2022-03-31-accounts - The Sons Of Divine Providence

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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 2022

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

Trustees	Fr Stephen Beale
	Fr Philip Kehoe
	Fr John Perrotta (Deceased 31 May 2023)
	Mrs Bernadette Griffin
	Fr J Simionato
	Olutade Olalekan (appointed 15 July 2022)
	Keith Wilson (appointed 27 March 2023)
Secretary	Mr John Clark
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

Chairmans’ Report………………………………………………………………………………………………………………………………………….1 Trustees’ Report ................................................................................................................................................... 2 Statement of Trustees’ Responsibilities ............................................................................................................. 12 Independent Auditor’s Report ........................................................................................................................... 13 Consolidated Statement of Comprehensive Income and Statement of changes in equity ............................... 15 Consolidated and Charity Statement of Financial Position ................................................................................ 19 Group Statement of Cash Flows ......................................................................................................................... 20 Notes to the financial statements ...................................................................................................................... 21

THE SONS OF DIVINE PROVIDENCE

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2022

Chairman’s Report 2021/22

I will begin my report by thanking our staff and colleagues for the continued dedication shown through the challenges of the later stages of the Covid-19 pandemic. The times are increasingly uncertain with cost of living spiralling out of control and the war in Ukraine having an impact felt far beyond its borders.

There have been many changes in the last year as we look to move forward and navigate the global challenges ahead of us. In August 2022 we said a fond farewell to our former Company Secretary who had been with the company for 37 years with John Clark, Executive Director taking up the role. With our Finance manager retiring at the end of 2022, this has been a time of real change. We were pleased to create a new role of Head of Finance to enable us to modernise our systems and processes in November 2022.

The Covid-19 pandemic took its toll on the charity’s finances to such an extent that in February 2022 the trustees voted to begin a consultation process to close Cardinal Heenan House in Lancashire. After a rigorous and supportive process for the residents, families, and staff the home was closed in May 2022 with the staff being made redundant. This was a signal shift by the charity as it has slowly withdrawn from care over the last few years seeking a more financially sustainable model to help them maintain their charitable objects. In August 2022 the final care home, Sundial House under the direct management by the charity also began a process of consultation for closure. Similarly, an emphasis on support for the residents, staff and the families has been paramount throughout this process, the home and Horticultural Centre closing in April 2023.

The shift towards housing has seen John Clark begin a renewed emphasis on long term strategies for the charity to ensure full compliance with the Regulator of Social Housing standards but also to be mindful of the wider charity’s mission.

The completion of Mulberry Court in December 2021 was received positively despite the delays caused by the pandemic. Sales are progressing and as I write we have 13 completed sales and exchanged contracts. The charity remains hopeful that this will show a significant profit to reinvest back into the charity.

The planning process for the East Molesey site is as we write progressing well with excellent prospects for improving our stock and long-term increasing our income. More importantly for the charity it will also see a direct increase in the number of people we will be able to house in modern future ready accommodation.

We have also added strength and experience in Social Housing to our board of trustees to enable us to ensure scrutiny and good governance, we are pleased to welcome Olutade Olalekan and Keith Wilson to our board in July 2022 and March 2023.

It has been a challenging and transformative year but as we look to launch our long-term strategy, we are hopeful for the future in what we feel is a key time for the charity to be able to support the most vulnerable.

It is with great sadness that we reflect on the death of Fr John Perrotta on 31[st] May 2023 as a long standing and committed member of the congregation and the charity, his loss will be deeply felt but we remember fondly a lifetime of service and support here and in our sister charity in Dublin.

Fr Joseph Simionato Fr. Jose Simionato FDP Chairman of Trustees

THE SONS OF DIVINE PROVIDENCE

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2022

The Trustees’ Annual Report contains a Directors’ Report as required by company law. The report and financial statements 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.

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 tenshilling 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 1st 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 using 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 several 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 8th 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 considered 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.

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 and to the date of signing the accounts are shown on the information page.

THE SONS OF DIVINE PROVIDENCE

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2022

As a religious charity it is appropriate that members of the religious congregation are involved in the governance of the charity. Most 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 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. It is with great sadness that we advise that Fr John Perrotta passed away in May 2023 after many years of service to the congregation and charity.

Fr. Philip Kehoe stood down as Chairman of the Board of Trustees on the 29th of June 2021. He remains a trustee, but he has been succeeded as Chairman by Fr. Jose Simionato. John Clark the Executive Director was appointed in January 2022 reports into Fr. Joseph 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 Executive Director, 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. Since the retirement of the Company Secretary and Finance manager in 2022 the senior management team is now, an Executive Director, Head of Housing and Operations and a Head of Finance.

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. This structure has evolved over 2022 and early 2023 to reflect the retirement of several key personnel.

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 autoenrolment 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.

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 SONS OF DIVINE PROVIDENCE

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2022

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

Two of the Congregation Trustees sit on the board of The Sons of Divine Providence in Ireland (Irish Charity No. CHY 6038). One of these was Fr John Perrotta who passed away in May 2023.
Funding is provided to the Congregation's charity in Kenya ("Congregation of The Sons of Divine Providence Registered Trustees")
Funding is also provided to "The Kripa Trust", the trust through which the Congregation works in India.
The English charity co-operates with The Sons of Divine Providence Congregation at an international level and contributes to funding for the Congregation’s international projects.

Wholly Owned Subsidiary Trading Companies.

The trustees have established two wholly owned subsidiary trading companies:

To take forward the project to re-develop Orione House the trustees established a wholly owned subsidiary trading company called The Sons of Divine Providence Developments Ltd (company number 11393450). This company was incorporated on the 1st of June 2018. There were two directors of The Sons of Divine Providence Developments Ltd: Fr. Jose Simionato and Fr. Philip Kehoe during the reporting period, who are also members of the board of charity trustees. On 4 July 2022 Mr John Clark was appointed a director.

To take forward the proposed redevelopment of the charity’s site and services in East Molesey the trustees established a wholly owned subsidiary trading company called SDP Ventures Ltd (company number 11862222). This company was incorporated on the 5th of March 2019. There are three directors of SDP Ventures Ltd: Fr. Jose Simionato, Fr. Philip Kehoe and Mr John Clark (who was appointed on 4 July 2022) of whom Fr. Jose Simionato and Fr. Philip Kehoe are also members of the board of charity trustees. This company is currently dormant.

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 active trading company uses some of the charity’s resources, including staff time. The use of the charity’s resources by the subsidiary company 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 company.

Related Party Transactions

On the 4th 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 28th 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.

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 16th of December 2019.

On the 1st 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 26th 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.

THE SONS OF DIVINE PROVIDENCE

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2022

Governance

Regulator code of guidance – the charity is working through a full review over the course of 2023 and 2024 of its compliance with the Governance and Viability standards as well as the other regulatory standards as part of the charity improvement plan.

Charity Code of governance – the charity is working through a review to ensure full compliance with the charity code of governance as part of the overall charity improvement plan

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:

People who are sick
Young people
People who are elderly
People with mental disabilities
People with physical disabilities
Homeless people
People in housing need
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.

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 1st of July 2021 and have resolved to abide by its terms of membership.

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.

THE SONS OF DIVINE PROVIDENCE

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2022

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 31st of March 2022. 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:

that the aims of the organisation continue to be charitable.
that the aims and the work done give identifiable benefits to individuals in need.
that the benefits are for the public, are not unreasonably restricted in any way; and
that there is no detriment or harm arising from the aims or activities.

