St Mary’s Priory Fernham Residual Fund
Annual Report and Accounts
31 December 2022
Charity Registration Number 229393
Contents
| Reports | |
|---|---|
| Reference and administrative information | 1 |
| Trustees’ report | 3 |
| Independent auditor’s report | 16 |
| Accounts | |
| Statement of financial activities | 21 |
| Balance sheet | 22 |
| Statement of cash flows | 23 |
| Principal accounting policies | 24 |
| Notes to the accounts | 28 |
St Mary’s Priory Fernham Residual Fund
Reference and administrative information
| Trustees | Rt Rev David Cuthbert Brogan – Visitor |
|---|---|
| Rev Dr Stephen David Morgan (to February | |
| 2022) | |
| Mother Winsome Angela Durrant | |
| Rev Dom Brendan Patrick Creeden | |
| Rev Dom Michal Dymitr Mycka | |
| Fra Richard John Berkley-Matthews (from 11 | |
| August 2022) | |
| Mr Richard Hawker (from 11 August 2022) | |
| Bursar | Rev Dom Michal Dymitr Mycka |
| Principal address | Saint Michael's Abbey |
| 280 Farnborough Road | |
| Farnborough | |
| Hampshire | |
| GU14 7NQ | |
| Charity registration number | 229393 |
| Auditor | Buzzacott LLP |
| 130 Wood Street | |
| London | |
| EC2V 6DL | |
| Bankers | |
| (Until February 2022) | The Royal Bank of Scotland plc |
| Dundee Broughty Ferry | |
| 5thFloor | |
| Bath Street | |
| Glasgow | |
| G2 4RS | |
| (From August 2021) | Metro Bank plc |
| One Southampton Row | |
| London | |
| WC1B 5HA | |
| Investment managers | Rathbone Investment Management Limited |
| 8 Finsbury Circus | |
| London | |
| EC2M 7AZ |
St Mary’s Priory Fernham Residual Fund 1
Reference and administrative information
| Solicitors | Irwin Mitchell LLP |
|---|---|
| Davidson House | |
| Forbury Square | |
| Reading | |
| RG1 3EU |
St Mary’s Priory Fernham Residual Fund 2
Trustees’ report 31 December 2022
The trustees present their report together with the accounts of St Mary’s Priory Fernham Residual Fund (the ‘charity’ or the ‘trust’) for the year ended 31 December 2022.
The accounts have been prepared in accordance with the accounting policies set out on pages 24 to 27 of the attached accounts and comply with the charity’s trust deed, applicable laws and the requirements of Statement of Recommended Practice on 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 United Kingdom and Republic of Ireland (FRS 102).
INTRODUCTION
The charity was created by a deed dated 16 May 1963 and was known, until 7 March 2003, as the Community of Benedictine Nuns of St Mary’s Priory. The deed was amended on 1 December 1998 by a Scheme of the Charity Commissioners. A further Deed of Variation, dated 7 March 2003, was accepted by the Charity Commissioners following a decision to close the house at Fernham and disperse the individual members of the Community to other locations. Under this latter Deed of Variation, although the Community did not cease to exist, it ceased to carry on or direct any charitable works as a Community. The trustees now hold the assets of the charity for such charitable purposes connected with the advancement of the Roman Catholic Religion as they decide.
OVERALL OBJECTIVES
The trustees aim to use the assets of the charity, and the income thereof, for the support of the members of the Community, the advancement of the religious and other charitable works of the individual members, and for the advancement of the Roman Catholic religion - primarily by giving grants. The trustees are mindful of the need for the charity to demonstrate that it provides public benefit and they have had regard to the general guidance on the provision of public benefit published by the Charity Commission.
ACTIVITIES, SPECIFIC OBJECTIVES AND RELEVANT POLICIES
Activities and specific objectives
The activities of the charity can be divided into two main areas: caring for the sole remaining member of the Community, including supporting her ministry; and the advancement of the Roman Catholic religion - primarily by giving grants.
Care of member
The trustees have a moral and legal obligation to care for the one remaining member of the Community. The sister has no private income of her own as all earnings, gifts or donations, and pensions have been covenanted to the charity.
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Trustees’ report 31 December 2022
ACTIVITIES, SPECIFIC OBJECTIVES AND RELEVANT POLICIES (continued)
Activities and specific objectives (continued)
Grants for the advancement of the Roman Catholic religion
The trustees continue the material work of the former monastic community of Fernham by giving grants from the Fernham Residual Fund. Their current priority is to support the English Province of the Subiaco-Cassinese Congregation to which St Mary’s Priory belonged. Other particular interests of the trust include the wider Benedictine world and other causes which advance the Catholic Faith.
Investment policy
The trustees agreed in 2003 that the assets of the charity would be invested with a view to producing a return to cover future charitable expenditure. The trustees reviewed their investment policy in 2019 and agreed that the investment objective is to achieve a balanced return from income and capital growth while accepting a moderate degree of risk consistent with the charity’s ethical investment policies.
There are no restrictions on the charity’s power to invest. However, the trustees have requested that the investment managers do not invest in any company whose primary business is concerned with the manufacture of armaments, tobacco or any products which would be used in connection with contraception or abortion or whose primary business entails labour exploitation. The trustees have delegated discretionary powers of management to Rathbone Investment Management Limited. The portfolio is managed with a view to producing a balance between income and capital returns.
Grant making policy
The trustees give consideration to applications for grants in accordance with the provisions of the trust deed and application forms have been drawn up to assist this process objectively. The primary aim of any such grants would be, as stated in the trust deed, the advancement of the Roman Catholic religion and applicants are required to state how the purpose for which they make the request conforms to this objective. The trustees’ policy is to distribute excess income but this does not preclude, in exceptional cases, the expenditure of capital.
The trustees have continued the priorities which have always been those of the charity, namely the Subiaco-Cassinese Congregation English Province, the wider SubiacoCassinese Congregation, and the other Catholic causes.
The majority of the English Province monasteries are financially well-off. Rather than wait for applications for funds, the trustees have taken a pro-active approach, aiming in particular to focus on the historic Grade One and Grade Two Listed buildings in the care of the Province. These restorations will be attentive to public access, health and safety, heating and lighting, wheelchair access, sounds systems etc., which are all of public benefit. The onus is on the Abbot Visitor, who is a trustee of the charity, to identify the needs and to assess the financial abilities of the various communities during his canonical visitations of the houses.
