## **THE PRIORY CHARITY** 

## **CONTENTS** 

|**REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, TRUSTEE AND**||
|---|---|
|**ADVISERS**|**1**|
|**REPORT OF THE TRUSTEE**|**2**|
|**INDEPENDENT EXAMINERS REPORT ON THE ACCOUNTS**|**8**|
|**CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING**||
|**INCOME AND EXPENDITURE ACCOUNT)**|**9**|
|**CHARITY BALANCE SHEET**|**11**|
|**NOTES TO THE FINANCIAL STATEMENTS**|**13**|





## **THE PRIORY CHARITY** 

## **REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, TRUSTEE AND ADVISERS** 

## **FOR THE YEAR ENDED 31 MARCH 2022** 

|**Charity registered number**|273022|
|---|---|
|**Registered Office**|Ware Priory|
||High Street|
||Ware|
||Hertfordshire|
||SG12 9AL|
|**Trustee**|Ware Town Council|
|**Clerk to the Trustee**|Terry Philpott|
|**Accountants**|IAC Audit and Consultancy Ltd|
||23 Westbury Road|
||Yarnbrook|
||Wiltshire|
||BA14 6AG|
|**Solicitors**|Longmores|
||24 Castle Street|
||Hertford|
||Hertfordshire|
||SG14 1HP|



1 



## **THE PRIORY CHARITY REPORT OF THE TRUSTEE FOR THE YEAR ENDED 31 MARCH 2021** 

The Trustee presents its annual report and financial statements for the year ended 31 March 2021 and confirms they comply with the Charities Act 2011, the Trust Deed and the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applied in the UK and Republic of Ireland (FRS 102). 

## **Structure Governance and Management** 

## **Governing Document** 

The Priory Charity is constituted as a charitable trust registered with the Charity Commission in 1989, Registration Number 273022. It is governed by a Trust Deed which is dated 12 February 1920 and a Scheme for the regulation of the Charity approved by the Charity Commissioners for England and Wales dated 30 August 1989. 

The financial statements have been prepared in accordance with the Trust Deed and relevant statutory requirements. 

## **Organisational Structure** 

Ware Town Council is the sole Trustee of the Priory Charity and is responsible for the general control and management of the charity. The Trustee is responsible for all decisions taken in relation to the Priory Charity. Town Councillors meet as the Trustee at least 5 times a year to discharge these duties and responsibilities. 

A wholly owned trading subsidiary company called Ware Priory Trading Limited (Company Registration Number 07669193) was formed by the Priory Charity to carry out its commercial activities and commenced trading on 1 April 2012. 

The day to day responsibility for the management of the Priory Charity is delegated, by the Trustee, to the Town Clerk. From 1st April 2020 the Charity has in place a management agreement with Ware Town Council for the Council to manage the Priory Charity, this is an annual agreement but is likely to be continued in future years. 

## **Appointment of the Trustee** 

Ware Town Council is the Trustee of The Priory Charity. Therefore, all Town Councillors are automatically representatives of the Priory Charity Trust. Town Councillors are normally elected every four years and are briefed on the workings of the Charity as appropriate. 

The Trustee of the Charity was represented from 1 April 2021 as follows; 

Ex-officio: 

P Ballam I Kemp M Butcher M Pope A Curtis S Reed R Fernando S Shaw J Kaye V Shaw 

2 



## **Key Management Personnel The Priory Charity - Senior Manager** 

Clerk to the Trustee - Terry Philpott (Town Clerk to Ware Town Council) 

No member of the Trustee body receives remuneration or other benefit from their work with the charity. As serving Councillors, members of the Trustee body are required to complete a register of interests and to declare interests at each meeting of the Trustee. 

## **Induction and Training of the Trustee Representatives** 

Town Council elections occur every four years and this results in the appointment of new Trustee representatives. After the elections, each councillor is given an induction pack which includes information on the Priory Charity and information from the Charity Commission. All Councillors are invited to attend a training session provided by the Town Clerk on the Priory Charity. This covers the background to the Trust, charitable objects, how the Priory Charity property is used, the Town Council as sole Trustee, duties and responsibilities of the Charity Trustee, the role of individual Councillors, public benefit and how the Priory Charity meets its public benefit requirement, sources of income, trading and declarations of interest. 

## **Pay Policy for Senior Staff** 

No staff are employed by the Priory Charity. Staff are employed by Ware Town Council and a percentage of their time is charged to the Priory Charity. 

## **Risk Management** 

The principal risk and uncertainty facing the Charity is the general economic climate and its potential effects on the business of Ware Priory Trading Limited. To manage these risks, the Trustee reviews a risk register annually and reviews aged debtor reports with financial reports. 