Achievements and Performance

The Charity’s activities during the year were:

Providing financial support for the Congregation's overseas missions and international projects.
Providing spiritual and pastoral services to people in England.
Providing good quality social care and housing services.
Improving the quality of the charity's housing and care services.
Developing the staff who work in the charity's services.

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

Financial Support to the Congregation's Overseas Missions and International Projects.
£29,118 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.

2. Spiritual and Pastoral Services in England

The Congregation runs a retreat centre in Lancashire.
Priests of the Congregation run two parishes in Lancashire and two parishes in Middlesex.
Priests of the Congregation help neighbouring parishes by deputising for local parish clergy.
Priests of the Congregation provide the Sacraments and spiritual and pastoral support to tenants and residents of the care homes.
A priest of the Congregation provides an apostolate to the Polish Community in Hampton Wick.

3. Providing Care Homes, Housing, and a Day Centre

The charity ran a residential care home for older people, Cardinal Heenan House in Roby Mill, Lancashire, providing 32 beds. Given the financial challenges in the sector it was agreed in February 2022 that the consultation process would begin to review future options for closure. Following this the home was closed in May 2022.
The charity runs a residential care home for people with learning disabilities in East Molesey, Surrey providing care and accommodation for up to seven people. Following a decision in December 2019 the board decided to progress the closure of the home in beginning in August 2022. After a lengthy process to ensure resident welfare, the home was closed in April 2023.
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).
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.
The charity provides 19 units of designated supported housing for people with learning disabilities.
The charity provides 51 units of general needs social housing.

4. Improving the Quality of Housing and Care Services

All repairs were completed within timescale.
The budget for reactive repairs and maintenance, planned maintenance, furniture fittings and equipment renewals for 2021/22 was £289,223; the actual expenditure was £216,597.

THE SONS OF DIVINE PROVIDENCE

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2022

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

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.
With John Clark joining the Charity in Jan 2022 as an accredited coach and mentor he has also begun a staff development programme and sought a regular 1:1 schedule.

Complaints

There were two complaints regarding care at Cardinal Heenan House, these were investigated and responded to with any necessary actions taken to remedy and improve processes.

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 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

The events which affect the accounts for the year to March 2021 continues to affect the accounts for the year to March 2022:

Low occupancy at Cardinal Heenan House; leading to the eventual closure in May 2022.
Continued presence of Covid 19 virus.
The greatly reduced donations and legacies; and

In addition, the following events have also affected the accounts for the year to March 2022:

The costs of closure of Cardinal Heenan House
Development planning for Molesey Venture
Vacancies at St John’s
The sluggish property sales market

We were unable to change the status of St John’s from resident to supported living accommodation as planned in previous year. Hence, the operation at St John’s continued to be running at a loss as rent received was inadequate to cover the maintenance cost of the property. However, we are expecting improvement in the coming months as the vacancies at St John’s are gradually being filled and we are exploring options for the building in the long-term future.

The sales of Mulberry Court were slower than originally expected due to the rise in interest rate as well as the slowing down of the economy in UK. Only 6 out of 28 completed apartments were sold in the year to March 2022 and further 7 sales and 3 reservations received. This has greatly increased the finance cost for the development and in turn put extra stress on the finance of the Charity. While the delays are disappointing the trustees remain confident of clearing the debts and gaining a significant cash influx once the sales are completed.

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 2022 is £8,669,281 of which £6,941,462 is from the sales of apartments in Mulberry Court. After that, all other income is £1,727,819 as compared with the total for March 2021 of £1,752,566.

The total operating expenditure for the year to March 2022 is increased to £8,103,527 from the total of £2,241,003 for the year to March 2021. Of this, £5,478,827 is the related cost of sales of the apartments in Mulberry Court that were sold leaving £2,624,700 which includes redundancy payments for the closure of Cardinal Heenan House of £193,450.

The result of the above was that the surplus before taxation for the year to March 2022 was £469,536 compared with the operating deficit of the previous year to March 2021 of £488,433.

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 of 31 March 2022 compared with these positions as at 31 March 2021.

THE SONS OF DIVINE PROVIDENCE

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2022

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

----- Start of picture text -----
Metric 2022 2021 Comment
1. Reinvestment 13.5% 48.8% The rate of reinvestment has decreased due to the completion of the
major part of the redevelopment project by the trading subsidiary
2. New Supply 0% 0% No new social housing units or non-social housing units were acquired
Delivered or developed during 2021/2022
3. Gearing % 77.9% 76.1% The increase in borrowing during 2021/2022 is due to increase in
finance cost due to the slow sales of the redeveloped property by the
trading subsidiary
4. Earnings Before -54.3% -42.7% The Charity continues to make deficit and is incurring interest on the
Interest, Tax, development loan.
Depreciation,
Amortization, Major
Repairs Included,
EBITDA MRI Interest
Cover.
5. Headline Social £4,723 £3,636 The Homes and Communities Agency summary report “Delivering
Housing Cost Per Better Value for Money: Understanding differences in Unit Costs”
Unit (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 56% general needs housing, 21% supported
housing and 23% residential care.
6. Operating margin % 52.4% -50.3% There was an increase in social housing rental income with the
(Social Housing) reduction of vacancies which has contributed to cover the
maintenance expenses
7. Operating Margin % -6.5% -21.8% There was an increase in social housing rental income with the
Overall reduction of vacancies which has contributed to cover the
maintenance expenses
8. Return on capital 10.9% -8.9% This is a negative figure because the charity has been in deficit in
recent years, largely due to loss-making care services
----- End of picture text -----

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 £570,000. Total reserves are currently £5,869,225 of which free reserves are £521,807.

Currently reserves are below the expected level and 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 represent the net book value of fixed assets used for charitable purposes net of any associated loan finance and the fair value of the investment property. The trustees have also instructed the management team in their new strategy of September 2022 to develop long term sources of income and focus on the sustainability of services.

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.

THE SONS OF DIVINE PROVIDENCE

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2022

Fundraising

The principal sources of funding have been:

Rents and care home and day centre fees
Donations and legacies.

No fundraisers have been employed and no fundraising targets were set. A small number of properties are let at market rents to generate funds for the charity. 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 reduced to three publications. This resulted in a reduction of fundraising costs for the year from £2,891 to £1,827, while donations and grants received reduced from £214,303 to £182,498, 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 September 2022. In addition, the trustees regularly review the cash flow forecast at their meetings.

The major risks identified are:

Disaster scenarios of fire, floods, or other emergencies in one of the properties.
Serious injury or loss of life to a member of staff or member of the public.
Reduced ability to provide services due to depletion of staff, for example in the event of a “flu” epidemic, or loss of key staff.
Depletion of cash resources leaving the charity unable to continue operating due to the costs of the Mulberry Court Development.
Depletion of the charity’s assets due to fraud, reduction in the value of investments and deterioration of the charity’s
properties.
Safeguarding issues in the charity’s care or housing services.
Cyber attack
Pandemic
Risks arising from the handling of personal data with the introduction of the General Data Protection Regulations.

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.

The charity’s subsidiary trading company, The Sons of Divine Providence Developments Ltd, has borrowed money to complete the redevelopment 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 March 2022 seven sales had completed and as at the date these accounts are signed, 13 sales had completed. The trustees are confident that further sales will follow in line with professional valuations.

