**Order of Hermit Friars of St Augustine Annual Report and Audited Financial Statements** 

**for the financial year ended 28 February 2021** 

**Katherine Tully Senior Statutory Auditor Chartered Certified Accountants and Statutory Auditor On behalf of Allen Tully & Co 19 Palace Square London SE19 2LT United Kingdom** 

**Charity Number: 233010** 



## **Order of Hermit Friars of St Augustine CONTENTS** 

||**Page**|
|---|---|
|Reference and Administrative Information|3|
|Trustees' Report|4 - 5|
|Statement of Trustees' Responsibilities|6|
|Independent Auditor's Report|7 - 9|
|Statement of Financial Activities|10|
|Balance Sheet|11|
|Statement of Cash Flows|12|
|Notes to the Financial Statements|13 - 20|
|Supplementary Information relating to the Financial Statements|22 - 22|



**2** 



**Order of Hermit Friars of St Augustine REFERENCE AND ADMINISTRATIVE INFORMATION** 

## **Trustees** 

## **Charity Number in England and Wales** 

## **Principal Address** 

## **Auditors** 

## **Bankers** 

## **Solicitors** 

Rev Robert Marsh Rev Stefan Park Rev Barry Clifford Rev Ian Wilson 

233010 55 Fulham Palace Road London W6 8AU United Kingdom 

Katherine Tully Senior Statutory Auditor Chartered Certified Accountants and Statutory Auditor On behalf of Allen Tully & Co 19 Palace Square London SE19 2LT United Kingdom 

Barclays Bank 75 King Street Hammersmith London W6 9HY 

Segens Blount Petre Glade House 52-54 Carter Lane London EC4V 5EF 

**3** 



## **Order of Hermit Friars of St Augustine TRUSTEES' REPORT** 

for the financial year ended 28 February 2021 

The trustees present their Trustees' Report and the audited financial statements for the financial year ended 28 February 2021. 

The financial statements are prepared in accordance with the Charities Act 2011 and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their financial statements in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). 

The Trustees' Report contains the information required to be provided in the Trustees' Annual Report under the Statement of Recommended Practice (SORP) guidelines. The trustees of the charity are also charity trustees for the purpose of charity law and under the charity's constitution are known as members of the board of trustees. 

In this report the trustees of Order of Hermit Friars of St Augustine present a summary of its purpose, governance, activities, achievements and finances for the financial year 28 February 2021. 

Registered Office 55 Fulham Palace Road London W6 8AU 

## **Trustees** 

The trustees who served during the year are as follows: 

Rev Robert Marsh Rev Stefan Park Rev Barry Clifford Rev Ian Wilson 

The charity is a registered charity and hence the report and results are presented in a form which complies with the requirements of the Charities Act 2011. 

## **The Trustees use and rely on the following professional services** : 

- Segens Blount Petre Solicitors for all legal matters. 

- Rathbones Greenbank Investments for the management of their financial investment portfolio. 

- Allen Tully & Co for accountancy and audit of the financial statements. 

## **Mission, Objectives and Strategy** 

## **Mission Statement** 

The charitable trust aims to support the religious and charitable works conducted by members of the Order in Britain and overseas. The principal activity is the parish work in four locations including leading church services, administering the sacraments, and providing spiritual and sometimes material, succour to those in need. The charity is a public benefit entity. 

## **Objectives** 

The objectives of the Order are to further the aims of the Roman Catholic Church, mainly through parish work, teaching, spiritual direction and overseas missions.  By the example of community life, the members give witness to the fundamentally communitarian character of the Church.  Parish work in four locations involves leading church services, administering the sacraments, and providing spiritual, and sometimes material, succour to those in need. Teaching used to be conducted through two schools of the Province. One was closed and the other handed over to lay control and ownership some years ago. As well as in the parishes, spiritual direction is provided in a more concentrated way in a retreat house. Individual members may also be engaged in study, writing and academic work. There are no longer men working overseas, though the Province still supports the training of men in the Order in its former missions in South Korea and Nigeria, for which funds are raised in the UK. 

**4** 



## **Order of Hermit Friars of St Augustine TRUSTEES' REPORT** 

for the financial year ended 28 February 2021 

## **Structure, Governance and Management** 

## **Structure** 

The Order is an international religious congregation of men in the Roman Catholic Church working in over fifty countries. It is governed by a Prior General and his Council based in Rome.  Its members take lifelong vows of poverty, chastity and obedience.  Most are priests, though some may choose to be lay brothers.  Worldwide, the Order is divided into provinces and smaller circumscriptions. The Order in the UK comes under the Province of England and Scotland, led by an elected Provincial and a Council of four members, who are also the Trustees of the Registered Charity.  The Provincial is the Chair of Trustees. There is also a Provincial Bursar and a Secretary. When a new Provincial and Council is elected, the newly elected members assume the trusteeship.  Elections take place every four years and coincide with a Provincial Chapter, at which all the members gather to discuss the state of the Province and plan for the future. There are five communities in the UK, with a Prior in charge of each community. In exceptional circumstances a member may be given permission to live outside of community. 

