THE FRIENDS OF MALVERN PRIORY (Registered Charity Number 503383)
Financial Statements for the year ended
31 December 2022
KENDALL WADLEY LLP
Chartered Accountants
MALVERN WORCESTER
THE FRIENDS OF MALVERN PRIORY
Financial Statements for the year ended
31 December 2022
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
| CHARITY NUMBER TRUSTEES: Principal Officers Ex-Officio PCC Members Other Trustees PRINCIPAL OFFICE AUDITORS BANKERS INVESTMENT MANAGERS |
THE FRIENDS OF MALVERN PRIORY REFERENCE AND ADMINISTRATIVE INFORMATION |
|---|---|
| 503383 Mrs A.E. Eglington M. Eglington Secretary D.R. Valentine Treasurer Rev'd R. Corke Vicar Dr D.R.P. Guy N.J. Paulley Churchwarden Mrs H.M. Wall J.F. Wray Mrs M. Campbell Mrs J.M.I. Hill F.A.R. Huntley Mrs R. Nixon (from 16 February 2022) Mrs R.M. Rowswell (to 6 April 2022) R.W.B. Sutton Mrs M. Weatherill (from 16 June 2022) 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 One Angel Lane London EC4R 3AB Investec Wealth & Investment 2 Gresham Street London EC2V 7QP Chairman Churchwarden |
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 13th 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).
Other members of the Council are (a) five ex-officio members of the Parochial Church Council of Malvern Priory ("the PCC") viz. 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 2022.
Objects
The Objects of the Friends are:
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To educate the public about the Priory and to foster public interest in the building and its grounds;
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To support the maintenance, restoration and enhancement of the Priory's fabric, furnishings and adornments;
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To promote the Priory's musical tradition for the public benefit.
Page 3
THE FRIENDS OF MALVERN PRIORY
REPORT OF THE TRUSTEES (Cont'd)
Public Benefit: Achievement & Performance
In furtherance of the charity's first object of educating the public about the Priory and fostering public interest in the building, 2022 saw the full reintroduction of Saturday morning guided tours throughout the year as well the provision of a tour guide to answer questions on an ad-hoc basis on one afternoon per week.
An audience of 160 at the annual Heritage and Faith lecture in September heard Professor Sarah Brown, Director of York Glaziers Trust, speak about Great Malvern's Creation Window: the Conservation and Protection of a Medieval Treasure. This was of particular interest because, later in the autumn, the stained-glass of the Creation Window was dismantled and taken to York for cleaning and restoration.
In pursuance of the charity's second object of supporting the maintenance, restoration and enhancement of the Priory's fabric, furnishings and adornments, The Friends on behalf of the Priory PCC applied to three third party grantmaking trusts to assist with the cost of repairing the roof of St. Anne's Chapel. As a result, the PCC received grants from the Garfield Weston Foundation (£20k), the Droitwich Heritage Trust (£10k) and Worcester & Dudley Historic Churches Trust (£1k) towards the total cost of £142k, with The Friends pledging to pay the remaining £111k (£66.6k in 2022; the balance in 2023).
As mentioned above, the stained-glass of the Creation Window was dismantled by York Glaziers Trust in November and taken to York for cleaning and conservation. It is expected that the glass will be re-installed with an environmental protective glazing system sometime in the spring of 2023. The PCC has secured grants from the Headley Trust (£35k) and the Worshipful Company of Glaziers and Painted Glass Artists (£4k) towards the estimated total cost of £127.4k, with The Friends pledging to pay the remaining £88.4k in 2023
In pursuance of the charity's third object of promoting the Priory's musical tradition for the public benefit, The Friends' Choral Evensong in June and Community Carol Service in December were again held to attract members of the local community into the Priory.
The Friends' Shop in the Priory continued to provide a welcoming presence to visitors. Inter alia, it offers information about the building and its origins. From the Shop's surplus £10,000, (2021: £10,000) was granted to the PCC (see financial note 7).
