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2022-12-31-accounts

Charity registration number: 230948

THE SOCIETY OF ST PAUL THE APOSTLE

ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

THE SOCIETY OF ST PAUL THE APOSTLE

CONTENTS

Reference and Administrative Details 02
Trustees’ Report 03
Independent Auditors’ Report 09
Statement of Financial Activities 13
Balance Sheet 14
Cash Flow Statement 15
NotestotheFinancialStatements 16

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THE SOCIETY OF ST PAUL THE APOSTLE

REFERENCEAND ADMINISTRATIVE DETAILS REFERENCEAND ADMINISTRATIVE DETAILS
Chairman Rev Fr. Joshy Joseph Thumpakattu
Trustees Rev Fr Joshy Joseph Thumpakattu
Rev Fr Jose Mathew
Rev Fr Celso Celeste Godilano
Rev Fr Jose Jereus Bangcaya
Principal Office Morpeth Terrace
Victoria
London
SW1P 1EP
Charity Registration Number 230948
Solicitors Martin Shepherd Solicitors LLP
753 High Road
North Finchley
London
N12 8LG
IndependentAuditor Harmer Slater Limited
Salatin House
19 Cedar Road
Sutton
Surrey
SM25DA

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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 2022. 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:

Significant activities

The Charity consists of the St Paul multimedia centres in London, Leeds, Birmingham and Edinburgh, 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 Pau! 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

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THE SOCIETY OF ST PAUL THE APOSTLE

TRUSTEES’ REPORT

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 completed their research studies in Journalism and Media Management and are rendering their services accordingly. The Society, for next year is hoping to send another member for specialization in Publishing related programme.

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, Leeds and Edinburgh. 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.

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THE SOCIETY OF ST PAUL THE APOSTLE

TRUSTEES’ REPORT

The Charity was hoping to expand to Scotland, with a view expanding its operations to Scotland through a multimedia centre in Edinburgh. However, the Trustees felt that for operational reasons, it is better to have a sperate trust formed in Scotland for the operations there. Accordingly, the Society helped to form a trust in Scotland and the multimedia centre in Edinburgh began its activities in November 2022. Moreover, the trust in England continues to support the well-being of its members who are residing in Scotland. The Society hopes that the operations and activities in Edinburgh become completely independent by the end of 2023.

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 £203,516 are sufficient to meet the medium term direct charitable expenditure.

Going concern

In the years 2020 and 2021, most of Charity's activities had to be shut, the Charity took preventive measures to reduce the impact on the activities of the Charity. The Charity continued its activities as much as possible, respecting the laws and norms during these years. However, in 2022, the Charity bounced back to its full activities, but certain impacts of the lockdown and its after-effects still had a certain influence even in 2022. The additional regular funds from the investment property will also help the Charity to continue its activities. The legacy of prudent financial management over many years and Charity's strong place in its market will enable it to operate in this exceptionally difficult period.

Future plan

In line with one of the key objectives of the Trust, the charity intends to strengthen its evangelisation through online platforms. To this end, the charity intends to revamp its existing website (stpauls.rog.uk) and make it more user-friendly. It is necessary as more and more people, both young and senior, are accessing online platforms to educate and update themselves on their Christian beliefs and spiritual upliftment. Hence, we as persons involved in the communication of the Word of God through media, make use of online possibilities to reach out o many. After assessing the possibilities, the charity would make a calculative investment in strengthening its online activities.

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.

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THE SOCIETY OF ST PAUL THE APOSTLE

TRUSTEES’ REPORT

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 Fr 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. Ail 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 SW1P 1EP

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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

Independent Auditor 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

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

Statement of Trustees’ responsibilities

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:

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THE SOCIETY OF ST PAUL THE APOSTLE

TRUSTEES’ REPORT

The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the applicable Charities (Accounts and Reports) Regulations, and the provisions of the constitution. 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 report was approved by the trustees of the charity on 26 July 2023 and signed on its behalf by:

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Rev Fr Joshy Joseph Thumpakattu Chairman and Trustee

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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 2022, 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).

In our opinion the financial statements:

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.

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THE SOCIETY OF ST PAUL THE APOSTLE

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

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

We have nothing to report in this regard.

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 Statement of Trustees’ responsibilities (set out 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 contro! 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:

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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:

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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 noncompliance. 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.

