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2020-12-31-accounts

THE FRIENDS OF MALVERN PRIORY (Registered Charity Number 503383)

Financial Statements for the year ended

31 December 2020

KENDALL WADLEY LLP

Chartered Accountants

MALVERN WORCESTER

THE FRIENDS OF MALVERN PRIORY

Financial Statements for the year ended

31 December 2020

Contents

Page 1 Reference and administration information
2-4 Report of the Trustees
5-7 Auditor's Report
8 Statement of Financial Activities
9 Balance Sheet
10 Statement of Cash Flows
11-18 Notes to the Financial Statements

Page 1

THE FRIENDS OF MALVERN PRIORY

CHARITY NUMBER
TRUSTEES:
Principal Officers
Ex-Officio PCC Members
Other Trustees
PRINCIPAL OFFICE
AUDITORS
BANKERS
INVESTMENT MANAGERS		 503383
P.J. Chappell
Mrs A.E. Eglington
Acting Chairman (22 October to 9 December 2020)
R. Boyer
Secretary (to 25 July 2020)
M. Eglington
Acting Secretary (25 July to 9 December 2020)
Mrs M. Rowswell
D.R. Valentine
Treasurer
Rev'd R. Corke
Vicar
J.J. Tudge
Dr D.R.P. Guy
N.J. Paulley
Churchwarden
H.J. Wells
Mrs A.E. Eglington
(to 22 October 2020)
J.F. Wray
(from 30 November 2020)
P. Babb
(to 9 December 2020)
Mrs M. Campbell
M. Eglington
Ms J.M.I. Hill
(from 9 December 2020)
F.A.R. Huntley
Ms M.E. Nance
R.W.B. Sutton
P. Young
(to July 2020)
Church House
Church Street
Great Malvern
WR14 2AY
Kendall Wadley LLP
Granta Lodge
71 Graham Road
Great Malvern
WR14 2JS
Barclays Bank Plc
2 Worcester Road
Great Malvern
WR14 4QR
CCLA Investment Management
& C.O.I.F Charities Deposit Fund
85 Queen Victoria Street
London
EC4V 4ET
Investec Wealth & Investment
2 Gresham Street
London
EC2V 7QP
Secretary (from 9 December 2020)
Churchwarden (to 22 October 2020)
Churchwarden (from 22 October 2020)
REFERENCE AND ADMINISTRATIVE INFORMATION
Chairman (to 22 October 2020)
Chairman (from 9 December 2020)

Page 2

THE FRIENDS OF MALVERN PRIORY

STRUCTURE, GOVERNANCE AND MANAGEMENT

The Friends of Malvern Priory ("The Friends" or "the Charity") is operated under the rules of its Constitution dated 16th July 1949 and amended on 14th May 2014 and 9th December 2020. The Charity was registered with the Charity Commission under charity number 503383, on 13 November 1974.

The management of the Charity is the responsibility of the Council, which is presided over by a Chairman, Honorary Secretary and Honorary Treasurer who are elected annually by members at the Annual General Meeting (normally held in June, but in 2020 the AGM was delayed until 9th December due to the Covid pandemic).

Other members of the Council are (a) five ex-officio members of the Parochial Church Council of Malvern Priory ("the PCC") the Vicar, the two Churchwardens plus two others and (b) a maximum of six and no fewer than four other members elected at an AGM to serve for four years. The ex-officio members are not entitled to vote on decisions on making grants to the PCC.

New trustees are formally advised of their responsibilities as trustees of a registered charity and to read in particular the Charity Commission's Trustee Welcome pack and CC3 and CC3a; their attention is also drawn to other Charity Commission publications and to the Friends' Constitution which highlights some of the main responsibilities of trustees.

The Friends has a close relationship with the PCC, to whom grants are made in accordance with the Charity's Objects.

REPORT OF THE TRUSTEES

The Trustees present their Report and Accounts for the year ended 31 December 2020.

