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2020-12-31-accounts

Charity Registration No. 1119423

Company Registration No. 06211791 (England and Wales)

THE POLISH CATHOLIC MISSION

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

THE POLISH CATHOLIC MISSION

CONTENTS

Page
Trustees report 1 - 8
Independent auditor's report 9 - 11
Statement of financial activities 12
Balance sheet 13
Statement of cash flows 14
Notes to the financial statements 15 - 29

THE POLISH CATHOLIC MISSION

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees Rev R Jaroslawski
Mr Z Handzel
Dr N Langer
Dr M Marzanski (Appointed 15 September 2020)
Rev R Szczodrowski
Rev K Tyliszczak
Rt Rev S Wylezek
Charity number 1119423
Company number 06211791
Registered office 2 Devonia Road
Islington
London
N1 8JJ
Auditor Shaw Gibbs (Audit) Limited
264 Banbury Road
Oxford
OX2 7DY
Bankers Lloyds Bank PLC- London
19-20 Upper Strret
Islington
London
N1 OPJ
Solicitors Stone King LLP
28 Ely Place
London
ED1N 6TD

THE POLISH CATHOLIC MISSION

TRUSTEES REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 DECEMBER 2020

The trustees, who are also the directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 December 2020.

T he financial statements have been prepared in accordance with the charity's governing document, the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)".

OBJECTIVES AND ACTIVITIES

Objectives and aims

Objectives of the Polish Catholic Mission as set out in the Memorandum of Association and they include:

The advancement of the Roman Catholic religion for the Polish Community; The advancement of religious education for the Polish Community; The relief of poverty for the Polish Community; Other charitable purposes which the Trustees judge fit for the benefit of the Polish Community.

Explanation of the Charity Aims

The primary objective of the charity is the advancement for the Polish Community of the Roman Catholic religion. In pursuit of this aim the Charity, through its various ministries, strives to meet the needs of our times as manifested in England and Wales wherever possible and as far as our resources allow.

Explanation of the Charity main objective for the year

The main objective of the charity for the year is to continue to practice and further advance the Roman Catholic religion within the Polish community. In order to support this objective at a local level, the Head Office provides a variety of support measures, including the support with administration and finances. In 2020 the Polish Catholic Mission continued to concentrate on supporting the Local Polish Catholic Missions in a continuing and effective implementation of the financial system suitably designed to the financial activities of the Charity.

Explanation of the Charity Strategies for achieving its stated objective

The Charity's software for the financial control of the Local Polish Catholic Missions, which was introduced in 2015 in all of the Local Polish Catholic Missions, proves efficient. A secure implementation of the program allows the quarterly consolidations, as well as the reporting which, by the decision of the trustees, became internally required by the Charity and is provided by the Treasurer during the Board Meetings.

The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.

Significant activities

Financial

Financial Committee is responsible for operations of all financial matters of the Polish Catholic Mission. The Finance Director produces the accounts to include the quarterly Financial Reports, Head Office Payroll, maintains the internal control of the Deposited Funds and the Internal Loans, HMRC liabilities, funding from the Ministry of Justice, the dual authorisation of payments, production of the annual integration and reconciliation of the consolidated data of the Charity.

THE POLISH CATHOLIC MISSION

TRUSTEES REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

Volunteer Contribution

The number of volunteers in the Local Polish Catholic Missions remains collectively estimated as 1,300. On average, they provide at least 3 hours of volunteer time per week, which totals to the volunteers offering 202,800 hours per year. In addition, there are volunteer Pastoral Councils and numerous other volunteers for particular events. The Polish Catholic Mission is exceptionally fortunate in that the volunteers see their contribution as an integral part of their individual Catholic vocation. Volunteers, together with the Administrative and Pastoral Councils in the Local Polish Catholic Mission, support the Priests and assist them in numerous ad hoc events organised by the Polish Catholic Mission.

In all of the activities undertaken by the Polish Catholic Mission, the Trustees are immensely grateful for the help received from the volunteers without whose assistance the Charity would not be able to carry out its work.

Fundraising

The charity raises funds directly without the use of professional fundraisers and is not a member of any regulatory scheme. The charity monitors fundraising activities by observing quarterly financial returns received from parishes.

