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2021-12-31-accounts

REPORT OF THE TRUSTEES AND

UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

FOR

ST MILDRED'S ABBEY

CHARITY NUMBER 232635

ST MILDRED'S ABBEY

CONTENTS OF THE FINANCIAL STATEMENTS for the Year Ended 31 December 2021

Page
Report of the Trustees 1
Statement of Financial Activity 9
Statement of Financial Position 10
Notes to the Financial Statements 11
Independent Accountants' Report 15
Income and Expenditure Account 16

ST MILDRED'S ABBEY

REPORT OF THE TRUSTEES for the Year Ended 31 December 2021

Legal and Administrative Details

Registered Charity Number 232635

Trustees

The trustees in office during the period and at the date of this report:

Registered Office

St Mildred's Abbey Church Street Minster Ramsgate Kent CT12 4HF Telephone 01843 821254

Accountants

Hilary Adams Ltd Chartered Accountants 158 High Street Herne Bay CT6 5NP

Bankers

Lloyds Bank 3 Queen St. Ramsgate CT11 9DL

Solicitors

Boys and Maughan India House Hawley St. Margate CT9 1PZ

Page 1

ST MILDRED'S ABBEY

REPORT OF THE TRUSTEES for the Year Ended 31 December 2021

The trustees present their report along with the financial statements of the Trustees of Minster Abbey for the year ended 31 December 2021. The financial statements have been prepared in accordance with the accounting policies set out and comply with the charity's trust deed and applicable law.

Objectives of the Charity

Minster Abbey is a member of the English province, of the Subiaco Cassinese Congregation of the Order of St. Benedict. The present community was founded in 1937, from St. Walburga’s monastery in Eichstatt, Germany. The monastery is situated in the Village of Minster, near Ramsgate, Kent. The community is made up of 13 nuns, who have publicly committed their lives to Jesus Christ. In accordance with the Charity’s Trust Deed, the Abbey is established “for the advancement of the Roman Catholic Religion and such other charitable purposes, as the Trustees think fit.”

Mission

The mission of Minster Abbey is grounded in the Benedictine Roman Catholic Faith tradition that shapes our deepest values and way of life. We seek to foster an environment that honours and respects the gifts and inherent differences of each sister, as well as our guests, employees and friends. As members of a Benedictine community, we are called together by Christ, and we aim to support one another under the guidance of the Gospel and Rule of St. Benedict. We serve the Church and the world by nurturing a contemplative spirit through a life of prayer, hospitality and ecumenical dialogue. Guided by Church teaching, we celebrate the "transcendent dignity of each human person".

1. Care for the members of the monastic Community

2. Hospitality and Pastoral Care

In their work of hospitality the charity welcomes the public in four areas:

  1. Residential retreats and conferences for individuals and groups.

  2. Day groups which include retreat groups, study groups and conferences.

  3. Welcoming the public to view the ancient buildings.

  4. Pastoral care for those who come to the monastery.

3. Prayer Liturgy and spiritual support

According to the Trust document, our main objective is to build up the local Roman Catholic Church. The Benedictine Nuns of Minster Abbey, as the Minster Abbey Trust, aim to support the work of the Roman Catholic Church in the Diocese of Southwark. The charity welcomes others to share in the liturgical prayer of the community.

4. Preservation of the Ancient Monastic buildings

The charity is committed to the preservation and maintenance of the unique historic fabric of the abbey which provides a first-hand experience of centuries of our National heritage.

Activities, specific objectives and relevant policies

The activities of the charity can be divided into four principal areas

  1. Care of the monastic community.

  2. Hospitality and Pastoral Care.

  3. Mission and Global Outreach.

  4. Preservation of the Ancient Monastic Buildings.

1. Caring for members of the monastic community

In order that the charity may carry out its objectives, the charity has the responsibility to provide care for its members, none of whom have resources of their own and all of whom have devoted their lives to this community. All income received from the sale of artefacts, royalties, retreats and donations is donated to the charity and used to provide for the members, and to ensure that the work may continue, and develop.