Objects

During the year, the Constitution was amended to bring it into line with the current activities undertaken, especially the operation of the Shop. The Objects of the Charity were expanded to include the promotion of the Priory's musical tradition and the fostering of public interest in the Priory. Also, the opportunity was taken to subsume the Radford Bequest sub-committee into the main Council; and to amend/define/clarify which Officers may or may not be members of the Priory PCC, the notice required for meetings, what constitutes a quorum at Council meetings, voting procedures, etc. As required by charity law, the proposed changes in the Objects and the Dissolution Procedure were approved by the Charity Commission. Subsequently, all the amendments were approved unanimously by members at the AGM in December 2020.

The Objects of the Friends now are:

Page 3

THE FRIENDS OF MALVERN PRIORY

REPORT OF THE TRUSTEES (Cont'd)

Public Benefit: Achievement & Performance

To quote the Chairman at the AGM in December: "What a year we have had! What challenges there have been and what challenges lie ahead! Never before have the Priory doors been closed for months followed by severely restricted numbers once they opened again. Who could have imagined that this would be the story of 2020? But the Priory building lives on and continues to be a focus for the town of Malvern - floodlit after dark, and currently open for visitors and for people to enter for prayers and some peace and sanctuary. The monks survived the Black Death in the C14th, which should encourage us all today."

In a more normal year, the first Object would have been achieved by offering guided tours of the building to the public; holding an annual Heritage & Faith lecture about aspects of the Priory's history; producing and selling guide books about the building and its contents; and encouraging the public to come to the building for the Lunch Box programme of lunch-time concerts and talks. However, from March onwards, the Covid pandemic in 2020 all but stopped these activities.

Since its foundation in 1949, the Friends has been focused on the preservation of the heritage of the Priory, founded in 1085, and now incorporating, amongst other important features, some of the finest English medieval and Victorian stained glass in Europe. The Priory is a notable attraction to tourists, both from the UK and from overseas, which in turn contributes significantly to the local economy. It is unlikely the congregation of the Priory could afford the upkeep without the help of the Friends.

The second Object was not particularly affected by Covid. The Friends made grants to the PCC of Malvern Priory for six relatively minor maintenance items totalling £10,645 (2019 - £22,863. See Financial Statement Note 7) .

However, promotion of the Priory's musical tradition was significantly curtailed by Covid. The annual Friends' evensong and Community Carol Service both had to be cancelled. But the Friends was able to support the production of a CD recorded by the Priory Choirs and sell copies via the Friends' Shop when it was able to be open.

The Friends' Shop, which provides a welcoming presence to visitors, is located in the Priory and, inter alia, offers information about the building and its origins. Due to Covid, the Priory and hence the Shop were closed to visitors for much of the year. This impacted on the Shop's profit for the year which was £2,000 (2019 - £7,000): this amount was granted to the PCC (see Financial Statement Note 7)

No staff were furloughed during the year because the Friends has no paid staff. However, because of Covid, some of the volunteers in the Shop were reluctant to risk potential exposure to the virus.

Covid has also restricted enrolment of new members.

On a positive note, the decision to hold the AGM by video-conference was a success. It attracted twice as many members as the previous year and included members from further afield in the UK as well as from abroad.

Financial Review

During the year expenditure exceeded income by £1,567 (2019 - income exceeded expenditure £342,251) prior to investment losses of £2,012 (2019 - gains £43,341). This provided a negative movement in funds of £3,579 (2019 positive movement £385,592).

In April 2019 the Charity received an Endowment legacy of £350,000 from the estate of Charles Eglington. The capital funds, known as The Eglington Bequest, are now invested in CCLA Charities Ethical Investment Fund (see Note 14c).

The restricted fund made a realised gain on the sale of investments in the period of £4,123 (2019 - loss £1,171).

Dividends and treasury interest received in the period amounted to £8,512 (2019 - £11,275) and bank interest of £883 was received (2019 - £1,136).

At 31 December 2020, unrestricted (general) funds £66,496 (2019 - £68,937). Restricted funds £396,745 (2019 - £392,154). Endowment funds £344,272 (2019 - £350,000). Total resources £807,513 (2019 - £811,091).