## **Objectives and Activities** 

## **Our Aims** 

The Priory Charity objects as set out in the Trust Deed are: 

_Such charitable activities for the general benefit of the inhabitants of the Town and District of Ware in the county of Hertfordshire, as the Trustee from time to time decides._ 

## **Our Objectives** 

To achieve its objects and aims as stated in the Trust Deed, the Priory Charity needs to generate income in order to maintain the buildings and grounds to an acceptable standard and to preserve its heritage for the benefit of the inhabitants of Ware. The Priory Charity generates this income by letting offices within the building and hiring the facilities for weddings, functions, conferences, and community events. 

The Priory Charity meets its primary objective by hiring its facilities to local groups and charities at a special concessionary rate or, in some cases, free of charge and by opening the Priory Grounds as a public park. 

A wholly owned trading subsidiary company called Ware Priory Trading Limited (Company Registration Number 07669193) was formed by the Priory Charity to carry out its commercial activities such as the letting of office space and room hire for weddings, conferences and functions. 

3 



The company started trading on 1 April 2012. Any Profits generated by Ware Priory Trading Limited will be gift-aided to the Priory Charity. 

Income generated from activities which meet the primary charitable objectives of the Charity such as the hiring of facilities to local groups and charities at a reduced concessionary rate and the provision of facilities to the public such as the Priory Grounds and Lido swimming pool continue to be carried out within the Charity. 

## **Use of Volunteers** 

All Trustee representatives are Town Councillors who give their time freely. The Priory Charity is supported by various volunteer groups including Friends of Ware Priory, who raise funds for improvements to the grounds and the building and Friends of Ware Lido, who are encouraging use of the Lido. 

## **Public Benefit Statement** 

The Trustee has complied with its duty to have due regard to the guidance on public benefit published by the Charity Commission in exercising its powers and duties. 

## **How our Activities Deliver Public Benefit** 

The Priory Charity was established to benefit the inhabitants of the Town and District of Ware in the county of Hertfordshire. The Trustee considers that the following activities provide benefit to the residents of Ware and the wider community: - 

- maintaining the heritage asset of Ware Priory for residents of Ware 

- opening the building to the public for guided tours on specific days in the year 

- providing an office for Ware Town Council, which is open to the public during office hours and for meetings 

- providing a venue for public meetings 

- hiring meeting facilities to local groups and charities at a special concessionary rate or, in some cases, free of charge. 

- maintaining the grounds as a public park accessible all year round 

- providing a venue for Ware Town Council to hold community activities such as Ware Carnival, Rock in the Priory, Ware Festival Activities, and free band concerts 

- providing a venue for fundraising events for the Town Mayor's charities and Ware Festival Charities 

- providing Community Cinema in Fletcher's Lea 

- maintaining Ware Lido for use by residents of Ware and the wider public 

Although charges are made for some of the Priory Charity's activities, people in poverty are not excluded from benefitting. Local community groups hire the facilities for their meetings and activities. The Town Council uses the facilities for community events at minimal cost, such as the Ware Festival "Bus Pass Party". The Priory grounds are open to all as a public park and include many free community activities. 

4 



## **Achievements and Performance** 

In order to separate its commercial activities, such as the letting of offices and hire of rooms for weddings, conferences and other functions from its Concessionary rate activities, the Priory Charity formed a wholly owned trading subsidiary named Ware Priory Trading Limited to carry out its commercial activities commencing trading on 1 April 2012. Any profits generated by Ware Priory Trading Limited will be gift-aided to The Priory Charity. 

It is recognised that most of the income to the Priory Charity is non-primary purpose income generated by the trading subsidiary, Ware Priory Trading Limited. Without this income, the Priory Charity would only have the small amount of income generated by community bookings and income from the Lido but would still be liable to pay all the costs of maintaining the Priory buildings and estate. 

Following several years of declining income, a review of catering took place in 2013. The recommendations of this review have been put in place since then with a Sales and Marketing Manager appointed in 2014 and the catering contract put to competitive tender in 2015. The current caterers, Seasoned Events, operated under a temporary contract during the tender process and successfully bid for the contract. 

## **Objectives of the charity and how these were achieved during the year** 

The Charity's objectives are very general. The Charity may provide such charitable purposes for the general benefit of the inhabitants of the town and district of Ware, in the county of Hertfordshire, as the Trustee from time to time decides. 

The Charity's Objectives in 2021/22 were: 

- Continue to work through the recommendations of the Quinquennial Survey of the Priory Building completed in October 2015 for maintenance for the Priory Building and grounds. 

**Did we achieve our objective?** Due to financial constraints all but emergency repairs were stopped. 

- The completed Quinquennial Survey included a planned maintenance programme which is used by facilities staff to carry out the recommendations. 

