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2021-12-31-accounts

THE TRUSTEES OF THE SERVITE FRIARS, PROVINCE OF THE ISLES (A Registered Charity)

ACCOUNTS

FOR THE YEAR ENDED 31 DECEMBER 2021

Registered Charity Number: 249148

THE TRUSTEES OF THE SERVITE FRIARS, PROVINCE OF THE ISLES

REPORT OF THE TRUSTEES

FOR THE YEAR ENDED 31 DECEMBER 2021

Trust property held in connection with the Brothers Servants of the Blessed Virgin, Servite Fathers

REFERENCE AND ADMINISTRATIVE DETAILS

Trustees Father Christopher O’Brien OSM
Father Patrick Ryall OSM
Father Colm McGlynn OSM
Father Vincent Coyne OSM
Father Liam Tracey OSM (appointed September 2021)
Father Allan Satur OSM (appointed September 2021)
Father Paul Addison
Father Peter Conniffe (resigned September 2021)
Prior Provincial (Chair) Father Colm McGlynn OSM
Provincial Treasurer Father Christopher O’Brien OSM
Principal Address St Mary’s Priory
264 Fulham Road
London SW10 9EL
Telephone 020 7352 6965
Website www.servitefriars.org
Charity Registration Number 249148
Auditors Haysmacintyre LLP
10 Queen Street Place
London EC4R 1AG
Bankers The Royal Bank of Scotland
Relationship Management Team
6thFloor
1Princes Street
London EC2R 8BP
Investment Managers Epworth Investment Management Limited
9 Bonhill Street
London EC2A 4PE
Solicitors Carter Lemon Camerons LLP
10 Aldersgate Street
London EC1A 4HJ
Property Advisers Gerald Eve LLP
72 Welbeck Street
London W1G 0AY

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THE TRUSTEES OF THE SERVITE FRIARS, PROVINCE OF THE ISLES

REPORT OF THE TRUSTEES (continued)

FOR THE YEAR ENDED 31 DECEMBER 2021

The first Trust deed of the Servite Order was registered with the Commissioners in 1878 under the number 249138. Then on 4 April 1935 another deed was drawn up under the title The Brothers Servants of the Blessed Virgin, with our present no 249148. Carrying forward this tradition of service the Trustees now present their report for the financial year ending the 31 December 2021.

INTRODUCTION

The Brothers Servants of the Blessed Virgin more often known as the Servite Friars live in two communities, one in London and the other in Salford. In both locations they are responsible for the pastoral care of a Church and the surrounding Catholic community. Another friar, living alone, has similar responsibilities for a parish church in Bath.

The Servite Friars have offered pastoral care and support in London since 1864 although the origins of the Order date from the thirteenth century.

During 2021 our long-standing ministry and pastoral care recovered somewhat after the lock-downs and restrictions of the previous year. Our tradition, derives from the Servite Constitutions and Province of the Isles Servite Directory together with our Trust Deed dating back to 1935.

The friars in both the London and Salford parishes are Trustees and responsible for a Voluntary Aided School. The Servite Primary School in London has 210 pupils while St Philips in Salford has 320 pupils and the Friars are Foundation Governors to both.

In accordance with a well-founded tradition support was given to our General Council in Rome and support of the Pontifical University, the Marianum. This international service is reviewed every six years and a new General Council elected.

During normal times the three parishes in London, Salford and Bath would have a weekly footfall in excess of 2,000. Each Mass would have an attendance of between 100 and 400. On certain days during the year this figure would be even greater marking the highlights of the Christian calendar such as Christmas and Easter or other special celebrations such as First Communions and Confirmations.

Also, during the year there would be a variety of other celebrations such as Baptisms, Marriages and Funerals. These would all draw a congregation from far and wide and in the case of marriages and funerals have to be arranged in conjunction with state registrars.

Mission

The Servite Order in the UK is aiming to use their resources for religious, educational and other charitable purposes in connection with the Roman Catholic Church (Trust Deed 1935).

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THE TRUSTEES OF THE SERVITE FRIARS, PROVINCE OF THE ISLES

REPORT OF THE TRUSTEES (continued)

FOR THE YEAR ENDED 31 DECEMBER 2021

GOVERNANCE, STRUCTURE AND MANAGEMENT

Since its inception the Servite Order have operated according to a rule of Life, the Constitutions, and these have the approval of the Catholic Church and are in conformity with canon Law. It goes without saying these have been upgraded and amended periodically and the last time the Constitutions were amended was in September 2015. The local friars also have a Directory which adjusts the rules to local circumstances and in our case in line with UK charity law. The Directory was approved and updated in 2017.

The Province of the Isles has a leadership team consisting of the Prior Provincial and four Provincial Councillors. Each year there is a Provincial Chapter when all the friars (members of the Charity) meet to discuss policy and procedures. This can mandate the Provincial and his Council to implement proposals and directives. It can also take the form of in-service training. The Provincial Chapter approves of local by-laws known as the Directory. This document takes cognisance of Church Law and appropriate Civil law. Every fourth year a Provincial Chapter of Elections takes place, when elections and appointment to the various offices are effected. It is during this gathering that the AGM of the charity is held. Because of the pandemic the Provincial Chapter was postponed until September 2021, and likewise the AGM. The Provincial Elect was also confirmed in Office.

Between Provincial Chapters, the responsibility for the direction of the Province (the Charity) rests with the Provincial and his Council (cf Deed of Variation 21 Sep 1971). Where possible the Trustees are drawn from the Provincial Council. All trustees are members of the Order and they have a detailed knowledge of the work of the Charity and its structure; even so when appointed new trustees are reminded of the Charity Commission Guidance and are given a refresher course on the principal responsibilities of the charity its resources and aims and the relationship with our professional advisors; solicitors, auditors, stockbrokers and property advisers.

Risk Management

In line with the requirement of trustees the Charity has made an assessment of risk and identified the following areas: Governance

Operational Financial Reputational Laws, regulations, external and environment

Governance The Province of the Isles has twenty-one friars and their presence in England and Ireland is reported through to the three relevant civil authorities and registrations. Each year all the friars gather for a Provincial Chapter and this is when the AGM of the English Charity is held. All members continued to receive copies of the minutes.

Operational The responsibility for buildings such as the Priories is the direct responsibility of the Prior Provincial and the Provincial Council and their delegates; the local Priors. The well-being of the Parish churches and Parish properties are with the appointed parish team, together with their lay committees under the direction of the Parish Priest who is appointed by the Provincial Council. The worst possible interruption would be severe damage to one of the Churches. The safety net would be to use the nearby school halls on a temporary basis.

Financial The overall management of financial policy lies with the Provincial Finance Board who regulate the local centres of operation, the reserves policy is under review with professional advisers and records are kept of these meetings and conveyed to the Trustees at each of their meetings.

During 2021 these meetings were mostly conducted via the zoom platform.

