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2021-03-31-accounts

Charity Registration No. 1088675

Company Registration No. 04249759 (England and Wales)

Regulator of Social Housing Registration No. LH4338

THE SONS OF DIVINE PROVIDENCE

(ORIONE CARE)

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

THE SONS OF DIVINE PROVIDENCE (ORIONE CARE) LEGAL AND ADMINISTRATIVE INFORMATION

Trustees Rev Stephen Beale
Rev Philip Kehoe
Rev John Perrotta
Mrs Bernadette Griffin
Rev J Simionato
Secretary Mr Michael Healy
Registered Social Housing Provider Number LH4338
Charity number 1088675
Company number 04249759
Registered office 13 Lower Teddington Road
Hampton Wick
Kingston Upon Thames
Surrey
KT1 4EU
United Kingdom
Auditor HW Fisher LLP
Acre House
11-15 William Road
London
NW1 3ER
United Kingdom
Bankers HSBC Bank Plc
69 Pall Mall
London
SW1Y 5EY
Solicitors Bates Wells
10 Queen Street Place
London
EC4R 1BE
United Kingdom

THE SONS OF DIVINE PROVIDENCE (ORIONE CARE) CONTENTS

Trustees’ Report ............................................................................................................................................. 1 Statement of Trustees’ Responsibilities ........................................................................................................ 12 Independent Auditor’s Report ........................................................................................................................... 13 Consolidated Statement of Comprehensive Income ......................................................................................... 16 Group Summary Income and Expenditure Account ........................................................................................... 20 Consolidated and Charity Statement of Financial Position ................................................................................ 21 Group Statement of Cash Flows ......................................................................................................................... 22 Notes to the financial statements ...................................................................................................................... 23

THE SONS OF DIVINE PROVIDENCE

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2021

Chairman’s Report 2020/21

I would like to begin my report by thanking our staff, volunteers, and my confreres for the way they have responded to the many difficulties and challenges thrown up by the coronavirus pandemic. I want to mention in particular the workers in our care homes who, despite the risk to themselves, worked so hard to keep the people in their care safe from harm. I am truly grateful.

As I write it appears that the country is gradually returning to normal, and while we are thankful for this, we also bear in mind those people we have lost over the past year, including former residents and tenants.

One of the many painful aspects of the pandemic has been the restrictions on visiting in our care homes. Although the restrictions have been essential to control the virus, they have made life difficult for residents and their families. We have been able to mitigate this to some extent by providing visitor pods at Cardinal Heenan House and Sundial House, where visits can take place in relative safety. We have been able to use infection control grants provided by the government to carry out the necessary conversion works to our buildings to enable this to happen.

Apart from the human suffering, the pandemic has hit the charity financially. The occupancy of Cardinal Heenan House has been low throughout the year, leading to reduced income. We have been fortunate, however, in being able to access government help in the form of grants and a Coronavirus Business Interruption Loan.

In partnership with a developer, the charity’s subsidiary trading company has been redeveloping the former Orione House care home site in Hampton Wick. This project has created 28 extra-care apartments in a new building, known as Mulberry Court. The work was completed in December 2021. A further three apartments in an adjacent building are due for completion in 2022. The completion of Mulberry Court was about five months later than originally scheduled, but given the enormous difficulties posed by the pandemic, including lockdowns and shortages of materials and labour, it is still a great achievement by the contractor and all the workers. The new building is finished to a high standard, and we have had positive signs that the apartments will be attractive to purchasers, resulting in revenues to the charity during 2022.

During the year the charity has also been working with a developer on a plan to improve and expand its social housing provision on its land in East Molesey. These improvements would be funded by the development of some private housing for sale on the site, subject to obtaining satisfactory planning permission.

The main building improvement the charity carried out during the year was the replacement of the ageing and unreliable passenger lift at Pipes Place. We also carried out work to upgrade the fire doors at the property.

The charity continued to invest in staff training during the year, albeit restrictions meant that most training was on-line rather than face to face. In December 2020 we were pleased to extend our Investors in People accreditation for a further year.

During the year the trustees undertook a review of the head office staffing structure with the help of a consultant. Following the review, we created a new post of executive director, to strengthen the management team. I am delighted to say we have recruited an excellent candidate, Mr. John Clark, who took up the post in January 2022.

In June 2021 I took over as chairman of the trustees from Fr. Philip Kehoe, who had completed his term of office. I would like to thank Fr. Philip for his work as chairman of trustees and everybody else who has contributed to the work of the charity in these very difficult times. I would like to mention once again our staff and volunteers and also our contractors and professional advisors. Finally, my sincere thanks to our many friends and benefactors. May God bless you all.

Fr. Jose Simionato FDP Fr Joseph Simionato Chairman of Trustees

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THE SONS OF DIVINE PROVIDENCE

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2021

The Board of Trustees are pleased to present their Trustees’ Annual Report and financial statements for the year ending 31 March 2021. The Trustees’ Annual Report contains a Directors’ Report as required by company law. The report and financial statements comply with the requirements of the Companies Act 2006, the Housing and Regeneration Act 2008 and the Accounting Direction for Private Registered Providers of Social Housing 2019.

Structure, Governance and Management

History of the Charity

The Sons of Divine Providence is a Roman Catholic religious congregation, founded in Italy in 1893. The Congregation takes inspiration from its founder Saint Luigi Orione, whose motto was: "Do good to all, harm nobody". Saint Luigi Orione is remembered for his commitment to social justice and the service of those in need, a service guided and inspired by the teachings of the Catholic Church.

Saint Luigi Orione began his work with orphans and street children in the city of Tortona in north-west Italy while he was still a student. He was a man of enormous energy and enterprise, and by the time of his death in 1940 Saint Luigi Orione and his followers had established services for the care of elderly, disabled and disadvantaged people all over Italy, as well as in Poland, Brazil, Argentina and Palestine. Today nearly a thousand priests and brothers of the congregation are working in 33 countries around the world providing services for more than 200,000 people in a variety of health and social care projects.

The Sons of Divine Providence came to England in 1949 when Fr. Paul Bidone arrived from Italy. He spoke no English and carried only a ten-shilling note and the name of one British contact. However, three years later he had opened his first home, Fatima House in South London, for homeless elderly men.

Orione Care

On the 1[st] of April 2009, The Sons of Divine Providence adopted “Orione Care” as a working name for the charity. The charity had operated under the same name as the religious congregation for over 50 years, but it was felt by the trustees that the name did not readily convey to the public the type of work carried out by the charity. The name Orione Care allows the charity to develop its own identity whilst retaining the link with the Congregation through the use of the Founder’s name. The charity’s registration numbers at the Charity Commission, Companies House and the Regulator of Social Housing were not affected by the adoption of the working name.

Governing Document

At the time Fatima House was opened, in 1952, the religious Congregation established an unincorporated charitable trust as the vehicle for its work in England (registered charity number 220608).

During 2001/02 the Congregation restructured its affairs and founded a charitable limited company to manage and develop its care and housing services in England (The Sons of Divine Providence, company number 4249759, charity number 1088675, registered social landlord number LH4338). With effect from the 1st of April 2002 the assets, liabilities and functions of the 1952 trust were transferred to the new charitable company.

The Memorandum and Articles of Association were amended in March 2007 to take account of changes to the structure of the Congregation at an international level. In August 2006 the Congregation in the United Kingdom had joined with confreres in a number of other countries to form the English-Speaking Missionary Delegation. The amendments to the Articles of Association of the charity principally concerned changes to company membership and the appointment of Trustees, necessitated by the formation of the new Delegation. The sealed Consent of the Housing Corporation to the amendments was granted on the 8[th] of March 2007.

The current version of the governing document is the Articles of Association of The Sons of Divine Providence as amended by a Special Resolution dated 12 December 2012. This amendment took into account the requirements of The Companies Act 2006, it widened the membership to include members of the Congregation from overseas and it reserved some powers to the members in respect of dealings with property, mortgages and joint venture arrangements.

The Members

The members of the charity are the members of the Congregation who have consented to membership, and who guarantee to contribute £1 in the event of a winding up. There are two classes of members, the ex-officio members, who are the superior general and superior delegate of the Congregation for as long as they hold their office, and the admitted members, who are admitted by written notice from the ex-officio members for a renewable three-year term.

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THE SONS OF DIVINE PROVIDENCE

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2021

Recruitment, Appointment and Training of Trustees

The charity is governed by a board of trustees, who are also the directors for the purpose of company law. There are two classes of trustee: Congregation Trustees and Independent Trustees. The Board of Trustees comprises a minimum of three and a maximum of nine trustees. Not more than two thirds can be Congregation Trustees. The trustees who served during the year are shown on the information page.

As a religious charity it is appropriate that members of the religious congregation are involved in the governance of the charity. The majority of the trustees are therefore members of the religious congregation. These are people who have made a life-long commitment to the values of the charity and have great knowledge of its history, works and mission.

The Congregation Trustees are joined on the Board by Independent Trustees. These are people who are not members of the Congregation but are sympathetic to its work and values and bring an objective perspective.

Fr. Stephen Beale, Fr. John Perrotta and Fr. Philip Kehoe have all served more than nine years on the board of trustees. This is deemed to be appropriate because they continue to be senior members of The Sons of Divine Providence religious congregation in the UK.

Fr. Philip Kehoe stood down as Chairman of the Board of Trustees on the 29[th] of June 2021. He remains a trustee, but he has been succeeded as Chairman by Fr. Jose Simionato.

All the trustees are appointed by the members of the charity and have so far been recruited by word of mouth.

Prospective trustees are provided with a copy of the Governing Document and guidance on the duties of charity trustees and company directors published by the Charity Commission and Companies House. Independent Trustees normally attend several meetings as observers before being appointed. This enables them to get to know the other trustees and key members of staff. Congregation Trustees will already have a good knowledge of the charity and its operations because they are professed members of the Congregation.

None of the Trustees has any beneficial interest in the charity, save that the constitution permits the charity to provide accommodation and living expenses to those trustees who are members of the Congregation. None of the trustees receive payment for their work as trustees.