The Coronavirus pandemic

The Coronavirus pandemic continues to present risks to health and life of our service users and staff. The pandemic led to a financial risk because it affected occupancy of Cardinal Heenan House, leading to reduced income and strain on cash flow. This led to the decision to close the home the process for which commenced in February 2022 and resulted in the home being closed in May 2022.

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 in a previous year.

THE SONS OF DIVINE PROVIDENCE

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2022

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 completed with 26 of the 28 apartments ready for sale and the final flats finished in March 2022. The trustees intend to complete the project by developing 29 and 27 Lower Teddington Road for sale in 2023. This was progressed and the works are due to complete September 2023.

The charity has progressed its plans to develop the Molesey site and is expecting planning to be granted in July 2023. 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. In September 2022 the Trustees laid out the framework for the long-term plans and strategy of the charity broken down over the next 3 years with aims beyond this for managed growth of the charity’s delivery. This strategy was broken down into 3 stages beginning with the ‘Stabilise’ phase. Given the ongoing challenges to the charity in June 2023 the Trustees elected to extend this stabilise phase until 2025 to focus on core activities and general compliance.

Going concern

The Group made a surplus for the year before tax of £470k (2021: deficit of £488k); of this surplus, £1.5m arose on sales from the subsidiary’s property development. Thus, the parent charity made a deficit of £993k excluding the provision for intercompany loans of £2.85m (2021: deficit of £188k). The Covid-19 pandemic adversely affected the occupancy of Cardinal Heenan House residential care home with occupancy of approximately 60% throughout the financial year, leading to a large shortfall in income. The home was closed following consultation in May 2022 and the results for the year include provision for redundancy of £193k. At the year end the Group had net assets of £5.9m (2021: £5.5m) and the parent charity had net assets of £7.2m (2021: £10.9m). The parent company and subsidiary both have loan finance in place; the total of the external loan financing owed by the parent charity at the year end was £3.4m (2021: £420k) and by the subsidiary at the year-end was £13.7m (2021: £13.0m).

Since the year end, both the parent charity and subsidiary have entered into refinancing arrangements as follows:

Parent - The repayment date for the Molesey Senior loan of £3.2m as at 31 March 2022 was extended from 5 October 2022 firstly to 5 April 2023 and then to 5 July 2023 and then again to 5 August 2023; at the date the accounts are signed, the balance is £4m. The parent charity is currently investigating alternative financing options as the current lender does not wish to further extend the loan although they do not anticipate demanding immediate repayment on that date. Alternative arrangements are reasonably well advanced for £3.1m of the required replacement funding and discussions are underway for the remaining funding requirement of £0.9m. The existing loans are secured on properties with a potential value in excess of the loans.

A new loan was entered into in August 2022 with United Trust Bank for £2.1m with £1.6m drawn down and a balance outstanding at the date these accounts are signed of £1.5m; the repayment date is February 2024. This loan is to be settled through the sale of properties held within the subsidiary.

A further new loan was entered into in April 2022 with Charity Bank with a repayment date of April 2025 secured on the parent’s investment property. The balance at the date these accounts are signed is £0.9m.

The final loan within the parent is a Coronavirus Business Interruption Loan which had an outstanding balance of £280k at 31 March 2022. Post year end, the settlement date was extended and this is now to be settled in equal monthly instalments of £70k from September 2023. Subsidiary - The repayment date for the loans of £13.7m as at 31 March 2022 was extended from March 2023 to the end of July 2023; as at the date these accounts are signed, £9.8m remained outstanding. The directors of the subsidiary company remain confident of being able to refinance its loans with the current loan providers, which is reflected in the company's ongoing long term relationship with them, or finding alternative sources of finance. The loans are secured on properties with a potential value in excess of the loans.

The parent company and the subsidiary therefore remain confident of being able to refinance and thus repay all of its debts in a timely manner. They recognise that the challenges of the pandemic and subsequent global events have had a significant impact on the pace of sales completion at Mulberry Court, the major development project which has been financed by the subsidiary company loans. Interest in the properties at Mulberry Court remains positive and the sales continue to progress with 7 sales completed as at 31 March 2022 with revenue of £6.9m with a further 6 sales with revenue of £5.7m completed as at the date these accounts are signed. A further 15 properties remain to be sold in Providence House (part of Mulberry Court) with expected revenue in the region of £12m; it is anticipated that these properties will be sold over the next 18 months from the date these accounts are signed. The proceeds of sales are being utilised to settle the subsidiary’s loans. In addition, the Parent Charity is expecting to sell certain other property and realise other capital sums over the next six months to enable it to continue to finance its day-to-day operations whilst it brings about the changes required to stabilise its business.

THE SONS OF DIVINE PROVIDENCE

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2022

The group is in ongoing discussion with its lenders and are reasonably confident that the group and parent loans will either be refinanced with existing lenders or alternative sources of finance will be found. They are also satisfied that they have sufficient plans in place to manage their day-to-day cashflow needs through realisation of surplus assets and receipt of other one off items. The trustees accept that the nature of the position on refinancing and their cash flow requirements suggests that a material uncertainty exists that may cast significant doubt upon the ability of the group and parent company to continue as a going concern. Nevertheless, the trustees have a reasonable expectation that the group and parent charity will have adequate resources to continue in operational existence for twelve months from the date of approval of these financial statements and thus consider it appropriate to continue adopting the going concern basis in preparing the financial statements.

Asset Cover for Funds

Note 27 sets out an analysis of the assets attributable to the various funds. 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

A resolution proposing that, HW Fisher LLP, be re-appointed as auditors they be re-appointed will be put to the Annual General Meeting.

The Report of the Board of Trustees and the Strategic Report are approved on behalf of the Board of Trustees.

Fr Joseph Simionato

Fr. Jose Simionato fdp

Trustee

Dated: 21 Jul 2023

THE SONS OF DIVINE PROVIDENCE (ORIONE CARE) TRUSTEES' RESPONSIBILITIES STATEMENT

FOR THE YEAR ENDED 31 MARCH 2022

The trustees are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

Company law requires the trustees to prepare financial statements for each financial year. Under that law the trustees have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and group and of the surplus or deficit of the company and group for that period. In preparing these financial statements, the trustees are required to:

select suitable accounting policies and then apply them consistently;
observe the methods and principles in the housing SORP;
make judgements and accounting estimates that are reasonable and prudent;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company and group will continue in business.

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

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 2022 which comprise the consolidated statement of comprehensive income, consolidated statement of changes in equity, consolidated and charity statement of financial position, the consolidated 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:
give a true and fair view of the state of the group's and the parent company's affairs as at 31 March 2022 and of the group's profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.

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.

Material uncertainty relating to going concern

We draw attention to note 1.2 in the financial statements which indicates that the group is reliant on support of its external lenders. The parent charity is in the process of seeking alternative financing for one of its loans which is due to be repaid in early August 2023 as the current lender does not wish to extend its loan although the lender does not anticipate demanding immediate repayment. The trading subsidiary is currently renegotiating both its loans with its external lender which are due for repayment at the end of July 2023. Whilst the group is optimistic the loans will be refinanced, this process has not yet been concluded. In addition, the parent charity is expecting to sell certain property assets and realise other capital sums over the next six months from the date these accounts are signed to enable it to continue to finance its day-to-day operations whilst it brings about the changes required to stabilise its business. These events or conditions, along with the other matters as set out in note 1.2, indicate that a material uncertainty exists which may cast significant doubt on the group and parent company's ability to continue as a going concern.