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Trustees’ report 31 December 2022
ACTIVITIES, SPECIFIC OBJECTIVES AND RELEVANT POLICIES (continued)
Policy on receipt of donations and legacies
The charity aims to achieve best practice in the way in which it communicates with donors and other supporters. It protects donors’ data and never sells data, it never swaps data and ensures that communication preference can be changed at any time. The charity does not employ the services of professional fundraisers. The charity undertakes to react to and investigate any complaints regarding its approach to those who give it money and to learn from them. During the year, the charity received no such complaints.
ACHIEVEMENTS AND PERFORMANCE
Review of the activities
Care of member
The charity continued to support the remaining member of the St Mary’s Priory, Fernham, community.
Grants for the advancement of the Roman Catholic religion
The trustees made various grants and donations to advance the Roman Catholic religion. Grants from the Fernham Fund for 2022 included the following:
The Trustees have continued their programme of proactively assessing the needs of the monastic communities of the Benedictine Subiaco-Cassinese Congregation’s English Province during the canonical visitations of its communities and using the Fernham Trust’s funds to work towards strengthening and supporting communities as they have need. In addition to this, the Trust has been able to assist other Catholic causes.
A major project was the restoration of the bell turret of the St Michael’s Abbey Farnborough. Part of the Grade One and Grade Two Listed range of conventual buildings, the turret was designed by the French architect Gabriel Hippolyte Destailleur in the 1880s.
The project involved repairs to the wood work of the turret, the restoration of the clock and renewal of slates and drainage. The summit cross, which was in imminent danger of falling, was replaced, as were the rotten windows. The bell was also restored and returned to its daily use to summon the monks to various community meals and activities.
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Trustees’ report 31 December 2022
ACHIEVEMENTS AND PERFORMANCE (continued)
Review of the activities (continued)
Grants for the advancement of the Roman Catholic religion (continued)
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Trustees’ report 31 December 2022
ACHIEVEMENTS AND PERFORMANCE (continued)
Review of the activities (continued)
Grants for the advancement of the Roman Catholic religion (continued)
During the year, the Trust agreed a partnership with the St Barnabas Society (formerly the Converts’ Aid Society) to find a solution to the problems of the Sisters of the Blessed Virgin Mary in Kingstanding in Birmingham. This community is living in temporary rented accommodation and is in urgent need of a permanent home. The monks of Prinknash Abbey offered them shelter on their property. The St Barnabas Society and the Fernham Fund worked together to see if the Prinknash Abbey property might prove suitable and the St Barnabas Society agreed to make a grant of £1 million available to the Trust to assist with the refurbishment of the Prinknash Abbey property. £250,000 was made available to the Trust during the year. However, subsequent to the year end, an alternative property became available to the Sisters which was accepted given their urgent needs. The grant received of £250,000 has been reimbursed and the agreement with the St Barnabas Society formally and amicably ended. The trustees have decided to continue with the feasibility study in
regard to the work at Prinknash Abbey and will make a decision shortly about whether it is appropriate to continue with the refurbishment project from its funds. The Trust made a grant of £2,000 to help the Sisters with running costs during the year.
The Trust has assisted with academic course fees for a young priest undertaking doctoral work in liturgical studies at the Benedictine Liturgical Institute in Rome. We are supporting also second young priest who is undertaking pastoral studies as part of his work of rebuilding the Church in his native Iraq in difficult times.
Underground pipes have already been laid in preparation for the 2023 project of providing ground source technology heating to the abbey church at Farnborough to provide conservation heating to the Grade One Listed building.
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Trustees’ report 31 December 2022
ACHIEVEMENTS AND PERFORMANCE (continued)
Review of the activities (continued)
Grants for the advancement of the Roman Catholic religion (continued) 2022 saw the return of the Cavaillé-Coll organ to the Abbey Church at Farnborough at the end of its careful restoration by Willis and Sons of Liverpool.
The trustees were able to give some support towards expenses of two member of the English Province of the Subiaco Cassinese Congregation who are studying for the priesthood. Dom Stanislaus of Farnborough (right) is in the last year of his studies at Oxford and Rome and Dom Louis (below) of Kristo Buase (Ghana) has commenced his studies at the Beda College in Rome. In June of 2023 Dom Stanislaus became the newest priest of our English Province.
Ever aware that the Fernham Fund owes its genesis to the nuns of our Province, the trustees gave grants to two monastic communities of women. An award of was given to Stanbrook Abbey in Yorkshire to enable one of their nuns to attend an intensive course in monastic formation, organised by the Benedictine University at Sant’ Anselmo in Rome. A grant to the nuns of Colwich enabled one of the sisters to undertake an extended sabbatical retreat.
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Trustees’ report 31 December 2022
ACHIEVEMENTS AND PERFORMANCE (continued)
Review of the activities (continued)
Grants for the advancement of the Roman Catholic religion (continued)
The two huge paintings in the transepts of Farnborough Abbey Church were removed, cleaned and restored, as were their frames. These are amongst the few important items which survive from the Tuileries Palace in Paris which was destroyed by fire in 1871. The two paintings, which feature of the Visitation and the Presentation originally flanked the altar of the domestic chapel of the Palace.
Above: the painting in their original position in the Palais du Tuileries, Paris, 1860s.
Right: an expert teams reinstall the restored paintings at Farnborough.
Above and right: the cleaning and restoration process have had a visually dramatic affect on these important historic pieces.
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Trustees’ report 31 December 2022
ACHIEVEMENTS AND PERFORMANCE (continued)
Review of the activities (continued)
Grants for the advancement of the Roman Catholic religion (continued)
The meticulous cleaning of the interior of Farnborough Abbey Church was completed in 2022 with excellent and dramatic results.
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Trustees’ report 31 December 2022
FUTURE PLANS
It is not anticipated that there will be any significant changes to the charity’s activities in the forthcoming year.
The trustees will pay due heed to the aftermath of the Covid-19 pandemic and impact of the current macroeconomic and geopolitical environment, both socially and economically, and will continue to work towards the good stewardship of the funds they hold for the present and future beneficiaries.
FINANCIAL REVIEW
Income for the year was £515,692 (2021 – £268,271). Income comprises £226,598 (2021 – £260,869) from investments and donations of £264,160 (2021 – £7,402). Donations include £7,910 (2021 – £7,402) from pensions of individual religious received under Deed of Covenant, a restricted donation of £250,000 (2021: £nil) from St Barnabas Society to fund the Prinknash Abbey project and £6,250 (2021: £nil).
