OpenCharities

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

2023-12-31-accounts

St Mary’s Priory Fernham Residual Fund

Annual Report and Accounts

31 December 2023

Charity Registration Number 229393

Contents

Reports

Reference and administrative information 1
Trustees’ report 2
Independent auditor’s report 10
Accounts
Statement of financial activities 15
Balance sheet 16
Principal accounting policies 17
Notes to the accounts 21

St Mary’s Priory Fernham Residual Fund

Reference and administrative information

Trustees Rt Rev David Cuthbert Brogan – Visitor
Mother Winsome Angela Durrant
Rev Dom Brendan Patrick Creeden
Rev Dom Michal Dymitr Mycka
Fra Richard John Berkley-Matthews
Mr Richard Hawker)
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 Metro Bank plc
One Southampton Row
London
WC1B 5HA
Investment managers Rathbone Investment Management Limited
8 Finsbury Circus
London
EC2M 7AZ
Solicitors Irwin Mitchell LLP
Davidson House
Forbury Square
Reading
RG1 3EU

St Mary’s Priory Fernham Residual Fund 1

Trustees’ report 31 December 2023

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 2023.

The accounts have been prepared in accordance with the accounting policies set out on pages 17 to 20 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 remaining member of the Community, 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 the remaining member of St Mary’s Priory

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.

St Mary’s Priory Fernham Residual Fund 2

Trustees’ report 31 December 2023

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 2023 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. The primary aim of grants would be, as stated in the trust deed, the advancement of the Roman Catholic religion. The trustees’ policy is to distribute excess income but this does not preclude 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 Subiaco-Cassinese Congregation, and the other Catholic causes.

The trustees currently take 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 Abbot Visitor is an ex officio trustee but it is the properly constituted Trust body that makes decisions concerning the management policy of the trust and, as a civil trust, it is not subject or answerable to any ecclesiastical individual or body, and has absolute discretion to make grants as it sees fit in accordance with the Trust Deed.

St Mary’s Priory Fernham Residual Fund 3

Trustees’ report 31 December 2023

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. In 2023 a number of grants were made to assist religious students. Course fees were paid for a young Polish priest who is undertaking doctoral research in liturgy at the Benedictine Liturgical Institute at Sant Anselmo in Rome.

Several monk students of the English Province of the Subiaco Congregation were assisted. One of these completed his studies in 2023 and was ordained to the priesthood in June 2023. A second is approaching the end of this studies at the Collegio Beda in Rome and will be ordained deacon in June 2024. A young priest of the Syrian Catholic Church was awarded a grant toward his pastoral studies which will help in the work of rebuilding the Church in Iraq. A monastery in Brazil of the Subiaco Cassinese Congregation was awarded a grant towards the studies of one of its young monks. The wider monastic family was assisted in the decision to award grants to a house of Benedictine nuns, firstly to assist in a conference concerning monastic history and secondly to send one of its members to the established conference for monastic formators in Rome.

The trustees continued in 2023 the major project of the restoration of the Grade One Listed Buildings of St Michael’s Abbey, Farnborough, Hampshire. This includes provision of heating for the first time in fifteen years. The system has employed geo-thermal technology. The renewal of the electrics has not only provided a sympathetic lighting system, but also fire detection system (including the roof space) and equipment for live-streaming of the liturgical offices, thereby giving extensive public access to the daily round of monastic worship. It is envisaged that the St Michael’s Abbey projects awarded grants will be completed in August of 2024.

St Mary’s Priory Fernham Residual Fund 4

Trustees’ report 31 December 2023

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 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 negative £46,281 (2022 – £515,692). Income comprises £192,468 (2022 – £226,598) from investments and donations were negative £240,471 (2022 – £264,160). Donations include £8,502 (2022 – £7,910) from pensions of individual religious received under Deed of Covenant and the reimbursement of a restricted donation of £250,000 from St Barnabas Society to fund the Prinknash Abbey project, which was cancelled during the year.

Expenditure totalled £1,243,423 compared to £2,538,212 in 2022. 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 £1,094,878 as compared to £2,381,838 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 £1,289,704 (2022 – £2,022,520). Investment gains totalled £227,390 (2022 – £669,215 losses) and net expenditure and net decrease in funds therefore, amounted to £1,062,314 (2022 – £2,691,735).

Investment performance

The charity has a portfolio of investments with a market value at 31 December 2023 of £5,396,629 (2022 – £7,448,610) including cash awaiting investment of £16,503 (2022 – £1,861).

During the year, the charity’s investments achieved an income yield of 3.00% (2022 – 2.74%) and a capital yield of plus 3.55% (2022 – minus 8.09%). 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.

