The Northampton Diocesan Priests' Fund - Charities report - 21.2

REGISTERED COMPANY NUMBER: 05075294 (England and Wales)

REGISTERED CHARITY NUMBER: 1103920

Report of the Trustees and

Unaudited Financial Statements

for the Year Ended 31 March 2021

for

THE NORTHAMPTON DIOCESAN PRIESTS' FUND

Page

Report of the Trustees

1

to

4

Independent Examiner's Report

5

to

6

Statement of Financial Activities

7

Balance Sheet

8

to

9

Notes to the Financial Statements

10

to

16

The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 March 2021. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).

Objectives and activities

In planning the activities for the year in order to carry out the objectives of the fund, the Management Committee have considered the Charity Commission guidance on public benefit.

The objectives of the Fund, as detailed in its Memorandum of Association, are "the aid of Secular Priests of the Diocese of Northampton who are permanently or temporarily incapacitated by old age, infirmity, illness or accident."

Members of the Fund, who are all secular priests of the Diocese of Northampton, have the right to seek assistance from the Fund, and the Management Committee has the duty to consider all such requests. Donations are received, principally from members of congregations of the Catholic parishes of the Diocese, to fulfil these objectives. Hence the principal benefits are received by those priests who have received grant aid or other support during the year. However these priests have given many years of service to the Church in the Diocese of Northampton and provided much support, spiritual and otherwise, to the Catholic community in the parishes which they served.

In the case of Priests who are sick, the committee will try to provide such assistance as will enable them to resume their active ministry as quickly as possible. This will include assistance with the costs of surgery, of psychiatric and other treatment, and of convalescence, where these have been recommended by medical practitioners and approved by the Bishop.

In the case of Priests who have retired, the Committee will try to enable them to live in reasonable comfort and will take into account their individual views, needs and capabilities. Some receive monthly grants to supplement their income. Others make applications to the fund based on individual need. All payments are at the discretion of the Management Committee and are reviewed regularly.

Achievement and performance

The fund has been affected by covid restrictions along with many other organisations and as a result has not received any cash donations or benefitted from parish collections during this year, our members have continued to support us however by making donations directly to the Diocese of Northampton. It also receives legacy income and income on its investments. The Fund has continued to support retired and sick clergy of the Diocese. The total grants payable to retired and infirm priests during the year was £4,700 (2020 £6,931) to 24 individuals along with Christmas grants payable to priests over 70 (2020 23).

A payment of £250,000 was also made in the year from the investment portfolio to the Diocese of Northampton for care of sick clergy

Total incoming resources in the year were £39,684 (2020 £87,970) and outgoing resources were £268,449 including the £250,000 donation (2020 £17,717). There were therefore net incoming resources of (£228,765 (2020 £70,253) before unrealised gain on investments of £532,478 (2020 loss £199,082).

The Fund holds investment portfolios with Brewin Dolphin and Rathbones through The Diocesan Investment Trust and receives monthly and quarterly investment income.The total value of investments as at 31 March 2021 was £2,329,500 (2020 £1,598,085) which the committee considers as very healthy and are satisfied with the ongoing performance of the portfolios.

The Fund asks both investment companies to maximise the total return through a diversified portfolio, subject to some ethical considerations, for example, to avoid investing in securities which might conflict with Catholic Social teaching or are environmentally unsound. The committee considers the Fund as medium risk investors.

With respect to Rathbones, the Diocese Investment Committee meet twice yearly with them to discuss performance, which a current trustee of the Fund attends. The reason why Rathbones were chosen for the investment portfolio is because they were the managers on the split of The Northampton and East Anglia Clergy Fund, as well as the Diocese. The committee have been very happy with their performance.

With regards to Brewin Dolphin, they acted for a legator who left a portfolio of shares to the Fund. These had similar performance and ethical requirements and so the decision was taken to appoint them to manage this part of the portfolio. Trustees remain happy with their performance.

Financial review

The Management Committee reviews the level of reserves and also income and expenditure in order to ascertain the resulting impact on reserves. The Management Committee is also continuing to review future income streams in the light of the age profile of secular Priests of the Diocese in order to assess how their likely requirements can be resourced. They are also working closely with The Northampton Roman Catholic Diocesan Trust as to what role the Diocese will take in the support of priests in retirement.

Total funds at 31 March 2021 were £2,469,479 (2020 £2,165,766) being unrestricted general funds.