Organisational Structure and Decision Making

A senior management team, comprising the head of housing and operations, the finance manager and the company secretary, manage the day to day operations of the charity and report to the board of trustees. These officers submit regular written and verbal reports to meetings of the board of trustees.

During the year 2020/21 the trustees undertook a review of head office staffing, aided by an external consultant. The trustees accepted the consultant’s recommendation that an executive director should be appointed to lead the organisation. Recruitment took place during the second half of 2021, and the successful candidate took up his post in January 2022.

Planning meetings involving senior staff and unit managers are held towards the end of each year. Unit managers are encouraged to consult their staff and service users prior to the planning meetings. From these meetings a draft budget and annual plan is formulated. The budget is put before the trustees in March, and once approved, forms the basis for the major decisions for the coming year. Significant proposed deviations from the plan or expenditure outside of the budget are referred to the chairman of trustees for approval and reported to the full board of trustees at the next meeting.

Pay and Remuneration

The pay of all the charity’s employees, including key management personnel, is considered by the trustees at their March meeting along with the budget, and any increases in pay are approved by the full board of trustees.

The charity operates two defined contribution pension schemes. In the older scheme the charity contributes an amount equal to 5% of gross salary if the employee contributes a minimum of 3%. For staff who have commenced employment since 2014 the charity provides an auto- enrolment scheme, where the charity contributes 3% of gross salary and the employee a minimum of 5%. Key management personnel are members of one of these schemes or have opted out. There are no enhanced or special terms applicable for key management personnel.

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TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2021

Relationships between the Charity and Related Parties

The Congregation Trustees are members of the Congregation of The Little Work of Divine Providence (known in England as The Sons of Divine Providence). The Congregation is a religious congregation established under Canon Law as set out in the Constitution and Norms promulgated by the General Curia in Rome in 1988. The Congregation Trustees consider themselves bound to follow the Congregation’s rule of life and abide by its constitution.

The Congregation has established charitable organisations in other countries where it works; the English charity has provided support and funding to these charities.

Wholly Owned Subsidiary Trading Companies

The trustees have established two wholly owned subsidiary trading companies:

Both subsidiary trading companies are registered at 13 Lower Teddington Road, Hampton Wick, Kingston upon Thames, which is the head office of the charity. The trading companies use some of the charity’s resources, including staff time. The use of the charity’s resources by the subsidiary companies is governed by resource sharing agreements which are in place to ensure that the charity is properly compensated for the use of its resources by the subsidiary companies.

Related Party Transactions

On the 4[th] of October 2018 the Orione House care home site and the adjacent 29 Lower Teddington Road, both in Hampton Wick, were transferred from the charity to the subsidiary trading company, The Sons of Divine Providence Developments Ltd (company number 11393450). The purchase price was determined by a valuation of the property provided to the trustees in a Qualified Surveyor’s Report by Cushman & Wakefield in accordance with The Charities Act 2011 and The Charities (Qualified Surveyor’s Reports) Regulations 1992. The transfer was authorised by an Order from the Charity Commission dated the 28[th] of September 2018.

The subsidiary trading company used the property as security to raise a loan, some of which was used to pay the charity a part of the purchase price and some of which was used for the first phase of the redevelopment of the site. The subsidiary trading company has granted the charity a second charge over the property. When the property has been redeveloped the subsidiary trading company will pay the charity the remainder of the purchase price, plus interest, and any surplus made on the leasehold sales of apartments on the site. The subsidiary also intends to transfer the freehold of the property back to the charity.

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THE SONS OF DIVINE PROVIDENCE

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2021

A further small piece of land was transferred from the charity to the subsidiary trading company to accommodate the footprint of the new building, known as Mulberry Court. This was authorised by an Order from the Charity Commission dated the 16[th] of December 2019.

On the 1[st] of December 2021 the ground floor of 25 Lower Teddington Road was leased by the charity to the subsidiary trading company to serve as the main entrance and reception area for Mulberry Court. This was authorised by an Order from the Charity Commission dated the 26[th] of November 2021.

The trading subsidiary is a “connected person” as defined in section 118 of the Charities Act 2011, so authorisation for the disposals of property, by the charity, to the subsidiary company, was required from The Charity Commission.

Governance

The trustees have adopted The Charity Governance Code. The trustees believe that they comply with The Regulator of Social Housing’s Governance and Financial Viability Standard.

Directors’ Strategic Report

Objectives and Activities

The Purposes of the Charity as set out in the Governing Document are:

To advance the Roman Catholic faith by exclusively charitable means and in particular to sanctify all members of the Congregation through the observance of the three simple vows of Obedience, Chastity, and Poverty and the Constitutions of the Congregation.

To relieve poverty, sickness, disability and distress, as a way of giving practical expression to the Roman Catholic faith, by providing care, housing, respite and day services to:

To advance education by providing schools, training centres and other institutes of learning.

To further such other charitable purposes which, in the opinion of the trustees, are demanded by the necessities of the times.

The Main Activities of the Charity

The main activities of the charity in relation to its charitable purposes during the year were running Catholic parishes in the UK, providing one care home for older people, two care homes for people with learning disabilities, 19 housing units designated for supported living and 52 units of independent general needs social housing. The charity also provides financial support to the Congregation's missions in Kenya and India, and financial sponsorship to young people in developing countries through its “Bread of Life” programme.

Safeguarding of Adults at Risk

The trustees confirm that policies are in place to ensure high standards of protection of all vulnerable adults who use the services provided by the charity. These include the use of Disclosure and Barring Service (DBS) checks on all prospective staff that are likely to be involved in a regulated activity. The charity’s Safeguarding Policy is reviewed regularly and was last reviewed in December 2021.

During the year the Catholic Church in England and Wales set up the Catholic Safeguarding Standards Agency (CSSA) and the Religious Life Safeguarding Service (RLSS). This followed the Elliott Review into how to improve safeguarding structures and procedures in the Catholic Church. As a Catholic religious charity the trustees are committed to implementing any changes which might be required by the CSSA and RLSS. The trustees have signed a letter of intent to join the Catholic Safeguarding Standards Agency with effect from the 1[st] of July 2021 and have resolved to abide by its terms of membership.

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THE SONS OF DIVINE PROVIDENCE

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2021

Use of Volunteers

Individual services benefit greatly from a small number of dedicated and loyal volunteers. There are also "friends" attached to some services who help with fund-raising activities and social events. Individual service users may have their own voluntary advocates. All volunteers who are involved in a regulated activity undergo Disclosure and Barring Service (DBS) and reference checks.

Public Benefit Statement

The trustees have a duty to report on how the activities of the charity deliver public benefit. The sections of this Report entitled “Objectives and Activities” and “Achievements and Performance” set out the charity’s objectives and report on the activity and successes in the year to the 31[st] of March 2021. The section entitled “Plans for the Future” explains the plans for the current financial year and beyond. The work of Orione Care benefits people who are elderly, people who are disabled and people in housing need.

The trustees have considered this matter and have concluded:

  1. that the aims of the organisation continue to be charitable;

  2. that the aims and the work done give identifiable benefits to individuals in need;

  3. that the benefits are for the public, are not unreasonably restricted in any way; and

  4. that there is no detriment or harm arising from the aims or activities.

Achievements and Performance

The Charity’s activities during the year were:

  1. Providing financial support for the Congregation's overseas missions and international projects.

  2. Providing spiritual and pastoral services to people in England.

  3. Providing good quality social care and housing services.

  4. Improving the quality of the charity's housing and care services.

  5. Developing the staff who work in the charity's services.

The Charity’s achievements and performance in relation to the above activities were:

  1. Financial Support to the Congregation's Overseas Missions and International Projects.

  2. £42,993 was provided to support the Congregation's missions and overseas projects including “The Bread of Life”. The amount of money that the charity has been able to provide to the overseas missions has declined in recent years, but the trustees would like to increase this when funds allow.

  3. Spiritual and Pastoral Services in England

  4. The Congregation runs a retreat centre in Lancashire.

  5. Priests of the Congregation run two parishes in Lancashire and two parishes in Middlesex.

  6. Priests of the Congregation help neighbouring parishes by deputising for local parish clergy.

  7. Priests of the Congregation provide the Sacraments and spiritual and pastoral support to tenants and residents of the care homes.

  8. A priest of the Congregation provides an apostolate to the Polish Community in Hampton Wick.

  9. Providing Care Homes, Housing and a Day Centre

  10. The charity runs a residential care home for older people, Cardinal Heenan House in Roby Mill, Lancashire, providing 32 beds.

  11. The charity runs a residential care homes for people with learning disabilities in East Molesey, Surrey providing care and accommodation for up to seven people.

  12. The charity provides residential accommodation in a care home for up to six people in Teddington. The care and support provision at this home is provided by another charity Walsingham Support (registered charity no. 294832).

  13. A significant criterion for assessing the success of the charity is the rating given to the care homes by the regulator, The Care Quality Commission (CQC). All the charity’s residential care homes achieved a “Good” rating from the CQC following their most recent inspections.

  14. The charity provides 19 units of designated supported housing for people with learning disabilities.

  15. The charity provides 52 units of general needs social housing.

  16. The charity issued five new tenancies during the year and eight tenancies were issued to existing tenants who transferred internally.

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THE SONS OF DIVINE PROVIDENCE

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2021

  1. Improving the Quality of Housing and Care Services

  2. The charity replaced the passenger lift and carried out work to upgrade fire doors at Pipes Place in Kent.

  3. The charity recorded one emergency repair order during the year, which was completed on time (within 24 hours), and six which were classed as urgent and were also completed on time (within 5 days).

  4. The budget for reactive repairs and maintenance, planned maintenance, furniture fittings and equipment renewals for 2020/21 was £174,270; the actual expenditure was £210,190.

  5. Developing the Staff who Work in the Charity's Services

  6. The trustees provided an in-house training programme and took steps to ensure that all the care staff received training in certain core areas during their probation period.