The main source of our week to week income are the Church and parochial donations. After the lock down the numbers are gradually picking up again but have yet to reach the pre-pandemic figures.

A high priority is our Pension and Welfare Cover.

The care of the elderly is an enduring concern and the fund has had to cope with 2 of the friars being placed in care homes. Over the past five years the pension investment increased by 160% while the calls on the fund increased by 226%.

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THE TRUSTEES OF THE SERVITE FRIARS, PROVINCE OF THE ISLES

REPORT OF THE TRUSTEES (continued)

FOR THE YEAR ENDED 31 DECEMBER 2021

Laws, regulations, external and environment. This section looks at the effects of government policies, the consequences of non-compliance with laws and regulations. The Provincial Treasurer is a member of the Association of Provincial Bursars, which organises the annual conference, and is thus able to keep abreast of the developments in civil, charity and church law. The APB Conference for 2021 was able to resume as a face to face encounter.

Methods of holding personal information have been looked at afresh in the light of the GDPR legislation. Volunteers and contributors to the parishes are being asked to sign a new form of acceptance that their details are held on file for this purpose.

Having assessed the major risks to which the charity is exposed, the trustees believe that by monitoring reserve levels, by ensuring controls exist over key financial systems, and by examining the operations and business risks faced by the charity, they have established effective systems to mitigate those risks. The Risk assessment Policy was revised in March 2022.

Protection of Children and vulnerable Adults . Every trustee meeting would have a check on the procedures being followed in the friar’s communities and among the parishioners and other lay helpers.

We continued to engage a professional organisation Taye Training to help us with ongoing oversight and training. The Trustees have agreed to join with the rest of the Catholic Church in the new arrangements being established in the light of the IICSA report.

THE PROVINCIAL AND COUNCIL (TRUSTEES)

Besides the regular Council meetings, the Prior Provincial together with the Provincial Secretary are responsible for communications both within the Province and with our Generalate in Rome as well as other Priors Provincial. On a dayto-day basis this is by way of emails and online newsletters.

English continues to be a much-used language through-out the Order and a variety of tasks involving translation work come to the Province. The Provincial Secretary continues to do sterling work in this department.

The Trustees

Fr Colm McGlynn Prior Provincial/Chair of Trustees

Fr Colm joined the Order in 1980. Colm has served in all parts of the Province, Dublin, the North of Ireland, Scotland and England and he has served as Parish Priest in Dublin and Dundee. He has also had experience working with the Order in the Philippines. Colm served for several terms on the Provincial Council. He was awarded a B A in Humanities from Dublin City University in 2005. He served as Assistant Provincial and is mow in his second term as Provincial.

Fr Liam Tracey Assistant Provincial

Liam joined the Servites in 1980.He has an STB from Dublin and a Doctorate in Liturgy from the Anselmnianum, Rome 1996. For 20 years he was the Liturgy Professor in Maynooth University. He also acted as Conventual Prior on several occasions. In September 2021 he was elected as Assistant Provincial and member of the Provincial Council.

Fr Paul Addison Provincial Secretary .

Fr Paul joined the Servite Order in August 1958. After studies he had two terms serving on the central administration in Rome. Fr Paul has been responsible for the education and formation of student friars. As part of this ministry he has given courses and lectures in Italy, the USA, France, India and Uganda. He had a first period as Prior Provincial (chair of the charity) in 1991-1997. During that time he also served on the Board of the Servite Houses (housing association) now known as Optivo. He continues to serve on the Council as Provincial Secretary.

Fr Christopher O’Brien, Provincial Treasurer

Fr Christopher joined the Servite Order in 1965. In his early years he was engaged in teaching in both ordinary and special schools. From 1982-1996 he was engaged in educating Servites in Dublin, Oxford, Lesotho and Normandy in France. He has been a member of the Provincial Finance Council since 1980 but only assumed the Office of Provincial Treasurer in the year 2000. Since 2007 he has been a member of the General Council of Administration which sets the budget for the General Council. Besides financing the Generalate the Council oversees the administration of the Servite University in Rome; the Marianum.

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THE TRUSTEES OF THE SERVITE FRIARS, PROVINCE OF THE ISLES

REPORT OF THE TRUSTEES (continued)

FOR THE YEAR ENDED 31 DECEMBER 2021

Fr Allan Satur

Allan entered the Servite in 1994. He studied in Cebu and Rome and began his pastoral ministry in the Philippines. He joined the London community in 2012 and was awarded a Masters in Pastoral Theology in 2018. Since October 2021 he was appointed Parish Priest in London after having been elected to the Provincial Council and Trustees in September of that year.

Fr Patrick Ryall

Fr Patrick joined the Order in 1963. He spent 12 years in the London Parish 9 of them as Parish Priest. He has also served as a student master; 9 years in Oxford and 3 in Rome. In 1997 he again served as Parish Priest in London before serving as the first Prior Provincial of the newly formed Province of the Isles from 2000-2009. He also served on the board of Servite Houses now known as Optivo. From 2010-2021 he was once more elected Prior and Parish Priest of the London Community.

Fr Vincent Coyne

Fr Vincent joined the Servite Order in September 1959. After upgrading his degree with a Certificate of Education, he taught at St Peter’s High School, Manchester from 1973-1979. From 1985 -1991 he served as Prior Provincial and chair of the Trust. Since 1997 he has again been involved in Parish ministry and is at present Prior and Parish priest in the Salford Parish.

Public benefit

In setting the charity’s objectives, the Trustees have given due consideration to the Charity Commission’s guidance on public benefit. These requirements are addressed in this report.

Statement of Trustees Responsibilities

The Trustees are responsible for preparing the Trustees’ Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (SORP).

The law applicable to charities in England and Wales requires the Trustees of the charity to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the net income or expenditure of the charity for that period. In preparing those financial statements, the trustees are required to:

The Trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the Charity and to enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and reports) Regulations 2008 and with the 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.

Activities, Specific Objectivities and Relevant Policies

In accordance with a long-standing tradition the Province has continued to contribute and support the international Servite Generalate based in Rome . During 2021 over £46,000 was sent through to Rome of which £26,000 was earmarked to support the Marianum , the Servite University in Rome. These sums are agreed and budgeted for at the General Council of Administration during the spring of each year, and then a full detailed report is given at the Council of Administration the following spring. The Treasurer of the Province is member of this General Council of Administration. The Council of Administration meeting for 2021 was held online.

The Benburb Library, Museum and Provincial Archive

This facility while existing within the Northern Ireland Trust (Order of Mary Servite Trust) caters for all three charitable trusts and so Provincial funds continue to offer support. In particular the London based trust provided £63,000 of the Service Level Agreement (£75,000) to cover the expenses of the Library, Archives and the related staff. The Community had also taken on some expensive contracts, when the previous Bursar was sick and in order help the Priory achieve a degree of balance the charity offered £75,000 to terminate the contracts.