## **Review of Activities, Achievements and Performance** 

The four parishes under the administration of the Province of England and Scotland are well attended and provide spiritual sustenance on a regular basis for about four thousand people, as well as having an influence beyond. Twenty years ago, there were twelve parishes and an independent secondary school in the Province, but numbers have gone down since then and more than half the membership is over seventy years of age. Currently, there are two men in training for the priesthood. However, numbers currently entering are not sufficient to replace the existing membership. As numbers decrease, there is a plan to develop one location, Hammersmith, where there is an active parish, to offer accommodation for retiring members as well as providing a base for the Order in the UK for the foreseeable future. 

## **Financial Review** 

The financial results for the year are presented on pages 8-20. There is a deficit as shown in the SOFA of £164,028. The balance in the bank is £2,917,418 and in Financial Fixed Assets is £1,362,502. The Order therefore is financially secure for the foreseeable future. 

The Trustees have a reserve policy of the equivalent to six months' expenditure. 

## **Results and Dividends** 

At the end of the financial year the charity has assets of £10,076,640 (2020 - £9,699,195) and liabilities of £17,460 (2020 - £18,780). The net assets of the charity have increased by £378,765. 

In accordance with the Articles of Association, the Trustees retire by rotation and, being eligible, offer themselves for re-election. 

## **Compliance with Sector-Wide Legislation and Standards** 

The charity engages pro-actively with legislation, standards and codes which are developed for the sector. Order of Hermit Friars of St Augustine subscribes to and is compliant with the following: 

- The Charities SORP (FRS 102) 

## **Funds held as Custodian Trustee on behalf of Others** 

The charity does not hold any funds as Custodian Trustee on behalf of others. 

## **Approved by the Board of Trustees on 30 November 2021 and signed on its behalf by:** 

**Rev Robert Marsh Trustee** 

**________________________________ Rev Stefan Park Trustee** 

**5** 



## **Order of Hermit Friars of St Augustine STATEMENT OF TRUSTEES' RESPONSIBILITIES** 

for the financial year ended 28 February 2021 

The trustees are responsible for preparing the financial statements in accordance with applicable law and regulations. 

The 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 assets, liabilities and financial position of the charity as at the financial year end date and of the surplus or deficit of the charity and otherwise comply with the Charities Act 2011. 

In preparing these financial statements, the trustees are required to: 

- select suitable accounting policies and apply them consistently; 

- make judgements and estimates that are reasonable and prudent; 

- state whether the financial statements have been prepared in accordance with the relevant financial reporting framework, identify those standards, and note the effect and the reasons for any material departure from those standards; and 

- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation. 

The trustees confirm that they have complied with the above requirements in preparing the financial statements. 

The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charity’s transactions and disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. 

The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charity’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. 

## **Approved by the Board of Trustees on 30 November 2021 and signed on its behalf by:** 

**Rev Robert Marsh Trustee** 

**________________________________ Rev Stefan Park Trustee** 

**6** 



## **INDEPENDENT AUDITOR'S REPORT to the Members of Order of Hermit Friars of St Augustine** 

## **Report on the audit of the financial statements** 

## **Opinion** 

We have audited the charity financial statements of Order of Hermit Friars of St Augustine ('the charity’) for the financial year ended 28 February 2021 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and notes to the financial statements, including the summary of significant accounting policies set out in note 3. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with FRS 102. 

In our opinion, when reporting in accordance with a fair presentation framework the financial statements: 

- give a true and fair view of the state of the charity’s affairs as at 28 February 2021 and of its deficit for the financial year then ended; 

- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and 

- have been prepared in accordance with the requirements of the Charities Act 2011. 

## **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 ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and the Provisions Available for Audits of Small Entities, in the circumstances set out in Note 5 to the financial statements, 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 charity’s ability to continue as a going concern for a period of at least twelve months from the date when the financial statements are authorised for issue. 

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

## **Other Information** 

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

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. 

## **Opinion on other matter prescribed by the Companies Act 2006** 

In our opinion, based on the work undertaken in the course of the audit: 

- the information given in the Trustees' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and 

- the Trustees' Report has been prepared in accordance with applicable legal requirements. 

## **Matters on which we are required to report by exception** 

In the light of our knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees' Report. 

We have nothing to report in respect of the following matters where the Charities Act 2011 requires us to report to you if, in our opinion: 

- adequate accounting records have not been kept; or 

- the financial statements are not in agreement with the accounting records and returns; or 

- certain disclosures of trustees' remuneration specified by law are not made; or 

- the trustees were not entitled to prepare the financial statements in accordance with the small companies’ regime and take advantage of the small companies' exemption in preparing the Trustees' Annual Report. 

**7** 



## **INDEPENDENT AUDITOR'S REPORT to the Members of Order of Hermit Friars of St Augustine** 

## **Responsibilities of trustees for the financial statements** 

As explained more fully in the Statement of Trustees' Responsibilities set out on page 6, the trustees 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 they 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 management either intends to liquidate the charity or to cease operations, or has no realistic alternative but to do so. 