  7. The charity holds the Investors in People quality standard following a successful re-assessment in December 2017 and an extension review in December 2020.

Complaints

During the course of the year three complaints were received in relation to Cardinal Heenan House from relatives of a prospective resident, a former resident and a current resident. All three complaints were investigated, and responses were provided to the complainants.

Internal Controls

The charity operates an annual financial planning and budgeting process. The draft budget is prepared by the senior staff team and submitted to the March trustees’ meeting for amendment or approval. Written management financial statements, reporting actual performance against budget, are presented through the financial year at quarterly trustees’ meetings. All major risks to the charity, including cash flow, are continuously monitored by the senior staff team and risk mitigations are developed as necessary.

Financial Review

During the year to March 2021 the events which significantly affected the financial statements were the following:

The occupancy at Cardinal Heenan House was at 20 residents when the home locked down a week before the national lockdown on 23 March 2020 due to the Covid 19 virus. The occupancy has hardly changed since that date, hovering between 18 and 20 residents as the home has followed government guidelines to keep the residents and staff safe. This has had the effect of greatly reducing the fee income.

Covid 19 was responsible in part for the closure of the Horticultural Centre. As the service users travelled every day to the Centre from their different homes it was decided that it was not possible to maintain Covid 19 secure facilities and so the Centre was closed temporarily, and the staff went on furlough which meant that most of the salary costs were reimbursed by the government. After much consideration and the continuance of Covid 19 restrictions it was decided to close the Centre permanently which involved paying the staff redundancy pay.

As four residents who lived at Sundial House attended the Centre it was decided to continue to provide a day service in the form of an activities unit for them mainly at Sundial House. This is proving to be very successful and helps to mitigate the loss of income at Sundial due to two continuing residential vacancies.

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TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2021

In July 2019 the operation of St John’s house was transferred to another care provider -Walsingham. This means that Walsingham is responsible for the care and support of the service users and the management of the staff. Walsingham receives fees from the local authorities and pays all the staff costs and everyday costs of the home such as food and utilities. The Charity still owns the property and is responsible for its upkeep and maintenance. Walsingham pays the Charity a quarterly rent, which as this was a new venture and the home already had one vacancy, was kept very low. However, as the costs of maintaining the property exceed the rent paid by Walsingham it was decided to apply to CQC for permission to allow St John’s to become supported living accommodation similar to the arrangement at the property at Ferry Road. This would mean that the residents would become tenants and their rent would be paid by Housing Benefit. The first application was unsuccessful, but it is hoped that a future application will be successful.

The events outlined above have had considerable impact on the year end results as can be seen on the Consolidated Statement of Comprehensive Income. The total operating income for the year to March 2021 is £1,752,566 as compared with the total for March 2020 of £2,272,011, a reduction in income of £519,445. Most of this (£500,805) is due to a reduction in total fee income from £1,918,208 in 2020 to £1,417,403 in 2021 due to the reduced occupancy at Cardinal Heenan House and the closure of the Horticultural Centre as mentioned. Donation and legacy income was greatly reduced from previous years but this was considerably offset by the receipt of Covid grants from the government or local authorities to pay for some expenses incurred due to Covid 19 (see note 3)

Although there was a considerable reduction in income during the year there was an even greater reduction in expenditure (£684,602) from £2,836,972 for the year to March 2020 to £2,152,370 for the year to March 2021. This was due to a reduction in staff costs owing to reduced occupancy at Cardinal Heenan House and the closure of the Horticultural Centre, and a general reduction in activities such as travel and fundraising events caused by the pandemic which led to a reduction in costs. The result of the above was that the operating deficit for the year to March 2021 was £399,804 compared with the operating deficit of the previous year to March 2020 of £564,961, a reduction of £165,157.

The Consolidated and Charity Statement of Financial Position shows both the Group position (which includes both the Charity and the Development Company) and the Charity only position as at 31 March 2021 compared with these positions as at 31 March 2020. The accompanying notes to the financial statements give more detail. Note 20 shows the transfer of the development property to trading stock for the Development Company which has further increased by further expenditure on Mulberry Court of £8,989,414. This was paid for by the increased bank loans as set out in Note 23.

Self-Assessment against the Regulator of Social Housing’s Value for Money Metrics

----- Start of picture text -----
Metric 2021 2020 Comment
1. Reinvestment 45.4% 32.3% This metric looks at the investment in properties (existing
stock as well as new supply) as a percentage of the total
value of properties held.
The rate of reinvestment has increased due to the spending
by the trading subsidiary on the redevelopment project.
2. New supply delivered 0% 0% This metric sets out the number of new social housing and
non-social housing units that have been acquired or
developed in the year as a proportion of total social
housing units and non-social housing units owned at the
period end.
No new social housing units or non-social housing units
were acquired or developed during 2020/21.
3. Gearing % 74% 53% This metric assesses how much of the adjusted assets are
made up of debt and the degree of dependence on debt
finance.
The increase in borrowing during 2020/21 is due to the
----- End of picture text -----

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TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2021

----- Start of picture text -----
trading subsidiary agreeing loans to reinvest in the
redevelopment of the Orione House site.
4. Earnings Before -480% -119% The Earnings Before Interest, Tax, Depreciation,
Interest, Tax, Amortisation, Major Repairs Included (EBITDA MRI)
Depreciation, Interest Cover is a key indicator for liquidity and
Amortisation, Major investment capacity. It seeks to measure the level of
Repairs Included surplus generated compared to interest payable; the
(EBITDA MRI) Interest measure avoids distortions stemming from the
Cover % depreciation charge.
The Charity continues to make deficits and is incurring
interest on the development loans.
5. Headline social £3,636 £5,004 The unit cost metric assesses the headline social housing
housing cost per unit cost per unit as defined by the Regulator.
The Homes and Communities Agency summary report
“ Delivering Better Value for Money: Understanding
differences in Unit Costs” (June 2016) states that a
hypothetical baseline social housing provider would have
costs per unit of £3,300 based on 100% general needs
housing. The report acknowledges that variations from this
figure might be explained by, amongst other things, regional
wage differences, housing for older people and supported
housing. Our figures are higher than the hypothetical
baseline, but our mix of housing is approximately 48%
general needs housing, 13% supported housing and 39%
residential care.
6. Operating margin % Social 34.3% Social 52% The Operating Margin demonstrates the profitability of
Housing Housing operating assets before exceptional expenses are taken
into account.
Overall -23.5% Overall 2.4%
There was an increase in social housing rental income after
the occupation of ten newly refurbished flats at 19/21
Lower Teddington Road.
7. Return on capital -8.5% 1% This metric compares the operating surplus to total assets
employed (ROCE)% less current liabilities to assess the efficient investment of
capital resources .
This is a negative figure because the charity has been in
deficit in recent years, largely due to loss-making care
services.
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TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2021

Reserves Policy

The trustees believe that reserves are required to ensure the continued operation of the charity's care and housing activities. These activities are funded primarily by rental income from tenants, and fees received from local authorities and others under community care arrangements. This income has been relatively secure due to contracts and tenancy agreements in place, although the level of fee income has declined due to reduced care home occupancy. It is the trustees' policy to have freely available funds which equate to about three months' expenditure, which is about £550,000. The trustees are taking steps to build up the charity’s reserves to this level by developing property for sale through its trading subsidiary company, The Sons of Divine Providence Developments Ltd. The designated funds on the balance sheet represent the net book value of fixed assets used for charitable purposes and the fair value of the investment property.

Investments

The charity has a small amount invested in equities. The charity also has some residential property which is viewed as an investment. This property is let to tenants on the open market at market rents in order to generate income for the charity.

Fundraising

The principal sources of funding have been:

No fundraisers have been employed and no fundraising targets were set. A small number of properties are let at market rents in order to generate funds for the charity. The main fundraising activities are usually a garden fete and raffle at Cardinal Heenan House in the Spring and a firework display in November. We also make appeals in the Catholic press and our own quarterly magazine "The Bridge". Due to the Covid restrictions and working from home there were no fundraising events during the year and “The Bridge” magazine was suspended. This resulted in a reduction of fundraising costs for the year from £15,413 to £2,891, while donations and grants received reduced from £225,768 to £214,303, including government Covid-related grants. The charity is registered with The Fundraising Regulator and subscribes to its code of practice.

Risk Management

A risk register is in place setting out the major risks to which the charity is exposed and the systems in place to mitigate these risks. This was reviewed by the trustees most recently at their meeting in December 2021. In addition, the trustees regularly review the cash flow forecast at their meetings.

The major risks identified are:

The trustees consider that there are policies, procedures and monitoring systems in place to control the risks identified, and to reduce them to a manageable level. The charity has also purchased insurance policies to mitigate most losses, and these are reviewed annually with the charity’s insurance broker.

Further risks identified are in relation to the redevelopment of the Orione House site by the charity’s subsidiary trading company, and the financial, and health and safety implications of the Coronavirus pandemic.

The charity’s subsidiary trading company, The Sons of Divine Providence Developments Ltd, has borrowed money to complete the re-development of the Orione House site. The potential risks to the charity are that the work does not proceed to completion, or that costs exceed the budget or sales revenue are less than expected, putting at risk the charity’s investment in the project.

The building was substantially completed in November 2021, and sales began to complete in December 2021. At the end of January 2022 six sales had completed to a value of £5,234,850. In addition, security deposits had been received to secure another five apartments to a potential value of £5,585,000. The trustees are confident that further sales will follow in line with professional valuations.

10

THE SONS OF DIVINE PROVIDENCE

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2021

The Coronavirus pandemic

The Corona virus pandemic continues to present risks to health and life of our service users and staff. The pandemic also presents a financial risk because it is still affecting occupancy of Cardinal Heenan House, leading to reduced income.

To mitigate the risks of the pandemic we have followed government guidance on Covid-secure workplaces, personal protective equipment and working from home where possible. The financial risks were mitigated by taking advantage of government help from the Job Retention Scheme and local authority grants and national infection control grants. The charity also received a Coronavirus Business Interruption Loan of £420,000.