**Did we achieve our objective?** Due to financial constraints all but emergency repairs were stopped. 

- Engage a surveyor to prepare an updated Quinquennial Survey of the Priory Building. 

**Did we achieve our objective?** The update Quinquennial Survey was completed in the Autumn of 2019 and is integral to the four-year business plan. All recommendations have been reviewed and the estimated costs included in the financial plan. 

- Through the trading subsidiary, continue actively marketing the venue to increase revenue from conferences and functions. 

**Did we achieve our objective?** The impact of COVID had a significant detrimental impact on turnover. This resulted in a significant reduction in turnover. 

5 



## **Financial Review of 2021/22** 

Total income for the Charity for the year was £758,817 (2021: £134,967) and expenditure for the year was £350,290 (2021: £212,597) with a net surplus of £408,527 (2021: -£77,630). 

Total income for Ware Priory Trading Limited for the year was £370,900 (2021: £129,302) and expenditure for the year was £255,588 (2021: £118,349) with a net surplus of £115,312 (2021: £10,953). 

Ware Town Council (the Trustee) increased its subsidy to the Priory Charity from £25,000 in 2021 to £388,048 in 2022. 

## **Reserves** 

Free reserves are defined as those funds which are not designated or restricted, nor held as tangible fixed assets. As at 31 March 2022 the charity held no free reserves. The Trustee is in the process of trying to build up free reserves to acceptable levels. 

Total consolidated reserves are £3,145,358 (2021: £2,736,831). None of the Charities Reserves are Restricted. 

## **Assets and Obligations** 

The Priory property and land is vested in Ware Town Council which it holds in Trust for the Charity. The Charity's Objectives in 2021/22 are: 

1. To undertake a review of The Priory Charity ‘is it meeting its charitable objectives’ 

2. To ensure the effective implementation of the Management agreement 

3. To review and plan for the future of the public toilets. 

4. To review the development of the upstairs in Fletchers Lea. 

Following the introduction of the Management agreement effective 1st April 2020 with Ware Town Council the following objectives are managed by Ware Town Council. 

1. 1. To complete the activities identified on the Quinquennial review and plan for the activities in 2021/22 

2. To complete the refurbishment of the Ground Floor toilets in the Priory Building. 

3. To continue to develop the Priory Estate with particular focus on the Sanctuary Garden. 

   - Sanctuary Gardens 

   - New Ride on Mower purchase 

   - Priory Bridge 

   - Drainage works adjacent to Fletchers Lea 

4. To continue the development plans for the Play Area and Skate Park (Covid dependent) 

5. To implement the agreed business plan at the Lido including an extended swim season. 

   - Install outdoor showers 

   - Introduce queuing system 

   - Purchase ‘fun’ inflatable and run sessions to generate additional income 

   - To research the new floor options for implementation in 2022/23 

6 



## **Ware Priory Trading** 

Through the trading subsidiary the following objectives have been set. 

1. To develop the conference and wedding business to achieve the agreed budget income. 

2. To complete the lease of the Greyfriars and Jacobean Room. 

3. To continue to develop the Launchpad operation and increase income. 

4. To complete the actions in the Mystery Shopper report. To undertake a new review to measure effectiveness of actions and inform a future action plan. 

## **Statement of Trustee Responsibilities** 

The Trustee is responsible for preparing the Trustee’s Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). 

The law applicable to charities in England and Wales requires the Trustee 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 incoming resources and application of resources, including the income and expenditure of the charitable group for that period. In preparing these financial statements, the Trustee is required to: 

- select suitable accounting policies and then apply them consistently; 

- observe the methods and principles in the Charities SORP; 

- make judgements and estimates that are reasonable and prudent; 

- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and 

- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business. 

The Trustee is responsible for: 

- keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. 

- safeguarding the assets of the charity and group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. 

Signed on behalf of the Trustee: 

Approved on: 

7 



## **THE PRIORY CHARITY** 

## **INDEPENDENT EXAMINERS REPORT ON THE ACCOUNTS** 

## **FOR THE YEAR ENDED 31 MARCH 2022** 

I report to the trustees on my examination of the accounts of the above charity (“the Trust”) for the year ended 31 March 2022. 

As the charity's trustees, you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (“the Act”). 

I report in respect of my examination of the Trust’s accounts carried out under section 145 of the 2011 Act and in carrying out my examination, I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act. 

I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination which gives me cause to believe that in, any material respect: 

- the accounting records were not kept in accordance with section 130 of the Charities Act; or 

- ● the accounts did not accord with the accounting records; or 

- the accounts did not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a ‘true and fair’ view which is not a matter considered as part of an independent examination. 