## **Auditor's responsibilities for the audit of the financial statements** 

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: 

In identifying and assessing the risks of material misstatement in respect of irregularities, including fraud, we considered the following: 

- (i) The nature of the sector in which the charity operates, its control environment and financial performance. 

- (ii) Making inquiries of trustees and senior management, including obtaining and receiving supporting documentation, concerning the charity’s policies and procedures relating to: 

   - Detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud; and 

   - The internal controls established to mitigate risks related to fraud. 

- (iii) Discussing among the engagement team how and where fraud might occur in the financial statements and any potential indicators of fraud. 

## **Further information regarding the scope of our responsibilities as auditor** 

As part of an audit in accordance with ISAs (UK), we exercise professional judgement and maintain professional scepticism throughout the audit. We also: 

- Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. 

- Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the charity’s internal control. 

- Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by trustees. 

- Conclude on the appropriateness of the trustees' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the charity’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our Auditor's Report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our Auditor's Report. However, future events or conditions may cause the charity to cease to continue as a going concern. 

- Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. 

**8** 



## **INDEPENDENT AUDITOR'S REPORT to the Members of Order of Hermit Friars of St Augustine** 

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. 

## **The purpose of our audit work and to whom we owe our responsibilities** 

This report is made solely to the charity’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charity’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s members as a body, for our audit work, for this report, or for the opinions we have formed. 

**__________________________________ KATHERINE TULLY SENIOR STATUTORY AUDITOR** Chartered Certified Accountants and Statutory Auditor On behalf of Allen Tully & Co 19 Palace Square London SE19 2LT United Kingdom 

## **30 November 2021** 

**9** 



## **Order of Hermit Friars of St Augustine STATEMENT OF FINANCIAL ACTIVITIES** 

for the financial year ended 28 February 2021 

|||**Unrestricted**|**Restricted**|**Total**|Unrestricted|Restricted|Total|
|---|---|---|---|---|---|---|---|
|||**Funds**|**Funds**||Funds|Funds||
|||**2021**|**2021**|**2021**|2020|2020|2020|
||**Notes**|<br>**£**|**£**|**£**|£|£|£|
|**Incoming Resources**||||||||
|Voluntary Income|**6.1**|<br>**70,729**|**7,957**|**78,686**|95,191|3,548|98,739|
|Charitable activities||||||||
|Religious Ministry,|**6.2**|<br>**134,426**|**64,644**|**199,070**|266,041|33,052|299,093|
|Retirement Welfare,||||||||
|Restoration and Missions||||||||
|Investments|**6.3**|<br>**91,795**|**2,314**|**94,109**|158,783|2,917|161,700|
|||───────|───────|───────|───────|───────|───────|
|**Total incoming resources**||**296,950**|**74,915**|**371,865**|520,015|39,517|559,532|
|||───────|───────|───────|───────|───────|───────|
|**Resources Expended**||||||||
|Charitable activities|**7.1**|<br>**838,529**|**12,987**|**851,516**|906,341|62,083|968,424|
|||───────|───────|───────|───────|───────|───────|
|Net gains/(losses) on||**315,623**|**-**|**315,623**|(67,000)|-|(67,000)|
|investments||||||||
|||───────|───────|───────|───────|───────|───────|
|**Net incoming/outgoing**||**(225,956)**|**61,928**|**(164,028)**|(453,326)|(22,566)|(475,892)|
|**resources before**||||||||
|**transfers**||||||||
|Gross transfers between||**-**|**-**|**-**|-|-|-|
|funds||||||||
|||───────|───────|───────|───────|───────|───────|
|**Other recognised gains/(losses):**||||||||
|Surplus/(deficit) for the||**(225,956)**|**61,928**|**(164,028)**|(453,326)|(22,566)|(475,892)|
|financial year||||||||
|Unrealised gains/(losses) on||**542,793**|**-**|**542,793**|-|-|-|
|property||||||||
|||───────|───────|───────|───────|───────|───────|
|**Net movement in funds**||**316,837**|**61,928**|**378,765**|(453,326)|(22,566)|(475,892)|
|**for the financial year**||||||||
|**Reconciliation of funds**||||||||
|Balances brought forward at|**18**|<br>**9,273,096**|**407,319**|**9,680,415**|9,726,422|429,885|10,156,307|
|1 March 2020||||||||
|||───────|───────|───────|───────|───────|───────|
|**Balances carried forward**||**9,589,933**|**469,247**|**10,059,180**|9,273,096|407,319|9,680,415|
|**at 28 February 2021**||||||||
|||═══════|═══════|═══════|═══════|═══════|═══════|



The Statement of Financial Activities includes all gains and losses recognised in the financial year. All income and expenditure relate to continuing activities. 