Page 4

THE FRIENDS OF MALVERN PRIORY

REPORT OF THE TRUSTEES (Cont'd)

Reserves policy

It is the policy of the charity to maintain sufficient reserves within its unrestricted funds to fund its governance costs.

Investment policy

At the year end, 89% of the Radford Bequest was managed by stockbrokers Investec Wealth and Investment who provide quarterly valuations and details of sales and purchases of all investments. The Eglington Bequest was invested in CCLA Charities Ethical Investment Fund (see Note 14c).

During 2021, a sub-committee of the Council will be evaluating future investment policy.

Accounting Policies

The accounts have been prepared in accordance with the accounting policies set out in note 2 to the accounts and comply with the Church of England Measures (the Parochial Church Councils (Powers) Measure 1956 as amended and the Church Representation Rules (contained in Schedule 3 to the Synodical Government Measure 1969, as amended)), the Charities Act 2011 and “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)” (as amended for accounting periods commencing from 1 January 2019)

Principal risks and uncertainties

The Trustees have assessed the major strategic, business and operational risks to which the Charity is exposed, and confirm that systems have been established to enable regular reports to be produced so that the necessary steps can be taken to lessen these risks.

Principal sources of funding

Funds are received from investments as well as from life and annual membership subscriptions and donations, including legacies. The Charity has also published two guidebooks which are sold through The Friends' Shop in the Priory in order to raise funds.

PLANS FOR FUTURE PERIODS

The Charity continues to be in discussion with the PCC as to fund-raising, particularly in the light of the Priory considering a significant development plan for the building.

A drive to increase membership numbers from the current 264 is planned.

Disclosure of information to auditors

Each of the Trustees has confirmed that there is no information of which they are aware which is relevant to the audit, but of which the auditor is unaware. They have further confirmed that they have taken appropriate steps to identify such relevant information and to establish that the auditors are aware of such information.

Approved by the Trustees and signed on their behalf

Mrs A.E. Eglington, Chairman

D.R. Valentine, Hon. Treasurer

Date: 4 May 2021

Page 5

THE FRIENDS OF MALVERN PRIORY

Auditors' Report to

The Friends of Malvern Priory

Opinion

We have audited the accounts of The Friends of Malvern Priory for the year ended 31 December 2020 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and the notes to the accounts, 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 accounts:

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 accounts section of our report. We are independent of The Friends of Malvern Priory in accordance with the ethical requirements that are relevant to our audit of the accounts in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the Trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

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

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

Other information

The Trustees are responsible for the other information.The other information comprises the information included in the annual report, other than the accounts and our auditor’s report thereon. Our opinion on the accounts does not cover the other information and except to the extent otherwise explicitly stated in our report we do not express any form of assurance conclusion thereon.

In connection with our audit of the accounts, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the accounts 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 accounts 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.

Page 6

THE FRIENDS OF MALVERN PRIORY

Auditors' Report to the The Friends of Malvern Priory

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:

Responsibilities of Trustees

As explained more fully in the Statement of Trustees' Responsibilities, the Trustees are responsible for the preparation of the accounts which give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of accounts that are free from material misstatement, whether due to fraud or error.

In preparing the accounts, 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 cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion.

Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and noncompliance with laws and regulations, was as follows:

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

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/Our-Work/Audit/Auditand-assurance/Standards-and-guidance/Standards-and-guidanceforauditors/Auditors-responsibilities-for-audit/Description-of-auditorsresponsibilities-for-audit.aspx. This description forms part of our auditor’s report.

Page 7

THE FRIENDS OF MALVERN PRIORY

Auditors' Report to The Friends of Malvern Priory

Use of our report

This report is made solely to the charity’s trustees, as a body, in accordance with part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an auditors' report and for no other purpose.

