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2020-12-31-accounts

REGISTERED CHARITY NUMBER: 230948

Report of the Trustees and

Audited Financial Statements

for the Year Ended 31 December 2020

for

THE SOCIETY OF ST PAUL THE APOSTLE

Harmer Slater Limited Chartered Accountants & Registered Auditors Salatin House 19 Cedar Road Sutton Surrey SM2 5DA

THE SOCIETY OF ST PAUL THE APOSTLE

Contents of the Financial Statements for the Year Ended 31 December 2020

Page
Report of the Trustees 1 to 6
Report of the Independent Auditors 7 to 10
Statement of Financial Activities 11
Statement of Financial Position 12 to 13
Statement of Cash Flows 14
Notes to the Statement of Cash Flows 15
Notes to the Financial Statements 16 to 29
Detailed Statement of Financial Activities 30 to 31

THE SOCIETY OF ST PAUL THE APOSTLE

Report of the Trustees for the Year Ended 31 December 2020

The trustees present their report with the financial statements of the charity for the year ended 31 December 2020. The trustees have adopted the provisions 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 UK and Republic of Ireland (FRS 102) (effective 1 January 2019).

OBJECTIVES AND ACTIVITIES

Objectives and aims

The Society, through the activities of its priests and brothers, aims to spread the Gospel through the media of social communication as expressed in the constitution and other official documents of the Society of St Paul the Apostle.

The original trust deed dated 10th November 1955 and the supplemental trust deed dated 5th July 2021 requires the trustees to hold the trust fund and the income thereof upon trust to apply the same either as capital or as income for the advancement of the Roman Catholic religion in England and Wales by such lawful charitable means in keeping with the aims of the Society as the trustees think fit.

The Society's main objects are:-

(a) the perfection of charity (to be attained through the spirit and practice of the evangelical counsels of poverty, chastity and obedience in common life) and the evangelisation of humankind through its apostolic activity in and through the media of social communication.

(b) to assist all sections of the society and especially the simple, the poor and the masses far away from truth and religion to a better knowledge of the truth about Jesus Christ and the Christian religion, and with that object, and generally, to promote the circulation of and to disseminate books, other publications and audio visual products inculcating and advancing the truth about Jesus Christ, his sacrifice mission and the Good News of God's love for humankind.

Significant activities

The Charity consists of the St Paul multimedia centres in London, Leeds and Birmingham, and the Community and Publishing Divisions. Surplus stocks of books are stored in the St Paul distribution centre in Manchester.

The St Paul distribution centre in Manchester became a wholesale division of St Paul, engaged in the distribution and promotion of books and products from the UK and overseas, covering a wide range of subjects. It stocks and distributes St Paul publications, books and products from other publishers and distributors for which St Paul has distribution rights.

The St Paul centre in Manchester has enabled improved logistics and distribution of St Paul publications within the UK and outside.

Page 1

THE SOCIETY OF ST PAUL THE APOSTLE

Report of the Trustees for the Year Ended 31 December 2020

OBJECTIVES AND ACTIVITIES

Public benefit

The trustees have had regard to the Charity Commission's guidance on public benefit.

One of the principal commitments of the Society in terms of its mission is integrating with the organic pastoral actions of the Church, both on a general and a local level. The Charity, through its religious order of priests and brothers does this by cooperating with local churches in areas of social communication and dovetailing its own programmes with those of the Church.

Besides employing the media of social communication with the objective of evangelisation, the Society also trains people to use these media for their own well-being and development, for healthy relaxation and spiritual uplift.

The Society contributes to the education of readers, viewers and listeners through appropriate publications and aids. Furthermore, by focusing on the content of publications, the Society carries out various undertakings of a formative-teaching nature in aid of schools, institutes and associations.

The Society seeks to evangelise the more educated classes, those who represent the field of letters, science and the arts: persons who often exert a determining influence on public opinion. With this in mind the Society encourages its members to cultivate specialised research studies. Two members of the Society continue their research studies in Journalism and Media Management.

ACHIEVEMENT AND PERFORMANCE

Charitable activities

It is the policy of the Charity to further the advancement of the Roman Catholic religion by undertaking a range of charitable activities.

The principal charitable activities of the St Paul multimedia centres are the dissemination of books, periodical publications, CDs, DVDs, mini media, etc that contribute to pre-evangelisation and furtherance of the Roman Catholic faith so that all human thought and knowledge will be permeated by the Gospel.

The principal charitable activities of the Community and Publishing Divisions are that of looking after the community of priests and brothers of the society and publishing books and multimedia products.

Fundraising activities

The principal fundraising activities of the Charity are the trading activities to achieve the charitable objectives, carried out through the St Paul multimedia centres, publishing and distribution activities. The Charity does not carry out significant fundraising from the public; it does not engage in any fundraising activities directly or indirectly. The Charity has converted a building into residential flats to generate a consistent source of additional funds to achieve its objectives.

Page 2

THE SOCIETY OF ST PAUL THE APOSTLE

Report of the Trustees for the Year Ended 31 December 2020

FINANCIAL REVIEW

Financial position

The London multimedia centre is the central point of all operations of the Society of St Paul the apostle, including publishing, distribution and multimedia, and it provides support to the other multimedia centres in Birmingham and Leeds. The Society believes that these centres serve and contribute to the objectives of the Charity. The operations in these centres are regularly reviewed to ensure that they achieve their stated goals.