The notes on pages 13 to 20 form part of the financial statements 

**10** 



## **Order of Hermit Friars of St Augustine BALANCE SHEET** 

as at 28 February 2021 

|||**2021**|2020|
|---|---|---|---|
||**Notes**|**£**|£|
|**Fixed Assets**||||
|Tangible assets|**12**|**5,736,268**|5,342,677|
|Investments|**13**|**1,362,502**|1,055,250|
|||───────|───────|
|||**7,098,770**|6,397,927|
|||───────|───────|
|**Current Assets**||||
|Debtors|**14**|**60,452**|7,000|
|Cash at bank and in hand||**2,917,418**|3,294,268|
|||───────|───────|
|||**2,977,870**|3,301,268|
|||───────|───────|
|**Creditors: Amounts falling due within one year**|**15**|**(17,460)**|(18,780)|
|||───────|───────|
|**Net Current Assets**||**2,960,410**|3,282,488|
|||───────|───────|
|**Total Assets less Current Liabilities**||**10,059,180**|9,680,415|
|||═══════|═══════|
|**Funds**||||
|Restricted trust funds||**469,247**|407,319|
|General fund (unrestricted)||**9,589,933**|9,273,096|
|||───────|───────|
|**Total funds**|**18**|**10,059,180**|9,680,415|
|||═══════|═══════|



The total unrestricted funds include a revaluation reserve of £ (542,793). 

**Approved by the Board of Trustees and authorised for issue on 30 November 2021 and signed on its behalf by** 

**Rev Robert Marsh Trustee** 

**________________________________ Rev Stefan Park Trustee** 

The notes on pages 13 to 20 form part of the financial statements 

**11** 



## **Order of Hermit Friars of St Augustine STATEMENT OF CASH FLOWS** 

for the financial year ended 28 February 2021 

|**Order of Hermit Friars of St Augustine**<br>**STATEMENT OF CASH FLOWS**<br>for the financial year ended 28 February 2021||||
|---|---|---|---|
|||**2021**|2020|
||**Notes**|**£**|£|
|**Cash flows from operating activities**||||
|Net movement in funds||**(164,028)**|(475,892)|
|Adjustments for:||||
|Depreciation||**131,924**|140,603|
|Interest receivable and similar income||**(26,457)**|(30,547)|
|Gains and losses on disposal of fixed assets||**2,778**|-|
|||───────|───────|
|||**(55,783)**|(304,742)|
|Movements in working capital:||||
|Movement in debtors||**(53,452)**|7,947|
|Movement in creditors||**(1,320)**|(16,664)|
|||───────|───────|
|Cash generated from operations||**(110,555)**|(313,459)|
|||───────|───────|
|**Cash flows from investing activities**||||
|Interest received||**1,239**|4,914|
|Dividends received||**25,218**|26,304|
|Payments to acquire tangible assets||**(273,786)**|(132,260)|
|Payments to acquire investments||**(204,042)**|(196,780)|
|Receipts from sales of tangible assets||**14,500**|-|
|Receipts from sales of investments||**170,576**|210,292|
|||───────|───────|
|Net cash generated from investment activities||**(266,295)**|(87,530)|
|||───────|───────|
|**Net increase in cash and cash equivalents**||**(376,850)**|(400,989)|
|**Cash and cash equivalents at 1 March 2020**||**3,294,268**|3,695,257|
|||───────|───────|
|**Cash and cash equivalents at 28 February 2021**|**20**|**2,917,418**|3,294,268|
|||═══════|═══════|



**12** 



**Order of Hermit Friars of St Augustine NOTES TO THE FINANCIAL STATEMENTS** 

for the financial year ended 28 February 2021 

## **1. FINANCIAL INSTRUMENTS** 

## **Cash and Receivables** 

There is an amount of £2,917,418 in current accounts, deposit accounts and NSI bonds. Deposit accounts have a maturity of one year or less. The charity has debtors which are included in Note 9, all of which are included at amortised cost. 

## **2. GENERAL INFORMATION** 

Order of Hermit Friars of St Augustine is a charity incorporated in the United Kingdom. The registered office of the charity is 55 Fulham Palace Road, London, W6 8AU, United Kingdom which is also the principal place of business of the charity. The financial statements have been presented in Pound Sterling (£) which is also the functional currency of the charity. 

## **3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES** 

The following accounting policies have been applied consistently in dealing with items which are considered material in relation to the charity’s financial statements. 

## **Basis of preparation** 

The financial statements have been prepared on the going concern basis under the historical cost convention, modified to include certain items at fair value. The financial statements have been prepared in accordance with the Statement of Recommended Practice (SORP) "Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland FRS 102". 

As permitted by the Companies Act 2006, the charity has varied the standard formats in that act for the Statement of Financial Activities and the Balance Sheet. Departures from the standard formats are to comply with the requirements of the Charities SORP and are in compliance with section 4.7, 10.6 and 15.2 of that SORP. 

## **Statement of compliance** 

The financial statements of the charity for the financial year ended 28 February 2021 have been prepared on the going concern basis and in accordance with the Statement of Recommended Practice (SORP) "Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland FRS 102". 

## **Fund accounting** 

The following are the categories of funds maintained: 

## **Restricted funds** 

There are three restricted funds with purposes as follows: 

1. Retirement Welfare Fund - To provide support for the retired members of the Order in their advanced years. 

2. Church Restoration Fund - To provide resources for the upkeep and ongoing maintenance of the churches of the Order. 

3. Missions Fund - To continue the missionary work of the Order overseas in Nigeria and South Korea and to support the training of young men in the priesthood in these countries. 