Policy Review

The Trustees considered their obligations under Safeguarding and Child Protection and Reporting Serious Incidents. Significant progress has been made with the Investment Strategy with the recommendations made in June 2016 and their implementation taking place in August 2017.

Public Benefit

Statement of Public Benefit: The Polish Catholic Mission exists to serve the spiritual needs of persons professing the Roman Catholic religion who were born or have lived in Poland, as well as their spouses, children, or remoter issue and other persons who collectively belong to the Polish Community in England and Wales.

Wherever possible the Charity collaborates with other Christian bodies. The Charity's facilities such as churches, church halls and meeting rooms are available to the public.

In shaping our objectives for the year and planning our activities, the trustees have considered the Charity Commission's guidance on public benefit, including guidance 'public benefit: running a charity' (PB2).

THE POLISH CATHOLIC MISSION

TRUSTEES REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

ACHIEVEMENTS AND PERFORMANCE

Charitable Activities

Outreach work

The Polish Catholic Mission aims to support the religious and other charitable works carried out by the members of the Polish Community. The ministry of the Polish Priests benefits numerous members of the general public, falling into the following main areas:

Religious education; Social and pastoral work; Enhancement of Anglo-Polish relations in the communities.

The activities take place in 92 Local Polish Catholic Missions and 221 places where Mass in Polish is held. The number of priests ministering in the Polish Catholic Mission in 2020 was 102.

Many congregations respond to the requests to open their church buildings for special services for groups of people who wish to come to together in prayer, outside the scope of the established programme. Notably, the religious gatherings complementing work at the Local Polish Catholic Mission's level included the annual Pentecost and Corpus Christi celebrations at Laxton Hall, as well as the annual Polish Community pilgrimages to the Marian Shrines at Holywell in Flintshire and Walsingham in Norfolk.

The annual pilgrimage to Aylesford is organised jointly by the Polish Catholic Mission and the Institute for Polish Catholic Action in Great Britain (IPAK). The central aim of the Institute's work is the promotion and protection of the National Board of Catholic Women, IPAK enjoys and established presence in the English Catholic Community; the Polish Catholic Mission contributes regularly to conferences and seminars organised by IPAK.

Regular Mass attendance and the reading of the scripture is encouraged to deepen awareness of the Christian Faith and to enrich our understanding of the prime purpose of God's creative and redeeming work on earth, to which all are called to love one's neighbour as oneself. Learning how this was done in the past and building on that for the future, ensures both the continuity as well as the adaptability for today and tomorrow. Requests for Mass in the Polish language are regularly received from new areas in England and Wales.

Religious education is enhanced by the distribution to the majority of Local Polish Catholic Missions of a Polish weekly newspaper, Gosc Niedzielny, as well as Maly Gosc Niedzielny for children.

Special collections are organised throughout the year in all Local Polish Catholic Missions in aid of various needs, for example the Holy Land, Pontifical Mission and other purposes.

The Trustees regularly communicate with the Local Polish Catholic Missions and the Priests in Charge by post, through email, phone and site visits.

The Trustees wish to record their recognition of the commitment of the Priests, Local Polish Catholic Mission Administrative Councils and the Polish Catholic Mission's Staff. Their dedication, professionalism and positive approach are greatly appreciated in the furtherance of the aims of the Charity.

Asset Management: The Trustees continue to receive regular reports and updates from the Local Polish Catholic Missions who wish to spend over £10,000, typically on the refurbishment of church and non-church buildings and halls. The priests are obliged to seek permission from the Trustees, who are thereby kept informed. The Polish Catholic Mission owns 29 churches and 13 chapels.

Polish Catholic Mission Archives

The process of digitising the archives of the Polish Catholic Mission have continued throughout the year.

THE POLISH CATHOLIC MISSION

TRUSTEES REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

Charitable activities

Details of performance achieved against objectives

Quarterly financial reporting: There is an electronic quarterly reporting system in place which allows for maintenance and control a regular and transparent financial overview of the Charity.

Charitable activities are in continuation with previous years' activities.

FINANCIAL REVIEW

Financial position

A financial summary of the year's results can be found in the Accounts section.

