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2020-12-31-accounts

The Society of Mary and Martha

FINANCIAL STATEMENTS AND ANNUAL REPORT

Year Ended 31 December 2020

The Society of Mary and Martha

Contents

Page
Administrative Information 1
Trustees’ Report 2 - 12
Independent Auditors’ Report 13-14
Statement of Financial Activities 15
Balance Sheet 16
Cash Flow 17
Notes on the Financial Statements 19-31

The Society Of Mary and Martha Report of the Trustees Year Ended 31 December 2020

Administrative Information

Reg charity no 327394
Trustees Rev Canon Dr Lynda Barley
Mr Anthony Day
Mrs Isabel Garty (Chair)
Mr Roger Hands
Miss Hillary Hanson
Mrs Jacky Henretty
Mr Carl Lee
Rev Frank Wright (Vice Chair)
Warden Dr Sarah Horsman
The Sheldon Community Carl Lee
Susan Lee
Hillary Hanson
Jan Kaye
Esther Nyame (from September)
Address Sheldon, Sheldon Lane,
Doddiscombsleigh
Exeter EX6 7YT
Bankers Barclays Bank plc
20 High Street
Exeter EX4 3LL
Arbuthnot Latham
17 Southernhay West
Exeter EX1 PJ
Triodos Bank
Deanery Road
Bristol BS1 5AS
CCLA Senator House
85 Queen Victoria Street
London EC4V 4ET
Auditors Bush & Co Ltd
2 Barnfield Crescent
Exeter EX1 1QT

Key management personnel include all the trustees and the warden

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The Society Of Mary and Martha Report of the Trustees Year Ended 31 December 2020

Introduction

The Trustees submit their Annual Report and Financial Statements for the year ended 31 December 2020. The Trustees confirm that the Annual Report and the Financial Statements of the charity have been prepared so as to comply with the statutory requirements, governing document, and the Charities Statement of Recommended Practice (FRS 102).

The Charity

The Society of Mary and Martha is an independent ecumenical national charity caring for people in Christian ministry at times of stress, crisis, burnout or breakdown. These specialist resources are provided at Sheldon in Devon, and online on the Sheldon Hub. Specialist resources for ministry are set in the context of broadly-based retreat and education resources open to everyone. Sheldon is a converted farm on the edge of Dartmoor that also serves as home to the resident Community whose members carry out this work.

Overview of 2020

We anticipate that readers of this report will primarily want to know how Sheldon is surviving the pandemic and be reassured of future sustainability. We served our beneficiaries online throughout the year, and at Sheldon as fully as possible. There was a 40% shortfall in income related to guests (note 3 plus the self-catering groups). This was successfully counterbalanced by minimising expenditure, making as much use as possible of business grants and the furlough scheme, and some generous donations. We ended the year with a smaller and more focused team ready to pick up bookings and continue adapting to whatever the coming year brings.

The Community’s priorities were to have Sheldon open for guests whenever possible; keep guests, community and staff as safe as possible; enhance non-residential ways to support people in ministry; and stay solvent. Underpinning everything was the intangible value of just continuing to be here and doing our best to hold what trauma therapists call the ‘non-anxious presence’. Friends and guests repeatedly told us how much they valued our prayers and the reminders of our presence from emails and social media posts.

At the start of the pandemic Sheldon acted decisively, cancelling events from 9th March and already fully closed before the national lockdown on the 23rd. Good use was made of the closed months to re-order our premises and our processes.

Private (individual) retreat bookings restarted in June and ran through to the end of the year with the exception of the 3 weeks of lockdown in November. Capacity was reduced by quarantining rooms between guests, but the 200+ opportunities provided were extremely welcome.

We also made an early decision to cancel the large family holiday weeks, the resource-intensive 12,000-mile Service weeks, and the shorter workshop-style bookings. These were all replaced with an expanded schedule of led silent retreats and R5 weeks (Read, Rest, Retreat, Relax, Recuperate). We correctly anticipated these would be the most safe, simple and sustainable provisions in the face of changing and challenging conditions. We were able to run 8 programme weeks between lockdowns and tier restrictions. Capacity was reduced to half by social distancing requirements for meals, but again the opportunities we could provide were much appreciated.

None of the catered or self-catering group bookings were run under the Covid-19 restrictions.

Cancelling and refunding tens of thousands of pounds worth of bookings was a big administrative task in its own right. It was important to give sufficient pastoral time for the associated conversations and correspondence with everyone shocked and disappointed. Sheldon has a loyal

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The Society Of Mary and Martha Report of the Trustees Year Ended 31 December 2020

cadre of regular guests and many held credits for future visits and some generously donated their refunds. New guests found their way to Sheldon when their regular retreat house was closed.

Adapting the premises to improve safety primarily involved investing in space and air circulation. We have increased the capacity of our marquee to be available as needed. In order to keep the rooms socially distanced and feeling uncluttered we bought a shipping container to store all the furniture that cannot currently be used. The main meeting room in the Long Barn had the least natural air circulation so replacement windows were installed to give good cross-ventilation. Six portable UVC air-sanitising units provided another improvement to air quality protecting against the spread of the virus. Over the winter months we completed some hard landscaping to create additional outdoor socialising space around the Pound House. Additional water and electricity access points will make it easier to serve food outdoors or in the marquee as required.

As an online resource, the Sheldon Hub was obviously a major part of Sheldon’s offer throughout the year and especially during lockdown. We also offered some 1:1 support sessions by telephone or Zoom on a responsive basis, but as Sheldon is not structured to provide a stand-alone counselling service we did not specifically look to grow this. There has been opportunity to significantly progress Sheldon’s important campaign for the replacement of the Clergy Discipline Measure which arose out of our pastoral work.

Adapting our processes affected almost every area of our daily work including publicity, bookings T&Cs, signage, guest information packs, cleaning and sanitising routines, preparation and serving of food, arrival and departure protocols, and much more. We had time to get initial systems in place during the first lockdown and then continued to adapt in the light of experience.

We initially had a moratorium on all but the most essential expenditure. As the furlough scheme and government grants for hospitality businesses came into play we were able to take a more pragmatic view but kept a tight rein on expenditure throughout the year. We furloughed staff members as much as possible while the community worked normally throughout.

Fundraising activities and trading were curbed by the pandemic too. We cancelled our open air theatre concerts in good time, and have already cancelled those planned for 2021. With few guests attending reception in person, shop sales have dropped sharply, and with minimal opportunities for socialising bar sales are also well down. Our pandemic fundraising success was the sewing and selling of £5,000 worth of face masks.

We recognise that macro-economic impacts of the pandemic may mean that the biggest financial challenges are still ahead. We are proud of the way Sheldon has responded over this first year. It seems likely that significant operational restrictions will remain in place throughout 2021 at least. Our experience of the banking crisis in 2008 suggests it may several take years to rebuild the former £75,000 worth of group bookings. Sheldon will need to accelerate efforts to build fresh income streams from new types of bookings.

We have managed to slightly build up the modest buffer of reserves with which we started the year and this allows for the possibility of running a budget deficit for the next two years if necessary. Our team is in good heart and we continue to have a strong reputation for providing services that people in ministry need and value. We trust these will stand us in good stead as we sustain and rebuild over the next few years.

Objectives and Activities for the Public Benefit

The charity’s core objective is to deliver resources to people in ministry at a consistently high standard and in a manner that is sustainable for the longer term. Achieving this involves

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The Society Of Mary and Martha Report of the Trustees Year Ended 31 December 2020

The Trustees are mindful of the need to keep pace with external changes, including changes in the nature of ministry within the church; rising expectations regarding the quality of retreat accommodation; food safety including allergies; advances in spiritual and psychological care; advances in information technology capacities and risks; and legislative changes relating to governance, accountability and risk assessment. The Trustees confirm that they have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing the charity's aims and objectives, and in planning future activities and developments.

