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2021-03-31-accounts

ROYAL NAVY (ROMAN CATHOLIC) TRUST

UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

Charity Number 242543

ROYAL NAVY (ROMAN CATHOLIC) TRUST

INDEX TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

----- Start of picture text -----
Members of the board and professional advisers Page 1
Trustees' annual report Pages 2 to 4
Independent examiner's report Page 5
Statement of financial activities Page 6
Balance sheet Page 7
Notes to the financial statements Page 8 to 11
----- End of picture text -----

ROYAL NAVY (ROMAN CATHOLIC) TRUST

Page 1

MEMBERS OF THE BOARD AND PROFESSIONAL ADVISERS

The Board of Trustees Father D Conroy QHC QCVS MA MMS IMS(Dip) RN
P Firth
Rear Admiral T Hodgson CB MBE
Rt Rev Bishop P Mason
R A Smith MBE, TD, DL, KSG - Chairman (resigned 16 July 2020)
Commodore N Tindal RN
Wing Commander C P Thorpe - Chairman (appointed 16 July 2020)
Principal Address Royal Navy Catholic Chaplaincy
Admiralty House North Wing (PP 13)
HM Naval Base
Portsmouth
Hampshire
PO1 3LR
Charity Registered Number 242543
Independent Examiner Mark Dickinson FCA
Wise & Co
Chartered Accountants
Wey Court West
Union Road
Farnham
Surrey
GU9 7PT
Bankers Royal Bank of Scotland
Holts Farnborough Branch
200 Fowler Avenue
Farnborough Business Park
Farnborough
Hampshire
GU14 7JP
Investment Manager BlackRock Investment Management (UK) Limited
PO Box 9036
Chelmsford
Essex
CM99 2XD

ROYAL NAVY (ROMAN CATHOLIC) TRUST

Page 2

TRUSTEES' ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2021

The trustees have the pleasure in presenting their report and the financial statements of the charity for the year ended 31 March 2021.

Legal Status

The Royal Navy (Roman Catholic) Trust was created by a Declaration of Trust dated 26 February 1958. The Governing document was amended by order of the Charity Commissioners on 5 August 2002.

The Royal Navy (Roman Catholic) Trust is a Registered Charity, charity number 242543.

Trustees Appointments and New Trustee Proceedings

The ex-officio trustees are appointed by virtue of their respective offices. Co-optative trustees are appointed by a resolution of the trustees passed at a special meeting.

The chairman of trustees contacts new ex-officio trustees and potential new lay trustees prior to attendance at their first trustees meeting, to tell them about the background and activities of the trust. All new trustees are also provided with a copy of the charity commission guide "The Essential Trustee: what you need to know".

Objects of the Trust

The objects of the trust are the advancement of the Roman Catholic Religion among members of the Royal Navy and the welfare of Roman Catholic members of Her Majesty's Royal Navy.

Connected Charities

The following Charities are connected to the Royal Navy (Roman Catholic) Trust.

Vicariate Headquarters Trust The Army Roman Catholic Trust
26 The Crescent St. Michael and St. George Parish Office
Farnborough Queens Avenue
Hampshire Aldershot
GU14 7AS Hampshire
GU11 2BY
Royal Air Force Roman Catholic The Roman Catholic Bishopric of the Forces (GB)
The Chaplaincy Centre Wellington House
RAF Odiham St Omer Barracks
Hook Aldershot
Hampshire Hampshire
RG29 1QT GU11 2BG

Investment Powers

Under the Trust Deed, the charity has the power to make any investment which the trustees see fit. BlackRock Investment Management (UK) Limited invest all of the funds into the Armed Forces Charities Growth and Income Fund.

ROYAL NAVY (ROMAN CATHOLIC) TRUST

Page 3

TRUSTEES' ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2021

Reserves

The trustees are resolved to ensure that income is expended upon the objects of the charity, taking one year with another. Reserves, which principally arise from the appreciation over time of the portfolio of investments, are resolved to be invested to procure a steady and rising income over time so as to ensure that the expenditure upon charitable objectives may be increased.

Achievements and Performance

Owing to the Coronavirus pandemic, many of the planned regular activities such as pilgrimages to Lourdes, Annual Naval Masses, Chaplains’ CPD and Conference, and Remembrance Weekend were either reduced considerably in scale or did not take place. Consequently, expenditure over the year was significantly less than budgeted. Support continued to be provided to the Bishopric of the Forces and with the employment of a Pastoral Assistant.