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached. 

Signed 

Kevin Rose ACMA 

IAC Audit and Consultancy Ltd 

June 2021 

8 



## **THE PRIORY CHARITY** 

## **CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT)** 

## **FOR THE YEAR ENDED 31 MARCH 2022** 

|||Unrestricted|Restricted||Total|Total|
|---|---|---|---|---|---|---|
|||Funds|Funds||Funds|Funds|
|||2022|2022||2022|2021|
||Note|£|£||£|£|
|**Income from:**|||||||
|Donations and legacies:|4||||||
|I1<br>Donations and Grants||-|||-|11|
|I2<br>Ware Town Council subsidy||388,048|||388,048|25,000|
|Charitable activities:|5|-|||-|-|
|Other trading activities:|6||||||
|Conferences, events & other|||||||
|I7<br>rental||308,188|||308,188|91,965|
|I8<br>Catering Income||62,581|||62,581|(6,403)|
|I9<br>Other income||-|||-|24,394|
|**Total income**||758,817||-|758,817|134,967|
|**Expenditure on:**|||||||
|Raising funds||235,457|||235,457|98,349|
|Charitable activities||114,833|||114,833|114,248|
|**Total expenditure**|7|350,290||-|350,290|212,597|
|**Net income/(expenditure)**||408,527||-|408,527|(77,630)|
|**Net movement in funds**||408,527||-|408,527|(77,630)|
||||||||
|**Reconciliation of funds:**|||||||
|Total funds brought forward||2,736,832|||2,736,832|2,814,462|
|Net movement in funds||408,527||-|408,527|(77,630)|
|**Total funds carried forward**||3,145,359||-|3,145,359|2,736,832|



9 



## **THE PRIORY CHARITY** 

## **REGISTERED NUMBER: 273022 CONSOLIDATED BALANCE SHEET** 

## **AS AT 31 MARCH 2022** 

|||Note|2022|2022|2021|2021|
|---|---|---|---|---|---|---|
||||£|£|£|£|
|**Fixed assets**|||||||
||Tangible assets|12||3,166,885||3,263,116|
|||||3,166,885||3,263,116|
|**Current Assets**|||||||
||Debtors|14|5,259||62,195||
|BAN|||||||
|K|Cash at bank and in hand||55,551||28,526||
||||60,810||90,721||
||Creditors: amounts falling||||||
||due within one year|15|(82,336)||(617,006)||
|**Net current liabilities**||||(21,526)||(526,285)|
|**Total assets less current liabilities**||||3,145,359||2,736,831|
||Creditors: amounts falling||||||
||due after more than one||||||
||year|16||-||-|
|**Total net assets**||||3,145,359||2,736,831|
|**Charity funds**|||||||
||Restricted funds|||-|||
||Unrestricted funds|17||3,145,358||2,736,831|
|**Total funds carried forward**||||3,145,358||2,736,831|



The financial statements were approved and authorised for issue by the Trustee on 

and signed on their behalf by: 

10 



## **THE PRIORY CHARITY** 

## **REGISTERED NUMBER: 273022** 

## **CHARITY BALANCE SHEET** 

## **AS AT 31 MARCH 2022** 

||Note|2022|2022|2021|2021|
|---|---|---|---|---|---|
|||£|£|£|£|
|**Fixed assets**||||||
|Tangible assets||3,166,885|||3,263,116|
|Investments||1|||1|
||||3,166,886||3,263,117|
|**Current Assets**||||||
|Debtors|14|100,434||104,631||
|BANK<br>Cash at bank and in hand||24,184||13,351||
|||124,618||117,982||
|Creditors: amounts falling||||||
|due within one year|16|(70,146)||(452,956)||
|**Net current liabilities**|||54,472||(334,974)|
|**Total assets less current liabilities**|||3,221,358||2,928,143|
|Creditors: amounts falling||||||
|due after more than one||||||
|year|||-||-|
|**Total net assets**|||3,221,358||2,928,143|
|**Charity funds**||||||
|Restricted funds|||-||-|
|Unrestricted funds|||3,221,358||2,928,143|
|**Total funds carried forward**|||3,221,358||2,928,143|



The financial statements were approved and authorised for issue by the Trustee on 

and signed on their behalf by: 