It is important to view the activities of the charity in a holistic manner. It is structured so as to integrate the values and benefits of community, continuity, participation and balance. Development of a sustainable way of life, openhearted hospitality, stewardship of the natural environment, mutual support online, and engagement with the local community are harnessed for beneficiaries who need normality, balance and perspective in the face of stressful or traumatic experiences. Today’s world is in great need of such rooted expressions of faith, love and commitment.

What the Sheldon Community does

The most important part of the Community’s work is the support of people in ministry going through difficult times. Ministry care is not a single isolated component of the work, but a tight focusing of the broad spectrum of Sheldon’s multi-layered offering. On the surface this approach can appear deceptively low-key and homely but this belies a honed professionalism with deep experience and rigorous attention to detail.

Important ingredients that go to make up the whole Sheldon experience include

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The Society Of Mary and Martha Report of the Trustees Year Ended 31 December 2020

Any one guest will benefit from their own unique combination of some or all of the above. The way Sheldon is routinely run delivers much to many without an explicit deconstruction of which components are needed in any one case. The food is cooked, the grass is cut, the boiler is serviced, the beds are made, the telephone is answered, the prayers are said. Feedback is routinely solicited from all guests and can be striking in revealing the depth and impact of their experience.

The Sheldon Hub – doing healthy ministry together

The Hub is Sheldon’s online resource supporting people in ministry since its launch in 2017. It is a secure and anonymous site hosting a wide range of forum conversations and building up a searchable bank of useful reference resources. No question is too silly to ask, no pain is too great to share, no joy is too trivial to celebrate.

Forums include The Kitchen Table for everyday practical and conversational topics, The Allotment for digging deeper on thorny issues, and The Surgery where people in crisis can request advice and support. The R&D Lab is open to Associate members who train, support and work alongside people in ministry.

There are also some private forums for smaller groups of people with particular shared needs/circumstances. The platform is also proving useful for collaboration with other charities such as St Luke’s Health Care for Clergy who host a private forum for wellbeing officers around the country. The private forum facility also proved useful for Sheldon’s own trustees when they were unable to meet in person.

We are proud of the maturity and supportive tone of the Hub with only occasional Moderator intervention needed although the site is constantly monitored. Sheldon employs a part time staff member to do all the regular ‘housekeeping’ tasks, routine promotions and content curation.

Operational sustainability and development

The charity has shown itself to be agile and resilient through the first year of the pandemic. We have implemented as many ways as possible to continue exercising our core purposes and to maintain financial stability by cutting expenditure and maximising other sources of income. Sheldon’s workforce combines a resident community, salaried staff and volunteers which helped us to be open to guests through periods when many other retreat houses were closed.

The Trustees continue to pay attention to building organisational resilience and to monitor how the charity’s activities are developing to meet the evolving needs of people in ministry. This includes investing in the skills and welfare of the resident Community; building relationships with key trades and suppliers; hardware and software IT resilience; features, content and user experience of the Hub; repairs and upgrades to the Sheldon site; and prudent financial planning for the whole operation.

2020 activities and projects

Beyond the routine running of Sheldon, our 2019 report set out the financial provision we had made for the following plans for 2020 (drafted before the pandemic).

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The Society Of Mary and Martha Report of the Trustees Year Ended 31 December 2020

Personnel

Personnel needs and circumstances have changed in ways we could not have anticipated. Our team worked hard to carry out the charity’s objectives under challenging conditions. Two community members (technical administrator and assistant cellarer) and one long serving staff member (deputy housekeeper) left early in 2020 as already planned. One community member (housekeeper) suffered a serious injury from a fall in March with surgery in August and rehabilitation expected to continue throughout 2021. Two people spent a probationary year exploring community membership with the mutual decision not to continue beyond that. Another member joined community as a probationer in September. We took as much advantage as possible of the job retention (furlough) scheme so staff hours were cut significantly. One long serving staff member (deputy administrator) was made redundant as part of restructuring in the face of the pandemic. The sabbatical for one member has been postponed to 2021. We are currently content to be making the most of the current circumstances by running a somewhat smaller operation with a smaller team (with the associated cost savings). We expect to recruit in future as dictated by Sheldon’s guest capacity and volume increasing again, and are already in preliminary explorations with another person who wishes to test their vocation to community.

Clergy Discipline Measure

In July 2020 the House of Bishops agreed to replace the Clergy Discipline Measure. This was a huge achievement, and a tangible recognition of Sheldon’s dogged persistence in raising the alarm about the harms of the CDM since 2017. Sheldon commissioned Aston University to carry out the first ever independent academic research into the lived experience of CDM. The major survey was carried out in the autumn of 2019 gathering responses from over 5,500 clergy. The data includes over 275,000 words of narrative text and 24 million unique data points for analysis. We circulated emerging findings in May to assist the bishops with their decision making. It is an ongoing challenge to do justice to the data given the sheer scale of the response and the costs of academic expertise. There is also the need to focus energies appropriately now that there is a clear intention to replace the Measure, something that was not remotely being considered when our project started. Volunteer researchers are undertaking a systematic analysis of the textual data to be published in 2021. The Hub continues to serve as a very significant tool for collaboration – there would have been no prospect of replacing the CDM if it hadn’t been for the Hub and Sheldon’s research. Many guests comment appreciatively on this work even if they have not themselves been directly touched by CDM. All Sheldon’s published work, including a “Scope and Purpose” proposal and critiques of the official proposals for replacement can be found linked from www.sheldonhub.org/cdm.

Animal Barn

In the circumstances of 2020 this project was considered a low priority for progression. In 2018 we ascertained through pre-application planning advice that Teignbridge District Council did not have any in principle objections to the conversion of the Animal Barn to create additional units of residential accommodation along with communal facilities. In 2019 a competitive tender based on a bill of quantities resulted in the choice of R J Salter & Sons as preferred partner for second stages of design work and eventual construction (£490,000 over 35 weeks). We expect to proceed to submitting a full planning application during 2021, keeping the project moving forward at a medium priority in step with Sheldon’s pandemic recovery.

The Sheldon Hub

The Hub has really come into its own during the past year. Membership grew organically by 18% to over 2,000 whereas logins increased by nearly 40% to an average of 140 per day. Having already positioned itself as a trusted space with a mature community it was poised and ready to serve its members when the pandemic struck. Clearly it has been an extraordinarily difficult year for clergy and ministers so it has been a privilege to be able to provide a supportive space. With the need to keep up public morale and lead with confidence, many have found it a godsend to hear how others

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The Society Of Mary and Martha Report of the Trustees Year Ended 31 December 2020

are coping, or not. The sense of mutually supportive community has grown deeper. A recent post in a long thread read “Dearest, dearest colleagues.... I’m so sorry that so many of us have been made to feel this way by the institution to which we’ve given everything.” Sheldon’s primary role has been to host the community, observe and follow its needs and curate material through periods of rapid change. This included collaborating with the Tragedy and Congregations project posting their written material and recording a series of video interviews helping to make sense of the pandemic experience. We have also continued refining the major improvements to the Resources functionality that we made in 2019.

Other works and activities during 2020

Sheldon is custodian of a 45 acre site including fields and woodlands which we manage for the benefit of both guests and wildlife.