## **Unrestricted funds** 

The principal use of the unrestricted funds is to fund the parish work in four locations including leading church services, administering the sacraments and providing spiritual and sometimes material succour to those in need. 

**13** 



**Order of Hermit Friars of St Augustine NOTES TO THE FINANCIAL STATEMENTS** 

continued 

for the financial year ended 28 February 2021 

## **Incoming Resources** 

Voluntary income or capital is included in the Statement of Financial Activities when the charity receives it. Entitlement to legacies is considered established when the charity has been notified of a distribution made by the executors. Income received in advance of due performance under a contract is accounted for as deferred income until earned. Grants for activities are recognised as income when the related conditions for legal entitlement have been met. All other income is accounted for on an accruals basis. 

## **Income from charitable activities** 

Income from charitable activities include income earned from the supply of services under contractual arrangements and from performance related grants which have conditions that specify the provision of particular services to be provided by the charity. Income from government and other co-funders is recognised when the charity is legally entitled to the income because it is fulfilling the conditions contained in the related funding agreements. Where a grant is received in advance, its recognition is deferred and included in creditors. Where entitlement occurs before income is received, it is accrued in debtors. 

Grants from governments and other co-funders typically include one of the following types of conditions: 

- Performance based conditions: whereby the charity is contractually entitled to funding only to the extent that the core objectives of the grant agreement are achieved. Where the charity is meeting the core objectives of a grant agreement, it recognises the related expenditure, to the extent that it is reimbursable by the donor, as income. 

-Time based conditions: whereby the charity is contractually entitled to funding on the condition that it is utilised in a particular period. In these cases, the charity recognises the income to the extent it is utilised within the period specified in the agreement. 

In the absence of such conditions, assuming that receipt is probable and the amount can be reliably measured, grant income is recognised once the charity is notified of entitlement. 

Grants received towards capital expenditure are credited to the Statement of Financial Activities when received or receivable, whichever is earlier. 

## **Trade and other debtors** 

Trade and other debtors are initially recognised at fair value and thereafter stated at amortised cost using the effective interest method less impairment losses for bad and doubtful debts except where the effect of discounting would be immaterial. In such cases the receivables are stated at cost less impairment losses for bad and doubtful debts. 

## **Trade and other creditors** 

Trade and other creditors are initially recognised at fair value and thereafter stated at amortised cost using the effective interest method except where the effect of discounting would be immaterial. In such cases they are stated at cost. 

## **Tangible fixed assets and depreciation** 

Tangible fixed assets are stated at cost (original market value) or at valuation, less accumulated depreciation. The charge to depreciation is calculated to write off the original cost or valuation of tangible fixed assets (excluding Land which is not depreciated), less their estimated residual value, over their expected useful lives as follows: 

Buildings freehold - 2% Reducing Balance Fixtures, fittings and equipment - 20% Reducing Balance Motor vehicles - 25% Reducing Balance 

## **Impairment of Assets** 

An impairment loss occurs when the carrying amount of an asset exceeds its recoverable amount. At year end, the trustees assess whether there is any indication that an asset is impaired. If there is no indication of impairment, then the trustees do not estimate the recoverable amount. If there is an indication of impairment, then the trustees will estimate the recoverable amount. An impairment loss will be recognised if, and only if, the recoverable amount of the asset is less than the carrying amount. The recoverable amount of an asset is the higher of its fair value less costs to sell the asset and its value in use. 

**14** 



continued 

## **Order of Hermit Friars of St Augustine NOTES TO THE FINANCIAL STATEMENTS** 

for the financial year ended 28 February 2021 

## **Investment properties** 

Investment property is property held either to earn rental income, or for capital appreciation (including future re-development) or for both, but not for sale in the ordinary course of business. 

Investment property is initially measured at cost, which includes the purchase cost and any directly attributable expenditure. 

The investment property has been internally revalued this year using an estimate. The investment property will be valued at its fair value at the end of the next reporting date 28th February 2022 by professional external valuers and will be subsequently valued every five years. 

The difference between the fair value of an investment property at the reporting date and its carrying value prior to the valuation is recognised in the Statement of Financial Activities as a fair value gain or loss. Any gain or loss on disposal of an investment property (calculated as the difference between the net proceeds from disposal and the carrying amount of the item) is recognised in the Statement of Financial Activities. 

## **Investments** 

Investments held as fixed assets are stated at market value with any movements included in the SOFA. Income from other financial fixed asset investments together with any related tax credit is recognised in the profit and loss account in the year in which it is receivable. 

## **Debtors** 

Debtors are recognised at the settlement amount due after any discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due. Income recognised by the charity from government agencies and other co-funders, but not yet received at year end, is included in debtors. 

## **Cash at bank and in hand** 

Cash at bank and in hand comprises cash on deposit at banks requiring less than three months’ notice of withdrawal. 

## **Taxation** 

The charity is exempt from taxation under S505 Income and Corporation Taxes Act 1988. 