Our opinion is not modified in respect of this matter. In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Our responsibilities and the responsibilities of the directors 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:

the information given in the trustees' report, which includes the directors’ report and strategic report prepared for the purposes of company law, for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the directors’ report and strategic report included within the trustees' report has been prepared in accordance with applicable legal requirements.

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 strategic report and 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 requires us to report to you if, in our opinion:

adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of trustees' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit;

Responsibilities of trustees

As explained more fully in the statement of trustees' responsibilities, the trustees, 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:

We enquired of management the systems and controls the group and charity has in place, the areas of the financial statements that are mostly susceptible to the risk of irregularities and fraud, and whether there was any known, suspected or alleged fraud.
We obtained an understanding of the legal and regulatory frameworks applicable to the group and charity. We determined that the following were most relevant: the Companies Act 2006, Charities Act 2011 and the Housing SORP. We also considered the provisions of other laws and regulations that do not have a direct effect on the financial statements but with which compliance may be fundamental to the charity’s and group’s ability to operate.
We considered the incentives and opportunities that exist in the group and charity, including the extent of management bias, which present a potential for irregularities and fraud to be perpetuated, and tailored our risk assessment accordingly.
- Using our knowledge of the group and charity, together with the discussions held with the group and charity at the planning stage, we formed a conclusion on the risk of misstatement due to irregularities including fraud and tailored our procedures according to this risk assessment.

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.
- 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.
- Obtaining third-party confirmation of material bank and loan balances.
- Review of the costs relating to stock of properties.
- Documenting and verifying all significant related party and intercompany balances and transactions.
Assessing the validity of the classification of income, expenditure, assets, and liabilities between unrestricted, designated and restricted funds.
- Reviewing key consolidation adjustments.
Performing a physical verification of key fixed assets.
Reviewing and challenging the assumptions and judgements used by management in their significant accounting estimates and critical judgements in relation to investment properties, finance leases and intercompany debt recoverability.
- Reviewing documentation such as the director’s minutes for discussions of irregularities including fraud.

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. 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.

Carol Rudge

Carol Rudge (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

21 Jul 2023

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

FOR THE YEAR ENDED 31 MARCH 2022

Notes Turnover Housing and care services Day activities Donations, legacies, and grants 3 Religious congregation Rent receivable 4 Other trading activities Total operating income 6 Operating expenditure Housing and care services 8 Day activities 8 Religious congregation 8 Missions 8 Raising funds 7 Expenditure related to trading activities Total operating expenditure 6 Operating surplus Interest receivable Interest payable13 Net gains/(losses) on investments 14 Surplus before tax Taxation 16 Total comprehensive income for the year after tax		Unrestricted funds 2022 £ 1,413,476 - 73,036 50,726 81,119 6,941,462 8,559,819 2,345,177 4,700 127,097 38,401 1,827 5,478,827 7,996,029 563,790 336 (156,721) 60,167 467,572 (114,996) 352,576	Restricted funds 2022 £ - - 109,462 - - - 109,462 78,380 - - 29,118 - - 107,498 1,964 - - - 1,964 - 1,964		Total 2022 £ 1,413,476 - 182,498 50,726 81,119 6,941,462
					8,669,281
					2,423,557 4,700 127,097 67,519 1,827 5,478,827
					8,103,527
					565,754 336 (156,721) 60,167
					469,536 (114,996) 354,540

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.

THE SONS OF DIVINE PROVIDENCE (ORIONE CARE) CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 MARCH 2022

Total funds brought forward at 1 April 2021 as previously reported Prior year adjustment (Note 35) Total funds brought forward at 1 April 2021 as restated Total comprehensive income for the year Fund balances at 31 March 2022	Unrestricted funds 2022 £ 5,807,258 (334,563) 5,472,695 352,576 5,825,271	Restricted funds Total 2022 2022 £ £ 41,990 5,849,248 - (334,563)
		41,990 5,514,685 1,964 354,540 43,954 5,869,225

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

FOR THE YEAR ENDED 31 MARCH 2021

Notes Turnover Housing and care services Day activities Donations and grants 3 Religious congregation Rent receivable 4 Total operating income 6 Operating expenditure Housing and care services 8 Day activities 8 Religious congregation 8 Missions 8 Raising funds 7 Other expenditure 13 Total operating expenditure 6 Operating deficit Interest receivable Deficit for the financial year Total comprehensive expenditure for the year	Unrestricted funds 2021 £ 1,399,351 18,052 66,109 46,433 74,427 1,604,372 1,888,694 76,912 109,543 12,321 2,891 - 2,090,361 (485,989) 4 (485,985) (485,985)	Restricted funds 2021 £ - - 148,194 - - 148,194 119,970 - - 30,672 - - 150,642 (2,448) - (2,448) (2,448)		Total 2021 Restated £ 1,399,351 18,052 214,303 46,433 74,427
				1,752,566
				2,008,664 76,912 109,543 42,993 2,891 -
				2,241,003
				(488,437) 4
				(488,433)
				(488,433)

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.

THE SONS OF DIVINE PROVIDENCE (ORIONE CARE) CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 MARCH 2021

Total funds brought forward at 1 April 2020 as previously reported Prior year adjustment (Note 35) Total funds brought forward at 1 April 2020 as restated Total comprehensive expenditure for the year Fund balances at 31 March 2021	Unrestricted funds 2021 £ 6,204,610 (245,930) 5,958,680 (485,985) 5,472,695	Restricted funds Total 2021 2021 £ £ 44,438 6,249,048 - (245,930)
		44,438 6,003,118 (2,448) (488,433) 41,990 5,514,685

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

AS AT 31 MARCH 2022

Notes Fixed assets Tangible assets 17 Investment properties 18 Investments 18 Current assets Stock 19 Debtors 20 Cash at bank and in hand Creditors: amounts falling due within one year 21 Net current assets/(liabilities) Total assets less current liabilities Creditors: amounts falling due after more than one year 22 Provisions for liabilities Provisions 23 Net assets Income funds Restricted funds25 Unrestricted funds 26	Group 2022 2021 (Restated) £ £ 7,064,317 5,713,313 1,390,000 1,329,833 13,385 13,416 8,467,702 7,056,562 15,427,812 12,690,150 343,091 108,449 351,861 622,622 16,122,764 13,421,221 (18,633,401) (1,703,390) (2,510,637) 11,717,831 5,957,065 18,774,393 - (13,170,848) (87,840) (88,860) 5,869,225 5,514,685 43,954 41,990 5,825,271 5,472,695 5,869,225 5,514,685	Charity 2022 £ 7,064,317 1,390,000 13,387 8,467,704 - 2,793,617 351,026 3,144,643 (4,291,010) (1,146,367) 7,321,337 - (87,840) 7,233,497 43,954 7,189,543 7,233,497	2021 (Restated) £ 5,713,313 1,329,833 13,418 7,056,564 - 4,210,609 601,667 4,812,276 (692,873) 4,119,403 11,175,967 (210,000) (88,860) 10,877,107 41,990 10,835,117 10,877,107

The charitable company's net deficit for the year was £3,643,610 (2021 restated: deficit of £188,307)

21 Jul 2023

The financial statements were approved by the Trustees on ______.

