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2021-12-31-accounts

Charity registration number: 230948

THE SOCIETY OF ST PAUL THE APOSTLE

ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

THE SOCIETY OF ST PAUL THE APOSTLE

CONTENTS

Reference and Administrative Details 1
Trustees' Report 2 to 7
Independent Auditors' Report 8 to 11
Statement of Financial Activities 12
Balance Sheet 13
Cash Flow Statement 14
Notes to the Financial Statements 15 to 27

THE SOCIETY OF ST PAUL THE APOSTLE

REFERENCE AND ADMINISTRATIVE DETAILS

Chairman Rev Fr Joshy Joseph Thumpakattu
Trustees Rev Fr Joshy Joseph Thumpakattu
Rev Fr Jose Mathew
Rev Fr Celso Celeste Godilano
Rev Dn Jose Jereus Bangcaya
Principal Office Morpeth Terrace
Victoria
London
SWIP 1EP
Charity Registration Number 230948
Solicitors Martin Shepherd Solicitors LLP
753 High Road
North Finchley
London
N12 8LG
Auditors Harmer Slater Limited
Salatin House
19 Cedar Road
Sutton
Surrey
SM2 5DA

Page 1

THE SOCIETY OF ST PAUL THE APOSTLE

TRUSTEES' REPORT

The trustees present the annual report together with the financial statements and auditors' report of the charity for the year ended 31 December 2021. 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.

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.

Page 2

THE SOCIETY OF ST PAUL THE APOSTLE

TRUSTEES' REPORT

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 completed 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.

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.

Page 3

THE SOCIETY OF ST PAUL THE APOSTLE

TRUSTEES' REPORT

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 revamped 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 £296,584 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 the supplemental trust deed dated 5th July 2021, registered with the Charity Commission as 'The Society of St Paul the Apostle', charity registration number 230948.

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.

Page 4

THE SOCIETY OF ST PAUL THE APOSTLE

TRUSTEES' REPORT

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

Charity Registration Number 230948

Principal Office

Morpeth Terrace Victoria London SWIP 1EP

Page 5

THE SOCIETY OF ST PAUL THE APOSTLE

TRUSTEES' REPORT

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:

Senior Management Team

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 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.

Reappointment of auditor

A resolution for the re-appointment of Harmer Slater Limited as auditors will be proposed at the forthcoming annual general meeting.

The trustees are responsible for preparing the trustees' report and the financial statements in accordance with the United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and applicable law and regulations.

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 of the charity for that period. In preparing these financial statements, the trustees are required to:

Page 6

THE SOCIETY OF ST PAUL THE APOSTLE TRUSTEES, REPORT make judgements and estimates that are reasonable and prudent.. slate whether applicable accounting stsndards have been followed. subjeet to any material departures disclosed and expla1ned in the financial statemerbls,. and prepare the financial statements on the going concem basis unless il is inappropriat& to presume that the charity will continue in business. The Iruslees are responsible for keeping Proper accounting records that disclose with reasonable accuracy al any lime the financial positson ol the charity and enable them lo ensure Ihal the financial slalemenls comply wilh the Charilies Act 2011, the applicable Charities IAccounls and Reports) Regulations, and the provisions ol the conslilution. The trustees 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. The annual r•port wa$ approved by the trustees of the charity on 13 September 2022 and signed on ils behalf by.. R¢v Fr Josh Joseph Thumpakattu Chairman and Trustee Page 7

THE SOCIETY OF ST PAUL THE APOSTLE

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE SOCIETY OF ST PAUL THE APOSTLE

Opinion

We have audited the financial statements of The Society of St Paul The Apostle (the 'charity') for the year ended 31 December 2021, which comprise the Statement of Financial Activities, Balance Sheet, Cash Flow Statement, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

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 financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company'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 directors with respect to going concern are described in the relevant sections of this report.

Other information

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

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

Page 8

THE SOCIETY OF ST PAUL THE APOSTLE

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE SOCIETY OF ST PAUL THE APOSTLE

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 (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the (set out on page 7 ), the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Auditor’s responsibilities for the audit of the financial statements

We have been appointed as auditor 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 an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Page 9

THE SOCIETY OF ST PAUL THE APOSTLE

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE SOCIETY OF ST PAUL THE APOSTLE

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 considered the nature of the charitable company’s sector and its control environment, and reviewed the charitable company’s documentation of their policies and procedures relating to fraud and compliance with laws and regulations. We also identified the laws and regulations applicable to the charitable company through discussions with the Trustees and other management, and from our cumulative audit, knowledge and experience of the charitable company.