Page 2

ST MILDRED'S ABBEY

REPORT OF THE TRUSTEES for the Year Ended 31 December 2021

Activities, specific objectives and relevant policies (continued)

2. Hospitality

For over 70 years the Benedictine nuns of Minster Abbey have provided hospitality to all those who come to the monastery for a place of spiritual refreshment. In keeping with the Rule of St. Benedict which is the main spiritual directive for the community, hospitality is an important aspect of Benedictine life.

A. Residential

Although enclosed the sisters’ main outreach is in their work of hospitality primarily through their Guest House. The charity owns and operates a 17 bed Guest House, including a chalet for families. The facilities are used by many residential groups for conferences and retreats.

B. Tours of the Abbey

Minster Abbey has huge importance historically, and architecturally, and is of major significance in the local community. Minster Abbey was founded in 670 AD. Most of the present buildings date back to the 10th and 11th centuries, and are the home of the monastic community of Benedictine nuns. It was only after the reformation that the monastery became a private dwelling. In 1937, when the property was put up for sale, it was acquired by the nuns of St. Walburga's Abbey in Bavaria community was under threat by the Nazi regime. Thus Minster Abbey returned once again to its original purpose as a Benedictine Monastery. In their work of hospitality the sisters welcome visitors for several hours each week in order for the public to view the ancient monastic buildings. The sisters also give guided tours and explain the historic background to this ancient site. Visitors include groups of historians, archaeologists, students and school children locally, nationally and even internationally. The charity also operate an abbey shop which sells some hand-craft items made by the sisters. Public disabled toilet facilities are also available for the use of visitors.

C. Day Groups

In addition to the Guest House, the sisters also have another large meeting room with disabled access. St. Benedict's, is used by many groups who come for day retreats or study meetings, throughout the year. Groups as varied as craft and art groups, prison and hospital chaplains, environmental study groups, Fair-trade groups, groups promoting justice and peace, support groups for counsellors, mental health support groups, interdenominational and inter-faith groups, use the facility. It has an adjacent kitchen with coffee and tea making facilities. Parkminster is a non-residential, day facility available for group meetings and conferences for up to 70 people. The number of groups using Parkminster is steadily increasing.

D. Pastoral Care

The Charity through their ministry of hospitality provide spiritual accompaniment to many people who come to the Abbey seeking help. The philosophy of Benedictine hospitality is to ensure that all who come to the Abbey are welcomed as Christ. It gives special recognition to the poor. Thus, the sisters are often called upon to support those who may be experiencing difficulties, as well as being available for those who request guidance or direction in prayer. In addition the sisters also lead a number of retreats throughout the year, and give talks to groups who request some input.

3. Mission and Global Outreach

The charity provides financial support for monastic communities overseas. We also support the work of Cafod, Aid to the Church in Need and other agencies which alleviate suffering and promote peace and justice throughout the world. Grants and donations are decided on by the trustees in consultation with the other members of the community as appropriate.

Since the time of St. Benedict in the 5th century, liturgical prayer has always been the centre of Benedictine monastic life. The chapel is open to the public from 5:15 a.m. each day until 8:45 p.m. The sisters welcome guests, visitors and the local community to join the prayer services that take place in the chapel seven times throughout the day. Minster Abbey also offers daily Mass and is attended by those on retreat, and the local community, many who come especially for the celebration of the Sunday Eucharist.

4. Preservation of the Ancient Monastic Buildings

The charity is committed to the preservation and maintenance of the unique historic fabric of the abbey which provides a first-hand experience of centuries of our National heritage. It is a Grade 1 listed building. The Abbey provides the main incentive for tourism in Minster.