To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Elizabeth Needham ACA CTA(VAT) (Senior Statutory Auditor) for and on behalf of Kendall Wadley LLP

Chartered Accountants Statutory Auditor Granta Lodge 71 Graham Road Malvern Worcestershire WR14 2JS

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

Page 8a

THE FRIENDS OF MALVERN PRIORY

Statement of Financial Activities for the year ended 31 December 2020

Note
INCOME AND ENDOWMENTS FROM:
Donations and legacies
3
Other trading activities
Functions
Guide books, CDs and bookshop sales
Church Tours
Investment income
4
Total
EXPENDITURE ON:
Raising funds
6
Charitable activities
Grants payable
7
Governance costs
8
Total
Net income/(expenditure) prior to investments
Net realised gains/(losses) on investments
10
Unrealised gains/(losses) on revaluation of
investments
10
Net income/(expenditure)
being the net movement in funds
Reconciliation of funds:
Total funds at 1 January 2020
Total funds at 31 December 2020
14		 Unrestricted
Restricted
Endowment
Funds
Funds
Funds
2020
£
£
£
5,910
-
-
5,910
-
-
-
-
11,789
-
-
11,789
308
-
-
308
86
9,309
-
9,395
18,093
9,309
-
27,402
9,878
-
-
9,878
9,063
3,582
-
12,645
1,593
4,852
-
6,445
20,534
8,435
-
28,969
(2,441)
874
-
(1,567)
-
4,123
-
4,123
-
(407)
(5,728)
(6,135)
(2,441)
4,590
(5,728)
(3,579)
68,937
392,154
350,000 811,092
66,496
396,745
344,272 807,513		 2019
£
354,509
2,804
28,454
828
12,411
399,006
20,317
29,863
6,574
56,754
342,251
(1,171)
44,512
385,592
425,500
811,092

Page 8b

THE FRIENDS OF MALVERN PRIORY

Statement of Financial Activities

Comparative Data for 2019

for the year ended 31 December 2019

Note
INCOME AND ENDOWMENTS FROM:
Donations and legacies
3
Other trading activities
Functions
Guide books and bookshop sales
Church Tours
Investment income
4
Total
EXPENDITURE ON:
Raising funds
6
Grants payable
7
Governance costs
8
Total
Net income/(expenditure) prior to investments
Net realised gains/(losses) on investments
10
Unrealised gains/(losses) on revaluation of
investments
10
Net income/(expenditure)
being the net movement in funds
Reconciliation of funds:
Total funds at 1 January 2019
Total funds at 31 December 2019
14		 Unrestricted
Restricted
Endowment
Funds
Funds
Funds
2019
£
£
£
£
4,509
-
350,000
354,509
2,804
-
-
2,804
28,454
-
-
28,454
828
-
-
828
248
12,163
-
12,411
36,843
12,163
350,000
399,006
20,317 -
-
20,317
19,863
10,000
-
29,863
1,662
4,912
-
6,574
41,842
14,912
-
56,754
(5,000)
(2,749)
350,000
342,251
-
(1,171)
-
(1,171)
-
44,512
-
44,512
(5,000)
40,592
350,000
385,592
73,937
351,563
-
425,500
68,937
392,154
350,000
811,092

Page 9

THE FRIENDS OF MALVERN PRIORY

Balance Sheet
as at 31 December 2020
FIXED ASSETS
Investments
CURRENT ASSETS
Stock
Debtors
Cash at Bank and In Hand
Creditors:
Amounts falling due within one year
NET CURRENT ASSETS
NET ASSETS
FUNDS
Unrestricted
Restricted
Endowment		 Note
10
13,602
11
770
93,182
______
107,555
12
985
______
14a
14b
14c		 £
£
2020
2019
700,943
348,197
11,481
560
455,547
__
467,588
4,693
_
106,570
462,895
______

807,513
811,092
_
_
66,496
68,937
396,745
392,154
344,272
350,000
_
____
807,513
811,092

Approved by the Trustees on 4 May 2021 and signed on their behalf by:

..................................................

Mrs A.E. Eglington, Chairman of The Friends of Malvern Priory

..................................................

D.R.Valentine, Hon. Treasurer

CHARITY No. 503383

The notes on pages 11 to 18 form part of these financial statements.