Lunch Box's programme of 14 fortnightly lunch-time concerts and talks in the spring and autumn attracted over 100 at most events.
The Friends' website
Financial Review
During the year expenditure exceeded income by £12,489 (2021 - income exceeded expenditure £135,239) prior to investment losses of £120,835 (2021 - gains £103,813). This provided a negative movement in funds of £133,325 (2021 - positive movement £239,052).
During 2021 the Charity undertook a fundraising campaign to support the restoration of one of the nationally important medieval windows. A new Restricted Fund was opened for this purpose and funds primarily invested in CCLA Ethical Investment Fund (see Note 14). Of the £135,261 in the Window Restricted Fund at end 2022, £88,400 will be used in 2023 to pay for the conservation of the Creation Window.
The restricted funds made realised investment gains in the period of £531 (2021 - gain £27,212).
Dividends and treasury interest received in the period amounted to £24,595 (2021 - £21,092) and bank interest of £197 was received (2021 - £2).
At 31 December 2022, unrestricted (general) funds £77,425 (2021 - £77,945). Restricted funds £493,557 (2021 - £573,736). Endowment funds £342,259 (2021 - £394,885). Total resources £913,241 (2021 - £1,046,566).
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 and during the year surplus cash balances from other funds were also invested in these units. (see Note 14c).
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 is committed to paying grants in 2023 totalling £132.9k ie the remaining balance of £44.5k for repairing the roof of St Anne's Chapel plus £88.4k for the conservation of the Creation Window. This very significant commitment is more than the total of grants made to the PCC over the course of the last 12 years (excluding surpluses from the Shop) and it is unlikely that further grants will be made during 2023. Dependent upon how the Priory Development Plan evolves, the Trustees are expecting to raise further funds in due course for the conservation of more medieval stained-glass windows and their surrounding stonework.
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
----- Start of picture text -----
____
Mrs A.E. Eglington, Chairman
____
D.R. Valentine, Hon. Treasurer
----- End of picture text -----
Date: 27 April 2023
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 2022 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:
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give a true and fair view of the state of the charity’s affairs as at 31 December 2022 and of its incoming resources and application of resources, for the year then ended;
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have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
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have been prepared in accordance with the requirements of the Charities Act 2011.
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:
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the information given in the accounts is inconsistent in any material respect with the Trustees' Report; or
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sufficient accounting records have not been kept; or
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the accounts are not in agreement with the accounting records; or
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we have not received all the information and explanations we require for our audit.
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:
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an understanding of the risk assessment process (including the assessment of the risk of fraud) adopted by the Trustees is obtained and their attitude to risk ascertained
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an assessment of the susceptibility to material mis-statement of the financial statements as a result of management over-ride or fraud is made
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it is ensured that the engagement team have, collectively, the appropriate competence, capabilities and skills to be involved in the assignment, are fully briefed and understand the risks specific to the charity
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processes to test the outcomes of our assessment include, a review of Board minutes, analytical review, substantive testing of significant transactions, work to identify unusual or unexpected accounting entries including the testing of journal entries, information disclosed in the financial statements is traced to supporting documentation. In all instances it is acknowledged that material mis-statements that arise from fraud may involve deliberate concealment or collusion and are, therefore, by their very nature harder to detect than those arising from error.
