## **Douai Abbey Trust**
**Annual Report and Accounts**
31 August 2021
Charity Registration Number 236962
## **Contents**
## **Reports**
|Reference and administrative information|1|
|---|---|
|Trustees’ report|2|
|Independent auditor’s report|22|
|**Accounts**||
|Statement of financial activities|27|
|Balance sheet|28|
|Statement of cash flows|29|
|Principal accounting policies|30|
|Notes to the accounts|36|
Douai Abbey Trust
## **Reference and administrative information**
|**Trustees**|Rt Revd W G Scott OSB|
|---|---|
||Revd A Hood OSB (retired 6 October 2021)|
||Revd B Standish OSB (appointed 6 October 2021)|
||Revd T Bowe OSB|
||Revd A Somerville Knapman OSB|
||Revd P Gunter OSB|
||Revd T Holt OSB|
|**Principal address**|Douai Abbey|
||Upper Woolhampton|
||Reading|
||RG7 5TQ|
|Telephone|0118 971 5300|
|Website|www.douaiabbey.org.uk|
|**Charity registration number**|236962|
|**Auditor**|Buzzacott LLP|
||130 Wood Street|
||London|
||EC2V 6DL|
|**Bankers**|NatWest Bank plc|
||30 Market Place|
||Newbury|
||RG14 5AJ|
|**Investment managers**|Ruffer LLP|
||80 Victoria Street|
||London|
||SW1E 5JL|
|**Solicitors**|Coffin Mew LLP|
||Rivergate House|
||Newbury Business Park|
||London Road|
||Newbury|
||RG14 2PZ|
Douai Abbey Trust **1**
**Trustees’ report** Year to 31 August 2021
The trustees present their statutory report together with the accounts of Douai Abbey Trust (“the charity”) for the year ended 31 August 2021.
The accounts have been prepared in accordance with the accounting policies set out on pages 30 to 35 of the attached accounts and comply with the charity’s trust deed, applicable laws and 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 United Kingdom and Republic of Ireland (FRS 102).
## **Introduction**
Douai Abbey, the Community of St Edmund of the English Benedictine Congregation of the Order of St Benedict (the “Community”), is situated at Upper Woolhampton, Reading, Berkshire. It comprises a community of monks engaged in educational and pastoral and other work.
The accounts accompanying this report are the accounts of the charitable trust on which the assets of the Community in England are held. The charity is governed by a trust deed dated 22 September 1934, and is registered under the Charities Act 2011, Charity Registration Number 236962.
The trustees are incorporated under the Charities Act 2011 as a body known as “The Trustees of Douai Abbey” by a certificate granted by the Charity Commissioners on 7 May 1999.
## **Mission**
Douai Abbey Trust aims to support the religious and other charitable work carried on by the members of the Community. These ministries carried out by the monks, all of which benefit members of the general public, fall into the following main areas:
- The administration of the sacraments and maintenance of the Divine Service in the Abbey Church and in other parishes for which the Community has responsibility;
- Caring for members of the Community including those who are older and/or frail;
- The provision of education in the broadest sense and the education of new members of the Community training for the monastic life;
- The provision of social and pastoral work, particularly in the field of hospitality; and
- Supporting financially by the provision of donations, other organisations with objectives consistent with those of the charity.
## **Activities, specific objectives and relevant policies**
## _**Activities and specific objectives**_
As stated above under “Mission”, the charitable activities of the Douai Abbey Trust are undertaken by the monastic community at Douai Abbey and can be divided into a number of principal areas. Each of these areas is discussed in further detail in the paragraphs which follow.
Douai Abbey Trust **2**
**Trustees’ report** Year to 31 August 2021
## **Activities, specific objectives and relevant policies** (continued)
## _**Activities and specific objectives** (continued)_
In setting the charity’s objectives and planning its activities, the trustees have given careful consideration to the Charity Commission’s guidance on public benefit.
- **Formal Divine Service and other services in the Abbey Church**
The monks gather in the Abbey Church five times a day for formal services and visitors are always welcomed and invited to participate. The masses on Sunday and on feast days are well attended by parishioners and by others from further afield. At other times, the Church is open and visitors may come and pray by themselves. The church is also used by the diocese and by other churches in the area who do not have enough space for large celebrations.
Douai Abbey Trust **3**
## **Trustees’ report** Year to 31 August 2021
## **Activities, specific objectives and relevant policies** (continued)
_**Activities and specific objectives** (continued)_
- **Formal Divine Service and other services in the Abbey Church** (continued)
The Abbey Church is a listed building (Grade 2*) and some people come to appreciate the architecture; guide books and postcards are available. The trustees appreciate their responsibility to maintain the building to the highest standards.
In addition, regular concerts in the Abbey Church are organised by the monastic community and by outside organisations and enhance the cultural opportunities of the locality.
It is made clear to those who attend such concerts that the Abbey Church is a sacred space. This highlights the aims of the charity, even if visitors’ primary reason for attending is to listen to the music. The Abbey Church is also used by local primary schools, both Catholic and non-Catholic, for various functions, including Christmas carol services and formal gatherings to mark the end of the school year. Most of these events are made possible without a prescribed charge to the outside organisations.
## **Caring for members of the Community including those who are older and/or frail**
The trustees are very conscious of their moral and legal obligation to care for the older and frailer members of the Community. None of the monks has resources or private income of his own since their earnings, gifts or donations, as well as their pensions, have been covenanted to the charity. As the Community’s age profile increases, so too does the need to provide increasingly expensive care for the members. The trustees will continue to make this one of their priorities for the future and, as a consequence, they will assess how it affects the ministries of the individual members of the Community. They are aware of the financial implications for the charity’s resources.
## **The provision of education**
The Community’s work in the field of education is broad and includes the education of new members of the Community training for monastic life and Church Ministry, the education of young people in various ways through pastoral and chaplaincy work, and the education of adults by courses, lectures and university teaching.
In line with their vision for the future, members of the Monastic Community have in recent years moved from secondary into tertiary education by taking up teaching in university adult education programmes, by expanding adult education on site in the pastoral programme of talks, and by offering retreats and courses for spiritual and theological renewal. Furthermore, some monks publish books and articles in such disciplines as history and theology, which is another strand in the Community’s educational outreach.
## **The provision of hospitality and pastoral work**
The Community is involved in the provision of hospitality and pastoral care by welcoming guests and visitors to the monastery; by serving parishes locally and further afield in Britain; by offering retreats and talks both within the Community’s pastoral programme and elsewhere; by chaplaincy work especially in schools; by being available for spiritual direction and confession; by supplying priests to help in local parishes; or by other similar work on request.
Douai Abbey Trust **4**
**Trustees’ report** Year to 31 August 2021
## **Activities, specific objectives and relevant policies** (continued)
_**Activities and specific objectives** (continued)_
- **The provision of hospitality and pastoral work** (continued)
- Although there is a list of suggested charges for the use of the guest facilities, it is made clear to guests that the monastery welcomes all who seek to share in our hospitality and that inability to pay is no obstacle to using the Community’s facilities. In practice, most people pay the suggested rate and thus contribute to the income of the charity, but others give only what they can afford. The trustees consider that this is a clear and significant means by which the charity is able to discharge its duty of public benefit. While a majority of our guests are Roman Catholic, increasing numbers from other Christian denominations and other religions are also welcomed.
Members of the Community continue to maintain and develop pastoral work in the parishes that are the responsibility of the Community. There are two clusters of parishes, in Lancashire and in the South Midlands, the specific affairs of which are overseen by the separate Douai Abbey Parishes Trust. One member of the Community cares for the parish in the immediate area of the monastery. Two members of the Community are currently working in diocesan parishes which do not belong to the Community.
Douai Abbey Trust **5**
## **Trustees’ report** Year to 31 August 2021
## **Activities, specific objectives and relevant policies** (continued)
_**Activities and specific objectives** (continued)_
- **Members of the Community working elsewhere**
One member of the Community is currently working in Rome at the international Benedictine college of St Anselm, where he teaches as well as supervising the formation of those students in training for the priesthood. He also serves the English Benedictine Congregation as its representative in Rome. Another member is both parish priest of one of our parishes and Secretary of the Department of Christian Life and Worship of the Conference of Bishops of England and Wales.
- **Donations to other organisations**
When planning their budget at the beginning of the year, the trustees agree to set aside a certain amount for organisations whose work is consistent with the objects of the charity.
## **Protection of Children and Vulnerable Adults**
Like all other organisations who serve in the community, the trustees recognise the absolute necessity of ensuring the protection and safety of all those the charity serves in any way. This means that members engaged in any ministry in Great Britain must obtain clearance from the Disclosure and Barring Service (DBS). The trustees are fully committed to implementing all policies and procedures of the Catholic Safeguarding Advisory Service (CSAS). During the year a new Safeguarding Representative for the Trust was appointed on the retirement of a member of the community who had previously filled this role. She is a retired child-care professional who has had extensive experience of safeguarding at a local and national level; she and the Abbot form the community’s Child Protection Committee under the Safeguarding Commission of the Roman Catholic Diocese of Portsmouth. This arrangement is due to change in the near future when a new body, the Religious Life Safeguarding Service, will be responsible for safeguarding for virtually all the religious communities in England and Wales. Safeguarding appears as an agenda item on every trustee meeting and the Safeguarding Representative attends at least one meeting of the trust during the year.
As reported last year, the community, together with the other monasteries in the English Benedictine Congregation, has engaged the services of an American, non-religious organisation called Praesidium who have compiled a preliminary report on the community’s safeguarding policies and practice. The community spent a great deal of time during the year reviewing our policies so that we could achieve accreditation from this organisation. In January 2021 we received confirmation that we have been accredited.