We obtained an understanding of the legal and regulatory framework that the Charitable company operates in, and identified the key laws and regulations that:

We assessed the susceptibility of the charitable company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

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 10

THE SOCIETY OF ST PAUL THE APOSTLE

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS 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 Trustees and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of our report

This report is made solely to the charity trustees, as a body, in accordance with section 144 of the Charities Act 2011 and regulations made under section 154 of that Act. Our work has been undertaken so that we might state to the trustees those matters we are required to state to trustees 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 its 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

13 September 2022

Page 11

THE SOCIETY OF ST PAUL THE APOSTLE

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2021

Note
Income and Endowments from:
Other trading activities
2
Investment income
3
Total
Expenditure on:
Raising funds
4
Charitable activities:
5
Multimedia centres
Publishing & Community
Other
Total
Net gains on investments
Net expenditure
Reconciliation of funds
Total funds brought forward
Total funds carried forward
17		 Unrestricted
funds
£
1,193,929
78,530
1,272,459
837,668
262,133
196,443
6,000
1,302,244
-
(29,785)
3,167,156
3,137,371		 Endowment
funds
£
-
-
-
-
-
-
-
-
-
-
974,518
974,518		 Total
2021
£
1,193,929
78,530
1,272,459
837,668
262,133
196,443
6,000
1,302,244
-
(29,785)
4,141,674
4,111,889		 Total
2020
£
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

Continuing operations

All income and expenditure have arisen from continuing activities.

Page 12

THE SOCIETY OF ST PAUL THE APOSTLE {REGISTRATION NUMBER: 230948) BALANCE SHEET AS AT 31 DECEMBER 2021 Unrestricted Endowmènt funds fund5 Total funds 2021 Total funds 2020 Nots Flx•d assets Tangible assets Inveslmenl Pfoperties 1.003.202 1,694.533 430,551 543,967 1,433,753 2,238,500 1,492,607 2.238,500 10 2,697.735 974.518 3,672,253 3.731,107 Current as$gt3 Stocks Debtors Cash al bank and in hand 11 12 715.238 139,033 296,584 71S,238 139.033 296,584 826.675 98.924 268,415 1,150,855 1,150,855 1,194,014 Payables Amounts falling due within one year 13 359,473 359,473 454,449 N•t curr•nt assets 791,382 791.382 739.565 Total assets less current Ilabilitl•s 3.489,117 974.518 4,463.635 4.470,672 Payables Amounts falling due after more Ihan one year 14 351,746 351.746 328,998 Net assets 3.137,371 974,518 4.111.889 4.141,674 Funds Unrestricted ￿ndS Endowment lunds 3,137,371 974,518 3,167.156 974.518 Total funds 4.111,889 4,141.674 The financial stalemenls on pages 12 10 27 were approved by the trustees, and aulh0ri5ed for i$$ue on 13 September 2022 and signed on their behaw by.. Rev Fr Jos Joseph Thumpakattu Chairman and Trustee Jose J us Bangcaya Trustee Page 13

THE SOCIETY OF ST PAUL THE APOSTLE

CASH FLOW STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2021

Cash flows from operating activities
Net cash expenditure
Adjustments to cash flows from non-cash items
Depreciation
Exchange rate movement in loans
Unrealised gain on investment property
Working capital adjustments
Decrease in stocks
(Increase)/decrease in receivables
(Decrease)/increase in payables
Net cash flows from operating activities
Cash flows from financing activities
Loan repayment to related parties
New loan from related parties
Net cash flows from financing activities
Net increase in cash and cash equivalents
Cash and cash equivalents at 1 January
Cash and cash equivalents at 31 December		 2021
£
(29,785)
58,854
-
-
29,069
111,437
(40,109)
(94,976)
5,421
(17,252)
40,000
22,748
28,169
268,415
296,584		 2020
£
(131,927)
59,344
20,503
(17,000)
(69,080)
20,542
12,058
83,291
46,811
(5,000)
-
(5,000)
41,811
226,604
268,415

Page 14

THE SOCIETY OF ST PAUL THE APOSTLE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

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 (2020: £2,238,500).