Expenditure totalled £2,538,212 compared to £1,192,839 in 2021. During the current and the previous year, the living expenses of the one remaining member of the Community who lives alone were paid. Expenditure on grants and donations, excluding allocated support costs and the costs of the feasibility study at Prinknash Abbey, totalled £2,381,838 as compared to £1,081,648 in the previous year. Further details of grants and donations are provided in note 4 to the attached accounts and earlier in this report.
Net expenditure before investment losses for the year amounted to £2,022,520 (2021 – £924,568). Investment losses totalled £669,215 (2021 – £1,020,986 gains) and net expenditure and net decrease in funds therefore, amounted to £2,691,735 (2021 – net income of £96,418).
Investment performance
The charity has a portfolio of investments with a market value at 31 December 2022 of £7,448,610 (2021 – £9,182,379) including cash awaiting investment of £1,861 (2021 – £78,325).
During the year, the charity’s investments achieved an income yield of 2.74% (2021 – 2.96%) and a capital yield of minus 8.09% (2021 – plus 14.52%). The performance of the portfolio reflected the condition of the markets generally throughout the period. The investment managers continued to invest in accordance with the trustees’ investment policy set out earlier in this report and in compliance with the ethical guidelines given to them. Further details of the investment portfolio are included in note 10 to the attached accounts.
The trustees continue to take a long-term view regarding investment strategy and believe their policy remains appropriate.
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Trustees’ report 31 December 2022
FINANCIAL REVIEW (continued)
Reserves policy and financial position
Reserves policy
The trustees have examined the requirement for free reserves i.e. those unrestricted funds not invested in tangible fixed assets, designated for specific purposes or otherwise committed.
The trustees agreed in 2003 that the bulk of the sale proceeds of the Fernham property would be invested with a view to producing a return to cover the future charitable expenditure outlined above.
In addition, the objectives of the charity would outlive the last member of the Community and funds should be invested with this in mind, though the trustees have no intention in declaring these invested funds as permanent endowment, as they may wish to spend capital.
The trustees’ policy is to distribute excess income but this does not preclude the expenditure of capital.
The trustees consider that, given the nature of the charity’s work, the level of free reserves should be sufficient to generate sufficient income to meet annual expenditure after accounting for investment gains. The trustees are of the opinion that this provides sufficient flexibility, provides adequate working capital to cover core costs, and will allow the charity to cope and respond to changes in the arrangements for the care of the last remaining member of the Community.
Financial position
The balance sheet shows funds of £6,367,676 (2021 - £9,059,411) of which £179,518 are restricted funds and £6,188,158 (2021 - £9,059,411) are free reserves. The trustees are of the opinion that this level of free reserves meets the reserves policy outlined above.
GOVERNANCE, STRUCTURE AND MANAGEMENT
Governance
The Community continues to exist as an entity in Canon Law under the care of the Abbot Visitor of the English Province of the Benedictine Subiaco-Cassinese Congregation, even though, following the decision of the Community in December 2001, the house at Fernham was closed and the individuals dispersed to other locations.
The charity is governed by the trustees. The Prioress appointed the original trustees. The minimum number of trustees is five, to include any ex officio trustee and a maximum of two community members. Further trustees are appointed by the Visitor, who is an ex officio trustee, and is the Abbot Visitor of the English Province of the Benedictine SubiacoCassinese Congregation. The Visitor has the power to remove trustees.
The names of the trustees who served during the year are shown on page 1.
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Trustees’ report 31 December 2022
GOVERNANCE, STRUCTURE AND MANAGEMENT (continued)
Structure and management reporting
The trustees are ultimately responsible for the policies, activities and assets of the charity. They meet regularly to review developments with regard to the charity or its activities and make any important decisions. When necessary, the trustees seek advice and support from the charity’s professional advisers, e.g. investments managers, solicitors and accountants.
Statement of trustees’ responsibilities
The trustees are responsible for preparing the trustees’ report and the accounts 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 accounts for each financial year which give a true and fair view of the state of affairs of the charity and of the income and expenditure of the charity for that period. In preparing these accounts, the trustees are required to:
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles of 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 United Kingdom and Republic of Ireland (FRS 102);
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make judgments and estimates that are reasonable and prudent;
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state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the accounts; and
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prepare the accounts on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.
The trustees are responsible for keeping proper accounting records that are sufficient to show and explain the charity’s transactions and disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the accounts comply with the Charities Act 2011, the applicable Charity (Accounts and Reports) Regulations and the provisions of the charity’s 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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Trustees’ report 31 December 2022
GOVERNANCE, STRUCTURE AND MANAGEMENT (continued)
Key management personnel
The trustees consider that they comprise the key management of the charity in charge of directing and controlling, running and operating the charity on a day to day basis.
The last remaining member of the Community, Eileen Murdoch, was a trustee of the charity until 3 June 2020 and her living and personal expenses are borne by the charity. However, in common with the other trustees, she received no remuneration in connection with her duties as a trustee.
No trustees received reimbursement for travel expenses in the year (2021 – £nil).
Risk management
In line with the requirement for trustees to undertake a risk assessment exercise and report on the same in their annual report, the trustees have looked at the risks the charity currently faces and have reviewed the measures already in place, or needing to be put in place, to deal with them.
The key risks for the charity, as identified by the trustees, are described below together with the principal ways in which they are mitigated:
The Community currently has one member. The trustees are aware that there is both a moral and legal obligation to care for the member, as she has no substantial resources of her own. As the sister grows older, so the need to provide care for the sister may increase. A key element of the management of this risk is ensuring that the charity has the available financial resources to finance this care both now and, in the years, ahead by carefully reviewing reserves.
The charity donates significant sums in donations to advance the Roman Catholic religion. The trustees currently see their priorities as beginning with the support of the English Province of the Subiaco-Cassinese Congregation where there may be need; radiating outwards to the Congregation worldwide, the Benedictine world, particularly in the UK; other monastic and religious needs wherever they may arise; and ultimately the needs of the Church in general.
Whether or not the funds are used here in Great Britain or overseas, the trustees always ensure that they are fully briefed about and familiar with the work of a potential recipient of funds, that proof of receipt is obtained and that, wherever possible (and always in the case of monies sent overseas), a full written report of how the monies have been utilised and applied is obtained from the recipient.