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THE TRUSTEES OF THE SERVITE FRIARS, PROVINCE OF THE ISLES

REPORT OF THE TRUSTEES (continued)

FOR THE YEAR ENDED 31 DECEMBER 2021

Servite Missions

Our Servite Communities in England along with the support of the Parishes have continued to support other Servite friars working in more challenging parts of the world.

2021 saw our continued support for the student programme in the Philippines £15,024. At the end of the year the Filipino Provincial bursar gave a full report saying how the money was split three ways supporting the tuition fees of the Philosophy students, payment of the fees of the students studying at the Marianum in Rome and the last part towards the upkeep of the students in the student community.

The Filipino students outside the Marianum College, who we help to support

Also in the Philippines there was a devastating cyclone in December 2020 and the London Parish was able to contribute £1,148 in aid.

We continued to support the friars in Mozambique who are offering support and a safe environment to the youth of Matola in an after school hours Project. In 2021 we donated £13,000.

Some of the students studying after school

A bag of maize being distributed to the neighbours

CAFOD the overseas aid charity appealed to for special support in the light of many parishes being unable to continue with their usual level of support. Our Charity contributed £11,788.

With the pandemic still raging across the world we were able to reach out in smaller ways to appeals from India, Haiti, the DR of Congo and Uganda as well as a tree planting scheme in Africa. All together this aid amounted to £3,911.

With the effects of Covid and the lock down still prevalent at home we continued to support home charities to the tune of £3,096, almost half of which was channelled through the diocesan charities of Caritas in diocese of Salford and Westminster both of which are focused on families in difficulty.

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THE TRUSTEES OF THE SERVITE FRIARS, PROVINCE OF THE ISLES

REPORT OF THE TRUSTEES (continued)

FOR THE YEAR ENDED 31 DECEMBER 2021

Volunteers

Area No of
Volunteers		 Hours
Volunteered
Preparing and celebrating Services 6 5,100
Pastoral Planning, teaching/meetings
study		 5 2,550
Home visits of the sick 5 1,100
Administration 7 4,800
One to one direction, guidance etc 5 1,150
Hospital visits and Care of the elderly 5 510
Communication 2 1,350
School, Governors, teaching etc 3 325

Throughout the year the friars give their time and energy pursuing the goals of the Charity. They either receive no specific financial reward or else pay their earnings or stipends into the common fund.

Most of the friars are past retiring age but continue to help out and serve according to their ability and fitness. These friars have served the Charity for the whole of their adult life.

Some of the members are heavily involved in the work of administering the Charity and without their service the charity would not be able to function effectively or according to the norms of the Charity Commission.

If this service was valued at the rate of £200 a day this would amount to over £482,000 of service to the local community.

Both the London and Salford Parish Communities can boast a large group of lay volunteers who give their time, expertise and energy on a regular basis. The Covid restrictions and the lock-downs disrupted the regular pattern of this volunteering and the number that were available to each parish. Last year 2021 saw the emergence of a slimmed down but more regular pattern beginning to emerge.

The London Parish identified 96 regular volunteers during 2021. These included cleaners, flower arrangers and maintenance people along with counters and others helping with administration. Alongside these are those involved in services themselves which include Choir members, Altar servers, Readers and ministers of the Eucharist. Outside the services and worship times there are catechists who prepare parents, children and young people for the sacraments; plus a faithful few who visit the housebound to bring Holy Communion or help with household chores. Over the year there was a total of 5,605 hours donated to keep the charity in touch and operational.

The Kersal Parish were able to identify 99 regular volunteers. These would have performed many of the same tasks as those connected with the London Parish. In addition, in Kersal there are four regular volunteers who help to keep the garden in good shape during the spring and summer months. There is also a volunteer cook to help with the shopping and preparing of meals. Again when aggregated together this made a total of 6,749 voluntary hours service in the course of the year. Totalling the two parishes this comes to 12,354 voluntary hours over the course of 2021.

Our Lady of Dolours London Parish and St Marys Priory

After the privations of the lock-down in 2020 the church was again open for prayer and worship on every day of the year. Having said that precautions were still in place and needed careful stewarding and monitoring. Baptisms and funerals could once more be celebrated by bringing groups and families together although masks and hand cleaning continued to be the order of the day to keep everyone safe.

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THE TRUSTEES OF THE SERVITE FRIARS, PROVINCE OF THE ISLES

REPORT OF THE TRUSTEES (continued)

FOR THE YEAR ENDED 31 DECEMBER 2021

It was heartening to see some of the older parishioners, the over seventies and over eighties to be among the first to begin regular attendance once the restrictions began relaxing.

The monthly service for cancer sufferers and their families, which was suspended during the lock-down, returned to its usual place each month, and was appreciated by the disparate group that gathers from across the diocese and occasionally from further afield.

One of the friars baptised as a baby in 1991 with the name of Carlo Acutis. Although born here in London his parents moved back to Milan before the end of the year and Carlo grow up there. In 2006 he was diagnosed with an aggressive form of leukaemia from which he died that autumn. It would appear that he displayed extraordinary faith and charity throughout his short life and in 2021 he was proclaimed Blessed by the Catholic Church. As his extraordinary life is becoming better known there are an increasing number of ‘pilgrims’ coming to visit the church and in particular the baptistry to seek inspiration and blessings.

The sequence of lockdowns followed by restricted opening of the church; followed by renewed restrictions and then further relaxation, enabled the parish to have a better scheduling of Sunday Services and allowing better changeover time between the different groups.

In December 2021 the Servite Primary School, for whom we are Foundation Governors, was awarded outstanding by the Ofsted inspectors. An extraordinary achievement after about a week’s notice.

Our Lady of Dolours, Salford and Servite Priory

The restrictions due to Covid affected attendance throughout the year but fortunately were eased by the end of the year so that all who were willing and able could attend all the Christmas celebrations with all the attendant flowers, decorations, music and choirs.

The loaves and fishes, a Diocesan charity in Salford, continued to be well supported by the parish, but the request was made that this support should be in the form of monetary gifts rather than foodstuffs. Accordingly, a separate fund was set-up and delivered quickly to the appropriate centre in Salford. Over the year the parish delivered £1,100 to the Charity.

The Kersal parish has a dedicated group of 11 volunteers who week by week reach out to the sick and housebound. Each of them spends at least an hour each week visiting one or two of the sickest people in the parish. This is prayerful support, but also keeps them in touch with the news and social events of the parish community.

2021 also marked the moment for some major work on the church roof. The tiles are a special shape, similar to those found in Mediterranean countries, and so to replace many of them at the lower levels that had been cracked or broken a special firing was needed. This also involved some internal work to repair the damp patches and plaster work that had developed as a result of the problems with the roof. The total bill came to £39,750.