11 



## **THE PRIORY CHARITY** 

## **Registered Number: 273022** 

## **CONSOLIDATED STATEMENT OF CASH FLOWS** 

## **FOR THE YEAR ENDED 31 MARCH 2022** 

|Note<br>**Cash flows from operating activities**<br>Net cash used in operating activities<br>20<br>**Cash flows from investing activities**<br>Interest paid<br>Purchase of tangible fixed assets<br>**Net cash used in investing activities**<br>**Cash flows from financing activities**<br>Repayments of borrowing<br>**Net cash used in financing activities**<br>**Change in cash and cash equivalents in the year**<br>Cash and cash equivalents at the beginning of the year<br>**Cash and cash equivalents at the end of the year**|2022<br>2021<br>£<br>£<br>81,235<br>82,447<br>-<br>(2,914)<br>-<br>(2,000)|
|---|---|
||-<br>(4,914)<br>(54,211)<br>(90,367)<br>(54,211)<br>(90,367)<br>27,025<br>(12,834)<br>28,526<br>41,360|
||55,551<br>28,526|



12 



## **THE PRIORY CHARITY** 

## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022** 

## **1. General information** 

The Priory Charity is a charity registered in England and Wales. Its Registered Office is Ware Priory, High Street, Ware, Hertfordshire, SG12 9AL. Its Charity number is 273022. 

## **2. Accounting policies** 

## **2.1. Basis of preparation of financial statements** 

The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 September 2018), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act. 

The Priory Charity meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy. 

The financial statements have been prepared to give a "true and fair" view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a "true and fair" view. This departure has involved following Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) issued on 16 July 2014 (Charities SORP FRS 102) rather than the Accounting and Reporting by Charities: Statement of Recommended Practise effective from 1 April 2005 which has since been withdrawn. 

The consolidated statement of financial activities (SOFA) and consolidated balance sheet consolidate the financial statements of the Charity and its subsidiary undertaking. The results of the subsidiary are consolidated on a line by line basis. 

The Charity's functional and presentational currency is pounds sterling 

## **2.2. Going concern** 

The Trustee has assessed whether the use of going concern is appropriate, i.e. whether there are any 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 Trustee believes that the forecasted results and good level of cash flow of the charity together with the measures taken to date will enable the charity to continue as a going concern and, as a result, do not include any adjustments that would result if the charity was not able to continue as a going concern. 

13 



## **2.3. Income** 

All income is recognised 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. 

Grants are included in the consolidated statement of financial activities on a receivable basis. The balance of income received for specific purposes but not expended during the period is shown in the relevant funds on the balance sheet. Where income is received in advance of entitlement of receipt, its recognition is deferred and included in creditors as deferred income. Where entitlement occurs before income is received, the income is accrued. 

## **2.4. Expenditure** 

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use. 

Expenditure on charitable activities is incurred on directly undertaking the activities which further the Group's objectives, as well as any associated support costs. 

All expenditure is inclusive of irrecoverable VAT. 

## **2.5. Tangible fixed assets and depreciation** 

Tangible fixed assets costing £1 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably. 

Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives, using the straight-line method 

Depreciation is provided on the following bases: 

|Fletcher’s Lea (freehold and buildings)|-50 years|
|---|---|
|Priory Bridges|-25 years|
|Fixtures and fittings|-10 years|
|Lido|-15 years|



## **2.6. Investments** 

Investments in subsidiaries are valued at cost less provision for impairment. 

14 



## **2.7. Debtors** 

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

## **2.8. Cash at bank and in hand** 

Cash at bank and in hand includes 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. 

## **2.9. Liabilities and provisions** 

Liabilities are recognised when there is an obligation at the balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. 

Liabilities are recognised at the amount that the Charity anticipates it will pay to settle the debt or the amount it has received as advance payments for the goods or services it must provide. 

Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the consolidated statement of financial activities as a finance cost. 

## **2.10. Financial instruments** 

The Charity's financial assets and liabilities include trade debtors, amounts owed by group undertakings, trade creditors, accruals and a loan. 

Trade debtors and amounts owed by group undertakings are initially measured at the transactions price and are subsequently measured at amortised cost, being the transaction price less any amounts settled and any impairment losses. 

Trade creditor and accruals are initially measured at the transaction price and are subsequently measured at amortised costs, being the transaction price less any amounts settled. 

Other loans are initially measured at the transaction price, including transaction costs, and are subsequently measured at amortised cost using the effective interest method. 

## **2.11. Fund accounting** 

General funds are unrestricted funds which are available for use at the discretion of the Trustee in furtherance of the general objectives of the Group and which have not been designated for other purposes. 

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Group for particular purposes. The costs of raising and administering such funds are charged 

15 



against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements. 

## **3. Critical accounting estimates and areas of judgment** 

Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. 

Critical accounting estimates and assumptions: 

The Charity makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year. 