The Independent Inquiry into Child Sexual Abuse published its final report into the Catholic Church in November 2020. The Bishops of England and Wales responded by commissioning an independent review, called the Elliott Report, which was published in November 2020 and concrete proposals have now emerged and are being rapidly implemented. Father Abbot, as chair of the trustees and as a member of the Abbey’s Safeguarding Committee, has attended a series of virtual meetings which accompanied the creation of a new overseeing body for all institutes of consecrated life in England and Wales (the Religious Life Safeguarding Service) which was formally launched during the year. The trustees are committed to implementing these proposals and to reviewing our policies as necessary.
Douai Abbey Trust **6**
## **Trustees’ report** Year to 31 August 2021
## **Investment policy**
The charity has a portfolio of listed investments which together with cash awaiting investment had a market value as at 31 August 2021 of £5,525,459 (2020 – £4,915,503).
There are no restrictions on the charity’s power to invest. The investment strategy is set by the trustees and takes into account income requirements, the risk profile and the investment manager’s view of the market prospects in the medium term; the trustees have agreed a detailed investment policy that includes ethical guidelines with the investment managers which they take into account in their choice of securities. According to the ethical policy, the trustees will not invest in companies which engage in activities which are contrary to the moral and social teaching of the Roman Catholic Church, in so far as this can be practically established. With the help of our investment managers Ruffer LLP, the overall investment policy is to maximise total return through a diversified portfolio, prioritising total return and portfolio growth over the provision of a pre-determined level of income.
The performance of the portfolio and the charity’s investment strategy are reviewed by the trustees whose representatives meet with the investment managers regularly. For many years the trustees have welcomed the attendance of financial advisers to half of their regular meetings, that is three times a year. The trust’s investment managers attend one of these meetings every year. Details of the advisers can be found on page 1.
The charity also has several properties which are used to generate rental income and which are classified in the accounts as investment properties.
## **Achievements and performance**
## _**Review of activities**_
- **Formal Divine Service and other services in the Abbey Church**
By its very nature the regular round of Divine Services in a monastery do not vary much from year to year. However, the pandemic has given rise to many restrictions on the ability of lay people and guests to participate. Occasionally the Abbey Church has had to be closed altogether, but the monks have continued to pray the offices without interruption, but with social distancing and sometimes without singing.
Cameras and an enhanced sound system have been installed during the year to enable live-streaming, but this has only been used for special occasions for the public and for relaying the services to members of the community who were isolating in their rooms.
## **Caring for older and frail members of the community**
In the previous year we reported that three members of the community had died, but there have been no deaths in the past year. One member of the community has now retired from our parish in Lancashire and is resident in the monastery infirmary. The monk who acts as the infirmarian continues to take part in regular virtual meetings with other infirmarians and health professionals. He has taken the lead in dealing with our Covid procedures.
Douai Abbey Trust **7**
## **Trustees’ report** Year to 31 August 2021
## **Achievements and performance** (continued)
## _**Review of activities** (continued)_
- **Our buildings and our environment**
There have been no significant building works during the year, apart from essential maintenance. The lockdown meant that our maintenance engineer was furloughed, or partly furloughed, for some months of the year. We have continued to investigate the possibility of introducing a new heating system in the accommodation blocks which date from the 1960s. We are also looking to renew our telephone system which we have been told is near the end of its life.
We were delighted to discover that the lettering on the foundation stone of the monastery laid in 1964 was the work of a stone carver who had an important national reputation. His name was Ralph Beyer and had worked on other projects with our architect, Sir Frederick Gibberd. He also produced the enormous Tablets of the Word in Coventry Cathedral.
During the year we replaced one of the petrol cars with an electric vehicle and we installed two electric vehicle chargers, one for this community car and one for the use of guests some of whom have already made use of it.
## **The provision of education**
No new members have joined the community during the year, but one junior monk has taken his first vows and has started his philosophical and theological studies at Blackfriars Hall, Oxford.
Douai Abbey Trust **8**
## **Trustees’ report** Year to 31 August 2021
## **Achievements and performance** (continued)
## _**Review of activities** (continued)_
## **The provision of education** (continued)
The community produce a magazine every year which is distributed free of charge to visitors, parishioners, former pupils of Douai School and other supporters. The most recent edition included articles by monks, friends, and independent scholars on such varied subjects as Nuns’ portraits, a centre of African crafts in Malawi, a pilgrimage to South India, the renovation of St Gregory’s Church, Stratford-on-Avon, monastic beekeeping, Cardinal Pell’s treatment by the Australian legal system and a 16[th] century Carthusian’s “List of Things”
Also published during the year have been two books by one of the monks.
The English Benedictine Congregation has set up a Continuing Formation Commission which has organised various events for the monks and nuns of the Congregation. During the lockdown this commission continued a virtual series of talks given by monks and others which had begun in the previous year; this has meant that members of the community had an opportunity to join in discussion with other monks and nuns of the congregation in a way which has not happened before: one of the very few benefits arising from the new world of the pandemic. The community is fully committed to the idea that formation should continue through the life of a monk.
Douai Abbey Trust **9**
## **Trustees’ report** Year to 31 August 2021
## **Achievements and performance** (continued)
_**Review of activities** (continued)_
- **The provision of education** (continued)
The trustees consider the monastery’s archive and library to be part of its service to education. However, the lockdown has made it very difficult for researchers to visit in person. The Archivist has continued to prepare exhibitions on different subjects, often focussing on centenaries e.g. the martyrdom of Thomas Becket and the 150[th] anniversary of the Douai Society (the association of former pupils of Douai School). Work has been completed on the listing and description of the picture collection.
During the year we have received a large collection of books about Malta from a former pupil of our school.
- **The provision of hospitality and pastoral work**
The Guest House was closed at various times during the year, due to the pandemic. The trustees normally provide statistics giving numbers of guest/nights with a comparative figure for the previous year, but the effect of the pandemic on both years would make such a comparison meaningless. The income from the Guest House totalled £58,490 (2020 – £127,679).
Douai Abbey Trust **10**
**Trustees’ report** Year to 31 August 2021
## **Achievements and performance** (continued)
_**Review of activities** (continued)_
- **The provision of hospitality and pastoral work** (continued) Despite the closures during the year, the community was able to invite people to participate in various on-line activities, including a Book Club, spiritual conferences and a series of talks during Holy Week.
Amidst the restrictions arising from the pandemic, our monks have continued to serve in parishes in the Midlands and in Lancashire.
Father Alexander, parish priest of St Gregory’s, Stratford-upon-Avon with other members of Churches Together in Stratford at the celebrations for Shakespeare’s Birthday in April 2021
Douai Abbey Trust **11**
## **Trustees’ report** Year to 31 August 2021
## **Achievements and performance** (continued)
## _**Review of activities** (continued)_
- **The provision of hospitality and pastoral work** (continued)
During the year the Abbot and three other members of the community have been involved in the formal Visitations of four other monasteries of the English Benedictine Congregation. Our own community has also been the subject of Visitation. The reports from these Visitations are shared with the community and are also presented to the general Chapter of the Congregation, a four-yearly meeting which will be taking place at Buckfast Abbey in July 2022.
## **Investment performance**
During the year to 31 August 2021, the charity’s listed investments produced an income yield of 0.85% (2020 – 0.9%). The charity’s listed investments rose in value during the year, giving rise to net investment gains of £620,067 (2020 – gains of £310,698) on the portfolio. The capital yield on the portfolio during the year showed a rise in value of 13.8% (2020 – 7.28%).
Investment properties produced rental income of £110,346 (2020 – £108,476) during the year.
## **Financial report for the year**
## _**Results for the year**_
A summary of the results for the year can be found on page 27 of the attached accounts.
Total income for the year amounted to £483,205 compared to £610,601 in the prior year. Donations and legacies amount to £206,395 compared to £257,965. The total figures include donations of £22,943 (2020 - £29,493) being monies restricted in their use and mainly raised towards the future costs of maintaining the library archives. Income from charitable activities i.e. retreat house income and related receipts decreased to £58,490 (2020 – £127,679) as did income from visitors and other trading activities to £nil (2020 – £10,888) following the temporary cessation of certain activities as a consequence of the Covid-19 pandemic. Income from listed and property investments, together with interest receivable, amounted to £150,910 (2020 – £148,448).
Expenditure amounted to £795,808 compared to £901,194 in 2020. The cost of raising funds increased by £14,371 to £74,152 (2020 – £59,781), the costs in relation to supporting members of the Community and their ministry decreased to £721,656 (2020 – £841,413). The decrease is due to a fall in the cost of premises and pastoral activities.
The net expenditure for the year before investment gains and foreign exchange gains was £312,603 (2020 – net expenditure of £290,593). The net investment gains totalled £620,067 (2020 – £310,698) in respect to listed investments. The properties held for investment were revalued in 2020 giving rise to an unrealised gain of £97,500 in that year. Foreign exchange gains totalled £44,462 (2020 - £47,966). When these net gains are accounted for, the overall impact on the charity’s funds is an increase of £351,926 for the year (2020 – increase of £165,571).
Douai Abbey Trust **12**
## **Trustees’ report** Year to 31 August 2021
## **Financial report for the year** (continued)
## _**Financial impact of Covid-19**_
Apart from the restrictions of lock-down and general concern about the pandemic which we share with everyone, there have been various financial implications for the Trust. The most significant effect was the loss of income from the Guest House, but the absence of visitors and the closure of the Abbey Church from March until August meant that there were no cash and gift-aid envelopes collections on Sundays and virtually no income from the Bookshop (which is located in the church). The loss of the collections was mitigated to some extent because many of our supporters, including those who attend services, give through standing orders. These have not been affected.
Many of the staff were furloughed during the previous year (from March 2020); but by the beginning of this year all staff had returned to work. The government’s Coronavirus Job Retention Scheme was a great help to us financially. One member of the cleaning staff resigned during the furlough period and one other transferred to the catering staff. This has led to a reduction of the total wages bill. We now only employ one full-time housekeeper who is able to cope with the work, partly because we have reduced the numbers of guests staying at any one time.