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.

St Mary’s Priory Fernham Residual Fund 5

Trustees’ report 31 December 2023

FINANCIAL REVIEW (continued)

Reserves policy and financial position (continued)

Reserves policy (continued)

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 £5,305,362 (2022 – £6,367,676) of which £nil (2022 – £179,518) are restricted funds and £5,305,362 (2022 – £6,188,158) 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.

St Mary’s Priory Fernham Residual Fund 6

Trustees’ report 31 December 2023

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:

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.

St Mary’s Priory Fernham Residual Fund 7

Trustees’ report 31 December 2023

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.

No trustees received remuneration in connection with their duties as a trustee (2022: none).

No trustees received reimbursement for travel expenses in the year (2022 – £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.

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.

St Mary’s Priory Fernham Residual Fund 8

Trustees’ report 31 December 2023

GOVERNANCE, STRUCTURE AND MANAGEMENT (continued)

Risk management (continued)

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:

Trustee Date:

St Mary’s Priory Fernham Residual Fund 9

Independent auditor’s report 31 December 2023

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 2023, which comprise the statement of financial activities, the balance sheet, 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:

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.

St Mary’s Priory Fernham Residual Fund 10

Independent auditor’s report 31 December 2023

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:

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.

St Mary’s Priory Fernham Residual Fund 11

Independent auditor’s report 31 December 2023

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:

We assessed the susceptibility of the charity’s accounts to material misstatement, including obtaining an understanding of how fraud might occur, by:

St Mary’s Priory Fernham Residual Fund 12

Independent auditor’s report 31 December 2023

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:

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

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.

St Mary’s Priory Fernham Residual Fund 13

Independent auditor’s report 31 December 2023

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

21 October 2024

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

St Mary’s Priory Fernham Residual Fund 14

Statement of financial activities Year to 31 December 2023

Notes Unrestricted
funds
£		 Restricted
funds
£		 2023
Total
funds
£		 Unrestricted
funds
£
Restricted
funds
£
2022
Total
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 before transfers
Transfers between funds
13
Net (expenditure) income and net movement in
funds
Reconciliation of funds:
Total funds brought forward at 1 January 2023

Total funds carried forward at 31 December 2023
9,529

194,190		 (250,000)
—		 (240,471)
194,190		 14,160
251,532
250,000

—
264,160

251,532
203,719 (250,000) **(46,281) ** 265,692
250,000
515,692



35,005

15,227
1,114,678


—


—

78,513


35,005


15,227

1,193,191		 48,305
16,922
2,402,503
—

—

70,482
48,305

16,922

2,472,985
1,164,910
78,513
1,243,423		 2,467,730
70,482
2,538,212

(961,191)

227,390
(328,513)

—
(1,289,704)

227,390		 (2,202,038)
(669,215)
179,518
—		 (2,022,520)

(669,215)

(733,801)


(148,995)
(328,513)

148,995
(1,062,314)

—		 (2,871,253)
—
179,518

—		 (2,691,735)

—

(882,796)


6,188,158
(179,518)


179,518
(1,062,314)


6,367,676		 (2,871,253)
9,059,411
179,518

—		 (2,691,735)

9,059,411

5,305,362
—
5,305,362		 6,188,158
179,518
6,367,676

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.

St Mary’s Priory Fernham Residual Fund 15

Balance sheet 31 December 2023

Notes
2023
£		 2023
£		 2022
£		 2022
£
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







7,956
36,543		 168,617

5,396,629		 35,059
44,823		 169,118
7,448,610
5,565,246











(259,884)
 7,617,728



(1,250,052)
44,499

(304,383)		 79,882
(1,329,934)










5,305,362 6,367,676



—
5,305,362		 179,518
6,188,158
5,305,362 6,367,676

Approved by the trustees and signed on their behalf by:

Trustee

Approved on:

St Mary’s Priory Fernham Residual Fund 16

Principal accounting policies 31 December 2023

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 2023 with comparatives provided for the year to 31 December 2022.

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), 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. There are no key estimates for the year ended 31 December 2023 or 2022.

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 17

Principal accounting policies 31 December 2023

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:

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 18

Principal accounting policies 31 December 2023

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.

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.

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.

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 19

Principal accounting policies 31 December 2023

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.

Cash flow statement

The charity has taken advantage of the exemptions within the Charities SORP FRS 102 from the requirement to prepare a statement of cashflows.