During the winter of 2019/20 the Long Barn came close to flooding during a couple of periods of heavy rain on saturated ground. During 2020 we spent £5,500 to create a storm drain from the track above the building into a new leaky dam for environmental good practice. The drain has been activated at least 3 times over the winter 2020/21 with no further risks to the Long Barn.

Resurfacing of the woodland path to the Hermitage was carried out at a cost of £2,300 to maintain enjoyable amenity walking in all weathers. Routine maintenance of woodland path steps was also undertaken for safety and good access. Ongoing surveillance and conservative management of mature trees is needed in the face of Ash dieback.

A total of £9,600 was spent over the winter of 2019/2020 on repairs to roofs to the South Wing and the rear of the Farmhouse. £4,000 of this was accounted for in 2020.

Essential repairs to a bathroom cost £4,200 to replace a floor that had rotted as a result of an undetected leak, and some shower rooms in the Pound House were upgraded at a cost of £5,000. Automatic Air Vents were replaced at a cost of £4,000 to prevent a recurrence of internal heating system leaks in the Pound House. £5,000 was spent on redecorating guest accommodation in January 2020. £2,500 was spent on replacing a broken cooker and a broken fire panel. £5,000 was spent on repairing underground water leaks and reducing the risk of recurrence by pro-actively replacing old pipework and installing a pressure reducing valve at the site boundary.

Additional handrails were installed on 3 sets of steps to improve disability access to accommodation. Other practical works were carried out directly in connection with Covid-19 safety for guests. The shipping container for furniture storage cost £3,100. The additional sections of marquee cost £3,800, the six air sterilisation units £6,400 and the replacement windows to ventilate the Long Barn £6,900.

Guests are routinely asked for feedback on their stay and these are always reviewed for ideas for improvements needed whether it’s the strength of the coffee, finding information on the website, the quality of a mattress or a nice place to site a bench. On the rare occasion that something goes wrong with a guest’s booking the community holds a ‘reflect and learn’ exercise as part of our ongoing commitment to consistent quality, standards and safety.

Plans for 2021

The pandemic makes forward planning considerably more challenging. At the time of writing we do not know for how much of the year it will be possible to run which elements of Sheldon’s work with what restrictions. These parameters affect income, so expenditure will be kept under tight control. Within this context our priorities are to

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The Society Of Mary and Martha Report of the Trustees Year Ended 31 December 2020

Risk Assessments

The Trustees have identified the risks to which the charity is exposed, and have established systems to mitigate those risks. The Trustees affirm their ongoing commitment to implementation of all policies.

Fire Safety – a risk assessment has been carried out of the entire premises, supported by staff training and routine checks.

Portable Appliance Testing (PAT) is undertaken biannually for all electrical appliances, plus a rolling programme of five yearly electrical installation certification.

Health and Safety at Work – a risk assessment has been undertaken for all public areas, staff practices and public events, plus product assessment for COSHH.

Employment Legislation – all salaried staff have job descriptions plus induction, disciplinary and grievance procedures in place and receive the statutory paid holiday allowance.

Pensions – contributions for all staff, in line with auto-enrolment rules, are paid into the NEST scheme.

Safeguarding – the Trustees take the safety of children and vulnerable/at risk adults seriously and are committed to safe recruitment procedures and staff training to maintain a high level of vigilance. The Trustees appointed Lynda Barley as Lead Trustee for Safeguarding in 2019 and a scoping exercise was carried out during 2020 to review all policies and procedures during 2021. Confidentiality and Whistleblowing policies are also in place.

GDPR and Cybersecurity – the Trustees appointed and took the advice of an independent assessor in 2017, with further independent assessment in 2020. Changes continue to seek to keep apace with greatest perceived threats.

Governance and Management

The charity’s governing instrument is the Deed of Trust dated 10th February 1987. The charity’s Trustees are elected by majority vote of existing Trustees. Trustees serve for terms of 2, 3 or 5 years and are eligible to stand for re-election when their term expires. The Chair is elected by the Trustees. The Warden is entitled to nominate candidates for consideration by the Trustees. Trustees are given an induction to the running of the charity by the Warden, and trained in the responsibilities of trusteeship by the Chair. The Trustees currently have a minimum of two meetings per year. Where possible these include an overnight visit to give time for in depth discussions. They make their decisions by majority vote. Additional meetings are convened as needed in person or online, with a minimum of four trustees to provide a quorum. The Warden is responsible for all day to day management of the charity and leadership of the Sheldon Community. In order to balance the

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The Society Of Mary and Martha Report of the Trustees Year Ended 31 December 2020

representation the board includes representatives of beneficiaries and the Community. In consideration of relative numbers it was decided in 2014 that non-Community board members should remain in the majority. The Charity Commission have provided helpful advice on this process.

Sheldon Ltd is a subsidiary trading company, wholly owned by the charity, and profits are gift aided to the charity.

The Sheldon Community has its own Rule of Life and domestic decision making which is independent of the Trustees.

Financial Review

Fund Balances and Net Assets

The objects of the charity are delivered through the tangible fixed assets of the Sheldon property with its buildings, land and equipment, plus the intangible fixed asset of the Sheldon Hub. Together these working assets make up the vast bulk of the potentially misleading figure of nearly £5m in total reserves. An appropriate balance for cash flow purposes is held in current accounts, and other current assets are held in one year bonds and deposit accounts with COIF, Arbuthnot Latham and Triodos Bank.

Endowment Fund

The Trustees have established an Endowment Fund to support the ongoing expenses of the day to day ministry and provide greater financial security for the future. Using funds received from unrestricted legacies £100,000 was invested in 2015 and a further £100,000 was added in 2016. Having decided on a cautious and ethical investment policy taking a medium to long term view, the Trustees chose the CCLA COIF Charities Ethical Investment Fund, a diversified long-term fund designed for charities with strong ethical investment requirements. This is felt to be a prudent response to the growing responsibilities of the charity which now carries a retreat centre with a property value of £3.7m, a working community of 6 for whom Sheldon is their only or main home, a staff team, and an online space potentially serving many thousands of people in ministry. It is essential that relatively modest interruptions to cash flow from donations and/or bookings should not have the capacity to jeopardise the stability and survival of the charity.

Borrowing

The charity benefits from £25,000 in interest free loans from supporters (note 14). No new loans were received in the year and £9,500 was repaid.

Reserves

The charity's Reserves policy was adopted in 1998 and reviewed in 2018. The charity holds both Restricted and Unrestricted Reserves. The Unrestricted Reserve is predominantly represented by the land, buildings and equipment at Sheldon, plus the Sheldon Hub.

The trustees aim to maintain free reserves of £912,302 in order to ensure stability and continuity for beneficiaries, capable of covering the following needs:

£160,000 Working capital.Expenditure for running the charity is projected to be about £40,000
per month for the coming year so our working capital reserve would cover
approximatelyfour months of expenditure.

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The Society Of Mary and Martha Report of the Trustees Year Ended 31 December 2020

The Society Of Mary and Martha
Report of the Trustees
Year Ended 31 December 2020
£60,000 Contingency Reserve. To enable a swift response in the face of substantial unexpected
repairs such as a septic tank failure, and to save towards large but infrequent
infrastructure needs such as rethatching of roofs. In 2020 this was £4,000 each for the
South Wingroof repairs and the Ark bathroom repair.
£80,000 Equipment and Vehicles Reserve.This is spread across Administration, Catering,
Housekeeping, Estate and Garden and provides for routine upgrades for everything
needed to run Sheldon for the benefit of guests such as cars, mowers, computer
servers, cookers, greenhouses, etc. It is spent on individual items costing £1,000 -
£10,000 which are depreciated over 5years.
£321,735 Staff Benevolent Reserve.£30,000 was added to the Staff Benevolent Reserve as
budgeted under the Later Years Provision policy. Under the terms of the policy, £5,491
was spent on care needs and £8,954 on contributions to CommunityPensions.
£290,567 Endowment Fund.Established with the help of an unrestricted legacy to help with
longterm stabilityfor the charity.