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Harmer Slater Limited, Statutory Auditor Salatin House 19 Cedar Road

Sutton

Surrey SM2 5DA 26 July 2023

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.

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THE SOCIETY OF ST PAUL THE APOSTLE

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2022

Unrestricted Endowment Total Total
Note funds funds 2022 2021
£ £ £ £
Income
and
Endowments
from:
Othertrading activities 2 1,345,740 - 1,345,740 1,193,929
Investment income 3 76,043 - 76,043 78,530
Total 1,421,783 - 1,421,783 1,272,459
Expenditure on:
Raising funds 4 1,031,289 - 1,031,289 837,668
Charitable activities: 5
Multimedia centres & Pub. 303,535 - 303,535 262,133
Community 134,349 - 134,349 196,443
Other 13,000 - 13,000 6,000
Total 1,482,173 1,482,173 1,302,244
Net lossand investments (875,757) - (875,757) .
Netexpenditure (936,147) - (936,147) (29,785)
Reconciliation of funds
Total funds broughtforward 3,137,371 974,518 4,111,889 4,141,674
Totalfundscarriedforward 17 2,201,224 974,518 3,175,742 4,111,889

Income and expenditure relating to 2021 were all unrestricted

Continuing operations

All income and expenditure have arisen from continuing activities.

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THE SOCIETY OF ST PAUL THE APOSTLE

(REGISTRATION NUMBER: 230948) BALANCE SHEET AS AT 31 DECEMBER 2022

Unrestricted Endowment Total Total
Note funds funds 2022 2021
a £ £ £
Fixed assets
Tangible assets 9 951,004 430,551 1,381,555 1,433,753
Investment properties 10 856,033 543,967 1,400,000 2,238,500
1,807,037 974,518 2,781,555 3,672,253
Current assets
Stocks 11 769,858 - 769,858 715,238
Debtors 12 107,210 + 107,210 139,033
Cash at bank and in hand 203,516 - 203,516 296,584
1,080,584 - 1,080,584 1,150,855
Payables
Amounts falling due
within one year 13 (292,858) - (292,858) (359,473)
Net current assets 787,726 - 787,726 791,382
Total
assets
less		 current
liabilities 2,594,763 974,518 3,569,281 4,463,635
Payables
Amounts falling due after more
than one year 14 (393,539) - (393,539) (351,746)
Net assets 2,201,224 974,518 3,175,742 4,111,889
Funds
Unrestricted funds 2,201,224 3,137,371
Endowment funds 974,518 974,518
Totalfunds 3,175,742 4,111,889

Total funds

The financial statements on pages 13 to 30 were approved by the trustees, and authorised for issue on 26 July 2023 and signed on their behalf by:

Rev Fr. Joshy Joseph Thumpakattu Chairman and Trustee

Rev Fr. Jose Jereus Bangcaya Trustee

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THE SOCIETY OF ST PAUL THE APOSTLE

CASH FLOW STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2022

2022 2021
£ £
Cash flows from operating activities
Netcash expenditure (936,147) (29,785)
Adjustment to cash flows from non-cash items
Depreciation 68,587 58,854
Exchange rate movement in loans - =
Unrealised loss on investment property - -
875,757 -
8,197 29,069
Working capital adjustments
Increase in stocks (54,620) 111,437
(Increase)/decrease in receivables 31,823 (40,109)
(Decrease)/increase in payables (46,002) (94,976)
Netcash flowfrom operating activities (60,602) 5,421
Cash flowfrom investing activities
Acquisition ofproperty, plant and equipment (53,646) -
Net cash flows from investing activities (53,646) -
Cash flowfrom financing activities
Loan repayment to related parties (21,766) (17,252)
New loan from related parties 42,946 40,000
Net cash flows from financing activities 21,180 22,748
Net decrease in cash and cash equivalents (93,068) 28,169
Cash and cash equivalents at
1 January		 296,584 268,415
Cashandcashequivalentsat31December 203,516 296,584

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THE SOCIETY OF ST PAUL THE APOSTLE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

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 treland’ 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

When 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 was considerably reduced during the lockdown period of 2020 and 2021, the prudent financial management over many years and Charity’s strong place in its market helped in 2022 to reach a more robust position in the pre-pandemic period. Also, the additional regular funds generated from the investment property help the Charity.