St Mary’s Priory Fernham Residual Fund 20

Notes to the accounts 31 December 2023

1 Income from: Donations and grants

Unrestricted
funds
£		 Restricted
funds
£		 2023
Total
funds
£

8,502

(250,000)

1,027

(240,471)		 2022
Unrestricted
funds
£
Pensions or other income of individual religious
received under Deed of Covenant
Grants receivable (see below)
Donations received
Total		 8,502
—
1,027		 —
(250,000)
—		 7,910
250,000
6,250
9,529
-250,000		 264,160

During the prior, 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 prior year. However, in the current year, 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 13).

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		 2023
Unrestricted
funds
£		 2022
Unrestricted
funds
£
30,760
60,374
5,551
56,811
38,972		 4,247
113,352
6,442
66,126
36,431
192,468
1,723		 226,598
24,934
194,191 251,532

St Mary’s Priory Fernham Residual Fund 21

Notes to the accounts 31 December 2023

3 Expenditure on: Care of members of the Community and the support of their ministry

ministry
Living and personal expenses
Depreciation of motor vehicle
Allocated support costs (note 5)		 2023
Unrestricted
funds
£		 2022
Unrestricted
funds
£
13,500
501		 12,375
3,101
14,001
1,226		 15,476
1,446
15,227 16,922

4 Expenditure on: Advancement of the Roman Catholic religion through the provision of grants

Unrestricted
funds
£
1,094,878
—-
19,800
1,114,678		 Restricted
funds
£		 2023
Total
funds
£



Unrestricted
funds
£
Restricted
funds
£
2022
Unrestricted
funds
£
Grants and donations
Feasibility study costs
Allocated support costs (note 5)
—-

78,513

—		 1,094,878

78,513
19,800
2,381,838

—

20,665		 —
70,482
—		 2,381,838
70,482
20,665

78,513		 1,193,191
2,402,503		 70,482 2,472,985

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

St Michael’s Abbey Trust,
Farnborough
























Carried forward		 Purpose ofgrant 2023
£		 2022
£
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
Additional grounds work as a result of work on the drive
and dangerous trees
Restoration of sacred vessels and ecclesiastical
metalworks
Furnishings for the Grade One historic abbey church
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
Towards Church Building Works		 (3,761)
—
38,478
(29,636)
196,410
—
11,404
(43,503)
—
29,058
561,742
(18,928)
—
—
—
343,861		 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

—
1,085,125
2,338,584

St Mary’s Priory Fernham Residual Fund 22

Notes to the accounts 31 December 2023

4 Expenditure on: Advancement of the Roman Catholic religion through the provision of grants (continued)

of grants(continued)
Recipient Purpose ofgrant 2023
£		 2022
£
Brought forward
St Joseph-Bzovik
Brazil Monestary
SBVM Kingstanding
Prinknash Abbey
The Ghana (Sunyani) Monastery
Trust
Convent of our Lady Stanbrook
Benedictine University of Sant
Anselmo
Milane Kakone
Church in Slovakia
Corpus Christi Maiden Lane
Portsmouth Diocese
Dom Hugh Nichols
Abbey of Santa Cecilia		 Study assistance for one of the Brothers
For running costs
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
Study Day for 500thAnniversary
To finance the liturgical studies of a priest student at the
Benedictine University of Sant Anselmo
Fr Milan Kakone studies maintenance donation
Restoration of the historic altar
For the Shrine of Blessed Carlo
Visa Processing
Towards Theological Studies in Rome
Gregorian Chant Programme		 1,085,125
2,465
1,146
—
(20,000)
—
—
—
500
1,785
3,500
3,571
—
419
12,000
4,367		 2,338,584
—
—
2,000
20,000
5,000
5,780
4,330
—
1,644
2,500
—
2,000
—
—
—
1,094,878 2,381,838

Negative items included above relate to grants which were cancelled during the year as a result of the expenditure incurred being less than the initial award.

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 £1,085,125(2022 – £2,363,584) were payable to these charities during the year. Grants of £256,217 (2022 – £1,248,895) payable to the St Michael’s Abbey Charitable Trust, were unpaid at 31 December 2023 and are included within creditors (note 12). A £20,000 write-back (2022 – £nil) of a grant to Prinknash Abbey was made during the year. No other grants were made to Prinknash Abbey during 2023 (2022 – £20,000 was accrued). Donations of £6,250 (2022 – £nil) were received from Prinknash.

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. During the year to 31 December 2023 the decision was made not to proceed with the move and the feasibility study was cancelled. Mother Winsome took no part in discussions regarding the Prinknash Abbey feasibility plans.

St Mary’s Priory Fernham Residual Fund 23

Notes to the accounts 31 December 2023

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
£		 2023
£		 2022
£
Insurance
Other expenses
Depreciation of computer equipment
Governance costs
. Auditor’s remuneration		 —
—
—
19,800		 1,226
—
—
—		 1,226
—
—
19,800		 1,082
25
364
20,640
19,800 1,226 21,026 22,111

Support costs have been allocated directly to costs as incurred on charitable activities.