## **Cash and Cash Equivalents** 

Cash and Cash Equivalents comprise cash at bank and in hand, demand deposits with banks and other short-term highly liquid investments with original maturities of three months or less and bank overdrafts. In the statement of financial position, bank overdrafts are shown within creditors. 

## **4. SIGNIFICANT ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY** 

There are no sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year. 

## **5. PROVISIONS AVAILABLE FOR AUDITS OF SMALL ENTITIES** 

In common with many other charitable companies of our size and nature, we use our auditors to assist with the preparation of the financial statements. 

|**6.**|**INCOME**|||||
|---|---|---|---|---|---|
|**6.1**|**DONATIONS AND LEGACIES**|**Unrestricted**|**Restricted**|**2021**|2020|
|||**Funds**|**Funds**|||
|||**£**|**£**|**£**|£|
||Donations|**70,729**|**7,957**|**78,686**|98,739|
|||═══════|═══════|═══════|═══════|
|**6.2**|**CHARITABLE ACTIVITIES**|**Unrestricted**|**Restricted**|**2021**|2020|
|||**Funds**|**Funds**|||
|||**£**|**£**|**£**|£|
||Religious Ministry|**134,426**|**-**|**134,426**|266,041|
||Retirement Welfare|**-**|**64,644**|**64,644**|33,052|
|||───────|───────|───────|───────|
|||**134,426**|**64,644**|**199,070**|299,093|
|||═══════|═══════|═══════|═══════|



**15** 



continued 

## **Order of Hermit Friars of St Augustine NOTES TO THE FINANCIAL STATEMENTS** 

for the financial year ended 28 February 2021 

|**6.3**|**INVESTMENTS**|||**Unrestricted**|**Restricted**|**2021**|2020|
|---|---|---|---|---|---|---|---|
|||||**Funds**|**Funds**|||
|||||**£**|**£**|**£**|£|
||Investment Income|||**91,795**|**2,314**|**94,109**|161,700|
|||||═══════|═══════|═══════|═══════|
|**7.**|**EXPENDITURE**|||||||
|**7.1**|**CHARITABLE ACTIVITIES**|**Direct**||<br>**Other**|**Support**|**2021**|2020|
|||**Costs**||<br>**Costs**|**Costs**|||
||||**£**|<br>**£**|**£**|**£**|£|
||Religious Ministry|**86,755**||<br>**30,494**|**721,280**|**838,529**|901,729|
||Retirement Welfare||**-**|<br>**699**|**78**|**777**|27,784|
||Restoration||**-**|<br>**-**|**978**|**978**|16,159|
||Missions||**-**|<br>**-**|**11,232**|**11,232**|22,752|
|||───────||<br>───────|───────|───────|───────|
|||**86,755**||<br>**31,193**|**733,568**|**851,516**|968,424|
|||═══════||<br>═══════|═══════|═══════|═══════|
|**7.2**|**SUPPORT COSTS**||||**Charitable**|**2021**|2020|
||||||**Activities**|||
||||||**£**|**£**|£|
||Community Expenses||||**236,765**|**236,765**|263,850|
||General Office||||**52,083**|**52,083**|55,672|
||Services charges||||**12,487**|**12,487**|14,757|
||Insurance||||**59,569**|**59,569**|34,537|
||Repairs and Renewal||||**174,040**|**174,040**|160,935|
||Investment Management Fees||||**8,371**|**8,371**|8,277|
||Legal and Professional (Governance)||||**12,781**|**12,781**|61,723|
||Audit Fees (Governance)||||**6,560**|**6,560**|6,560|
||Accountancy Services (Governance)||||**14,440**|**14,440**|14,440|
||Curia Costs (Governance)||||**24,548**|**24,548**|-|
||Depreciation||||**131,924**|**131,924**|140,603|
||||||───────|───────|───────|
||||||**733,568**|**733,568**|761,354|
||||||═══════|═══════|═══════|
|**8.**|**ANALYSIS OF SUPPORT COSTS**|||||||
|||**Basis of**||||**2021**|2020|
|||**Apportionment**||||**£**|£|
||Community Expenses|Activity||||**236,765**|263,850|
||General Office|Staff Time||||**52,083**|55,672|
||Services charges|Activity||||**12,487**|14,757|
||Insurance|Activity||||**59,569**|34,537|
||Repairs and Renewal|Activity||||**174,040**|160,935|
||Investment Management Fees|Activity||||**8,371**|8,277|
||Legal and Professional (Governance)|Usage||||**12,781**|61,723|
||Audit Fees (Governance)|Administration||||**6,560**|6,560|
||Accountancy Services (Governance)|Administration||||**14,440**|14,440|
||Curia Costs (Governance)|Administration||||**24,548**|-|
||Depreciation|Unrestricted||Activities||**131,924**|140,603|
|||||||───────|───────|
|||||||**733,568**|761,354|
|||||||═══════|═══════|



