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2023-12-31-accounts

THE TRUSTEES OF THE SERVITE FRIARS, PROVINCE OF THE ISLES

(A Registered Charity)

ACCOUNTS

FOR THE YEAR ENDED 31 DECEMBER 2023

Registered Charity Number: 249148

THE SERVITE FRIARS, PROVINCE OF THE ISLES

REPORT OF THE TRUSTEES OF THE SERVITE FRIARS

FOR THE YEAR ENDED 31 DECEMBER 2023

Trust property held in connection with the Brothers Servants of the Blessed Virgin.

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
Father Allan Satur OSM
Father Paul Addison
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.com
Charity Registration Number 249148
Auditors HaysMac 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 Adviser Will Saxby MRICS Dip Proj Man

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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 2023

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 2023.

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 2023 our long-standing ministry and pastoral care continued following the pandemic restrictions of the previous years. Our tradition, derives from the Servite Constitutions and the Province of the Isles Servite Directory, together with our Trust Deed dating back to 1935.

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

In accordance with a well-founded tradition support was given to our General Council in Rome, and to the Pontifical University, the Marianum. This international service is reviewed every six years and a new General Council elected. The next General Chapter will be in 2025 and preparations are already in hand.

In recent times the three parishes in London, Salford and Bath would have a weekly footfall in excess of 1,500. Each Mass, or Service, 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 community 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 need to be arranged in conjunction with state registrars.

Mission

The Servite Order in the UK aims 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 2023

GOVERNANCE, STRUCTURE AND MANAGEMENT

From its inception the Servite Order have followed a rule of Life, the Constitutions, and these have the approval of the Catholic Church and are in conformity with Canon Law. These have been upgraded and amended periodically, the last time the Constitutions were amended was in September 2015. The local friars also have a Directory which adjusts the Order’s rules to local circumstances and in our case, to be in line with UK charity law. The Directory was approved and updated in 2017.

The UK charity “Trust Property held in connection with Brother Servants of the Blessed Virgin Servite Fathers”, known as The Servite Friars, together with an Irish Charity “Servite Community - Rathfarnham”, and with “Order of Mary Servite Trust”, a charitable incorporated organisation (CIO) in Northern Ireland, constitute the Servite Province of the Isles

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 the friars 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 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 appointments to the various offices are effected.

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 new trustees when appointed 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, the bank relationship team, and investment 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 seventeen friars and their presence in England and Ireland is reported through to the three relevant civil authorities and registrations. Each year the friars gather for a Provincial Chapter and this is when the AGM of the English Charity is held. All members continue 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 Council 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.

The main sources of weekly income are the Churches and parochial weekly donations.

Our Pension and Welfare Cover remains a financial priority .

The care of the elderly is an enduring concern and the internal fund continues to support two of the friars in residential care homes. An effort has been made to increase this fund, dedicated to the help of the elderly, in line with ever increasing inflationary pressures.

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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 2023

Laws, regulations, external and environment. In order to follow changes in government policies, and to guard against the consequences of non-compliance with laws and regulations, the Provincial Treasurer is a member of the Association of Provincial Bursars. Within the past year a Finance Manager has been appointed who brings with him wide experience in working for a charitable organisation.

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, 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 . Each trustee meeting checks on the procedures being followed in the order’s communities, and among the parishioners and other lay helpers under the guidance of the recently created RLSS, Religious Life Safeguarding Service, supported by supervisory web meetings.

THE PRIOR 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 day-to-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 be much involved in this initiative.

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 now 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 and has now assumed the role of Parish Priest in the Marley Grange, parish in Dublin. 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 Servite General Council of Administration which sets the budget for the Servite 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 2023

Fr Allan Satur

Fr Allan entered the Servite Order 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. In 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 Servite 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 STL 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 at Our Lady of Dolours Church, Kersal, Salford.

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 2023 £35,520 was sent through to Rome of which £19,180 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, when a full detailed report is given at the Council of Administration of the income and expenditure of the previous calendar year. The Treasurer of the Province is member of this General Council of Administration. The 2024 meeting is scheduled to take place in the Order’s Priory in Ottawa.

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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 2023

The Benburb Library, Museum and Provincial Archive

This facility while existing within the Northern Ireland Trust (Order of Mary Servite Trust) conserves all the English and Irish charitable trusts’ archives, and so Provincial funds continue to offer support. In particular, during 2023 the London based trust provided £109,370 made up of the Service Level Agreement for the Library and Archive (£75,000) and Priory Insurance (£34,321 These expenses were off-set by receiving £63,321 from the related charity based in the Republic of Ireland plus a further £30,000 provided by the Friends of Benburb.