The total funds held by the charity at the end of the reporting period is £4,910,081. Of this £3,844,516 is held in tangible and intangible fixed assets.

The following commitments and provisions required expenditure to be designated for the year ahead.

£103,564 Animal Barn conversion. £70,000 was allocated by the Trustees in 2018 towards the
conversion of the Animal Barn to residential and other guest facilities, and a further
£40,000 in 2020. £7,436 has been spent so far on survey, design, costing and planning
advice.

All restricted deficits have been covered in the year with transfers from the general (ministry) fund. There are restricted funds of £3,605 bringing the free reserves to £958,396. Reserves held are therefore £46,094 in excess of the policy. In the light of ongoing pandemic-related restrictions on bookings the trustees anticipate a budget deficit of £41,000 in 2021 and potentially similar for 2022.

Ministry (General) Fund Income

The charity’s primary source of income is contributions made by guests staying at Sheldon. One of the charity’s operational strengths is the variety of booking types so we are not dependent on any single income stream. In 2020 there were no group bookings after the pandemic began, and we were only able to run about half of our normal programme events. However, despite being completely closed for several months, our income from private retreats dropped by only 8% overall as we used our available resources to maximise this safest retreat opportunity.

Guest contributions are supplemented by donations from individual supporters, churches and Trusts. Gifts totalling £70,000 were received in the form of standing orders, and others as one off donations. With the £110,000 shortfall in bookings income during 2020 these donations were especially valuable in helping cover routine expenditure. Legacy income fluctuates considerably from year to year and there was none in 2020.

The Clergy Support Trust generously donated £50,000 in restricted funding towards the unrecovered costs of our work with Anglican clergy and their families facing physical and/or mental illness.

We are enormously grateful to all donors for their help in sustaining Sheldon’s ministry through a challenging year.

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The Society Of Mary and Martha Report of the Trustees Year Ended 31 December 2020

The shortfall in bookings income was further mitigated by the Covid-19 business support grants totalling £27,000 and the Coronavirus Job Retention Scheme (furlough) through which we were able to reclaim £34,000 of staff costs. The CJRS covered 80% of the wages of furloughed staff and the charity topped up the remaining 20%.

In normal years there are also supplementary income streams from fundraising events and trading. It was not possible to run any fundraising concerts in the Open Air Theatre. At £4,677, net surplus from the on-site shop and bar was less than half of normal as they are largely dependent on the number of guests and their ability to socialise.

Ministry (General) Fund Expenditure

The Statement of Recommended Practice (SORP) for charities requires our expenditure to be set out in a way that readers may not find easy to understand. Note 6 gives the ‘natural’ categories of our expenditure and shows how they are apportioned against the SORP categories of voluntary income, fundraising and trading, premises costs and charitable activities as shown on the SOFA. The majority of the expenditure (£428,951) is apportioned to ‘Charitable Activities’.

In the face of the pandemic we restricted all non-essential expenditure, as shown by the 23% reduction against 2019. Items such as food and energy are variable costs dependent on occupancy. Some such as insurance and audit are fixed costs regardless of turnover. Where it was possible to defer expenses such as maintenance to grounds and buildings and routine replacements of furniture and equipment then we did so. Staff and community costs include additional expenses associated with redundancy and restructuring in the year. The apparent ‘negative expenditure’ on Project CDM relates to the different accounting years and is explained in note 15.

With hindsight we were a little more cautious on expenditure than we needed to have been and expect to do some catching up work during 2021.

Tangible fixed assets such as vehicles and equipment are depreciated (see note 10a) according to the accounting policies set out in note 1e. Amortisation is the equivalent for the intangible fixed asset of the Sheldon Hub (note 10b). The costs incurred before the Hub went live plus major improvements since are counted as capital and amortised over 5 years. Ongoing development and support costs of the Hub are included on either a direct or apportioned basis.

The charity has a relatively flat pay structure for both staff and community. Key management personnel who are members of the community are remunerated at the same level as other community members. The Warden has a responsibility allowance.

Finances of the Sheldon Hub – doing healthy ministry together

The main costs associated with the Hub are the salary of the Managing Curator/Editor, an apportionment for office overheads and time spent by Community members, and webhosting of the site itself. As part of the effort to keep costs to a minimum during 2020 we did not spend very much on ongoing IT development or advertising.

As the Hub is an integral part of the whole Sheldon ministry it is included under All Unrestricted Funds Charitable Activities on the SOFA. Reasonable efforts are made to separate the expenditure (see note 6) for proper accountability to those who are funding the project. For the first time we ran two ‘crowd funders’ for the Hub among its members. These raised a total of £9,617 and we plan to build on this over the coming year. The first tranche of a generous new multi-year grant of £15,000/year for 4 years from the Drapers’ Company was received in 2020, along with the final tranche of an equivalent grant from the Leathersellers’ Company, and £4,000 from the Association for Promoting Retreats.

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The Society Of Mary and Martha Report of the Trustees Year Ended 31 December 2020

Trustees' Responsibilities in Relation to the Financial Statements

The law applicable to charities in England and Wales requires the trustees to prepare financial statements for each financial year which give a true and fair view of the charity's financial activities during the year and of its financial position at the end of the year. In preparing financial statements giving a true and fair view, the trustees should follow best practice and:

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

BY ORDER OF THE TRUSTEES on Friday 9[th] April 2021

Mrs Isabel Garty ) ) Trustees Rev Canon Dr Lynda Barley )

Patrons of the Society

Major General Sir Christopher Airy Rev Dr Paul Beasley-Murray Rev Professor Richard Burridge Dr Sheila Cassidy Rt Rev’d & Rt Hon Richard Chartres Wing Commander Mike Dudgeon The Very Rev’d Dr Jane Hedges Most Rev’d & Rt Hon Dr David Hope Rev’d Professor Michael Jacobs Sir John James Rev’d Canon Roger Royle Margaret Silf Lay Canon Professor Brian Thorne sec

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Independent Auditors’ Report to the Trustees of The Society of Mary and Martha Year Ended 31 December 2020

Opinion

We have audited the financial statements of The Society of Mary and Martha (the “Charity”) for the year ended 31 December 2020 which comprise the Statement of Financial Activities, the Balance Sheet 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 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.

Use of our report

This report is made solely to the Charityʼs trustees, as a body, in accordance with section 144 of the Charities Act 2011 and the regulations made under section 154 of that Act. Our audit work has been undertaken so that we might state to the Charityʼs trustees those matters we are required to state to them in an auditorʼs 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 Charityʼs trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Conclusions relating to going concern

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

Other information

The trustees are responsible for the other information. The other information comprises the information included in the annual report other than the financial statements and our auditor’s report thereon. 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.

13

Independent Auditors’ Report to the Trustees of The Society of Mary and Martha Year Ended 31 December 2020

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

In the light of the knowledge and understanding of the Charity and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees’ Annual Report.

We have nothing to report in respect of the following matters in relation to which the Charities Act 2011 requires us to report to you if, in our opinion:

Responsibilities of the trustees

As explained more fully in the trustees’ responsibilities statement set out on page 12, 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 they 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.

Our 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.

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.