Financial Review

Investment income on quoted investments have increased in the year. The Sir Harold Hood Trust has continued to make a grant of £15,000. Extra grants for the Lourdes pilgrimages were not sought nor given as they were cancelled because of the restrictions associated with the pandemic. Expenditure on charitable activities has decreased in the year.

The trust's investments are managed by BlackRock Investment Management (UK) Limited and have been invested in the Armed Forces Charities Growth and Income Fund. Investment income has increased over the previous period and the market value of investments has increased.

Plans for Future Periods

Expenditure on the support of the Bishopric of the Forces, the Lourdes Pilgrimage, and all other regular activities will be continued subject to the lifting of pandemic restrictions.

General

The financial statements comply with current statutory requirements, the requirements of the Statement of Recommended Practice, and with the charity's governing document.

Funds

The Funds held are unrestricted and are held to further the objects of the Trust. These funds are available and are adequate to fulfil the obligations of the trust

Unrestricted funds include a designated fund for Chaplains' Post Operational Welfare.

ROYAL NAVY (ROMAN CATHOLIC) TRUST

Page 4

TRUSTEES' ANNUAL REPORT FOR THE YEAR ENDED 31 MARCH 2021

Public Benefit

The Trust facilitates the faith practice of Roman Catholic members of the Royal Navy, their families and those other Service personnel who wish to associate with them by providing for their participation in events which foster and develop their spiritual lives, enhance their sense of humanity and improve their sense of belonging and citizenship. It enables Chaplains to provide the best pastoral care and resources, and to engage people more deeply with the moral component of their military responsibilities. In addition, it supports the pastoral ministry of the Bishop of the Forces to those same people.

Recruiting to the Service – and thereby to benefiting from the Trust - is based on competence and character alone, and not determined by the Trust but by the Ministry of Defence. The Trust makes a point of supporting servicemen and -women affected by Operations. The Trust supports all Service personnel, Roman Catholic or not, who wish to be part of the outreach of the Roman Catholic community in the Royal Navy. Particular care is taken that those on lower incomes, typically those under training, are given additional financial support.

No private benefits are received by anyone.

The Trustees

The trustees who served the charity during the period were as follows:

Father D Conroy QHC QCVS MA MMS IMS(Dip) RN P Firth Rear Admiral T Hodgson CB MBE Rt Rev Bishop P Mason R A Smith MBE, TD, DL, KSG - Chairman (resigned 16 July 2020) Commodore N Tindal RN Wing Commander C P Thorpe - Chairman (appointed 16 July 2020)

Trustees' Responsibilities

The trustees are responsible for preparing the Trustees' Report and the financial statements 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 financial statements for each financial year which give a true and fair view of the charity's financial activities during the year and of its financial position at the end of the year. In preparing financial statements giving a true and fair view, the trustees should follow best practice and:

The trustees are responsible for keeping sufficient accounting records which disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. The trustees are responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Signed on behalf of the trustees

Father D. Conroy Approved by the trustees on 15 July 2021 Trustee

ROYAL NAVY (ROMAN CATHOLIC) TRUST

Page 5

REPORT OF THE INDEPENDENT EXAMINER UNDER SECTION 144 OF THE CHARITIES ACT 2011 TO THE TRUSTEES OF THE ROYAL NAVY (ROMAN CATHOLIC) TRUST

I report on the financial statements for the year ended 31 March 2021 as set out on pages 6 to 11.

The accounts have been prepared in accordance with Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standards applicable in the UK and Republic of Ireland (FRS 102) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice on 1 April 2005 which is referred to in the extant regulations but has been withdrawn.

Respective responsibilities of trustees and independent examiner

The charity’s trustees are responsible for the preparation of the accounts.

The charity's trustees consider that an audit is not required for this year (under section 144(2) of the Charities Act 2011 (the 2011 Act) and that an independent examination is needed.

It is my responsibility to

ꞏ examine the accounts under section 145 of the 2011 Act;

ꞏ to follow the procedures laid down in the General Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act; and ꞏ to state whether particular matters have come to my attention.

Basis of independent examiner's statement

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

Independent Examiner's Statement

In the course of my examination, no matter has come to my attention:

  1. which gives me reasonable cause to believe that, in any material respect, the requirement:

ꞏ to keep proper accounting records in accordance with section 130 of the 2011 Act; and

ꞏ to prepare accounts which accord with the accounting records and to comply with the accounting requirements of the 2011 Act have not been met; or

  1. to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached.