Page 10

THE FRIENDS OF MALVERN PRIORY

Statement of cash flows
for the period ended 31 December 2020
Cash flows from operating activities
Net cash used in operations
Cash flows from investing activities
Dividends and interest from investments
Proceeds from sale of investments
Purchase of investments
Net cash provided by investments
Change in cash and cash equivalents in the
reporting period
Cash and cash equivalents at the beginning of
the reporting period
Cash and cash equivalents at the end of the
reporting period		 Note
15
15		 £
£
(17,002)
9,395
117,167
(471,925)
(345,363)
(362,365)
455,547
93,182
2020		 £
£
300,452
12,411
88,923
(94,564)
6,770
307,221
148,326
455,547
2019		 £
£
300,452
12,411
88,923
(94,564)
6,770
307,221
148,326
455,547
2019
307,221
148,326
455,547

Page 11

THE FRIENDS OF MALVERN PRIORY

Notes to the Financial Statements for the year ended 31 December 2020

1. STATEMENT OF RESPONSIBILITIES OF THE TRUSTEES

The Trustees are responsible for preparing the Report of the Friends 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 & Wales requires the trustees to prepare accounts for each financial period which give a true and fair view of the state of affairs of the Charity and of the incoming resources and application of resources of the Charity for that period.

In preparing these accounts, the Trustees are 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;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Charity will continue in operation.

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

In so far as the Trustees are aware:

there is no relevant audit information of which the Charity’s auditors are unaware; and

The Trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information.

2. ACCOUNTING POLICIES

CHARITY INFORMATION

The Friends of Malvern Priory is an unincorporated charity registered in England & Wales (charity number 503383). The principal address is Parish Office, Church Street, Great Malvern, WR14 2AY.

ACCOUNTING CONVENTION

The accounts have been prepared in accordance with the Charities Act 2011 and “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)” (as amended for accounting periods commencing from 1 January 2019). The Charity is a Public Benefit Entity as defined by FRS 102.

The accounts are prepared in sterling, which is the functional currency of the Charity. Monetary amounts in these financial statements are rounded to the nearest £.

The accounts have been prepared on the historical cost convention as modified to include the revaluation of investments at market value. The principal accounting policies adopted are set out below.

GOING CONCERN

At the time of approving the accounts, the Trustees have a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future. Thus the Trustees' continue to adopt the going concern basis of accounting in preparing the accounts.

Page 12

THE FRIENDS OF MALVERN PRIORY

Notes to the Financial Statements for the year ended 31 December 2020

CHARITABLE FUNDS

Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives unless the funds have been designated for other purposes.

Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the accounts.

DONATIONS, GIFTS and LEGACIES

Donations, gifts and legacies are included in the period in which they are receivable, which is when the Charity becomes entitled to the resource. Those items not received at the balance sheet date are included in debtors.

INVESTMENT INCOME

Income from investments is included in the Statement of Financial Activities (SOFA) in the period in which it is receivable.

RESOURCES EXPENDED

Resources expended are recognised in the period in which they are incurred. Resources expended include attributable VAT which cannot be recovered. Those items not settled at the balance sheet date are included in creditors.

Grants are approved by the Trustees in principal but are not payable until the expenditure has been incurred by Malvern Priory PCC and are included in the SOFA at that point.

Governance costs represent costs, attributable to the management of the Charity’s assets, organisational administration and compliance with constitutional and statutory requirements. They are allocated to funds by relevance of the underlying expense.

GRANT MAKING POLICIES

The Restricted Funds

Grants are only made for the preservation and beautification of the fabric of the building.

The Endowment Funds

Endowment funds are to be held as capital and the income generated from them to be used for purposes as specified by the donor.

The Eglington Bequest funds may be used a) for the provision of glass doors at the Priory North West main entrance b) as a permanent endowment of the residual capital with any income allocated for the maintenance of Priory stonework and stained glass.

The General Funds

All grants paid out are requested by Malvern Priory PCC and approved by the Council of The Friends.