Bush & Co Limited 2 Barnfield Crescent Chartered Accountants Exeter Statutory Auditors EX1 1QT Date: 9 April 2021

Eligible to act as an auditor in terms of Section 1212 of the Companies Act 2006

14

The Society of Mary and Martha Statement of Financial Activities

Year Ended 31 December 2020

All
Notes
Unrestricted
Funds
£
INCOMING RESOURCES
Donations and legacies
2
159,265
Trading activities
Trading income
11,296
Fundraising events
5,563
Investments
Bank interest
14,125
Donation from Sheldon Ltd
-
Rent
11,300
Charitable Activities
Contributions from guests
3
162,039
Other Income
4
23,122
Covid grants and furlough
5
60,999
_
TOTAL INCOME
447,709
_
RESOURCES EXPENDED
Raising funds
Costs of generating voluntary
income
36,212
Fundraising events & trading:
costs of goods and other costs
16,574
Premises Costs
34,195
Charitable Activities
333,768
_

TOTAL EXPENDITURE
6
420,749
_

Net Income before Investment
(Losses)/Gains
26,960
Net Gains/(Losses)
on Investments
28,095
_

NET INCOME
55,055
Transfers between funds
15
(39,913)
_

Net movement in funds
15,142
Reserves brought forward
4,891,334
_
Reserves carried forward
17
4,906,476
_
All
Restricted
Funds
£
104,075
-
-
-
-
-
-
-
-
_
104,075
_
-
-
-
95,183
_

95,183
_

8,892
-
_

8,892
39,913
_

48,805
(45,200)
_
3,605
_
All
Total
Unrestricted
2020
Funds
£
£
263,340
139,065
11,296
23,737
5,563
24,576
14,125
15,196
-
15,125
11,300
42,500
162,039
228,462
23,122
9,191
60,999
-
_
_
551,784
497,852
_
_
36,212
38,544
16,574
37,629
34,195
42,469
428,951
385,807
_
_

515,932
504,449
_
_

35,852
(6,597)
28,095
53,454
_
_

63,947
46,857
-
(91,877)
_
_

63,947
(45,020)
4,846,134
4,936,354
_
_
4,910,081
4,891,334
_
_
All
Restricted
Funds
£
71,856
-
-
-
-
-
-
-
-
_
71,856
_
-
-
-
167,391
_

167,391
_

(95,535)
-
_

(95,535)
91,877
_

(3,658)
(41,542)
_
(45,200)
_
Total
2019
£
210,921
23,737
24,576
15,196
15,125
42,500
228,462
9,191
-
_
569,708
_
38,544
37,629
42,469
553,198
_
671,840
_
(102,132)
53,454
_
(48,678)
-
_
(48,678)
4,894,812
_
4,846,134
_








There were no acquisitions or discontinued operations in the current or preceding year.

The notes on pages 19 to 30 form part of these financial statements.

15

The Society of Mary and Martha Balance Sheet

As at 31 December 2020

Note
£
FIXED ASSETS
Tangible fixed assets
10(a)
Intangible fixed assets
10(b)
Investments
11
CURRENT ASSETS
Stock for resale
7,788
Debtors and prepayments
12
53,522
Current asset investments
477,006
Cash at bank and in hand
210,977
_
749,293
CURRENT LIABILITIES: Amounts
falling due within one year
Creditors and Accruals
13
75,603
_
NET CURRENT ASSETS
TOTAL ASSETS LESS CURRENT
LIABILITIES
LIABILITIES: Amounts falling due
after more than one year
Long term loans
14
NET ASSETS
THE FUNDS OF THE CHARITY
Unrestricted Reserves
17
Endowment Fund
11
General
Restricted Reserves
15,17
Mrs Isabel Garty


Rev Canon Dr Lynda Barley
 2020
£
£
3,786,994
57,522
411,875
_
4,256,391
9,379
39,674
430,384
244,299
_
723,736
108,677
_
673,690
_
4,930,081
20,000
_
4,910,081
_
290,567
4,615,909
_
4,906,476
3,605
_
4,910,081
__
)
) Trustees
)		 2019
£
3,783,882
97,913
383,780
_
4,265,575
615,059
_
4,880,634
34,500
_
4,846,134
_
273,288
4,618,046
_
4,891,334
(45,200)
_
4,846,134
__

The financial statements were approved by the Trustees on 9[th] April 2021

The notes on pages 19 to 30 form part of these financial statements

16

The Society of Mary and Martha Statement of Cash Flows Year Ended 31 December 2020

Notes
CASH FLOWS FROM OPERATING ACTIVITIES
Net cash provided by (used in) operating activities
1
CASH FLOWS FROM INVESTING ACTIVITIES
Dividends , interest and rents
Proceeds from the sale of fixed assets
Purchase of fixed assets
Purchase of investments
Net movement on current asset investments
Net cash provided by (used) in investing activities
CASH FLOWS FROM FINANCING ACTIVITIES
Repayment of borrowing
Net cash provided by (used in) financing activities
Change in cash and cash equivalents in the reporting period
Cash and cash equivalents at the beginning of the reporting period
Total cash and cash equivalents at the year end
2		 2020
£
28,960
25,425
-
(31,585)
-
(46,622)
_
(52,782)
(9,500)
_
(9,500)
(33,322)
244,299
_
210,977
_		 2019
£
30,741
72,821
8,150
(80,603)
(80,000)
(56,181)
_
(135,813)
(36,000)
_
(36,000)
(141,072)
385,371
_
244,299
_

17

The Society of Mary and Martha Notes to the Statement of Cash Flows Year Ended 31 December 2020

1
RECONCILIATION OF NET INCOME/EXPENDITURE TO NET CASH FLOW
FROM OPERATIVING ACTIVITIES
Net income for the reporting period
(as per the Statement of Financial Activities)
Adjustments for:
Depreciation and amortisation
Dividends, interest and rents
Gain on investments
Loss on sale of fixed assets
(Increase)/decrease in stock
(Increase)/decrease in debtors
(Increase)/decrease in creditors
Net cash provided by (used in) operating activities
2.
ANAYLSIS OF CASH AND CASH EQUIVALENTS
Cash in hand
Notice deposits (less than 3 months)		 2020
£
63,947
68,864
(25,425)
(28,095)
-
1,591
(13,848)
(38,074)
_
28,960
_
1,030
209,947
_
210,977
_		 2019
£
(48,678)
74,694
(72,821)
(53,454)
10,959
4,212
48,775
67,054
_
30,741
_
1,984
242,315
_
244,299
_

18

The Society of Mary and Martha Notes to the Financial Statements Year Ended 31 December 2020

1. Accounting Policies

The following accounting policies have been used consistently in dealing with items which are considered material in relation to the Society's financial statements.

a) Basis of Accounting

The financial statements have been prepared under the historical cost convention except for investments which are held at market value and in accordance with applicable accounting standards and Statement of Recommended Practice "Accounting and Reporting by Charities" (FRS102) effective from 1 January 2016.

The Society of Mary and Martha meets the definition of a public benefit entity under FRS102. Assets and liabilities are initially recognised at historical costs or transaction value unless otherwise stated in the relevant accounting policy notes.

There are no material uncertainties regarding the charity’s ability to continue as a going concern.

b) Incoming Resources

Voluntary income, trading income and fundraising events are accounted for on receipt. Legacies and grants are recognised as income when there is entitlement, it is probable that the income will be received and it can be reliably measured. Where conditions are attached to a grant, income is only deferred where these conditions are outside of the charity’s control or there is uncertainty as to whether the conditions will be met.

Contributions from guests are recognised when the service is delivered. Contributions received in advance are deferred to a later period and are reported as deposits in creditors.