The Management of Property

The discount offered to Petra’s Place continued throughout this year. A discount of 50% on the monthly rent was agreed to by the Trustees as Petra’s Foundation continued to recover from the pandemic. It is hoped that full rent may resume at the rent review in May 2022.

At the end of the year we received word that the CNWL NHS trust were looking for an early closure of their lease which was due to expire at the end of September 2022.

FINANCIAL REVIEW

Income in the year amounted to £1,009,759 (2020: £919,347). Expenditure also increased to £845,165 (2020: £773,716). The income from the legacy mentioned in last year’s report continued to be realised with another tranche paid through during 2021. After careful consideration the Trustees agreed to award an increased subsidy to the Northern Ireland Charity which had made great strides in rewriting its Trust document and putting its finances on a much sounder footing.

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THE TRUSTEES OF THE SERVITE FRIARS, PROVINCE OF THE ISLES

REPORT OF THE TRUSTEES (continued)

FOR THE YEAR ENDED 31 DECEMBER 2021

Reserves Policy

During 2021 our portfolios increased by a very healthy 16%. This was a combination of the recovery in the market and the injection of funds as a result of a benefactor who died in 2020. The charity’s reserves stood at £8.9m at the year-end of which £2.5m is tied up in fixed assets, which are required for the charity’s continuing activities. A further £2.85m is tied up in investment property. After other designations, the charity’s general funds amount to £765k which represents just under one year’s expenditure. The trustees consider this to be a reasonable but not excessive level of reserves required for the charity’s ongoing requirements.

The Servite Student Trust Fund is a restricted Fund invested through the generosity of two donors. The principal donor stipulated that the interest should be used for the education of Servite Students. It was a condition of the bequest that 40% should be in stocks and bonds and 60% in equities and the dividends and income used exclusively to fund the education of Servite students. It is presently be used for our own students 47% and international Servite students 53%.

The General Fund is a contingency fund to underpin the central administration of the Charity and ensure continuity in the event of income variation. It is largely the result of some benefactors and fund raising in the early and middle part of the 20[th] century. It comprises 15% of the total portfolio. Ideally it should be stronger to help fund lay assistants who will be needed to perform the duties undertaken by the aging friars.

The Retirement and Welfare Fund continues to play a pivotal role in the charity’s finances as two friars are now permanently in care homes in the North of Ireland. This fund received a much-needed boost from the generosity of a deceased parishioner. Over 17 years the support for each of the elderly has trebled to average of £620 per month for each friar. This payment is made to the community fund in which the friar resides.

The Property Fund was realised at the sale of one of the Charity’s properties and the fund is used to maintain the other properties in good repair. In 2012 this fund stood at £442k and was run right back to £9k when buying back the 264 frontage. It is now being built up ready for the next realignment. At end of 2021 it had reached £258k.

The St Mary’s Priory Fund is a contingency for the oldest and most complex of the Charity’s properties at Fulham Road in London.

The Church Restoration Fund was set up as a separate charity in the 1980s to raise funds for the repair and maintenance of the fabric of Our Lady of Dolours Church, a grade II listed building. At beginning of 2016 the charity was dissolved and the remaining funds becoming a Restricted fund within the main charity. By the end of 2021 it had reached £125k.

The Special Projects Fund This fund was accumulated from a percentage of recent gifts and bequests. The fund is used to respond to appeals for aid from Servites in other parts of the world or other related charities and good causes and so safeguards ordinary income streams.

Investment Strategy

A new investment policy was worked out towards the end of 2021 and received approval from the Trustees in January 2022.

The Provincial Finance Council will take the advice of qualified financial experts, the respective brokers in each of the three Investments, but also through membership of the Church Investors Group, and the Association of Provincial Bursars in the UK and Ireland.

Environmental, social and governance factors are core to our investment strategy and should be analysed and fully integrated within the investment process. This includes active engagement, participation in voting and helping to promote best practice in each of these areas.

The trust precludes investment in any companies that derives more than 10% of their revenue from tobacco, gambling, pornography, or armaments.

The Finance Council are requested to look into the moral status and operating methods of the different companies to ascertain that they are broadly in line with our Servite and Christian ethos. We are totally committed to the protection of human life from conception to death, therefore, special care needs to be taken to protect human life, even in the womb. This should be borne in mind when investing in pharmaceuticals or medical research.

It is also requested that a company’s international record is monitored, especially where it has dealings with countries where UN recognised human rights are severely restricted. A failure in this area would be tantamount to condoning and

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THE TRUSTEES OFTHE SERVITE YRIARS PROVINCE OFTHE ISLLS REPORT OFTHE TRUSTEES (CODti#ued) FOR THE YEAR ENDED 31 DECEMBER 2021 Because oflhe uowncy of thepMs8nt17h)fflertCwa￿es must carefulfy as to thelr1rnnspa￿ncY in disclosing theircart>on thlpnrpt. Ihwrplans to de(xe&s¥ til. and the sustainabilify and lair8nploynwrfinvolved in their suWyliros. It is envisaged Ihat allport1(￿ h8vo Cart￿ by ￿25. Impactinv&sling ispart ofouroverall stsxt8gy. Itkn us to nwe ch3sety to tyurchantable otyeds andpromote a Investm8nt. FUTURE PLANS Order of Mry SeYvi¢e Trnjt As indicate abov¢thc reserv&8 itnproved by 16%durin82021 butwith the aging ofsomeofth¢ friarstht¥eisstill theprospcct that certain roles and rc5ponsibilities will have to beoutsouT¢edand raisesth¢ question of whetherwecan cov¢r the s￿ary of a lay replacement and afford change into the futur¢. The past thre¢ years have seen us recruit a sthdeni who has now ciwnpleted ttvo years of acaknic studi¢s and is ready for his next step in spiritual fomiation. In November 2020 a youn8 st￿lte pri<￿ from Uganda 8aine4J sponsorship ￿ live aThJ WO￿ with the community tn London And there is now ¢hc prospe¢t of a s¢cond U8•th pri¢4 friar coming to join the Kersal community. 2023 will maTk thecentenary ofthe Servite Friars b¢ingtheuJstodians of the Kersal Parithim behalfof the Sa]ford Diocese. Already plans 8r¢ being drnwn-up to ¢¢lebrnte this landmark ¢v¢nt. AudltOTS A re501ution proposin8 the re-appointment of Iwsmacinryye Is auditors to the ¢iwity will be wjt to the annual general meetin8. Approved by the Trustees on oy¥022 and Sign￿ on their t%haif by.. Fr Paul Addis n OSM ( Thistee) Fr Chris r O'Brien OSM (TnLStee) io

INDEPENDENT AUDITORS’ REPORT TO THE TRUSTEES OF

THE SERVITE FRIARS, PROVINCE OF THE ISLES

Opinion

We have audited the financial statements of The Servite Friars, Province of the Isles for the year ended 31 December 2021 which comprise the Balance Sheet, Statement of Financial Activities, Statement of cash Flows and notes to the financial statements, including a summary of significant accounting policies. 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 financial statements:

Basis for opinion

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder. We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements 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 financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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

Other information

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

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the 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 financial statements 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 (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:

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INDEPENDENT AUDITORS’ REPORT TO THE TRUSTEES OF

THE SERVITE FRIARS, PROVINCE OF THE ISLES (continued)

Responsibilities of trustees for the financial statements

As explained more fully in the trustees’ responsibilities statement set out on page 5, the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Based on our understanding of the charity and the environment in which it operates, we identified that the principal risks of non-compliance with laws and regulations related to compliance with Canon law, employment law and health and safety regulations, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as Canon Law, the Charities Act 2011, The Statement of Recommended Practice for Charities (SORP 2015), FRS102 and payroll taxes.