The reserves policy of the Fund is to maintain sufficient reserves to allow for the potential needs of the member priests, bearing in mind their age and state of health. How much this actually amounts to is difficult to ascertain but the committee considers the existing reserve levels are prudent due to the current age profile of our Clergy.

Structure, governance and management

The Northampton Diocesan Priests' Fund is a registered charity number 1103920 and a limited company not having a share capital registered in England and Wales number 5075294.

The charity is governed by its Memorandum and Articles of Association and was incorporated on 16 March 2004. A resolution was passed by members and filed with Companies House on 14 November 2019 removing the requirement for an audit going forward.

The fund is controlled by a Management Committee of not less than four but not more than ten members who serve for a period of five years. The Management Committee are the charity's trustees. Management Committee members are elected at the Annual General Meeting or can be appointed by the Management Committee to fill a vacancy, act as an additional member or add skills to the Committee. Such a person would act until the next Annual General Meeting. The Trustees are aware of the requirement for relevant induction and training of any new trustee.

Members of the Management Committee give their services voluntarily. The Fund has no paid employees.

The Management Committee have assessed the major risks to which the fund is exposed and are satisfied that systems are in place to mitigate exposure to major risks.

Reference and administrative details

Registered Company number

05075294 (England and Wales)

Registered Charity number

1103920

Registered office

Artisans' House

7 Queensbridge

Northampton

Northamptonshire

NN4 7BF

Trustees

Reverend G M Byrne Clerk In Holy Orders

Reverend M Floody Clerk In Holy Orders

Reverend D B C P Killeen Catholic Priest

Mgr. A P McDermott Catholic Priest

Rev Canon S V Keenan Catholic Priest

Rev C R Perry Catholic Priest

Company Secretary

Mr T J Redding

Independent Examiner

Cobley Desborough

Chartered Certified Accountants

Chartered Tax Advisers

Artisans' House

7 Queensbridge

Northampton

Northamptonshire

NN4 7BF

Approved by order of the board of trustees on 12 November 2021 and signed on its behalf by:

Mgr. A P McDermott - Trustee

Independent examiner's report to the trustees of The Northampton Diocesan Priests' Fund ('the Company')

I report to the charity trustees on my examination of the accounts of the Company for the year ended 31 March 2021.

Responsibilities and basis of report

As the charity's trustees of the Company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 ('the 2006 Act').

Having satisfied myself that the accounts of the Company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity's accounts as carried out under section 145 of the Charities Act 2011 ('the 2011 Act'). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5) (b) of the 2011 Act.

Independent examiner's statement

I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe:

1.	accounting records were not kept in respect of the Company as required by section 386 of the 2006 Act; or

2.	the accounts do not accord with those records; or

3.	the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination; or

4.

the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities (applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)).

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

Mr Andrew Hasker

FMAAT

FCCA

Cobley Desborough

Chartered Certified Accountants

Chartered Tax Advisers

Artisans' House

7 Queensbridge

Northampton

Northamptonshire

NN4 7BF

12 November 2021

2021

2020

Unrestricted

Total

funds

funds

Notes

£

£

INCOME AND ENDOWMENTS FROM

Donations and legacies

15,573

41,418

Investment income

2

24,111

46,552

Total

39,684

87,970

EXPENDITURE ON

Raising funds

3

-

11,232

Charitable activities

Grants payable

-

6,531

General

267,879

(46

)

Total

267,879

17,717

Net gains/(losses) on investments

532,478

(199,082

)

NET INCOME/(EXPENDITURE)

304,283

(128,829

)

RECONCILIATION OF FUNDS

Total funds brought forward

2,165,766

2,294,595

TOTAL FUNDS CARRIED FORWARD

2,470,049

2,165,766

2021

2020

Unrestricted

Total

funds

funds

Notes

£

£

FIXED ASSETS

Investments

7

2,329,500

1,598,085

CURRENT ASSETS

Debtors

8

58,590

62,734

Cash at bank

83,279

506,747

141,869

569,481

CREDITORS

Amounts falling due within one year

9

(1,320

)

(1,800

)

NET CURRENT ASSETS

140,549

567,681

TOTAL ASSETS LESS CURRENT LIABILITIES

2,470,049

2,165,766

NET ASSETS

2,470,049

2,165,766

FUNDS

10

Unrestricted funds

2,470,049

2,165,766

TOTAL FUNDS

2,470,049

2,165,766

The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 March 2021.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 March 2021 in accordance with Section 476 of the Companies Act 2006.