Fr Joseph Simionato

Fr. Jose Simionato FDP

Trustee

Company Registration No. 04249759

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

FOR THE YEAR ENDED 31 MARCH 2022

2022 Notes £ Cash flows from operating activities Cash absorbed by operations 32 Investing activities Purchase of tangible fixed assets (1,459,456) Additions to investment property - Proceeds on disposal of investments 31 Rental income 81,455 Net cash (used in)/provided by investing activities Financing activities Repayments of borrowing (6,967,238) Cash inflows from new borrowing 10,764,460 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	£ (2,690,013) (1,377,970) 3,797,222 (270,761) 622,622 351,861	2021 £ £ (8,399,000) (2,000) (53,122) - 74,431 19,309 - 8,429,213 8,429,213 49,522 573,100 622,622	2021 £ £ (8,399,000) (2,000) (53,122) - 74,431 19,309 - 8,429,213 8,429,213 49,522 573,100 622,622
			49,522 573,100
			622,622

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

FOR THE YEAR ENDED 31 MARCH 2022

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 investment properties. 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

Since the year end, both the parent charity and subsidiary have entered into refinancing arrangements as follows:

Subsidiary - The repayment date for the loans of £13.7m as at 31 March 2022 was extended from March 2023 to the end of July 2023; as at the date these accounts are signed, £9.8m remained outstanding. The directors of the subsidiary company remain confident of being able to refinance its loans with the current loan providers, which is reflected in the company's ongoing long term relationship with them, or finding alternative sources of finance. The loans are secured on properties with a potential value in excess of the loans.

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

FOR THE YEAR ENDED 31 MARCH 2022

1 Accounting policies (continued)

1.2 Going concern (continued)

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.

1.4 Income

Rent, services and fees for housing related support are recognised in the period to which they relate. Grants received under the Coronavirus Job Retention Scheme are recognised in the income statement as part of the operating income over the same period as the costs to which they relate. Grants are accounted for under the accrual method. Donations are recognised when the group is entitled to the income, the receipt is probable, and the amount can be reliably measured.

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.

Revenue from the property sales is recognised when exchange of contracts has taken place. The related cost of sales includes the direct selling costs along with an apportionment of the total construction costs based on the individual property selling price as a proportion of the total selling price of the whole development.

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.

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

FOR THE YEAR ENDED 31 MARCH 2022

1 Accounting policies (continued)

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 Not depreciated Freehold buildings 65 years straight line Fixtures, fittings, and equipment 10% straight line Motor vehicles 25% reducing balance

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 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.

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 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 Group 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 Group 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, considering 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.

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

FOR THE YEAR ENDED 31 MARCH 2022

1 Accounting policies (continued) 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. The company has signed an agreement to lease the land under its properties for 125 years to a third-party management company in return for an annual rental sum. The amount receivable is calculated by reference to the discounted value of the future rental income stream and recognised as a debtor based on the proportion of properties sold on the site during the year. 1.16 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 2022. 1.17 Taxation Current tax is recognised for income tax payable in respect of the taxable surplus for the current reporting period.

1.18 Interest payable Interest is capitalised on borrowings related to the development of qualifying assets, to the extent that it accrues in respect of the period of development if it represents interest on borrowings specifically financing the development after deduction of related grants in advance. 1.19 Investment in subsidiaries

Investments in subsidiaries are accounted for at cost less impairment in the individual financial statements.

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

FOR THE YEAR ENDED 31 MARCH 2022

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

The investment property is included at fair value in accordance with an external valuation carried out by a firm of Chartered Surveyors at 31 March 2022. This is based on an open market value basis by reference to market evidence of transaction prices for similar properties.

The accounts of the trading subsidiary include a debtor in respect of the discounted value of future rents receivable. The directors have determined the discount rate based on a yield of 3% from evidence of other ground rent sales provided by their valuer Gerald Eve LLP.

Critical judgement

At the year end, the charity was owed £5,696,614 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 subsidiary company following its completion in December 2021 and have impaired the recoverable amount of the loans by £2,850,000 to £2,846,614.

3 Donations and legacies

Unrestricted Restricted funds funds general 2022 2022 £ £ Donations and gifts 11,669 - Covid support grants - 109,462 CJRS income 2,778 - Legacies receivable 58,589 - 73,036 109,462	Total Unrestricted Restricted funds funds general 2022 2021 2021 £ £ £ 11,669 22,985 28,224 109,462 - 119,970 2,778 42,398 - 58,589 726 - 182,498 66,109 148,194	Total 2021 £ 51,209 119,970 42,398 726
		214,303

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

FOR THE YEAR ENDED 31 MARCH 2022

4 Rent receivable

	Unrestricted	Unrestricted
	funds	funds
	general	general
	2022	2021
	£	£
Rental income from investment property	81,119	74,427

5 Residential units owned and managed

	Number of	Number of
	units	Units
	2022	2021
	£	£
General Needs (Social)	51	52
Specialist Supported Living	3	3
Designated Specialist Supported Living	16	16
Care Homes Providing Personal Care (beds)	21	45

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

FOR THE YEAR ENDED 31 MARCH 2022

6 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 2022 *Social housing lettings* Rent Service charges *Trading income* Sale of properties *Other income* Other Housing income Government Grant - Furlough Day activities Donations and legacies Religious congregation Private rental income 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 surplus 401,930 (147,468) 254,462 83,509 (83,509) - 485,439 (230,977) 254,462 6,941,462 (5,478,827) 1,462,635 928,038 (2,148,594) (1,220,556) 2,778 (2,778) - - (4,700) (4,700) 179,719 (69,346) 110,373 50,726 (127,097) (76,371) 81,119 (41,208) 39,911 1,242,380 (2,393,723) (1,151,343) 8,669,281 (8,103,527) 565,754 Turnover Operating costs Operating deficit (Restated) (Restated) 383,057 (152,010) 231,047 76,409 (76,409) - 459,466 (228,419) 231,047 939,885 (1,714,897) (775,012) 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 (2,012,584) (719,484) 1,752,566 (2,241,003) (488,437)	Turnover Operating costs Operating surplus 401,930 (147,468) 254,462 83,509 (83,509) - 485,439 (230,977) 254,462 6,941,462 (5,478,827) 1,462,635 928,038 (2,148,594) (1,220,556) 2,778 (2,778) - - (4,700) (4,700) 179,719 (69,346) 110,373 50,726 (127,097) (76,371) 81,119 (41,208) 39,911 1,242,380 (2,393,723) (1,151,343) 8,669,281 (8,103,527) 565,754 Turnover Operating costs Operating deficit (Restated) (Restated) 383,057 (152,010) 231,047 76,409 (76,409) - 459,466 (228,419) 231,047 939,885 (1,714,897) (775,012) 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 (2,012,584) (719,484) 1,752,566 (2,241,003) (488,437)
		231,047 (775,012) - (58,860) 126,021 (63,110) 51,477
		(719,484)
		(488,437)

Rent void losses are not material and are netted off in the above figures for 2022 and 2021.