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THE SOCIETY OF ST PAUL THE APOSTLE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

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.

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THE SOCIETY OF ST PAUL THE APOSTLE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

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.

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.

Stock

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.

Page 17

THE SOCIETY OF ST PAUL THE APOSTLE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

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 Other trading activities

Sales - Multimedia centres
Sales - Publishing & distribution
Royalties received
Other income
Government grants
Other receipts		 2021
£
1,028,674
67,561
1,041
64,854
31,799
-
1,193,929		 2020
£
765,836
43,402
1,288
93,803
20,000
725
925,054

Income from other trading activities in the prior year was unrestricted.

3 Investment income

3 Investment income
2021 2020
£ £
Rent receivable 78,530 80,337

Investment income in the prior year was unrestricted.

Page 18

THE SOCIETY OF ST PAUL THE APOSTLE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

4 Raising funds

4 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		 2021
£
826,675
504,721
(715,238)
24,670
5,405
381
178,649
825,263
12,405
837,668		 2020
£
847,217
394,999
(826,675)
21,530
3,563
2,309
165,590
608,533
16,566
625,099

All expenditure on raising funds in the prior year was unrestricted.

5 Charitable activities

5 Charitable activities
Multimedia centres
Publishing & Community		 Direct
Costs
£
164,678
132,946
297,624		 Support
Costs
(see note 6)
£
97,455
63,497
160,952		 Total
2021
£
262,133
196,443
458,576		 Total
2020
£
372,814
144,405
517,219

All expenditure on charitable activities in the prior year was unrestricted.

6 Support costs

Other trading activities
Other resources expended
Multimedia centres
Publishing & community		 Finance
£
12,850
-
3,672
1,836
18,358		 Information
technology
£
18,120
-
5,176
2,589
25,885		 Human
resource
£
Governance
cost
£
147,679
-
-
6,000
88,607
-
59,072
-
295,358
6,000		 Total
£
178,649
6,000
97,455
63,497
345,601

Page 19

THE SOCIETY OF ST PAUL THE APOSTLE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

Activity

Basis of allocation

Finance 70%:0%:20%:10% Information technology 70%:0%:20%:10% Human resources 50%:0%:30%:20%

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

Finance

Finance
Bank & credit card charges
Information technology
Hire of equipment
Repairs and renewals
IT support & web
Human resources
Salary & wages
Social security
Pensions
Other costs		 Other
trading
activities
£
12,850
Other
trading
activities
£
1,275
(127)
16,972
18,120
Other
trading
activities
£
136,240
7,877
2,490
1,072
147,679		 Multimedia
centres
£
3,672
Multimedia
centres
£
364
(36)
4,848
5,176
Multimedia
centres
£
81,744
4,726
1,494
643
88,607		 Publishing
&
community
£
1,836
Publishing
&
community
£
182
(18)
2,425
2,589
Publishing
&
community
£
54,496
3,151
996
429
59,072		 31 Dec 2021
Total
activities
£
18,358
31 Dec 2021
Total
activities
£
1,821
(181)
24,245
25,885
31 Dec 2021
Total
activities
£
272,480
15,754
4,980
2,144
295,358		 31 Dec 2020
Total
activities
£
12,939
31 Dec 2020
Total
activities
£
1,727
542
20,188
22,457
31 Dec 2020
Total
activities
£
262,554
14,386
4,686
-
281,626

Page 20

THE SOCIETY OF ST PAUL THE APOSTLE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

Governance costs

Auditor's remuneration 31 Dec 2021
Other
resources
expended
£
6,000		 31 Dec 2020
Total
activities
£
12,000

7 Trustees' remuneration and benefits

There were no trustees' remuneration or other benefits for the year ended 31 December 2021 nor for the year ended 31 December 2020.

Trustees' expenses

There were no trustees' expenses paid for the year ended 31 December 2021 nor for the year ended 31 December 2020.