Page 3

ST MILDRED'S ABBEY

REPORT OF THE TRUSTEES for the Year Ended 31 December 2021

Investment Policy

The charity’s investments are managed by the trustees in consultation with advisors. There are no restrictions on the charity’s power to invest. The charity takes into account income requirements, the risk profile and the advice received from consultants. The trustees’ investment goal is to maintain and enhance the real value of the fund over the medium and long term, whilst producing a modest income which will increase steadily over the long term.

The policy is to maximise total return through a diversified portfolio whilst providing a level of income which may be required by the trust. The Ethical policy precludes investment in any company which after reasonable enquiry has profit from an activity which is contrary to Christian ethics. At present a large portion of the investment portfolio is with Epworth Investments, which has an active and stable ethical policy. It informs the trustees about ethical issues which may be of concern to the charity. The performance of the portfolio and the charity’s investment strategy are reviewed at regular intervals by the trustees.

Activities and performance over the past year

Minster Abbey Trustees are confident that their charitable activities continue to provide benefit for the public.

We hope that the short summary of our work that follows, illustrates some of the important aspects of our outreach:

On Sunday April 4[th] 2021, we were finally able to welcome friends and parishioners to the Sunday Eucharist. When the responsible sister rang people informing them that the Church was once again reopened, many people were in tears. There was an amazing sense of reunion and joy at being able to express this important element of their faith.

Page 4

ST MILDRED'S ABBEY

REPORT OF THE TRUSTEES for the Year Ended 31 December 2021

Activities and performance over the past year (continued)

Once we had opened again, one of our volunteers shared with us: “My volunteer work at Minster Abbey means so much to me. I really look forward to Monday mornings and coming to the Abbey. My husband has C.O.P.D. and is severely disabled. I am his only carer and in these circumstances it is possible to become very isolated and introspective. The regular commitment enables me to meet the sisters and to keep in touch with the world beyond my home. We both manage to join the sisters for Sunday Mass, which is a wonderful uplifting experience, and our lives are enriched by being part of this lovely community”

One of our regular guests wrote to us after being able to return as a Guest after the Covid lockdown:

“Thank you for the few days I spent with you recently. I love Minster for so many things. The place itself is just full of the holiness of so many centuries of prayer and lives given to God. It’s extraordinary to see the really old buildings, to spend time in the beautifully tended gardens where well placed benches allow moments of quiet contemplation and to be able to join you for prayer. You all sing the praises of God so faithfully across the cycle of the year and as the different years go by. It feels as if everyone who comes to Minster Abbey is welcomed into that wheel of prayer, which also holds the concerns of each of us and the troubles of the whole world.”

Page 5

ST MILDRED'S ABBEY

REPORT OF THE TRUSTEES for the Year Ended 31 December 2021

Activities and performance over the past year (continued)

Plans for the coming year 2022

Page 6

ST MILDRED'S ABBEY

REPORT OF THE TRUSTEES for the Year Ended 31 December 2021

Plans for the coming year 2022 (continued)

Reserves policy and financial position

Reserves policy

From the information provided it is clear that the charity carries out a range of activities and is responsible for the care and support of the sisters whose average age is increasing and whose needs are changing. The trustees have examined the need for free reserves i.e. those unrestricted funds not invested in tangible fixed assets, designated for specific purposes or otherwise committed. The trustees consider that, given the nature of the charity’s work and its commitments, the level of free reserves should be approximately equal to 12 to 18 months expenditure.

Long Term plans

The trustees do not anticipate any significant change to the charity or its activities over the next two to five years. It is their intention to continue to meet the following objectives:

Page 7

ST MILDRED'S ABBEY

REPORT OF THE TRUSTEES for the Year Ended 31 December 2021

Governance, Structure and Management

St Mildred's Abbey, Minster is Benedictine, Roman Catholic monastery aggregated to the English Province, of the Subiaco Cassinese Congregation. The trustees of Minster Abbey are the Prioress, and others appointed by the Prioress. Trustees enjoy the same benefits as any other member of the religious community. The monastery is subject to the Constitutions of Minster Abbey, and to the precepts of the Code of Canon Law of the Roman Catholic Church.