Mark Dickinson FCA Wise & Co. Chartered Accountants Wey Court West Union Road Farnham Surrey GU9 7PT

Dated : 15 July 2021

ROYAL NAVY (ROMAN CATHOLIC) TRUST

Page 6

STATEMENT OF FINANCIAL ACTIVITIES

FOR THE YEAR ENDED 31 MARCH 2021

Notes
INCOME AND ENDOWMENTS
Investment income
2
General donations and legacies
3
Charitable activities
3
TOTAL INCOME
EXPENDITURE
Charitable Activities
Grants paid
4
Other charitable activities
4
TOTAL EXPENDITURE
NET INCOME/EXPENDITURE AND NET
MOVEMENT IN FUNDS BEFORE GAINS
AND LOSSES ON INVESTMENTS
Net Gains/(losses) on Investments
7
NET MOVEMENT IN FUNDS BEFORE
TRANSFERS
Transfers
General unrestricted
Designated unrestricted
NET MOVEMENT IN FUNDS
RECONCILIATION OF FUNDS
FUNDS AT 1 APRIL 2020
FUNDS AT 31 MARCH 2021		 2021
2020
Total
Total
Funds
Funds
£
£
36,852
33,654
1,559
162,021
15,000
21,900
53,411
217,576
17,883
14,831
16,720
36,901
34,603
51,733
34,603
51,733
18,808
165,843
193,522
(88,073)
212,330
77,770
(1,000)
(1,000)
1,000
1,000
212,330
77,770
975,263
897,493
1,187,593
975,263

All movements are in unrestricted funds.

The statement of financial activities includes all gains and losses recognised in the year.

All incoming resources and resources expended derive from continuing activities.

ROYAL NAVY (ROMAN CATHOLIC) TRUST

Page 7

BALANCE SHEET FOR THE YEAR ENDED 31 MARCH 2021

Notes
FIXED ASSETS
Investments
7
CURRENT ASSETS
Debtors
8
Cash at bank
CREDITORS: Amounts falling due within
one year
9
NET CURRENT ASSETS
NET ASSETS
REPRESENTED BY:
FUNDS
Unrestricted:
12
Designated
General
TOTAL FUNDS		 £
£
£
£
1,083,247
889,725
1,083,247
889,725
2,904
2,250
103,152
84,998
106,056
87,248
(1,710)
(1,710)
(1,710)
(1,710)
104,346
85,538
1,187,593
975,263
4,767
3,785
1,182,826
971,478
1,187,593
975,263
2021
2020		 £
£
£
£
1,083,247
889,725
1,083,247
889,725
2,904
2,250
103,152
84,998
106,056
87,248
(1,710)
(1,710)
(1,710)
(1,710)
104,346
85,538
1,187,593
975,263
4,767
3,785
1,182,826
971,478
1,187,593
975,263
2021
2020
975,263
3,785
971,478
975,263

These financial statements were approved by the trustees on 15 July 2021 and are signed on their behalf by:

Wing Commander C. P. Thorpe (Chairman) Chairman

ROYAL NAVY (ROMAN CATHOLIC) TRUST

Page 8

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

1 Accounting Policies

Basis of accounting

The accounts have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant notes to these accounts. The financial statements have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.

The accounts have been prepared to give a 'true and fair' view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a 'true and fair' view. This departure has involved following the Charities SORP (FRS 102) published on 16 July 2014 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.

The trust constitutes a public benefit entity as defined by FRS 102.

Incoming Resources

General donations, collections, grants and bank interest are accounted for on a receivable basis.

Legacies are accounted for when they have been notified to the trust and it is probable it will be received.

Resources Expended

Charitable activities costs include grants made and governance costs as shown in note 4.

Investments

Investments are managed under a discretionary agreements by BlackRock Investment Management (UK) Limited.

Investments are accounted for by reference to the bargain date shown by the contract note issued in respect of their purchase or disposal.

Investments are a form of basic financial instrument and are initially recorded at their transaction value and subsequently measured at their fair value as at the balance sheet date using the bid price. The statement of financial activities includes the net gains and losses arising on revaluations and disposals throughout the year.

The Trust does not acquire put options, derivatives or other complex financial instruments.

Investment income

Income arising from investments is included by reference to the normal date of payment of dividends or interest on that investment. Provision is not made in the accounts for dividends to be received in the next accounting period on investments declared ex-dividend prior to 31st March 2020.

Taxation

As a qualifying charity, the trust is not liable to UK taxation.

Debtors

Short term debtors are measured at transaction price, less any impairment.

Creditors

Short term creditors are measured at the transaction date.