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Trustees’ report 31 December 2022
GOVERNANCE, STRUCTURE AND MANAGEMENT (continued)
Risk management (continued)
The charity's principal asset comprises listed investments, the value of which is dependent on movements in UK and world stock markets. The investments are managed by reputable investment managers who adhere to a policy agreed by the trustees. The trustees meet with the investment managers regularly and the manager's performance and that of the portfolio are monitored. The investment strategy is assessed regularly to ensure it remains appropriate to the charity's needs both now and in the future. Given the current macroeconomic and geopolitical environment, the trustees continue to communicate with the charity’s investment managers and, whilst there are concerns over the volatility in world stock markets, they acknowledge also that the charity is a long-term investor. As such, the charity will be able to wait for markets to stabilise over time whilst the trustees keep a watching brief.
Having assessed the major risks to which the charity is exposed, the trustees believe that by monitoring reserve levels, by ensuring controls exist over key financial systems, and by examining the operational and business risks faced by the charity, they have established effective systems to mitigate those risks.
Approved by the trustees and signed on their behalf by:
Rt Rev David Cuthbert Brogan
Trustee Date: 24 October 2023
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Independent auditor’s report 31 December 2022
Independent auditor’s report to the trustees of St Mary’s Fernham Residual Fund
Opinion
We have audited the accounts of St Mary’s Fernham Residual Fund (the ‘charity’) for the year ended 31 December 2022, which comprise the statement of financial activities, the balance sheet, the cash flows, the principal accounting policies and the notes to the accounts. 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 accounts:
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give a true and fair view of the state of the charity’s affairs as at 31 December 2022 and of its income and expenditure for the year then ended;
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have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
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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 auditor’s responsibilities for the audit of the accounts section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the accounts 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 accounts, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the accounts 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 accounts 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.
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Independent auditor’s report 31 December 2022
Other information
The trustees are responsible for the other information. The other information comprises the information included in the Annual Report and Accounts, other than the accounts and our auditor’s report thereon. Our opinion on the accounts does not cover the other information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the accounts, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the accounts 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 accounts 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.
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:
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the information given in the trustees’ report is inconsistent in any material respect with the accounts; or
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sufficient accounting records have not been kept; or
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the accounts are not in agreement with the accounting records and returns; or
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we have not received all the information and explanations we require for our audit.
Responsibilities of trustees
As explained more fully in the trustees’ responsibilities statement, the trustees are responsible for the preparation of the accounts 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 accounts that are free from material misstatement, whether due to fraud or error.
In preparing the accounts, 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.
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Independent auditor’s report 31 December 2022
Auditor’s responsibilities for the audit of the accounts
Our objectives are to obtain reasonable assurance about whether the accounts 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 accounts.
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.
How the audit was considered capable of detecting irregularities including fraud
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:
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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;
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we identified the laws and regulations applicable to the charity through discussions with representatives from the trustees, and from our knowledge and experience of the charity sector;
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we focused on specific laws and regulations which we considered may have a direct material effect on the accounts or the activities of the charity. These included but were not limited to 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 to the United Kingdom and Republic of Ireland (FRS 102) (effective 1 January 2019); and
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we assessed the extent of compliance with the laws and regulations identified above through making enquiries of those charged with governance and reviewed minutes of trustees’ meetings.
We assessed the susceptibility of the charity’s accounts to material misstatement, including obtaining an understanding of how fraud might occur, by:
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making enquiries of representatives from the trustees as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
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considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.
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Independent auditor’s report 31 December 2022
Auditor’s responsibilities for the audit of the accounts (continued)
How the audit was considered capable of detecting irregularities including fraud (continued)
To address the risk of fraud through management bias and override of controls, we:
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performed analytical procedures to identify any unusual or unexpected relationships;
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tested and reviewed journal entries to identify unusual transactions;
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performed substantive testing on expenditure including the authorisation thereof;
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assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and
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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:
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agreeing accounts disclosures to underlying supporting documentation;
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reading the minutes of meetings of trustees; and
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enquiring of representatives from the trustees 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 trustees 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 accounts is located on the Financial Reporting Council’s website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
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Independent auditor’s report 31 December 2022
Use of our report
This report is made solely to the charity’s trustees, as a body, in accordance with section 144 of the Charities Act 2011 and with regulations made under section 154 of that Act. Our audit work has been undertaken so that we might state to the charity’s trustees those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.
Buzzacott LLP Statutory Auditor 130 Wood Street London EC2V 6DL
30 October 2023
Buzzacott LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006
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Statement of financial activities Year to 31 December 2022
| Notes | Unrestricted funds £ |
Restricted funds £ |
2022 Total funds £ |
2021 Unrestricted funds £ |
|---|---|---|---|---|
| Income from: Donations and grants 1 Investments and interest receivable 2 Total income Expenditure on: Raising funds . Investment management and related advisory fees Charitable activities . Care of members of the Community and the support of their ministry 3 . Advancement of the Roman Catholic religion through the provision of grants 4 Total expenditure Net (expenditure) income before net investment (losses) gains 6 Net investment (losses) gains Net (expenditure) income and net movement in funds Reconciliation of funds: Total funds brought forward at 1 January 2022 Total funds carried forward at 31 December 2022 |
14,160 251,532 |
250,000 — |
264,160 251,532 |
7,402 260,869 |
| 265,692 | 250,000 | 515,692 | 268,271 | |
48,305 16,922 2,402,503 |
— — 70,482 |
48,305 16,922 2,472,985 |
54,922 19,661 1,118,256 |
|
| 2,467,730 | 70,482 | 2,538,212 | 1,192,839 | |
(2,202,038) (669,215) |
179,518 — |
(2,022,520) **(669,215) ** |
(924,568) 1,020,986 |
|
(2,871,253) 9,059,411 |
179,518 — |
(2,691,735) 9,059,411 |
96,418 8,962,993 |
|
6,188,158 |
179,518 |
6,367,676 |
9,059,411 |
All recognised gains and losses are included in the statement of financial activities above.
All activities of the charity derived from continuing operations during the above two financial years.
There were no restricted fuunds in the year to 31 December 2021.
