments and cash on deposit. Listed 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. The statement of financial activities includes the net gains and losses arising on revaluation and disposals throughout the year.

PENSIONS

The Trust operates a Group Personal Pension Plan with Scottish Life that is open to all members of staff. The pension costs charged to the Statement of Financial Activities represent the contributions payable by the Trust during the year.

FUND ACCOUNTING

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

FINANCIAL INSTRUMENTS

Financial instruments are classified and accounted for according to the substance of the contractual arrangement as financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the entity after deducting all of its liabilities.

Trade debtors which are receivable within one year are initially measured at the transaction price. Trade debtors are subsequently measured at amortised cost, being the transaction price less any amounts settled and any impairment losses.

Trade creditors payable within one year that do not constitute a financing transaction are initially measured at the transaction price and subsequently measured at amortised cost, being the transaction price less any amounts settled.

CRITICAL ACCOUNTING ESTIMATES AND ASSUMPTIONS

The Trust makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are those used by the Trust in calculating the value of both functional and investment properties (see notes 12 and 13 for details).

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The Panacea Charitable Trust NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 December 2020

1 INVESTMENT INCOME

INVESTMENT INCOME 2020 2019
£ £
Dividends 373,684 509,103
Rental income 258,476 250,274
632,160 759,377

2 ALLOCATION OF INDIRECT COSTS & OVERHEADS

||Total|Cost of | Charitable|Cost of | Charitable| |---|---|---|---| |||Generating|Activities| |||Funds|| |2020|£|£|£| |Staff
Property|154,267
55,803|77,135
55,803|77,132
-| |Office/Other|16,694|8,715|7,979| ||226,764|141,653|85,111| |2019|£|£|£| |Staff|152,560|76,280|76,280| |Property
Office/Other|53,305
23,605|53,305
12,253|-
11,352| ||229,470|141,838|87,632|

3 INVESTMENT MANAGEMENT COSTS

INVESTMENT MANAGEMENT COSTS 2020 2019
£ £
Fund management fees 93,164 100,541
Investment properties management fees 18,560 17,762
Investment properties maintenance and refurbishment 24,796 23,588
Wages and salaries 77,135 76,280
Insurance 11,735 11,255
Miscellaneous/Other 9,948 12,953
235,338 242,379

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The Panacea Charitable Trust NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 December 2020

4 CHARITABLE ACTIVITIES

CHARITABLE ACTIVITIES 2020 2019
£ £
Museum & Archives
Museum Exhibition 93,846 123,257
Archives and Conservation 32,713 36,193
CenSAMM Project 75,140 95,761
Wages and salaries 24,884 24,843
Functional Properties - Maintenance and refurbishment 896 1,007
Insurance 5,029 4,823
Service/Other Costs 11,468 7,693
Total exc. Grants and donations 243,976 293,577
Grants& Donations (note 7)
Grants returned - (13,764)
Other miscellaneous Scholarship/Educational Grants - 5,000
Health/Social Grants 99,352 128,995
Total Grants& Donations 99,352 120,231
Support Costs (notes 2& 5)
Wages& salaries 52,248 51,437
Other - including governance costs 8,143 11,533
Total Support Costs 60,391 62,970
403,719 476,778
5 ANALYSIS OF 2020 2020 2020 2019 2019 2019
CHARITABLE ACTIVITIES £ £ £ £ £ £
Core
Funding		 Support
Costs		 Total Core
Funding		 Support
Costs		 Total
Museum, Archives &CenSAMM 243,976 48,313 292,289 293,577 50,376 343,953
University Research Grant - - - (13,764) - (13,764)
Other educational/publishing - - - 5,000 - 5,000
Health/Social Grants 99,352 12,078 111,430 128,995 12,594 141,589
343,328 60,391 403,719 413,808 62,970 476,778
6 GRANTS RECEIVABLE 2020 2019
£ £
Governmentgrantincome 28,919 -

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The Panacea Charitable Trust NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 December 2020

7 GRANTS PAYABLE Paid in the 2020
year Total
£ £
Grants committed at 1 January 2020 (net) (20,000)
Paid in the year:
GRANT AWARDS
Poverty, sickness and health grants programme 69,511
Total paid in the year 69,511
Future commitments payable (note 15): 49,841
99,352
The major recipients for future grants are: 2020
£
Sue Ryder St John’s Hospice 19,346
FACES Bedford 19,495
Bedford Open Door 11,000
49,841
All grants are payable to organisations only; no grants are payable to individuals.
8 ANALYSIS OF STAFF COSTS AND REMUNERATION OF KEY 2020 2019
MANAGEMENT PERSONNEL No. No.
The average number ofemployees during the year was:
Maintenance and refurbishment 3 3
Administration 2 2
Museum, Archives & CENSAMM 7 8
12 13

