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2023-08-31-accounts

Douai Abbey Trust

Annual Report and Accounts

31 August 2023

Charity Registration Number 236962

Contents

Reports

Reference and administrative information 1
Trustees’ report 2
Independent auditor’s report 18
Accounts
Statement of financial activities 23
Balance sheet 24
Statement of cash flows 25
Principal accounting policies 26
Notes to the accounts 32

Douai Abbey Trust

Reference and administrative information

Trustees Rt Revd P Gunter OSB
Revd A Hood OSB
Revd A Somerville Knapman OSB
Revd T Holt OSB
Revd S Wilson 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 Knights LLP
Rivergate House
Newbury Business Park
London Road
Newbury
RG14 2PZ

Douai Abbey Trust 1

Trustees’ report Year to 31 August 2023

The trustees present their statutory report together with the accounts of Douai Abbey Trust (“the charity”) for the year ended 31 August 2023.

The accounts have been prepared in accordance with the accounting policies set out on pages 26 to 31 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:

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.

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Trustees’ report Year to 31 August 2023

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 Catholic Diocese of Portsmouth and by other churches in the area who do not have enough space for large celebrations.

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. The annual confirmation of Catholic boys at Winchester College is held in the Church. Most of these events are made possible without a prescribed charge to the outside organisations.

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Trustees’ report Year to 31 August 2023

Activities, specific objectives and relevant policies (continued)

Activities and specific objectives (continued)

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 being available for spiritual direction and confession; by supplying priests to help in local parishes; or by other similar work on request.

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 are currently carrying out a review of their suggested charges. 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.

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Trustees’ report Year to 31 August 2023

Activities, specific objectives and relevant policies (continued)

Activities and specific objectives (continued)

The provision of hospitality and pastoral work (continued)

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. The Abbot, Fr Paul Gunter, continues to work as 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).

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Trustees’ report Year to 31 August 2023

Activities, specific objectives and relevant policies (continued)

Activities and specific objectives (continued)

Protection of Children and Vulnerable Adults (continued)

The trustees are fully committed to implementing all policies and procedures of the Catholic Safeguarding Standards Agency (CSSA). The Safeguarding Representative for the Trust appointed in the previous year continues to work for the community. 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 Religious Life Safeguarding Service, which is now responsible for safeguarding for virtually all the Catholic 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 trustees during the year.

As reported last year, the community, together with the other monasteries in the English Benedictine Congregation, engaged the services of an American, non-religious organisation called Praesidium who compiled a 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 had been accredited and this accreditation was renewed in 2023.

The community is now also regulated by the newly constituted Religious Life Safeguarding Service (RLSS ) which has been set up by the Catholic Church in England and Wales to separate Safeguarding matters for religious communities from the body which deals with the dioceses.

The Abbot volunteered Douai Abbey to be one of the first religious communities to undergo a pilot audit by the Catholic Safeguarding Standards Agency. This took place in September 2023 and the community achieved the rating of “Comprehensive Assurance”

In October 2023 every member of the community (those living at the Abbey and those working on parishes) attended training provided by the RLSS.

Investment policy

The charity has a portfolio of listed investments which together with cash awaiting investment had a market value as at 31 August 2023 of £4,976,793 (2022 – £5,419,395).

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.

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Trustees’ report Year to 31 August 2023

Investment policy (continued)

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

By its very nature the regular round of Divine Services in a monastery do not vary much from year to year. The pandemic gave rise to many restrictions on the ability of lay people and guests to participate, but attendance is now back to its previous level and in fact there are signs that new and younger people are beginning to form a regular part of the congregation.

Cameras and an enhanced sound system were installed during the previous year to enable live-streaming, and this has continued to be used for special occasions for the public, particularly for funerals and weddings.

One member of the community was resident in the monastery infirmary until October 2023, but he has now had to move to a care home. Another member of the community has now moved into the infirmary. The monk who acts as the infirmarian continues to take part in regular virtual meetings with other infirmarians and health professionals. During the year the care manager of another religious community has visited and has prepared a report on the layout, staffing and policies of the infirmary which the trustees are currently considering.

There have been no significant building works during the year, apart from essential maintenance. After two break-ins to our maintenance workshops we have installed an alarm and CCTV system and have also automated the closure of our main entrance gate. We have continued to investigate the possibility of introducing a new heating system in the accommodation blocks which date from the 1960s. We hope to reduce our dependence on oil. Last year we reported that our telephone system was said to be near the end of its useful life and in fact it failed at the beginning of September 2022. We have now replaced and upgraded the system.

Our two churches on site (the Abbey Church and the Parish Church) have been subject to Quinquennial Inspections for many years in accordance with good practice and we have now asked the architect responsible for these inspections to undertake a similar inspection for the rest of our buildings. The trustees look forward to receiving the report and its recommendations.