St Mary’s Priory Fernham Residual Fund 21
Balance sheet 31 December 2022
| Notes | 2022 £ |
2022 £ |
2021 £ |
2021 £ |
|---|---|---|---|---|
| Fixed assets Tangible assets 9 Investments . Listed investments 10 Current assets Debtors 11 Cash at bank and in hand Current liabilities Creditors: amounts falling due within one year 12 Net current liabilities Total net assets Represented by: The funds of the charity Restricted funds 13 Unrestricted funds |
35,059 44,823 |
169,118 7,448,610 |
34,112 205,989 |
172,583 9,182,379 |
| 7,617,728 (1,250,052) |
9,354,962 (295,551) |
|||
| 79,882 (1,329,934) |
240,101 (535,652) |
|||
| 6,367,676 | 9,059,411 | |||
| 179,518 6,188,158 |
— 9,059,411 |
|||
| 6,367,676 | 9,059,411 |
Approved by the trustees and signed on their behalf by:
Rt Rev David Cuthbert Brogan
Trustee
Approved on: 24 October 2023
St Mary’s Priory Fernham Residual Fund 22
Statement of cash flows Year to 31 December 2022
| Notes | 2022 £ |
2021 £ |
|---|---|---|
| Cash flows from operating activities: Net cash used in operating activities A Cash flows from investing activities: Investment income and interest received Proceeds from the disposal of investments Purchase of investments Net cash provided by investing activities Change in cash and cash equivalents in the year Cash and cash equivalents at 1 January 2022 B Cash and cash equivalents at 31 December 2022 B |
(1,476,305) | (756,297) |
| 250,585 1,398,370 (410,280) |
259,249 1,134,540 (666,174) |
|
| 1,238,675 | 727,615 | |
| (237,630) 284,314 |
(28,682) 312,996 |
|
| 46,684 | 284,314 | |
| Notes to the statement of cash flows for the year to 31 December 2022. |
A Reconciliation of net movement in funds to net cash used in operating activities
| 2022 £ |
2021 £ |
|
|---|---|---|
| Net movement in funds (as per the statement of financial activities) Adjustments for: Depreciation charge Losses (gains) on investments Investment income and interest receivable Decrease in debtors Increase in creditors Net cash used in operating activities |
(2,691,735) 3,465 669,215 (251,532) — 794,282 |
96,418 3,698 (1,020,986) (260,869) 23,389 402,053 |
| (1,476,305) | (756,297) |
B Analysis of changes in cash and cash equivalents
| As at 1 January 2022 £ |
Cash flows £ (161,166) (76,464) (237,630) |
As at 31 December 2022 £ 44,823 1,861 46,684 |
|
|---|---|---|---|
| Cash at bank and in hand Cash held by investment managers Total cash and cash equivalents |
205,989 78,325 |
||
| 284,314 |
No separate statement of changes in net debt has been prepared as there is no difference between the movements in cash and cash equivalents and movement in net cash (debt).
St Mary’s Priory Fernham Residual Fund 23
Principal accounting policies 31 December 2022
The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the accounts are laid out below.
Basis of preparation
These accounts have been prepared for the year to 31 December 2022 with comparatives provided for the year to 31 December 2021.
The accounts have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant accounting policies below or the notes to these accounts.
The accounts 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 United Kingdom and Republic of Ireland (Charities SORP FRS 102) issued on 16 July 2014, the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.
The charity constitutes a public benefit entity as defined by FRS 102.
The accounts are presented in sterling and are rounded to the nearest pound.
Critical accounting estimates and areas of judgement
Preparation of the accounts requires the trustees to make judgments and estimates. The key judgements and estimates used in the preparation of these accounts are the estimated useful lives of tangible fixed assets for the purpose of determining the annual depreciation charge; the allocation of support costs; and estimating future income and expenditure flows for the purpose of assessing going concern (see below).
Assessment of going concern
The trustees have assessed whether the use of the going concern assumption is appropriate in preparing these accounts. The trustees have made this assessment in respect to a period of at least one year from the date of approval of these accounts.
The trustees will continue to keep both income and expenditure under review. Undoubtedly there will be challenges ahead but the trustees do not expect material concerns to arise over the charity’s financial position or going concern. The trustees have concluded that the charity will have sufficient resources to meet its liabilities as they fall due.
Income recognition
Income is recognised in the period in which the charity has entitlement to the income, the amount of income can be measured reliably and it is probable that the income will be received.
Income comprises donations, grants, investment income and interest receivable.
St Mary’s Priory Fernham Residual Fund 24
Principal accounting policies 31 December 2022
Income recognition (continued)
Donations, including salaries and pensions of individual religious received under Gift Aid or deed of covenant, and grants are recognised when the charity has confirmation of both the amount and settlement date. In the event of donations and/or grants being pledged but not received, the amount is accrued for where the receipt is considered probable. In the event that a donation and/or a grant is subject to conditions that require a level of performance before the charity is entitled to the funds, the income is deferred and not recognised until either those conditions are fully met, or the fulfilment of those conditions is wholly within the control of the charity and it is probable that those conditions will be fulfilled in the reporting period.
In accordance with the Charities SORP FRS 102 volunteer time is not valued and recognised in these accounts.
Investment income is recognised once the dividend has been declared and notification has been received of the dividend due.
Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the bank.
Resources expended and the basis of apportioning costs
Expenditure is included in the statement of financial activities when incurred and includes any attributable VAT which cannot be recovered.
Expenditure comprise costs of raising funds and charitable activities. Costs of raising funds comprises investment management fees. Expenditure on charitable activities includes expenditure on the charity’s primary charitable purposes as described in the trustees’ report. Such costs include:
-
(i) Expenditure on the care of members of the Community and their ministry. Such expenditure enables the members to contribute to religious work.
-
(ii) The advancement of the Roman Catholic religion through the provision of grants. These are included in the statement of financial activities when approved and when the intended recipient has either received the funds or been informed of the decision to make the donation and has satisfied all related conditions. Grants approved but not paid at the end of the financial year are accrued for.
Support and governance costs
Support costs represent indirect charitable expenditure. In order to carry out the primary purposes of the charity it is necessary to provide support in the form of financial procedures, provision of office services and equipment.
Governance costs comprise the costs involving the public accountability of the charity (including audit costs) and costs in respect to its compliance with regulation and good practice.
Support costs have been allocated directly to costs as incurred on activities.
St Mary’s Priory Fernham Residual Fund 25
Principal accounting policies 31 December 2022
Services provided by members of the Community
For the purposes of these accounts, no monetary value has been placed on the administrative and other services provided by the members of the Community.
Tangible fixed assets
All assets costing more than £200 and with an expected useful life exceeding one year are capitalised.
- Freehold land
The freehold land held by the charity comprises the cemetery attached to Fernham House in which some thirty members of the Community are buried. It is held in the accounts at £1.
- Freehold residential building
The freehold residential building is designed, and used wholly, as private residential accommodation. It is stated at cost but not depreciated. The value and condition of the property is reviewed annually by the trustees, who are satisfied that its residual value is not materially less than its book value.
Disposals and additions are accounted for on legal completion of the relevant transaction.
- Motor vehicles and computer equipment Expenditure on the purchase and replacement of both motor vehicles and computer equipment is stated at cost and depreciated over a four year period on a straight line basis.