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an understanding of the legal and regulatory framework as applicable to the charity is obtained together with knowledge of the procedures put in place by the charity in order to comply with the same
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it is established if there have been any instances of non-compliance with applicable laws and regulations, none were identified for this period
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
Date: 27 April 2023
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 2022
| 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 Unrealised gains/(losses) on revaluation of investments 10 Net realised gains/(losses) on investments 10 Net income/(expenditure) being the net movement in funds Total funds at 1 January 2021 Total funds at 31 December 2022 14 |
Unrestricted Restricted Endowment Funds Funds Funds 2022 £ £ £ 5,606 28,918 - 34,524 2,562 - - 2,562 34,253 - - 34,253 618 - - 618 1,631 23,161 - 24,792 44,671 52,079 - 96,751 24,635 - - 24,635 11,072 66,562 - 77,634 1,561 5,409 - 6,970 37,268 71,971 - 109,240 7,403 (19,892) - (12,489) (7,922) (60,818) (52,626) (121,366) - 531 - 531 (519) (80,180) (52,626) (133,325) 77,944 573,736 394,885 1,046,565 77,425 493,556 342,259 913,240 |
2021 £ 120,322 2,226 24,229 648 21,094 |
|---|---|---|
| 168,519 | ||
| 15,809 10,233 7,238 |
||
| 33,280 | ||
| 135,239 76,601 27,212 |
||
| 239,052 807,513 |
||
| 1,046,565 |
Page 8b
THE FRIENDS OF MALVERN PRIORY
Statement of Financial Activities
Comparative Data for 2021
for the year ended 31 December 2021
| 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 Unrealised gains/(losses) on revaluation of investments 10 Net realised gains/(losses) on investments 10 Net income/(expenditure) being the net movement in funds Total funds at 1 January 2021 Total funds at 31 December 2021 14 |
Unrestricted Restricted Endowment Funds Funds Funds 2021 £ £ £ £ 5,795 114,527 - 120,322 2,226 - - 2,226 24,229 - - 24,229 648 - - 648 811 20,283 - 21,094 |
|---|---|
| 33,709 134,810 - 168,519 |
|
| 15,809 - - 15,809 10,233 - - 10,233 1,663 5,575 - 7,238 |
|
| 27,705 5,575 - 33,280 |
|
| 6,004 129,235 - 135,239 5,444 20,544 50,613 76,601 - 27,212 - 27,212 |
|
| 11,448 176,991 50,613 239,052 66,496 396,745 344,272 807,513 |
|
| 77,944 573,736 394,885 1,046,565 |
Page 9
THE FRIENDS OF MALVERN PRIORY
| Balance Sheet as at 31 December 2022 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 2022 2021 10 878,094 1,002,846 11,921 11,872 11 1,710 2,984 62,781 33,848 ______ __ 76,412 48,704 12 41,266 4,985 ______ _ 35,146 43,719 ______ 913,240 1,046,565 _ _ 14a 77,425 77,944 14b 493,556 573,736 14c 342,259 394,885 _ ____ 913,240 1,046,565 |
|---|---|
Approved by the Trustees on 27 April 2023 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 2022 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 |
£ £ 223 24,792 52,640 (48,722) 28,710 28,933 33,848 62,781 2022 |
£ £ 117,661 21,095 133,460 (331,550) (176,995) (59,334) 93,182 33,848 2021 |
£ £ 117,661 21,095 133,460 (331,550) (176,995) (59,334) 93,182 33,848 2021 |
|---|---|---|---|---|
| (59,334) 93,182 |
||||
| 33,848 |
Page 11
THE FRIENDS OF MALVERN PRIORY
Notes to the Financial Statements for the year ended 31 December 2022
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;
state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;
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 2022
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 2022
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.