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Trustees’ report Year to 31 August 2023

Achievements and performance (continued)

Review of activities (continued)

The provision of education

One new member joined the community in August 2023, and one junior monk has continued his philosophical and theological studies at Blackfriars Hall, Oxford ~~.~~ A few people are in touch with the community about the possibility of joining the community in the future.

The community produces 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 the events surrounding the tercentenary of the birth of Bishop Charles Walmesley (1722 – 1797), a record of the General Chapter held in 2022, an account of the Election and Blessing of the new abbot, together with a chronicle of events and some book reviews.

The trustees consider the monastery’s archive and library to be part of its service to education. Researchers are once again using the archives for research. One archivist is employed to catalogue the archive and to assist researchers where necessary.

The provision of hospitality and pastoral work

The Guest House has been open throughout the year and the number of guests has begun to return to pre-pandemic levels. 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 the previous years would make such a comparison meaningless. The income from the Guest House totalled £140,299 (2022 £117,185).

Our monks have continued to serve in parishes in the Midlands and in Lancashire.

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Trustees’ report Year to 31 August 2023

Investment performance

During the year to 31 August 2023, the charity’s listed investments produced an income yield of 1.20% (2022 – 1.11%). The charity’s listed investments fell in value during the year, giving rise to net investment losses of £310,584 (2022 – gains of £171,197) on the portfolio. The capital yield on the portfolio during the year showed a fall in value of 6.35% (2022 – increase in value of 4.6%).

Investment properties produced rental income of £120,500 (2022 – £127,587) 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 23 of the attached accounts.

Total income for the year amounted to £597,883 compared to £652,173 in the previous year. Donations and legacies amount to £221,719 compared to £321,861. The total figures include donations of £21,057 (2022 – £18,110) 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 increased to £162,932 (2022 – £128,596) as did income from visitors and other trading activities to £10,149 (2022 – £8,318). Income from listed and property investments, together with interest receivable, amounted to £191,083 (2022 – £181,398).

Expenditure amounted to £1,078,534 compared to £933,847 in 2022. The cost of raising funds increased by £10,472 to £77,819 (2022 – £67,347), the costs in relation to supporting members of the Community and their ministry increased to £1,000,715 (2022 – £866,500). The increase is due to increases in the cost of premises and pastoral activities.

The net expenditure for the year before investment losses/gains and foreign exchange losses/gains was £480,651 (2022 – net expenditure of £281,674). The net investment losses totalled £310,584 (2022 – £171.197) in respect to listed investments. During the year ended 31 August 2022, net gains on the revaluation of investment properties amounted to £597,500; the investment properties were not revalued during the year ended 31 August 2023. Forward foreign exchange gains totalled £65,852 (2022 – losses of £19,771). When these net losses/gains are accounted for, the overall impact on the charity’s funds is a decrease of £725,383 for the year (2022 – increase of £467,252).

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 sufficient returns to fund recurring expenditure.

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Trustees’ report Year to 31 August 2023

Financial report for the year (continued)

Reserves and policy and financial position (continued)

Reserves policy (continued)

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 £15,250,691 (2022 – £15,976,074).

These funds include an amount of £161,949 (2022 – £155,992) 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 £6,205,010 (2022 – £6,367,361) 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.

Funds totalling £5,150,000 (2022 – £5,150,000) have been designated, or set aside, by the trustees for specific purposes as follows:

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 2023 total £3,733,732 (2022 – £4,302,721).

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 aftermath of the global Covid-19 pandemic and because of the current cost of living crisis, particularly the cost of energy and food.

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Trustees’ report Year to 31 August 2023

Financial report for the year (continued)

Reserves and policy and financial position (continued)

Financial position (continued)

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 (2022 – £4,150,000) described above may prove to be inadequate. This has been brought home to the trustees as they are now faced with a bill for care home costs for one member of the community amounting to £7,500 per month, although there is a small chance that some of this will be covered by a local authority. 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.

Future plans

The trustees intend to continue to follow up the recommendations of Steven Little’s financial report which was presented to them in October 2022. They are in the process of increasing the recommended charges for the Guest House.

During the year we consulted an experienced and successful fundraiser with a view to restructuring and enhancing our fundraising activities, recognising that effective fundraising is essential to the Community’s well-being and future work. As a result of that exercise, we have initiated the launch of a new fundraising vehicle: the Society of St Edmund at Douai (SSEDA) This was formally launched in December and the trustees intend to develop this over the coming years. It will be geared to fund new projects rather than to support our general and recurring costs.