Due to the Covid-19 pandemic, this year has been a challenging one for the Society of St Paul the apostle. However, despite the difficulties, the Charity continued to serve the community during the pandemic within the operating guidelines of the government. In its effort to reach out to a wider community, the Charity focused on e-marketing, thus reducing the physical barriers in reaching out to a wider community. The Charity is hoping to expand to Scotland, with a view to operationalising this in the next few months, and legal formalities are underway in order to establish a multi-media centre in Edinburgh.

Investment policy and objectives

The Society has decided to continue to invest more in developing its website and online marketing in order to reach out to a larger number of people. Therefore, it has decided to revamp the existing website to have greater functionality and to have more products displayed through it.

Reserves policy

The Reserves Fund represents the unrestricted funds arising from past operating results. It also represents the free reserves of the Society, which includes its fixed assets. The trustees are satisfied that the cash reserves of £268,415 are sufficient to meet the medium term direct charitable expenditure.

Going concern

Although turnover has reduced during the lockdown period and subsequently, the prompt steps and procedures implemented by the Charity have helped to keep costs to a minimum. Opening its media centres (with the exception of Hinsley) and the distribution division have helped to achieve a reasonable turnover. The additional source of regular funds generated from the investment property will also help the Charity. The legacy of prudent financial management over many years and the Charity's strong place in its market will enable it to operate in this exceptionally difficult period.

FUTURE PLANS

In line with one of the key objectives of the Trust, the first activity the Charity intends to begin in early 2022 is a Christian Book Centre which will cater to the Christian populations in Scotland, especially in Edinburgh. This centre will supply value-based and Christian literature and will also supply religious articles necessary for liturgical celebrations. Besides, it will also cater to both young Catholics in their faith formation, as well as mature Catholics for their ongoing faith formation. The Charity also intends to begin publishing and distribution of Christian literature in Scotland in the future. This will promote local authors and local culture. The new multi-media centre will be located in a property leased out to the Trust by the Archdiocese of St Andrews & Edinburgh, situated at 61 York Place, Edinburgh, EH1 3JD. The furnishing of the proposed book centre is underway, and the trustees hope to begin trading activities shortly. At the request of the Archbishop, the Order will also offer priestly ministry to the Catholics in Edinburgh.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The Charity is controlled by its governing document, a deed of trust, and constitutes an unincorporated charity.

The accounts accompanying this report are the accounts of the charitable trust of the Province of England and Wales. The trust is governed by a trust deed dated 10th November 1955 and is registered with the Charity Commission as 'The Society of St Paul the Apostle', charity registration number 230948.

Page 3

THE SOCIETY OF ST PAUL THE APOSTLE

Report of the Trustees for the Year Ended 31 December 2020

STRUCTURE, GOVERNANCE AND MANAGEMENT

Recruitment and appointment of new trustees

The trustees are appointed by a deed of appointment between the new trustees and the continuing trustees. The trustees are from the Religious Community of the Society of St Paul.

Organisational structure

The trustees in office during the year and up to the date of signing this report were as follows: Rev Fr Joshy Joseph Thumpakattu Chairman Rev Fr Jose Mathew Rev Fr Celso Godilano Rev Dn Jose Jereus Bangcaya

Decision making

The Society's mission involves the use of substantial assets and this brings with it, as a consequence, complex and wide-ranging administrative tasks. The board of trustees, who are members of the Society, are responsible for the acquisition and management of all material goods needed for furthering the Society's charitable objectives. A wider consultation and deliberation is undertaken when a major decision or investment is required which involves the Directors of Publication, Media Management and Multimedia Centres.

Wider network

The Society of St Paul the Apostle is an international Roman Catholic religious congregation founded in Alba, Italy in 1914. The general governing body is located in Rome. The Society is divided into a number of separate provinces in various parts of the world.

Related parties

The Society of St Paul the Apostle, London is the head office of the mission for the U.K. It is closely associated with the mission and activities in Maynooth, Ireland, as both same societies share the same goal and mission. For the Society of St Paul, UK and Ireland are considered as one region and any trading transactions between these two societies is treated as in the normal course of business.

All other societies in the various countries are independent and only related as being under the same religious congregation. However, any trading transactions with societies in the various countries are treated as in the normal course of business.

Risk management

The trustees have conducted a review and assessed the major risks to which the charity is exposed, in particular those in relation to the operations and finances of the Charity. They are satisfied that a risk mitigation procedure appropriate for their expansion has been implemented.

REFERENCE AND ADMINISTRATIVE DETAILS Registered Charity number

230948

Principal address

Morpeth Terrace Victoria London SW1P 1EP

Page 4

THE SOCIETY OF ST PAUL THE APOSTLE

Report of the Trustees for the Year Ended 31 December 2020

Trustees

The trustees in office during the year were as stated in the organisational structure.

The titles to the certain properties have been held in the name of founder trustees and other trustees who are no longer on the board. They are the late Rev Fr Sebastian Karamvelil SSP, Rev Fr Aderico Dolzani SSP and Rev Fr Joseph Nechikattil SSP. All of them were or are members of the religious congregation. The Society is in the process of transferring the titles to the current trustees.