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THE FRIENDS OF MALVERN PRIORY
Notes to the Financial Statements for the period ended 31 December 2022
| 3. DONATIONS AND LEGACIES Unrestricted Restricted Endowment £ £ £ Subscriptions 3,730 - - Donations 924 28,160 - Gift Aid on Subscriptions & Donations 952 758 - Legacies - - - _____ _ _ 5,606 28,918 - _ _ _ 31 December 2021 5,795 114,527 - _ 4. INVESTMENT INCOME Unrestricted Restricted Endowment £ £ £ Dividends and interest on listed investments 1,608 22,987 - Interest on cash deposits 23 174 - 1,631 23,161 - __ _ 31 December 2021 811 20,283 - _ EXPENDITURE Unrestricted Restricted Endowment £ £ £ Net incoming (resources expended)/resources are stated after charging: Audit remuneration 180 805 - ___ ___ ___ 31 December 2021 180 805 - _ _ 6. RAISING FUNDS Unrestricted Restricted Endowment £ £ £ Function costs 2,819 - - Guide books 748 - - Shop cost of sales 21,068 - - _____ _____ _____ 24,635 - - _____ _____ _____ 31 December 2021 15,809 - - _ 7. GRANTS PAYABLE Unrestricted Restricted All grants are payable to Malvern Priory PCC. £ £ Contribution from Shop Trading 10,000 - Window Leaflets 210 - Candlestand repair 176 - Noticeboard 686 - St Anne's Chapel Roof - 66,562 Organ Plaque - - _ 11,072 66,562 31 December 2021 10,233 - ______ |
2022 2021 Total Total £ £ 3,730 3,910 29,084 102,820 1,710 13,592 - - _ _ 34,524 120,322 _ _ 120,322 _ 2022 2021 Total Total £ £ 24,595 21,092 197 2 _ 24,792 21,094 21,094 2022 2021 Total Total £ £ 985 985 ___ 985 2022 2021 Total Total £ £ 2,819 1,711 748 808 21,068 13,290 _____ _ 24,635 15,809 _____ 15,809 __ 2022 2021 Total Total £ £ 10,000 10,000 210 - 176 - 686 - 66,562 - - 233 __ _ 77,634 10,233 10,233 ___ |
|---|---|
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 2022
| 8. GOVERNANCE COSTS Unrestricted Restricted £ £ Secretarial expenses 550 - Auditors fees 180 805 Fee charges (Investments) - 4,388 Shop Manager Expenses 344 - Insurance 274 - Marketing Costs 213 216 ____ ____ 1,561 5,409 _ _ 31 December 2021 1,663 5,575 _ ___ |
2022 2021 Total Total £ £ 550 656 985 985 4,388 4,538 344 262 274 467 429 330 _____ _ 6,970 7,238 __ 7,238 _____ |
|---|---|
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 £21,235 (2020 - £1,066 ) were received from Trustees and Related Parties during the course of the year.
| LISTED INVESTMENTS – INVESTEC MANAGED | 2022 | 2021 | ||||
|---|---|---|---|---|---|---|
| £ | £ | |||||
| Restricted | Restricted | |||||
| Balance brought forward 01.01.22 | 393,779 | 356,671 | ||||
| Additions | 48,723 | 129,550 | ||||
| Disposals | (52,639) | (133,460) | ||||
| Revaluations | (40,197) | 13,806 | ||||
| Profit (Loss) on Disposal | 531 | 27,212 | ||||
| _ | _ | |||||
| Balance carried forward 31.12.22 | 350,197 | 393,779 | ||||
| __ | __ | |||||
| Cost | 334,118 | 337,618 | ||||
| __ | __ | |||||
| Fixed asset investments at market value comprised: | 2022 | 2021 | ||||
| Book Cost | Value | % | Book Cost | Value | % | |
| £ | £ | £ | £ | |||
| UK fixed interest securities | 12,459 | 9,758 | 2.8% | 12,459 | 12,223 | 3.1% |
| UK equities | 42,986 | 49,954 | 14.3% | 84,357 | 92,158 | 23.4% |
| Overseas Fixed Interest | 20,519 | 17,256 | 4.9% | 13,957 | 13,630 | 3.5% |
| North American equities | 62,074 | 63,445 | 18.1% | 46,846 | 53,171 | 13.5% |
| Far East & Australasian equities | 32,753 | 27,527 | 7.8% | 32,779 | 31,948 | 8.1% |