The trustees will be encouraging the Community to think about its future and to determine what it stands for and what particular contribution it can make to the Church and to Society. The trustees want it to be clear to any newcomers or enquirers what our values are and how we can best fulfil their hopes and needs. The trustees are actively planning to change from a charitable trust to a CIO and we have received legal and financial advice about this move.

The bursar has been in post since 2005 and the trustees consider that it is time for a change. They have started the process of finding a replacement.

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Trustees’ report Year to 31 August 2023

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. 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 2023 are given below:

Revd P Gunter OSB, BD, SL.L, SL.D

Abbot of Douai and chairman of the trustees since May 2022. Formerly 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 2008-2015, Professor at the Pontifical Institute of Liturgy, Rome 2006-2016. Further Studies, Rome 2002-2006. Parish Priest, Studley 1999-2002 and Trustee of Douai Abbey Parishes Trust. Member, Council of Priests, Diocese of Clifton 1995-1999; assistant priest, school chaplain, hospital chaplain, Cheltenham 1992-1999.

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Governance, structure and management (continued)

Governance (continued)

Revd Gabriel Wilson BA

Before joining the Douai community in 2008 he was a Teacher of English, Head of Department and Advanced Skills Secondary School Teacher for 17 years. Father Gabriel is Prior and Novice Master. He has directed the Abbey’s Pastoral Programme, led retreats, coordinated the Abbey’s Alongside Programme for those exploring monastic life, and has been Parish Priest of St Mary’s Woolhampton. He is also an Associate Governor of a Primary School in Thatcham and looks after the Douai Abbey apiary, advocating locally adapted bees and treatment-free beekeeping.

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, 2002-2021 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 and since September 2022 has been Parish Priest of the Douai Abbey parish.

Revd T J Holt 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 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 parish priest 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. This year the Press published an historical guide to one of our parishes and will be publishing a biography in the coming year. 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 a ICF Certified coach, a Meyler Campbell trained business and leadership coach and a graduate of the FT Non-Executive Director Diploma. An economist and barrister by training, she was also a portfolio manager, investment analyst and strategist for 32 years. She was Governor of the University of Winchester from 2014 to 2021 and of the Pilgrims’ School from 2012 to 2022.

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Governance, structure and management (continued)

Governance (continued)

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. He was President of Keio Academy of New York and Special Adviser to the President of Keio University 2017 – 2021 and Chairman of The Prep Schools Trust 2017 – 2022. He has been Director of an educational consultancy, Winton Consult Limited, since 2017, engaged in advisory service on school governance, management and curriculum in Europe and USA.

Graham Hutton worked in financial services for the whole of his career until retiring in 2020. He was a director of the merchant bank, Morgan Grenfell, from 1988 to 1998 and Chief Executive of Morgan Grenfell Private Equity from 1998 to 2001. He then co-founded the private equity firm, Hutton Collins, of which he was one of two senior partners until his retirement. He is a Knight of Magistral Grace in the Order of Malta, Deputy Chairman of the Orders of St John Care Trust and Chairman of its Finance Committee . He is a board member of the International Theological Institute in Trumau, Austria and was Chairman of Aid to the Church in Need, UK, from 2013 until 2022.

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). Kate currently works with the diocese of Southwark, Westminster and Portsmouth and undertakes critical assessments for the Catholic Safeguarding Standards Agency. She is attending a nine-month on-line course on the Theology of Safeguarding. She served for 15 years on Portsmouth Diocese Safeguarding Commission (until 2019). Kate currently works with the dioceses of Southwark, Westminster and Portsmouth and undertakes critical assessments for the Catholic Safeguarding Standards Agency. She attended a nine-month on-line course on the Theology of Safeguarding last year and three RLSS training sessions on Victims and Survivors and the role of Safeguarding Leads.

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).

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:

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Governance, structure and management (continued)

Trustees’ responsibilities statement (continued)

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-today 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.

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 Parish Trust (Registered Charity No: 1063237). Three of the trustees of the Douai Abbey Trust are also trustees of the Douai Abbey Parish Trust. Details of transactions between the two charities are given in the notes to the accounts.

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Trustees’ report Year to 31 August 2023

Governance, structure and management (continued)

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. 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:

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.

Douai Abbey Trust 16

Independent auditor’s report Year to 31 August 2023

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 2023 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:

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 18

Independent auditor’s report Year to 31 August 2023

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:

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 19

Independent auditor’s report Year to 31 August 2023

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:

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

Douai Abbey Trust 20

Independent auditor’s report Year to 31 August 2023

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:

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

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 21

Independent auditor’s report Year to 31 August 2023

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.