## _**Reserves policy and financial position**_
## _Reserves policy_
As explained above, the charity carries out a diverse range of activities, some of which comprise short term and externally funded projects whilst others comprise long term projects requiring significant ongoing financial commitment and investment. The trustees have examined the requirement 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, the level of free reserves should be equivalent to a minimum of 36 months expenditure. The trustees are of the opinion that this reflects the charity’s reliance on investments to generate investment income to fund recurring expenditure. The policy also provides sufficient flexibility to cover temporary shortfalls in income due to timing differences in income flows, adequate working capital to cover core costs, and will allow the charity to cope and respond to unforeseen emergencies whilst specific action plans are implemented.
## _Financial position_
The balance sheet shows total funds £15,508,822 (2020 – £15,156,896).
These funds include an amount of £138,796 (2020 – £116,499) which is restricted. These monies have either been raised for, and their use restricted to specific purposes, or they comprise donations subject to donor imposed conditions. Full details of these restricted funds can be found in note 17 to the accounts together with an analysis of movements in the year.
The tangible fixed assets fund equal to the net book value of the tangible fixed assets and amounting to £6,540,218 (2020 – £6,720,366) has been identified as a separate fund in recognition of the fact that such assets are required to enable the Community to carry out its charitable work and are not available to fund activities or meet future commitments.
Douai Abbey Trust **13**
## **Trustees’ report** Year to 31 August 2021
## **Financial report for the year** (continued)
## _**Reserves and policy and financial position** (continued)_
## _Financial position (continued)_
Funds totalling £5,150,000 (2020 – £4,600,000) have been designated, or set aside, by the trustees for specific purposes as follows:
- An amount of £4,150,000 (2020 – £4,150,000) has been designated to meet the costs of the care and welfare of members of the Community as they grow old or frail. The members are wholly dependent on the charity for their maintenance and care. The amount of funds set aside has been calculated using actuarial principles and will provide only modest amounts in the future.
- £1,000,000 (2020 – £450,000) has been set aside towards the cost of future improvements to, and maintenance of, the charity’s freehold properties.
Further details of the purposes of the designated funds and an analysis of the movements on the funds are set out in note 18 to the accounts.
General funds or ‘free reserves’ of the charity at 31 August 2021 total £3,679,808 (2020 – £3,720,031).
The trustees consider that this level of free reserves is appropriate despite it being slightly higher than the amount set out in the charity’s reserves policy above. The trustees are of this opinion that this is both acceptable and prudent given the volatility in world stock markets at the present time and the other political and economic uncertainties resulting from the global Covid-19 pandemic. They also accept that in the years ahead, members of the Community may require increasing and increasingly expensive health care, and that the designated retirement fund of £4,150,000 (2020 – £4,150,000) described above may prove to be inadequate. It is the intention of the trustees to increase the fund over time. The trustees, therefore, consider free reserves to be adequate but not excessive, but they will keep this matter under review.
## _**Raising funds**_
The charity aims to achieve best practice in the way in which it communicates with donors and other supporters. It takes care with both the tone of its communications and the accuracy of its data to minimise the pressures on supporters. It applies best practice to protect supporters’ data and never sells data, it never swaps data and ensures that communication preferences can be changed at any time. The charity manages its own fundraising activities and does not employ the services of professional fundraisers. The charity undertakes to react to and investigate any complaints regarding its fundraising activities and to learn from them and improve its service. During the year, the charity received no complaints about its fundraising activities.
Douai Abbey Trust **14**
## **Trustees’ report** Year to 31 August 2021
## **Future plans**
The most important event of the coming year will be the abbatial election to be held in May 2022; the election is for an eight-year period. As recommended in our Visitation in May 2021, the community is preparing for this by a process of discernment, a series of monthly meetings in groups and three meetings of the whole community which was started in August 2021. This discernment process is being led by Father David Smolira SJ, who is a former Provincial Superior of the English Jesuits and an experienced counsellor and therapist. He was also leading at a national level the process which led to the formation of the Religious Life Safeguarding Service, bringing together hundreds of religious superiors in England and Wales.
Together with the other monasteries of monks and nuns in the English Benedictine Congregation, the community will also be preparing for the General Chapter to be held in July 2022. This has involved real and virtual meetings with members of the General Chapter preparatory commission and with members of other monasteries.
The trustees continue to look at different areas of the buildings which need repair or improvement. During the coming years the trustees will be considering various projects, including work on the interior of the abbey church, the improvement of the sacristy, the better to serve the abbey church and to care more adequately for our vestments and church plate, the possible expansion of the library-archive to meet growing demand on it from outside the monastery, and the refurbishment of the maintenance area to allow for workshops in a space which could be shared with those outside the monastery and so extend our social outreach.
The investigation of the possibility of moving from dependence on oil for heating the buildings to the use of air source heat pumps has already begun and will continue. The current telephone system is reaching the end of its life and is no longer supported by its manufacturer and its modernisation is being actively investigated.
All these capital projects would be at least partly funded from the new Development Fund, rather than from annual income. These projects would enable the trustees to go some way to fulfil the core mission of the Trust and its environmental goals. They will be funded wholly or mainly from reserves rather than annual income.
Consequently, the trustees have decided to increase the funds set aside in the “Property Improvement and Maintenance Fund” from £450,000 to £1 million and to rename is as the “Development Fund” to better reflect its intended use. This is shown on the Balance Sheet (page 28) and in Note 18 (page 43).
Douai Abbey Trust **15**
## **Trustees’ report** Year to 31 August 2021
## **Governance, structure and management**
## _**Governance**_
Douai Abbey is an autonomous monastery of the Roman Catholic English Benedictine Congregation. The conduct and administration of the monastery is subject to the Constitutions of the English Benedictine Congregation and to the precepts of the Code of Canon Law of the Roman Catholic Church.
In terms of civil law the charity is governed by a trust deed dated 22 September 1934 and is a registered charity – Charity Registration No 236962. The trustees of the Abbey are the Abbot and the members of his Council. The members of the Abbot’s Council are each year partly appointed by the Abbot himself from members of the Community and partly elected by the monks of the Abbey.
As all the trustees are members of the Community, they have a detailed knowledge of the work of the charity and its structure. Unlike many charity trustees who might live at a distance and meet briefly quarterly or so, the trustees are involved on a daily basis with the work of the charity, live within the Abbey itself or in its parishes, and meet and interact on a frequent basis. As members of the monastic community, the trustees are also beneficiaries of the charity, but they do not receive any benefits which are not also received by the other members. The trustees seek advice from professional advisers where necessary on legal, accounting, property and other issues. In addition, a voluntary advisory group of professionals of varied financial experience advises the trustees on investment policy and strategic development. The bursar attends external meetings and conferences during the year which enable him to keep up to date with developments of interest to the charity and to the sector as a whole. He has attended more virtual webinars and conferences since the lockdown began. The Abbot is also involved in other trusts and attends meetings with other religious superiors during the year. Other trustees are encouraged to attend relevant and appropriate courses and conferences so as to enable them to continue to be aware of their responsibilities and developments in the charity sector.
The names of the trustees who served during the year are set out as part of the reference and administrative information details on page 1 of this annual report and accounts. Brief biographical details of the trustees in office at 31 August 2021 are given below:
## _Rt Revd W G Scott OSB_
Abbot of Douai since 1998, chairman of trustees, member of the community since 1966. MA (Oxford) PhD, FSA, FRHistS, Teacher of History in Douai School 1975 - 1993, Headmaster 1987 - 1993, librarian and archivist of the Abbey 1989 - present. Chair of Douai Abbey Parishes Trust, trustee of Oulton Abbey, member of Bishops’ Patrimony Committee with responsibility for libraries and archives, President of the Catholic Archives Society and VicePresident of the Catholic Records Society and since 2017 has been analyst for the English Benedict Congregation. He is on the editorial board of the Douai Magazine. He teaches Church History at Blackfriars, the Dominican house of studies in Oxford. He is the First Assistant Abbot to the Abbot President of the English Benedictine Congregation and has been responsible for various Visitations and Abbatial Elections during the year.
Douai Abbey Trust **16**
## **Trustees’ report** Year to 31 August 2021
## **Governance, structure and management** (continued)
## _**Governance** (continued)_
## _Revd A Hood MA, PhD, PGCE, AdvDip Couns_
Prior of Douai Abbey from September 2014 until June 2021. Teacher at Douai School, 1992 - 1995, served on the Douai parish of Ormskirk, 1995 - 2002, (during which time he was a trustee of the Douai Abbey Parishes Trust), Novice Master and Choirmaster at Douai since 2002. He was formerly a trustee of the charity from 1998 until 2006. He is on the editorial board of the Douai Magazine. He is also a trustee of another Benedictine monastery at St Michael's Abbey, Farnborough, Hants. He gives retreats at Douai and elsewhere and sees people for spiritual direction on a regular basis. He retired as a trustee on 6 October 2021.
## _Revd B Standish OSB_
Prior of Douai Abbey since June 2021. He has been involved in parish work in the Douai Abbey Parish and has also served on other parishes under the care of the Abbey. He has also assisted in the Guest and Bursar’s departments.
## _Revd T Bowe OSB, MA, STL_
Teacher of Economics and RE 1972-1982, housemaster 1972 – 1982, bursar 1996 – 2005, vice-chairman of Association of Provincial Bursars 2000 - 2005, Novice Master 1983 - 1990, founder member and bursar of Maison St Benoit, the dependent house in France 2005 – 2012; Prior of Douai September 2012 – September 2014, parish priest of Woolhampton 2012-2021.
## _Revd T J Holt OSB MA_
Teacher of English in Douai School 1977 - 1999, housemaster 1982 - 1999, Bursar of Douai Abbey since 2005, trustee since 1997, trustee of Priors Court School 2005 – 2014, trustee of Lejeune Clinic for children with Down’s Syndrome 2006 - 2016, trustee of Friends of Newbury Spring Festival 2008 - 2018, member of Association of Provincial Bursars. Trustee of Downside Abbey 2016 – 2019.