FIXED ASSET INVESTMENTS

Fixed asset investments are included at market value at the balance sheet date. Any gain or loss on revaluation is taken to the SOFA.

STOCK

Stock is valued at the lower of cost and net realisable value.

CASH AND CASH EQUIVALENTS

Cash and cash equivalents include cash in hand, deposits held at call with banks and other short-term liquid investments with original maturities of three months or less.

Page 13

THE FRIENDS OF MALVERN PRIORY

Notes to the Financial Statements for the period ended 31 December 2020

FINANCIAL INSTRUMENTS

The Charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised when the Charity becomes party to the contractual provisions of the instrument.

Financial assets are offset, with the net amounts presented in the accounts when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic Financial Assets

Basic financial assets, which include trade and other receivables and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method.

Basic Financial Liabilities

Basic financial liabilities, including trade and other payables, are initially recognised at transaction price.

Derecognition of Financial Liabilities

Financial liabilities are derecognised when the Charity’s contractual obligations expire or are discharged or cancelled.

Page 14

THE FRIENDS OF MALVERN PRIORY

Notes to the Financial Statements for the period ended 31 December 2020

3.
DONATIONS AND LEGACIES
Unrestricted
Restricted
Endowment
£
£
£
Subscriptions
2,070
-
-
Donations
2,119
-
-
Gift Aid on Subscriptions & Donations
721
-
-
Legacies
1,000
-
-
_____
_
_
5,910
-
-
_
_
_
31 December 2019
4,509
-
350,000


_
Grateful thanks are recorded to Mr Ken Earl for his legacy to The Friends.
4.
INVESTMENT INCOME
Unrestricted
Restricted
Endowment
£
£
£
Dividends and interest on listed investments
-
8,512
-
Interest on cash deposits
86
797
-



86
9,309
-

__
_
31 December 2019
248
12,163
-

_

5.
EXPENDITURE
Unrestricted
Restricted
Endowment
£
£
£
Net incoming (resources expended)/resources are stated after
charging:
Audit remuneration
180
805
-
___
___
___
31 December 2019
180
805
-

_
_
6.
RAISING FUNDS
Unrestricted
Restricted
Endowment
£
£
£
Function costs
-
-
-
Guide books
-
-
-
Shop cost of sales
6,722
-
-
CD cost of sales
3,156
-
-
_____
_____
_____
9,878
-
-
_____
_____
_____
31 December 2019
20,317
-

_
7.
GRANTS PAYABLE
Unrestricted
Restricted
All grants are payable to Malvern Priory PCC.
£
£
Contribution from Shop Trading
2,000
-
North porch
Organ Camera
Millennium Window Leaflets
Cleaning North Aisle Floor
Organ Stepper
Priory roof repairs and cleaning
250
2,250
Priory stonework
1,332
Ringing chamber fire escape design
1,450
Priory heating pumps
4,043
Wall cleaning
600
Churchyard water main repair
720
_

9,063
3,582


31 December 2019
19,863
10,000

______		 2020
2019
Total
Total
£
£
2,070
2,470
2,119
1,479
721
560
1,000
350,000
_
_
5,910
354,509
_
_
354,509
_
2020
2019
Total
Total
£
£
8,512
11,275
883
1,136
_

9,395
12,411


12,411

2020
2019
Total
Total
£
£
985
985
___

985

2020
2019
Total
Total
£
£
-
860
-
1,124
6,722
18,333
3,156
-
_____
_
9,878
20,317
_____

20,317
__
2020
2019
Total
Total
£
£
2,000
7,000
-
10,000
-
3,265
-
96
-
5,430
-
4,072
2,500
1,332
1,450
4,043
600
720
__
_
12,645
29,863


29,863
___

Malvern Priory PCC is a related party as described in the report of the Trustees

Page 15

THE FRIENDS OF MALVERN PRIORY

Notes to the Financial Statements

for the period ended 31 December 2020

8.
GOVERNANCE COSTS
Unrestricted Restricted
£
£
Secretarial expenses
568
-
Auditors fees
180
805
Fee charges (Investments)
-
4,047
Shop Manager Expenses
109
-
Insurance
457
-
Marketing Costs
280
-
____
____
1,593
4,852
_
_
31 December 2019
1,662
4,912
_
___		 2020
2019
Total
Total
£
£
568
368
985
985
4,047
4,107
109
605
457
453
280
56
_____
_
6,445
6,574

__
6,574
_____

9. TRUSTEES AND RELATED PARTIES:

None of the Trustees (or any person connected with them) received any remuneration nor were reimbursed expenses during the year.