## **4. Income from donations and legacies** 

|Unrestricted<br>funds<br>Restricted<br>funds<br>2022<br>2022<br>£<br>£<br>Ware Town Council subsidy<br>388,048<br>-<br>Donations<br>-<br>-<br>Grants<br>-<br>-<br>Total<br>388,048<br>-<br>Unrestricted<br>funds<br>Restricted<br>funds<br>2021<br>2021<br>£<br>£<br>Ware Town Council<br>25,000<br>-<br>Donations<br>11<br>-<br>Grants<br>-<br>-<br>Total<br>25,011<br>-|Total<br>funds<br>2022<br>£<br>388,048<br>-<br>-<br>388,048|Total<br>funds<br>2022<br>£<br>388,048<br>-<br>-<br>388,048|
|---|---|---|
|||Total<br>funds<br>2021<br>£<br>25,000<br>11<br>-<br>25,011|



16 



## **5. Income from charitable activities** 

|||Unrestricted|Total|
|---|---|---|---|
|||funds|funds|
|||2022|2022|
|||£|£|
|Income|from charitable activities|0|0|
|||Unrestricted|Total|
|||funds|funds|
|||2021|2021|
|||£|£|
|Income|from charitable activities|0|0|
|**6.**|**Income from other trading activities**|||
|**Income from non charitable trading activities**||||
|||Unrestricted|Total|
|||funds|funds|
|||2022|2022|
|||£|£|
||Sales|370,769|370,769|
|||Unrestricted|Total|
|||funds|funds|
|||2021|2021|
|||£|£|
||Sales|129,302|129,302|



17 



## **7. Analysis of expenditure by activities** 

|**2022**<br>Charitable expenditure<br>Raising funds<br>Total<br>**2021**<br>Charitable expenditure<br>Raising funds<br>Total<br>**8.**<br>**Analysis of Support costs**<br>Staff recharges from Ware Town Council<br>Repairs, maintenance and other sundry items<br>Training<br>Telephone<br>Depreciation<br>Bank charges and general administration<br>Interest<br>Governance costs<br>Total<br>**9.**<br>**Auditors' remuneration**<br>Fees payable to the Charity's auditor for the audit of the Charity's<br>annual accounts<br>Fees payable to the Charity's auditor in respect of:<br>All Non-audit services not included above|Direct<br>Costs<br>£<br>114,833<br>235,457<br>350,290<br>Direct<br>Costs<br>£<br>6,161<br>40,437<br>46,598<br>2022<br>£<br>99,782<br>99,782<br>2022<br>£<br>Nil<br>Nil|Support<br>Costs<br>£<br>0<br>Support<br>Costs<br>£<br>108,086<br>57,912<br>165,998|
|---|---|---|
||||
|||2021<br>£<br>59,437<br>33<br>96,229<br>7,385<br>2,914<br>165,998|
|||2021<br>£<br>11,600<br>6,941|



18 



## **10. Staff Costs** 

|**10.**<br>**Staff Costs**|||||
|---|---|---|---|---|
||Group|Group|Charity|Charity|
||2022|2021|2022|2021|
||£|£|£|£|
|Recharge of Wages and Salaries|99,782|59,437|0|2,104|



## **11. Trustee's remuneration and expenses** 

During the year, the Trustee did not receive any remuneration or other benefits (2021 - £NIL). 

## **12. Tangible fixed assets** 

## **Group and Charity** 

|**Cost or valuation**<br>At 1 April 2021<br>Additions<br>At 31 March 2021<br>**Depreciation**<br>At 1 April 2021<br>Charge for the year<br>At 31 March 2022<br>**Net book value**<br>At 31 March 2022<br>At 31 March 2021||Freehold<br>property<br>Fixtures and<br>fittings<br>£<br>£<br>3,832,117<br>263,640<br>0<br>0<br>3,832,117<br>263,640<br>Freehold<br>property<br>Fixtures and<br>fittings<br>£<br>£<br>671,290<br>161,351<br>69,294<br>26,937<br>740,584<br>188,288|Freehold<br>property<br>Fixtures and<br>fittings<br>£<br>£<br>3,832,117<br>263,640<br>0<br>0<br>3,832,117<br>263,640<br>Freehold<br>property<br>Fixtures and<br>fittings<br>£<br>£<br>671,290<br>161,351<br>69,294<br>26,937<br>740,584<br>188,288|Total<br>£<br>4,095,757|Total<br>£<br>4,095,757|
|---|---|---|---|---|---|
|||||0<br>4,095,757||
||||||Total<br>£<br>832,641|
||||||96,231<br>928,872|
|||||||
|||3,091,533|75,352|3,166,885||
|||||||
|||3,160,827|102,289|3,263,116||