2023
£		 2022
£
Advancement of the Roman Catholic religion through the provision of
grants
Care of members of the Community and the support of their ministry		 19,800
1,226		 20,665
1,446
21,026 22,111

6 Net (expenditure) income before net investment (losses) gains

This is stated after charging:

2023
£		 2022
£
Depreciation
Auditor’s remuneration (including VAT)
. Statutory audit services
. Other services: accountancy support
.. Current year
.. Prioryear		 501
14,400
5,400
—		 3,465
11,400
2,640
3,465

7 Staff costs, key management personnel and trustees’ remuneration

The charity did not employ any staff during the year (2022 – 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 (2022 – 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 24

Notes to the accounts 31 December 2023

9 Tangible fixed assets

Cost
At 1 January 2023 and 31 December 2023
Depreciation
At 1 January 2023
Charge for the year
At 31 December 2023
Net book values
At 31 December 2023
At 31 December 2022		 Freehold
land
£
Freehold
Residential
building
£

Computer
equipment
£
Motor
vehicles
£
Total
£
1
168,616
2,387
12,405
183,409
—
—
—

—
2,387

—
11,904

501
14,291

501
—
—
2,387
12,405
14,792
1
168,616
—
—
168,617
1
168,616
—
501
169,118

10 Listed investments

Listed investments
2023
£		 2022
£
Listed investments
Market value (fair value) at 1 January 2023
Additions at cost
Disposals at book value (see below)
Net unrealised (losses) gains
Market value (fair value) 31 December 2023
Cash held by investment managers
Cost of listed investments at 31 December 2023		 7,446,749
543,518
(2,809,283)
199,142		 9,104,054
410,280
(1,442,234)
(625,351)
5,380,126
16,503		 7,446,749
1,861
5,396,629 7,448,610
4,297,318 5,904,649

Disposals at book value included above are made up of the following:

2023
£
2,837,531
(28,248)
2,809,283		 2022
£
Proceeds
Net realised losses (gains)
Disposals at book value		 1,398,370
43,864
1,442,234

Listed investments held at 31 December 2023 comprised the following:

2023
£		 2022
£
UK fixed interest
UK equities
Overseas fixed interest
Overseas equities
Alternatives		 914,330
1,176,855
—
2,514,848
774,093		 768,794
2,346,278
81,968
2,776,488
1,473,221
5,380,126 7,446,749

St Mary’s Priory Fernham Residual Fund 25

Notes to the accounts 31 December 2023

10 Debtors

Debtors
2023
£		 2022
£
Investment income and interest receivable
Amount held by St Michael’s Abbey Charitable Trust on behalf of the
charity (note 15)		 7,956
—		 9,218
25,841
7,956 35,059

11 Creditors: amounts falling due within one year

Creditors: amounts falling due within one year
2023
£		 2022
£
Donations payable
Investment managers’ fees
Accruals
Expense creditors		 273,083
8,500
22,800
—		 1,268,896
12,500
18,000
30,538
304,383 1,329,934

12 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:

St Barnabas Societyfund At 1
January
2023
£
179,518		 Income
£
(250,000)		 Expenditure
£
(78,513)		 Transfers
£
At 31
December
2023
£
148,995
—

The above fund relates to a grant received from St Barnabas Society that was due to be used 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, of which £250,000 was received during the year ended 31 December 2023. During the current and prior year, the charity expensed monies in relation to the feasibility study on the project. However, during the year 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 26

Notes to the accounts 31 December 2023

13 Analysis of net assets between funds

Analysis of net assets between funds
General
fund
£		 Restricted
funds
£		 Total
2023
£
168,617
5,396,629
(259,884)
5,305,362
Fund balances at 31 December 2023 are represented by:
Tangible fixed assets
Listed investments
Net current (liabilities) assets
Total net assets		 168,617
5,396,629
(259,884)		 —
—
—
5,305,362 —
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: 2023
£
1,082,808
1,542,100
(658,434)
199,142
1,082,808		 2022
£
Total unrealised gains:
On investments
Reconciliation of movements in unrealised gains
Unrealised gains at 1 January 2023
In respect to disposals in year
Net gains arising on revaluation in the year
Unrealisedgains at 31 December 2023		 1,542,100
2,555,091
(387,640)
(625,351)
1,542,100

14 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. As at 31 December 2022 the bank account had a balance of £25,841, which was included within debtors in these financial statements. The balance was transferred to the charity during the current year.

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 (2022 – none).

St Mary’s Priory Fernham Residual Fund 27