Rev Fr Joby Madan SSP is the Chief Executive of the Society and is in charge of the Social Media Management. He together with the other trustees is actively involved in the day-to-day affairs of the Society. The senior management to whom the trustees delegate the day-to-day management responsibilities are:

Dr Christopher Shell London Multimedia Centre Mr Lorenzo Torri Birmingham Multimedia Centre Mrs Catherine Whatmough Hinsley Hall Multimedia Centre Mr Valerio Colombo Manchester St Pauls Distribution Mr Jose Lopes Finance/Accounts

Auditors

Harmer Slater Limited Chartered Accountants & Registered Auditors Salatin House 19 Cedar Road Sutton Surrey SM2 5DA

Solicitors

Martin Shepherd Solicitors LLP 753 High Road North Finchley London N12 8LG

EVENTS SINCE THE END OF THE YEAR

Information relating to events since the end of the year is given in the notes to the financial statements.

STATEMENT OF DISCLOSURE TO THE AUDITORS

Each trustee has taken steps that they ought to have taken as a trustee in order to make themselves aware of any relevant audit information (as defined by the Charities Act 2011) and to establish that the charity's auditors are aware of that information. The trustees confirm that there is no relevant information that of and of which the auditors are unaware.

Mani Chacko & Co Ltd resigned as the charity's auditors during 2020. Harmer Slater Ltd were appointed to fill the vacancy and have express their willingness to continue in office. A resolution for the reappointment of Harmer Slater Limited will be proposed at the forthcoming annual general meeting.

STATEMENT OF TRUSTEES' RESPONSIBILITIES

The trustees are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) including Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland"

Page 5

THE SOCIETY OF ST PAUL THE APOSTLE

Report of the Trustees for the Year Ended 31 December 2020

STATEMENT OF TRUSTEES' RESPONSIBILITIES - continued

The law applicable to charities in England and Wales, the Charities Act 2011, Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charity for that period. In preparing those financial statements, the trustees are required to

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

Approved by order of the board of trustees on 20 DECEMBER 2021 and signed on its behalf by:

Joshy Joseph Signed on 21/12/21 @ 11:16 .................................................................

Rev Fr Joshy J Thumpakattu - Trustee

Page 6

Report of the Independent Auditors to the Trustees of The Society of St Paul the Apostle

Qualified opinion

We have audited the financial statements of The Society of St Paul the Apostle (the 'charity') for the year ended 31 December 2020 which comprise the Statement of Financial Activities, the Statement of Financial Position, the Statement of Cash Flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

In our opinion, except for the effects of the matter described in the Basis for qualified opinion on financial statements paragraph, the financial statements:

Basis for qualified opinion on the financial statements

We were not appointed as auditor of the charity until after 31 December 2020 and thus did not observe the counting of physical inventories at the end of the year. We were unable to satisfy ourselves by alternative means concerning the inventory quantities held at 31 December 2020, which are included in the balance sheet at £826,675, by using other audit procedures. Consequently we were unable to determine whether any adjustment to this amount was necessary.

We conducted our audit in accordance with International Standards on Auditing (UK) (iss (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the fri'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 qualified opinion.

Conclusions relating to going concern

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

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

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

Page 7

Report of the Independent Auditors to the Trustees of The Society of St Paul the Apostle

Other information

The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Matters on which we are required to report by exception

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

Responsibilities of trustees

As explained more fully in the Statement of Trustees' Responsibilities, the trustees are responsible for the preparation of the financial statements which give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Page 8

Report of the Independent Auditors to the Trustees of The Society of St Paul the Apostle

Our responsibilities for the audit of the financial statements

We have been appointed as auditors under Section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

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

The extent to which 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 company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

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:

Page 9

Report of the Independent Auditors to the Trustees of The Society of St Paul the Apostle

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Independent Auditors.

Use of our report

This report is made solely to the charity's trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. 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 auditors' 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.

Harmer Slater Limited, Statutory Auditor Salatin House 19 Cedar Road Sutton Surrey SM2 5DA

20 December 2021

Harmer Slater Limited is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.

Page 10

THE SOCIETY OF ST PAUL THE APOSTLE

Statement of Financial Activities for the Year Ended 31 December 2020

Notes
INCOME AND ENDOWMENTS FROM
Donations and legacies
2
Other trading activities
3
Investment income
4
Total
EXPENDITURE ON
Raising funds
5
Charitable activities
6
Multimedia centres
Publishing & community
Other
Total
Net gains on investments
NET INCOME/(EXPENDITURE)
RECONCILIATION OF FUNDS
Total funds brought forward
TOTAL FUNDS CARRIED FORWARD
Unrestricted
funds
£
-
925,054
80,337
1,005,391
625,099
372,814
144,405
12,000
1,154,318
17,000
(131,927)
3,299,083
3,167,156
Endowment
funds
£
-
-
-
-
-
-
-
-
-
-
-
974,518
974,518
31.12.20
Total
funds
£
-
925,054
80,337
1,005,391
625,099
372,814
144,405
12,000
1,154,318
17,000
(131,927)
4,273,601
4,141,674
31.12.19
Total
funds
£
86,009
1,593,170
53,391
1,732,570
1,098,523
257,441
199,687
12,000
1,567,651
1,248,733
1,413,652
2,859,949
4,273,601

CONTINUING OPERATIONS

All income and expenditure has arisen from continuing activities.