## _Revd P Gunter OSB, BD, SL.L, SL.D_
Currently Parish Priest of Alcester since 2016 and Secretary of the Department of Christian Life and Worship to the Catholic Bishop’s Conference of England and Wales since 2012. Consulter to the Office of the Liturgical Celebrations of the Supreme Pontiff, Vatican City 2018-2013. Visiting Professor, Pontifical Athenaeum Regina Apostolorum, Rome 20082015, Professor at the Pontifical Institute of Liturgy, Rome 2006-2016. Further Studies, Rome 2002-2006. Parish Priest, Studley 1999-2002 and the Trustee of Douai Abbey Parishes Trust. Member, Council of Priests, Diocese of Clifton 1995-1999; assistant priest, school chaplain, hospital chaplain, Cheltenham 1992-1999.
Douai Abbey Trust **17**
## **Trustees’ report** Year to 31 August 2021
## **Governance, structure and management** (continued)
## _**Governance** (continued)_
## _Revd A Somerville Knapman OSB, MPhil, MA (Theol), STB, BA_
Joining the monastery in early 2001, he was ordained a priest in April 2007 after studying in Oxford and Rome. His recently completed theological research at Bristol University was published by Paulist Press of New York in the autumn of 2018. Before entering the monastery, he studied at the University of Sydney and worked in education and then in a civilian role in communications for the New South Wales Police in Sydney, Australia. Currently he serves as the priest in residence at the parish of Scarisbrick in Lancashire and is the Community webmaster. He is engaged in doctoral studies and undertakes various publishing projects for the Community under the imprint of The Weldon Press. He is on the editorial board of the Douai Magazine.
The Douai Abbey trustees have a number of financial advisers who attend three meetings a year on a purely voluntary basis and are also available for consultation between meetings.
**Margaret Chin-Wolf** is an ICF Certified Coach and graduate of both the Meyler Campbell Mastered Programme and the FT Non-Executive Director Diploma. An economist and barrister by training, she was a portfolio manager for 32 years. She is a Governor of The Pilgrims’ School, Winchester and was a Governor of the University of Winchester until 2021.
**Denis Murtagh** is a chartered accountant. Now retired, he spent most of his career with KPMG, one of the largest global accounting and advisory firms, where he was a tax adviser.
**Dr Ralph Townsend** was Headmaster of Winchester College from 2005 to 2016, after which he was Special Adviser to the President of Keio University in Japan (2017-2021) and Chairman of The Prep Schools Trust (2017-2022). He is currently Director of Winton Consulting Limited, an educational advisory service.
**Kate Burke** (Safeguarding Representative) was a social worker for 42 years. She undertook advanced training in Child Protection (Safeguarding). She delivered training over many years at Thames Valley Police College Sulhampstead to Police and Social Services (until 2014). She served for 15 years on Portsmouth Diocese Safeguarding Commission (until 2019)
Kate is currently the Lead Person for the Congregation of Our Lady of the Missions and works closely with the diocese of Portsmouth, the Religious Life Safeguarding Service (RLSS) and the Catholic Safeguarding Standards Agency (CSSA). She also undertakes critical assessments for the CSSA. An on-line course on the Theology of Safeguarding was undertaken last year and Kate continues to attend zoom safeguarding sessions with the London Jesuit Centre.
## _**Trustees’ responsibilities statement**_
The trustees are responsible for preparing the trustees’ report and accounts in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Douai Abbey Trust **18**
## **Trustees’ report** Year to 31 August 2021
## **Governance, structure and management** (continued)
## _**Trustees’ responsibilities statement** (continued)_
The law applicable to charities in England and Wales requires the trustees to prepare accounts 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 accounts, the trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable to the United Kingdom and Republic of Ireland (FRS 102);
- make judgements and estimates that are reasonable and prudent;
- state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the accounts; and
- prepare the accounts on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.
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 accounts comply with the Charities Act 2011, the relevant Charity (Accounts and Reports) Regulations and the provisions of the charity’s trust deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The trustees are responsible for the maintenance and integrity of financial information included on the charity’s website. Legislation in the United Kingdom governing the preparation and dissemination of accounts may differ from legislation in other jurisdictions.
## _**Key management**_
The trustees consider that they together with the Bursar comprise the key management of the charity in charge of directing and controlling, running and operating the charity on a day to day basis.
The trustees and the Bursar are all members of the Community and whilst their living and personal expenses are borne by the charity they receive no remuneration or reimbursement of expenses in connection with their duties as trustees or as senior management.
## _**Structure and management reporting**_
The trustees are ultimately responsible for the policies, activities and assets of the charity. They meet every two months to review developments with regard to the charity or its activities and make any important decisions.
Douai Abbey Trust **19**
## **Trustees’ report** Year to 31 August 2021
## **Governance, structure and management** (continued)
## _**Structure and management reporting** (continued)_
As stated above, when necessary, the trustees seek advice and support from the charity’s professional advisers, e.g. property consultants, investment managers, solicitors and accountants. For some matters the constitutions of the English Benedictine Congregation require the Abbot to seek the whole Community’s consent, for other matters it is only necessary to consult the Community.
## _**Working with other organisations**_
The Community is responsible for the administration of several Roman Catholic parishes in England. The property and finances of these parishes are administered through a separate registered charity – the Douai Abbey Parishes Trust (Registered Charity No: 1063237). Two of the trustees of the Douai Abbey Trust are also trustees of the Douai Abbey Parishes Trust. Details of transactions between the two charities are given in the notes to the accounts.
## _**Risk management**_
The trustees have assessed the major risks to which the charity is exposed, in particular those relating to the specific operational areas of the charity, its investments and its finances and have done so after having regard to the effects of the unprecedented Covid-19 pandemic. The trustees believe that by monitoring reserve levels, by ensuring controls exist over key financial systems, and by examining the operational and business risks faced by the charity, they have established effective systems to mitigate those risks. The trustees review a risk management matrix annually, which includes such potential risks as the loss of key staff, disaster recovery and reputational risk.
The key risks for the charity, as identified by the trustees, are described below together with the principal ways in which they are mitigated:
- Loss of key management (Abbot, Bursar etc) The trustees are aware that they are very dependent on certain key people and the implications of losing these people would be serious. The trustees consider that strong support from financial advisers, training of trustees, and ongoing discussion of ways of lightening the load of the Abbot will all mitigate this risk. In addition, the English Benedictine Congregation, of which the Abbey is a member, has developed structures of congregational support, including the lending of personnel, to assist any communities who find themselves in difficulties.
- Failure to recruit and retain new members The trustees are very much aware of the age profile of the members of the community and of the need to recruit new novices. One member of the community is responsible for directing vocations and for attracting younger people to visit the monastery.
Douai Abbey Trust **20**
## **Trustees’ report** Year to 31 August 2021
## **Governance, structure and management** (continued)
## _**Risk management** (continued)_
- Dependence of income from investments rather than operations The charity relies to a large extent on the returns from its investment portfolio to cover its outgoings. The performance of the investment portfolio and the investment strategy are reviewed in meetings of the trustees and in regular meetings with the investment managers, taking into account current and future political and economic uncertainties. As explained in “Reserves Policy” on page 13, the charity’s reserves policy reflects the need to hold investments in order to generate investment income to fund recurring expenditure. In addition, the charity maintains sufficient reserves to cover temporary shortfalls in income. The trustees have monitored the charity’s investment carefully during the current Covid-19 pandemic and have maintained a regular dialogue with the charity’s investment managers, Ruffer LLP.
- Safeguarding and other reputational issues These are addressed under relevant policies on page 6.
- The impact of Covid-19 on the trust
- This has been added as a new item to the Risk Register. The community has been very careful in protecting its members from outside infection and has received medical advice. It is very difficult to calculate what particular risks we will be subject to which are not also shared with the rest of humanity, but the trustees will continue to monitor the situation and try to assess the impact of the pandemic on our lives and activities.
## **Employees, volunteers and members of the Community**
The trustees wish to record their recognition of the professionalism and commitment of all their staff, volunteers and individual members of the Community. Their dedication is very much appreciated.
Approved by the trustees and signed on their behalf by:
Rt Revd W G Scott OSB
Trustee
Approved by the trustees on: 15 February 2022
Douai Abbey Trust **21**
**Independent auditor’s report** Year to 31 August 2021
## **Independent auditor’s report to the trustees of Douai Abbey Trust**
## **Opinion**
We have audited the accounts of Douai Abbey Trust (the ‘charity’) for the year ended 31 August 2021 which comprise the statement of financial activities, the balance sheet, the statement of cash flows, the principal accounting policies and the notes to the accounts. 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 accounts:
- give a true and fair view of the state of the charity’s affairs as at 31 August 2021 and of its income and expenditure for the 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 accounts section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the accounts 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 accounts, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the accounts is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity’s ability to continue as a going concern for a period of at least twelve months from when the accounts 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.
Douai Abbey Trust **22**
**Independent auditor’s report** Year to 31 August 2021
## **Other information**
The trustees are responsible for the other information. The other information comprises the information included in the Annual Report and Accounts, other than the accounts and our auditor’s report thereon. Our opinion on the accounts does not cover the other information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the accounts, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the accounts 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 accounts 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 Act 2011 requires us to report to you if, in our opinion:
- the information given in the trustees’ report is inconsistent in any material respect with the accounts; or
- sufficient accounting records have not been kept; or
- the accounts are not in agreement with the accounting records and returns; or
- we have not received all the information and explanations we require for our audit.
## **Responsibilities of trustees**
As explained more fully in the trustees’ responsibilities statement, the trustees are responsible for the preparation of the accounts and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of accounts that are free from material misstatement, whether due to fraud or error.
In preparing the accounts, 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.
Douai Abbey Trust **23**
**Independent auditor’s report** Year to 31 August 2021
## **Auditor’s responsibilities for the audit of the accounts**
Our objectives are to obtain reasonable assurance about whether the accounts 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 accounts.