Date 26 April 2024

Buzzacott LLP Statutory Auditor 130 Wood Street London EC2V 6DL

Buzzacott LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006

Douai Abbey Trust 22

Statement of financial activities Year to 31 August 2023

Notes
Un-
restricted
funds
£		 Restricted
funds
£		 2023
Total
funds
£		 Un-
restricted
funds
£		 Restricted
funds
£		 2022
Total
funds
£
Income from:
Donations and legacies
1
Charitable activities
2
Other trading activities
3
Investments and interest
receivable
4
Other sources
. 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 (losses) on
foreign exchange and
investments
9
Other recognised gains
and losses
Gains on the revaluation of
investment properties
14
Forward exchange gains
(losses)
14
(Losses) gains on the
revaluation and disposal of
listed investments
14
Net (expenditure) income
and net movement in
funds
Reconciliation of funds:
Fund balances brought
forward at 1 September
2022
Fund balances carried
forward at 31 August
2023
200,662

162,932

10,149

191,083
12,000		 21,057
—
—
—
—		 221,719
162,932
10,149
191,083
12,000		 303,751
128,596
8,318
181,398
12,000		 18,110
—
—
—
—		 321,861
128,596
8,318
181,398
12,000
576,826 21,057 597,883 634,063 18,110 652,173

77,819

985,615		 —
15,100		 77,819
1,000,715		 67,347
865,586		 —
914		 67,347
866,500
1,063,434 15,100 1,078,534 932,933 914 933,847

(486,608)

—

65,852

(310,584)		 5,957
—
—
—		 (480,651)
—
65,852
(310,584)		 (298,870)
597,500
(19,771)
171,197		 17,196
—
—
—		 (281,674)
597,500
(19,771)
171,197
(731,340)
15,820,082		 5,957
155,992		 (725,383)
15,976,074		 450,056
15,370,026		 17,196
138,796		 467,252
15,508,822
15,088,742 161,949 15,250,691 15,820,082 155,992 15,976,074

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 23

2023 2023 2022 2022
Notes £ £ £ £
Fixedassets:
Tangibleassets 13 6,205,010 6,367,361
Investments 14 8,921,457 9,352,011
15,126,467 15,719,372
Currentassets:
Stocks 16,451 16,809
Debtors 15 101,368 161,239
Cashatbankandinhand 57,077 118,323
174,896 296,371
Liabilities:
Creditors:amountsfallingdue
withinoneyear 16 (50,672) (39,669)
Netcurrentassets 124,224 256,702
Totalnetassets 15,250,691 15,976,074
Thefundsofthecharity:
Restrictedfunds 17 161,949 155,992
Unrestrictedfunds
.Generalfund 3,733,732 4,302,721
.Designatedfunds 18 5,150,000 5,150,000
.Tangiblefixedassetfund 19 6,205,010 6,367,361
Totalcharityfunds 15,250,691 15,976,074

Statement of cash flows Year to 31 August 2023

Notes
2023
£		 2022
£
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 proceeds from (cost of) settlement of foreign exchange
contracts
Purchase of listed investments
Net cash (used in) provided by investing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents at 1 September 2022
Cash and cash equivalents at 31 August 2023
B
(405,063)		 (419,323)
192,610
(34,615)
3,586,208
53,809
**(3,889,964) **		 180,379
(19,477)
3,598,602
(15,485)
(3,313,955)
(91,952) 430,064
(497,015)
733,472		 10,741
722,731

236,457		 733,472

Notes to the statement of cash flows for the year to 31 August 2023.

A Reconciliation of net movement in funds to net cash used in operating activities

2023
£		 2022
£
Net movement in funds (as per the statement of financial activities)
Adjustments for:
Depreciation charge
Net losses (gains) on foreign exchange contracts and investments
Investment income including rent receivable
Decrease in stocks
Decrease (increase) in debtors
Increase (decrease) in creditors
Net cash used in operating activities
(725,383)
196,966
244,732
(191,083)
358
58,344
11,003		 467,252
192,334
(748,926)
(181,398)
1,173
(147,052)
(2,706)
(405,063) (419,323)

B Analysis of cash and cash equivalents

Analysis of cash and cash equivalents
2023
£		 2022
£
Cash at bank and in hand
Cash held by investment managers
Total cash and cash equivalents		 57,077
179,380		 118,323
615,149
236,457 733,472

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 25

Principal accounting policies 31 August 2023

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 2023 with comparative information provided in respect to the year to 31 August 2022.

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), 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:

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 26

Principal accounting policies 31 August 2023

Assessment of going concern (continued)

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 2024, 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.

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.

Douai Abbey Trust 27

Principal accounting policies 31 August 2023

Income recognition (continued)

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.

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:

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.

Due to its historic nature, the Abbey is depreciated at a rate of 1% per annum on a straight line basis.