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The Panacea Charitable Trust NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 December 2020

8 ANALYSIS OF STAFF COSTS AND REMUNERATION OF KEY MANAGEMENT PERSONNEL (continued)

MANAGEMENT PERSONNEL (continued)
2020 2019
£ £
Staffcosts for above persons:
Wages and salaries 274,491 288,790
Social security costs 18,775 20,965
Other pension costs 13,792 14,850
307,058 324,605

There were no employees whose emoluments amounted to more than £60,000 in the year (2019: none).

The charity considers its key management personnel comprise the trustees and the two (2019: 2) employees in charge of directing and controlling the charity and running and operating the charity on a day-to-day basis. The total employment benefits including employer pension contributions of the key management personnel were £96,349 (2019: £94,493), and Employers National Insurance costs of £8,148 (2019: £8,382). No Trustees received remuneration from the charity in their capacity as Trustees.

In addition to paid employees, a small number of unpaid volunteers provide valuable support to the museum and archives activities of the charity.

9 RELATED PARTY TRANSACTIONS AND TRUSTEES’ REMUNERATION

Three trustees were reimbursed during the year for travel expenses of £52 (2019: three, £1,150).

Rent of £16,800 (2019: £16,200) was received from key management personnel during the year. There were no amounts outstanding at year end (2019: £nil).

10 AUDITOR’S REMUNERATION

The auditor’s remuneration, including irrecoverable VAT, constituted an audit fee of £7,800 (2019: £13,200).

11 VOLUNTEERS

The charity reimbursed volunteers' travel and subsistence expenses of £30 (2019: £1,335).

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The Panacea Charitable Trust NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 December 2020

12 TANGIBLE FIXED ASSETS
Assets Furniture, Office
inthe Chattels& Equipment
Functional course of Heritage & Motor Museum
Properties construction Assets Vehicles Assets Total
£ £ £ £ £ £
Cost or valuation:
1 January 2020 3,392,613 1,391,905 64,479 40,452 152,268 5,041,717
Additions - 211,857 - - - 211,857
Revaluation 100,444 - - - - 100,444
31 December 3,493,057 1,603,762 64,479 40,452 152,268 5,354,018
2020
Depreciation:
1 January 2020 - - - 40,452 152,268 192,720
31 December - - - 40,452 152,268 192,720
2020 a —_— ey
Net book value
31 December 3,493,057 1,603,762 64,479 - - 5,161,298
2020
31 December 3,392,613 1,391,905 64,479 - - 4,848,997
2019

The functional properties, including assets now in the course of construction, were formally valued to determine fair value according to standard market practices by Messrs Jones, Norris, Adams, Chartered Surveyors, in April 2013. This valuation has been reviewed by the trustees at the balance sheet date, and based on published indices and knowledge of local market conditions, the trustees have updated the valuation to reflect changes in these. The cost of these properties to the charity was £272,535, plus improvement expenditure of circa £1,885,000.

The furniture and chattels are included at the valuation provided by Messrs W&H Peacock Auctioneers and Valuers in May 2013. This valuation was reviewed by the trustees at 31 December 2018 and deemed to be appropriate.

Included within furniture, chattels & heritage assets are £13,717 heritage assets purchased in 2008. These assets are not depreciated. There have been no other acquisitions or disposals of heritage assets since that date. Further details of heritage assets are included in Note 18.

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The Panacea Charitable Trust NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 December 2020

13 INVESTMENTS
Investment Listed
properties investments Total
£ £ £
Valuation at 1 Jan2020 10,032,594 21,204,121 31,236,715
Less: Management fee charges - (93,227) (93,227)
Gain in the year 300,978 41,080 342,058
Valuationat31Dec2020 10,333,572 21,151,974 31,485,546

The investment properties are included at market value. The properties were formally valued to determine fair value according to standard market practices by Messrs Jones, Norris, Adams, Chartered Surveyors, in April 2013. This valuation has been reviewed by the trustees at the balance sheet date, and based on published indices and knowledge of local market conditions, the trustees have updated the valuation to reflect changes in these.