The notes form part of these financial statements

Page 11

THE SOCIETY OF ST PAUL THE APOSTLE

Statement of Financial Position 31 December 2020

Notes
FIXED ASSETS
Tangible assets
10
Investment property
11
CURRENT ASSETS
Stocks
12
Debtors
13
Cash at bank and in hand
CREDITORS
Amounts falling due within one year
14
NET CURRENT ASSETS
TOTAL ASSETS LESS CURRENT
LIABILITIES
CREDITORS
Amounts falling due after more than one
year
15
NET ASSETS
Unrestricted
funds
£
1,062,056
1,694,533
2,756,589
826,675
98,924
268,415
1,194,014
(454,449)
739,565
3,496,154
(328,998)
3,167,156
Endowment
funds
£
430,551
543,967
974,518
-
-
-
-
-
-
974,518
-
974,518
31.12.20
Total
funds
£
1,492,607
2,238,500
3,731,107
826,675
98,924
268,415
1,194,014
(454,449)
739,565
4,470,672
(328,998)
4,141,674
31.12.19
Total
funds
£
1,551,951
2,221,500
3,773,451
847,217
110,983
226,604
1,184,804
(371,159)
813,645
4,587,096
(313,495)
4,273,601

The notes form part of these financial statements

continued...

Page 12

THE SOCIETY OF ST PAUL THE APOSTLE

Statement of Financial Position - continued 31 December 2020

FUNDS
18
Unrestricted funds
Endowment funds
TOTAL FUNDS
3,167,156
974,518
4,141,674
3,299,083
974,518
4,273,601

The financial statements were approved by the Board of Trustees and authorised for issue on 20 DECEMBER 2021 and were signed on its behalf by:

Joshy Joseph Signed on 21/12/21 @ 11:16 ............................................. Rev Fr Joshy J Thumpakattu - Trustee

JOSE JEREUS BANGCAYA ............................................. Signed on 21/12/21 @ 11:06

Rev Dn Jose J Bangcaya - Trustee

The notes form part of these financial statements

Page 13

THE SOCIETY OF ST PAUL THE APOSTLE

Statement of Cash Flows for the Year Ended 31 December 2020

Notes
Cash flows from operating activities
Cash generated from operations
1
Net cash provided by operating activities
Cash flows from investing activities
Purchase of tangible fixed assets
Net cash provided by/(used in) investing activities
Cash flows from financing activities
Loan repayment to related parties
Net cash used in financing activities
Change in cash and cash equivalents
in the reporting period
Cash and cash equivalents at the
beginning of the reporting period
Cash and cash equivalents at the end
of the reporting period
31.12.20
£
46,811
46,811
-
-
(5,000)
(5,000)
41,811
226,604
268,415
31.12.19
£
327,785
327,785
(284,093)
(284,093)
(125,696)
(125,696)
(82,004)
308,608
226,604

The notes form part of these financial statements

Page 14

THE SOCIETY OF ST PAUL THE APOSTLE

Notes to the Statement of Cash Flows for the Year Ended 31 December 2020

1. RECONCILIATION OF NET (EXPENDITURE)/INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES

OPERATING ACTIVITIES
31.12.20 31.12.19
£ £
Net (expenditure)/income for the reporting period (as per the
Statement of Financial Activities) (131,927) 1,413,652
Adjustments for:
Depreciation charges 59,344 58,992
Exchange rate movement in loans 20,503 (20,636)
Unrealised gain on investment property (17,000) (1,248,733)
Decrease in stocks 20,542 71,479
Decrease in debtors 12,058 138,687
Increase/(decrease) in creditors 83,291 (85,656)
Net cash provided by operations 46,811 327,785
ANALYSIS OF CHANGES IN NET DEBT
At 1.1.20 Cash flow At 31.12.20
£ £ £
Net cash
Cash at bank and in hand 226,604 41,811 268,415
226,604 41,811 268,415
Debt
Debts falling due within 1 year (25,000) - (25,000)
Debts falling due after 1 year (313,495) (15,503) (328,998)
(338,495) (15,503) (353,998)
Total (111,891) 26,308 (85,583)
  1. ANALYSIS OF CHANGES IN NET DEBT

The notes form part of these financial statements

Page 15

THE SOCIETY OF ST PAUL THE APOSTLE

Notes to the Financial Statements for the Year Ended 31 December 2020

1. ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the charity, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Charities Act 2011. The financial statements have been prepared under the historical cost convention, as modified by the revaluation of certain assets.

The financial statements are prepared in sterling, which is the functional currency of the Charity. Monetary amounts in these financial statements are rounded to the nearest £.

Going concern

At the time of approving the financial statements, the trustees have a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements. Although turnover has reduced during the post year end lockdown period, the prompt steps and procedures implemented by the Charity have enabled the charity to keep costs to a minimum. The additional source of regular funds generated from the investment property help the Charity. The legacy of prudent financial management over many years and the Charity's strong place in its market will enable it to operate in this exceptionally difficult period.

Judgements and key sources of estimation uncertainty

The preparation of financial statements in conformity with Charities SORP (FRS 102) requires the trustees to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgements about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates. The judgements, estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are discussed below:

Valuation of freehold property held as investment

The freehold property was revalued at the year end to its fair value on the basis of market value. Market value represents the figure that would appear in a hypothetical contract of sale between a willing buyer and a willing seller. Market value is estimated without regard to costs of sale. Property valuation is inherently subjective and contains a number of assumptions upon which the trustees have based their valuation of the charity's properties. The assumptions on which the valuation have been based include, but are not limited to, matters such as recent comparable market transactions on arm's length terms, the tenure and tenancy details for the properties, ground conditions at the properties and the structural condition of the properties. The carrying amount at the year end is £2,238,500 (2019: £2,221,500).