Servite Missions and Various charities supported by our Trust

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. 2023 saw our continued support for the student programme in the Philippines, £14,030. In recent years they have recruited and trained some students from Vietnam and plans are afoot to open a community in Vietnam in 2024. We also continued with our support for the friars in Mozambique who are offering support and a safe environment to the youth of Matola in an after-school hours Project. In 2023 we donated £2,000.

With the continuation of the conflict in Ukraine , our charity contributed £2,000 to aid the displaced and injured of that country.

Alongside these calls for help the Charity continued its long-term support of efforts towards relief from poverty and hunger in the world, with support for CAFOD totalling £6,883. We also contributed £1,000 to Marriage Care and £1,000 to Housing Justice. We also supported a variety of smaller charities to the tune of £10,300.

.

Volunteers (Friars)

Area of Service Number of Volunteers
Hours per year		 Number of Volunteers
Hours per year
Preparing and celebrating Services 6 4,000
Pastoral Planning, teaching, meetings, Study 6 2,350
Home visit of elderly and sick 5 1,000
Administration 5 5,525
One to one direction and guidance 5 1,150
Hospital Visits 4 830
School Meetings, teaching 4 850
Community Care and Service 2 600

Throughout the year the friars give their time and energy serving the aims of the Charity. They either received 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 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 £250 a day this would amount to over £580,000 of dedication and service to fulfil the aims and purposes of the charity.

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. 2023 saw these numbers approach the pre-pandemic levels.

The London Parish identified 130 regular lay volunteers during 2023. These included cleaners, flower arrangers and maintenance people along with money counters and others helping with administration. Alongside these are those involved in the actual Church services 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 17,755 hours donated to keep the charity fully efficient and operational.

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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 2023

The Kersal Parish was able to identify 125 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 6,654 voluntary hours service in the course of the year.

Totalling the two parishes this comes to over 24,000 voluntary hours over the course of 2023. Without this generous donation of time and expertise the charity would not be able to function as well as it does.

Our Lady of Dolours London Parish and St Marys Priory

The monthly service for cancer sufferers and their families, took 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 a baby in the London church 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. 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. During 2023 a new shrine was dedicated to Blessed Carlo. It is thought that his canonisation will come quite soon.

Some parishes in the diocese who are preparing a group of young people to receive the Sacrament of Confirmation, come to our church to learn about the life and inspiration of Blessed Carlo Acutis and how his Christian faith animated his teenage life.

Our Lady of Dolours, Salford and Servite Priory

The parish reaches out to the youth with regular meetings of the Scouts, Guides, Beavers, Rainbows and Brownies. On the feast of Christ the King they assemble in church on parade and prayers are offered for all young people. Again it is volunteers who keep these groups alive and active.

2023 saw the Kersal parish celebrate 100 years since the arrival of the first Servite Community. There were a variety of events to mark the occasion, but the climax came on 25 March when the Bishop of Salford the Rt Rev John Arnold celebrated the Mass of thanksgiving. Many former parishioners returned to join in the celebration and a fine glossy publication recorded the highs and lows that marked the last century. Along with other celebrations held in St Philip’s school this was the culmination of some serious planning by a dedicated group of volunteers.

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.

The Management of Property

The big project for 2023 was the need for some decoration of the front porch of our Lady of Dolours, Fulham Road along with a renewing of the stonework on the parapet of the narthex. Early estimates were around the £80,000 to £100,000 mark but this didn’t take into consideration the cost of the scaffolding. It also transpired that once the scaffolding went up over the Tower a close inspection revealed the stonework was more damaged than was apparent when viewed from the ground. For example, the plinth under the statue of the Madonna was nearly ready to drop the statue onto the busy pavement below.

In the event all the work totalled £183,000 with a few minor works to be finished during 2024. Because of the unexpected extras it was necessary to dip into the Church Restoration Fund by £35,000, although after reclaiming all the VAT through the Listed Places of Worship scheme it may be possible to replace some of those funds.

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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 2023

FINANCIAL REVIEW

Income in 2023 amounted to £1,114,974 (2022: £1,101,879). Expenditure in 2023 was £967,880 (2022: £1,205,349). Although there were different factors involved, over the two years the end of year totals between 2022 and 2023 are similar.

In addition in 2023 there were net gains on investments of £106,792 leading to net income for the year of £253,886 a turnaround from the previous year.

The previous year, 2022, saw a fall in market value for investments held, of £ (455,348), and with a devaluation of £ (850,000) for the investment property, due to weakness in the rental market for office space, combined with the result of the year being net expenditure of £(103,470), 2022 closed with net expenditure of £ (1,408,818).