The trustees acknowledge their responsibilities for

(a)	ensuring that the charitable company keeps accounting records that comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the charitable company as at the end of each financial year and of its surplus or deficit for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the charitable company.

These financial statements have been prepared in accordance with the provisions applicable to charitable companies subject to the small companies regime.

The financial statements were approved by the Board of Trustees and authorised for issue on 12 November 2021 and were signed on its behalf by:

Mgr. A P McDermott - Trustee

1.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention, with the exception of investments which are included at market value, as modified by the revaluation of certain assets.

Legacies

Legacies as with all voluntary income is recognised in the period in which the charity is entitled to the resource, when receipt is virtually certain, and when the amount can be measured with sufficient reliability.

Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

Grants offered subject to conditions which have not been met at the year end date are noted as a commitment but not accrued as expenditure.

Taxation

The charity is exempt from corporation tax on its charitable activities.

Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

Going concern

After reviewing the charity results, the trustees have reasonable expectation that the charity has adequate resources to continue for the forseeable future.

2.	INVESTMENT INCOME

2021

2020

£

£

Investment income

24,111

46,552

3.	RAISING FUNDS

Investment management costs

2021

2020

£

£

Support costs

-

11,232

4.	TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31 March 2021 nor for the year ended 31 March 2020.

Trustees' expenses

There were no trustees' expenses paid for the year ended 31 March 2021 nor for the year ended 31 March 2020.

5.	STAFF COSTS

The average monthly number of employees during the year was as follows:

2021

2020

No employees received emoluments in excess of £60,000.

6.	COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

Unrestricted

funds

£

INCOME AND ENDOWMENTS FROM

Donations and legacies

41,418

Investment income

46,552

Total

87,970

EXPENDITURE ON

Raising funds

11,232

Charitable activities

Grants payable

6,531

General

(46

)

Total

17,717

Net gains/(losses) on investments

(199,082

)

NET INCOME/(EXPENDITURE)

(128,829

)

RECONCILIATION OF FUNDS

Total funds brought forward

2,294,595

TOTAL FUNDS CARRIED FORWARD

2,165,766

7.	FIXED ASSET INVESTMENTS

Listed

investments

£

Market value

At 1 April 2020

1,598,085

Additions

460,000

Disposals

(250,000

)

Revaluations

521,415

At 31 March 2021

2,329,500

Net book value

At 31 March 2021

2,329,500

At 31 March 2020

1,598,085

There were no investment assets outside the UK.

Cost or valuation at 31 March 2021 is represented by:

Listed

investments

£

Valuation in 2021

2,329,500

8.	DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2021

2020

£

£

Other debtors

58,590

62,734

9.	CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2021

2020

£

£

Accrued expenses

1,320

1,800

10.	MOVEMENT IN FUNDS

Net

movement

At

At 1/4/20

in funds

31/3/21

£

£

£

Unrestricted funds

General fund

2,165,766

304,283

2,470,049

TOTAL FUNDS

2,165,766

304,283

2,470,049

Net movement in funds, included in the above are as follows:

Incoming

Resources

Gains and

Movement

resources

expended

losses

in funds

£

£

£

£

Unrestricted funds

General fund

39,684

(267,879

)

532,478

304,283

TOTAL FUNDS

39,684

(267,879

)

532,478

304,283

Comparatives for movement in funds

Net

movement

At

At 1/4/19

in funds

31/3/20

£

£

£

Unrestricted funds

General fund

2,294,595

(128,829

)

2,165,766

TOTAL FUNDS

2,294,595

(128,829

)

2,165,766

Comparative net movement in funds, included in the above are as follows:

Incoming

Resources

Gains and

Movement

resources

expended

losses

in funds

£

£

£

£

Unrestricted funds

General fund

87,970

(17,717

)

(199,082

)

(128,829

)

TOTAL FUNDS

87,970

(17,717

)

(199,082

)

(128,829

)

A current year 12 months and prior year 12 months combined position is as follows:

Net

movement

At

At 1/4/19

in funds

31/3/21

£

£

£

Unrestricted funds

General fund

2,294,595

175,454

2,470,049

TOTAL FUNDS

2,294,595

175,454

2,470,049

A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows:

Incoming

Resources

Gains and

Movement

resources

expended

losses

in funds

£

£

£

£

Unrestricted funds

General fund

127,654

(285,596

)

333,396

175,454

TOTAL FUNDS

127,654

(285,596

)

333,396

175,454

11.	RELATED PARTY DISCLOSURES

There were no related party transactions for the year ended 31 March 2021.