We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to recognition of income and management bias in certain accounting estimates. Audit procedures performed by the engagement team included:

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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.

12

INDEPENDENT AUDITORS’ REPORT TO THE TRUSTEES OF

THE SERVITE FRIARS, PROVINCE OF THE ISLES (continued)

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 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’s trustees as a body for our audit work, for this report, or for the opinions we have formed.

Haysmacintyre LLP 10 Queen Street Place Statutory Auditors London EC4R 1AG 08/09/2022 Date:

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

13

THE TRUSTEES OF THE SERvrrE FRIARS, PROVINCE OF THE ISLFS BALANCE SHEET AS AT 31 DECEMBER 2021 2020 FIXED ASSETS Taltgiblc fixed assets Investment Property Investments 2,520.612 2.850,(MKI 4,972,197 2553.358 2,850.000 4,265,391 10.342.809 9.668,749 CURRENT ASSETS Debtors Cash at bank 27.785 360.257 23,757 442,223 388.042 465,980 CREDITOILS: Amounts falling due within one year (32.778) (29,675) NET CURRENT ASSETS 355264 436,305 TOTALASSETS LLSS cuRRE￿r LIABILITIES 10,698.073 10,105,054 CREDITORS: Amounts falling du¢ after more than one year NET ASSETS (s5)￿> (55,5(X)) 10.642,573 10.049,554 FUNDS Restri¢ted.. . Studen¢ T￿￿t Fund - Parish fund - Church R¢8ioration Fund ,317,569 286.704 125.154 ,216.059 227.022 109,089 lJnrestricted.. 1.729,427 1,552,170 Designated - Fixed Asse18 Fund - Inve5tmeni Prorrty Fund - Property Development Fund - Retirement and Welfar¢ Fund - School Governors. Fund Special Projects Fund - St Mary's Priory Fund G¢n¢ral Fund 2.520,612 2.850.￿0 258,687 .788.345 2.553.358 2,850,0( 214.707 1,517,809 104,349 180.645 342,494 734,022 225,104 387.626 765.641 10,642.573 10,049,554 th¢ Trustees and authorised lor issue on DT Sept. 2022 and signed on their behalf by. l Addison OS Fr Chris¢opher O. (rnts) The ac¢ompanyin8 ttOt¢s form part of these ac¢owits. 14

THE TRUSTEES OF THE SERVITE FRIARS, PROVINCE OF THE ISLES

STATEMENT OF FINANCIAL ACTIVITIES

FOR THE YEAR ENDED 31 DECEMBER 2021

Unrestricted Restricted Total funds Total funds
Funds Funds 2021 2020
£ £ £ £
INCOME FROM:
Donations and legacies:
Salaries and pensions 19,695 - 19,695 49,907
Donations and legacies 223,746 12,242 235,988 261,921
JRS Furlough receipts 1,096 - 1,096 13,628
Other Trading Activities:
Rent and service charges 271,739 51,341 323,080 305,688
Charitable activities:
Local communities and parishes 120,369 184,990 305,359 195,842
Investments 10 100,581 - 100,581 65,422
Other 13,480 10,480 23,960 26,939
-------------------- ----------------- -------------------- --------------------
Total 750,706 259,053 1,009,759 919,347
-------------------- ------------------ -------------------- --------------------
EXPENDITURE ON:
Charitable activities:
Communities, parishes and their ministry 645,794 199,371 845,165 773,716
----------------- ------------------ --------------------- ---------------------
Total 12 645,794 199,371 845,165 773,716
----------------- ---------------- --------------------- ---------------------
Net income before gains on investments 104,912 59,682 164,594 145,631
Net gains /(losses) on investments 4 310,850 117,575 428,425 (130,186)
Gain on revaluation of investment property - - - 2,376,493
--------------------- ------------------ --------------------- ---------------------
Net income and net movement in funds 415,762 177,257 593,019 2,391,938
Reconciliation of funds:
Fund Balances brought forward 8,497,384 1,552,170 10,049,554 7,657,616
---------------------- --------------------- ----------------------- -----------------------
Fund Balances carried forward 8,913,146 1,729,427 10,642,573 10,049,554
========== ========== =========== ===========

All the charity’s activities over the two financial years above are derived from continuing activities. There are no other recognised gains and losses other than those included above. The accompanying notes form part of these accounts.

15

THE TRUSTEES OF THE SERVITE FRIARS, PROVINCE OF THE ISLES,

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 DECEMBER 2021

2021 2020
Notes £ £
Cash flows for operating activities:
Net cash used in operating activities 15 (187,495) (166,500)
------------------ ------------------
Cash flow from investing activities:
Dividends, interest and rent from investments 423,661 371,110
Proceeds from sale of investments 168,200 1,736,762
Purchase of investments (446,581) (1,894,512)
Purchase of fixed assets (39,751) (3,970)
--------------------- ---------------------
Net cash provided by investing activities 105,529 209,390
========= =========
Change in cash and cash equivalents in the year (81,966) 42,890
Cash and cash equivalents at the beginning of the year 16 442,223 399,333
--------------------- ---------------------
Cash and cash equivalents at the end of the year 16 360,257 442,223
========== ==========

16

THE TRUSTEES OF THE SERVITE FRIARS, PROVINCE OF THE ISLES

NOTES TO ACCOUNTS

FOR THE YEAR ENDED 31 DECEMBER 2021

1. ACCOUNTING POLICIES

The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the accounts are laid out below.

The financial statements have been prepared in accordance with the Statement of Recommended Practice for Charities (SORP 2015) (Second Edition, effective 1 January 2019) and the Charities Act 2011.

The charity meets the definition of a public benefit entity under FRS102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s).

(b) 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 estimating the economic useful life of tangible fixed assets.

(c) 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 one year from the date of approval of these accounts.

The Trustees of the charity 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 two accounting periods, the years ending 31 December 2022 and 2023, 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).