Investment income is accounted for on a receivable basis.

c) Tax Refunds

Tax refunds arise out of the receipt of donations by way of Gift Aid and credit is taken in the accounts in the relevant fund at the time of receipt of the underlying donations.

d) Resources Expended

Expenditure is recognised when it is incurred and is reported gross of related income on the following bases:

Cost of generating funds comprises the costs associated with attracting voluntary income. Charitable activities expenditure comprises direct expenditure including direct staff costs attributable to the charity's activities. Where costs cannot be directly attributed, they have been allocated to activities on a basis consistent with the use of resources as detailed in Note 5. The total expenditure on charitable activities includes support and governance costs as detailed in Note 5. The support and governance expenditure relates to necessary overheads that are not directly related to work with the beneficiaries of the charity.

19

The Society of Mary and Martha Notes to the Financial Statements Year Ended 31 December 2020

e) Depreciation and Fixed Assets

Fixed assets are capitalised at cost and depreciation is calculated so as to write off the cost over their effective useful lives:

tive useful lives:
Fixtures, Fittings & Equipment 20% Straight line
Tractors & Vehicles 25% Reducing balance
Computers 331/3% Straight line

Individual items of equipment with a cost of less than £1,000 are not capitalised but are written off in the year of expenditure unless they are part of a larger project.

No depreciation is provided on the freehold property. It is the Society's policy to regularly incur expenditure on the maintenance and improvement of the property. The Trustees consider that the lives of these assets are so long and their residual value is so high that their depreciation is insignificant.

Major improvements and additions to land and buildings are included in Fixed Assets at cost. The Trustees form an opinion as to whether they result in an addition to the value of the property of an amount less than cost. Where improvements do not increase its value in use, they are charged to the Statement of Financial Activities as an impairment expense.

f) Intangible Fixed Assets

Intangible fixed assets are recognised at cost less accumulated amortisation and impairment loss. They are written off over 5 years from the date that they are brought into use.

g) Investments

Investments are stated at their mid market price ruling at the balance sheet date which gives rise to unrealised gains and losses which are included in the statement of financial activities. Realised gains and losses arising on disposal of investments are separately identified in the statement of financial activities.

h) Debtors

Grants receivable and other debtors are included at the settlement amount due. Prepayments are valued at the amount prepaid.

i) 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 opening of the deposit.

j) Current Asset Investments

Deposits with a maturity date greater than three months and less than one year are held as current asset investments.

k) Creditors and Accruals

Creditors and provisions are recognised where the charity has a present obligation arising 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 accruals are recognised at their settlement amount.

20

The Society of Mary and Martha Notes to the Financial Statements Year Ended 31 December 2020

l) Reserves

The unrestricted reserve represents the main activity of the society. The restricted reserves represent amounts given or raised for the purchase and improvement of the property, the provision of new facilities, or for some other specific purpose. Maintenance of existing facilities is charged to the unrestricted reserve unless funded by a specific restricted reserve. Allocation of overhead expenditure between the reserves is apportioned based upon staff time or usage.

Restricted income expended on capital assets and subject to no further restrictions is transferred to the unrestricted reserve.

Further details of each restricted reserve are provided in Note 15.

m) Pensions

The Society operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the Society.

n) Financial Instruments

2. Donations and Legacies

2020
Unrestricted
Restricted
£
£
Donations
126,654
12,687
Grants
6,236
89,000
Legacies
-
-
Tax refunds
26,375
2,388
_
_

159,265
104,075
_
_
 2019
Total
Unrestricted
Restricted
£
£
£
139,341
102,013
3,181
95,236
1,050
68,000
-
16,400
-
28,763
19,602
675
_
_
_

263,340
71,856
71,856
_
_
_
 Total
£
105,194
69,050
16,400
20,277
_
210,921
_

3. Contributions from Guests

Programme Events
Individual Retreats
Catered groups		 2020
£
62,006
91,617
8,416
_
162,039
_		 2019
£
111,705
99,375
17,382
_
228,462
_

21

The Society of Mary and Martha Notes to the Financial Statements Year Ended 31 December 2020

4. Other Incoming Resources

4.
Other Incoming Resources
Statutory grants
Other Income
Insurance claim income
5.
Covid-19 grants and furlough
Covid-19 business support
Coronavirus Job Retention Scheme		 2020
£
2,751
8,146
12,225
__
23,122
_
2020
£
27,000
33,999

60,999
___		 2019
£
2,733
6,458
-
______
9,191
__
2019
£
-
-
_
-
___

22

The Society of Mary and Martha Notes to the Financial Statements Year Ended 31 December 2020

6. Total Resources Expended

Total Resources Expended
Basis of Voluntary Fundraising Premises Charitable 2020 2019
Unrestricted Allocation Income & Trading Costs Activities Total Total
£ £ £ £ £ £
Staff wages Staff Time 9,069 1,814 4,534 75,271 90,688 71,156
Community allowance, pensions and council tax Staff Time 8,865 1,773 4,433 73,580 88,651 73,741
Guest Leaders and other personnel costs Direct - - - 7,102 7,102 19,359
Food and catering supplies Usage 1,379 276 689 22,544 24,888 34,706
Housekeeping and cleaning Usage 1,157 463 3,470 18,044 23,134 23,113
Building repairs and maintenance 833 333 2,498 12,989 16,653 18,779
Energy and water Usage 1,397 559 4,190 21,790 27,936 35,398
Grounds, gardening and external repairs Usage 1,184 474 3,553 18,475 23,686 56,965
Sheldon Hub direct IT and publicity Direct - - - 10,104 10,104 17,324
Sheldon Hub direct wage costs Direct - - - 27,059 27,059 25,236
Project CDM Direct - - - (15,490) (15,490) 48,855
Insurance Usage 1,452 581 4,357 22,659 29,049 30,736
Technical infrastructure and computing Usage 3,288 658 986 27,945 32,877 34,320
Audit, accountancy and bookkeeping (Note 9) Direct/Usage 2,249 450 675 23,600 26,974 29,478
Legal advice Usage 609 122 183 5,173 6,087 4,242
Office costs, printing and advertising Usage 2,906 94 236 5,131 8,367 12,198
Vehicle maintenance and fuel Usage 400 80 120 3,402 4,002 9,246
Goods for resale (shop and bar) Direct - 6,621 - - 6,621 15,295
Bank Charges Direct - - - 3,173 3,173 3,673
Licenses and other guest facility costs Direct - - - 3,800 3,800 9,053
Fundraising Events Direct - 1,707 - - 1,707 13,314
Depreciation Usage 1,424 569 4,271 22,209 28,473 34,303
Amortisation Direct - - - 40,391 40,391 40,391
Asset disposal Usage - - - - - 10,959
_ _ _ __ _ _
36,212 16,574 34,195 428,951 515,932 671,840
Less:
Attributable to Restricted Funds (see next page) - - - - (95,183) (167,391)
_ _ _ _ _ _
36,212 16,574 34,195 333,768 420,749 504,449
_ _ _ _ _ _

Premises costs relate to the parts of Sheldon used by Sheldon Limited and for which Sheldon Limited pays rent to the Society.

23

The Society of Mary and Martha Notes to the Financial Statements Year Ended 31 December 2020

6. Total Resources Expended (continued)

Transfers Attributable to Restricted Funds

More details on these transactions can be found in Note 15.

The expenditure relating to the Community Fund is included in staff costs.

The costs attributable to the charity’s work for Anglican Clergy are spread across the whole range of categories of expenditure incurred in fulfilling the Society’s charitable purposes. The £50,000 (2019: £54,000) is therefore shown as an allocation from the total expenditure on charitable activities.