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 by Willmotts Chartered Surveyors. 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 £1,400,000 (2021: £2,238,500).

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.

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THE SOCIETY OF ST PAUL THE APOSTLE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

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.

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 Computer & equipment 25% on a reducing balance basis. 25% on a reducing balance basis.

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THE SOCIETY OF ST PAUL THE APOSTLE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

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.

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.

18

THE SOCIETY OF ST PAUL THE APOSTLE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

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

2022 2021
£ £
Sales - Multimedia centres 1,272,959 1,028,674
Sales - Publishing & distribution 68,168 67,561
Royalties received 613 1,041
Otherincome - 64,854
Government grants 4,000 31,799
1,345,740 1,193,929
Income from other trading activities in the prioryearwas unrestricted.
3 Investment income
2022 2021
£ £
Rent receivable 76,043 78,530
Investment income in the prioryearwas unrestricted.
4 Raisingfunds
2022 2021
£ £
Othertrading activities
Opening stock 715,238 826,675
Purchases 731,486 504,721
Closing stock (769,858) (715,238)
Post& Freight 46,917 24,670
Travel & subsistence 17,696 5,405
Advertisement& promotion 524 381
Support costs (see note 6) 275,231 178,649
1,017,234 825,263
Investment management costs
Rent collection & management 14,055 12,405
1,031,289 837,668

Expenditure on raising funds in the prior year was unrestricted

19

THE SOCIETY OF ST PAUL THE APOSTLE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

5 Charitable activities

Direct Costs Support Total Total
Costs 2022 2021
(see note 6) £ £
£ £
Multimedia centres & publishing 234,727 68,808 303,535 262,133
Community 133,873 476 134,349 196,443
368,600 69,284 437,884 458,576

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

6 Support costs

Finance Information Human Government Total
technology resource cost
£ £ £ £ £
Othertrading activities 18,567 21,525 235,139 - 275,231
Otherresources expended - - : 13,000 13,000
Multimedia centres & Pub. 4,642 5,381 58,785 = 68,808
Community 203 = 273 - 476
23,412 26,906 294,197 13,000 357,515

Activity 2022 Basis of allocation Finance 80%:20%:0% Information technology 80%:20%:0% Human resources 80%:20%:0%

As part of a cost allocation restructuring in 2022, the Publishing division has moved to the Multimedia centres. The Community division costs will be separate from the centres and other trading activities.

20

THE SOCIETY OF ST PAUL THE APOSTLE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

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

Othertrading Multimedia Multimedia Community Total Total
activities Centre &Pub 2022 2021
£ £ £ £ £
Finance
Bank& Credit card charges 18,567 4,642 203 23,412 18,358
Information technology
Hire ofequipment 1,123 280 - 1,403 1,821
Repairs and renewals 234 59 - 293 (181)
IT support &web 20,168 5,042 - 25,210 24,245
21,525 5,381 - 26,906 25,885
Human resources
Wages 214,578 53,645 273 268,496 272,480
Social security 13,602 3,400 - 17,002 15,754
Pensions 4,343 1,086 - 5,429 4,980
Other costs 2,616 654 - 3,270 2,144
235,139 58,785 273 294,197 295,358

Governance costs

2022 2021
Other Other
resources resources
expended expended
£ £
Auditor’s remuneration 7,000 6,000

7 Trustees’ remuneration and benefits

There were no trustees' remuneration or other benefits for the year ended 31 December 2022 nor for the year ended 31 December 2021.

Trustees’ expenses

There were no trustees' expenses paid for the year ended 31 December 2022 nor for the year ended 31 December 2021.

21

THE SOCIETY OF ST PAUL THE APOSTLE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

8 Staff costs

8 Staff costs
2022 2021
£ £
Wages 268,496 272,480
Social security costs 17,002 15,754
Pension costs 5,429 4,980
Other costs 3,270 2,144
294,197 295,358

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

2022 2021
£ £
Multimedia centres 13 13
Mail Order 2 2
Publishing & distribution 1 1
Community - 1
16 17