Douai Abbey Trust 28

Principal accounting policies 31 August 2023

Tangible fixed assets (continued)

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.

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.

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 27 February 2023 for the year ended 31 August 2022 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.

Douai Abbey Trust 29

Principal accounting policies 31 August 2023

Debtors

Debtors are recognised at their settlement amount, less any provision for non-recoverability. 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.

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.

Douai Abbey Trust 30

Principal accounting policies 31 August 2023

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 10. 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 31

Notes to the accounts 31 August 2023

1 Income from: Donations and legacies

Unrestricted
funds
£
11,115
14,128
52,211
51,950

71,258
200,662		 Restricted
funds
£		 2023
Total
funds
£
32,172
14,128
52,211
51,950
71,258
221,719		 Unrestricted
funds
£

71,933

67,740

47,419

51,272

65,387

303,751


Restricted
funds
£

18,110

—

—

—

—

18,110		 2022
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		 21,057
—
—
—
—		 90,043
67,740
47,419
51,272
65,387
21,057 321,861

2 Income from: Charitable activities

Sales of religious books and
artefacts
Retreat house and related
income
Other
Total funds		 Unrestricted
funds
£		 Restricted
funds
£		 2023
Total
funds
£		 Unrestricted
funds
£		 Restricted
funds
£		 2022
Total
funds
£
10,404
140,299
12,229		 —
—
—		 10,404
140,299
12,229		 5,839
117,185
5,572		 —
—
—		 5,839
117,185
5,572
162,932 — 162,932 128,596 — 128,596

3 Income from: Other trading activities

Visitors for non-religious
purposes
Other
Total funds		 Unrestricted
funds
£		 Restricted
funds
£		 2023
Total
funds
£		 Unrestricted
funds
£		 Restricted
funds
£		 2022
Total
funds
£
6,746
3,403		 —
—		 6,746
3,403		 6,292
2,026		 —
—		 6,292
2,026
10,149 — 10,149 8,318 — 8,318

4 Income from: Investments and interest receivable

Unrestricted
funds
£		 Restricted
funds
£		 2023
Total
funds
£		 Unrestricted
funds
£		 Restricted
funds
£		 2022
Total
funds
£
Income from listed
investments and National
Savings Bonds
. UK equities
. Overseas equities
. Government bonds
Income from investment
property
. Rental income
Interest receivable
Exchange gains on
investments
Total funds		 9,602
9,697
34,009		 —
—
—		 9,602
9,697
34,009		 15,592
27,090
11,097		 —
—
—		 15,592
27,090
11,097
53,308
120,500
5,547
11,728		 —
—
—
—		 53,308
120,500
5,547
11,728		 53,779
127,587
—
32		 —
—
—
—		 53,779
127,587
—
32
191,083 — 191,083 181,398 — 181,398

Douai Abbey Trust 32

Notes to the accounts 31 August 2023

5 Expenditure on: Raising funds

Unrestricted
funds
£		 Restricted
funds
£		 2023
Total
funds
£
15,608
59,226
2,985
77,819		 Unrestricted
funds
£
3,933
61,765
1,649
67,347		 Restricted
funds
£
—
—
—
—		 2022
Total
funds
£
Investment property expenses
Investment manager’s fees
Other
Total funds
15,608
59,226
2,985		 —
—
—		 3,933
61,765
1,649
77,819 — 67,347

6 Expenditure on: Support of members of the Community and their ministry

Unrestricted
funds
£		 Restricted
funds
£
—
—
445
—
14,655
—
—
—
15,100		 2023
Total
funds
£
205,836
196,966
229,857
233,140
94,437
23,575
634
16,270
1,000,715		 Unrestricted
funds
£
184,317
192,334
161,713
209,897
57,368
37,780
10,781
11,396
865,586		 Restricted
funds
£
—
—
—
—
914
—
—
—
914		 2022
Total
funds
£
Staff costs (excl. pastoral
activities)
Depreciation
Living and personal costs
Premises
Pastoral activities (incl. staff
costs)
Governance (note 7)
Donations (note 8)
Other
Total funds		 205,836
196,966
229,412
233,140
79,782
23,575
634
16,270		 184,317
192,334
161,713
209,897
58,282
37,780
10,781
11,396
985,615 866,500

7 Governance

Governance
Professional fees
Legal fees
Auditor’s remuneration
Total funds		 Unrestricted
funds
£		 Restricted
funds
£		 2023
Total
funds
£		 Unrestricted
funds
£
5,341
21,794
10,645
37,780		 Restricted
funds
£