**16** 



continued 

## **Order of Hermit Friars of St Augustine NOTES TO THE FINANCIAL STATEMENTS** 

for the financial year ended 28 February 2021 

|**9.**|**NET INCOMING RESOURCES**|**2021**|2020|
|---|---|---|---|
|||**£**|£|
||**Net Incoming Resources are stated after charging/(crediting):**|||
||Depreciation of tangible assets|**131,924**|140,603|
||Deficit/(surplus) on disposal of tangible fixed assets|**2,778**|-|
||Deficit/(surplus) on foreign currencies|**1,089**|-|
||Auditor's remuneration:|||
||- audit services|**6,560**|6,560|
|||═══════|═══════|
|**10.**|**INVESTMENT AND OTHER INCOME**|**2021**|2020|
|||**£**|£|
||Rent receivable - other income|**67,652**|129,852|
||Royalties received|**962**|630|
||Covid-19 grant received|**28,114**|-|
||Bank interest|**1,239**|3,091|
||Investment income|**24,256**|28,127|
|||───────|───────|
|||**122,223**|161,700|
|||═══════|═══════|



## **11. EMPLOYEES AND REMUNERATION** 

## **Number of employees** 

The average number of persons employed (including executive trustees) during the financial year was as follows: 

||**2021**|2020|
|---|---|---|
||**Number**|Number|
|Trustees|**4**|5|
|Administration & Retreat House|**6**|4|
|Youth Workers|**1**|3|
||───────|───────|
||**11**|12|
||═══════|═══════|
|The staff costs (inclusive of trustees' salaries) comprise:|**2021**|2020|
||**£**|£|
|Wages and salaries|**82,245**|91,146|
|Pension costs|**4,510**|3,990|
||───────|───────|
||**86,755**|95,136|
||═══════|═══════|



**17** 



continued 

## **Order of Hermit Friars of St Augustine NOTES TO THE FINANCIAL STATEMENTS** 

for the financial year ended 28 February 2021 

## **12. TANGIBLE FIXED ASSETS** 

|**TANGIBLE FIXED ASSETS**||||||
|---|---|---|---|---|---|
||**Land and**|**Investment**|**Fixtures,**|**Motor**|**Total**|
||**buildings**|**properties**|**fittings and**|**vehicles**||
||**freehold**||**equipment**|||
||**£**|**£**|**£**|**£**|**£**|
|**Cost or Valuation**||||||
|At 1 March 2020|6,094,789|-|83,725|107,088|6,285,602|
|Disposals|-|-|-|(23,038)|(23,038)|
|Transfers|(1,411,231)|1,157,207|-|-|(254,024)|
|Revaluation|-|542,793|-|-|542,793|
||───────|───────|───────|───────|───────|
|At 28 February 2021|4,683,558|1,700,000|83,725|84,050|6,551,333|
||───────|───────|───────|───────|───────|
|**Depreciation**||||||
|At 1 March 2020|814,585|-|58,312|70,028|942,925|
|Charge for the financial year|121,896|-|5,083|4,945|131,924|
|On disposals|-|-|-|(5,760)|(5,760)|
|Transfers|(254,024)|-|-|-|(254,024)|
||───────|───────|───────|───────|───────|
|At 28 February 2021|682,457|-|63,395|69,213|815,065|
||───────|───────|───────|───────|───────|
|**Net book value**||||||
|At 28 February 2021|**4,001,101**|**1,700,000**|**20,330**|**14,837**|**5,736,268**|
||═══════|═══════|═══════|═══════|═══════|
|At 29 February 2020|5,280,204|-|25,413|37,060|5,342,677|
||═══════|═══════|═══════|═══════|═══════|



**13. INVESTMENTS** 

|**INVESTMENTS**|||
|---|---|---|
||**Other**|**Total**|
||**investments**||
|**Investments**|**£**|**£**|
|**Valuation**|||
|At 1 March 2020|1,055,250|1,055,250|
|Additions|204,042|204,042|
|Disposals|(170,576)|(170,576)|
|Revaluations|273,786|273,786|
||───────|───────|
|At 28 February 2021|1,362,502|1,362,502|
||───────|───────|
|**Net book value**|||
|At 28 February 2021|**1,362,502**|**1,362,502**|
||═══════|═══════|
|At 29 February 2020|1,055,250|1,055,250|
||═══════|═══════|



Financial Fixed Assets amounting to a value of £1,362,502 are held by an investment management company in ethical investments. The investments yield interest and dividends. 

|**14.**|**DEBTORS**|**2021**|2020|
|---|---|---|---|
|||**£**|£|
||Taxation and social security costs (Note 16)|**1,936**|-|
||Prepayments and accrued income|**58,516**|7,000|
|||───────|───────|
|||**60,452**|7,000|
|||═══════|═══════|



Prepayments and Accrued Income consists of a prepayment of insurance. 

**18** 



continued 

## **Order of Hermit Friars of St Augustine NOTES TO THE FINANCIAL STATEMENTS** 

for the financial year ended 28 February 2021 

|**15.**|**CREDITORS**|**2021**|2020|
|---|---|---|---|
||**Amounts falling due within one year**|**£**|£|
||Taxation and social security costs (Note 16)|**-**|1,320|
||Accruals and deferred income|**17,460**|17,460|
|||───────|───────|
|||**17,460**|18,780|
|||═══════|═══════|



Payments received on account consists of a prepayment of rent. 