| International equities | 86,802 | 100,815 | 28.8% | 70,695 | 95,351 | 24.2% |
| UK Property | 17,883 | 14,970 | 4.3% | 17,883 | 22,089 | 5.6% |
| Alternative Assets | 39,234 | 42,239 | 12.1% | 39,234 | 43,817 | 11.1% |
| Emerging Economies | 9,541 | 9,819 | 2.8% | 9,541 | 11,551 | 2.9% |
| European equities | 9,867 | 14,414 | 4.1% | 9,867 | 17,841 | 4.6% |
| _ | **_ ** | _ | _ | _ | _ | |
| 334,118 | 350,197 | 100% | 337,618 | 393,779 | 100% | |
| _ | **_ ** | _ | _ | _ | _ |
10. LISTED INVESTMENTS – INVESTEC MANAGED
Page 16
THE FRIENDS OF MALVERN PRIORY
Notes to the Financial Statements for the period ended 31 December 2022
| 10. LISTED INVESTMENTS – CCLA cont'd £ £ £ Unrestricted Restricted Endowment Balance brought forward 01.01.22 59,444 154,738 394,885 Additions - - - Disposals - - - Revaluations (7,922) (20,622) (52,626) Profit (Loss) on Disposal - - - _ _ _ Balance carried forward 31.12.22 51,522 134,116 342,259 __ __ __ Cost 54,000 148,000 350,000 __ __ __ CCLA Investments comprise COIF Charities Ethical Investment Fund - Income Units Units held 2022 18,826.39 49,006.55 125,062.53 2021 18,826.39 49,006.55 125,062.53 LISTED INVESTMENTS – TOTAL Balance brought forward 01.01.22 Additions Disposals Revaluations Profit (Loss) on Disposal Balance carried forward 31.12.22 Cost 2022 11. DEBTORS Unrestricted Restricted Total £ £ £ Income tax on gift aid 952 758 1,710 _ 952 758 1,710 _ 12. CREDITORS: AMOUNTS FALLING 2022 DUE WITHIN 1 YEAR Unrestricted Restricted Total £ £ £ Audit accrual 180 805 985 Grant to Great Malvern Priory PCC - 39,930 39,930 Expenses 350 - 350 _ 530 40,735 41,266 _ _____ 13 FINANCIAL INSTRUMENTS 2022 £ Investments measured at fair value through the Statement of Financial Activities 878,094 |
2022 £ Total 609,067 - - (81,170) - _ 527,897 _ 552,000 _ 192,895.47 2022 £ 1,002,846 48,723 (52,639) (121,366) 531 _ 878,094 __ 886,118 __ |
2021 £ Total 344,272 202,000 - 62,795 - _ 609,067 _ 552,000 __ 192,895.47 |
|
|---|---|---|---|
| 2021 £ 700,943 331,550 (133,460) 76,601 27,212 _ 1,002,846 _ 889,618 _ 2021 Total £ 2,984 _ 2,984 2021 Total £ 985 4,000 - __ 4,985 _____ 2021 £ 1,002,846 |
Page 17
THE FRIENDS OF MALVERN PRIORY
Notes to the Financial Statements for the period ended 31 December 2022
14 ALLOCATION OF CHARITY NET ASSETS
The net assets held for various funds are as follows:-
| Fixed Asset | Net Current | 2022 | ||
|---|---|---|---|---|
| Investments | Assets | Total | ||
| £ | £ | £ | ||
| Restricted Funds:- | Martin Radford Bequest |
386,322 | (49,955) | 336,367 |
| Eglington Bequest | 6,219 | 15,710 | 21,929 | |
| Window | 91,771 | 43,490 | 135,261 | |
| Endowment Fund | Eglington Bequest | 342,259 | - | 342,259 |
| Unrestricted Funds:-General Fund | 51,523 | 25,902 | 77,425 | |
| _ | ______ | _ | ||
| 878,094 | 35,147 | 913,241 | ||
| _ | ______ | _ | ||
| Fixed Asset | Net Current | 2021 | ||
| Investments | Assets | Total | ||
| £ | £ | £ | ||
| Restricted Funds:- | Martin Radford Bequest |
435,459 | 8,582 | 444,041 |
| Eglington Bequest | 7,175 | 4,725 | 11,900 | |
| Window | 105,883 | 11,912 | 117,795 | |
| Endowment Fund | Eglington Bequest | 394,885 | - | 394,885 |
| Unrestricted Funds:-General Fund | 59,445 | 18,500 | 77,945 | |
| _ | ______ | _ | ||
| 1,002,847 | 43,719 | 1,046,566 | ||
| _ | ______ | _ |
14a. UNRESTRICTED FUNDS
The Unrestricted Funds are retained as necessary to cover working capital.