The direct Sheldon Hub expenditure covers ongoing expenditure on the IT structure of the resource, the development of content, research and publicity. The apportioned costs relate to staff time allocated to maintaining the Sheldon Hub service.

Basis of
Allocation
Voluntary
Income
Fundraising
& Trading

£
£
Community Fund
Direct
-
-
Anglican Clergy
Apportioned
-
-
Sheldon Hub
-
Direct
-
-
-
Apportioned
-
-
Project CDM
Direct
-
-
Building projects
Direct
-
-
_
_

-
-
_
_
 Premises
Costs


£
-
-
-
-
-

-
_

-
_
 Charitable
Activities
£
3,510
50,000
37,163
20,000
(15,490)

-
_

95,183
_
 2020
Total
£
3,510
50,000
37,163
20,000
(15,490)
-
_

95,183

_
 2019
Total
£
4,976
50,000
42,560
20,000
48,855
1,000
_
167,391
_

7.

Employees’ Remuneration

Included in the resources expended by the Society are costs of providing accommodation and food for the resident members of the community and those living and working alongside the community. Of the 7 (8 from September) members of the community, 5 (6 from September) were paid an allowance and 2 were self-supporting. The average number of full time and part time employees, during the year, including residents, was 26 (2019: 22). The total remuneration excluding food and accommodation costs was:

Gross wages
- community
- other staff
Employer's national insurance
Pension contributions
Statutory redundancy
Council Tax for community members
Training recruitment/miscellaneous staff costs		 2020
£
66,477
115,005
2,171
10,267
3,935
7,077
5,323
_
210,255
_		 2019
£
52,427
98,505
1,073
11,917
-
5,322
10,924
_
180,168
_

There are no employees with emoluments over £60,000.

Aggregate employee-benefits of key management personnel were £26,610 (2019: £28,422).

Trustees’ Remuneration and Expenses

One trustee received remuneration as reported in note 8. (2019: one).

Travel expenses of £202 was paid to one trustee in the year (2019: none).

24

The Society of Mary and Martha Notes to the Financial Statements Year Ended 31 December 2020

8. Related Parties

The Warden of the Society, Sarah Horsman is a director of Sheldon Ltd.

Sheldon Ltd is a wholly owned subsidiary of the charity as detailed in Note 11. Neither the Warden, nor any Trustee, received any income from that company. The company used some of the Society’s facilities on its site at Sheldon and paid for such use. The total paid in 2020 was £5,000 (2019: £42,500). The company gifted £nil (2019: £15,125) to the Society during 2020. At 31 December 2020 the Society neither owed any money to Sheldon Limited (2019 £Nil) nor was owed any money by that company (2019: £Nil ).

Mr Carl Lee, a trustee, and his wife lived on site as part of the community as self-supporting members. They received no salary but living quarters, food and support were provided. Miss Hillary Hanson, a trustee, lived on site as part of the community, receiving living quarters and food as other members of the Community. She received a total remuneration of £12,516 (2019: £12,389).

During the year less than £12,000 (2019: less than £11,000) was paid to the son of Mr Carl Lee and less than £4,000 (2019: less than £3,500) was paid to the daughter of Mr Carl Lee for work at the Sheldon site. The contracts of employment are the same for any other employee of the charity. The Trustees believe that they were paid at less than the market rate. During the year, £3,335 (2019: £3,150) was paid to the son of Mr Carl Lee for the rental of various equipment for use at the Sheldon site.

9. Amounts payable to auditor

Included in the Audit, accountancy and bookkeeping line in note 6 are the following amounts payable to the auditor:

2020 2019
£ £
Audit 4,400 4,200
Other fees payable to Auditor 10,539 14,750

10(a) Tangible Fixed Asset


COST
At 1 January 2020
Additions

At 31 December 2020

DEPRECIATION/IMPAIRMENT
At 1 January 2020
Charge for Year

At 31 December 2020

NET BOOK VALUE
At 31 December 2020

NET BOOK VALUE
At 31 December 2019
 Freehold
Land
& Buildings
Fixtures,
Fittings &
Equipment
Computers
£
£
£
3,977,335
410,413
146,721
11,891
15,122
4,572
_
_
_
3,989,226
425,535
151,293
_
_
_
268,631
377,924
139,187
-
13,107
8,529
_
_
_
268,631
391,031
147,716
_
_
_
3,720,595
34,504
3,577
_
_
_
3,708,704
32,489
7,534
_
_
_		 Tractors
and
Motor
Vehicles
£
109,882
-
_

109,882
_

74,727
6,837
_
81,564
_
28,318
_

35,155
_
 Total
£
4,644,351
31,585
_
4,675,936
_
860,469
28,473
_
888,942
_
3,786,994
___

3,783,882
___

25

The Society of Mary and Martha Notes to the Financial Statements Year Ended 31 December 2020

10(b) Intangible Fixed Assets

Cost at 1 January 2020
Additions
At 31 December 2020
AMORTISATION
At 1 January 2020
Charge for year
Disposals
At 31 December 2020
NET BOOK VALUE
At 31 December 2020
At 31 December 2019		 Hub
£
201,957
-
_
201,957
_
104,044
40,391
-
_
144,435
_
57,522
_
97,913
_

This intangible fixed asset is “The Sheldon Hub – doing healthy ministry together” which is an online support resource provided free of charge to people in ministry www.sheldonhub.org

11. Fixed Asset Investments

Gains/Losses
B/forward Additions on revaluation C/forward
£ £ £ £
Endowment Fund 273,288 - 17,279 290,567
General 110,392 - 10,816 121,208
Sheldon Ltd 100 - - 100
______ ______ _____ ______
383,780
_		 -
______		 28,095
_____		 411,875
_

The Endowment Fund is held in the CCLA COIF Charities Ethical Investment Fund. It was created in 2015 by the Trustees after receipt of two substantial legacies. The purpose of the Fund is to provide greater long term financial stability for the charity.

The charity relies on legacies and donations to cover the shortfall of its income when compared to expenditure incurred. Income generated through the charitable activities, trading income, and investment income from the wholly owned subsidiary company (Sheldon Limited) are all related to the single site at Sheldon. In the event of substantial physical damage to the site, or reputational damage to the Society, there could be a reduction in the voluntary and/or other income, leaving the Society with an excess of expenditure over the remaining income. While insurance should cover some of that liability, it would still leave a potential shortfall.

26

The Society of Mary and Martha Notes to the Financial Statements

Year Ended 31 December 2020

11. Fixed Asset Investments (continued)

Most of the expenditure would be difficult to reduce in the short term, and reductions in some areas could result in additional liabilities, such as where the Society has a responsibility for the welfare of the members of the Community who are also employees of the Society. The property at Sheldon is very extensive and includes several older grade two listed buildings and there are no easy short term options for converting land and buildings into cash.

The Trustees wish to be confident of maintaining the provision of services for the beneficiaries of the Charity and to have adequate provision for the members of the Community and the other employees in the face of these uncertainties. They have, therefore, established their own endowment fund with the object of generating income to help with the excess of expenditure over voluntary and charitable activities income. The capital element of the endowment fund would also be available in the case of major unplanned events. Its existence, therefore, gives valuable additional financial stability to the Charity.

Sheldon Limited. The Society has beneficial ownership of all of the ordinary share capital of Sheldon Limited. These shares were purchased on 25 May 2002 for £100.