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

9 Tangible fixed assets

Fixtures
Freehold
property
£		 Short
leasehold
£		 and
fittings
£		 Computer
equipment
£		 Total
£
2") dahieny2022 1,320,834 834,251 132,770 50,484 —-2,338,339
Additions - - 47,500 6,146 53,646
Revaluation (37,257) - - - (37,257)
At 31 December2022 1,283,577 834,251 180,270 56,630 __2,354,728
Depreciation
At 1 January2022 96,264 634,243 126,556 47,523 904,586
Charge fortheyear 32,088 21,053 13,429 2,017 68,587
At 31 December2022 128,352 655,296 139,985 49,540 973,173
Net book value
nas Eiseembereiice 1,155,225 __178,955 40,285 7,090 __1,381,555
At 31December2021 1,224,570 200,008 6,277 2,898 1,433,753

Included in the cost of freehold property is freehold land & building of £1,283,577 (2021: £1,320,834) of which £430,551 (2021- £430,551) is represented by a permanent endowment.

/

22

THE SOCIETY OF ST PAUL THE APOSTLE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

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 Doizani 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

£

----- Start of picture text -----
|||||| |---|---|---|---|---| |Fair|value| |At|1|January|2022|2,238,500| |Revaluation|(838,500)| |At|31|December|2022|1,400,000| |Net|book|value| |At 31|December 2022|—|[1,400,000]| |At 31|December 2021|2.238.500|

----- End of picture text -----

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. The original cost together with any improvement cost of a freehold land and building is classified as investment property, of which £543,967 (2021 - £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 22 December 2022 by Willmotts Chartered Surveyors.

If the investment property were stated on a historical cost basis rather than a fair value basis, the amount would have been £972,767 (2021 - £972,767)

11 Stocks

Books and other artictes

----- Start of picture text -----
2022 2021
£ £
____ 769,858 _ [715,238]
----- End of picture text -----

23

THE SOCIETY OF ST PAUL THE APOSTLE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

12 Receivables

2022 2021
£ £
Trade receivables 74,037 104,646
Other receivables 3,489 4,703
Prepayments 29,684 29,684
—107,210 _139.033

13 Payables: amounts falling due within one year

2022 2021
£ £
Trade payables 226,122 225,290
Taxation and social security 29,689 22,376
Otherpayables 37,047 111,807
292,858 359,473

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

14 Payables: amounts falling due after more than one year

Other payables

2022 2021
£ £
393,539 351,746

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:

2022 2021
£ £
within oneyear oron demand 22,600 21,012
between one and two years 22,600 21,012
between two and five years 94,400 103,036
repayable in instalments over 5years 231,800 227,698
371.400 372.758

24

THE SOCIETY OF ST PAUL THE APOSTLE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

16 Leasing agreements

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

----- Start of picture text -----
|||||| |---|---|---|---|---| |2021|2021| |£|£| |Within|one|year|98,165|92,030| |In two to|five|years|396,660|368,119| |in|over five|years|300,495|414,134| |795,320|___874,283|

----- End of picture text -----

The amount of non-cancellable operating lease payments recognised as an expense during the year was £98,165 (2021: £89,486).

17 Movement in funds

----- Start of picture text -----
|||||||| |---|---|---|---|---|---|---| |Net| |Balance|at|movement|in|Balance|at| |1|Jan|2022|funds|31|Dec|2022| |£|£|£| |Unrestricted|funds| |General|fund|1,871,638|(60,390)|1,811,248| |Revaluation|reserve|fund|1,265,733|(875,757)|389,976| |3,137,371|(936,147)|2,201,224| |Endowment funds| |Regional|permanent endowment|974,518|-|974,518| |Total funds|4.111,|__(131,927)|175,742|

----- End of picture text -----

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

----- Start of picture text -----
|||||| |---|---|---|---|---| |Incoming|Resources|Movements| |resources|expended|in|funds| |£|£|£| |Unrestricted|funds| |General|funds|1,421,783|(1 482,173)|(60,390)|

----- End of picture text -----

25

THE SOCIETY OF ST PAUL THE APOSTLE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

Comparatives for movement in funds

Comparatives for movementmovement in funds
Net
Balance at movement in Balance at
1 Jan 2021 funds 31 Dec 2021
£ £ £
Unrestricted funds
General fund 1,901,423 (29,785) 1,871,638
Revaluation reservefund 1,265,733 - 1,265,733
3,167,156 (29,785) 3,137,371
Endowmentfunds
Regional permanentendowment 974,518 - 974,518
Totalfunds __4.141,674 _(29,785) __ 4,111,889
Comparative netmovement in funds, included in the above are as follows:
Incoming Resources Gains and Movement in
resources expended losses funds
£ £ £ £
Unrestricted funds
General fund 1,272,459 (1,302,244) - (29,785)
Revaluation reservefund - . - .
Totalfunds 1.272.459 (1,302,244) _= 30___(29,785)

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

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.