8 Staff costs

Wages and salaries
Social security costs
Pension costs
Other costs		 2021
£
272,480
15,754
4,980
2,144
295,358		 2020
£
262,554
14,386
4,686
-
281,626

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

Multimedia centres
Mail order
Publishing & distribution
Community		 2021
No
13
2
1
1
17		 2020
No
14
2
1
1
18

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

Page 21

THE SOCIETY OF ST PAUL THE APOSTLE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

9 Tangible fixed assets

9
Tangible fixed assets
At 1 January 2021
and 31 December 2021
Depreciation
At 1 January 2021
Charge for the year
At 31 December 2021
Net book value
At 31 December 2021
At 31 December 2020		 Freehold
property
£
1,320,834
64,176
32,088
96,264
1,224,570
1,256,658		 Short
leasehold
£
834,251
610,960
23,283
634,243
200,008
223,291		 Fixtures
and
fittings
£
132,770
123,876
2,617
126,493
6,277
8,894		 Computer
equipment
£
50,484
46,720
866
47,586
2,898
3,764		 Total
£
2,338,339
845,732
58,854
904,586
1,433,753
1,492,607

Included in the cost of freehold property is freehold land & building of £1,320,834 (2020: £1,320,834) of which £430,551 ( 2020- £430,551) is represented by a permanent endowment.

The title to one of the two freehold properties 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.

10 Investment property

£

£
Fair value
At 1 January 2021
and 31 December 2021
Net book value
At 31 December 2021
At 31 December 2020		 2,238,500
2,238,500
2,238,500

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.

Page 22

THE SOCIETY OF ST PAUL THE APOSTLE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

The original cost together with any improvement cost of a freehold land and building is classified as investment property, of which £543,967 (2020 - £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.

If investment property were stated on an historical cost basis rather than a fair value basis, the amount would have been £972,767 (2020 - £972,767).

11 Stocks

11 Stocks
Books and other articles
12 Receivables
Trade receivables
Other receivables
Prepayments		 2021
£
715,238
2021
£
104,646
4,703
29,684
139,033		 2020
£
826,675
2020
£
59,476
10,262
29,186
98,924

13 Payables: amounts falling due within one year

Trade payables
Taxation and social security
Other payables		 2021
£
225,290
22,376
111,807
359,473		 2020
£
291,489
30,118
132,842
454,449

Other payables includes loans from the Society of St Paul, Maynooth, Ireland. (See below)

Page 23

THE SOCIETY OF ST PAUL THE APOSTLE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

14 Payables: amounts falling due after more than one year

Other payables 2021
£
351,746		 2020
£
328,998

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

15 Loans

An analysis of the maturity of loans is given below:

Other Loans:

within one year or on demand
between one and two years
between two and five years
repayable in instalments over 5 years		 2021
£
21,012
21,012
103,036
227,698
372,758		 2020
£
25,000
25,000
75,000
228,998
353,998

16 Leasing agreements

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

Within one year
In two to five years
In over five years		 2021
£
92,030
368,119
414,134
874,283		 2020
£
104,665
392,660
539,908
1,037,233

The amount of non-cancellable operating lease payments recognised as an expense during the year was £89,486 (2020: £92,030).

Page 24

THE SOCIETY OF ST PAUL THE APOSTLE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

17 Movement in funds
Unrestricted funds
General fund
Revaluation reserve fund
Endowment funds
Regional permanent endowment
Total funds		 Balance at
1 Jan 2021
£
1,901,423
1,265,733
3,167,156
974,518
4,141,674		 Net
movement in
funds
£
(29,785)
-
(29,785)
-
(29,785)		 Balance at
31 Dec 2021
£
1,871,638
1,265,733
3,137,371
974,518
4,111,889

Net movement in funds, included in the above are as follows:

Unrestricted funds
General fund		 Incoming
resources
£
1,272,459		 Resources
expended
£
(1,302,244)		 Movement in
funds
£
(29,785)

Page 25

THE SOCIETY OF ST PAUL THE APOSTLE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

Comparatives for movement in funds

Unrestricted funds
General fund
Revaluation reserve fund
Endowment funds
Regional permanent endowment
Total funds		 Balance at
1 Jan 2020
£
2,050,350
1,248,733
3,299,083
974,518
4,273,601		 Net
movement in
funds
£
(148,927)
17,000
(131,927)
-
(131,927)		 Balance at
31 Dec 2020
£
1,901,423
1,265,733
3,167,156
974,518
4,141,674

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

Unrestricted funds
General fund
Revaluation reserve fund
Total funds		 Incoming
resources
£
1,005,391
-
1,005,391		 Resources
expended
£
(1,154,318)
-
(1,154,318)		 Gains and
losses
£
-
17,000
17,000		 Movement in
funds
£
(148,927)
17,000
(131,927)

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.