Plans for the Future

The re-development of the Orione House site by the charity’s wholly owned subsidiary trading company, The Sons of Divine Providence Developments Ltd, was substantially completed in November 2021, with 26 of the 28 apartments ready for sale. The trustees intend to complete the project by developing 29 and 27 Lower Teddington Road for sale in 2022.

The charity intends to submit a planning application for the redevelopment of its site in East Molesey. The intention is to improve the provision of social housing on the site funded by the building of apartments for sale.

When funds allow, the trustees intend to increase their funding of the Congregation’s overseas missions. Funding of the overseas missions has been scaled back in recent years due to financial constraints.

Asset Cover for Funds

Note 29 sets out an analysis of the assets attributable to the various funds and a description of the trusts. These assets are sufficient to meet the charity's obligations on a fund by fund basis.

Disclosure of Information to Auditors

Each of the directors 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 auditor is aware of such information.

Auditors

HW Fisher LLP were appointed auditors to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put to the Annual General Meeting.

On behalf of the board of Trustees

Fr Joseph Simionato Fr. Jose Simionato fdp

Trustee

Dated: 23 Mar 2022

11

THE SONS OF DIVINE PROVIDENCE (ORIONE CARE) STATEMENT OF TRUSTEE RESPONSIBILITIES

FOR THE YEAR ENDED 31 MARCH 2021

The trustees, who are also the directors of The Sons of Divine Providence for the purpose of company law, are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

A combination of Company Law and Charity Law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the group and of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable group for that year.

In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the group and enable them to ensure that the financial statements comply with the Companies Act 2006 and the Charities Act 2011. They are also responsible for safeguarding the assets of the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

12

THE SONS OF DIVINE PROVIDENCE (ORIONE CARE) INDEPENDENT AUDITOR'S REPORT

TO THE MEMBERS OF THE SONS OF DIVINE PROVIDENCE

Opinion

We have audited the financial statements of The Sons of Divine Providence (the ‘parent charity’) and its subsidiaries (the 'group') for the year ended 31 March 2021 which comprise the group statement of comprehensive income, group statement of changes in funds, group and charity statement of financial position, the group statement of cash flows and the notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

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 Trust’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 other information comprises the information included in the annual report other than the financial statements and our auditor’s report thereon. The Trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of 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 this gives rise to a material misstatement in the financial statements themselves. 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.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

13

THE SONS OF DIVINE PROVIDENCE (ORIONE CARE) INDEPENDENT AUDITOR'S REPORT

TO THE MEMBERS OF THE SONS OF DIVINE PROVIDENCE

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and parent charity and their environment obtained in the course of the audit, we have not identified material misstatements in the directors’ report included within the trustees' report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 or the Housing and Regeneration Act 2008 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the statement of trustees' responsibilities, the trustees, who are also the directors of the charity for the purpose of company law, are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the group and parent 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 charitable company or to 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 extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

As part of our planning process:

14

THE SONS OF DIVINE PROVIDENCE (ORIONE CARE) INDEPENDENT AUDITOR'S REPORT

TO THE MEMBERS OF THE SONS OF DIVINE PROVIDENCE

The key procedures we undertook to detect irregularities including fraud during the course of the audit included:
- Identifying and testing journal entries and the overall accounting records, in particular those that were significant and
unusual.
- Reviewing the financial statement disclosures and determining whether accounting policies have been appropriately
applied.
- Reviewing and challenging the assumptions and judgements used by management in their significant accounting estimates,
in particular in relation to investment properties.
- Assessing the extent of compliance, or lack of, with the relevant laws and regulations.
- Testing key income lines, in particular cut-off, for evidence of management bias.
- Assessing the validity of the classification of income, expenditure, assets and liabilities between unrestricted, designated
and restricted funds.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements even though we have properly planned and performed our audit in accordance with auditing standards. The primary responsibility for the prevention and detection of irregularities and fraud rests with the trustees of the charity.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: http://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006 and the Housing and Regeneration Act 2008. Our audit work has been undertaken so that we

might state to the charitable company's members 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 charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

HW Fisher LLP

Sailesh Mehta (Senior Statutory Auditor) for and on behalf of HW Fisher LLP

Chartered Accountants

Statutory Auditor

Acre House 11-15 William Road London NW1 3ER United Kingdom

23 Mar 2022

15

THE SONS OF DIVINE PROVIDENCE (ORIONE CARE) CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE YEAR ENDED 31 MARCH 2021

Current financial year
Unrestricted
funds
general
2021
Notes
£
Income
Housing and care services
1,399,351
Day activities
18,052
Donations, legacies and grants
3
66,109
Religious congregation
46,433
Rent receivable
4
74,427
Total operating income
1,604,372
Expenditure
Housing and care services
9
1,783,359
Day activities
9
75,473
Religious congregation
9
105,606
Missions
9
12,321
Raising funds
8
2,891
Other expenditure
14
-
Total operating expenditure
1,979,650
Operating deficit
(375,278)
Interest receivable
4
Net gains/(losses) on
investments
15
-
Deficit for the financial year
-
(375,274)
Gross transfers between funds
17
(1,305,751)
Total comprehensive
(expenditure)/income for the year
(1,681,025)		 Unrestricted
funds
designated
2021
£
-
-
-
-
-
-
16,702
1,439
3,937
-
-
-
22,078
(22,078)
-
-
(22,078)
1,305,751
1,283,673		 Restricted
Endowment
funds
funds
2021
2021
£
£
-
-
-
-
148,194
-
-
-
-
148,194
-
119,970
-
-
-
-
-
30,672
-
-
-
-
-
150,642
-
(2,448)
-
-
-
-
-
(2,448)
-
-
-
(2,448)
-		 Total
2021
£
1,399,351
18,052
214,303
46,433
74,427
1,752,566
1,920,031
76,912
109,543
42,993
2,891
-
2,152,370
(399,804)
4
-
(399,800)
-
(399,800)

16

THE SONS OF DIVINE PROVIDENCE (ORIONE CARE) CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE YEAR ENDED 31 MARCH 2021

Statement of changes in funds
Total funds brought forward at
1 April 2020 as previously
reported
Prior year adjustment (Note 37)
Total funds brought forward at 1stApril
2020 as restated
Total comprehensive
(expenditure)/income for the year
Fund balances at 31 March
2021		 140,574
(30,000)
110,574
(1,681,025)
(1,570,451)		 6,094,036
-
6,094,036
1,283,673
7,377,709		 44,438
-
44,438
(2,448)
41,990		 -
-
-
-		 6,279,048
(30,000)
6,249,048
(399,800)
5,849,248

The consolidated statement of comprehensive income includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

17

THE SONS OF DIVINE PROVIDENCE (ORIONE CARE) CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE YEAR ENDED 31 MARCH 2021

Prior financial year
Unrestricted
Unrestricted
funds
funds
general
designated
(restated)
2020
2020
Notes
£
£
Income
Housing and care services
1,797,098
-
Day activities
121,110
-
Donations and grants
3
170,869
-
Religious congregation
55,740
-
Rent receivable
4
72,295
-
Total operating income
2,217,112
-
Expenditure
Housing and care services
9
2,418,578
19,639
Day activities
9
151,635
1,978
Religious congregation
9
153,912
3,867
Missions
9
11,926
-
Raising funds
8
15,413
-
Other expenditure
14
4,364
-
Total operating expenditure
2,755,828
25,484
Operating deficit
(538,716)
(25,484)
Interest receivable
2,890
-
Net gains/(losses) on
investments
15
11,498
-
Deficit for the financial year
(524,328)
(25,484)
Gross transfers between funds
17
(380,820)
589,651
Total comprehensive
(expenditure)/income for the year
(905,148)
564,167		 Restricted
Endowment
funds
funds
2020
2020
£
£
-
-
-
-
54,899
-
-
-
-
54,899
-
-
-
-
-
-
-
55,660
-
-
-
-
-
55,660
-
(761)
-
-
-
-
-
(761)
-
-
(208,831)
(761)
(208,831)		 Total
(restated)
2020
£
1,797,098
121,110
225,768
55,740
72,295
2,272,011
2,438,217
153,613
157,779
67,586
15,413
4,364
2,836,972
(564,961)
2,890
11,498
(550,573)
-
(550,573)

18

THE SONS OF DIVINE PROVIDENCE (ORIONE CARE) CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE YEAR ENDED 31 MARCH 2021

Statement of changes in funds

Statement of changes in funds
Fund balances at 1 April 2019
Total comprehensive
(expenditure)/income for the year
Fund balances at 31 March
2020		 1,015,722
(905,148)
110,574		 5,529,869
564,167
6,094,036		 45,199
(761)
44,438		 208,831
(208,831)
-		 6,799,621
(550,573)
6,249,048

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

19

THE SONS OF DIVINE PROVIDENCE (ORIONE CARE) GROUP SUMMARY INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 MARCH 2021

All income funds All income funds
2021 2020
(restated)
£ £
Gross income 1,752,570 2,274,901
Gains on investments - 11,498
Transfer from endowment funds - 208,831
Total income in the reporting period 1,752,570 2,495,230
Total expenditure from income funds 2,152,370 2,836,972
Net expenditure for the year (399,800) (341,742)