The charity has creditors which include payroll taxes and accruals for auditors and accountancy fees. There is no deferred income. 

|**16.**|**TAXATION AND SOCIAL SECURITY**||**2021**|2020|
|---|---|---|---|---|
||||**£**|£|
||**Debtors:**||||
||PAYE / NI||**1,936**|-|
||||═══════|═══════|
||**Creditors:**||||
||PAYE / NI||**-**|1,320|
||||═══════|═══════|
|**17.**|**RESERVES**||||
|||**Funds**|**Investment**|**Total**|
||||**property**||
||||**reserve**||
|||**£**|**£**|**£**|
||At 1 March 2020|9,680,415|-|9,680,415|
|||-|542,793|542,793|
||Deficit for the financial year|(164,028)|-|(164,028)|
|||───────|───────|───────|
||At 28 February 2021|**9,516,387**|**542,793**|**10,059,180**|
|||═══════|═══════|═══════|
|**18.**|**FUNDS**||||
|**18.1**|**RECONCILIATION OF MOVEMENT IN FUNDS**|**Unrestricted**|**Restricted**|**Total**|
|||**Funds**|**Funds**|**Funds**|
|||**£**|**£**|£|
||At 1 March 2019|9,726,422|429,885|10,156,307|
||Movement during the financial year|(453,326)|(22,566)|(475,892)|
|||───────|───────|───────|
||At 29 February 2020|9,273,096|407,319|9,680,415|
||Movement during the financial year|316,837|61,928|378,765|
|||───────|───────|───────|
||At 28 February 2021|**9,589,933**|**469,247**|**10,059,180**|
|||═══════|═══════|═══════|



**19** 



continued 

## **Order of Hermit Friars of St Augustine NOTES TO THE FINANCIAL STATEMENTS** 

for the financial year ended 28 February 2021 

## **18.2 ANALYSIS OF MOVEMENTS ON FUNDS** 

||**Balance**|<br>**Income**|**Expenditure**|**Transfers**|**Gains and**|**Balance**|
|---|---|---|---|---|---|---|
||**1 March**|||**between**|**losses**|**28 February**|
||**2020**|||**funds**||**2021**|
||**£**|<br>**£**|**£**|**£**|**£**|**£**|
|**Restricted funds**|||||||
|Retirement|305,459|<br>68,637|777|-|-|373,319|
|Welfare|||||||
|Restoration|14,617|<br>-|978|-|-|13,639|
|Missions|87,243|<br>6,278|11,232|-|-|82,289|
||───────|<br>───────|───────|───────|───────|───────|
||407,319|<br>74,915|12,987|-|-|469,247|
||───────|<br>───────|───────|───────|───────|───────|
|**Unrestricted funds**|||||||
|General|9,273,096|<br>612,573|838,529|-|542,793|9,589,933|
||───────|<br>───────|───────|───────|───────|───────|
|**Total funds**|**9,680,415**|<br>**687,488**|**851,516**|**-**|**542,793**|**10,059,180**|
||═══════|<br>═══════|═══════|═══════|═══════|═══════|
|**ANALYSIS OF NET ASSETS BY**||**FUND**|||||
|||**Fixed**|**Financial**|**Current**|**Current**|**Total**|
|||**assets**|**fixed**|**assets**|**liabilities**||
|||**- charity use**|**assets**||||
|||**£**|**£**|**£**|**£**|**£**|
|Restricted trust funds||-|-|469,247|**-**|469,247|
|||───────|───────|───────|───────|───────|
|Unrestricted general funds||5,736,268|1,362,502|2,506,687|**(15,524)**|9,589,933|
|||───────|───────|───────|───────|───────|
|||**5,736,268**|**1,362,502**|**2,975,934**|**(15,524)**|**10,059,180**|
|||═══════|═══════|═══════|═══════|═══════|



## **18.3 ANALYSIS OF NET ASSETS BY FUND** 

## **19. TRUSTEES' REMUNERATION** 

The Friars of the Order are the managers of the charity. Some of the Friars are also Trustees. The employees are administrative staff, youth workers and retreat house staff. None of the staff are management and all staff report to the Prior of the house in which they work. The remuneration of all staff is below the £60k per annum level. 

## **20. CASH AND CASH EQUIVALENTS** 

||||
|---|---|---|
|**CASH AND CASH EQUIVALENTS**|**2021**|2020|
||**£**|£|
|Cash and bank balances|**658,424**|626,624|
|Cash equivalents|**2,258,994**|2,667,644|
||───────|───────|
||**2,917,418**|3,294,268|
||═══════|═══════|



## **21. POST-BALANCE SHEET EVENTS** 

The Trustees have considered the impact of the Covid-19 pandemic a non-adjusting event and cannot fully estimate the financial effect on the charity due to the underlying uncertainties at this point in time. However, the financial results for the next reporting period 2021-22 are expected to be similar due to the impact of Covid-19 pandemic on the community. 

**20**