Roman Catholic Church operates mainly in donations received on the plate, gift aid and small gift aid donation scheme. The Charity tries to convince its priests to try to reach to the parishioners and ask for the support for up keeping of the Parish.

During the Covid-19 pandemic, as a result of the closure of the churches which the Charity rent from English Catholic Dioceses , the usual plate offering dropped significantly. In some parishes , even two or three churches had to be closed and the Parish Priest celebrated masses at their private homes. Pleas were made for electronic donations straight to the parish accounts which worked in only some parishes. Hence, the income during the year was much smaller than the Charity expected.

The Charity also cut two places in the main office which gave them some flexibility in financing and achieved

the main target in the Charity's budget.

The Charity had strong cash levels of £1,823,657 and reserve levels of £18,810,877 as at 31 December 2020 and overall it is still in a good position.

Reserves Policy

It is the policy of the Charity that unrestricted funds which have not been designated for a specific use are to be maintained at a level equivalent to approximately 6-12 months' expenditure. The Trustees consider that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the Charity's current activities while consideration is given to ways in which additional funds may be raised.

The Trustees have approved the Reserves Policy which is reviewed annually when the financial statements are considered for approval.

Investment policy and objectives

The Trustees have reviewed the Charity's funds held as investments and considered new investment opportunities. The objectives are:

I. To ensure a creation of an investment fund which is sufficient for the charity to fulfil its objectives as stated on page 1 and outlined in the Articles of Association;

II. To maintain, and, if possible, through capital growth, enhance the value of the invested funds while they are retained, giving due and proper consideration to future potential needs.

III. To generate an investment income for the furtherance of the Charity's aims.

PLANS FOR FUTURE PERIODS

The Trustees plan to continue to support all the activities of the Polish Catholic Mission and do not anticipate any significant change in the coming year. It is the intention of the Trustees to continue to meet the aforementioned objectives.

THE POLISH CATHOLIC MISSION

TRUSTEES REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

STRUCTURE, GOVERNANCE AND MANAGEMENT

The Polish Catholic Mission was established in the United Kingdom in 1894 to serve the pastoral needs of the Polish speaking people who were settled temporarily or permanently in England and Wales. In 1894 there had already been Polish priests ministering to Polish émigrés for about 50 years. The years leading up to the Second World War saw many more Poles establishing cultural and business contracts with the United Kingdom and the need for Polish speaking priests grew and was recognised by the Catholic Bishops of England and Wales.

In 1939, with the outbreak of the war, Poland became the United Kingdom's ally and tens of thousands of Poles found their ways to these shores to fight shoulder to shoulder with British and Allied soldiers, sailors and airmen. Unfortunately, victory in Europe in 1945 did not restore Poland's independence and over 250,000 Poles associated with the Polish Forces of the allied Army and their families remained in the United Kingdom, establishing Polish communities in many towns throughout the country.

In 1948, the Catholic Bishops of England and Wales reached agreement with the Polish Primate and appointed his nominee as Vicar Delegate with a brief to take care of the Polish speaking Roman Catholics in England and Wales. In 1952 the Polish Benevolent Fund (Registration No. 213673) was created under English Charity Law which owned assets of the Polish Catholic communities and which was administered by a Board of Trustees nominated by the Vicar Delegate.

With the passing into law of the Charities acts 1960, 1993, 2006, a modern legal instrument was needed to replace the Trust Deed of the Polish Benevolent Fund. The Polish Benevolent Fund ceased its activities on 31 December 2007 transferring all its assets and liabilities to the new charity, the Polish Catholic Mission, on the 1st January 2008.

On the 8th May 2017 the Catholic Bishops' Conference of England and Wales approved the new Structures and Procedures of the role of the National Coordinator/Vicar Delegate of the Polish Catholic Mission.

Governing Document

The Polish Catholic Mission is a governed by its Memorandum and Articles of Association dated on the 22nd February 2007.

Charity Constitution

The Polish Catholic Mission is a Company Limited by Guarantee no. 06211791 registered on 01 January 2008, registered charity number 1119423. The area of benefit is England and Wales. The names of the trustees who served in 2020 are listed below:

Rev R Jaroslawski Mr Z Handzel Dr N Langer Dr M Marzanski (Appointed 15 September 2020) Rev R Szczodrowski Rev K Tyliszczak Rt Rev S Wylezek Mrs M Rejman (Resigned 11 September 2020)

THE POLISH CATHOLIC MISSION

TRUSTEES REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

Recruitment of Trustees

Trustees are recruited from senior clergy and suitably qualified and experienced lay faithful.