Governance, Structure and management reporting

The Trustees are ultimately responsible for the policies, activities and assets of the charity. When necessary they seek legal advice, investment advice or property advice from consultants or professional advisors. The day to day management of the charity’s activities and the implementation of policies are delegated to the appropriate members of the community. Under the terms of the trust deed, the power of appointing and removing trustees is vested with the Prioress of the community.

Mother Nikola Proksch – Prioress Sister Benedict Gaughan Sr. Johanna Caton Sr. Aelred Erwin

Trustees' responsibilities

Law applicable to charities in England and Wales requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the Charity's financial activities during the year and of its financial position at the end of the year.

The Trustees are responsible for keeping proper accounting records, which 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. They are also responsible for safeguarding the assets of the Charity.

Risk Management

The trustees actively review the major risks that the charity faces on a regular basis. The community is aware of the risks in the following areas:

  1. A lack of direction.

  2. Poor skills and training of its members.

  3. The unwise use of its resources.

Operational - looks at the risks inherent in the charities activities including the retreat work and the operation of its facilities- difficulties with staff, poor health and safety policies, lack of disaster recovery policy etc.

Financial risks - include those arising as a result of poor budgetary control, inappropriate spending, poor accounting, inappropriate investment policies, etc.

Reputational – looks at possible damage to the charity’s reputation.

Laws, regulations, external and environment - looks at the effects of government policies, the consequences of non-compliance with laws, and regulations and poor risk assessment in the monastic buildings and guest facilities.

Having assessed the major ricks to which the charity is exposed, the trustees believe that by monitoring reserve levels, and by examining the business risks faced by the charity, they have established effective systems to mitigate those risks. Approved by the trustees and signed on their behalf by:

_______ Mother Prioress Nikola Proksch OSB

Date:

Page 8

ST MILDRED'S ABBEY

STATEMENT OF FINANCIAL ACTIVITIES (including Income and Expenditure Account) for the Year Ended 31 December 2021

Unrestricted Restricted Designated Total Total
Funds Funds Funds Funds Funds
2021 2021 2021 2021 2020
Notes £ £ £ £ £
INCOME AND ENDOWMENTS FROM:
Donations and legacies
Donations 111,880 - - 111,880 124,930
Grants - - - - -
Charitable activities
Rental income 15,930 - - 15,930 14,882
Guesthouse 555 - - 555 7,545
Other trading activities
Shop - - - - 129
Investments 13,937 - - 13,937 11,693
Other
Pensions 86,515 - - 86,515 67,489
Livestock - - - - -
Total 228,817 - - 228,817 226,668
EXPENDITURE ON:
Raising funds
Costs of trading fundraising - - - - -
Charitable activities 169,434 - - 169,434 154,307
Other - - - - -
Total 3 169,434 - - 169,434 154,307
Net gains/(losses) on investments:
Gain/(loss) on revaluation and sale of inves 75,937 - - 75,937 (26,676)
Net income/(expenditure) 135,320 - - 135,320 45,685
Transfers between funds - - - - -
Other recognised gains/(losses) - - - - -
Net movement in funds 135,320 - - 135,320 45,685
Reconciliation of funds:
Total funds brought forward 1,721,579 - - 1,721,579 1,675,894
Total funds carried forward 11 1,856,899 - - 1,856,899 1,721,579

Movements in funds are disclosed in Note 11 to the financial statements.