Investments are a form of basic financial instrument. They are initially recognised at their transaction value and subsequently valued at their fair value at the balance sheet date using the closing quoted market price. The Statement of Financial Activities includes the net gains and losses arising on revaluation and disposals throughout the year.

Investment properties ate carried at fair value. No depreciation is charged on investment properties.

(e) Tangible Fixed Assets

Land and buildings are shown at 10% of their insurance valuation plus additions since January 1999 at cost. Depreciation is provided evenly over the estimated useful lives of each asset.

Buildings - 2% per year Motor vehicles - 25% per year

(f) Financial instruments

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basis financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.

(g) Debtors

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

(h) Cash at bank and in hand

Cash at bank and in hand includes bank accounts, cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

17

THE TRUSTEES OF THE SERVITE FRIARS, PROVINCE OF THE ISLES

NOTES TO ACCOUNTS

FOR THE YEAR ENDED 31 DECEMBER 2021

1. ACCOUNTING POLICIES (continued)

(i) Creditors and provisions

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

(j) Restricted Funds

The restricted fund represents donations received with specific restrictions placed by the donors which have not yet been spent.

(k) Designated Funds

The designated funds represent amounts set aside by the Trustees to fulfil specific charitable objectives.

(l) Income

Income is included in the SOFA once the charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably. The following specific policies apply to categories of income:

Collections and donations are included in the accounts when received.

Members’ salaries – there are no friars/members receiving salaries during 2021.

Rental income is stated gross of any fees deducted and is recorded on a receivable basis.

Investment income is credited to income when it is 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. Dividends are recognised once the dividend has been declared and notification has been received of the dividend due.

(m) Expenditure

Liabilities are recognised as expenditure as soon as there is legal or constructive obligation committing the charity to that expenditure, it is probable that settlement will be required and the amount of obligation can be measured reliably.

Expenditure is recognised on an accruals basis as a liability is incurred, inclusive of VAT, which cannot be recovered.

Charitable expenditure consists of all expenditure relating to the objects of the Charity. All costs are directly attributable to the activities under which they have been analysed.

Governance costs include expenditure on the governance of the charity and its assets and are primarily associated with constitutional and statutory requirements.

18

THE TRUSTEES OF THE SERVITE FRIARS, PROVINCE OF THE ISLES

NOTES TO ACCOUNTS (Continued)

FOR THE YEAR ENDED 31 DECEMBER 2021

2. FIXED ASSETS

Land and buildings are mainly in use by the Province and are not generally available for sale.

Land and Motor
Buildings Vehicles Total
£ £ £
COST
As at 1 January 2021 3,288,181 52,399 3,340,580
Additions 39,751 - 39,751
---------------------- ----------------- ---------------------
As at 31 December 2021 3,327,932 52,399 3,380,331
--------------------- ----------------- ---------------------
DEPRECIATION
As at 1 January 2021 745,718 41,504 787,222
Charge for the year 66,559 5,938 72,497
----------------- ---------------- -----------------
As at 31 December 2021 812,277 47,442 859,719
----------------- ---------------- -----------------
NET BOOK VALUE
As at 31 December 2021 2,515,655 4,957 2,520,612
========== ========= ==========
As at 31 December 2020 2,542,463 10,895 2,553,358
========== ========= ==========
3. INVESTMENT PROPERTY
2021
£
Valuation
As at 1 January 2021 2,850,000
Revaluation -
---------------------
As at 31 December 2021 2,850,000
==========

The part of the charity’s premises at 262a Fulham Road (known as the ‘T-Block’) is an investment property as it is let out for commercial use. It was revalued at 31 December 2020 by Gerald Eve LLP, Chartered Surveyors at £2,850,000, who have confirmed that there have been no change in value since that date.

19

THE TRUSTEES OF THE SERVITE FRIARS, PROVINCE OF THE ISLES

NOTES TO ACCOUNTS (Continued)

FOR THE YEAR ENDED 31 DECEMBER 2021

4. INVESTMENTS

4. INVESTMENTS
Unrestricted Restricted 2021 2020
£ £ £ £
Market Value as at 1 January 2021 2,905,002 1,360,389 4,265,391 4,237,827
Additions 381,273 65,308 446,581 1,894,512
Disposals (108,400) (59,800) (168,200) (1,736,762)
Net investment gains 316,358 112,067 428,425 (130,186)
----------------------- ------------------- ---------------------- ----------------------
Market Value as at 31 December 2021 3,494,233 1,477,964 4,972,197 4,265,391
=========== ========= ========== ==========
Cost as at 31 December 2020 3,045,960 1,250,798 4,296,758 4,010,957
=========== ========= ========== ==========
2021 2020
Analysis of Investments £ £
Unit Trusts 4,879,311 4,178,065
Cash held as part of an investment portfolio 92,886 87,326
---------------------- ----------------------
4,972,197 4,265,391
========== ==========
5. DEBTORS
2021 2020
£ £
Prepayments and accrued income 27,785 23,757
--------------- ---------------
27,785 23,757
======= =======
6. CREDITORS:Amounts falling due within one year
2021 2020
£ £
Other creditors 5,901 2,179
Accruals 15,900 15,900
VAT due 10,977 11,056
----------------- -----------------
32,778 29,675
======== ========
7. CREDITORS:Amounts falling due after more than one year
2021 2020
£ £
Rent deposit 55,500 55,500
======== ========

20

THE TRUSTEES OF THE SERVITE FRIARS, PROVINCE OF THE ISLES

NOTES TO ACCOUNTS (Continued)

FOR THE YEAR ENDED 31 DECEMBER 2021

8. FUNDS - 2021

The restricted and unrestricted funds of the charity (which include designated and general funds) are set out below:

----- Start of picture text -----
||||||| |---|---|---|---|---|---| |Balance at|Transfers|Balance at| |1 January|& gains on|31 December| |2021|Income|Expenditure|Investments|2021| |£|£|£|£|£| |Restricted| |- Students Trust Fund|1,216,059|-|-|101,510|1,317,569| |- Parish Fund|227,022|259,053|(199,371)|-|286,704| |- Church Restoration Fund|109,089|-|16,065|125,154| |---------------------|------------------|------------------|------------------|---------------------| |1,552,170|259,053|(199,371)|117,575|1,729,427| |---------------------|------------------|------------------|------------------|---------------------| |Designated| |- Fixed Assets Fund|2,553,358|-|(32,746)|-|2,520,612| |-Investment Property Fund|2,850,000|-|-|-|2,850,000| |- Property & Development Fund|214,707|-|-|43,980|258,687| |- Retirement and Welfare Fund|1,517,809|-|-|270,536|1,788,345| |- School Governors’ Fund|104,349|-|-|12,782|117,131| |- Special Projects Fund|180,645|-|-|44,459|225,104| |- St Mary’s Priory Fund|342,494|-|-|45,132|387,626| |---------------------|------------------|------------------|------------------|---------------------| |7,763,362|-|(32,746)|416,889|8,147,505| |General Fund|734,022|750,706|(613,048)|(106,039)|765,641| |----------------------|---------------------|--------------------|-------------------|----------------------| |10,049,554|1,009,759|(845,165)|428,425|10,642,573| |==========|==========|=========|==== =====|==========|