Reserves Policy

This policy was reviewed and amended in January 2022.

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 exclusively for the education of Servite Students. During 2023 48% of the dividends was used to educate our own student while the 52% went to the education of international Servite students.

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 22% of the total portfolio (2023: 18%). Ideally it should be stronger to help fund lay assistants who will be needed to help maintain the level of service that has been offered over recent years.

In previous years funds that have been held in custodianship on behalf of the former community in Northern Ireland, this year have been absorbed into the Provincial General Fund because there is no longer a resident Servite Community at Benburb Priory.

The Retirement and Welfare Fund continues to play a pivotal role in the charity’s finances as one friar is receiving long term care 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 more than trebled to an average of £660 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 Fulham Road frontage. It is now being built up ready for the next realignment.

The St Mary’s Priory Fund is a contingency for the oldest and most complex of the Charity’s properties at 264 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, Fulham Road,, a grade II listed building. At the beginning of 2016 the charity was dissolved and the remaining funds becoming a Restricted fund within the main charity. By the end of 2022 it had reached £110k. Necessary repairs to some of the external stone-work urgently required during 2023, consumed capital growth, and some of the capital itself, so that the fund stood at £79k at the close of 2023.

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

The 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.

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THE TRUSTEES OFTHE SERVITE FRJARS, PROVINCE OF THE ISLES REPORT OF THE TRUSTEES (continued) FOR THE YEAR ENI)ED 31 DECEMBER 2023 The Finance Couucil are requested to IIKTrk into th¢ tnoral 5talus and operating metbods of the diff¢rent cotnpanies to &icertain trlat iFAey are broadly in lille with our Servite aDd Cbristian ethos. We are totally ¢Ollllllitt¢d to tbe protection of human life from conception to death, therefore, special care needs to be takeu to protect bu]naD life. even tn tbe womb. This should be borne tDiDd investing An phannaceulica]s or rnedica] resea￿h. It is also requested that a company's intemational tecord is mollitor¢4 ¢sp¢cially wbere it bas dealtngs with countries where UN recogTLised human rigbts are severely restricted. A failur¢ iD this area would be tantatnouttt to ¢oodolliDg and cooperatijjg iu th¢ oppre5SiOD of the ordinary citiZ¢U5 aud the good. Because of the wgeDCy of the present moment WmP￿leS LDU5t b¢ care￿IlY cllecked 18 to their trnisparency in disclosing their carbon footyrtnt, their plans to decr¢as¢ IL aud tbe susfainability and fair e]nploym¢nt involved iu their Supply IiDes. It is envisaged thai all Njrtfolios wiu hav¢ no iDVeStment ID carbon fi￿15 by 2025. Impact investtng is part of our overall strategy. It allows us to align more closely to our charitable objects and promote a more suMainable econojny tn line with our Christtati beliefs and ministry while still Eting an economically sound investment. FUTURE PLANS The illv¢5tmeDt Properties Ohana Centre Ltd ha8 assumed the day to day TuDniDg of the specialised nursery. It is Iwped ttjw they will extend their lease to 2027. The frootage on Fu]ham Roa( (T b1￿k) has i¢en let to Nammu Workpl￿ i￿. WbeD they sigDed the lease in March 2023 they pmmptly get about a refiguration of the internal Th)[￿￿. John Yianni of May & Co. ¢siai¢ agen14 continues to use the basement of262 Fll]ha￿ Road for Siijrage. Tb¢ Irt)ndon Parish The choir which animates the maill I l 0'cl(￿k M&ts ¢a¢b Siuthy is pjanning a short tourto sing at two Marian shrines duriog 2024 one in Frdnce and the other in S￿ll1. The Blessed Carlo Society oim5 al iDvoIviDg the youth of the palls￿ and 2024 sbould see the arrdngement of a visit to an English sbrine, that of Our Lady of Walsinghatn. If this FS successful it is bot*d tbat somethiDg more ambitious witi be arranged for 2025. AuditOT On 18 November 2024 the company's audttor ¢hong¢d its name frotn baysmacintyre LLP to Haysmac LLP. A resolution proposing the revappoilltment of Haysmac LLP a5 auditors to tb¢ tharity was approved at th¢ annual general m¢¢tin8. Approved by the Trusttts OD Zg Qf%.Qo?LF . IPwAdd4PYI and signed on their behalf by: Fr Paul so crrustee) Fr Cbristo O'Bri¢D OSM (rn￿tee)

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 2023 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.

11

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.