Page 16

continued...

THE SOCIETY OF ST PAUL THE APOSTLE

Notes to the Financial Statements - continued for the Year Ended 31 December 2020

1. ACCOUNTING POLICIES - continued

Changes in accounting policies

The depreciation policy for freehold land and buildings changed in the previous year in accordance with the requirements of the applicable accounting standards. The buildings are in constant use in furtherance of the Society's charitable objectives and are properly maintained to standards that ensure that their residual value is not less than their book value. The trustees consider the expected life of the properties to be a further period of between 25 and 50 years. The additional depreciation due to the change is £32,088 (2019- £32,088). No adjustment is made for the depreciation charges for the previous years.

Income

All income is recognised in the Statement of Financial Activities. Once the Charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.

Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Where costs cannot be directly attributed to particular headings, they have been allocated to activities on a basis consistent with the use of resources.

Raising funds

Raising funds for its charitable purposes includes all expenditure towards costs of sales and other costs of generating funds from the multimedia centres and publishing activity. The investment management costs represent the estate agent's costs for letting and managing of the investment property.

Charitable activities

Charitable activities include providing facilities and services to the public through the multimedia centres as well as publishing books and multimedia products. The charitable activities also include supporting and looking after the community of priests and brothers of the religious order.

Support costs

Cost allocation involves judgement to some extent, and the Society had to consider the cost-benefit of detailed calculations and record keeping. The support costs include an element attributable to the trading activity for the multimedia centres and publishing activities. Hence these are allocated towards the expenditure on raising funds as cost of other trading activities. A portion of the running costs of the multimedia centres, the publishing activities and support of the community is attributable to charitable activities. The trustees are of the opinion that the basis of allocation is fair and reasonable.

continued...

Page 17

THE SOCIETY OF ST PAUL THE APOSTLE

Notes to the Financial Statements - continued for the Year Ended 31 December 2020

1. ACCOUNTING POLICIES - continued

Tangible fixed assets
Freehold property The freehold land and buildings are shown on the balance sheet
at cost, including any improvement cost. The buildings are in
constant use in furtherance of the Society's charitable objectives
and are properly maintained to standards that ensure that their
residual value is not less than their book value. The trustees
consider the expected life of the property to be between 25 and
50 years. Accordingly, depreciation is provided as follows:
Office & residential
- 2% on a straight line basis.
Warehouse
- 4% on a straight line basis.
Short leasehold property Short leasehold property is shown on the balance sheet at cost
less depreciation. Depreciation is provided so as to write off the
cost of the leasehold property over the remaining period of the
lease.
Furniture & fittings 25% on a reducing balance basis.
Computer & equipment 25% on a reducing balance basis.
Motor vehicles 25% on a straight line basis.

Investment property

Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in the Statement of Financial Activities.

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. The surplus or deficit on revaluation is recognised as unrealised gains/losses in the funds.

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Taxation

The charity is exempt from tax on its charitable activities.

Fund accounting

Unrestricted funds comprise accumulated surpluses and deficits on general funds that are available for use at the discretion of the trustees in furtherance of the general objectives of the Society and that have not been designated for other purposes.

Endowment funds are monies which must be held indefinitely as capital dependent on the type of endowment. A permanent endowment is an asset or cash given to the charity to be held in perpetuity as capital. An expendable endowment is an asset or cash given to the charity to be held as capital with trustees having the power to use the capital for income. When such power is exercised the expendable endowment is transferred to unrestricted funds. The income generated from endowment funds can be used for general purposes and is credited directly to unrestricted funds.

Revaluation reserve funds are unrestricted funds. They constitute the surplus or deficit on revaluation of investment that is recognised in the financial statements.

continued...

Page 18

THE SOCIETY OF ST PAUL THE APOSTLE

Notes to the Financial Statements - continued for the Year Ended 31 December 2020

1. ACCOUNTING POLICIES - continued

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the reporting date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Leasing commitments

Where assets are financed by leasing agreements that give rights approximating to ownership (finance leases), the assets are treated as if they had been purchased outright. The amount capitalised is the present value of the minimum lease payments payable during the lease term. The corresponding leasing commitments are shown as obligations to the lessor.

Lease payments are treated as consisting of capital and interest elements, and the interest is charged to the profit and loss account in proportion to the balance outstanding.

Rentals paid under operating leases are charged to the statement of financial activities on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits

The Charity operates a defined contribution pension scheme. Contributions payable to the Charity's pension scheme are charged to the Statement of Financial Activities in the period to which they relate.

2. DONATIONS AND LEGACIES

Contributions receivable
3.
OTHER TRADING ACTIVITIES
Sales - Multimedia centres
Sales - Publishing & distribution
Royalties received
Other income
Government grants
Other receipts
31.12.20
£
-
31.12.20
£
765,836
43,402
1,288
93,803
20,000
725
925,054
31.12.19
£
86,009
31.12.19
£
1,473,748
113,661
1,509
-
-
4,252
1,593,170

continued...