134i) LISTED INVESTMENTS ANALYSIS

2020 2019
£ £
UK Securities 7,645,073 8,130,426
Overseas Securities 12,653,297 11,392,975
Market value ofinvestments 20,298,370 19,523,401
Cash held by Investment Manager 853,604 1,680,720
21,151,974 21,204,121
The listed investments are made up as follows: 2020 2019
£ £
Equities 17,551,412 17,025,605
Fixed Interest Securities 2,746,958 2,497,796
20,298,370 19,523,401
14 DEBTORS 2020 2019
£ £
Prepayments and accrued income 14,021 6,800
14,021 6,800

i,

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The Panacea Charitable Trust NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 December 2020

The Panacea Charitable Trust
NOTES TO THE FINANCIAL STATEMENTSTO THE FINANCIAL STATEMENTSTHE FINANCIAL STATEMENTSFINANCIAL STATEMENTSSTATEMENTS
for the year endedthe year endedyear endedended 31 December 20202020		 The Panacea Charitable Trust
NOTES TO THE FINANCIAL STATEMENTSTO THE FINANCIAL STATEMENTSTHE FINANCIAL STATEMENTSFINANCIAL STATEMENTSSTATEMENTS
for the year endedthe year endedyear endedended 31 December 20202020		 The Panacea Charitable Trust
NOTES TO THE FINANCIAL STATEMENTSTO THE FINANCIAL STATEMENTSTHE FINANCIAL STATEMENTSFINANCIAL STATEMENTSSTATEMENTS
for the year endedthe year endedyear endedended 31 December 20202020		 The Panacea Charitable Trust
NOTES TO THE FINANCIAL STATEMENTSTO THE FINANCIAL STATEMENTSTHE FINANCIAL STATEMENTSFINANCIAL STATEMENTSSTATEMENTS
for the year endedthe year endedyear endedended 31 December 20202020
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———$——
—— I— 090000
15 CREDITORS: Amounts fallingdue within one year 2020
£		 2019
£
Grants payable
Accruals and deferred income
Other tax and social security		 49,841
62,233
6,542		 20,000
52,769
6,609
118,616 79,378
16 DEFERRED INCOME
Deferred income comprises investment property rentals received
inadvance 2020 2019
£ £
Balance as at 1 January 2020
Amountreleased toincome earned from charitable activities
Amount deferred in year		 3,710
(3,710)
5,424		 -
-
3,710
Balance as at 31 December 2020 5,424 3,710
17 ANALYSISOFNET ASSETS BY FUND
Unrestrictedfunds 2020 2019
£ £
Tangible fixed assets
Investments
Netcurrent assets		 5,161,298
31,485,546
23.044		 4,848,997
31,236,715
119,511
36,669,888 30,295,223

18 HERITAGE ASSETS

The charity’s heritage assets relate to the history of the Visitation, in particular the life and work of the prophetess Joanna Southcott. There are three distinct parts to the collection: Joanna Southcott’s box and other items of material culture, books and manuscripts, and the charity’s archive record of the work of the Panacea Society since its inception.

Acquisitions are made by purchase or donation. Assets which have been purchased and can be readily ascribed a value have been capitalised in the financial statements at cost.

No value has been ascribed to the collection for assets which have been gifted in the past in these financial statements as there is no reliable cost information available or indeed suitable valuation techniques that are reliable. In the opinion of the Trustees, reliable information on cost or valuation is not available for the charity’s collections. This is owing to the lack of information on purchase cost; the lack of comparable market values; the diverse nature of the objects; and the volume of items held. These collections are therefore not reported as assets in the balance sheet. All heritage assets are available for consultation by researchers by appointment.

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The Panacea Charitable Trust NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 December 2020

19 RECONCILIATION OF NET MOVEMENT IN FUNDS TO NET CASH FLOW FROM OPERATING ACTIVITIES

ACTIVITIES
2020 2019
£ £
Net movement in funds 464,665 2,522,935
Adjustments for:
(Gain) on investment properties (300,978) (196,718)
Loss/(Gain) on listed investments 52,147 = (2,117,775)
Interest and dividends (373,684) (509,103)
Rental income (258,476) (250,274)
(Gain) on revaluation oftangible fixed assets (100,444) (65,651)
Operating cash flows before movements in working capital (516,770) (616,586)
(Increase)/decrease in debtors (7,221) 17,840
Decrease/(increase) in creditors 39,238 (891)
Cash used in operating activities (484,753) (599,637)
20 FINANCIAL INSTRUMENTS 2020 2019
£ £
The carrying amount ofthe Trust’s financial instruments at 31
December were:
Financial Assets
MeasuredatfairvaluethroughSOFA 21,151,974 21,204,121

21 OPERATING LEASES

Investment income received in the form of property rentals was all due within one year.

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