A further description of our responsibilities for the audit of the accounts is located on the Financial Reporting Council’s website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
## _**How 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:
- The engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
- We identified the laws and regulations applicable to the charity through discussions with management and trustees and from our knowledge and experience of the charity sector;
- We focused on specific laws and regulations which we considered may have a direct material effect on the accounts or the activities of the charity. These included but were not limited to the Charities Act 2011; Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable to the United Kingdom and Republic of Ireland (FRS 102) (effective 1 January 2019); and Safeguarding Regulations; and
- We assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and those charged with governance and review of minutes of trustees’ meetings.
We assessed the susceptibility of the charity’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
- Making enquiries of trustees as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
- Considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.
Douai Abbey Trust **24**
## **Independent auditor’s report** Year to 31 August 2021
## **Auditor’s responsibilities for the audit of the accounts** (continued)
## _**How the audit was considered capable of detecting irregularities including fraud** (continued)_
To address the risk of fraud through management bias and override of controls, we:
- Performed analytical procedures to identify any unusual or unexpected relationships;
- Tested and reviewed journal entries to identify unusual transactions;
- Carried out substantive testing of expenditure including the authorisation thereof;
- Assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and
- Investigated the rationale behind significant or unusual transactions.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
- Agreeing financial statement disclosures to underlying supporting documentation;
- Reading the minutes of meetings of trustees; and
- Enquiring of as to actual and potential litigation and claims.
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the trustees and other management and the inspection of regulatory and legal correspondence, if any.
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.
We did not identify any irregularities, including fraud.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
Douai Abbey Trust **25**
**Independent auditor’s report** Year to 31 August 2021
## **Use of our report**
This report is made solely to the charity’s trustees, as a body, in accordance with section 144 of the Charities Act 2011 and with regulations made under section 154 of that Act. Our audit work has been undertaken so that we might state to the charity’s trustees those matters we are required to state to them in an 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 trustees as a body, for our audit work, for this report, or for the opinions we have formed.
Buzzacott LLP Statutory Auditor 130 Wood Street London EC2V 6DL
22 February 2022
Buzzacott LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006
Douai Abbey Trust **26**
## **Statement of financial activities** Year to 31 August 2021
|Notes|
**Un-**
**restricted**
**funds**
**£**|**Restricted**
**funds**
**£**|**2021**
**Total**
**funds**
**£**|Un-
restricted
funds
£|Restricted
funds
£
|
2020
Total
funds
£|
|---|---|---|---|---|---|---|
|**Income from:**
Donations and legacies
1
Charitable activities
2
Other trading activities
3
Investments and interest
receivable
4
Other sources
. Coronavirus Job
Retention Scheme grants
. Miscellaneous income
**Total income**
**Expenditure on:**
Raising funds
5
Charitable activities
. Support of members of
the Community and their
ministry
6
**Total expenditure**
**Net (expenditure) income**
**before gains on**
**investments and**
**transfers**
9
Transfers
17
**Other recognised gains**
**and losses**
Gains on the revaluation of
investment properties
14
Forward exchange gains
14
Gains on the revaluation
and disposal of listed
investments
14
**Net income and net**
**movement in funds**
**Reconciliation of funds:**
Fund balances brought
forward at 1 September
2020
**Fund balances carried**
**forward at 31 August**
**2021**|
**183,452**
**58,490**
**—**
**150,910**
**55,405**
**12,005**|
**22,943**
**—**
**—**
**—**
**—**
**—**|
**206,395**
**58,490**
**—**
**150,910**
**55,405**
**12,005**|
228,472
127,679
10,888
148,448
49,135
16,486|
29,493
—
—
—
—
—|
257,965
127,679
10,888
148,448
49,135
16,486|
||**460,262**|
**22,943**|**483,205**|581,108|
29,493|
610,601|
||
**74,152**
**721,010**|
**—**
**646**|
**74,152**
**721,656**|59,781
838,824|
—
2,589|
59,781
841,413|
||**795,162**|
**646**|**795,808**|898,605|
2,589|
901,194|
||
**(334,900)**
**—**
**—**
**44,462**
**620,067**|
**22,297**
**—**
**—**
**—**
**—**|
**(312,603)**
**—**
**—**
**44,462**
**620,067**|(317,497)
10,100
97,500
47,966
310,698|
26,904
(10,100)
—
—
—|
(290,593)
—
97,500
47,966
310,698|
||
**329,629**
**15,040,397**|
**22,297**
**116,499**|
**351,926**
**15,156,896**|148,767
14,891,630|
16,804
99,695|
165,571
14,991,325|
||**15,370,026**|
**138,796**|
**15,508,822**|15,040,397|
116,499|15,156,896|
All of the charity’s activities derived from continuing operations during the above two financial periods.
All recognised gains and losses are included in the above statement of financial activities.
Douai Abbey Trust **27**
## **Balance sheet** 31 August 2021
|Notes|
**2021**
**£**|**2021**
**£**|2020
£|2020
£|
|---|---|---|---|---|
|**Fixed assets:**
Tangible assets
13
Investments
14
**Current assets:**
Stocks
Debtors
15
Cash at bank and in hand
**Liabilities:**
Creditors: amounts falling due
within one year
16
**Net current assets**
**Total net assets**
**The funds of the charity:**
Restricted funds
17
Unrestricted funds
. General fund
. Designated funds
18
. Tangible fixed asset fund
19
**Total charity funds**|
**17,982**
**13,171**
**114,960**|
**6,540,218**
**8,864,866**|17,897
71,696
112,268|6,720,366
8,269,256|
|||**15,405,084**
**103,738**||14,989,622
167,274|
||**146,113**
**(42,375)**||201,861
(34,587)||
||
||||
|||**15,508,822**||15,156,896|
|||**138,796**
**3,679,808**
**5,150,000**
**6,540,218**||116,499
3,720,031
4,600,000
6,720,366|
|||**15,508,822**||15,156,896|
Approved by the trustees and signed on their behalf by:
Rt Revd W G Scott OSB
Trustee
Approved on: 15 February 2022
Douai Abbey Trust **28**
## **Statement of cash flows** Year to 31 August 2021
|Notes|
**2021**
**£**|2020
£|
|---|---|---|
|**Cash flows from operating activities:**
Net cash used in operating activities
A
**Cash flows from investing activities:**
Investment income including rent received
Purchase of tangible fixed assets
Proceeds from the disposal of listed investments
Net cost of settlement of foreign exchange contracts
Purchase of listed investments
**Net cash provided by investing activities**
**Change in cash and cash equivalents in the year**
**Cash and cash equivalents at 1 September 2020**
**Cash and cash equivalents at 31 August 2021**
B|
**(202,309) **|(295,582)|
||**150,861**
**(14,776)**
**2,394,356**
**58,808**
**(2,055,637) **|149,344
(9,938)
2,537,883
25,460
(2,592,419)|
||**533,612**|110,330|
||**331,303**
**391,428**|(185,252)
576,680|
||
**722,731**|391,428|
## **Notes to the statement of cash flows for the year to 31 August 2021.**
## **A Reconciliation of net movement in funds to net cash used in operating activities**
||**2021**
**£**|2020
£|
|---|---|---|
|**Net movement in funds (as per the statement of financial activities)**
**Adjustments for:**
Depreciation charge
Gains on investments
Investment income including rent receivable
Increase in stocks
Decrease (increase) in debtors
Increase (decrease) in creditors
**Net cash used in operating activities**|
**351,926**
**194,924**
**(664,529)**
**(150,910)**
**(85)**
**58,577**
**7,788**|165,571
196,894
(444,911)
(148,448)
(2,134)
(51,348)
(11,206)|
||**(202,309)**|(295,582)|
## **B Analysis of cash and cash equivalents**
|**Analysis of cash and cash equivalents**|||
|---|---|---|
||**2021**
**£**|2020
£|
|Cash at bank and in hand
Cash held by investment managers
**Total cash and cash equivalents**|**114,963**
**607,768**|112,268
279,160|
||**722,731**|391,428|
No separate reconciliation of net debt has been prepared as there is no difference between the net cash (debt) of the charity and the above cash and cash equivalents.
Douai Abbey Trust **29**
## **Principal accounting policies** 31 August 2021
The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the accounts are laid out below.
## **Basis of preparation**
These accounts have been prepared for the year to 31 August 2021 with comparative information provided in respect to the year to 31 August 2020.
The accounts have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant accounting policies below or the notes to these accounts.
The accounts have been prepared in accordance with 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 United Kingdom and Republic of Ireland (Charities SORP FRS 102) issued on 16 July 2014, the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.
The charity constitutes a public benefit entity as defined by FRS 102.
The accounts are presented in sterling and are rounded to the nearest pound.
## **Critical accounting estimates and areas of judgement**
Preparation of the accounts requires the trustees to make significant judgements and estimates.
The items in the accounts where these judgements and estimates have been made include:
- assessing the probability of the receipt of legacy income and estimating the amount to be received;
- estimating the useful economic life of tangible fixed assets for the purposes of determining the annual depreciation charge;
- estimating the fair value of investment properties;
- determining the value of designated funds needed at the year end, in particular in respect to the assumptions made in determining the value of the retirement fund; and
- estimating future income and expenditure flows for the purpose of assessing going concern (see below).
## **Assessment of going concern**
The trustees have assessed whether the use of the going concern assumption is appropriate in preparing these accounts. The trustees have made this assessment in respect to a period of at least one year from the date of approval of these accounts.
Douai Abbey Trust **30**
**Principal accounting policies** 31 August 2021
## **Assessment of going concern** (continued)
Since March 2020, the Covid-19 pandemic has changed the shape and nature of the world. It has impacted not only the basic nature of social interactions but has also had a significant economic impact at every level in ways which have been outside of the charity’s control.