20

THE SONS OF DIVINE PROVIDENCE (ORIONE CARE) CONSOLIDATED AND CHARITY STATEMENT OF FINANCIAL POSITION

AS AT 31 MARCH 2021

Notes
Fixed assets
Tangible assets
18
Investment properties
19
Investments
19
Current assets
Stock
20
Debtors
21
Cash at bank and in hand
Creditors: amounts falling due within one year
22
Net current assets
Total assets less current liabilities
Creditors: amounts falling due after more than
one year
23
Provisions for liabilities
Provisions
Net assets
Capital funds
Endowment funds
26
Income funds
Restricted funds
Unrestricted funds
Designated funds
28
General unrestricted funds		 Group
2021
£
6,047,876
1,329,833
13,416
7,391,125
12,690,150
108,449
622,622
13,421,221
(1,703,390)
11,717,831
19,108,956
(13,170,848)
(88,860)
5,849,248
-
41,990
7,377,709
(1,570,451)
5,807,258
5,849,248		 2020
(restated)
£
9,768,960
1,276,711
13,416
11,059,087
-
141,767
573,100
714,867
(421,928)
292,939
11,352,026
(4,951,635)
(151,343)
6,249,048
-
44,438
6,094,036
110,574
6,204,610
6,249,048		 Charity
2021
£
6,047,876
1,329,833
13,418
7,391,127
-
4,210,609
601,667
4,812,276
(692,873)
4,119,403
11,510,530
(210,000)
(88,860)
11,211,670
-
41,990
7,377,709
3,791,971
11,169,680
11,211,670		 2020
(restated)
£
6,067,954
1,276,711
13,418
7,358,083
-
4,062,062
549,353
4,611,415
(418,178)
4,193,237
11,551,320
-
(151,343)
11,399,977
-
44,438
7,344,665
4,010,874
11,355,539
11,399,977

The charitable company's net deficit for the year was £188,307 (2020: deficit of £285,641)

The financial statements were approved by the Trustees on ______.23 Mar 2022

Fr Joseph Simionato

Fr. Jose Simionato FDP

Trustee

Company Registration No. 4249759

21

THE SONS OF DIVINE PROVIDENCE (ORIONE CARE) GROUP STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 MARCH 2021

Notes
Cash flows from operating activities
Cash absorbed by operations
34
Investing activities
Purchase of tangible fixed assets
Proceeds on disposal of tangible fixed assets
Additions to investment property
Proceeds on disposal of investments
Rental income and interest received
Net cash (used in)/provided by investing activities
Financing activities
Bank loans
Net cash generated from financing activities
Net (decrease)/increase in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year		 2021
£
(2,000)
-
(53,122)
-
74,431
8,429,213		 2020
£
£
£
(8,399,000)
(268,575)
(3,387,696)
8,500
-
249,347
75,185
19,309
(3,054,664)
2,785,181
8,429,213
2,785,181
49,522
(538,058)
573,100
1,111,158
622,622
573,100		 2020
£
£
£
(8,399,000)
(268,575)
(3,387,696)
8,500
-
249,347
75,185
19,309
(3,054,664)
2,785,181
8,429,213
2,785,181
49,522
(538,058)
573,100
1,111,158
622,622
573,100
(538,058)
1,111,158
573,100

22

THE SONS OF DIVINE PROVIDENCE (ORIONE CARE) NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 MARCH 2021

1 Accounting policies

Charity information

The Sons of Divine Providence is a private company limited by guarantee incorporated in England and Wales. The registered office is 13 Lower Teddington Road, Hampton Wick, Kingston Upon Thames, Surrey, KT1 4EU, United Kingdom.

1.1 Accounting convention

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of certain fixed assets. The accounts comply with the Financial Reporting Standard FRS102, the Accounting Direction for Private Registered Providers of Social Housing in England – “Accounting by Registered Providers of Social Housing” 2019, the Statement of Recommended Practice (the Housing SORP 2018), the Charities Act 2011 and the Companies Act 2006. The Charitable company is a Public Benefit Entity as defined by FRS 102.

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

1.2 Going concern

The Covid-19 pandemic has adversely affected the occupancy of Cardinal Heenan House residential care home. Occupancy has been at about 60% throughout the financial year, leading to a large shortfall in income. This has contributed to the charity’s deficit for the year.

The pandemic, and shortages of materials and labour, has also added to the cost, and delayed the completion of, the Mulberry Court development undertaken by the charity’s subsidiary trading company. This means that revenues which were expected by the charity from the development by the end of 2021 may not be received until the second half of 2022. Since the completion of Mulberry Court in December 2021, the company has seen strong interest in the development and to-date there have been six apartment sales, and six further reservations. This interest is expected to continue into spring 2022 as potential purchasers are able to see the finished apartments, communal spaces and external landscaping.

However the development company has had to borrow further funds in July 2021 and revise its financial forecasts (see note 23). In March 2022, development loans which were due for repayment by April 2022 were refinanced into a new 12-month loan with United Trust Bank. The Charity has also confirmed it will provide additional support if required.

At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus trustees have continued to adopt the going concern basis of accounting in preparing the financial statements.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.

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 financial statements.

Endowment funds are subject to specific conditions by donors that the capital must be maintained by the charity.

23

THE SONS OF DIVINE PROVIDENCE (ORIONE CARE) NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 MARCH 2021

1 Accounting policies

1.4 Income

Income is recognised when the group is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received. The Charity has received grants under the Coronavirus Job Retention Scheme. The scheme is designed to compensate for staff costs, so amounts received are recognised in the income statement as part of the operating income over the same period as the costs to which they relate.

Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.

1.5 Expenditure

Expenditure including redundancy and termination payments is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be reliably measured. Expenditure is classified under the following activity headings;

Cost of raising funds comprises those costs associated with attracting voluntary income.

Expenditure relating to Housing & Care Services, Day Activities, Religious Delegation and Missions are those elements of expenditure directly incurred in performing these activities. It also includes allocated governance costs relating to this activity.

Governance costs include those costs associated with meeting the constitutional and statutory requirements of the charity and include the audit fees and costs linked to the strategic management of the charity.

1.6 Tangible fixed assets

Tangible fixed assets (including housing properties) are measured at cost net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Freehold land and buildings Not depreciated Fixtures, fittings and equipment 10% straight line Motor vehicles 25% reducing balance

The charity has an annual maintenance schedule in order to maintain the residual value of the freehold land & buildings. As a result, the charity does not recognise depreciation on these assets. Total maintenance expenditure in the current year amounted to £210,190 (2020: £351,954). The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in net income/(expenditure) for the year. The Charity's properties were acquired many years ago and it is not possible to separate the land and building elements. In the prior year, assets under construction comprised properties held by the Charity's subsidiary companies. These assets are included at cost including borrowing costs incurred by the subsidiaries and in 2021 transferred to trading stock.

At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

1.7 Investment properties

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. The surplus or deficit on revaluation is recognised in profit or loss.

24

THE SONS OF DIVINE PROVIDENCE (ORIONE CARE) NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 MARCH 2021

1 Accounting policies

1.8 Fixed asset investments

Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year. Transaction costs are expensed as incurred.

1.9 Stock

Stock comprises properties under re-development by the subsidiary company, Sons of Divine Providence Developments Limited. Stock comprises the original cost of the land transferred from the parent charity, redevelopment costs and capitalised interest. Stock is included at the lower of cost and net realisable value.

1.10 Cash and cash equivalents

Cash and cash equivalents include only cash in hand.

1.11 Financial instruments

The Charity only has financial assets and liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.

1.12 Provisions

Provisions are recognised when the charity has a legal or constructive present obligation as a result of a past event, it is probable that the charity will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in net income/(expenditure) in the period in which it arises.

1.13 Employee benefits

Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.14 Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.15 Leases

Rentals payable under operating leases, including any lease incentives received, are charged to income on a straight line basis over the term of the relevant lease.

1.16 Cyclical repairs and maintenance

Due to the number of properties held and the establishment of regular programmes of repair and maintenance, the Charity charges actual costs incurred to the income and expenditure account.

25

THE SONS OF DIVINE PROVIDENCE (ORIONE CARE) NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 MARCH 2021

1 Accounting policies

1.17 Basis of consolidation

The consolidated financial statements incorporate those of The Sons of Divine Providence and its subsidiaries (i.e. the entities that the Group controls through its power to govern the financial and operating policies so as to obtain economic benefits). Their results are incorporated from the date that control passes. All financial statements are made up to 31 March 2021.

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the Group.

2 Critical accounting estimates and judgements

In the application of the group's accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an on-going basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Key sources of estimation uncertainty

In addition, the financial statements include an evaluation of investment property. The fair value of the investment property has been arrived at by the trustees, on the basis of an external valuation carried out by a firm of Chartered Surveyors in November 2017 and updated in January 2022 made on an open market value basis by reference to market evidence of transaction prices for similar properties.

Critical judgement

At the year end, the charity was owed £4,117,378 from its subsidiary trading company, in respect of loans made for the development of Mulberry Court and which are repayable from the development proceeds. The trustees have assessed the financial forecasts of the development following its completion in December 2021 and do not consider the loans to be impaired.

3 Donations and legacies

Unrestricted
Restricted
funds
funds
general
2021
2021
£
£
Donations and gifts
14,448
28,224
Covid support grants
-
119,970
CJRS income
42,398
-
Legacies receivable
726
-
57,572
148,194		 Total
Unrestricted
Restricted
funds
funds
general
2021
2020
2020
£
£
£
42,672
37,666
54,899
119,970
-
-
42,398
4,561
-
726
128,642
-
205,766
170,869
54,899		 Total
2020
£
92,565
-
4,561
128,642
225,768

26

THE SONS OF DIVINE PROVIDENCE (ORIONE CARE) NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 MARCH 2021

4 Rent receivable

Unrestricted Unrestricted
funds funds
general general
2020 2020
£ £
Rental income from investment property 74,427 72,295
Residential units owned and managed
Number of Number of
units Units
2021 2020
£ £
General Needs (Social) 52 55
Specialist Supported Living 3 8
Designated Specialist Supported Living 16 16
Care Homes Providing Personal Care (beds) 45 44

6 Other income

Unrestricted Unrestricted
funds funds
general general
2021 2020
£ £
Net gain on disposal of tangible fixed assets - -

27

THE SONS OF DIVINE PROVIDENCE (ORIONE CARE) NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 MARCH 2021

7 Income/Service charges

The total turnover of the company for the year has been derived from its principal activity wholly undertaken in England and Wales.