HaysMac LLP Statutory Auditors

10 Queen Street Place London EC4R 1AG

3 December 2024 Date:

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

12

THE"fRUSTF.F.S OFTHE SERVITE FRIARS, PROVINCE ()FTHE ISLb;S BALANCE SHEET, AS AT 31 DECF.ThtBER 2023 2023 2022 Nol¢s FLXED ASSE'rs Tan8iblc fL%ed as%eis Inve￿illient Piop¢rty llVLSITncnt 2.388.665 2,000,000 4,846,413 2,456,h71 2,000,000 4,479,617 9,235,078 8,936.288 ClJliKb.NT ASSETS Dcbtors Cdsh dl bank 137.601 252,560 158.010 325,435 390,161 483,445 CRLDT'I'ORS.. Amoun15 falling due {78,216} 165.4781 wiihin One ye NET C.URRF.NT ASSETS 311,94. 417,96", T()I'AI, Assf.TS I,ESS CURREliT LIABtLITIES 9.547,023 9.354,255 CRTr'DITORS= ATnounts falling due after rnore than one year 159,3821 112Q,5aoi ET ASSETS 9.487.641 9,233,755 FLIYDS Restricted.. Sliideiit Trust Fund Pdrish Fuiid Chuibh R¢sloiatiun Fund 1,185.963 288.095 110,487 84.414 78.909 1.331,514 1,584,545 Unrestricted Designated ixed Assets I'und Inveslmtnt Property T.-iJnd Property Dtvelopmeiil l.'ulld K¢iir¢inenl and Welfare Fund SLhuol Govtmors, fund Special Projects Fund 8t Imary's Priory Fund General Fund 2,388.665 2,000.noo 259,369 ,709,411 104,815 228.734 396,675 1,068,458 2.456,671 2,000,000 248,392 1,618,983 100.670 213,829 351,572 659,093 ,156.127 7,649,210 TOTAL FUNDS 9,487,641 9,233.755 Approved by the Trustees dnd duiborised fur i55UC Oll 29 October 2024 and signcd n their bchglf by. 'r Paul Addison Oskl (I rusreel ITru.%tce) topher O'Brie OSM The accompanying notc% fom part ollhe5e accounts 13

THE TRUSTEES OF THE SERVITE FRIARS, PROVINCE OF THE ISLES

STATEMENT OF FINANCIAL ACTIVITIES

FOR THE YEAR ENDED 31 DECEMBER 2023

Unrestricted Restricted Total funds Total funds
Funds Funds 2023 2022
£ £ £ £
INCOME FROM:
Donations and legacies:
Salaries and pensions 92,372 - 92,372 99,258
Donations and legacies 382,364 311,870 694,234 358,556
Other Trading Activities:
Rent and service charges 91,942 59,812 151,754 409,618
Charitable activities:
Local communities and parishes - - - 105,113
Investments 10 113,015 63,599 176,614 129,334
-------------------- ----------------- -------------------- --------------------
Total 679,693 435,281 1,114,974 1,101,879
-------------------- ------------------ -------------------- --------------------
EXPENDITURE ON:
Charitable activities:
Communities, parishes and their ministry (445,428) (522,452) (967,880) (1,205,349)
----------------- ---------------- --------------------- ---------------------
Total 12 (445,428) (522,452) (967,880) (1,205,349)
----------------- ---------------- --------------------- ---------------------
Net
income/(expenditure)		 before 234,265 (87,171) 147,094 (103,470)
gains/(losses)on investments
Net gains/(losses) on investments 4 84,285 22,507 106,792 (455,348)
Loss on revaluation of investment property 3 - - - (850,000)
--------------------- ------------------ --------------------- ---------------------
Net income/(expenditure) 318,550 (64,664) 253,886 (1,408,818)
Transfers between funds 188,367 (188,367) - -
--------------------- ------------------ --------------------- ---------------------
Net movement in funds 506,917 (253,031) 253,886 (1,408,818)
Reconciliation of funds:
Fund Balances brought forward (as restated) 7,649,210 1,584,545 9,233,755 10,642,573
---------------------- --------------------- ----------------------- -----------------------
Fund Balances carried forward 8,156,127 1,331,514 9,487,641 9,233,755
========== ========== =========== ===========

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.