The notes form part of these financial statements

Page 9

ST MILDRED'S ABBEY

STATEMENT OF FINANCIAL POSITION

31 December 2021

Notes
FIXED ASSETS
Tangible assets
7
Investments
8
CURRENT ASSETS
Debtors
9
Cash at bank and in hand
CREDITORS
Amounts falling due within one year
10
NET CURRENT ASSETS
TOTAL ASSETS LESS CURRENT
LIABILITIES
RESERVES
Restricted funds
Designated funds
Unrestricted funds
Income and expenditure
11
31.12.21
£
£
812,915
626,798
1,439,713
4,536
414,199
418,735
1,549
417,186
1,856,899
-
-
1,856,899
1,856,899
31.12.20
£
£
834,497
556,760
1,391,257
-
331,886
331,886
1,564
330,322
1,721,579
-
-
1,721,579
1,721,579

The charity is entitled to exemption from audit.

The trustees have not required the charity to obtain an audit of its financial statements for the year ended 31 December 2021.

The trustees acknowledge responsibilities for:

These accounts have been prepared in accordance with the provision applicable to small companies subject to the small companies regime and in accordance with FRS102 SORP.

The financial statements were approved by the Board of Trustees on ............................................. and were signed by:

....................................................... Trustee

Mother Prioress Nikola Proksch OSB

Page 10

ST MILDRED'S ABBEY

NOTES TO THE FINANCIAL STATEMENTS for the Year Ended 31 December 2021

1. ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with the provisions of Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Plant and machinery etc

Fund accounting

Incoming resources

All incoming resources are included in the statement of financial activities when the charity is entitled to the income and the amount can be quantified with reasonable accuracy. The following specific policies are applied to particular categories of income:

Resources expended

Expenditure is recognised on an accruals basis as a liability is incurred. Expenditure includes VAT and is reported as part of the expenditure to which it relates:

2.

TRUSTEE REMUNERATION AND RELATED PARTY TRANSACTIONS

No trustee received any remuneration during the year (2020 Nil).

No trustee or other person related to the charity had any personal interest in any contract or transaction entered into by the charity during the year (2020 Nil).

Page 11

ST MILDRED'S ABBEY

NOTES TO THE FINANCIAL STATEMENTS - continued for the Year Ended 31 December 2021

  1. TOTAL RESOURCES EXPENDED
Basis of allocation
Costs directly
allocated to activities
Establishment costs
Direct
Housekeeping
Direct
Social security
Direct
Chapel
Direct
Infirmary
Direct
Donations
Direct
Library
Direct
Garden expenses
Direct
Accountancy
Direct
Finance charges
Direct
Course fees
Direct
Support costs
allocated to activities
Travelling
Usage
Communications
Usage
Post & stationery
Usage
Sundry expenses
Usage
Depreciation
Usage
Total resources
expended
Minster Abbey
repair and
preservation
Religious activities
Shop
Guesthouse
Governance
2021 Total
£
£
£
£
£
£
28,911
28,537
10,475
-
67,923
-
16,418
-
508
-
16,926
-
1,630
-
-
-
1,630
-
3,970
-
-
-
3,970
-
16,079
-
-
-
16,079
-
9,636
-
-
-
9,636
-
2,215
-
-
-
2,215
14,998
-
-
-
-
14,998
-
-
-
-
1,260
1,260
-
-
-
-
213
213
-
1,405
-
-
-
1,405
-
1,641
-
-
-
1,641
-
1,978
-
-
-
1,978
-
1,223
-
-
-
1,223
-
5,886
-
-
-
5,886
18,837
3,614
-
-
-
22,451
62,746
94,232
-
10,983
1,473
169,434
2020 Total
£
62,496
15,868
1,775
4,190
11,667
13,259
717
9,071
1,200
259
503
1,771
2,102
1,343
5,895
22,191
154,307
  1. NET INCOMING RESOURCES FOR THE YEAR These are stated after charging:

Depreciation - owned assets

31.12.21 31.12.20 £ £ 22,451 22,191

continued...