For the year ended 31 March 2021
Social housing lettings
Rent
Service charges
Other income
Other Housing income
Government Grant - Furlough
Day activities
Donations and legacies
Religious congregation
Private rental income		 Turnover
Operating costs
Operating deficit
383,057
(152,010)
231,047
76,409
(76,409)
-
459,466
(228,419)
231,047
939,885
(1,626,264)
(686,379)
42,398
(42,398)
-
18,052
(76,912)
(58,860)
171,905
(45,884)
126,021
46,433
(109,543)
(63,110)
74,427
(22,950)
51,477
1,293,100
(1,923,951)
(630,851)
1,752,566
(2,152,370)
(399,804)		 Turnover
Operating costs
Operating deficit
383,057
(152,010)
231,047
76,409
(76,409)
-
459,466
(228,419)
231,047
939,885
(1,626,264)
(686,379)
42,398
(42,398)
-
18,052
(76,912)
(58,860)
171,905
(45,884)
126,021
46,433
(109,543)
(63,110)
74,427
(22,950)
51,477
1,293,100
(1,923,951)
(630,851)
1,752,566
(2,152,370)
(399,804)
231,047
(686,379)
-
(58,860)
126,021
(63,110)
51,477
(630,851)
(399,804)

For the year ended 31 March 2020

For the year ended 31 March 2020
Social housing lettings
Rent
Service charges
Other income
Other Housing income
Government Grant - Furlough
Day activities
Donations and legacies
Religious congregation
Private rental income		 Turnover
Operating costs
Operating deficit
379,848
(223,369)
156,479
75,773
(75,773)
-
455,621
(299,142)
156,479
1,336,916
(2,138,878)
(771,962)
4,561
(4,561)
-
121,110
(153,613)
(32,503)
225,768
(82,999)
142,769
55,740
(157,779)
(102,039)
72,295
-
72,295
1,816,390
(2,537,830)
(691,440)
2,272,011
(2,836,972)
(534,961)
156,479
(771,962)
-
(32,503)
142,769
(102,039)
72,295
(691,440)
(534,961)

Rent void losses are not material and are netted off in the above figures for 2021 and 2020.

28

THE SONS OF DIVINE PROVIDENCE (ORIONE CARE) NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 MARCH 2021

8 Raising funds

Unrestricted Unrestricted
funds funds
general general
2021 2020
£ £
Fundraising and publicity
Fundraising events 2,891 15,413
2,891 15,413

9 Analysis of expenditure

Housing and
care services
2021
Day activities
2021
Religious
congregation
2021
Missions &
pilgrimages
2021
£
£
£
£
Staff costs
1,286,656
59,763
19,153
-
Depreciation and impairment
16,702
1,439
3,937
-
Rates
44,798
1,958
3,983
-
Insurance
47,029
2,769
3,980
-
Light and heat
52,347
3,291
13,448
-
Repairs, maintenance and
equipment
193,352
4,117
12,721
-
Postage, stationery and
telephone
13,823
678
6,431
-
Motor and travel
11,312
1,481
16,581
-
Legal and professional
58,108
1,200
2,364
-
Staff training and recruitment
10,242
-
16
-
Food and provisions
42,075
38
11,269
-
Other direct costs
89,816
178
15,660
42,993
Provision for refund of rent
overcharges
-
-
-
-
1,866,260
76,912
109,543
42,993
Share of governance costs (see
note 11)
53,771
-
-
-
1,920,031
76,912
109,543
42,993
Analysis by fund
Unrestricted funds - general
1,903,329
75,473
105,606
12,321
Unrestricted funds - designated
16,702
1,439
3,937
-
Restricted funds
-
-
-
30,672
1,920,031
76,912
109,543
42,993		 Total
2021
£
1,365,572
22,078
50,739
53,778
69,086
210,190
20,932
29,374
61,672
10,258
53,382
148,647
-
2,095,708
53,771
2,149,479
2,096,729
22,078
30,672
2,149,479		 Total
2020
(restated)
£
1,624,002
25,484
66,621
62,825
74,734
351,954
38,335
42,776
99,049
21,939
71,637
153,951
151,343
2,784,650
32,545
2,817,195
2,736,051
25,484
55,660
2,817,195

29

THE SONS OF DIVINE PROVIDENCE (ORIONE CARE) NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 MARCH 2021

9 Analysis of expenditure

For the year ended 31 March 2020 (restated)

Housing and
care services
Day activities
Religious
congregation
£
£
£
Staff costs
1,482,126
120,178
21,698
Depreciation and impairment
19,639
1,978
3,867
Rates
60,650
2,600
3,371
Insurance
55,605
3,600
3,620
Light and heat
60,151
3,434
11,149
Repairs, maintenance and equipment
316,325
13,259
22,370
Postage, stationery and telephone
14,915
1,739
21,681
Motor and travel
19,138
913
22,725
Legal and professional
96,464
1,609
976
Staff training and recruitment
21,016
923
-
Food and provisions
51,315
415
19,907
Other direct costs
56,985
2,965
26,415
Provision for refund of rent overcharges
151,343
-
-
2,405,672
153,613
157,779
Share of governance costs (see note 11)
32,545
-
-
2,438,217
153,613
157,779
Analysis by fund
Unrestricted funds - general
2,418,578
151,635
153,912
Unrestricted funds - designated
19,639
1,978
3,867
Restricted funds
-
-
-
2,438,217
153,613
157,779		 Missions
£
-
-
-
-
-
-
-
-
-
-
-
67,586
-
67,586
-
67,586
11,926
-
55,660
67,586		 Total
2020
£
1,624,002
25,484
66,621
62,825
74,734
351,954
38,335
42,776
99,049
21,939
71,637
153,951
151,343
2,784,650
32,545
2,817,195
2,736,051
25,484
55,660
2,817,195

10 Description of charitable activities

Housing and care services

Housing and care services comprise the provision of care homes and independent housing for those with learning disabilities and the elderly.

Day activities

The day activities are provided by the Molesey Horticultural Day Centre for people with learning disabilities to give them the opportunity to learn horticultural skills, woodwork and other crafts on a day basis. During the year the Day Centre was closed.

Religious congregation

The above costs relate to living expenses of the religious community in the UK.

30

THE SONS OF DIVINE PROVIDENCE (ORIONE CARE) NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 MARCH 2021

11 Auditors remuneration (governance costs)

Auditors remuneration (governance costs)
Audit fees
Accountancy		 2021
£
20,500
33,271
53,771		 2020
£
16,545
16,000
32,545

Payments to the auditors comprise £20,500 (2020: £16,545) for audit fees and £33,271 (2020: £16,000) for accountancy fees. In addition, the auditors provided general advice of £nil (2020: £13,080), capitalised as part of the subsidiary’s development.

12 Trustees

None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year. Religious trustees live in property owned by the charity to enable them to carry out their duties. This is allowed for in the memorandum and articles of the company. Trustees were reimbursed £nil for travel expenses incurred during the year (2020: £136).

13 Employees

Number of employees

The average monthly number of employees during the year was:

Wardens, cleaners and care staff
Maintenance
Administration
Employment costs
Wages and salaries
Social security costs
Other pension costs		 2021
Number
47
4
9
60
2021
£
1,236,893
87,395
41,284
1,365,572		 2020
Number
50
4
10
64
2020
(restated)
£
1,475,787
102,022
46,193
1,624,002

The chief executive officer left part way through the prior year. Salary payments of £nil (including NI) (2020 – restated: £78,362 including termination payment of £30,000) were made to the chief executive officer during the year. The post of Chief Executive remained vacant throughout the year while the trustees reviewed the charity’s management structure.

Included within wages and salaries are temporary staff of £33,905 (2020: £132,470), and key management remuneration amounting to £178,027 (2020: £220,048). There were no employees whose annual remuneration was £60,000 or more.

31

THE SONS OF DIVINE PROVIDENCE (ORIONE CARE) NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 MARCH 2021

14 Other expenditure

14 Other expenditure
Unrestricted Unrestricted
funds funds
general general
2021 2020
£ £
Net loss on disposal of tangible fixed assets - 4,364
15 Net gains/(losses) on investments
Unrestricted Unrestricted Unrestricted Endowment Total
funds funds funds funds
general general designated
2021 2020 2020 2020 2020
£ £ £ £ £
Revaluation of investments - 11,498 - - 11,498
Revaluation of investment properties - - - - -
- 11,498 - - 11,498
16 Deficit for the year is stated after charging: 2021 2020
£ £
Operating leases 5,472 5,472
Depreciation 22,078 25,484

17 Transfers

Transfers represent the release of the expendable endowment fund in the prior year and the re-statement of the fixed asset and investment funds.

32

THE SONS OF DIVINE PROVIDENCE (ORIONE CARE) NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 MARCH 2021

18 Tangible fixed assets

Group
Freehold land
and buildings
£
Cost
At 1 April 2020
6,690,815
Transfer to trading stock
-
Additions
-
Disposals
-
At 31 March 2021
6,690,815
Depreciation and
impairment
At 1 April 2020
672,535
Depreciation charged in the
year
-
Eliminated in respect of
disposals
-
At 31 March 2021
672,535
Carrying amount
At 31 March 2021
6,018,280
At 31 March 2020
6,018,280		 Group
Freehold land
and buildings
£
Cost
At 1 April 2020
6,690,815
Transfer to trading stock
-
Additions
-
Disposals
-
At 31 March 2021
6,690,815
Depreciation and
impairment
At 1 April 2020
672,535
Depreciation charged in the
year
-
Eliminated in respect of
disposals
-
At 31 March 2021
672,535
Carrying amount
At 31 March 2021
6,018,280
At 31 March 2020
6,018,280		 Altar and
stained glass
£
-
-
-
-
-
-
-
-
-
-		 Assets under
construction
Fixtures, fittings
and equipment
M
£
£
3,701,006
858,796
(3,701,006)
-
-
2,000
-
-
-
860,796
-
841,712
-
13,376
-
-
-
855,088
-
5,708		 Assets under
construction
Fixtures, fittings
and equipment
M
£
£
3,701,006
858,796
(3,701,006)
-
-
2,000
-
-
-
860,796
-
841,712
-
13,376
-
-
-
855,088
-
5,708		 otor vehicles
£
95,897
-
-
-
95,897
63,307
8,702
-
72,009
23,888		 Total
£
11,346,514
(3,701,006)
2,000
-
7,647,508
1,577,554
22,078
-
1,599,632
6,047,876
6,018,280 - 3,701,006 17,084 32,590 9,768,960