19 



## **13. Fixed asset investments** 

||Investments|
|---|---|
||in subsidiary|
||companies|
|**Charity**|£|
|**Cost or valuation**||
|At 31 March 2021|1|
|At 31 March 2022|1|
|**Net book value**||
|At 31 March 2021|1|
|At 31 March 2022|1|



## **Principal subsidiaries** 

The following was a subsidiary undertaking of the Charity: 

|||**Registered office or**||
|---|---|---|---|
||**Company**|**principal place of**||
|**Name**|**number**|**business**|**Principal activity**|
|Ware Priory Trading<br>Limited|07669193|The Priory, High Street,<br>Ware, Hertfordshire, SG12<br>9AL|Letting out of office space<br>and hire of facilities for<br>events.|



## **Included in Holding consolidation** 

100% Yes 

The financial results of the subsidiary for the year were: 

|esults of the subsidiary for the year were:<br>Income<br>Expenditure<br>Profit/(Loss) for the year<br>Net Liabilities|2022<br>2021<br>£<br>£<br>370,900<br>129,302<br>255,588<br>118,349<br>115,312<br>10,953<br>(75,999)<br>191,311|
|---|---|



20 



## **14. Debtors** 

|Group<br>2022<br>**Due within one year**<br>£<br>Trade debtors<br>(12,743)<br>Amounts owed by group undertakings<br>-<br>Other debtors<br>(2,627)<br>Prepayments and accrued income<br>20,629<br>Total<br>5,259|Group<br>2021<br>£<br>666<br>-<br>61,529<br>-<br>62,195|Charity<br>2022<br>£<br>(390)<br>84,820<br>(3,788)<br>19,792<br>100,434|Charity<br>2021<br>£<br>-<br>84,820<br>19,811<br>-<br>104,631|
|---|---|---|---|



## **15. Creditors: Amounts falling due within one year** 

|**Due within one year**<br>Loan from Ware Town Council<br>Trade creditors<br>Creditor - Ware Town Council<br>Other taxation and social security<br>Accruals and deferred income<br>Total|Group<br>2022<br>£<br>9,351<br>7,917<br>343<br>-<br>64,725<br>82,336|Group<br>2021<br>£<br>63,562<br>1,297<br>537,427<br>-<br>14,720<br>617,006|Charity<br>2022<br>£<br>9,351<br>61<br>60,344<br>-<br>390<br>70,146|Charity<br>2021<br>£<br>63,562<br>-<br>389,004<br>-<br>390<br>452,956|
|---|---|---|---|---|



Ware Town Council, the Sole Trustee, has provided loan financing to the Charity, this is on a back to back arrangement with loans raised by the Town Council from the Public Works Loan Board (PWLB). The loan principal of £500,000 was agreed on 15 March 2006. The loan attracts interest at a fixed rate of 4.5% per annum. A further loan of £300,000 was agreed in January 2007 at a fixed rate of interest of 5.15%. An additional loan of £200,000 was drawn down in October 2007 at a fixed interest rate of 5.05%. The loans are repayable by half-yearly annuity over a period of 15 years and 6 months. 

|months.|||
|---|---|---|
||Group|Group|
||2022|2021|
||£|£|
|Deferred income at 1st April|390|16,884|
|Resources deferred during the year||390|
|Amounts released from previous periods||(16,884)|
|Total|390|390|



Deferred income relates to receipts received in advance of venue hire bookings. 

21 



## **16. Creditors: Amounts falling due after more than one year** 

||Group|Group|Charity|Charity|
|---|---|---|---|---|
||2022|2021|2022|2021|
||£|£|£|£|
|Loan from Ware Town Council|-|-|-|-|
|Included within the above are amounts falling due as follows:|||||
||Group|Group|Charity|Charity|
||2022|2021|2022|2021|
||£|£|£|£|
|**Between one and two years**|||||
|1-2 yrs|-|-|-|-|
|**Between two and five years**|||||
|2-5 yrs|-|-|-|-|



|**17.**<br>**Statement of funds**<br>**Statement of funds - current year**<br>Balance at 1<br>April 2021<br>**Unrestricted funds**<br>Reserves<br>2,736,831<br>**Restricted funds**<br>Nil<br>Total of funds<br>2,736,831<br>**Statement of funds - prior year**<br>Balance at 1<br>April 2020<br>**Unrestricted funds**<br>Reserves<br>2,814,462<br>**Restricted funds**<br>MUGA Project<br>NIL<br>**Total of funds**<br>2,814,462|Income Expenditure<br>Transfers<br>in/out<br>Balance at<br>31 March<br>2022<br>758,817<br>(350,290)<br>-<br>3,145,358<br>Nil<br>Nil<br>Nil<br>758,817<br>(350,290)<br>-<br>3,145,358<br>Income Expenditure<br>Transfers<br>in/out<br>Balance at<br>31 March<br>2021<br>134,966<br>(212,597)<br>-<br>2,736,831<br>NIL<br>NIL<br>-<br>Nil<br>134,966<br>(212,597)<br>2,736,831|
|---|---|