—

—

—

—
Restricted
funds
£		 2022
Total
funds
£
5,341
21,794
10,645
37,780
9,086
1,349
13,140		 —
—
—		 9,086
1,349
13,140
23,575 — 23,575
Donations Restricted
funds
£		 2023
Total
funds
£
—
—
—
—
634
634		 Unrestricted
funds
£		 2022
Total
funds
£
1,000
1,000
5,000
1,000
2,781
10,781
Voluntary Service Overseas
Cardinal Hume Centre
Aid to the Church in Need
Society for the Protection of
Unborn Children
Donations of less than £1,000
each		 —
—
—
—

634		 —
—
—
—
—		 1,000
1,000
5,000
1,000
2,781		 —
—
—
—
—
634 — 10,781 —

8 Donations

Douai Abbey Trust 33

Notes to the accounts 31 August 2023

Unrestricted
funds
£		 Restricted
funds
£		 2023
Total
funds
£		 Unrestricted
funds
£		 Restricted
funds
£		 2022
Total
funds
£
Staff costs (note 10)
Auditor’s remuneration
. Statutory audit services
Depreciation		 249,857
13,140
196,966		 —
—
—		 249,857
13,140
196,966		 211,204
10,645
192,334		 —
—
—		 211,204
10,645
192,334

10 Employees and staff costs

Staff costs during the year were as follows:

Employees and staff costs
Staff costs during the year were as follows:
2023
£		 2022
£
Wages and salaries
Social security costs
Other pension costs		 223,815
17,572
8,470		 187,921
15,635
7,648
249,857 211,204

No employee earned in excess of £60,000 per annum (including taxable benefits) or more during the year (2022 – none).

The average number of employees during the period was 15 (2022 – 13).

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 (2022 – £nil).

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. None of the trustees has received any remuneration or reimbursement of expenses in connection with their duties as trustees (2022 – 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 £12,766 (2022 – £19,147).

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.

Douai Abbey Trust 34

Notes to the accounts 31 August 2023

13 Tangible fixed assets

Tangible fixed assets
Freehold
land and
buildings
£		 Plant,
furniture
and
equipment
£		 Motor
vehicles
£		 Total
£
Cost
At 1 September 2022
Additions
At 31 August 2023
Depreciation
At 1 September 2022
Charge for year
At 31 August 2023
Net book values
At 31 August 2023
At 31 August 2022		 9,347,196
—		 278,396
30,325		 32,574
4,290		 9,658,166
34,615
9,347,196 308,721 36,864 9,692,781
3,089,981
171,410		 184,176
19,904		 16,648
5,652		 3,290,805
196,966
3,261,391 204,080 22,300 3,487,771
6,085,805 104,641 14,564 6,205,010
6,257,215 94,220 15,926 6,367,361

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.

14 Fixed asset investments

At 31 August 2023 fixed asset investments comprised:

2023
£		 2022
£
Freehold investment property (see a below)
Listed investments and cash held for re-investment (see b below)
Foreign exchange contracts (see c below)		 3,940,000
4,976,793
4,664		 3,940,000
5,419,390
(7,379)
8,921,457 9,352,011

Movements on each category of investment are summarised below.

a. Freehold investment property

Freehold investment property
2023
£		 2022
£
Fair (market) value at 1 September 2022
Revaluation gains in the year
Fair(market)value at 31 August 2023		 3,940,000
—		 3,342,500
597,500
3,940,000 3,940,000

Douai Abbey Trust 35

Notes to the accounts 31 August 2023

14 Fixed asset investments (continued)

a. Freehold investment property (continued)

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 27 February 2023 for the year ended 31 August 2022. 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”).

b. Listed investments and cash held for re-investment

Listed investments and cash held for re-investment
2023
£		 2022
£
Listed investments
Fair (market) value at 1 September 2022
Additions at cost
Disposals at book value (proceeds: £3,586,208 realised gains:
£110,521)
Net unrealised investment (losses) gains
Fair (market) value at 31 August 2023
Cash held by investment managers for re-investment
Cost of listed investments at 31 August 2023		 4,804,241
3,889,964
(3,475,687)
(421,105)		 4,917,691
3,313,955
(3,634,247)
206,842
4,797,413
179,380		 4,804,241
615,149
4,976,793 5,419,390
4,750,085 4,291,120

All listed investments were dealt in on recognised stock exchanges.

