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NOTES TO THE ACCOUNTS<br />
FOR THE YEAR ENDED 31 DECEMBER 2021<br />
1. ACCOUNTING POLICIES<br />
1.1 Basis of Accounting<br />
The financial statements have been prepared in accordance with all statutory requirements and with Accounting<br />
and <strong>Report</strong>ing by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in<br />
accordance with the Financial <strong>Report</strong>ing Standard applicable to the UK and Republic of Ireland (FRS102) ( 2nd Edition<br />
SORP issued January 2019) – (Charities SORP (FRS102)), the Financial <strong>Report</strong>ing Standard applicable in the UK and<br />
Republic of Ireland (FRS102).<br />
The Roman Catholic Archdiocese of <strong>Southwark</strong> meets the definition of a public benefit entity under FRS102.<br />
Assets and liabilities are recognised at historical cost or transaction value unless otherwise stated in the relevant<br />
accounting policy note(s).<br />
Basis of consolidation<br />
The Roman Catholic Archdiocese of <strong>Southwark</strong> has two subsidiary companies – St George’s Cathedral Car Park<br />
Limited registered company number 2705778 and RCAOS Property Services Limited registered company number<br />
12592137. Consolidated accounts have not been prepared as the subsidiaries are not material to the group.<br />
1.2 Preparation of the accounts on a going concern basis<br />
The Trustees have assessed whether the use of the going concern assumption is appropriate in preparing these<br />
accounts. The Trustees have made this assessment in respect of a period of at least one year from the date ofapproval<br />
of these accounts.<br />
Income from donations and charitable activities has been adversely impacted in many areas of the Charity’s mission,<br />
though the impact has been mitigated by parishes giving access to alternative methods of giving, such as online<br />
donations and by encouraging donors to consider setting up standing orders. However, the overall drop in income<br />
was accompanied by a reduction in expenditure easing the pressure on reserves. The Charity also furloughed more<br />
than half its employees and claimed the eligible sums from the Coronavirus Job Retention Scheme.<br />
Although there has been an impact on the finances and reserves of the Charity, the Trustees of the Charity have<br />
concluded that there are no material uncertainties related to events or conditions that may cast significant doubt on<br />
the ability of the Charity to continue as a going concern. The Trustees are of the opinion that the Charity will have<br />
sufficient resources to meet its liabilities as they fall due.<br />
1.3 Income<br />
Donations<br />
Donations are recognised when receivable or when the Archdiocese becomes legally entitled to them and they can<br />
reasonably be measured in financial terms. Receipts of property, investments or other gifts in kind are included at<br />
market value.<br />
Legacies<br />
For legacies, entitlement is considered to be earlier of when either:<br />
a) Notification has been received from the executor that probate has been granted and the Charity is expected to<br />
receive a distribution: or<br />
b) A distribution has been received from the estate<br />
Receipt of a legacy is only considered probable when the executors have indicated that there are sufficient assets<br />
in the estate to make a distribution. Where legacies have been notified to the Charity, but the criteria or income<br />
recognition have not been met, then the legacy is treated as a contingent asset and disclosed if material. Life interests<br />
are not recognised until the cessation of the life interest: they are then valued as residuary legacies.<br />
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