Page 19

THE SOCIETY OF ST PAUL THE APOSTLE

Notes to the Financial Statements - continued for the Year Ended 31 December 2020

4.
INVESTMENT INCOME
Rents receivable
5.
RAISING FUNDS
Other trading activities
Opening stock
Purchases
Closing stock
Post & freight
Travel & subsistence
Advertisement & promotion
Support costs
Investment management costs
Rent collection & management
Aggregate amounts
6.
CHARITABLE ACTIVITIES COSTS
Multimedia centres
Publishing & community
Direct
Costs
£
281,247
84,540
365,787
31.12.20
£
80,337
31.12.20
£
847,217
394,999
(826,675)
21,530
3,563
2,309
165,590
608,533
31.12.20
£
16,566
625,099
Support
costs (see
note 7)
£
91,567
59,865
151,432
31.12.19
£
53,391
31.12.19
£
918,696
803,241
(847,217)
22,311
10,696
7,389
173,939
1,089,055
31.12.19
£
9,468
1,098,523
Totals
£
372,814
144,405
517,219

continued...

Page 20

THE SOCIETY OF ST PAUL THE APOSTLE

Notes to the Financial Statements - continued for the Year Ended 31 December 2020

7. SUPPORT COSTS

SUPPORT COSTS
Other trading activities
Other resources
expended
Multimedia centres
Publishing & community
Activity
Finance
Information technology
Human resources
Information
Finance
technology
£
£
9,057
15,720
-
-
2,588
4,491
1,294
2,246
12,939
22,457
Basis of allocation
70%:0%:20%:10%
70%:0%:20%:10%
50%:0%:30%:20%
Human
Governance
resources
costs
£
£
140,813
-
-
12,000
84,488
-
56,325
-
281,626
12,000
Totals
£
165,590
12,000
91,567
59,865
329,022

Support costs, included in the above, are as follows:

Finance

Bank & credit card
charges
Information technology
Hire of equipment
Repairs and renewals
IT support & web
31.12.20
31.12.19
Other
trading
Multimedia
Publishing
Total
Total
activities
centres
& community
activities
activities
£
£
£
£
£
9,057
2,588
1,294
12,939
19,282
31.12.20
31.12.19
Other
trading
Multimedia
Publishing
Total
Total
activities
centres
& community
activities
activities
£
£
£
£
£
1,209
345
173
1,727
4,589
380
108
54
542
7,306
14,131
4,038
2,019
20,188
13,555
15,720
4,491
2,246
22,457
25,450

continued...

Page 21

THE SOCIETY OF ST PAUL THE APOSTLE

Notes to the Financial Statements - continued for the Year Ended 31 December 2020

7. SUPPORT COSTS - continued Human resources

Salary & wages
Social security
Pensions
Governance costs
Auditors' remuneration
Other
trading
Multimedia
Publishing
activities
centres
& community
£
£
£
131,276
78,766
52,511
7,193
4,316
2,877
2,344
1,406
937
140,813
84,488
56,325
31.12.20
Total
activities
£
262,553
14,386
4,687
281,626
31.12.20
Other
resources
expended
£
12,000
31.12.19
Total
activities
£
265,254
15,670
4,329
285,253
31.12.19
Total
activities
£
12,000

8. TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31 December 2020 nor for the year ended 31 December 2019.

Trustees' expenses

There were no trustees' expenses paid for the year ended 31 December 2020 nor for the year ended 31 December 2019.

9. STAFF COSTS

Wages and salaries
Social security costs
Other pension costs
31.12.20
£
262,553
14,386
4,687
281,626
31.12.19
£
265,254
15,670
4,329
285,253

The average monthly number of employees during the year was as follows:

31.12.20 31.12.19
Multimedia centres 14 14
Mail order 2 2
Publishing & distribution 1 1
Community 1 1
18 18

continued...

Page 22

THE SOCIETY OF ST PAUL THE APOSTLE

Notes to the Financial Statements - continued for the Year Ended 31 December 2020

9. STAFF COSTS - continued

No employees received emoluments in excess of £60,000.

10. TANGIBLE FIXED ASSETS

COST
At 1 January 2020 and
31 December 2020
DEPRECIATION
At 1 January 2020
Charge for year
At 31 December 2020
NET BOOK VALUE
At 31 December 2020
At 31 December 2019
Freehold
property
£
1,320,834
32,088
32,088
64,176
1,256,658
1,288,746
Short
leasehold
£
834,251
587,677
23,283
610,960
223,291
246,574
Fixtures
and
fittings
£
132,770
121,161
2,715
123,876
8,894
11,609
Computer
equipment
£
50,484
45,462
1,258
46,720
3,764
5,022
Totals
£
2,338,339
786,388
59,344
845,732
1,492,607
1,551,951

Included in the cost of freehold property is freehold land & building of £1,320,834 (2019£1,320,834) of which £430,551 ( 2019- £430,551) is represented by a permanent endowment.

The title to one fixed asset property has been held in the name of founder trustees and other trustees who are no longer on the board. They are the late Rev Fr Sebastian Karamvelil SSP, Rev Fr Aderico Dolzani SSP and Rev Fr Joseph Nechikattil SSP. All of them were or are members of the religious congregation. The Society is in the process of transferring the title to the current trustees.