14

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

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 DECEMBER 2023

2023 2022
Notes £ £
Cash flows for operating activities:
Net cash used in operating activities 14 (141,239) (600,907)
------------------ ------------------
Cash flow from investing activities:
Dividends, interest and rent from investments 328,368 538,952
Proceeds from sale of investments 3,726,712 4,322,780
Purchase of investments (3,986,716) (4,285,548)
Purchase of fixed assets - (10,099)
--------------------- ---------------------
Net cash provided by investing activities 68,364 566,085
========= =========
Change in cash and cash equivalents in the year (72,875) (34,822)
Cash and cash equivalents at the beginning of the year 15 325,435 360,257
--------------------- ---------------------
Cash and cash equivalents at the end of the year 252,560 325,435
========== ==========

15

THE TRUSTEES OF THE SERVITE FRIARS, PROVINCE OF THE ISLES NOTES TO ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2023

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.

(a) Basis of preparation

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 2024 and 2025, 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).

(d) Investments

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 Fixtures & Fittings - 10% 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.

16

THE TRUSTEES OF THE SERVITE FRIARS, PROVINCE OF THE ISLES

NOTES TO ACCOUNTS

FOR THE YEAR ENDED 31 DECEMBER 2023

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.

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.

17

THE TRUSTEES OF THE SERVITE FRIARS, PROVINCE OF THE ISLES

NOTES TO ACCOUNTS (Continued)

FOR THE YEAR ENDED 31 DECEMBER 2023

2. FIXED ASSETS

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

Land and Fixtures & Motor
Buildings Fittings Vehicles Total
£ £ £ £
COST
As at 1 January 2023 3,327,932 5,099 57,399 3,390,430
Additions - - - -
----------------- --------------- ----------------- -----------------
As at 31 December 2023 3,327,932 5,099 57,399 3,390,430
----------------- --------------- ----------------- -----------------
DEPRECIATION
As at 1 January 2023 878,835 1,275 53,649 933,759
Charge for the year 66,559 510 937 68,006
----------------- --------------- ---------------- -----------------
As at 31 December 2023 945,394 1,785 54,586 1,001,765
----------------- --------------- ---------------- -----------------
NET BOOK VALUE
As at 31 December 2023 2,382,538 3,314 2,813 2,388,665
========== ========= ========= ==========
As at 31 December 2022 2,449,097 3,824 3,750 2,456,671
========== ========= ========= ==========

3. INVESTMENT PROPERTY

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 2022 by the Trustees at a fair value of £2,000,000 and it has been considered there has been no change in this valuation at 31 December 2023.

Valuation£

At 1 January 2023 2,000,000
--------------
Revaluation -
--------------
At 31 December 2023 2,000,000
========

18

THE TRUSTEES OF THE SERVITE FRIARS, PROVINCE OF THE ISLES NOTES TO ACCOUNTS (Continued)

FOR THE YEAR ENDED 31 DECEMBER 2023

4. INVESTMENTS
Unrestricted Restricted 2023 2022
£ £ £ £
Market Value as at 1 January 2023 3,247,573 1,232,044 4,479,617 4,972,197
Additions 2,902,035 1,084,681 3,986,716 4,285,548
Disposals (2,624,478) (1,102,234) (3,726,712) (4,322,780)
Net investment gains 84,285 22,507 106,792 (455,348)
----------------------- ------------------- ---------------------- ----------------------
Market Value as at 31 December 2023 3,609,415 1,236,998 4,846,413 4,479,617
=========== ========= ========== ==========
Cost as at 31 December 2023 3,253,405 1,187,323 4,440,728 4,166,111
=========== ========= ========== ==========
2023 2022
Analysis of Investments £ £
Unit Trusts 4,813,121 4,345,340
Cash held as part of an investment portfolio 33,292 134,277
--------------- ---------------
4,846,413 4,479,617
========= =========
5. DEBTORS
2023 2022
£ £
Other Debtors 7,451 -
Prepayments and accrued income 102,544 158,010
VAT recoverable 27,606 -
--------------- ---------------
137,601 158,010
======= =======
6. CREDITORS:Amounts falling due within one year
2023 2022
£ £
Other creditors 1,619 4,140
Accruals 76,597 61,338
----------------- -----------------
78,216 65,478
======== ========
7. CREDITORS:Amounts falling due after more than one year
2023 2022
£ £
Rent deposit 59,382 120,500
======== ========

19

THE TRUSTEES OF THE SERVITE FRIARS, PROVINCE OF THE ISLES NOTES TO ACCOUNTS (Continued)

FOR THE YEAR ENDED 31 DECEMBER 2023

8. MOVEMENT IN FUNDS - 2023 The restricted and unrestricted funds of the charity (which include designated and general funds) are set out below:

----- Start of picture text -----
||||||| |---|---|---|---|---|---| |Transfers and Balance at| |1 January|gains on|31 December| |2023|Income|Expenditure|Investments|2023| |£|£|£|£|£| |Restricted Funds| |- Students|1,185,963|25,954|(11,116)|(32,610)|1,168,191| |- Parishes|288,095|369,682|(431,222)|(142,141)|84,414| |- Church Restoration Fund|110,487|39,645|(80,114)|8,891|78,909| |-------------------|------------------|------------------|------------------|---------------------| |1,584,545|435,281|(522,452)|(165,860)|1,331,514| |--------------------|------------------|------------------|------------------|---------------------| |Designated Funds| |- Fixed Assets|2,456,671|-|(68,006)|-|2,388,665| |Investment Property|2,000,000|-|-|-|2,000,000| |-Property& Development|248,392|37,396|(37,449)|11,030|259,369| |-Retirement& Welfare|1,618,983|39,069|(10,100)|61,459|1,709,411| |-School Governors’|100,670|1,737|(883)|3,291|104,815| |-Special Projects|213,829|5,501|(150)|9,554|228,734| |-Priories|351,572|119,631|(109,373)|34,845|396,675| |---------------------|------------------|------------------|------------------|---------------------| |6,990,117|203,334|(225,961)|120,179|7,087,669| |General Fund|659,093|476,359|(219,467)|152,473|1,068,458| |---------------------|------------------|--------------------|-------------------|----------------------| |9,233,755|1,114,974|(967,880)|106,792|9,487,641| |==========|==========|=========|==== =====|==========|

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

Transfers to restricted funds were made to correct gains credited to the funds in error in previous years.

MOVEMENT IN FUNDS – 2022

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

----- Start of picture text -----
||||||| |---|---|---|---|---|---| |Transfers and|Balance at| |1 January|gains on|31 December| |2022|Income|Expenditure|Investments|2022| |£|£|£|£|£| |Restricted| |- Students Trust Fund|1,317,569|-|-|(131,606)|1,185,963| |- Parish Fund|286,704|268,110|(266,719)|-|288,095| |- Church Restoration Fund|125,154|-|(14,667)|110,487| |---------------------|------------------|------------------|------------------|---------------------| |1,729,427|268,110|(266,719)|(146,273)|1,584,545| |---------------------|------------------|------------------|------------------|---------------------| |Designated| |- Fixed Assets Fund|2,520,612|-|(63,941)|-|2,456,671| |- Investment Property Fund|2,850,000|-|-|(850,000)|2,000,000| |- Property & Development Fund|258,687|-|-|(10,295)|248,392| |- Retirement and Welfare Fund|1,788,345|-|-|(169,362)|1,618,983| |- School Governors’ Fund|117,131|-|-|(16,461)|100,670| |- Special Projects Fund|225,104|-|-|(11,275)|213,829| |- St Mary’s Priory Fund|387,626|-|-|(36,054)|351,572| |---------------------|------------------|------------------|------------------|---------------------| |8,147,505|-|(63,941)|(1,093,447)|6,990,117| |General Fund|765,641|833,769|(874,689)|(65,628)|659,093| |----------------------|---------------------|--------------------|-------------------|----------------------| |10,642,573|1,101,879|(1,205,349)|(1,305,348)|9,233,755| |==========|==========|=========|==== =====|==========|

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

20

THE TRUSTEES OF THE SERVITE FRIARS, PROVINCE OF THE ISLES

NOTES TO ACCOUNTS (Continued)

FOR THE YEAR ENDED 31 DECEMBER 2023

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 DoloursServite Church, London .

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

The InvestmentProperty 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 - 2023

Net Creditors
Fixed Current Due after
Assets Investments Assets One year Total
£ £ £ £ £
Restricted Fund
- Student Trust Fund - 1,158,157 10,034 - 1,168,191
- Parish Fund - - 84,414 - 84,414
- Church Restoration Fund - 78,842 67 - 78,909
Servite Friars Fund
Designated:
-Fixed Assets Fund 2,388,665 - - - 2,388,665
-Investment Property Fund - 2,000,000 - - 2,000,000
-Property & Development Fund - 258,779 590 - 259,369
-Retirement and Welfare Fund - 1,702,873 6,538 - 1,709,411
-School Governors’ Fund - 104,815 - - 104,815
-Special Projects Fund - 226,859 1,875 - 228,734
-St Mary’s & Kersal Priory Fund - 366,273 30,402 - 396,675
General - 949,815 178,025 (59,382) 1,068,458
---------------------- ---------------------- ------------------- ------------------- ----------------------
2,388,665 6,846,413 311,945 (59,382) 9,487,641
========== ========== ========= ========= ==========

21

THE TRUSTEES OF THE SERVITE FRIARS, PROVINCE OF THE ISLES

NOTES TO ACCOUNTS (Continue)