Listed investments held at 31 August 2023 comprised the following:

2023
£		 2022
£
UK equities
Overseas equities
Government bonds
Open ended investment funds
Alternatives		 126,641
612,946
2,654,804
334,251
1,068,772		 285,464
542,254
2,682,150
455,703
838,670
4,797,413 4,804,241

Douai Abbey Trust 36

Notes to the accounts 31 August 2023

14 Fixed asset investments (continued)

b. Listed investments and cash held for re-investment (continued)

At 31 August 2023, listed investments included the following individual holdings deemed material when compared with the overall valuation of listed investments as at that date:

Market
value
2023
£		 Percentage
2023
%
Ruffer Illiquid Multi Strategies Fund 2015 Ltd
UK (Govt of) 0.125% 31/01/2024
UK (Govt of) 0.25% 31/01/2025
Ruffer SICAV Fixed Income Z GBP Cap
Ruffer Protection Strategies International z GBP
Wisdom Tree Brent Crude Oil ETC		 330,556
363,359
479,393
1,452,977
334,251
322,539		 6.9%
7.6%
10.0%
30.3%
7.0%
6.7%
Market
value
2022
£		 Percentage
2022
%
Ruffer Illiquid Multi Strategies Fund 2015 Ltd
UK (Govt of) 2.5% I/L 17/07/2024
UK (Govt of) 0.125% I/L 22/03/2024
Ruffer SICAV Fixed Income Z GBP Cap
Ruffer Protection Strategies International z GBP		 519,937
429,361
436,284
1,362,690
455,703		 10.8%
8.9%
9.1%
28.4%
9.5%

The Ruffer Protection Strategies International Fund is an open ended specialist investment fund in umbrella form, with separate sub-funds incorporated in Luxembourg.

The fund is limited to investing in instruments where the maximum loss is limited to the initial commitment paid. The fund may selectively hedge profitable holdings with swaps, forwards, and futures such that the combination of the holding being hedged and the hedge itself cannot expose the fund to a greater loss than the initial commitment paid on the holding being hedged.

c. Gains (losses) on foreign exchange contracts for the year ended 31 August 2023 consisted of the following:

consisted of the following:
2023
£		 2022
£
Foreign exchange contracts
Fair value gains on unsettled contracts brought forward
Fair value gains (losses) on settlement
Fair value gains (losses) on unsettled contracts carried forward
Total gains (losses) on foreign exchange contracts		 2,777
58,411
4,664		 3,093
(15,485)
(7,379)
65,852 (19,771)

Douai Abbey Trust 37

Notes to the accounts 31 August 2023

15 Debtors

Debtors
2023
£		 2022
£
Investment income and interest receivable
Gift Aid recoverable
Legacies receivable
Prepayments
Other debtors and accrued income
Loan to Douai Abbey Parishes Trust (see below)		 475
12,495
44,500
—
23,898
20,000		 2,002
4,120
92,358
5,133
37,626
20,000
101,368 161,239

On 13 February 2020, the trustees signed a loan agreement with Douai Abbey Parishes Trust (see note 21) to loan funds to one of the parishes accounted for within the Douai Abbey Parishes Trust to be applied towards the refurbishment of a parish hall. The maximum amount to be advanced by the charity was £20,000. The full amount was drawn down by Douai Abbey Parishes Trust during September 2021. The loan is interest free and repayable over a period of five years, the first repayment becoming due two years after the completion of the work on the hall. Repayments will be due annually and amount to £4,000 per annum. The hall is now in use but some minor snagging works are not yet completely finished.

16 Creditors: amounts falling due within one year

Creditors: amounts falling due within one year
2023
£		 2022
£
Expense creditors and accruals
VAT payable		 47,334
3,338		 37,288
2,381
50,672 39,669

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
2022
£		 Income
£		 Expenditure
£
(14,655)
(445)
—
—
—
(15,100)		 Transfers
£		 At 31
August
2023
£
Library Archives Fund
Formation Fund
Restricted retirement Fund
Student Fund
Other restricted funds		 155,046
—
—
—
946		 13,965
445
2,544
4,103
—		 —
—
—
—
—		 154,356
—
2,544
4,103
946
155,992 21,057 — 161,949

Douai Abbey Trust 38

Notes to the accounts 31 August 2023

17 Restricted funds (continued)

At
1 September
2021
£		 Income
£		 Expenditure
£		 Transfers
£		 At 31
August
2022
£
Library Archives Fund
Other restricted funds		 137,850
946		 18,110
—		 (914)
—		 —
—		 155,046
946
138,796 18,110 (914) — 155,992

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.

Formation Fund

This fund represents monies held to be applied towards the cost of training members of the Community or others in theology and the provision of spiritual direction.

Restricted retirement Fund

This fund is made up of donations made to the Abbey towards the cost of retirement of members, including medical and care costs.

Student Fund

This fund represents monies received to help fund the studies of a student in India.

Other restricted funds

This fund represents monies received for one-off specific purposes.