11. INVESTMENT PROPERTY

FAIR VALUE
At 1 January 2020
Revaluation
At 31 December 2020
NET BOOK VALUE
At 31 December 2020
At 31 December 2019
£
2,221,500
17,000
2,238,500
2,238,500
2,221,500

The title to the property has been held in the name of founder trustees and other trustees who are no longer on the board. They are the late Rev Fr Sebastian Karamvelil SSP and Rev Fr Joseph Nechikattil SSP. Both of them were or is a member of the religious congregation. The Society is in the process of transferring the title to the current trustees.

continued...

Page 23

THE SOCIETY OF ST PAUL THE APOSTLE

Notes to the Financial Statements - continued for the Year Ended 31 December 2020

11. INVESTMENT PROPERTY - continued

The the original cost together with any improvement cost of a freehold land and building is classified as investment property, of which £543,967 (2019- £543,967) is represented by a permanent endowment.

The fair value of the investment property has been arrived at on the basis of a valuation carried out as at 31 December 2020 by the Trustees of the Charity. The valuation was made on an open market value basis by reference to market rental yield for similar properties in London.

12. STOCKS

Books and other articles
13.
DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Trade debtors
Other debtors
Prepayments
14.
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Trade creditors
Taxation and social security
Other creditors
31.12.20
£
826,675
31.12.20
£
59,476
10,262
29,186
98,924
31.12.20
£
291,489
30,118
132,842
454,449
31.12.19
£
847,217
31.12.19
£
70,202
7,625
33,156
110,983
31.12.19
£
214,027
21,946
135,186
371,159

Included in other creditors is £25,000 relating to a loan from the Society of St Paul, Maynooth, Ireland. (See below for further details).

continued...

Page 24

THE SOCIETY OF ST PAUL THE APOSTLE

Notes to the Financial Statements - continued for the Year Ended 31 December 2020

15. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

31.12.20 31.12.19
£ £
Other creditors 328,998 313,495

Other creditors represent loan from the Society of St Paul, Maynooth, Ireland. The loan is a foreign currency loan, interest-free, unsecured and repayable in instalments.

16. LOANS

An analysis of the maturity of loans is given below:

Other Loans:
31.12.20 31.12.19
£ £
Amounts falling due 25,000
25,000
75,000
213,495
- within one year or on demand 25,000
- between one and two years 25,000
- between two and five years 75,000
- repayable in instalsments over 5 years 228,998
353,998 338,495

17. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:

Within one year
Between one and five years
In more than five years
31.12.20
£
104,665
392,660
539,908
1,037,233
31.12.19
£
104,665
399,160
588,990
1,092,815

The amount of non-cancellable operating lease payments recognised as an expense during the year was £92,030 (2019: £98,165).

Page 25

continued...

THE SOCIETY OF ST PAUL THE APOSTLE

Notes to the Financial Statements - continued for the Year Ended 31 December 2020

18. MOVEMENT IN FUNDS

At 1.1.20
£
Unrestricted funds
General fund
2,050,350
Revaluation reserve fund
1,248,733
3,299,083
Endowment funds
Regional permanent endowment
974,518
TOTAL FUNDS
4,273,601
Net movement in funds, included in the above are as follows:
Incoming
Resources
resources
expended
£
£
Unrestricted funds
General fund
1,005,391
(1,154,318)
Revaluation reserve fund
-
-
1,005,391
(1,154,318)
TOTAL FUNDS
1,005,391
(1,154,318)
Comparatives for movement in funds
At 1.1.19
£
Unrestricted funds
General fund
1,885,431
Revaluation reserve fund
-
1,885,431
Endowment funds
Regional permanent endowment
974,518
TOTAL FUNDS
2,859,949
Net
movement
in funds
£
(148,927)
17,000
(131,927)
-
(131,927)
Gains and
losses
£
-
17,000
17,000
17,000
Net
movement
in funds
£
164,919
1,248,733
1,413,652
-
1,413,652
At
31.12.20
£
1,901,423
1,265,733
3,167,156
974,518
4,141,674
Movement
in funds
£
(148,927)
17,000
(131,927)
(131,927)
At
31.12.19
£
2,050,350
1,248,733
3,299,083
974,518
4,273,601

Page 26

continued...

THE SOCIETY OF ST PAUL THE APOSTLE

Notes to the Financial Statements - continued for the Year Ended 31 December 2020

18. MOVEMENT IN FUNDS - continued

Comparative net movement in funds, included in the above are as follows:

Unrestricted funds
General fund
Revaluation reserve fund
TOTAL FUNDS
Incoming
resources
£
1,732,570
-
1,732,570
1,732,570
Resources
expended
£
(1,567,651)
-
(1,567,651)
(1,567,651)
Gains and
losses
£
-
1,248,733
1,248,733
1,248,733
Movement
in funds
£
164,919
1,248,733
1,413,652
1,413,652

A current year 12 months and prior year 12 months combined position is as follows:

Unrestricted funds
General fund
Revaluation reserve fund
Endowment funds
Regional permanent endowment
TOTAL FUNDS
At 1.1.19
£
1,885,431
-
1,885,431
974,518
2,859,949
Net
movement
in funds
£
15,992
1,265,733
1,281,725
-
1,281,725
At
31.12.20
£
1,901,423
1,265,733
3,167,156
974,518
4,141,674

A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows:

Unrestricted funds
General fund
Revaluation reserve fund
TOTAL FUNDS
Incoming
resources
£
2,737,961
-
2,737,961
2,737,961
Resources
expended
£
(2,721,969)
-
(2,721,969)
(2,721,969)
Gains and
losses
£
-
1,265,733
1,265,733
1,265,733
Movement
in funds
£
15,992
1,265,733
1,281,725
1,281,725

continued...