----- End of picture text -----

FUNDS – 2020

The restricted and unrestricted funds of the charity (which include designated and general funds) are set out below:

----- Start of picture text -----
||||||| |---|---|---|---|---|---| |Balance at|Transfers|Balance at| |1 January|& gains on|31 December| |2020|Income|Expenditure|Investments|2020| |£|£|£|£|£| |Restricted| |- Students Trust Fund|1,226,474|-|-|(10,415)|1,216,059| |- Parish Fund|178,018|235,157|(186,153)|-|227,022| |- Church Restoration Fund|102,826|-|-|6,263|109,089| |---------------------|------------------|------------------|--------------------|---------------------| |1,507,318|235,157|(186,153)|(4,152)|1,552,170| |---------------------|------------------|------------------|------------------|---------------------| |Designated| |- Fixed Assets Fund|3,106,844|-|(79,979)|(473,507)|2,553,358| |-Investment Property Fund|-|-|-|2,850,000|2,850,000| |- Property & Development Fund|200,206|-|-|14,501|214,707| |- Retirement and Welfare Fund|1,445,478|-|-|72,331|1,517,809| |- School Governors’ Fund|107,371|-|-|(3,022)|104,349| |- Special Projects Fund|167,246|-|-|13,399|180,645| |- St Mary’s Priory Fund|350,543|-|-|(8,049)|342,494| |---------------------|------------------|------------------|------------------|---------------------| |5,377,688|-|(79,979)|2,465,653|7,763,362| |General Fund|772,610|684,190|(507,584)|(215,194)|734,022| |----------------------|---------------------|--------------------|-------------------|----------------------| |7,657,616|919,347|(773,716)|2,246,307|10,049,554| |==========|==========|=========|=========|==========|

----- End of picture text -----

21

THE TRUSTEES OF THE SERVITE FRIARS, PROVINCE OF THE ISLES

NOTES TO ACCOUNTS (Continue

FOR THE YEAR ENDED 31 DECEMBER 2021

The Servite Students Trust Fund represents monies received for the training and education of Friars. This balance is held as part of the investment portfolio.

The Parish Fund represents monies raised by the Parish worshipping community and can only be used in the local parish to meet the needs of that community.

The Church Restoration Fund represents monies set aside to raise funds for the repair and maintenance of the fabric of Our Lady of Dolours Servite Church, London .

The Fixed Assets Fund is maintained at book value and represents the net investment in fixed assets.

The Investment Property Fund was realised on the sale of one of the Charity’s properties and the fund is used to maintain the other properties in good repair.

The Retirement and Welfare Fund was begun in 1993 to fund Servite Friars in their retirement. Most friars receive no state pension or less than the basic pension despite having spent all their adult life in service of the public. In 1999 the fund began paying a modest payment to all communities that have senior members among their number.

The Special Projects Fund. This fund was accumulated from a percentage of recent gifts and bequests. The fund is used to respond to appeals for aid from Servites in other parts of the world or other related charities.

The St Mary’s Priory Fund is a contingency for the oldest and most complex of the Charity’s properties at Fulham Road in London.

9. ANALYSIS OF NET ASSETS BETWEEN FUNDS - 2021

Net Creditors
Fixed Current Due after
Assets Investments Assets One year Total
£ £ £ £ £
Restricted Fund
- Student Trust Fund - 1,317,569 - - 1,317,569
- Parish Fund - - 286,704 - 286,704
- Church Restoration Fund - 125,154 - - 125,154
Servite Friars Fund
Designated:
- Fixed Assets Fund 2,520,612 - - - 2,520,612
- Investment Property Fund - 2,850,000 - - 2,850,000
- Property & Development Fund - 258,687 - - 258,687
- Retirement and Welfare Fund - 1,788,345 - - 1,788,345
- School Governors’ Fund - 117,131 - - 117,131
- Special Projects Fund - 225,104 - - 225,104
- St Mary’s Priory Fund - 387,626 - - 387,626
General - 752,581 68,560 (55,500) 765,641
---------------------- ---------------------- ------------------- ------------------- ----------------------
2,520,612 7,822,197 355,264 (55,500) 10,642,573
========== ========== ========= ========= ==========

22

THE TRUSTEES OF THE SERVITE FRIARS, PROVINCE OF THE ISLES

NOTES TO ACCOUNTS (Continue

FOR THE YEAR ENDED 31 DECEMBER 2021

9. ANALYSIS OF NET ASSETS BETWEEN FUNDS – 2020

Net Creditors
Fixed Current Due after
Assets Investments Assets One year Total
£ £ £ £ £
Restricted Fund
- Student Trust Fund - 1,216,059 - - 1,216,059
- Parish Fund - - 227,022 - 227,022
- Church Restoration Fund - 109,089 - - 109,089
Servite Friars Fund
Designated:
- Fixed Assets Fund 2,553,358 - - - 2,553,358
- Investment Property Fund 2,850,000 - - 2,850,000
- Property & Development Fund 214,707 - - 214,707
- Retirement and Welfare Fund - 1,517,809 - - 1,517,809
- School Governors’ Fund - 104,349 - - 104,349
- Special Projects Fund - 180,645 - - 180,345
- St Mary’s Priory Fund - 342,494 - - 342,494
General - 580,239 209,283 (55,500) 734,022
---------------------- ---------------------- ------------------- ------------------- ----------------------
2,553,358 7,115,391 436,305 (55,500) 10,049,554
=========== ========== ========= ========= ==========
10. INVESTMENT INCOME
2021 2020
£ £
Income from UK quoted investments 100,491 64,214
Bank interest 90 1,208
----------------- -----------------
100,581 65,422
======== ========

11. TRANSACTIONS WITH TRUSTEES AND RELATED PARTIES

The trustees of the Charity are also members of the Province and as such have taken vows of poverty under which they have renounced all personal rights to income and capital. The Charity provides for the essential needs of all members of the Congregation within the Province. The living costs of the five trustees are therefore borne by the Charity. During 2021 because of the pandemic, P M O’Brien, the brother of a trustee, Father Christopher O’Brien, was paid £3,254 (2020: £1,661) plus deductions of £813 to HMRC in tax as an empoyee. There were no amounts owing or owed at the year-end.