Page 12

ST MILDRED'S ABBEY

NOTES TO THE FINANCIAL STATEMENTS - continued

for the Year Ended 31 December 2021

5. AMOUNTS WRITTEN OFF INVESTMENTS

AMOUNTS WRITTEN OFF INVESTMENTS
31.12.21 31.12.20
£ £
Gain/(Loss) on investment 75,937 (26,676)

6. TAXATION

Analysis of the tax charge

No liability to UK corporation tax arose on ordinary activities for the year ended 31 December 2021 nor for the year ended 31 December 2020.

7. TANGIBLE FIXED ASSETS

Plant and
Land and machinery
buildings etc Totals
£ £ £
COST
At 1 January 2021 540,649 544,538 1,085,187
Additions - 869 869
At 31 December 2021 540,649 **545,407 ** 1,086,056
DEPRECIATION
At 1 January 2021 110,930 139,760 250,690
Charge for year 10,813 11,638 22,451
At 31 December 2021 121,743 151,398 273,141
NET BOOK VALUE
At 31 December 2021 418,906 394,009 812,915
At 31 December 2020 429,719 404,778 834,497
FIXED ASSET INVESTMENTS
Other
investments
£
COST OR VALUATION
At 1 January 2021 556,761
Additions 31,500
Disposals (37,400)
Revaluations 75,937
At 31 December 2021 626,798
NET BOOK VALUE
At 31 December 2021 626,798
At 31 December 2020 556,761
Cost or valuation at 31 December 2021 is represented by:
Other
investments
£
Valuation in 2021 626,798

8. FIXED ASSET INVESTMENTS

Page 13

continued…

ST MILDRED'S ABBEY

NOTES TO THE FINANCIAL STATEMENTS - continued for the Year Ended 31 December 2021

8. FIXED ASSET INVESTMENTS - continued

If the investments had not been revalued they would have been included at the following historical cost:


cost:
31.12.21 31.12.20
£ £
Cost 550,861 583,436
Fixed asset investments were valued on an open market basis on 31 December 2021 by
Henderson Global & Epworth Inv Managers.
9. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.12.21 31.12.20
£ £
Prepayments and accrued income 4,536 -
10. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.12.21 31.12.20
£ £
Other creditors 1,549 1,564
11. MOVEMENT IN FUNDS
Net
movement
At 1.1.21 in funds At 31.12.21
£ £ £
Unrestricted funds
General fund 1,721,579 135,320 1,856,899
Designated Funds - - -
Restricted Funds
Parkminster - - -
Restoration fund - - -
TOTAL FUNDS 1,721,579 135,320 1,856,899
Net movement in funds, included in the above are as follows:
Incoming Resources Transfer Movement
resources expended in funds in funds
£ £ £ £
Unrestricted funds
General fund 304,754 (169,434) - 135,320
Designated funds - -
Restricted Funds
Parkminster - - - -
Restoration fund - - - -
TOTAL FUNDS 304,754 (169,434) - 135,320

Page 14

continued…

CHARTERED ACCOUNTANTS' INDEPENDENT EXAMINER’S REPORT TO THE TRUSTEES ON THE UNAUDITED FINANCIAL STATEMENTS OF ST MILDRED’S ABBEY

We report on the accounts of the company for the year ended 31 December 2021, which are set out on pages 9 to 14.

Respective responsibilities of trustees and examiner

The trustees are responsible for the preparation of the accounts. The trustees consider that an audit is not required for this year under section 144 of the Charities Act 2011 (the 2011 Act) and that an independent examination is needed. Having satisfied ourselves that the charity is not subject to audit under company law and is eligible for independent examination, it is our responsibility to:

Basis of independent examiner’s report

Our examination was carried out in accordance with the general Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from you as trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit and consequently no opinion is given as to whether the accounts present a ‘true and fair view’ and the report is limited to those matters set out in the statement below.

Independent examiner’s statement

In connection with our examination, no matter has come to our attention:

(2) to which, in our opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached.

Hilary Adams Ltd Chartered Accountants 158 High Street Herne Bay Kent CT6 5NP

Date: .............................................

This page does not form part of the statutory financial statements Page 15