The full impact on the charity’s income and expenditure and financial position following the emergence of the global Covid-19 pandemic is still uncertain. However, the trustees do not consider that there will be any material impact on income or expenditure and, therefore, on the charity’s financial position.
The charity’s income was impacted due to the need to temporarily cease offering retreats and hospitality to other visitors to the Abbey. However, there have been compensating falls in related expenditure and the charity was also able to take advantage of grants from the government’s Coronavirus Job Retention Scheme to offset the cost of salaries for staff that have been furloughed. Whilst donations have fallen, the drop has not been significant. Investment income will continue to be affected because of falls in dividends as investment markets and the corporate sector, in particular, react to the economic difficulties caused by the pandemic.
Throughout the pandemic, the trustees have kept, and will continue to keep, all income and expenditure under review. Whilst there will undoubtedly be challenges ahead, the trustees do not expect concerns to arise over the charity’s financial position. Therefore, the trustees have concluded that there are no material uncertainties related to events or conditions that may cast significant doubt on the ability of the charity to continue as a going concern. The trustees are of the opinion that the charity will have sufficient resources to meet its liabilities as they fall due.
The most significant areas of judgement that affect items in the accounts are detailed above. With regard to the next accounting period, the year ending 31 August 2022, the most significant areas that affect the carrying value of the assets held by the charity are the level of investment return and the performance of the investment markets (see the investment policy and the risk management sections of the trustees’ report for more information).
## **Income recognition**
Income is recognised in the period in which the charity has entitlement to the income, the amount of income can be measured reliably and it is probable that the income will be received.
Income comprises donations, legacies, investment income, income from the sale of books and artefacts, income from retreats and visitors and other income including the surplus on disposal of land and tangible fixed assets.
Douai Abbey Trust **31**
## **Principal accounting policies** 31 August 2021
## **Income recognition** (continued)
Donations, including salaries and pensions of individual religious received under Gift Aid or deed of covenant, are recognised when the charity has confirmation of both the amount and settlement date. In the event of donations pledged but not received, the amount is accrued for where the receipt is considered probable. In the event that a donation is subject to conditions that require a level of performance before the charity is entitled to the funds, the income is deferred and not recognised until either those conditions are fully met, or the fulfilment of those conditions is wholly within the control of the charity and it is probable that those conditions will be fulfilled in the reporting period.
In accordance with the Charities SORP FRS 102 volunteer time is not recognised.
Legacies are included in the statement of financial activities when the charity is entitled to the legacy, the executors have established that there are sufficient surplus assets in the estate to pay the legacy, and any conditions attached to the legacy are within the control of the charity.
Entitlement is taken as the earlier of the date on which either: the charity is aware that probate has been granted, the estate has been finalised and notification has been made by the executor to the charity that a distribution will be made, or when a distribution is received from the estate. Receipt of a legacy, in whole or in part, is only considered probable when the amount can be measured reliably and the charity has been notified of the executor’s intention to make a distribution. Where legacies have been notified to the charity, or the charity is aware of the granting of probate, but the criteria for income recognition have not been met, then the legacy is treated as a contingent asset and disclosed if material. In the event that the gift is in the form of an asset other than cash or a financial asset traded on a recognised stock exchange, recognition is subject to the value of the gift being reliably measurable with a degree of reasonable accuracy and the title of the asset having being transferred to the charity.
Investment income is recognised once the dividend or equivalent has been declared and notification has been received of the amount due.
Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the bank.
Income from the sale of books and artefacts and from retreats and other visitors is measured at fair value of the consideration received or receivable, excluding discounts.
Any surplus (or deficit) on the disposal of tangible fixed assets is calculated as the difference between the sale proceeds net of sale costs and the net book value of the asset immediately prior to disposal. It is accounted for once legal completion of the disposal has taken place.
Income from the Government’s Coronavirus Job Retention Scheme is recognised when the charity has made a valid claim for the income, the amount can be measured and it is entitled to receive the income.
Douai Abbey Trust **32**
## **Principal accounting policies** 31 August 2021
## **Expenditure recognition**
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to make a payment to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably.
All expenditure is accounted for on an accruals basis. Expenditure comprises direct costs and support costs. All expenses, including support costs, are allocated or apportioned to the applicable expenditure headings. The classification between activities is as follows:
- Expenditure on raising funds includes all expenditure associated with raising funds for the charity. This includes investment management fees and investment property costs.
- Expenditure on charitable activities includes all costs associated with furthering the charitable purposes of the charity through the provision of its charitable activities. Such costs include charitable donations and grants, costs in respect to the support of members of the Congregation and enabling their ministry, including governance costs.
Charitable grants and donations are made where the trustees consider there is real need following a review of the details of each particular case and comprise single year payments rather than multi-year grants. Grants and donations are included in the statement of financial activities when approved for payment. Provision is made for grants and donations approved but unpaid at the period end.
All expenditure is stated inclusive of irrecoverable VAT.
## **Tangible fixed assets**
All assets costing more than £1,000 and with an expected useful life exceeding one year are capitalised.
- a. Functional freehold property
- Freehold properties used for the direct charitable work of the charity are included in these accounts at an estimate of their historic cost as determined by the trustees.
Due to its historic nature, the Abbey is depreciated at a rate of 1% per annum on a straight line basis.
Other functional freehold properties are depreciated at a rate of 2% per annum on a straight line basis in order to write the buildings off over their estimated useful economic life to the charity.
- b. Other tangible fixed assets
- Plant and other tangible fixed assets are capitalised and depreciated at the following annual rates in order to write them off over their estimated useful lives:
- Plant, furniture and equipment – 5% to 20% per annum based on cost
- Motor vehicles – 25% per annum based on cost
Other tangible fixed assets which have been fully depreciated are written out of the accounts as their net realisable value is considered to be negligible.
Douai Abbey Trust **33**
**Principal accounting policies** 31 August 2021
## **Fixed asset investments**
Listed investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date using the closing quoted market price.
Management of the charity’s investment portfolio includes the use of foreign exchange contracts including forward contracts. These are a form of complex financial instrument. They are recognised initially at their transaction value and subsequently measured at their fair value as at the balance sheet date, using the prevailing exchange rate at that date. Changes in fair value are credited (or debited) to the statement of financial activities in the year in which they arise.
As noted above the main form of financial risk faced by the charity is that of volatility in equity markets and investment markets due to wider economic conditions, the attitude of investors to investment risk, and changes in sentiment concerning equities and within particular sectors or sub sectors.
Properties held for investment purposes are included in these accounts at fair value based on open market value. Investment properties were last re-valued formally on 2 December 2020 on an open market basis by Messrs Carter Jonas LLP, Chartered Surveyors, in accordance with the appropriate sections of the current RICS Professional Standards (PS) and RICS Global Valuation Practice Statements (VPS) contained in the RICS Valuation – Professional Standards 2020 incorporating the IVSC International Valuation Standards (the ‘Red Book’).
Realised gains (or losses) on investment assets are calculated as the difference between disposal proceeds and their opening carrying value or their purchase value if acquired subsequent to the first day of the financial year. Unrealised gains and losses are calculated as the difference between the fair value at the year end and their carrying value at that date. Realised and unrealised investment gains (or losses) are combined in the statement of financial activities and are credited (or debited) in the year in which they arise.
## **Debtors**
Debtors are recognised at their settlement amount, less any provision for nonrecoverability. Prepayments are valued at the amount prepaid. They have been discounted to the present value of the future cash receipt where such discounting is material.
## **Cash at bank and in hand**
Cash at bank and in hand represents such accounts and instruments that are available on demand or have a maturity of less than three months from the date of acquisition. Deposits for more than three months but less than one year have been disclosed as short term deposits.
Douai Abbey Trust **34**
## **Principal accounting policies** 31 August 2021
## **Creditors and provisions**
Creditors and provisions are recognised when there is an obligation at the balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Creditors and provisions are recognised at the amount the charity anticipates it will pay to settle the debt. They have been discounted to the present value of the future cash payment where such discounting is material.
## **Fund structure**
Restricted funds comprise monies raised for, or their use restricted to, a specific purpose, or contributions subject to donor imposed conditions.
General funds represent those monies which are freely available for application towards achieving any charitable purpose that falls within the charity’s charitable objects.
Designated funds comprise monies set aside out of unrestricted general funds for specific future purposes or projects.
The tangible fixed assets fund represents the net book value of the charity’s tangible fixed assets.
## **Foreign currencies**
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of the transaction. Exchange differences are taken into account in arriving at the net movement in funds.
## **Services provided by members of the Community**
For the purposes of these accounts, no value has been placed on administration and other services provided by the members of the Community.
## **Pension contributions**
Contributions in respect of the charity’s defined contribution pension scheme are charged to the statement of financial activities when they are payable to the scheme. The charity’s contributions are restricted to the contributions disclosed in note 11. There were no outstanding contributions at the year end. The charity has no liability beyond making its contributions and paying across the deductions for the employees’ contributions.