Investments
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 charity does not acquire put options, derivatives or other complex financial instruments.
As noted above the main form of financial risk faced by the charity is that of volatility in equity markets and investment markets due to wider economic conditions, the attitude of investors to investment risk, and changes in sentiment concerning equities and within particular sectors or sub sectors.
Realised gains (or losses) on investment assets are calculated as the difference between disposal proceeds and their opening carrying value or their purchase value is acquired subsequent to the first day of the financial year. Unrealised gains and losses are calculated as the difference between the fair value at the year end and their carrying value at that date. Realised and unrealised investment gains (or losses) are combined in the statement of financial activities and are credited (or debited) in the year in which they arise.
St Mary’s Priory Fernham Residual Fund 26
Principal accounting policies 31 December 2022
Debtors
Debtors are recognised at their settlement amount, less any provision for nonrecoverability. Prepayments are valued at the amount prepaid. They have been discounted to the present value of the future cash receipt where such discounting is material.
Cash at bank and in hand
Cash at bank and in hand represents such accounts and instruments that are available on demand or have a maturity of less than three months from the date of acquisition.
Creditors and provisions
Creditors and provisions are recognised when there is an obligation at the balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Creditors and provisions are recognised at the amount the charity anticipates it will pay to settle the debt. They have been discounted to the present value of the future cash payment where such discounting is material.
Fund structure
The reserves are used to fulfil the charity’s objectives. The reserves policy is set out in the trustees' report.
Restricted funds comprise monies raised for, or their use restricted to, a specific purpose, or contributions subject to donor imposed conditions.
Unrestricted funds represent those monies which are freely available for application towards achieving any charitable purpose that falls within the charity’s charitable objects.
St Mary’s Priory Fernham Residual Fund 27
Notes to the accounts 31 December 2022
1 Income from: Donations and grants
| Unrestricted funds £ |
Restricted funds £ |
2022 Total funds £ 7,910 250,000 6,250 264,160 |
2021 Unrestricted funds £ |
|
|---|---|---|---|---|
| Pensions or other income of individual religious received under Deed of Covenant Grants receivable (see below) Donations received Total |
7,910 — 6,250 |
— 250.000 — |
7,402 — — |
|
| 14,160 | 250,000 |
7,402 |
During the year, the charity agreed a partnership with the St Barnabas Society (formerly the Converts’ Aid Society) to find a solution to the problems of the Sisters of the Blessed Virgin Mary in Kingstanding in Birmingham. This community is living in temporary rented accommodation and is in urgent need of a permanent home. The monks of Prinknash Abbey offered them shelter on their property. The St Barnabas Society and the charity worked together to see if the Prinknash Abbey property might prove suitable and the St Barnabas Society agreed to make a grant of £1 million available to the charity to assist with the refurbishment of the Prinknash Abbey property. £250,000 was made available to the charity during the year. However, subsequent to the year end, an alternative property became available to the Sisters which was accepted given their urgent needs. The grant received of £250,000 has been reimbursed during 2023 and the agreement with the St Barnabas Society formally and amicably ended. (See also note 16).
2 Income from: Investments and interest receivable
| Investment income . UK fixed interest . UK equities . Overseas fixed interest . Overseas equities . Alternatives Interest received . Interest on cash held by investment managers Total |
Unrestricted funds £ |
Restricted funds £ |
2022 Total funds £ |
2021 Unrestricted funds £ |
|---|---|---|---|---|
| 4,247 113,352 6,442 66,126 36,431 |
— — — — — |
4,247 113,352 6,442 66,126 36,431 |
20,331 149,177 10,604 51,406 29,351 |
|
| 226,598 24,934 |
— — |
226,598 24,934 |
260,869 — |
|
| 251,532 | — |
251,532 |
260,869 |
St Mary’s Priory Fernham Residual Fund 28
Notes to the accounts 31 December 2022
3 Expenditure on: Care of members of the Community and the support of their ministry
| Unrestricted funds £ |
Restricted funds £ |
2022 Total funds £ |
2021 Unrestricted funds £ |
|
|---|---|---|---|---|
| Living and personal expenses Depreciation of motor vehicle Cemetery expenses Allocated support costs (note 5) |
12,375 3,101 — |
— — — |
12,375 3,101 — |
16,250 3,101 — |
| 15,476 1,446 |
— |
15,476 1,446 |
19,351 310 |
|
| 16,922 | — |
16,922 | 19,661 |
St Mary’s Priory Fernham Residual Fund 29
Notes to the accounts 31 December 2022
4 Expenditure on: Advancement of the Roman Catholic religion through the provision of grants
| Unrestricted funds £ |
Restricted funds £ |
2022 Total funds £ |
2021 Unrestricted funds £ |
|
|---|---|---|---|---|
| Grants and donations Feasibility study costs Allocated support costs (note 5) |
2,381,838 — 20,665 |
— 70,482 — |
2,381,838 70,482 20,665 |
1,081,648 18,970 17,638 |
| 2,402,503 | 70,482 |
2,472,985 | 1,118,256 |
Feasibility study costs include expenditure on architects, surveyors and other professionals to establish the feasibility of the plans for development of a property on the estate of Prinknash Abbey, Gloucestershire (see notes 1 and 13).
The charity makes grants to advance the Roman Catholic religion. Grants are made to organisations in accordance with the policy set out in the trustees’ report.