Page 26

THE SOCIETY OF ST PAUL THE APOSTLE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

18 Employee benefit obligations

The charity contributes to a defined contribution pension scheme for its employees. The pension cost charge for the year represents contributions payable by the charity to the respective scheme and amounted to £4,980 (2020: £4,687) .

Contributions totalling £1,041 ( 2020: 396) were payable to the scheme at the end of the year and are included in payables.

19 Capital commitments

At 31 December 2021, the charity had no contractual capital commitment (2020 - £Nil).

20 Related party disclosures

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

2021 2020
£ £
Loans due to Region 372,758 353,998

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.

21 Post balance sheet events

There have been no significant events between the year end and the date of approval of these accounts which would require a change to, or disclosure in, the financial statements.

Page 27

THE SOCIETY OF ST PAUL THE APOSTLE

DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2021

Income and Endowments
Other trading activities (Analysed below)
Investment income
Rent receivable
Total incoming resources
Expenditure
Other trading activities (Analysed below)
Investment management costs
Rent collection & management
Charitable activities (Analysed below)
Support costs
Finance_(analysed below)
Information technology (Analysed below)
Human resources(Analysed below)
Governance costs(Analysed below)_
Total resources expended
Other recognised gains and losses
Net gains on invstment
Net expenditure		 Total
2021
£
1,193,929
78,530
1,272,459
646,614
12,405
297,624
18,358
25,885
295,358
6,000
1,302,244
-
(29,785)		 Total
2020
£
925,054
80,337
1,005,391
442,943
16,566
365,787
12,939
22,457
281,626
12,000
1,154,318
17,000
(131,927)

Page 28

THE SOCIETY OF ST PAUL THE APOSTLE

DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2021

INCOME AND ENDOWMENTS
Other trading activities
Sales - Multimedia centres
Sales - Publishing & distribution
Royalties received
Other income
Government grants
Other receipts
EXPENDITURE
Other trading activities
Opening stock
Purchases - Multimedia
Purchases - Publishing & distribution
Post & Freight
Travel & subsistence
Advertisement & promotion
Closing stock		 Total
2021
£
1,028,674
67,561
1,041
64,854
31,799
-
1,193,929
826,675
419,538
85,183
24,670
5,405
381
(715,238)
646,614		 Total
2020
£
765,836
43,402
1,288
93,803
20,000
725
925,054
847,217
345,184
49,815
21,530
3,563
2,309
(826,675)
442,943

Page 29

THE SOCIETY OF ST PAUL THE APOSTLE

DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2021

Charitable activities
Rent
Rates and water
Light and heat
Insurance
Telephone
Postage and stationery
Donations
Sundries
Repairs - premises
Staff welfare
Legal & professional
Royalties
Membership & subscriptions
Household & healthcare expenses
Training
Exchange (gains)/losses
Depreciation of freehold property
Depreciation of short leasehold property
Depreciation of fixtures and fittings
Depreciation of office equipment		 Total
2021
£
89,486
8,780
10,746
4,526
18,568
52,034
2,300
(69,771)
43,816
311
2,230
11,597
1,992
53,966
-
8,189
32,088
23,283
2,617
866
297,624		 Total
2020
£
92,030
6,757
25,225
7,504
17,832
40,881
-
4,032
21,427
41
3,900
4,676
1,130
44,042
6,595
30,370
32,088
23,283
2,716
1,258
365,787

Page 30

THE SOCIETY OF ST PAUL THE APOSTLE

DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2021

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
Other costs
Governance costs
Auditor's remuneration		 Total
2021
£
18,358
1,821
(181)
24,245
25,885
272,480
15,754
4,980
2,144
295,358
6,000
345,601		 Total
2020
£
12,939
1,727
542
20,188
22,457
262,554
14,386
4,686
-
281,626
12,000
329,022

Page 31