The assets and liabilities of the subsidiary Sheldon Ltd at 31 December 2020 were:

Current Assets
Less: Creditors: Amounts falling due within one year
Total Net Assets
Aggregate share capital and reserves		 £
7,270
713
______
6,557
__
3,557
____

The results are not consolidated into these financial statements. Income for the year was £8,659 (2019: £58,210) and after deducting expenditure of £5,718 (2019: £58,171) a profit of £2,941 arises (2019: profit £39). A donation under Gift Aid of £nil (2019: £15,125) was made to the charity and the charity charged Sheldon Ltd rent of £5,000 (2019: £42,500) and this is included as investment income in the Statement of Financial Activities.

If consolidated accounts were prepared, the net income would increase by £2,941 (2019: £39). Activities for generating funds would increase by £8,659 (2019: £58,210), investment income would reduce by £5,000 (2019: £57,522) and cost of generating voluntary income would increase by £718 (2019: £649).

12. Debtors and Prepayment

Tax recoverable
Grants and legacies receivable
Prepayments
Other debtors		 2020
£
15,413
5,000
24,557
8,552
_
53,522
_		 2019
£
4,923
10,000
22,469
2,282
_
39,674
_

27

The Society of Mary and Martha Notes to the Financial Statements Year Ended 31 December 2020

13. Creditors and Accruals

Trade creditors
Taxation and social security
Deposits re future bookings
Accruals
Project CDM
Cancelled booking credits
Interest free loans due in less than one year		 2020
£
6,570
3,541
3,901
38,888
-
17,703
5,000
_
75,603
_		 2019
£
12,511
3,042
30,878
13,466
48,780
-
-
_
108,677
_

14. Long Term Loans

The loans are interest free and repayable as follows:

After 1 year and within 5 years
After 5 years		 2020
£
15,000
5,000
_
20,000
_		 2019
£
29,500
5,000
_
34,500
_

28

The Society of Mary and Martha Notes to the Financial Statements Year Ended 31 December 2020

15. Movement in Reserves

Current Year

General Fund

Endowment


Anglican Clergy
Sheldon Hub
Community Fund
Project CDM




Previous Year

General Fund

Endowment


Anglican Clergy
Sheldon Hub
Community Fund
Project CDM
Building projects



 B/forward
Reserves
£
4,618,046
273,288
_

4,891,334
-
-
3,510
(48,710)
_

(45,200)
________

4,846,134
________

B/forward
Reserves
£
4,705,372
230,982
__

4,936,354
-
(46,518)
4,976
-
-
_

(41,542)
_

4,894,812
__
 Income
Expenditure
£
£
447,709
(420,749)
-
-
_
_________

447,709
(420,749)
50,000
(50,000)
45,345
(57,163)
3,605
(3,510)
5,125
15,490
_
________

104,075
(95,183)
________
________

551,784
(515,932)
________
________

Income
Expenditure
£
£
497,852
(504,449)
-
-
__
___

497,852
(504,449)
50,000
(50,000)
17,201
(62,560)
3,510
(4,976)
145
(48,855)
1,000
(1,000)
_
_

71,856
(167,391)
_
_

569,708
(671,840)
_
_
 Gains

£
10,816
17,279
_

28,095
-
-
-
-
_

-
________

28,095
________

Gains

£
11,148
42,306
__

53,454
-
-
-
-
-
_

-
_

53,454
__
 Transfers

£
(39,913)

-
_

(39,913)

-
11,818
-
28,095
_

39,913
________

-

________

Transfers

£
(91,877)

-
__

(91,877)

-
91,877
-
-
-
_

91,877
_

-

__
 C/forward
Reserves
£
4,615,909
290,567
_
4,906,476
-
-
3,605
-
_
3,605
_
4,910,081
_
C/forward
Reserves
£
4,618,046
273,288
_
4,891,334
-
-
3,510
(48,710)
-
_
(45,200)
_
4,846,134
_

The Sheldon Hub is an online mutual support resource for people in ministry. The project was originally funded by a specific appeal and all income is reported through a restricted reserve.

Ongoing maintenance and development of the Sheldon Hub is reported in resources expended in Note 6. While the Hub appeal continues, costs will continue to be charged to the restricted reserve. The deficit for the year has been covered in full by the general reserve.

29

The Society of Mary and Martha Notes to the Financial Statements Year Ended 31 December 2020

15. Restricted Reserves (continued)

The Anglican Clergy Fund relates to the general work of the Society to support clergy in the Church of England and their families who are experiencing mental and/or physical illness and who may have limited financial resources thus making them unable to meet the full costs of staying at Sheldon. The work of the Society in this area is supported by the very generous grant of £50,000 by the Clergy Support Trust.

The Community Fund represents donations made specifically for the Community and they are distributed through the payroll into the Community’s communal account.

The CDM Project fund relates to academic research into the lived experience of the Clergy Discipline Measure. The full value of the £48,780 research contract was accounted for in 2019 and brought forward as a deficit. However, as the contract was curtailed due to the pandemic, the £15,490 ‘income’ (negative expenditure) represents the portion of the contract no longer due. A grant of £5,000 from the Boniface Trust was set against the balance of £33,290 of expenditure. The remaining deficit at the year end was covered in full by the general reserve.

16. Capital Commitments

At 31 December 2020 the Trustees had outstanding capital commitments of £nil (2019: £5,018). There were also other off-balance sheet commitments of £nil (2019: 4,992)

17. Analysis of Assets and Liabilities between Funds

Current Year
Unrestricted
Restricted
reserves
Endowment
reserves
£
£
£
FIXED ASSETS
¤
Tangible assets
3,786,994
-
-
Intangible assets
57,522
-
-
Investments
121,308
290,567
¤
-
_
_
_

3,965,824
290,567
-
_
_
_

CURRENT ASSETS
Stock
7,788
-
-
Debtors and prepayments
53,522
-
-
Current asset investment
477,006
-
-
Cash at bank and in hand
207,372
-
3,605
_
__
_

745,688
-
3,605
Creditors due within one year
(75,603)
-
-
_
_
_

NET CURRENT ASSETS
670,085
-
3,605
_
_
_

TOTAL ASSETS LESS CURRENT
LIABILITIES
4,635,909
290,567
3,605
Creditors due after one year
(20,000)
-
-
_
_
____

4,615,909
290,567
3,605
_
_
____
 2020
Total
£
3,786,994
57,522
411,875
_
4,256,391
_
7,788
53,522
477,006
210,977
_
749,293
(75,603)
_
673,690
_
4,930,081
(20,000)
_
4,910,081
___

Additional information relating to proposed future application of reserves is reported in the Trustees Report.

30

The Society of Mary and Martha Notes to the Financial Statements Year Ended 31 December 2020

17. Analysis of Assets and Liabilities between Funds (continued)

Previous Year
Unrestricted
Restricted
reserves
Endowment
reserves
£
£
£
FIXED ASSETS
¤
Tangible assets
3,783,882
-
-
Intangible assets
97,913
-
-
Investments
110,492
273,288
-
_
_
_

3,992,287
273,288
-
_
_
____

CURRENT ASSETS
Stock
9,379
-
-
Debtors and prepayments
39,674
-
-
Current asset investment
430,384
-
-
Cash at bank and in hand
240,719
-
3,580
_
__
_

720,156
-
3,580
Creditors due within one year
(59,897)
-
(48,780)
_
_
_

660,259
-
(45,200)
_
_
_

TOTAL ASSETS LESS CURRENT
LIABILITIES
4,652,546
273,288
(45,200)
Creditors due after one year
(34,500)
-
-
_
_
____

4,618,046
273,288
(45,200)
_
_
____
 2020
Total
£
3,783,882
97,913
383,780
_
4,265,575
_
9,379
39,674
430,384
244,299
_
723,736
(108,677)
_
615,059
_
4,880,634
(34,500)
_
4,846,134
___

31