The Rector, also known as the Vicar Delegate of the Polish Catholic Mission, is presented by the Bishops' Conference of Poland and appointed by the Cardinal Archbishop of Westminster on behalf of the Bishops Conference of England and Wales and in accordance with the Articles of Association 3.3, he alone appoints and dismisses the Trustees of the Charity.

Organisational Structure

The Trustees are ultimately responsible for the policies, activities and assets of the charity. In the year 2020, in fulfilment of their responsibilities, the trustees held regular Trustee meetings and numerous ad hoc meetings, and when appropriate, took professional advice from property and employment consultants, solicitors and auditors, to assist them in carrying out their duties.

The Rector, Chairman and Chancellor are responsible for the day to day management of the charity and property matters. The Financial Director is responsible for producing and interpreting financial reports, maintaining financial control, and management of the finances. Together with the Finance Committee, the Financial Director is responsible for the financial operations. The Financial Director is responsible for the production of the Statutory Financial Statements of the Polish Catholic Mission in conjunction with the auditors.

The Rector is responsible for the pastoral care of the Charity and is supported by the Council of Deans. The Polish Catholic Mission is divided into 7 Deaneries and 91 Local Polish Catholic Missions serving 219 places where Mass in Polish is celebrated. The Deans, Priests in Charge and other priests ministering in the Local Polish Catholic Missions are appointed by the Rector. The Priests in Charge invite members of the congregation to join the Administrative Council of the Local Polish Catholic Mission. Under the Terms of Reference, the Administrative Councils are appointed for a fixed period of time by the Rector and the Trustees of the Polish Catholic Mission. All the priests ministering in the Polish Catholic Mission meet regularly within their deaneries, as well as annually in September at Priests' Retreat.

Induction and Training of New Trustees

New trustees are introduced to their role and responsibilities by the Rector. They are issued with the relevant Charity Commission literature together with the copies of the trust deed and the latest financial information. The Treasurer prepares, presents and explains the Financial Reports of the Polish Catholic Mission during the regular meetings of the Board, as well as at the end of the Financial Year.

Relationship with related parties

The Polish Catholic Mission maintains regular contact with other Polish well established, as well as with new charities and organisations, in administering its pastoral care to the Polish Community. In particular, the Priests in Charge of the Local Polish Catholic Missions support a large number of Polish Saturday Schools providing pastoral care and religious education. The priests provide pastoral care to veteran and youth organisations, and a variety of other groups of the Catholic faith at the heart of their organisations. The Polish Catholic Mission supports the work of the Institute for Polish Catholic Action (IPAK) running joint seminars, conferences and pilgrimages. The Polish Catholic Mission works closely with the Catholic Church in England and Wales. This is evident in some shared ministries and the shared use of churches, as well as presbyteries. Cooperation with the Polish Embassy and Consulate is particularly important to the Polish Catholic Mission's social work amongst the Poles in England and Wales and joint events are held throughout the year.

THE POLISH CATHOLIC MISSION

TRUSTEES REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

Risk Management

The Charity has considered risk management in a number of key areas, identifying the potential risk, possible impact and action required to mitigate such risks:

Human Resources/Personnel

This area of consideration includes reputational risks to The Charity, employment and health and safety issues, sufficient numbers of priests, skilled trustees, care of the elderly and safeguarding. The Charity has considered various actions to mitigate risks arising in these areas including: greater involvement of the laity; encouragement of vocations; trustees' training and access to Charity Commission guidelines; compliance with regulations; staff vetting procedures; following government legislation and Church guidelines; ensuring that priests who recently arrived from Poland are supported in their work by more experienced priests before taking on positions of greater responsibility.

Safeguarding

The Polish Catholic Mission has a dedicated Safeguarding representative supporting the Polish priests. The Local Polish Catholic Missions have Safeguarding Representatives. All priests ministering in the Polish Catholic Mission are required to follow the Safeguarding Policy of the Diocese in England and Wales within which they serve. Priests and lay Safeguarding representatives attend annual Diocesan safeguarding training. Safeguarding training is also provided at Deanery meetings.