Douai Abbey Trust **35**
**Notes to the accounts** 31 August 2021
## **1 Income from: Donations and legacies**
||**Unrestricted**
**funds**
**£**
**11,325**
**24,500**
**31,616**
**51,598**
**64,413**
**183,452**|**Restricted**
**funds**
**£**|**2021**
**Total**
**funds**
**£**
**34,268**
**24,500**
**31,616**
**51,598**
**64,413**
**206,395**|
Unrestricted
funds
£
20,447
36,415
44,093
55,078
72,439
228,472|
Restricted
funds
£
29,493
—
—
—
—
29,493|
2020
Total
funds
£|
|---|---|---|---|---|---|---|
|Donations
Legacies
Collections and offertory
Amount receivable from
parishes administered by
Douai Abbey
Pensions and other income of
individual religious received
under deed of covenant
**Total funds**||**22,943**
**—**
**—**
**—**
**—**||||
49,940
36,415
44,093
55,078
72,439|
|||**22,943**||||
257,965|
## **2 Income from: Charitable activities**
|Sales of religious books and
artefacts
Retreat house and related
income
Other
**Total funds**|**Unrestricted**
**funds**
**£**|**Restricted**
**funds**
**£**|**2021**
**Total**
**funds**
**£**|Unrestricted
funds
£|Restricted
funds
£|
2020
Total
funds
£|
|---|---|---|---|---|---|---|
||**2,980**
**52,570**
**2,940**|**—**
**—**
**—**|**2,980**
**52,570**
**2,940**|9,031
112,505
6,143|—
—
—|
9,031
112,505
6,143|
||**58,490**|**—**|**58,490**|127,679|—|
127,679|
## **3 Income from: Other trading activities**
|Visitors for non-religious
purposes
Other
**Total funds**|**Unrestricted**
**funds**
**£**|**Restricted**
**funds**
**£**|**2021**
**Total**
**funds**
**£**|Unrestricted
funds
£|Restricted
funds
£|
2020
Total
funds
£|
|---|---|---|---|---|---|---|
||**—**
**—**|**—**
**—**|**—**
**—**|9,437
1,451|—
—|
9,437
1,451|
||**—**|**—**|**—**|10,888|—|
10,888|
## **4 Income from: Investments and interest receivable**
||**Unrestricted**
**funds**
**£**|
**Restricted**
**funds**
**£**|**2021**
**Total**
**funds**
**£**|Unrestricted
funds
£|Restricted
funds
£|
2020
Total
funds
£|
|---|---|---|---|---|---|---|
|Income from listed
investments and National
Savings Bonds
. UK equities
. Overseas equities
. Government bonds
Income from investment
property
. Rental income
Interest receivable
**Total funds**|**16,366**
**20,277**
**3,914**|
**—**
**—**
**—**|**16,366**
**20,277**
**3,914**|7,844
25,029
6,577|—
—
—|
7,844
25,029
6,577|
||**40,557**
**110,346**
**7**|
**—**
**—**
**—**|**40,557**
**110,346**
**7**|39,450
108,476
522|—
—
—|
39,450
108,476
522|
||**150,910**|
**—**|**150,910**|148,448|—|
148,448|
Douai Abbey Trust **36**
**Notes to the accounts** 31 August 2021
## **5 Expenditure on: Raising funds**
||**Unrestricted**
**funds**
**£**|**Restricted**
**funds**
**£**|
**2021**
**Total**
**funds**
**£**
**12,379**
**59,011**
**2,762**
**74,152**|Unrestricted
funds
£|Restricted
funds
£|2020
Total
funds
£|
|---|---|---|---|---|---|---|
|Investment property expenses
Investment manager’s fees
Other
**Total funds**|
**12,379**
**59,011**
**2,762**|**—**
**—**
**—**||
7,806
50,074
1,901|—
—
—|7,806
50,074
1,901|
||**74,152**|**—**||
59,781|—|59,781|
## **6 Expenditure on: Support of members of the Community and their ministry**
||**Unrestricted**
**funds**
**£**|**Restricted**
**funds**
**£**
**—**
**—**
**—**
**—**
**646**
**—**
**—**
**—**
**646**|**2021**
**Total**
**funds**
**£**|Unrestricted
funds
£
184,161
196,894
145,853
183,755
85,322
29,826
3,235
9,778
838,824|Restricted
funds
£|
2020
Total
funds
£|
|---|---|---|---|---|---|---|
|Staff costs (exc. pastoral
activities)
Depreciation
Living and personal costs
Premises
Pastoral activities (inc. staff
costs)
Governance (note 7)
Donations (note 8)
Other
**Total funds**|**197,800**
**194,924**
**131,420**
**150,403**
**23,331**
**14,259**
**3,698**
**5,175**||**197,800**
**194,924**
**131,420**
**150,403**
**23,977**
**14,259**
**3,698**
**5,175**||—
—
—
2,256
333
—
—
—|
184,161
196,894
145,853
186,011
85,655
29,826
3,235
9,778|
||**721,010**||**721,656**||2,589|
841,413|
## **7 Governance**
|**Governance**|||||||
|---|---|---|---|---|---|---|
|Professional fees
Legal fees
Auditor’s remuneration
**Total funds**|**Unrestricted**
**funds**
**£**|**Restricted**
**funds**
**£**|**2021**
**Total**
**funds**
**£**|Unrestricted
funds
£|Restricted
funds
£
—
—
—
—|
2020
Total
funds
£
4,915
14,411
10,500
29,826|
||**3,399**
**—**
**10,860**|**—**
**—**
**—**|**3,399**
**—**
**10,860**|4,915
14,411
10,500|||
||**14,259**|**—**|**14,259**|29,826|||
Legal fees in 2020 consisted of amounts paid to Kingsley Napley LLP, the legal firm chosen to represent the Roman Catholic English Benedictine Congregation as a whole together with many of the autonomous monasteries, including Douai Abbey, at the Independent Inquiry into Child Sexual Abuse.
Douai Abbey Trust **37**
## **Notes to the accounts** 31 August 2021
## **8 Donations**
|**Donations**|||||||
|---|---|---|---|---|---|---|
||**Unrestricted**
**funds**
**£**|**Restricted**
**funds**
**£**|**2021**
**Total**
**funds**
**£**|Unrestricted
funds
£|
Restricted
funds
£|
2020
Total
funds
£|
|Donations of less than £1,000
each|**3,698 **|
**—**|**3,698**|
3,235|
—|
3,235|
## **9 Net (expenditure) income before gains on investments and transfers**
This is stated after charging:
||**Unrestricted**
**funds**
**£**|**Restricted**
**funds**
**£**|**2021**
**Total**
**funds**
**£**|Unrestricted
funds
£|Restricted
funds
£|
2020
Total
funds
£|
|---|---|---|---|---|---|---|
|Staff costs (note 10)
Auditor’s remuneration
. Statutory audit services
Depreciation|**195,960**
**10,860**
**194,924**|
**—**
**—**
**—**|**195,960**
**10,860**
**194,924**|220,411
10,500
196,894|—
—
—|
220,411
10,500
196,894|
## **10 Employees and staff costs**
Staff costs during the year were as follows:
||**2021**
**£**|2020
£|
|---|---|---|
|Wages and salaries
Social security costs
Other pension costs|**176,474**
**12,616**
**6,870**|200,352
13,185
6,874|
||**195,960**|220,411|
No employee earned in excess of £60,000 per annum (including taxable benefits) or more during the year (2020 – none).
The average number of employees during the period was 14 (2020 – 17).
The key management personnel of the charity in charge of directing and controlling, running and operating the charity on a day to day basis comprise the trustees and the Bursar. They received no remuneration or reimbursement of expenses in connection with their duties during the year (2020 – £nil).
Douai Abbey Trust **38**
**Notes to the accounts** 31 August 2021
## **11 Trustees’ expenses and remuneration and transactions with trustees**
The charity's trustees are all members of the Community and consequently their living and personal expenses, all of which are consistent with the amounts paid in respect to other members of the Community, are borne by the charity. No trustee received any remuneration or reimbursement of expenses in connection with their duties as trustees (2020 – none).
As members of the Community, none of the trustees have resources of their own as all earnings, pensions and other income have been donated to the charity under a Gift Aid compliant Deed of Covenant. During the year, the total amount donated by the trustees to the charity was £18,535 (2020 – £18,561).
## **12 Taxation**
Douai Abbey Trust is a registered charity and, therefore, is not liable to income tax or corporation tax on income derived from its charitable activities or tax on capital gains, as it falls within the various exemptions available to registered charities.
## **13 Tangible fixed assets**
|**Tangible fixed assets**|||||
|---|---|---|---|---|
||Freehold
land and
buildings
£|Plant,
furniture
and
equipment
£|Motor
vehicles
£|**Total**
**£**|
|**Cost**
At 1 September 2020
Additions
At 31 August 2021
**Depreciation**
At 1 September 2020
Charge for year
At 31 August 2021
**Net book values**
At 31 August 2021
At 31 August 2020|9,347,196
—|262,817
8,022|19,095
6,754|**9,629,108**
**14,776**|
||9,347,196|270,839|25,849|**9,643,884**|
||2,747,161
171,410|146,131
20,764|15,450
2,750|**2,908,742**
**194,924**|
||2,918,571|166,895|18,200|**3,103,666**|
||6,428,625|103,944|7,649|**6,540,218**|
||6,600,035|116,686|3,645|**6,720,366**|
As permitted under FRS 102, the charity has adopted a policy of not revaluing its tangible fixed assets. Tangible fixed assets are stated at cost. Where a valuation has been used in periods prior to the implementation of FRS102, this has been taken to be deemed cost under the transitional arrangements of FRS 102.
It is likely that there are material differences between the open market values of the charity’s freehold land and buildings and their book values. These arise from the specialised nature of some of the properties and the effects of inflation. The amounts of such differences cannot be ascertained without incurring significant cost, which, in the opinion of the trustees, is not justified in terms of the benefits to the users of the accounts.
Douai Abbey Trust **39**
## **Notes to the accounts** 31 August 2021
## **14 Fixed asset investments**
At 31 August 2021 fixed asset investments comprised:
||**2021**
**£**|2020
£|
|---|---|---|
|Freehold investment property (see a below)
Listed investments and cash held for re-investment (see b below)
Foreign exchange contracts (see c below)|**3,342,500**
**5,525,459**
**(3,093)**|3,342,500
4,915,503
11,253|
||**8,864,866**|8,269,256|
Movements on each category of investment are summarised below.
- a. Freehold investment property
|Freehold investment property|||
|---|---|---|
||**2021**
**£**|2020
£|
|Fair (market) value at 1 September 2020
Revaluation gains in the year
Fair(market)value at 31 August 2021|**3,342,500**
**—**|3,245,000
97,500|
||**3,342,500**|3,342,500|
The investment properties were purchased many years ago and accurate cost figures for the properties are not available without considerable research. The trustees are of the opinion that the cost and time involved in such an exercise is not commensurate with the value to be obtained from ascertaining such information.