26

THE SOCIETY OF ST PAUL THE APOSTLE

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

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 £5,429 (2021: £4,980).

Contributions totalling £1,066 (2021: £1,041) were payable to the scheme at the end of the year and are included in payables.

19 Capital commitments

At 31 December 2022, the charity had no contractual capital commitment (2021 - £Nil).

20 Related party disclosures

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

2022 2021 £ £ Loans due to Region 393,940 372,758

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.

27

THE SOCIETY OF ST PAUL THE APOSTLE

DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2022

----- Start of picture text -----
|||||| |---|---|---|---|---| |Total|Total| |2022|2021| |£|£| |Income|and|Endowments| |Other trading|activities|(Analysed below)|1,345,740|1,193,929| |Investment income| |Rent|receivable|76,043|78,530| |Total|incoming|resources|1,421,783|1,272,459| |Expenditure| |Other trading|activities|(Analysed below)|742,003|646,614| |Investment management|costs| |Rent collection|& management|14,055|12,405| |Charitable|activities|(Analysed below)|368,600|297,624| |Support costs| |Finance|(analysed below)|23,412|18,358| |Information|technology|(Analysed below)|26,906|25,885| |Human|resources|(Analysed below)|294,197|295,358| |Governance|costs|(Analysed below)|13,000|6,000| |Total|resources|expended|1,482,173|1,302,244| |Other recognised|gains|and|losses| |Net gains|on|investment| |Net expenditure|(60,390)|(29,785)|

----- End of picture text -----

28

THE SOCIETY OF ST PAUL THE APOSTLE

DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2022

Total Total
2022 2021
£ £
INCOMEAND ENDOWMENTS
Othertrading activities
Sales -Multimedia centres 1,272,959 1,028,674
Sales - Publishing & distribution 68,168 67,561
Royalties received 613 1,041
Otherincome - 64,854
Government grants __—-4,000 ___—-31,799
1,345,740 1,193,929
EXPENDITURE
Othertrading activities
Opening stock 715,238 826,675
Purchases - Multimedia 660,152 419,538
Purchases - Publishing & distribution 71,334 85,183
Post& Freight 46,917 24,670
Travel & subsistence 17,696 5,405
Advertisement& promotion 524 381
Closingstock __(769,858) 715,238
___742,003 ___646.614

29

THE SOCIETY OF ST PAUL THE APOSTLE

DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2022

Total Total
2022 2021
£ £
Charitable activities
Rent 98,165 89,486
Rates andwater 8,590 8,780
Lightand heat 20,921 10,746
Insurance 9,452 4,526
Telephone 23,239 18,568
Postage and stationery 16,881 52,034
Donations - 2,300
Sundries 3,087 (69,771)
Repairs - premises 42,632 43,816
Staffwelfare 1,708 311
Legal & professional 7,395 2,230
Royalties 834 11,597
Membership& subscriptions 1,213 1,992
Household & healthcare expenses 57,741 53,966
Exchange (gains)/losses 8,155 8,189
Depreciation offreehold property 32,088 32,088
Depreciation ofshortleasehold property 21,053 23,283
Depreciation offixturesand fittings 13,429 2,617
Depreciation ofoffice equipment 2.017 866
368.600 _ 297.624

30

THE SOCIETY OF ST PAUL THE APOSTLE

DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2022

Total Total
2022 2021
£ £
Support costs
Finance
Bank charges & credit card charges 23,412 18,358
Information technology
Hire ofequipment 1,403 1,821
Repairs and renewals 293 (181)
ITsupport &web 25,210 24,245
26,906 25,885
Human resources
Wages 268,496 272,480
Social security 17,002 15,754
Pensions 5,429 4,980
Other costs 3,270 2,144
294,197 295,358
Governance costs
Auditor’s remuneration 13,0000 6,000
357,515 345,601

31