Property

PCM has considered potential risks arising from neglect and insecurity of property, including loss of records and damage to property and equipment. Such risks can be mitigated by regular property assessments, updated inventories, servicing of alarms and security lighting, safe storage and back up of discs, adequate insurance cover.

Finance

Financial risks are considered under the following sub-headings: security of assets, reserve policy, investment policy, fraud or error, budgetary control, taxation, compliance with legal requirements. Steps to mitigate the risks arising in these areas include: professional investment advice, performance monitoring and diversification of funds, financial control, authorisation limits, security of assets, PAYE compliance, VAT review of legislation, compliance monitoring on the part of auditors.

Remuneration

No Director received remuneration in relation to the role of a director during the year. The Rector and Priests of the Polish Catholic Mission, in their capacity as such, receive a fixed payment and retain Mass offerings, stole fees and Christmas and Easter collections, unless they choose not to do so. They also receive benefits such as accommodation and living expenses from the Polish Catholic Mission. A number of the Clergy and one of the Lay Members of Staff of the Polish Catholic Mission belong to the the Body of the Trustees. The clergy Trustees are housed and remunerated by the Polish Catholic Mission while all of the trustees are reimbursed with the expenses for carrying out duties as trustees. However, no Trustee received any remuneration from the Charity for acting as a Trustee during the year. No Trustee had any beneficial interest in any contract with the Charity.

THE POLISH CATHOLIC MISSION

TRUSTEES REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

Statement of Trustees responsibilities

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

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

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

The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charity 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 charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Disclosure of information to auditor

Each of the trustees has confirmed that there is no information of which they are aware which is relevant to the audit, but of which the auditor is unaware. They have further confirmed that they have taken appropriate steps to identify such relevant information and to establish that the auditor is aware of such information.

Approved by order of the board of trustees on ............................................. and signed on its behalf by:

..............................

Rt Rev S Wylezek

Dated: .........................

THE POLISH CATHOLIC MISSION

INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF THE POLISH CATHOLIC MISSION

Qualified opinion

We have audited the financial statements of The Polish Catholic Mission (the ‘charity’) for the year ended 31 December 2020 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and the notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice) .

In our opinion, except for the possible effects of the matter described in the Basis for Qualified Opinion section of our report, the financial statements:

Basis for qualified opinion

The comparative accounts were qualified by the previous auditors on the basis that they were unable to visit various local missions (branches) during the Covid-19 pandemic, thus they were unable to determine whether any adjustment is required to the branch donations recorded as income during the comparative year and included in the Statement of Financial Activities at £3,696,040. Consequently, it was not possible for us to be fully satisfied with the comparative income and reserve figures.

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 charity 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 qualified opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the Trustees use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

THE POLISH CATHOLIC MISSION

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF THE POLISH CATHOLIC MISSION

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.

As described in the basis for qualified opinion section of our report, we were unable to fully satisfy ourselves that comparative income from branches is completely recorded in the financial statements. We have concluded that where the other information refers to the accounts or the financial information contained therein, it may be materially misstated for the same reason.

Matters on which we are required to report by exception

Except for the matter described in the basis for qualified opinion section of our report, w e have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the s tatement of Trustees r esponsibilities, 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 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

We have been appointed as auditor under section 145 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

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.

THE POLISH CATHOLIC MISSION

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF THE POLISH CATHOLIC MISSION

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 .

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: http s :// 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 charity’s trustees, as a body, in accordance with part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Samantha Daniels (Senior Statutory Auditor)
for and on behalf of Shaw Gibbs (Audit) Limited .........................
Chartered Certified Accountants
Statutory Auditor 264 Banbury Road
Oxford
OX2 7DY

Shaw Gibbs (Audit) Limited is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under of section 1212 of the Companies Act 2006.