22 



## **18. Summary of funds** 

## **Summary of funds - current year** 

|**Summary of funds - current year**|||
|---|---|---|
|Balance at 1<br>April 2021<br>General funds<br>2,736,831<br>Restricted funds<br>Nil<br>Total funds<br>2,736,831<br>**Summary of funds - prior year**<br>Balance at 1<br>April 2020<br>General funds<br>2,814,462<br>Restricted funds<br>-<br>Total funds<br>2,814,462|Income<br>Expenditure<br>Transfers<br>in/out<br>758,817<br>(350,290)<br>-<br>Nil<br>Nil<br>758,817<br>(350,290)<br>-<br>Income<br>Expenditure<br>Transfers<br>in/out<br>134,966<br>(212,597)<br>-<br>-<br>-<br>134,966<br>(212,597)<br>-|Balance at<br>31 March<br>2022<br>3,145,358<br>Nil<br>3,145,358|
|||Balance at<br>31 March<br>2021<br>2,736,831<br>-<br>2,736,831|



23 



## **19. Analysis of net assets between funds** 

Analysis of net assets between funds - current period 

|Unrestricted<br>funds<br>Restricted<br>funds<br>2022<br>2022<br>Tangible fixed assets<br>3,166,885<br>-<br>Current assets<br>60,810<br>-<br>Creditors due within one year<br>(82,336)<br>-<br>Creditors due in more than one year<br>-<br>-<br>Total<br>3,145,359<br>-<br>Analysis of net assets between funds - prior year<br>Unrestricted<br>funds<br>Restricted<br>funds<br>2021<br>2021<br>Tangible fixed assets<br>3,263,116<br>-<br>Current assets<br>90,721<br>-<br>Creditors due within one year<br>(617,006)<br>-<br>Creditors due in more than one year<br>-<br>-<br>Total<br>2,736,831<br>-|Total<br>funds<br>2022<br>3,166,885<br>60,810<br>(82,336)<br>-<br>3,145,359|
|---|---|
||Total<br>funds<br>2021<br>3,263,116<br>90,721<br>(617,006)<br>-<br>2,736,831|



24 



## **21. Analysis of cash and cash equivalents** 

||||Group|Group|
|---|---|---|---|---|
||||2022|2021|
||||£|£|
|Cash|in hand||55,551|28,526|
|Total|cash and cash equivalents||55,551|28,526|
|**22.**|**Analysis of changes in net debt**||||
|||At 1 April||31 March|
|||2021|Cash flows|2022|
|||£|£|£|
|Cash|at bank and in hand|28,526|27,025|55,551|
|Debt|due within 1 year|(63,562)|54,211|(9,351)|
|Debt|due after 1 year|||.|
|||(35,036)|81,236|46,200|



## **23. Operating lease commitments** 

At 31 March 2021 the Group and the Charity had commitments to make future minimum lease payments under non-cancellable operating leases as follows: 

|payments under non-cancellable operating leases as follows:|||
|---|---|---|
||Group|Group|
||2022|2021|
||£|£|
|Equipment lease|||
|Not later than 1 year|-|4,274|
|Later than 1 year and not later than 5 years|-|-|
|Total|-|4,274|



25 



## **24. Operating lease receivables - Group as lessor** 

The Priory Charity rents out the Garden room under an operating lease, commencing from 13 December 2019. At the Balance sheet date the following future minimum lease amounts are contractually receivable from tenants: 

|December 2019. At the Balance sheet date the following future minimum lease amounts are<br>contractually receivable from tenants:||
|---|---|
|Not later than 1 year<br>Later than 1 year but not later than 5 years|Group<br>2022<br>£<br>8,400<br>14,292|
||22,692|



## **25. Related party transactions** 

Ware Town Council is related to The Priory Charity by virtue of being the Trustee of the charity. 

During the year Ware Town Council (the Trustee) paid the Charity a subsidy of £388,048 (2021 £25,000). At the year end, and included within trade debtors, was an amount of £Nil (2020: £Nil) receivable from the Ware Town Council. 

Ware Town Council recharged salaries to the Charity and Ware Priory Trading Limited, a wholly owned subsidiary of the Charity, of £99,782 (2021 £59,437). At the year end, the group owed Ware Town Council £343 (2021 £25,000) which is included in trade creditors. 

In addition to the amount included within Trade Creditors the group also owed £9,351 in respect of a term loan advanced to it by the Town Council (2021 £63,562). 

26