33

THE SONS OF DIVINE PROVIDENCE (ORIONE CARE) NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 MARCH 2021

18 Tangible fixed assets

Charity

Freehold land
and buildings
Altar and
stained glass
Fixtures, fittings
and equipment
Mo
£
£
£
Cost
At 1 April 2020
6,690,815
-
858,796
Additions
-
-
2,000
Disposals
-
-
-
At 31 March 2021
6,690,815
-
860,796
Depreciation and impairment
At 1 April 2020
672,535
-
841,712
Depreciation charged in the year
-
-
13,376
Eliminated in respect of disposals
-
-
-
At 31 March 2021
672,535
-
855,088
Carrying amount
At 31 March 2021
6,018,280
-
5,708
At 31 March 2020
6,018,280
-
17,084		 tor vehicles
£
95,897
-
-
95,897
63,307
8,702
-
72,009
23,888
32,590		 Total
£
7,645,508
2,000
-
7,647,508
1,577,554
22,078
-
1,599,632
6,047,876
6,067,954

19 Investments

Investment property
Group and charity
Fair value
At 1 April 2020
Valuation changes
Additions
At 31 March 2021		 2021
£
1,276,711
-
53,122
1,329,833

Investment property comprises Pipes Place, Shorne, Kent, DA12 3DP. The fair value of the investment property has been arrived at, by the trustees, on the basis of a valuation carried out in November 2017 by Gerald Eve LLP Chartered Surveyors, who are not connected with the charity. In addition a valuation was prepared by Gerald Eve LLP on 28 January 2022 which confirmed that the fair value estimate used by the trustees was still appropriate. The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties. The Trustees are of the opinion that there has been no material change in the value of the property. The re-valued element of the property is £954,393 (2020: £954,393).

34

THE SONS OF DIVINE PROVIDENCE (ORIONE CARE) NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 MARCH 2021

19 Investments (continued)

Fixed asset investments

Group

Fixed asset investments
Group
Listed investments
£
Cost or valuation
At 1 April 2020 and at 31 March 2021 13,416
Carrying amount
At 31 March 2020 and 31 March 2021 13,416

The Charity holds £1 of the share capital in each of Sons of Divine Providence Developments Limited and SDP Ventures Limited. The fixed asset investments in respect of the Charity are £13,418 (2020: £13,418).

20
Stock
Opening stock of development property
Transfer from fixed assets
Development costs incurred
Closing stock of development property		 Group
Charity
2021
2020
2021
2020
£
£
£
£
-
-
-
-
3,701,006
-
-
-
8,989,144
-
-
-
12,690,150
-
-
-

During the year £984,430 (2020: £324,458) of interest costs directly attributable to the financing of assets under construction were capitalised. The total capitalised interest at 31 March 2021 was £1,413,922 (2020: £429,492).

21
Debtors
Amounts falling due within one year:
Arrears of local authority and resident contributions
Other debtors
Amounts owed by subsidiary undertakings
Prepayments and accrued income		 Group
2021
£
43,984
29,171
-
35,294
108,449		 Charity
2020
2021
£
£
72,472
43,984
32,877
13,953
-
4,117,378
36,418
35,294
141,767
4,210,609		 2020
£
72,472
14,857
3,938,315
36,418
4,062,062

The interest the subsidiary (Sons of Divine Providence Developments Limited) has to pay to the parent charity on the intercompany balance above is 1% above the Contract Rate from the date of completion of the sale of the land which was 4th October 2018. The Contract Rate is 4% p.a. above the base rate of Barclays Bank. The Parent Charity has a fixed and floating charge over the assets of the subsidiary company. Developments’ debt to the Charity ranks below debts to lenders as set out in a Deed of Priority dated 10th January 2020.

35

THE SONS OF DIVINE PROVIDENCE (ORIONE CARE) NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 MARCH 2021

22
Creditors: amounts falling due within one year
Group
2021
£
Bank loans
210,000
Other taxation and social security
46,636
Trade creditors
58,643
Other creditors
302,378
Accruals and deferred income
1,085,733
1,703,390
23
Creditors: amounts falling due after one year
Group
2021
Bank loans
13,170,848		 2020
(restated)
£
-
53,557
5,750
129,900
232,721
421,928
Charity
2020
4,951,635		 Charity
2021
£
210,000
46,636
58,643
302.378
75,216
692,873
Group
2021
210,000		 2020
(restated)
£
-
53,557
5,750
129,900
228,971
418,178
Charity
2020
-

Bank loans comprise the following:

24 Provisions for liabilities
Provisions for liabilities 2021 2020
£ £
Rent overcharge provision 88,860 151,343

In the prior year the charity commissioned a review of how it had applied the Rent Standard. The review identified that the charity had not fully complied with the Rent Standard and, over a period of years, had overcharged some tenants in its social housing by £151,343. The charity is implementing the recommendations of the review, including a refund of rent to the affected tenants, some of which was refunded during the year.

25 Retirement benefit schemes

Defined contribution schemes

The group operates two defined contribution pension scheme for all qualifying employees. The assets of the schemes are held separately from those of the charity in independently administered funds.

The charge to profit or loss in respect of defined contribution schemes was £41,284 (2020: £46,193).

36

THE SONS OF DIVINE PROVIDENCE (ORIONE CARE) NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 MARCH 2021

26 Endowment funds – Group and Charity

The capital funds of the charity include endowment funds comprising the following held on trust for specific purposes:

Movement in funds Movement in funds Movement in funds Movement in funds
Balance at Incoming Revaluation Transfers Revaluations Balance at Incoming Revaluation Transfers Revaluations Balance at
1 April 2019 resources gains and losses 1 April 2020 resources gains and losses 31 March 2021
£ £ £ £ £ £ £ £ £ £ £
Permanent endowments
Nicolina Capaldi 208,831 - - (208,831) - - - - - - -
208,831 - - (208,831) - - - - - - -

The endowment fund represents the residuary estate of Nicolina Capaldi the capital of which can be held as an investment. The income arising from the fund can be used for the general purposes of the charity or for the benefit of the poor in third world countries. The will includes the clause that if the trustees are of the view that it is no longer practicable to retain the capital then the capital may be expended as if it were income on the general purposes of the charity but with the donors wish that they would prefer it used for the benefit of the poor in third world countries.

During the prior year the trustees agreed to convert the remaining £208,831 to income, in order to assist with cash flow.

37

THE SONS OF DIVINE PROVIDENCE (ORIONE CARE) NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 MARCH 2021

27 Restricted funds – Group and Charity

The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:

Movement in funds Movement in funds Movement in funds Movement in funds
Balance at Incoming Resources Balance at Incoming Resources Balance at
1 April 2019 resources expended 1 April 2020 resources expended 31 March 2021
£ £ £ £ £ £ £
Bread of Life (Child Sponsorship) 23,440 32,366 (29,715) 26,091 28,224 (30,672) 23,643
FODO Pilgrimages 21,759 22,533 (25,945) 18,347 - - 18,347
Covid support grants - - - - 119,970 (119.970) -
45,199 54,899 (55,660) 44,438 148,194 (150,642) 41,990

Bread of Life supports poor children in the developing nations by providing food, water, clothing, medicine, education and life skill training. Fodo is taken from the Friends of Don Orione and each year the friends organise a pilgrimage to either the Holy Land, Rome or the religious sites of Italy.

38

THE SONS OF DIVINE PROVIDENCE (ORIONE CARE) NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 MARCH 2021

28 Designated funds

The income funds of the charity include the following designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes:

Group
Balance at
1 April 2019
Expenditure
£
£
Fixed assets (net of loans secured)
4,253,156
(36,630)
Investment property fund
1,276,711
-
5,529,867
(36,630)
Charity
Fixed assets
5,091,803
(36,630)
Investment property fund
1,276,711
-
6,368,514
(36,630)		 Transfers Revaluations,
gains and
Balance at
1 April 2020
Expenditure
Transfers
Balance at
31 March 2021
£
£
£
£
£
£
600,799
-
4,817,325
(22,078)
1,252,629
6,047,876
-
-
1,276,711
-
53,122
1,329,833
600,799
-
6,094,036
(22,078)
1,305,751
7,377,709
1,012,781
-
6,067,954
(22,078)
2,000
6,047,876
-
-
1,276,711
-
53,122
1,329,833
1,012,781
-
7,344,665
(22,078)
55,122
7,377,709

The Fixed asset fund represents the net book value of fixed assets held by the Charity at the year end.

The investment property fund represents the value of Pipes Place in Shorne. Flats in the property are let to tenants at market rents.