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

FOR THE YEAR ENDED 31 MARCH 2022

7 Raising funds

		Unrestricted	Unrestricted
		funds	funds
		general	general
		2022	2021
		£	£
Fundraising	and publicity
Fundraising	events	1,827	2,891
		1,827	2,891

8 Analysis of expenditure

Housing and care services 2022 Day activities 2022 Religious congregation 2022 Missions & pilgrimages 2022 £ £ £ £ Staff costs 1,486,518 - 23,084 - Depreciation and impairment 103,803 1,116 3,065 - Rates 56,197 - 5,341 - Insurance 51,615 560 4,045 - Light and heat 74,066 417 13,042 - Repairs, maintenance and equipment 198,786 2,092 15,719 - Postage, stationery and telephone 12,555 264 14,111 - Motor and travel 13,217 - 18,136 - Legal and professional 90,793 251 6,109 - Staff training and recruitment 9,016 - 133 - Food and provisions 36,980 - 7,678 - Other direct costs 134,027 - 16,634 67,519 2,267,573 4,700 127,097 67,519 Share of governance costs (see note 10) 155,984 - - - 2,423,557 4,700 127,097 67,519 Analysis by fund Unrestricted funds 2,345,177 4,700 127,097 38,401 Restricted funds 78,380 - - 29,118 2,423,557 4,700 127,097 67,519	Total 2022 £ 1,509,602 107,984 61,538 56,220 87,525 - 216,597 26,930 31,353 97,153 9,149 44,658 218,180 2,466,889 155,984 2,622,873 2,515,375 107,498 2,622,873	Total 2021 Restated £ 1,365,572 110,711 50,739 53,778 69,086 210,190 20,932 29,374 61,672 10,258 53,382 148,647
		2,184,341 53,771
		2,238,112
		2,087,470 150,642
		2,238,112

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

FOR THE YEAR ENDED 31 MARCH 2022

8 Analysis of expenditure (continued)

For the year ended 31 March 2021

Housing and care services Day activities Religious congregation (Restated) £ £ £ Staff costs 1,286,656 59,763 19,153 Depreciation and impairment 105,335 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 1,954,893 76,912 109,543 Share of governance costs (see note 10) 53,771 - - 2,008,664 76,912 109,543 Analysis by fund Unrestricted funds 1,888,694 76,912 109,543 Restricted funds 119,970 - - 2,008,664 76,912 109,543	Missions Total 2021 (Restated) £ £ - 1,365,572 - 110,711 - 50,739 - 53,778 - 69,086 - 210,190 - 20,932 - 29,374 - 61,672 - 10,258 - 53,382 42,993 148,647 42,993 2,184,341 - 53,771 42,993 2,238,112 12,321 2,087,470 30,672 150,642 42,993 2,238,112	Missions Total 2021 (Restated) £ £ - 1,365,572 - 110,711 - 50,739 - 53,778 - 69,086 - 210,190 - 20,932 - 29,374 - 61,672 - 10,258 - 53,382 42,993 148,647 42,993 2,184,341 - 53,771 42,993 2,238,112 12,321 2,087,470 30,672 150,642 42,993 2,238,112
		2,184,341 53,771
		2,238,112
		2,087,470 150,642
		2,238,112

9 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.

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

FOR THE YEAR ENDED 31 MARCH 2022

10 Auditors’ remuneration (governance costs)

Auditors’ remuneration (governance costs)
Audit fees Accountancy	2022 £ 156,679 25,000 181,679	2021 £ 20,500 33,271
		53,771

Payments to the auditors comprise £156,279 (2021: £20,500) for audit fees and £25,000 (2021: £33,271) for accountancy fees.

11 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 (2021: £nil).

12 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	2022 Number 44 4 12 60 2022 £ 1,371,318 99,178 39,106 1,509,602	2021 Number 47 4 9
		60
		2021 £ 1,236,893 87,395 41,284
		1,365,572

Included within wages and salaries are temporary staff of £25,124 (2021: £33,905), and key management remuneration amounting to £155,181 (2021: £178,027). There were no employees whose annual remuneration was £60,000 or more. Included in the above are termination costs of £193,450 (2021: £0). The subsidiary does not have employees, all employees are employed by the parent. Remuneration of the Chief Executive (who joined in February 2022) was £8,128 and their fulltime equivalent salary was £65,000. Pension contributions for the Chief Executive are made to the existing defined contribution scheme for staff at identical rates to other staff.

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

FOR THE YEAR ENDED 31 MARCH 2022

13	Interest payable
		Unrestricted	Unrestricted
		funds	funds
		2022	2021
		£	£
	Interest payable on Molesey Senior Loan	156,721	-
14	Net gains/(losses) on investments
		Unrestricted	Unrestricted
		funds	funds
		2022	2021
		£	£
	Revaluation of investment properties	60,167	-
		60,167	-
15	Surplus /(Deficit) for the year is stated after charging:	2022	2021
		£	£
	Operating leases	5,943	5,472
	Depreciation	107,749	110,711
16	Corporation tax	2022	2021
		£	£
	Current tax
	UK corporation on profits for the current period	114,996	-
	All taxation relates to the profits chargeable in the trading subsidiary.

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

FOR THE YEAR ENDED 31 MARCH 2022

17 Tangible fixed assets Group Cost At 1 April 2021 Additions Disposals At 31 March 2022 Depreciation and impairment At 1 April 2021 restated Depreciation charged in the year Eliminated in respect of disposals At 31 March 2022 Carrying amount At 31 March 2022 At 31 March 2021 restated Charity Cost At 1 April 2021 Additions Disposals At 31 March 2022 Depreciation and impairment At 1 April 2021 restated Depreciation charged in the year Eliminated in respect of disposals At 31 March 2022 Carrying amount At 31 March 2022 At 31 March 2021 restated Social Housing property Group and Charity (included within freehold buildings) Cost At 1 April 2021 Additions At 31 March 2022 Depreciation and impairment At 1 April 2021 restated Depreciation charged in the year At 31 March 2022 Carrying amount At 31 March 2022 At 31 March 2021 restated	Freehold land & Buildings £ 6,690,815 1,458,201 - 8,149,016 1,007,098 95,232 - 1,102,330 7,046,686 5,683,717 6,690,815 1,458,201 - 8,149,016 1,007,098 95,232 - 1,102,330 7,046,686 5,683,717 £ 4,976,946 428,953 5,405,899 494,017 83,167 577,184 4,828,715 4,485,929	Fixtures, fittings and equipment £ 860,796 450 - 861,246 855,088 6,158 - 861,246 - 5,708 860,796 450 - 861,246 855,088 6,158 - 861,246 - 5,708	Motor vehicles £ 95,897 805 (3,955) 92,747 72,009 6,359 (3,253) 75,115 17,631 23,888 95,897 805 (3,955) 92,747 72,009 6,359 (3,253) 75,115 17,631 23,888	Total £ 7,647,508 1,459.456 (3,955)
				9,103,009
				1,934,195 107,749 (3,253)
				2,038,691
				7,064,317
				5,713,313
				7,647,508 1,459.456 (3,955)
				9,103,009
				1,934,195 107,749 (3,253)
				2,038,691
				7,064,317
				5,713,313

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

FOR THE YEAR ENDED 31 MARCH 2022

18 Investments Investment property Group and charity Fair value At 1 April 2021 Valuation changes At 31 March 2022	2022 £ 1,329,833 60,167
	1,390,000

Investment property comprises Pipes Place, Shorne, Kent, DA12 3DP. The fair value of the investment property has been arrived at, by a valuation carried out on 28 January 2022 and rolled forward to the 31 March 2022 by Gerald Eve LLP Chartered Surveyors, who are not connected with the charity. The historical cost of the property is £375,440 (2021: £375,440).

Fixed asset investments Group Cost or valuation At 1 April 2021 Disposals At 31 March 2022	£ 13,416 (31)
	13,385

The Charity holds £1 of the share capital in each of Sons of Divine Providence Developments Limited and SDP Ventures Limited. The fixed asset listed investments held by the Charity are £13,387 (2021: £13,418). There were disposals in the year of £31.