Page 27

THE SOCIETY OF ST PAUL THE APOSTLE

Notes to the Financial Statements - continued for the Year Ended 31 December 2020

18. MOVEMENT IN FUNDS - continued

Regional expendable endowment

The fund is the contribution made by the Society of St Paul, Maynooth, Ireland, the regional office of the Society, for the set up and operations of the various multimedia centres and the publishing activity. The amount was originally given as a loan and subsequently converted into an endowment. As these funds have already been utilised for operations, this amount has been transferred to unrestricted funds.

Regional permanent endowment

The fund is the contribution made by the Society of St Paul, Maynooth, Ireland, the regional office of the Society, for the acquisition of the freehold property of the Charity. The amount was originally given as a loan and subsequently converted into an endowment. Income arising from the fund is unrestricted and can be used for the charitable activities of the Society.

19. EMPLOYEE BENEFIT OBLIGATIONS

The charity contributes to a defined contribution pension scheme for its employees. The pension cost charge for the period represents contributions payable by the charity to the respective scheme and amounted to £4,687 (2019: £4,329).

Contributions totalling £396 (2019 - £417) were payable to the scheme at the end of the year and are included in payables.

20. CAPITAL COMMITMENTS

At 31 December 2020, the charity had no contractual capital commitment (2019: £nil).

21. RELATED PARTY DISCLOSURES

The related party transactions with the Society of St Paul, Maynooth, Ireland are:

31.12.20 31.12.19
£ £
Contributions received - 86,609
Loans due to Region 353,998 338,495

The Society of St Paul, UK and the Society of St Paul, Ireland are both related in so far as the trustees of both charities belong to the same religious order.

The loan is interest-free, unsecured and repayable in instalments.

continued...

Page 28

THE SOCIETY OF ST PAUL THE APOSTLE

Notes to the Financial Statements - continued for the Year Ended 31 December 2020

22. POST BALANCE SHEET EVENTS

There have been no significant events between the year end and the date of approval of these financial statements which would require a change to, or disclosure in, the financial statements other than the ongoing effects of the outbreak of the contagious disease Covid-19.

This remains an emerging global risk for all individuals and businesses. It is not clear for how long the current outbreak will last or how much more extensive it will become, or the further measures that will be taken by governments and others to seek to control the outbreak and its impact.

Page 29

THE SOCIETY OF ST PAUL THE APOSTLE

Detailed Statement of Financial Activities for the Year Ended 31 December 2020

INCOME AND ENDOWMENTS
Donations and legacies
Contributions receivable
Other trading activities
Sales - Multimedia centres
Sales - Publishing & distribution
Royalties received
Other income
Government grants
Other receipts
Investment income
Rents receivable
Total incoming resources
EXPENDITURE
Other trading activities
Opening stock
Purchases - Multimedia
Purchases - Publishing & distribution
Post & freight
Travel & subsistence
Advertisement & promotion
Closing stock
Investment management costs
Rent collection & management
Charitable activities
Rent
Rates and water
Insurance
Light and heat
Telephone
Carried forward
31.12.20
£
-
765,836
43,402
1,288
93,803
20,000
725
925,054
80,337
1,005,391
847,217
345,184
49,815
21,530
3,563
2,309
(826,675)
442,943
16,566
92,030
6,757
7,504
25,225
17,832
149,348
31.12.19
£
86,009
1,473,748
113,661
1,509
-
-
4,252
1,593,170
53,391
1,732,570
918,696
756,669
46,572
22,311
10,696
7,389
(847,217)
915,116
9,468
98,165
9,393
8,655
12,923
26,141
155,277

This page does not form part of the statutory financial statements

Page 30

THE SOCIETY OF ST PAUL THE APOSTLE

Detailed Statement of Financial Activities for the Year Ended 31 December 2020

Charitable activities
Brought forward
Postage and stationery
Sundries
Repairs - premises
Staff welfare
Legal & professional
Contributions payable
Membership & subscriptions
Royalties
Exchange (gains)/losses
Household & healthcare expenses
Training
Freehold property
Short leasehold
Fixtures and fittings
Computer equipment
Support costs
Finance
Bank & credit card charges
Information technology
Hire of equipment
Repairs and renewals
IT support & web
Human resources
Salary & wages
Social security
Pensions
Governance costs
Auditors' remuneration
Total resources expended
Net (expenditure)/income
31.12.20
£
149,348
40,881
4,032
21,427
41
3,900
-
1,130
4,676
30,370
44,042
6,595
32,088
23,283
2,716
1,258
365,787
12,939
1,727
542
20,188
22,457
262,553
14,386
4,687
281,626
12,000
1,154,318
(148,927)
31.12.19
£
155,277
47,141
(57,475)
24,269
1,413
2,150
10,032
5,443
4,543
(13,692)
51,939
11,050
32,088
23,283
2,873
748
301,082
19,282
4,589
7,306
13,555
25,450
265,254
15,670
4,329
285,253
12,000
1,567,651
164,919

This page does not form part of the statutory financial statements

Page 31