Donations totalling £1,066 (2019 - £10 ) were received from Trustees during the course of the year.

LISTED INVESTMENTS – RESTRICTED
Balance brought forward 01.01.20
Additions
Disposals
Revaluations
Profit (Loss) on Disposal
Balance carried forward 31.12.20
Cost
Fixed asset investments at market value comprised:
Book Cost
£
UK fixed interest securities
-
UK equities
114,728
Overseas Fixed Interest
27,379
North American equities
17,151
Far East & Australasian equities
19,114
International equities
64,346
UK Property
20,912
Alternative Assets
31,387
Emerging Economies
9,541
European equities
9,867
_
314,425
_		 2020
2019
£
£
348,197
299,215
121,925
94,564
(117,167)
(88,923)
(407)
44,512
4,123
(1,171)
_
_
356,671
348,197
__
_
314,425
312,259
__
_
2020
2019
Value
%
Book Cost
Value
%
£
£
£
-
0.0%
-
-
0.0%
111,100
31.1%
131,012
140,609
40.4%
27,804
7.8%
36,866
37,215
10.7%
18,135
5.1%
15,645
19,481
5.6%
32,127
9.0%
18,980
25,182
7.2%
84,339
23.6%
44,052
54,010
15.5%
22,781
6.4%
18,173
20,160
5.8%
33,050
9.3%
17,711
20,961
6.0%
12,281
3.4%
19,879
19,332
5.6%
15,054
4.2%
9,941
11,247
3.2%
_ _
_
_ _
356,671
100%
312,259
348,197
100%
_ _
_
_ _

10. LISTED INVESTMENTS – RESTRICTED

Page 16

THE FRIENDS OF MALVERN PRIORY

Notes to the Financial Statements for the period ended 31 December 2020

10.
LISTED INVESTMENTS – ENDOWMENT
2020
cont'd
£
Balance brought forward 01.01.20
-
Additions
350,000
Disposals
-
Revaluations
(5,728)
Profit (Loss) on Disposal
-
_
Balance carried forward 31.12.20
344,272
__
Cost
350,000
__
LISTED INVESTMENTS – TOTAL
2020
£
Balance brought forward 01.01.20
348,197
Additions
471,925
Disposals
(117,167)
Revaluations
(6,135)
Profit (Loss) on Disposal
4,123
_
Balance carried forward 31.12.20
700,943
__
Cost
664,425
__
2020
11.
DEBTORS
Unrestricted
Restricted
Total
£
£
£
Income tax on gift aid
720
-
720
Subscriptions due
50
-
50
_


770
-
770
_


12.
CREDITORS: AMOUNTS FALLING
2020
DUE WITHIN 1 YEAR
Unrestricted
Restricted
Total
£
£
£
Audit accrual
180
805
985
Grant to Great Malvern Priory PCC
-
Expenses
-
_


180
805
985
_

_____
13
FINANCIAL INSTRUMENTS
2020
£
Carrying amount of financial assets.
Debt instruments measured at amortised cost
770
Carrying amount of financial liabilities.
measured at amortised cost
985
The endowment fund investments comprise 125,062.53 CCLA COIF Charities Ethical
Investment Fund - Income Units		 2019
£
-
-
-
-
-
_
-
__
-
__
2019
£
299,215
94,564
(88,923)
44,512
(1,171)
_
348,197
__
312,259
__
2019
Total
£
560
-
_
560