FOR THE YEAR ENDED 31 DECEMBER 2023

9. ANALYSIS OF NET ASSETS BETWEEN FUNDS – 2022

Net Creditors
Fixed Current Due after
Assets Investments Assets One year Total
£ £ £ £ £
Restricted Fund
- Student Trust Fund - 1,185,963 - - 1,185,963
- Parish Fund - - 288,095 - 288,095
- Church Restoration Fund - 110,487 - - 110,487
Servite Friars Fund
Designated:
- Fixed Assets Fund 2,456,671 - - - 2,456,671
- Investment Property Fund - 2,000,000 - - 2,000,000
- Property & Development Fund - 248,392 - - 248,392
- Retirement and Welfare Fund - 1,618,983 - - 1,618,983
- School Governors’ Fund - 100,670 - - 100,670
- Special Projects Fund - 213,829 - - 213,829
- St Mary’s Priory Fund - 351,572 - - 351,572
General - 649,721 129,872 (120,500) 659,093
---------------------- ---------------------- ------------------- ------------------- ----------------------
2,456,671 6,479,617 417,967 (120,500) 9,233,755
========== ========== ========= ========= ==========

10. INVESTMENT INCOME

2023 2022
£ £
Income from UK quoted investments 175,410 129,139
Bank interest 1,204 195
----------------- -----------------
176,614 129,334
======== ========

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 2023, P M O’Brien, the brother of a trustee, Father Christopher O’Brien, was paid £4,379 (2022: £3,351) plus deductions of £813 to HMRC in tax as an employee. There were no amounts owing or owed at the year-end.

22

THE TRUSTEES OF THE SERVITE FRIARS, PROVINCE OF THE ISLES

NOTES TO ACCOUNTS (Continued)

FOR THE YEAR ENDED 31 DECEMBER 2023

12. ANALYSIS OF EXPENDITURE - 2023

Staff Costs Donations Other 2023 2022
£ £ £ £ £
Charitable activities:
Communities, Parishes and their
ministry:
Communities:
- Kersal 8,173 600 7,350 16,123 31,053
- London 26,077 8,600 59,573 94,250 130,034
Parishes:
- Kersal 8,160 6,211 91,522 105,893 56,509
- London 37,179 9,278 278,872 325,329 217,689
Province 60,375 94,536 271,374 426,285 770,064
------------------- ---------------- ------------------- ------------------- -------------------
139,964 119,225 708,691 967,880 1,205,349
========= ======== ========= ========= =========

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:
Audit fees 14,000 12,650
Other fees 5,300 7,000
Depreciation 68,006 74,040
Donations 119,225 142,572

ANALYSIS OF EXPENDITURE - 2022

Staff Costs Donations Other 2022 2021
£ £ £ £
Charitable activities:
Communities, Parishes and their
ministry:
Communities:
- Kersal 7,820 100 23,133 31,053 46,169
- London 27,567 2,250 100,217 130,034 171,756
Parishes:
- Kersal - 8,037 48,472 56,509 75,856
- London 35,226 12,610 169,853 217,689 134,756
Province 28,195 119,575 622,294 770,064 416,638
------------------- ---------------- ------------------- ------------------- ------------------
98,808 142,572 963,969 1,205,349 845,175
========= ======== ========= ========= =========
Included in the above are the
following:
Fees paid to the auditors:
- Auditors’ remuneration 12,650 11,000
Other fees 7,000 6,500
Depreciation 74,040 72,497
Donations 142,572 149,414

23

THE TRUSTEES OF THE SERVITE FRIARS, PROVINCE OF THE ISLES

NOTES TO ACCOUNTS (Continued)

FOR THE YEAR ENDED 31 DECEMBER 2023

13. STAFF COSTS
2023 2022
£ £
Gross salaries 133,458 92,906
Employer’s NI 6,506 5,902
----------------- -----------------
139,964 98,808
======== ========

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.

During the year we had a part-time cleaner in the community of St Mary’s Priory but she also did some cleaning for the Parish, which the London Parish account refunded to St Mary’s accounts.

Following the previous incumbent’ maternity leave, the post of Parish Secretary has been permanently filled. During 2023 there were 1 full time and 9 part time employees (2022 – 1 full time and 7 part time employees).