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

FOR THE YEAR ENDED 31 MARCH 2022

19 Stock Opening stock of development property Transfer from fixed assets Cost of properties sold Development costs incurred Closing stock of development property	Group 2022 £ 12,690,150 - (5,416,269) 8,153,931 15,427,812	Charity 2021 2022 2021 £ £ £ - - - 3,701,008 - - - - - 8,989,142 - - 12,690,150 - -

During the year £3,555,425 (2021: £984,430) of interest costs directly attributable to stock of property were capitalised. The total capitalised interest at 31 March 2022 was £4,969,347 (2021: £1,413,922).

20 Debtors Amounts falling due within one year: Arrears of local authority and resident contributions VAT Recoverable Other debtors Finance Lease receivable Amounts owed by subsidiary undertakings Impairment of amounts owed by subsidiary Prepayments and accrued income	Group 2022 £ 39,050 57,136 45,882 186,846 - - 14,177 343,091	Charity 2021 2022 2021 £ £ £ 43,984 39,050 43,984 - - - 29,171 13,170 13,953 - - - - 5,577,220 4,117,378 - (2,850,000) - 35,294 14,177 35,294 108,449 2,793,617 4,210,609	Charity 2021 2022 2021 £ £ £ 43,984 39,050 43,984 - - - 29,171 13,170 13,953 - - - - 5,577,220 4,117,378 - (2,850,000) - 35,294 14,177 35,294 108,449 2,793,617 4,210,609
			4,210,609

The interest charged by the parent charity on the intercompany balance is 5% p.a. above the base rate of Barclays Bank. The parent charity has a fixed and floating charge over the assets of the company. The loan is repayable on demand.

Post year end, in February 2023, the trustees of the parent charity, because of the pandemic, agreed to forgive the interest which had been charged from 1 April 2020 to 31 December 2021 on the intercompany balance. Furthermore, the interest rate is also adjusted from 5% above base rate to 2% above base rate with effect from 1[st] January 2022. The interest forgiven is £563,660. The company’s debt to the Parent Charity ranks below debts to lenders as set out in a Deed of Priority dated 10[th] January 2020.

21 Creditors: amounts falling due within one year Group 2022 £ Bank loans (Note 22) 17,178,069 Other taxation and social security 53,365 Trade creditors 81,251 Other creditors 293,977 Accruals and deferred income 911,743 Tax payable 114,996 18,633,401	2021 £ 210,000 46,636 58,643 302,378 1,085,733 - 1,703,390	Charity 2022 £ 3,430,853 53,365 81,251 293,977 431,564 - 4,291,010	2021 £ 210,000 46,636 58,643 302,378 75,216 -
			692,873

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

FOR THE YEAR ENDED 31 MARCH 2022

22 Creditors: amounts falling due after one year Group 2022 Bank loans - As at 31 March 2022, the parent charity had two loans:	Group Charity 2021 2022 13,170,848 -	Charity 2021 210,000

1) Coronavirus Business Interruption loan with an outstanding amount of £280,000 (2021: £410,000) secured against assets of the Charity and bearing interest at 3.49% above the Bank of England Base Rate.

2) A loan from Molesey Senior Limited with an outstanding balance of £3,150,853 (2021:£nil) bearing interest of 0.85% per month. The borrowing is secured over freehold property of the Sons of Divine Providence. The loan was repayable in October 2022.

See note 34 for details of new loans entered into since the year end.

At 31 March 2022, the subsidiary company had two loans:

1) A junior loan from United Trust Bank with a balance outstanding at the year end of £3,188,554 bearing interest at 6.43% above base rate per annum. The borrowing is secured over the assets of the company and as at the year end was repayable on 24 March 2023.

2) A senior loan from United Trust Bank with a balance outstanding at the year end of £10,558,662 bearing interest at 6.65% above base rate per annum. The borrowing is secured over the assets of the company and as at the year end was repayable on 24 March 2023.

Since the year end the loan repayment date was extended to 31 July 2023 for both loans.

At 31 March 2021, the subsidiary company had two loans:

1) A loan from Hampton Wick Senior Limited (Flemyn) with an outstanding balance of £4,484,839 in the form of discounted loan notes bearing interest of 0.85% per month. The borrowing is secured over the assets of the subsidiary trading company. The loan is repayable in April 2022.

2) A loan from United Trust bank with a balance outstanding at the year end of £8,476,009 bearing interest at a minimum of 6.75% per annum. The borrowing is secured over the assets of the subsidiary trading company. The loan is repayable in April 2022 and there is a maximum facility of £11,692,000 available.

These loans were refinanced during the year ended 31 March 2022.

23	Provisions for liabilities	2022	2021
		£	£
	Rent overcharge provision	87,840	88,860

In 2020 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.

24 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 the Statement of Comprehensive Income in respect of defined contribution schemes was £39,106 (2021: £41,284).

THE SONS OF DIVINE PROVIDENCE (ORIONE CARE)

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 MARCH 2022

25 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 2020	resources	expended	1 April 2021	resources	expended	31 March 2022
	£	£	£	£	£	£	£
Bread of Life (Child Sponsorship)	26,091	28,224	(30,672)	23,643	31,082	(29,118)	25,607
Friends of Don Orione pilgrimages	18,347	-	-	18,347	-	-	18,347
Covid support grants	-	119,970	(119,970)	-	78,380	(78,380)	-
	44,438	148,194	(150,642)	41,990	109,462	(107,498)	43,954

Bread of Life supports poor children in the developing nations by providing food, water, clothing, medicine, education, and life skill training. The fund supports pilgrimages to either the Holy Land, Rome or the religious sites of Italy.

THE SONS OF DIVINE PROVIDENCE (ORIONE CARE)

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 MARCH 2022

26 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 2020
Expenditure
£
£
Fixed assets (net of loans secured)
4,571,395
(110,711)
Investment property fund
1,276,711
-
5,848,016
(110,711)
Charity
Fixed assets (net of loans secured)
5,820,608
(110,711)
Investment property fund
1,276,711
-
7,097,319
(110,711)

Transfers Revaluations,
gains and
Balance at
1 April 2021
Expenditure
Transfers
Balance at
31 March 2022
£
£
£
£
£
£
1,252,629
-
5,713,313
(107,749)
(1,692,100)
3,913,464
53,122
-
1,329,833
-
60,167
1,390,000
1,305,751
-
7,043,146
(107,749)
(1,631,933)
5,303,464
3,416
-
5,713,313
(107,749)
(1,692,100)
3,913,464
53,122
-
1,329,833
-
60,167
1,390,000
56,538
-
7,043,146
(107,749)
(1,631,933)
5,303,464

The Fixed asset fund represents the net book value of fixed assets held by the Group and Charity at the year-end net of any loan finance.