2019
Total
£
985
3,500
208
__
4,693
_____
2019
£
560
4,693

Page 17

THE FRIENDS OF MALVERN PRIORY

Notes to the Financial Statements

for the period ended 31 December 2020

14 ALLOCATION OF CHARITY NET ASSETS

The net assets held for various funds are as follows:-

Fixed Asset Net Current 2020
Investments Assets Total
£ £ £
Restricted Funds:- Martin Radford
Bequest		 356,671 38,573 395,244
Eglington Bequest - 1,501 1,501
Endowment Fund Eglington Bequest 344,272 - 344,272
Unrestricted Funds:- General Fund - 66,496 66,496
_ ______ _
700,943 106,570 807,513
_ ______ _
Fixed Asset Net Current 2019
Investments Assets Total
£ £ £
Restricted Funds:- Martin Radford
Bequest		 348,197 43,213 391,410
Eglington Bequest - 745 745
Endowment Fund Eglington Bequest - 350,000 350,000
Unrestricted Funds:- General Fund - 68,937 68,937
_ ______ _
348,197 462,895 811,092
_ ______ _

14a. UNRESTRICTED FUNDS

The Unrestricted Funds are retained as necessary to cover working capital.

14b. RESTRICTED FUNDS

RESTRICTED FUNDS
Balance Incoming Resources Loss on Balance
01.01.20 Resources Expended investments 31.12.20
b/f c/f
£ £ £ £ £
Martin Radford Bequest 391,410 8,553 (8,435) 3,716 395,244
Eglington Bequest 745 756 - - 1,501
_ ______ ______ ______ _
392,155 9,309 (8,435) 3,716 396,745
_ ______ ______ ______ _
Balance Incoming Resources Loss on Balance
01.01.19 Resources Expended investments 31.12.19
b/f c/f
£ £ £ £ £
Martin Radford Bequest 351,563 11,418 (14,912) 43,341 391,409
Eglington Bequest - 745 - - 745
_ ______ ______ ______ _
351,563 12,163 (14,912) 43,341 392,154
_ ______ ______ ______ _

The Friends of Malvern Priory was bequeathed a share of the residue of the estate of Martin Radford who died on 30 January 1982. The funds are restricted in that they can only be used for the preservation and beautification of the fabric of the church.

For details of the Eglington Bequest see Note 14c.

Page 18

THE FRIENDS OF MALVERN PRIORY

Notes to the Financial Statements

14c. ENDOWMENT FUNDS

ENDOWMENT FUNDS
Balance Incoming **Resources ** Gain (Loss) Balance
01.01.20 **Resources ** Expended on 31.12.20
b/f Revaluation c/f
£ £ £ £ £
Eglington Bequest 350,000 - - (5,728) 344,272
_ ______ ______ ______ _
350,000 - - (5,728) 344,272
_ ______ ______ ______ _

The Friends of Malvern Priory was bequeathed the sum of £350,000 in April 2019 as a legacy from the estate of Charles Eglington. The fund known as The Eglington Bequest is for use:

On 30 December 2020 these funds were invested on a longer term basis with CCLA Investment Management COIF Charities Ethical Investment Fund Income Units.

15. RECONCILIATION OF NET (EXPENDITURE)/INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES

Net Income for the reporting period (per SOFA)
Adjustments for:
Unrealised losses/(gains) on investments
Dividends, interest and rents from investments
Realised (losses)/gains on the sale of fixed assets
(Increase)/decrease in stocks
(Increase)/decrease in debtors
Increase/(Decrease) in creditors
Net cash used in operations
Analysis of cash and cash equivalents
Cash in hand
Total cash and cash equivalents		 2020
(3,579)
6,135
(9,395)
(4,123)
(2,121)
(211)
(3,708)
(17,002)
93,182
93,182		 2019
385,592
(44,512)
(12,411)
1,171
(809)
60
(28,639)
300,452
455,547
455,547

16. AUDITORS’ ETHICAL STANDARDS

The relevant circumstances requiring disclosure in accordance with the requirements of APB Ethical Standards – Provisions Available for Small Entities are that, in common with many charities of our size and nature, we use our auditors to assist with the preparation of the accounts.