The grants payable during the year were as follows:
| Recipient | Purpose ofgrant | 2022 £ |
2021 £ |
|---|---|---|---|
| St Augustine Abbey, Ramsgate St Michael’s Abbey Trust, Farnborough Carried forward |
Restoration of the historic rood screen at Chilworth Abbey, and replacement of confessional Repairs after water ingress For the restoration of the historic Cavaillé-Coll organ at Farnborough For the restoration of the bell turret For conservation works on the Farnborough Abbey church interior and windows Towards the restoration of Farnborough Abbey including ongoing projects including heating for the Abbey Church, and disabled access Emergency fund for the Abbot Visitor To purchase a car for the Visitor’s provincial work Additional grounds work as a result of work on the drive and dangerous trees Restoration of sacred vessels and ecclesiastical metalworks High Mass vestments - so that the Imperial historic and irreplaceable ‘Sultan of Turkey’ set can be removed from over use. Furnishings for the Grade One historic abbey church For university fees, accommodation, and expenses for a monk studying for ordination to the priesthood in our province To assist with living expenses for a monk on legitimate leave from his community. Church audio/security/livestream system Renewal of electrics Restoration of historic paintings Medical treatment for the fathers Travel etc for monks and candidates doing IELTS tests etc and Visa meetings Studies Br Stanislaus |
— 30,000 15,740 723,965 105,000 483,357 — — 5,019 40,000 — 120,000 — 27,000 80,000 584,394 100,000 2,896 10,573 10,640 |
20,000 — 6,250 30,000 616,626 120,000 10,000 4,990 56,476 — 7,000 39,000 7,600 20,000 — — — — — — |
| 2,338,584 | 937,942 |
St Mary’s Priory Fernham Residual Fund 30
Notes to the accounts 31 December 2022
- 4 Expenditure on: Advancement of the Roman Catholic religion through the provision of grants (continued)
| of grants(continued) | |||
|---|---|---|---|
| Recipient | Purpose ofgrant | 2022 £ |
2021 £ |
| Brought forward St Michael's Abbey Press, Farnborough (Controlled by – Empress Eugenie Memorial Trust a charity associated with St Michael’s Abbey, Farnborough) SBVM Kingstanding Chicago monks Prinknash Abbey The Ghana (Sunyani) Monastery Trust Convent of our Lady Stanbrook Benedictine University of Sant Anselmo Milane Kakone Corpus Christi Maiden Lane The Oxford Oratory of St Philip Neri |
Towards the costs of a tractor, trailer and topper for the Farnborough monks to maintain their estate and farm. Towards the purchase of a 'genie’ for Farnborough Abbey to give access to roofs for high-level work to gutters, thereby avoiding extensive scaffolding costs For running costs Towards urgent roof works Medical treatment for an Abbot For their garden project Theological studies for a brother of Kristo Buase Monastery in Ghana For formator’s course Sabbatical course for the former Abbess of Colwich To finance the liturgical studies of a priest student at the Benedictine University of Sant Anselmo Fr Milan Kakone studies maintenance donation For the Shrine of Blessed Carlo For their work and mission. |
2,338,584 — — 2,000 — — 20,000 5,000 5,780 4,330 1,644 2,500 2,000 — |
937,942 54,332 20,760 — 30,000 11,978 — 5,000 — — 1,636 — — 20,000 |
| 2,381,838 | 1,081,648 |
The Right Reverend Dom Cuthbert Brogan is a trustee of St Michael's Abbey Charitable Trust, Farnborough, The Prinknash Abbey Charities, The Ghana (Sunyani) Monastery Trust and Empress Eugenie Memorial Trust (Realty), which maintains Farnborough Abbey on behalf of St Michael’s Abbey. As Abbot Visitor of the English Province, he is Major Superior of the Province and, therefore involved with every monastery of the Province. He has made the other trustees aware of his various offices and membership of various trusts when seeking approval of grants payable to those charities.,
As noted above, grants of £2,363,584 (2021 - £1,010,012) were payable to these charities during the year. Grants of £1,248,895 (2021 - £476,786) payable to the St Michael’s Abbey Charitable Trust, were unpaid at 31 December 2022 and are included within creditors (note 12).
Dom Stanislaus Mycka is a member of the Empress Eugenie Memorial Trust (Realty) and the Saint Michael’s Abbey Trust. He took no part in the discussions relating to grants awarded to these charities.
Mother Winsome Durrant is a trustee of the Sisters of the Blessed Virgin Mary Trust. As explained in note 1 to these accounts, as at 31 December 2022 there was a possibility that the Sisters of the Blessed Virgin Mary Trust might occupy part of Prinknash following a major refurbishment to be funded from grants made by the charity. Mother Winsome took no part in discussions regarding the Prinknash Abbey feasibility plans.
St Mary’s Priory Fernham Residual Fund 31
Notes to the accounts 31 December 2022
5 Support costs
| Support costs | ||||
|---|---|---|---|---|
| Advancement of the Roman Catholic religion through the provision of grants £ |
Care of members of the Community and the support of their ministry £ |
2022 £ |
2021 £ |
|
| Insurance Other expenses Depreciation of computer equipment Governance costs . Auditor’s remuneration |
— 25 — 20,640 |
1,082 — 364 — |
1,082 25 364 20,640 |
1,115 6 597 16,230 |
| 20,665 | 1,446 | 22,111 | 17,948 |
Support costs have been allocated directly to costs as incurred on charitable activities.
| 2022 £ |
2021 £ |
|
|---|---|---|
| Advancement of the Roman Catholic religion through the provision of grants Care of members of the Community and the support of their ministry |
20,665 1,446 |
17,638 310 |
| 22,111 | 17,948 |
6 Net (expenditure) income before net investment (losses) gains
This is stated after charging:
| 2022 £ |
2021 £ |
|
|---|---|---|
| Depreciation Auditor’s remuneration (including VAT) . Statutory audit services . Other services: accountancy support .. Current year .. Prioryear |
3,465 11,400 6,600 2,640 |
3,698 9,030 4,200 3,000 |
7 Staff costs, key management personnel and trustees’ remuneration
The charity did not employ any staff during the year (2021 – none).
The trustees consider that they comprise the key management of the charity in charge of directing and controlling, running and operating the charity on a day to day basis. No trustees received any remuneration (2021 – none). No trustees were reimbursed expenses during the current or the previous year.
8 Taxation
St Mary’s Priory Fernham Residual Fund is a registered charity and, therefore, is not liable to income tax or corporation tax on income or gains derived from its charitable activities, as they fall within the various exemptions available to registered charities.