14b. RESTRICTED FUNDS
| RESTRICTED FUNDS | |||||
|---|---|---|---|---|---|
| Balance | Incoming | Resources | Gains (Loss) | Balance | |
| 01.01.22 | Resources | Expended | on investments | 31.12.22 | |
| b/f | c/f | ||||
| £ | £ | £ | £ | £ | |
| Martin Radford Bequest | 444,040 | 9,301 | (71,755) | (45,220) | 336,366 |
| Eglington Bequest | 11,901 | 10,985 | - | (956) | 21,930 |
| Window Fund | 117,795 | 31,793 | (216) | (14,111) | 135,261 |
| _ | ______ | ______ | ______ | _ | |
| 573,736 | 52,080 | (71,971) | (60,288) | 493,557 | |
| _ | ______ | ______ | ______ | _ | |
| Balance | Incoming | Resources | Loss on | Balance | |
| 01.01.21 | Resources | Expended | investments | 31.12.21 | |
| b/f | c/f | ||||
| £ | £ | £ | £ | £ | |
| Martin Radford Bequest | 395,244 | 9,442 | (5,342) | 44,696 | 444,040 |
| Eglington Bequest | 1,501 | 10,225 | - | 175 | 11,901 |
| Window Fund | - | 115,145 | (232) | 2,882 | 117,795 |
| _ | ______ | ______ | ______ | _ | |
| 396,745 | 134,812 | (5,574) | 47,753 | 573,736 | |
| _ | ______ | ______ | ______ | _ |
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 for the period ended 31 December 2022
14c. ENDOWMENT FUNDS
| ENDOWMENT FUNDS | |||||
|---|---|---|---|---|---|
| Balance | Incoming | **Resources ** | Gain (Loss) | Balance | |
| 01.01.22 | **Resources ** | Expended | on | 31.12.22 | |
| b/f | Revaluation | c/f | |||
| £ | £ | £ | £ | £ | |
| Eglington Bequest | 394,885 | - | - | (52,626) | 342,259 |
| _ | ______ | ______ | ______ | _ | |
| 394,885 | - | - | (52,626) | 342,259 | |
| _ | ______ | ______ | ______ | _ | |
| Balance | Incoming | Resources | Loss on | Balance | |
| 01.01.21 | Resources | Expended | investments | 31.12.21 | |
| b/f | c/f | ||||
| £ | £ | £ | £ | £ | |
| Eglington Bequest | 344,272 | - | - | 50,613 | 394,885 |
| _ | ______ | ______ | ______ | _ | |
| 344,272 | - | - | 50,613 | 394,885 | |
| _ | ______ | ______ | ______ | _ |
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, remain invested in CCLA Charities Ethical Investment Fund. The Bequest is to be used:
a) for the provision of glass doors at the North West main entrance to Great Malvern Priory; and b) the residue of the total bequest is to be treated as permanent endowment in a fund whose income is restricted for the maintenance of the stonework and stained glass of Great Malvern Priory.
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 Investec managed investments Unrealised losses/(gains) on CCLA managed investments Dividends, interest and rents from investments Realised losses/(gains) on the sale of investments (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 |
2022 (133,325) 40,197 81,170 (24,792) (531) (50) 1,274 36,281 223 62,781 62,781 |
2021 239,052 (13,806) (62,795) (21,094) (27,212) 1,731 (2,214) 4,000 |
|---|---|---|
| 117,661 | ||
| 33,848 | ||
| 33,848 |
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.