The charity’s freehold investment properties are included at fair value based on open market value. They were re-valued formally on 2 December 2020. The valuations were determined on an open market basis on behalf of Messrs Carter Jonas LLP, Chartered Surveyors, in accordance with the appropriate sections of the current RICS Professional Standards (PS) and RICS Global Valuation Practice Statements (VPS) contained in the RICS Valuation – Professional Standards 2020 incorporating the IVSC International Valuations Standards (the “Red Book”). The trustees are of the view that this valuation is not materially different from the value of the properties at 31 August 2021.
- b. Listed investments and cash held for re-investment
||**2021**
**£**|2020
£|
|---|---|---|
|**Listed investments**
Fair(market) value at 1 September 2020
Additions at cost
Disposals at book value (proceeds: £2,394,356 gains: £288,066)
Net unrealised investment gains
Fair (market) value at 31 August 2021
**Cash held by investment managers for re-investment**
Cost of listed investments at 31 August 2021|**4,636,343**
**2,055,637**
**(2,106,290)**
**332,001**|4,196,110
2,592,418
(2,428,583)
276,398|
||**4,917,691**
**607,768**|4,636,343
279,160|
||**5,525,459**|4,915,503|
||**4,487,466**|4,683,973|
All listed investments were dealt in on recognised stock exchanges.
Douai Abbey Trust **40**
**Notes to the accounts** 31 August 2021
## **14 Fixed asset investments** (continued)
- b. Listed investments and cash held for re-investment (continued) Listed investments held at 31 August 2021 comprised the following:
||**2021**
**£**|2020
£|
|---|---|---|
|UK equities
Overseas equities
Government bonds
Alternatives|**885,272**
**1,167,582**
**1,965,506**
**899,330**|413,999
1,246,188
1,759,741
1,227,669|
||**4,917,691**|4,647,597|
At 31 August 2021, listed investments included the following individual holdings deemed material when compared with the overall valuation of listed investments as at that date:
||Market
value
£|Percentage
%|
|---|---|---|
|LE Ruffer Gold
UK (Govt of) 0.125% I/L 22/03/2068
UK (Govt of) 0.125% I/L 22/03/2065
Ruffer SICAV Fixed Income Z GBP Cap|262,554
287,567
256,103
843,637|5%
5%
5%
15%|
- c. Gains on foreign exchange contracts for the year ended 31 August 2021 consisted of the following:
|following:|||
|---|---|---|
||**2021**
**£**|2020
£|
|**Foreign exchange contracts**
Fair value gain on unsettled contracts brought forward
Fair value gain on settlement
Fair value gain on unsettled contracts carried forward
**Total gain on foreign exchange contracts**|**(11,253)**
**58,808**
**(3,093)**|—
36,713
11,253|
||**44,462**|47,966|
## **15 Debtors**
|**Debtors**|||
|---|---|---|
||**2021**
**£**|2020
£|
|Investment income and interest receivable
Gift Aid recoverable
Prepayments
Legacy receivable
Other debtors and accrued income|**986**
**2,913**
**—**
**1,000**
**8,272**|935
10,589
1,638
31,415
27,119|
||**13,171**|71,696|
Douai Abbey Trust **41**
## **Notes to the accounts** 31 August 2021
## **16 Creditors: amounts falling due within one year**
|**Creditors: amounts falling due within one year**|||
|---|---|---|
||**2021**
**£**
**41,112**
**—**
**1,263**
**42,375**|2020
£
27,133
3,245
4,209
34,587|
|Expense creditors and accruals
Retreat and visitor income received in advance
VAT payable|||
## **17 Restricted funds**
The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trusts to be applied for specific purposes:
||**At**
**1 September**
**2020**
**£**
**115,553**
**946**|**Income**
**£**|**Expenditure**
**£**
**(646)**
**—**|**Transfers**
**£**|**At 31**
**August**
**2021**
**£**|
|---|---|---|---|---|---|
|Library Archives Fund
Other restricted fund||**22,943**
**—**||**—**
**—**|**137,850**
**946**|
||**116,499**|**22,943**|**(646)**|**—**|**138,796**|
||At
1
September
2019
£|Income
£|Expenditure
£
(2,589)
—
—|Transfers
£|At 31
August
2020
£|
|Library Archives Fund
Stained glass window fund
Other restricted fund|98,749
—
946|19,393
10,100
—||—
(10,100)
—|115,553
—
946|
||99,695|29,493|(2,589)|(10,100)|116,499|
The specific purposes for which the funds are to be applied are as follows:
- Library Archives Fund
This fund represents monies received specifically for the development of an archives database at the library, the maintenance of the archive, and the employment of a cataloguer.
- Stained glass window fund
This fund represented monies received specifically for the repair of the Abbey stained glass window which was damaged during a storm in November 2018. The transfer of £10,100 from the stained glass window fund to unrestricted funds in 2019/20 represented the application of donations received in that year to reimburse unrestricted funds for expenditure incurred in 2018/19.
- Other restricted fund This fund represents monies received for one off specific purposes.
Douai Abbey Trust **42**
## **Notes to the accounts** 31 August 2021
## **18 Designated funds**
The income funds of the charity include the following designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes:
||**At**
**1 September**
**2020**
**£**|**New**
**designation**
**s**
**£**|**Utilised/**
**released**
**£**|**At 31**
**August**
**2021**
**£**|
|---|---|---|---|---|
|Retirement reserve
Development fund|**4,150,000**
**450,000**|**—**
**550,000**|**—**
**—**|**4,150,000**
**1,000,000**|
||**4,600,000**|**550,000**|**—**|**5,150,000**|
||At
1 September
2019
£|New
designations
£|Utilised/
released
£|At 31
August
2020
£|
|Retirement reserve
Development fund|4,150,000
450,000|—
—|—
—|4,150,000
450,000|
||4,600,000|—|—|4,600,000|
The retirement reserve represents monies designated by the trustees to provide for the members of the Community in their retirement. It has been calculated using actuarial principles and will be reviewed regularly by the trustees in the light of the resources available and likely to be required.
The Development Fund comprises money set aside for future projects, as outlined in the Future Plans section of the Trustees' Report - see page: 15.
## **19 Tangible fixed assets fund**
||**£**|
|---|---|
|At 1 September 2020
Movement in year
At 31 August 2021|**6,720,366**
**(180,148)**|
||**6,540,218**|
||£|
|At 1 September 2019
Movement in year
At 31 August 2020|6,907,322
(186,956)|
||6,720,366|
The tangible fixed assets fund represents the net book value of the charity’s tangible fixed assets and has been set up in recognition of the fact that the assets are required for the day-to-day work of the charity and are not available to finance current expenditure or meet contingencies.
Douai Abbey Trust **43**
**Notes to the accounts** 31 August 2021
## **20 Analysis of net assets between funds**
||**General**
**fund**
**£**|**Designated**
**funds**
**£**|**Tangible**
**fixed**
**assets**
**fund**
**£**|**Restricted**
**funds**
**£**|
**Total**
**2021**
**£**|
|---|---|---|---|---|---|
|**Fund balances at 31**
**August 2021 are**
**represented by:**
Tangible fixed assets
Investments
Net current (liabilities)
assets
**Total net assets**|**—**
**4,264,866**
**(35,058)**|**—**
**4,600,000**
**—**|**6,540,218**
**—**
**—**|**—**
**—**
**138,796**|
**6,540,218**
**8,864,866**
**103,738**|
||**4,229,808**|**4,600,000**|**6,540,218**|**138,796**|**15,508,822**|
||General
fund
£|Designated
funds
£|Tangible
fixed
assets
fund
£|Restricted
funds
£|Total
2020
£|
|Fund balances at 31 August
2020 are represented by:
Tangible fixed assets
Investments
Net current assets
Total net assets|—
3,669,256
50,775|—
4,600,000
—|6,720,366
—
—|—
—
116,499|6,720,366
8,269,256
167,274|
||3,720,031|4,600,000|6,720,366|116,499|15,156,896|
The total unrealised gains constitute movements on revaluation and as at 31 August 2021, excluding those relating to forward exchange contracts (see note 14c), they were as follows:
||**2021**
**£**
**742,500**
**430,225**
**1,172,725**
**986,326**
**(145,602) **
**840,724**
**332,001**
**—**
**1,172,725**|2020
£
742,500
243,826
986,326
642,065
(29,636)
612,429
276,397
97,500
986,326|
|---|---|---|
|**Unrealised gains (losses) included above:**
On investment properties
On listed investments
Total unrealised gains at 31 August 2021
Reconciliation of movements in unrealised gains
Unrealised gains at 1 September 2020
Less: in respect of disposals in the year
Add: net gains arising on revaluation arising in the year
Add: gains arising on investment property revaluation in the year
Total unrealisedgains at 31 August 2021|||
## **21 Related party transactions**
The Douai Abbey Trust is connected to the Douai Abbey Parishes Trust (Charity Registration Number: 1063237) by virtue of the fact that both charities have a number of trustees in common.
Douai Abbey Trust **44**
## **Notes to the accounts** 31 August 2021
## **21 Related party transactions** (continued)
During the year rent of £12,000 (2020 – £12,000) for the use of St Mary’s Church was received by Douai Abbey Trust from Douai Abbey Parishes Trust.
In 2020 the trustees signed a loan agreement with the four other parishes of the Douai Abbey Parishes Trust to loan funds to Our Lady and St Joseph’s Church Alcester. The amount agreed to be loaned by Douai Abbey Trust was £20,000. At 31 August 2021 the loan had not been drawn down and was drawn in September 2021.
New Parish Hall at Alcester, partly funded by this loan.
Other than the donations received by trustees disclosed in note 10 to these accounts, there were no other related party transactions during the year which require disclosure (2020 – none).
Douai Abbey Trust **45**