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

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

FOR THE YEAR ENDED 31 MARCH 2022

27 Analysis of net assets between funds

	Unrestricted	Designated	Restricted funds	Restricted funds	Total		Unrestricted	Designated	Restricted funds	Total
	funds	funds					funds	funds
	2022	2022		2022	2022		2021	2021	2021	2021
Group	£	£		£	£		£	£	£	£
Fund balances at 31
March 2022 are
represented by:
Tangible assets	-	7,064,317		-	7,064,317		-	5,713,313	-	5,713,313
Investment properties	-	1,390,000		-	1,390,000		-	1,329,833	-	1,329,833
Investments	13,385	-		-	13,385		13, 416	-	-	13,416
Current assets/(liabilities)	596,262	(3,150,853)		43,954	(2,510,637)		11,675,841	-	41,990	11,717,831
Long term liabilities	-		-	-		-	(13,170,848)	-	-	(13,170,848)
Provisions	(87,840)	-		-	(87,840)		(88,860)	-	-	(88,860)
	521,807	5,303,464		43,954	5,869,225		(1,570,451)	7,043,146	41,990	5,514,685
Charity
Fund balances at 31
March 2022 are
represented by:
Tangible assets	-	7,064,317		-	7,064,317		-	5,713,313	-	5,713,313
Investment properties	-	1,390,000		-	1,390,000		-	1,329,833	-	1,329,833
Investments	13,387	-		-	13,387		13,418	-	-	13,418
Current assets/(liabilities)	1,960,532	(3,150,853)		43,954	(1,146,367)		4,077,413	-	41,990	4,119,403
Long term liabilities	-		-	-		-	(210,000)	-	-	(210,000)
Provisions	(87,840)	-		-	(87,840)		(88,860)	-	-	(88,860)
	1,886,079	5,303,464		43,954	7,233,497		3,791,971	7,043,146	41,990	10,877,107

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

FOR THE YEAR ENDED 31 MARCH 2022

28 Operating lease commitments

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

Within one year Between two and five years Between two and five years	2022 2021 £ £ 6,718 5,472 6,292 20,659
	13,010 26,131

29 Capital commitments

The Sons of Divine Providence Developments Ltd (the Charity’s subsidiary trading company) has a contracted commitment to redevelop Number 29 Lower Teddington Road. The estimated amount cost will be £500,000 (2021: £500,000).

The Sons of Divine Providence (the Charity) has a commitment to redevelop Number 27 Lower Teddington Road. The estimated cost will be £1,412,500. 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 a building contract for this work.

The Charity has also agreed the head of terms for the redevelopment of Molesey Venture, Orchard, East Molesey subject to the receipt of planning permission.

30 Related party transactions

During 2020 the Charity received a loan of Euro 236,868 (£208,718) from Orione Care Ireland based in the Republic of Ireland. Fr. John Perrotta (deceased) 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.

Transactions with subsidiaries are described in note 31.

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

FOR THE YEAR ENDED 31 MARCH 2022

31 Subsidiaries

Details of the charity's subsidiaries at 31 March 2022 are as follows:

Name of undertaking	Country of	Nature of business	Class of	% Held
	incorporation		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 £47,400 (2021: £35,654) 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 £19,394 (2021: £(18,497)). Sons of Divine Providence Developments Limited repaid the Charity £380,000 (2021; £80,000) during the year and interest totalling £199,725 (2021: £197,559) 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 Registered Office of both subsidiaries is 13 Lower Teddington Road, Hampton Wick, Kingston Upon Thames, Surrey, United Kingdom, KT1 4EU

The net liabilities of The Sons of Divine Providence Developments Limited at the end of the reporting period were £249,720 (2021: net liabilities £44,385). During the year, The Sons of Divine Providence Developments Limited made an operating loss of £205,335 (2021: deficit £13,934), incorporating turnover of £6,941,462 and cost of sales and administrative expenses of £7,006,013 (2021: £13,934). The net assets of SDP Ventures Limited at the end of the reporting period are £1 (2021: £nil) and made an operating loss of £nil (2021: £nil) with no turnover and expenditure incurred during the year. The company is currently dormant.

Sons of Divine Providence Developments Limited Current assets Creditors: amounts falling due within one year Creditors: amounts falling due after one year Net liabilities	2022 2021 19,670,126 18,044,358 (19,919,846) (5,127,895) - (12,960,848)
	(249,720) (44,385)

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

FOR THE YEAR ENDED 31 MARCH 2022

32	Cash generated from operations		2022	2021
				(Restated)
			£	£
	Surplus/(Deficit) for the year		354,540	(488,433)
	Adjustments for:
	Investment income - Rental income and interest receivable		(81,455)	(74,431)
	Loss on disposal of tangible fixed assets		702	-
	Current taxation		114,996
	Fair value gains and losses on investment properties		-	-
	Fair value gains and losses on investments		(60,167)	-
	Depreciation and impairment of tangible fixed assets		107,749	110,711
	Movements in working capital:
	Increase in stock		(2,737,662)	(8,989,144)
	(Increase)/Decrease in debtors		(234,642)	33,318
	(Decrease)/ Increase in creditors		(153,054)	1,071,462
	(Decrease)/Increase in provisions		(1,020)	(62,483)
	Cash (absorbed by) operations		(2,690,013)	(8,399,000)
33	Analysis of changes in net (debt)/funds
		At 1 April 2021	Cash flows	At 31 March 2022
		£	£	£
	Cash at bank and in hand	622,622	(270,761)	351,861
	Loans falling due within one year	210,000	16,968,069	17,178,069
	Loans falling due after more than one year	13,170,848	(13,170,848)	-
		14,003,470	3,526,460	17,529,930

34 Events after the balance sheet date

Cardinal Heenan House, the care home in Lancashire was closed in May 2022. Closure of Sundial House, the care home in East Molesey was announced in February 2023.

Subsequent to the year end, the charity has agreed an interest waiver and change in arrangements with respect to the intercompany loan to the subsidiary with effect from 1 April 2020 to 31 December 2021 (see note 20).

Subsequent to the year end, the charity has refinanced its loan with Molesey Senior Limited to extend the repayment date from 5 October 2022, firstly to 5 April 2023 and then to 5 July 2023 and then again to 5 August 2023 (see note 22).

Subsequent to the year end, the charity has entered into a loan with Charity Bank and has borrowed £0.9m secured on the charity’s investment property repayable by April 2025.

Subsequent to the year end, the settlement date of the charity’s Coronavirus Business Interruption Loan was extended and this is now to be paid in equal monthly instalments of £70k from September 2023.

Since the year end the charity has entered into a new loan with United Trust Bank for £2.1m with £1.6m drawn down and a balance outstanding at the date these accounts are signed of £1.5m; the repayment date is February 2024.

Subsequent to the year end the trading subsidiary renegotiated its loans with United Trust Bank that were due to be repaid at 24 March 2023 to 31 July 2023 (see note 22).

Finally, post year end, an agreement was signed with Mulberry Court HW Management Limited to lease the land upon which Mulberry Court and 29 Lower Teddington Road are sited for a sum of £30,000 per annum for 125 years. The discounted value of the future ground rents receivable was £1,000,000 and a proportion is recognised based on properties sold within Mulberry Court as at 31 March 2022.

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

FOR THE YEAR ENDED 31 MARCH 2022

35 Prior period adjustment

The financial statements include a prior year adjustment to correct errors relating to the depreciation of tangible assets. In previous years, the charity did not depreciate buildings as the charity has an annual maintenance schedule to maintain the residual value of the freehold land & buildings; this is not considered to comply with FRS102.

The net effect is to reduce the overall brought forward reserves by £334,563 (2019: £245,930) from £5,849,248 to £5,514,685 at 1 April 2021 and from £6,249,048 to £6,003,118 at 1 April 2020. Tangible assets for the year ended 31 March 2021 has been restated from £6,047,876 to £5,713,313, a decrease of £334,563. Total expenditure for the year ended 31 March 2021 has therefore been restated from £2,152,370 to £2,241,003, an increase of £88,633.