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
2022
£		 New
designation
s
£		 Utilised/
released
£		 At 31
August
2023
£
Retirement reserve
Development fund		 4,150,000
1,000,000		 —
—		 —
—		 4,150,000
1,000,000
5,150,000 — — 5,150,000
At
1 September
2021
£		 New
designations
£		 Utilised/
released
£		 At 31
August
2022
£
Retirement reserve
Development fund		 4,150,000
1,000,000		 —
—		 —
—		 4,150,000
1,000,000
5,150,000 — — 5,150,000

Douai Abbey Trust 39

Notes to the accounts 31 August 2023

18 Designated funds (continued)

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.

19 Tangible fixed assets fund

£
At 1 September 2022
Movement in year
At 31 August 2023		 6,367,361
(161,159)
6,206,202
£
At 1 September 2021
Movement in year
At 31 August 2022		 6,540,218
(172,857)
6,367,361

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.

20 Analysis of net assets between funds

General
fund
£		 Designated
funds
£		 Tangible
fixed
assets
fund
£		 Restricted
funds
£
—
161,949
—
161,949		 Total
2022
£
Fund balances at 31
August 2023 are
represented by:
Tangible fixed assets
Investments
Net current (liabilities)
assets
Total net assets		 —
3,609,508
124,224		 —
5,150,000
—		 6,205,010
—
—		 6,205,010
8,921,457
124,224
3,733,732 5,150,000 6,205,010 15,250,691

Douai Abbey Trust 40

Notes to the accounts 31 August 2023

20 Analysis of net assets between funds (continued)

General
fund
£		 Designated
funds
£		 Tangible
fixed
assets
fund
£
6,367,361
—
—
6,367,361		 Restricted
funds
£
—
—
155,992
155,992		 Total
2021
£
Fund balances at 31 August
2022 are represented by:
Tangible fixed assets
Investments
Net current (liabilities)
assets
Total net assets		 —
4,202,011
100,710		 —
5,150,000
—		 6,367,361
9,352,011
256,702
4,302,721 5,150,000 15,976,074

The total unrealised gains constitute movements on revaluation and as at 31 August 2023, excluding those relating to forward exchange contracts (see note 14c), they were as follows:

2023
£		 2022
£
Unrealised gains (losses) included above:
On investment properties
On listed investments
Total unrealised gains at 31 August 2023
Reconciliation of movements in unrealised gains:
Unrealised gains at 1 September 2022
Less: in respect of disposals in the year
(Less) Add: net (losses) gains arising on revaluation arising in the year
Total unrealisedgains at 31 August 2023		 1,340,000
47,328		 1,340,000
513,121
1,387,328 1,853,121
1,853,121
(44,688)
(421,105)		 1,172,725
(123,946)
804,342
1,387,328 1,853,121

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.

During the year, rent of £12,000 (2022 – £12,000) for the use of St Mary’s Church and office space in the monastery was received by Douai Abbey Trust from Douai Abbey Parishes Trust. No balance was outstanding at either year end.

On 13 February 2020 the trustees signed a loan agreement Douai Abbey Parishes Trust to loan funds to the parish of Our Lady and St Joseph’s, Alcester. The amount agreed to be loaned by Douai Abbey Trust was a maximum of £20,000. The full amount was drawn down by Douai Abbey Parishes Trust during September 2021. The loan is interest free and repayable over a period of five years, the first repayment becoming due two years after the completion of the work on the hall. Repayments will be due annually and amount to £4,000 per annum. The amount receivable at 31 August 2022 was therefore £20,000 (see note 15).

Douai Abbey Trust 41

Notes to the accounts 31 August 2023

21 Related party transactions (continued)

During the year, total amounts of £51,950 (2022 – £51,272) were received from the Douai Abbey Parishes Trust via the Common Purse, which represents amounts receivable directly by members of the Community in their capacity as parish priests. Amounts receivable at the year end amounted to £16,565 (2022 – £37,626).

The salary and social security payments for the post of Douai Parish Administrator within the Douai Abbey Parishes Trust are processed through the charity’s payroll. £18,318 (2022 – £8,145) was recharged to the Douai Abbey Parishes Trust in respect of the cost of employment for this staff member and no amounts were outstanding at the year end.

During the year, the charity paid administrative costs of £3,270 (2022 – £nil) in relation to printing on behalf of Douai Abbey Parishes Trust. At the year end, £3,270 (2022 – £nil) remained outstanding.

The Douai Abbey Parishes Trust purchased a laptop at a cost of £1,500 (2022 – £nil) for one of its parish priests during the year. The charity reimbursed the full amount and there was no balance outstanding at the year end.

Other than the transactions above and the donations received by trustees disclosed in note 11 to these accounts, there were no other related party transactions during the year which require disclosure (2022 – none).

New Parish Hall at the parish of Our Lady & St Joseph, Alcester, partly funded by the charity’s loan to the Douai Abbey Parishes Trust.

Douai Abbey Trust 42