39

THE SONS OF DIVINE PROVIDENCE (ORIONE CARE) NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 MARCH 2021

29 Analysis of net assets between funds

Unrestricted Designated Restricted Endowment Total Unrestricted Designated Restricted Endowment Total
funds funds funds funds funds funds funds funds
(restated) (restated)
2021 2021 2021 2021 2021 2020 2020 2020 2020 2020
Group £ £ £ £ £ £ £ £ £ £
Fund balances at 31
March 2021 are
represented by:
Tangible assets - 6,047,876 - - 6,047,876 - 9,768,960 - - 9,768,960
Investment properties - 1,329,833 - - 1,329,833 - 1,276,711 - - 1,276,711
Investments 13,416 - - - 13,416 13,416 - - - 13,416
Current assets/(liabilities) 11,675,841 - 41,990 - 11,717,831 248,501 - 44,438 - 292,939
Long term liabilities (13,170,848) - - - (13,170,848) - (4,951,635) - - (4,951,635)
Provisions (88,860) - - - (88,860) (151,343) - - - (151,343)
(1,570,451) 7,377,709 41,990 - 5,849,248 110,574 6,094,036 44,438 - 6,249,048
Charity
Fund balances at 31
March 2021 are
represented by:
Tangible assets - 6,047,876 - - 6,047,876 - 6,067,954 - - 6,067,954
Investment properties - 1,329,833 - - 1,329,833 - 1,276,711 - - 1,276,711
Investments 13,418 - - - 13,418 13,418 - - - 13,418
Current assets/(liabilities) 4,077,413 - 41,990 - 4,119,403 4,148,799 - 44,438 - 4,193,237
Long term liabilities (210,000) - - - (210,000) - - - - -
Provisions (88,860) - - - (88,860) (151,343) - - - (151,343)
3,791,971 7,377,709 41,990 - 11,211,670 4,010,874 7,344,665 44,438 - 11,399,977

40

THE SONS OF DIVINE PROVIDENCE (ORIONE CARE) NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 MARCH 2021

30 Operating lease commitments

At the reporting end date the charity had outstanding commitments for future minimum lease payments under noncancellable operating leases, which fall due as follows:

Within one year
Between two and five years
In over five years		 2021
£
5,472
20,659
-
26,131		 2020
£
5,472
21,888
4,243
31,603

31 Capital commitments

The Sons of Divine Providence Developments Ltd (the Charity’s subsidiary trading company) has a contracted commitment to complete the redevelopment of the Orione House care home site, now known as Mulberry Court, and Number 29 Lower Teddington Road. At the year end, and subject to final financial statements being received, the estimated amount outstanding on Mulberry Court was £5,284,909, and approximately £500,000 was outstanding on 29 Lower Teddington Road.

The Sons of Divine Providence (the Charity) has a commitment to redevelop Number 27 Lower Teddington Road. The estimated cost will be £850,000.

The Charity also has a commitment under a Section 106 Agreement with the London Borough of Richmond Council to convert Number 13 Lower Teddington Road into social housing by September 2025. The charity has not yet entered into a building contract for this work.

32 Related party transactions

During the year the Charity received a loan of Euro 200,000 (£178,718) from Orione Care Ireland based in the Republic of Ireland. Fr. John Perrotta and Fr. Jose Simionato are also directors of this organisation. The loan bears no interest and has no fixed repayment date and is repayable when the Charity has sufficient funds from the sale of Mulberry Court.

In the prior year, a second loan of Euro 36,868 was received on the 3[rd] February 2020 equivalent to £30,000. This was to cover the termination payments disclosed in notes 13 and 37. The terms of the loan are as for the first loan above.

Transactions with subsidiaries are described in note 33.

41

THE SONS OF DIVINE PROVIDENCE (ORIONE CARE) NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 MARCH 2021

33 Subsidiaries

Details of the charity's subsidiaries at 31 March 2021 are as follows:

Name of undertaking Registered
Nature of business		 Class of % Held
office shares held Direct
Sons of Divine Providence England and Wales Property development Ordinary 100
Developments Limited
SDP Ventures Limited England and Wales Dormant Ordinary 100

During the period management charges of £35,654 (2020: £43,750) were recharged to Sons of Divine Providence Developments Limited in accordance with the agreement for sharing of head office facilities and staff time. During the year expenditure incurred on behalf of the subsidiary and charged to the intercompany account amounted to £(18,497) (2020: £195,166). Sons of Divine Providence Developments Limited repaid the Charity £80,000 (2020; £600,000) during the year and interest totalling £197,559 (2020: £234,771) was charged on the loan balance.

The Charity’s subsidiaries are limited companies wholly owned by the parent charity as noted above. The companies are not registered charities, nor are they registered social landlords. The Sons of Divine Providence Developments Ltd was established to redevelop the site of the former Orione House care home and 29 Lower Teddington Road. SDP Ventures Ltd was established to carry out the proposed re-development of the Molesey Venture site to provide improved accommodation for current tenants and residents, plus additional social and market housing.

The net liabilities of The Sons of Divine Providence Developments Limited at the end of the reporting period were £44,385 (2020: net liabilities £30,451). During the year, The Sons of Divine Providence Developments Limited made an operating loss of £13,934 (2020: deficit £28,052), incorporating turnover of £nil and administrative expenses of £13,934 (2020:£ 28,052).

The net assets of SDP Ventures Limited at the end of the reporting period are £nil and made an operating loss of £nil with no turnover and expenditure incurred during the year. The company is currently dormant.

Sons of Divine Providence
Developments Limited
Fixed assets - Tangible
Current assets
Creditors: amounts falling due
within one year
Creditors: amounts falling due
after one year
Net liabilities		 2021
2020
-
8,821,481
18,044,358
41,768
(5,127,895)
(3,942,065)
(12,960,848)
(4,951,635)
(44,385)
(30,451)

42

THE SONS OF DIVINE PROVIDENCE (ORIONE CARE) NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 MARCH 2021

34 Cash generated from operations 2021 2020
(restated)
£ £
Deficit for the year (399,800) (550,573)
Adjustments for:
Investment income (74,431) (75,185)
Loss/(gain) on disposal of tangible fixed assets - 4,364
Fair value gains and losses on investment properties - -
Fair value gains and losses on investments - (11,498)
Depreciation and impairment of tangible fixed assets 22,078 25,484
Movements in working capital:
Increase in stock (8,989,144) -
Decrease in debtors 33,318 11,364
Increase in creditors 1,071,462 176,126
(Decrease)/Increase in provisions (62,483) 151,343
Cash (absorbed by) operations (8,399,000) (268,575)
35 Analysis of changes in net (debt)/funds
At 1 April 2020 Cash flows At 31 March 2021
£ £ £
Cash at bank and in hand 573,100 49,522 622,622
Loans falling due within one year - (4,327,378) (4,327,378)
Loans falling due after more than one year (4,951,635) (4,101,835) (9,053,470)
(4,378,535) (8,379,691) (12,758,226)

36 Events after the balance sheet date

Subsequent to the year end the subsidiary company, The Sons of Divine Providence Developments Ltd, took out a further loan of £1,869,197 in July 2021 to fund variations and additions to the Mulberry Court development. In October 2021 the charity took out a loan of £3,315,000 secured on the Molesey site. This was primarily to fund a planning application for the redevelopment of the site, to pay for building works in Hampton Wick and assist the charity’s cash flow.

The trading subsidiary refinanced all of its loans with Hampton Wick Senior and United Trust Bank in March 2022 into new loans with a repayment date of March 2023.

37 Prior year adjustment

The prior year adjustment relates to the loan of £30,000 equivalent to Euro 36,868 to settle a termination payment due to a former employee. The payment had been made directly by Orione Care (Ireland) and as a result of an oversight was not identified during the preparation of the accounts. In addition, the intercompany loan has been reclassified as repayable within one year rather than over one year.

43

Issuer

HW Fisher

Document generated Wed, 23rd Mar 2022 10:23:31 UTC Document fingerprint a8793b15bbccbaffdb41697133427fc7

Parties involved with this document

Document processed

Party + Fingerprint

Wed, 23rd Mar 2022 11:21:50 UTC Fr, Jose Simionato - Signer (b8a8a2e6cd10ac5163759d96bc4d996c) Wed, 23rd Mar 2022 13:22:48 UTC Sailesh Mehta - Signer (58d33eec309fcc26118721ffa2d7f01c) Audit history log Date Action Wed, 23rd Mar 2022 13:22:48 UTC The envelope has been signed by all parties. (217.207.100.70) Wed, 23rd Mar 2022 13:22:48 UTC Sailesh Mehta signed the envelope. (217.207.100.70) Wed, 23rd Mar 2022 11:59:20 UTC Sailesh Mehta viewed the envelope. (217.207.100.70) Wed, 23rd Mar 2022 11:59:11 UTC Sailesh Mehta viewed the envelope. (110.239.218.31) Wed, 23rd Mar 2022 11:58:44 UTC Sailesh Mehta opened the document email. (217.207.100.70) Wed, 23rd Mar 2022 11:21:51 UTC Document emailed to smehta@hwfisher.co.uk (35.178.204.102) Wed, 23rd Mar 2022 11:21:50 UTC Sent the envelope to Sailesh Mehta (smehta@hwfisher.co.uk) for signing. (195.213.184.143) Wed, 23rd Mar 2022 11:21:50 UTC Fr, Jose Simionato signed the envelope. (195.213.184.143) Wed, 23rd Mar 2022 11:19:43 UTC Fr, Jose Simionato viewed the envelope. (195.213.184.143) Wed, 23rd Mar 2022 11:19:34 UTC Fr, Jose Simionato opened the document email. (172.226.0.91) Wed, 23rd Mar 2022 10:41:56 UTC Document emailed to JSimionato@sonsofdivine.org (3.11.68.255) Wed, 23rd Mar 2022 10:41:55 UTC Sent the envelope to Fr, Jose Simionato (jsimionato@sonsofdivine.org) for signing. (217.207.100.70) Wed, 23rd Mar 2022 10:28:37 UTC Sailesh Mehta has been assigned to this envelope (217.207.100.70) Wed, 23rd Mar 2022 10:28:37 UTC Fr, Jose Simionato has been assigned to this envelope (217.207.100.70) Wed, 23rd Mar 2022 10:27:06 UTC Document generated with fingerprint a8793b15bbccbaffdb41697133427fc7 (217.207.100.70) Wed, 23rd Mar 2022 10:26:52 UTC Document generated with fingerprint a67439ea5a0ff6d6d35f2148906e8981 (217.207.100.70) Wed, 23rd Mar 2022 10:26:30 UTC Document generated with fingerprint 5c27ee76f9c9eb201aad595195c2b217 (217.207.100.70)

Wed, 23rd Mar 2022 10:24:23 UTC Document generated with fingerprint 1e2010f68e899cf9832de12c63544b97 (217.207.100.70) Wed, 23rd Mar 2022 10:23:58 UTC Document generated with fingerprint ca5fe78a1da14fec5b7a2b94f90a8dd5 (217.207.100.70) Wed, 23rd Mar 2022 10:23:31 UTC Envelope generated by Linda Treadwell (217.207.100.70)