23

THE TRUSTEES OF THE SERVITE FRIARS, PROVINCE OF THE ISLES

NOTES TO ACCOUNTS (Continued)

FOR THE YEAR ENDED 31 DECEMBER 2021

12. ANALYSIS OF EXPENDITURE - 2021

Staff Costs Donations Other 2021 2020
£ £ £ £ £
Charitable activities:
Communities, Parishes
and		 their
ministry:
Communities:
- Kersal 7,596 - 38,573 46,169 61,174
- London 27,009 1,200 143,547 171,756 124,979
Parishes:
- Kersal 5,469 5,332 65,055 75,856 22,787
- Our Lady of Dolours 33,318 2,585 98,843 134,746 73,823
Province 27,520 178,464 210,654 416,638 490,953
------------------- ---------------- ------------------- ------------------- -------------------
100,912 187,581 556,672 845,165 773,716
========= ======== ========= ========= =========
All costs are directly attributable to the activities under which they have been analysed.
Included in the above are the following:
Fees paid to the auditors:
- Auditors’ remuneration 11,000 10,200
- Other fees 4,960 4,960
Depreciation 72,497 83,949
Donations 149,414 137,450
======== ========

ANALYSIS OF EXPENDITURE - 2020

Staff Costs Donations Other 2020
£ £ £ £
Charitable activities:
Communities, Parishes and their
ministry:
Communities:
- Kersal 4,950 1,500 54,724 61,174
- London 25,534 9,076 90,369 124,979
Parishes:
- Kersal 5,304 4,270 13,213 22,787
- Our Lady of Dolours 27,527 12,565 33,731 73,823
Province 23,577 110,039 357,337 490,953
------------------- ---------------- ------------------- -------------------
86,892 137,450 549,374 773,716
========= ======== ========= =========

24

THE TRUSTEES OF THE SERVITE FRIARS, PROVINCE OF THE ISLES

NOTES TO ACCOUNTS (Continued)

FOR THE YEAR ENDED 31 DECEMBER 2021

13. STAFF COSTS
2021 2020
£ £
Gross salaries 95,735 81,890
Employer’s NI 5,177 5,002
----------------- -----------------
100,912 86,892
======== ========

No trustees (who are the charities key management personnel) received remuneration for their services during the current or prior year. No trustees received any reimbursed expenses during the current or prior year.

At the beginning of 2021 there was 1 full time and 8 part time employees (2020 – 1 full time and 9 part time employees). One of the part timers left during 2021 so at the end of the year there were 1 full and 7 part timers the equivalent to 3.4 full time workers.

14. CUSTODIANSHIP

At the beginning of 2021 the BlackRock Investment was valued at £198,318 and by 31 December it was £217,767. We continue to administer this fund on behalf of our related charity in the North of Ireland Order of Mary Servite Trust (XN55092).

15. RECONCILIATION OF NET INCOME TO NET CASH FLOW FOR OPERATING ACTIVITIES

16.

2021 2020
£ £
Net income for the year as per the Statement of Financial Activities 593,019 2,391,938
Adjustments for:
Depreciation charges 72,497 83,949
Gain on revaluation of investment property - (2,376,493)
Loss/(gains) on investments (428,425) 130,186
Dividends, interest and rents from investments (423,661) (371,110)
Increase in debtors (4,028) (4,964)
Decrease in creditors 3,103 (20,006)
------------------- -------------------
Net cash used in operating activities (187,495) (166,500)
========= =========
ANALYSIS OF CASH AND CASH EQUIVALENTS 2021 2020
£ £
Bank accounts 360,257 442,223
========= ========

25

THE TRUSTEES OF THE SERVITE FRIARS, PROVINCE OF THE ISLES

NOTES TO ACCOUNTS (Continued)

FOR THE YEAR ENDED 31 DECEMBER 2021

17. STATEMENT OF FINANCIAL ACTIVITIES 2020 Unrestricted Restricted
Funds Funds 2020
£ £ £
INCOME FROM:
Donations and legacies:
Salaries and pensions 49,907 - 49,907
Donations and legacies 208,225 53,696 216,921
JRS Furlough receipts 13,628 - 13,628
Other Trading Activities:
Rental income 292,271 13,417 305,688
Charitable activities:
Local communities and parishes 34,947 160,895 195,842
Investments 65,422 - 65,422
Other 19,790 7,149 26,939
-------------------- ----------------- --------------------
Total 684,190 235,157 919,347
-------------------- ------------------ --------------------
EXPENDITURE ON:
Charitable activities:
Communities, parishes and their ministry 587,563 186,153 773,716
----------------- ------------------ ---------------------
Total 587,563 186,153 773,716
----------------- ---------------- ---------------------
Net income before investment losses 96,627 49,004 145,631
Net losses on investments (126,034 (4,152) (130,186)
Gain on revaluation of investment property 2,376,493 - 2,376,493
--------------------- ------------------ ---------------------
Net income and net movement in funds 2,347,086 44,852 2,391,938
Reconciliation of funds:
Fund Balances brought forward 6,150,298 1,507,318 7,657,616
---------------------- --------------------- -----------------------
Fund Balances carried forward 8,497,384 1,552,170 10,049,554
========== ========== ===========

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THE SERVITE FRIARS, PROVINCE OF THE ISLES DETAILED INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR TO 31 DECEMBER 2021

FOR THE YEAR TO 31 DECEMBER 2021
Ordinary
Payments
Ordinary (including
Receipts Subsidiaries) 2021 2020
£ £ £ £
COMMUNITY
Kersal 48,173 46,169 2,004 23,353
London 163,340 178,756 (15,416) (25,298)
Parish
Kersal 71,738 101,060 (29,322) 3,461
Our Lady of Dolours 187,314 180,346 6,968 14,947
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Surplus of Communities, Parishes and others 470,565 506,331 (35,766) 16,463
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PROVINCIAL FUND
Ordinary Receipts
Dividends and interest 100,206 66,416
Donations 232,212 206,654
Salaries & pensions 36,826 1,298
Sundry receipts - 10,000
Rental income 307,214 281,938
Provincial contribution 24,545 15,996
Transfers 15,000 20,000
HMRC JRS Grants 1,096 13,328
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717,099 615,630
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ORDINARY PAYMENTS
Studies and sabbaticals 10,968 10,106
Travel and car expenses 1,619 1,980
Office costs 2,296 1,463
Chapter 3,972 540
Wages 37,683 23,577
Professional fees 55,435 55,121
General 6,688 9,575
Donations 135,082 114,017
Bank charges and interest 4,403 3,597
Repairs and maintenance - 84
Curia 38,629 54,665
Insurance 80,908 73,155
Depreciation 72,497 83,949
Development 12,000 15,000
Healthcare 37,577 28,760
R&W Pension 16,982 10,873
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516,739 486,462
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Surplus of Provincial Fund 200,360 129,168
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Surplus before investment gains 164,594 145,631
Increase/(decrease) in market value of investments 428,425 (130,186)
Revaluation surplus - 2,376,493
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Surplus for the year 593,019 2,391,938
Fund balances brought forward 10,049,554 7,657,616
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Fund balances carried forward 10,642,573 10,049,554
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