St Mary’s Priory Fernham Residual Fund 32
Notes to the accounts 31 December 2022
9 Tangible fixed assets
| Tangible fixed assets | |||||
|---|---|---|---|---|---|
| Freehold land £ |
Freehold Residential building £ |
Computer equipment £ |
Motor vehicles £ |
Total £ |
|
| Cost At 1 January 2022 and 31 December 2022 Depreciation At 1 January 2022 Charge for the year At 31 December 2022 Net book values At 31 December 2022 At 31 December 2021 |
1 | 168,616 |
2,387 |
12,405 |
183,409 |
| — — |
— — |
2,023 364 |
8,803 3,101 |
10,826 3,465 |
|
| — | — |
2,387 |
11,904 |
14,291 |
|
| 1 | 168,616 |
— |
501 |
169,118 |
|
| 1 | 168,616 |
364 |
3,602 |
172,583 |
10 Listed investments
| Listed investments | ||
|---|---|---|
| 2022 £ |
2021 £ |
|
| Listed investments Market value (fair value) at 1 January 2022 Additions at cost Disposals at book value (see below) Net unrealised (losses) gains Market value (fair value) 31 December 2022 Cash held by investment managers Cost of listed investments at 31 December 2022 |
9,104,054 410,280 (1,442,234) (625,351) |
8,551,434 666,174 (1,070,738) 957,184 |
| 7,446,749 1,861 |
9,104,054 78,325 |
|
| 7,448,610 | 9,182,379 | |
| 5,904,649 | 6,548,963 |
Disposals at book value included above are made up of the following:
| 2022 £ 1,398,370 43,864 1,442,234 |
2021 £ |
|
|---|---|---|
| Proceeds Net realised losses (gains) Disposals at book value |
1,134,540 (63,802) |
|
| 1,070,738 |
Listed investments held at 31 December 2022 comprised the following:
| 2022 £ |
2021 £ |
|
|---|---|---|
| UK fixed interest UK equities Overseas fixed interest Overseas equities Alternatives |
768,794 2,346,278 81,968 2,776,488 1,473,221 |
786,747 2,880,295 167,863 3,826,651 1,442,498 |
| 7,446,749 | 9,104,054 |
St Mary’s Priory Fernham Residual Fund 33
Notes to the accounts 31 December 2022
10 Listed investments (continued)
At 31 December 2022 listed investments included the following investment deemed material when compared to the overall portfolio valuation as at that date:
| Market value of holding £ 435,038 379,091 |
Percentage of portfolio % 5.84% 5.09% |
|
|---|---|---|
| JP Morgan Asset Managers (UK) US Equity Income Hedged K income units Shell PLC EUR0.07 Ordinary Shares (UK Quoted) |
||
| Debtors | 2022 £ |
2021 £ |
| Investment income and interest receivable Amount held by St Michael’s Abbey Charitable Trust on behalf of the charity (note 15) |
9,218 25,841 |
8,271 25,841 |
| 35,059 | 34,112 |
11 Debtors
12 Creditors: amounts falling due within one year
| Creditors: amounts falling due within one year | ||
|---|---|---|
| 2022 £ |
2021 £ |
|
| Donations payable Investment managers’ fees Accruals Expense creditors |
1,268,896 12,500 18,000 30,538 |
506,786 13,784 13,200 1,882 |
| 1,329,934 | 535,652 |
13 Restricted funds
The income funds of the charity include restricted funds comprising the following donation held on trust and to be applied for specific purposes:
| At 1 January 2022 £ |
Income £ |
Expenditure £ |
At 31 December 2022 £ |
|
|---|---|---|---|---|
| St Barnabas Societyfund | — | 250,000 | (70,482) | 179,518 |
The restricted funds of the charity include a grant received from St Barnabas Society towards the refurbishment of a designated portion of the monastic buildings at Prinknash, Abbey, Cranham, Gloucester so as to provide a suitable and permanent residence for the Sisters of the Blessed Virgin Mary of Kingstanding (the "Sisters"); the provision and maintenance of ongoing accommodation at Prinknash Abbey for the Sisters; and such other related work that St Barnabas Society and the charity were to agree. A grant of £1 million was awarded to the charity in accordance with an agreement dated 21 July 2022. During the year the charity expensed monies in relation to the feasibility study on the project. Subsequent to the year end, the grant has been reimbursed and the agreement with the St Barnabas Society formally and amicably ended (see notes 1 and 16).
St Mary’s Priory Fernham Residual Fund 34
Notes to the accounts 31 December 2022
14 Analysis of net assets between funds
| Analysis of net assets between funds | ||||
|---|---|---|---|---|
| General fund £ |
Restricted funds £ |
Total 2022 £ 169,118 7,448,610 (1,250,052) 6,367,676 |
||
| Fund balances at 31 December 2022 are represented by: Tangible fixed assets Listed investments Net current (liabilities) assets Total net assets |
169,118 7,448,610 (1,429,570) |
— — 179,518 |
||
| 6,188,158 | 179,518 | |||
| The funds of the charity include unrealised gains as follows: | 2022 £ |
2021 £ |
||
| Total unrealised gains: On investments Reconciliation of movements in unrealised gains Unrealised gains at 1 January 2022 In respect to disposals in year Net gains arising on revaluation in the year Unrealisedgains at 31 December 2022 |
1,542,100 | 2,555,091 | ||
| 2,555,091 (387,640) (625,351) |
1,900,532 (302,625) 957,184 |
|||
| 1,542,100 | 2,555,091 |
15 Transactions with trustees and related parties
During a period of transition from former trustees to the current trustees, and while the charity was in the process of addressing the complexities of transferring the bank mandate, the transactions of the charity were administered through a dedicated bank account held by St Michael’s Abbey Trust, Farnborough. As explained in note 4, Rt Rev David Cuthbert Brogan, is a trustee of that charity. During the year to 31 December 2021, the bank account received £648,075 and paid out £671,464 on behalf of the charity leaving a balance of £25,841. As of the year to 31 December 2022, this balance had not changed. This balance is included within debtors in note 11 and was repaid in 2023.
Other transactions connected to trustees are disclosed in notes 4 and 7 to the accounts with additional detail in note 1.
There were no other related party transactions requiring disclosure (2021 – none).
St Mary’s Priory Fernham Residual Fund 35
Notes to the accounts 31 December 2022
16 Post balance sheet events
As explained in note 1 to these accounts, during the year, the charity agreed a partnership with the St Barnabas Society (formerly the Converts’ Aid Society) to find a solution to the problems of the Sisters of the Blessed Virgin Mary in Kingstanding in Birmingham. This community is living in temporary rented accommodation and is in urgent need of a permanent home. The monks of Prinknash Abbey offered them shelter on their property. The St Barnabas Society and the charity worked together to see if the Prinknash Abbey property might prove suitable and the St Barnabas Society agreed to make a grant of £1 million available to the charity to assist with the refurbishment of the Prinknash Abbey property. £250,000 was made available to the charity during the year.
However, subsequent to the year end, another charitable trust offered to put a suitable property at the immediate disposal of the Sisters of the Blessed Virgin Mary of Kingstanding whose needs have become urgent because of the poor condition of their present residence.
Consequently, the grant received of £250,000 has been reimbursed during 2023 and the agreement with the St Barnabas Society formally and amicably ended.
The trustees have decided to continue to fund the feasibility study and will make a decision shortly about whether it is appropriate to continue with the provision of grants to Prinknash Abbey for the potential refurbishment project.
St Mary’s Priory Fernham Residual Fund 36