ROYAL NAVY (ROMAN CATHOLIC) TRUST

Page 9

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

2
Investment Income
UK quoted investments
Bank interest receivable
3
Income - Charitable activities
Grants Received
The Royal Navy and Royal Marines Charity
Sir Harold Hood Trust
General Donations and Legacies
Monsignor Paul Donovan Legacy
Donations
4
Expenditure - Charitable activities
Grants Paid
Bishopric of the Forces
Cathedral Dean's Salary Contribution
Naval Chaplaincy Historical Research
Other Charitable Activities
Chaplains CPD / Conference
Annual Naval Mass
Lourdes Military Pilgrimage
*
PRCDTR Portsmouth Cathedral
RN Chaplains Association
Chaplains Welfare
Pastoral Assistant Salary and Expenses
Chaplains Recruiting
PRCC Expenses
Publications
HCPT
Sundry
Seminarian Placements
Remembrance Weekend
Accountancy (see note 5)
RN RC Chaplaincy
Travel, Subsistence and Accommodation
Vicar General Expenses RN Share
Sycamore Catechesis Resources
Bishopric Website RN Share
Military Assocation of Our Lady of Victories Rosary Beads
Military Assocation of Our Lady of Victories Donation Towards Publicity Material
Knight of Saint Gregory Insignia for Pastoral Assistant		 2021
2020
£
£
36,816
33,442
36
212
36,852
33,654
2021
2020
£
£
-
6,900
15,000
15,000
15,000
21,900
2021
2020
£
£
-
157,572
1,559
4,449
1,559
162,021
2021
2020
£
£
16,358
14,365
-
467
1,525
-
17,883
14,831
-
234
-
331
1,560
9,195
-
100
100
120
18
726
10,000
10,366
-
632
-
66
125
66
-
9,000
27
-
-
1,086
-
414
2,988
3,384
-
257
39
858
-
66
250
-
245
-
500
-
500
-
368
-
16,720
36,901

*Flight deposit only in 2021

ROYAL NAVY (ROMAN CATHOLIC) TRUST

Page 10

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

4 Expenditure - Charitable activities (cont.)

Paid out of designated fund
Paid out of general unrestricted fund
5
Accountancy
Accountancy and Secretarial
Independent Examiner Fees		 18
726
16,702
36,175
16,720
36,901
2021
2020
£
£
2,188
2,584
800
800
2,988
3,384

6 Staff Costs & Trustees' Remuneration and Emoluments

During the year there was one part time employee (note 4)

No employee earned £60,000 per annum or more (2020: none )

None of the Trustees received any remuneration in respect to their services as a trustee during the year (2020:None) During the year one trustee was reimbursed a total of £39 (2020: one trustee for £384) of travel and subsistence expenses incurred for services provided to the charity.

7
Investments
Listed Investments
Armed Forces Charities Growth and Income Fund
Movement in Market Value
Market value at 1 April 2020
Acquisitions at cost
Disposals at opening book value
Net (Losses)/Gains on revaluations in the year ended 31 March 2021
Market value at 31 March 2021
Historical cost at 31 March 2021
8
Analysis of current assets
Income Tax Recoverable - Gift Aid
Other Debtors
All current assets including cash at bank balances relate to unrestricted funds.		 2021
2020
£
£
1,083,247
889,725
1,083,247
889,725
889,725
827,798
-
150,000
-
-
193,522
(88,073)
1,083,247
889,725
811,948
811,948
2021
2020
£
£
2404
2,250
500
-
2,904
2,250

ROYAL NAVY (ROMAN CATHOLIC) TRUST

Page 11

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

9
Analysis of current liabilities
Accruals
All creditors relate to unrestricted funds.		 2021
2020
£
£
1,710
1,710
1,710
1,710

10 Vicariate Headquarters Trust

In the past, the Royal Navy (Roman Catholic) Trust has contributed funds to the Vicariate Headquarters Trust for the purchase of property. The Trustees of the Vicariate Headquarters Trust have confirmed that in the event of the Trust being wound up, they would return surplus funds to the contributing parties. In the eventuality 5.59% of any surplus would be returned to the Royal Navy (Roman Catholic) Trust.

11 Related Party Transactions

A grant was paid during the year to the Roman Catholic Bishopric of the Forces (GB) of £16,358 (2020 £14,365). The charities are connected by virtue of having some Trustees in common.

12 Analysis of net assets between funds

Fund balances at 31 March are represented by:
Investments
Net Current Assets
Total funds (Unrestricted)
Split of unrestricted funds
Designated
General		 Total Funds
Total Funds
2021
2020
£
£
1,083,247
889,725
104,346
85,538
1,187,593
975,263
1,187,593
975,263
4,767
3,785
1,182,826
971,478
1,187,593
975,263

A designated fund was set up by Trustees for Chaplains' Post Operational Welfare, the balance on this fund at the year end was £4,767.