14. RECONCILIATION OF NET INCOME TO NET CASH FLOW
FOR OPERATING ACTIVITIES
2023 2022
£ £
Net (expenditure)/ income for the year as per the Statement of Financial 253,886 (1,408,818)
Activities
Adjustments for:
Depreciation charges 68,006 74,040
Loss on revaluation of investment property - 850,000
Loss/(gains) on investments (106,792) 455,348
Dividends, interest and rents from investments (328,368) (538,952)
Decrease/(increase) in debtors 20,409 (130,225)
(Decrease)/increase/in creditors (48,380) 97,700
------------------- -------------------
Net cash used in operating activities (141,239) (600,907)
========= =========
15. ANALYSIS OF CASH AND CASH EQUIVALENTS 2023 2022
£ £
Bank accounts 252,560 325,435
========= =========

24

THE TRUSTEES OF THE SERVITE FRIARS, PROVINCE OF THE ISLES

NOTES TO ACCOUNTS (Continued)

FOR THE YEAR ENDED 31 DECEMBER 2023

16. STATEMENT OF FINANCIAL ACTIVITIES 2022 Unrestricted Restricted
Funds Funds 2022
£ £ £
INCOME FROM:
Donations and legacies:
Salaries and pensions 99,258 - 99,258
Donations and legacies 203,754 154,802 358,556
JRS Furlough receipts - - -
Other Trading Activities:
Rent and service charges 355,868 53,750 409,618
Charitable activities:
Local communities and parishes 45,555 59,558 105,113
Investments 129,334 - 129,334
Other - - -
-------------------- ----------------- --------------------
Total 833,769 268,110 1,101,879
-------------------- ------------------ --------------------
EXPENDITURE ON:
Charitable activities:
Communities, parishes and their ministry 938,630 266,719 1,205,349
----------------- ------------------ ---------------------
Total 938,630 266,719 1,205,349
----------------- ---------------- ---------------------
Net income/(expenditure) before(losses)/gains on (104,861) 1,391 (103,470)
investments
Net(losses)/gains on investments (309,075) (146,273) (455,348)
Loss on revaluation of investment property (850,000) - (850,000)
--------------------- ------------------ ---------------------
Net (expenditure)/ income and net movement in
funds (1,263,936) (144,882) (1,408,818)
Reconciliation of funds:
Fund Balances brought forward 8,913,146 1,729,427 10,642,573
---------------------- --------------------- -----------------------
Fund Balances carried forward 7,649,210 1,584,545 9,233,755
========== ========== ===========

25

THE SERVITE FRIARS, PROVINCE OF THE ISLES DETAILED INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR TO 31 DECEMBER 2023

Ordinary
Payments
Ordinary (including
Receipts Subsidiaries) 2023 2022
£ £ £ £
Community
Kersal 17,011 (15,123) 1,888 (34,498)
London 102,620 (94,250) 8,370 (15,011)
Parish
Kersal 75,247 (110,702) (35,455) 27,411
London 294,435 (347,573) (53,138) (26,020)
-------------------- -------------------- ----------------- -----------------
Surplus of Communities, Parishes and others 489,313 (567,648) (78,335) (48,118)
========== ========= ------------------ ------------------
PROVINCIAL FUND
Ordinary Receipts
Dividends and interest 167,915 95,703
Donations &Legacies 361,057 63,325
Salaries & pensions 59,303 47,728
Rental income 37,103 349,618
Provincial contribution - 22,500
Sundry 282 -
------------------ ------------------
625,660 578,874
-------------------- --------------------
ORDINARY PAYMENTS
Studies and sabbaticals (10,364) (12,778)
Travel and car expenses (3,064) (11,047)
Office costs (11,291) (2,665)
Chapter (3,216) (7,007)
Wages (32,666) (48,832)
Professional fees (101,927) (40,833)
General (33,610) (50,611)
Rates (208) (49,802)
Donations (94,536) (109,048)
Bank charges and interest (3,676) (3,670)
Repairs and maintenance (194,358) (45,232)
Curia - (44,023)
Insurance (46,790) (81,545)
Depreciation (68,006) (74,040)
HMRCt (17,706) -
Healthcare - (14,086)
R&W Pension (21,150) (39,007)
Re-distribution of funds expenditure 242,337
---------------------- ----------------------
(400,231) (634,226)
--------------------- ---------------------
(Deficit)/surplus of Provincial Fund 225,429 (55,352)
---------------------- ----------------------
(Deficit)/surplus before investment (losses)/gains 147,094 (103,470)
(Decrease)/increase in market value of investments 106,792 (455,348)
(Decrease)/increase in valuation of investment property - (850,000)
----------------------- -----------------------
Surplus for the year 253,886 (1,408,818)
9,233,755 10,642,573
Fund balances brought forward
------------------------ ------------------------
Fund balances carried forward 9,487,641 9,233,755
=========== ===========
This page does not form part of the audited accounts

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