THE POLISH CATHOLIC MISSION

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2020

Unrestricted
funds
2020
Notes
£
Income and endowments from:
Donations and legacies
3
3,504,769
Charitable activities
4
708,002
Investment income
5
519,547
Other income
6
142,509
Total income
4,874,827
Expenditure on:
Charitable activities
Pastoral work
7
503,855
Church related
activities
7
3,160,051
Outreach and events
7
100,458
Special projects and
giving
7
292,103
Total charitable expenditure
4,056,467
Net gains/(losses) on
investments
12
(75,026)
Net incoming/
(outgoing) resources
before transfers
743,334
Gross transfers
between funds
202,369
Net income/(expenditure)
for the year/
Net movement in funds
945,703
Fund balances at 1
January 2020
17,357,495
Fund balances at 31
December 2020
18,303,198		 Restricted
funds
2020
£
4,000
13,847
-
-
17,847
-
-
-
87,525
87,525
-
(69,678)
(202,369)
(272,047)
779,726
507,679		 TotalUnrestricted
funds
2020
2019
£
£
3,508,769
5,378,158
721,849
673,534
519,547
582,995
142,509
88,004
4,892,674
6,722,691
503,855
509,276
3,160,051
3,968,189
100,458
282,644
379,628
282,611
4,143,992
5,042,720
(75,026)
281,624
673,656
1,961,595
-
-
673,656
1,961,595
18,137,221 15,395,900
18,810,877 17,357,495		 Restricted
funds
2019
£
264,084
-
16,823
-
280,907
-
-
-
352,345
352,345
-
(71,438)
-
(71,438)
851,164
779,726		 Total
2019
£
5,642,242
673,534
599,818
88,004
7,003,598
509,276
3,968,189
282,644
634,956
5,395,065
281,624
1,890,157
-
1,890,157
16,247,064
18,137,221
Donations and legacies
3
Charitable activities
4
Investment income
5
Other income
6
Total income
Expenditure on:
Charitable activities
Pastoral work
7
Church related
activities
7
Outreach and events
7
Special projects and
giving
7
Total charitable expenditure
Net gains/(losses) on
investments
12
Net incoming/
(outgoing) resources
before transfers
Gross transfers
between funds
Net income/(expenditure)
for the year/
Net movement in funds
Fund balances at 1
January 2020
Fund balances at 31
December 2020

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

All income and expenditure derive from continuing activities.

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.

THE POLISH CATHOLIC MISSION

BALANCE SHEET

AS AT 31 DECEMBER 2020

Notes
Fixed assets
Tangible assets
13
Social investments
15
Investment properties
14
Current assets
Debtors
16
Investments
17
Cash at bank and in hand
Creditors: amounts falling due within
one year
18
Net current assets
Total assets less current liabilities
Creditors: amounts falling due after
more than one year
19
Net assets
Income funds
Restricted funds
20
Unrestricted funds
Designated funds
21
General unrestricted funds		 2020
£
£
12,667,384
1,124,353
729,334
14,521,071
132,022
2,561,937
1,823,657
4,517,616
(20,515)
4,497,101
19,018,172
(207,295)
18,810,877
507,679
13,301,269
5,001,929
18,303,198
18,810,877		 2019
£
£
11,713,368
470,000
729,334
12,912,702
145,172
3,325,594
2,083,222
5,553,988
(96,927)
5,457,061
18,369,763
(232,542)
18,137,221
779,726
12,605,561
4,751,934
17,357,495
18,137,221

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

The financial statements were approved by the Trustees on .........................

..............................

Rt Rev S Wylezek Trustee

Company Registration No. 06211791

THE POLISH CATHOLIC MISSION

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2020

2020 2019
Notes £ £ £
£
Cash flows from operating activities
Cash generated from operations 26 535,866 1,303,739
Investing activities
Purchase of tangible fixed assets (1,413,416) (1,277,998)
Proceeds on disposal of tangible fixed
assets 448,450 -
Net additions to social investments (654,353) -
Purchase of investment properties - (648,334)
Proceeds on disposal of current asset
investments 688,631 300,000
Investment income received 135,257 137,436
Net cash used in investing activities (795,431) (1,488,896)
Net cash used in financing activities - -
Net decrease in cash and cash equivalents (259,565) (185,157)
Cash and cash equivalents at beginning of year 2,083,222 2,268,379
Cash and cash equivalents at end of year 1,823,657 2,083,222

THE POLISH CATHOLIC MISSION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

1 Accounting policies

Charity information

The Polish Catholic Mission is a charitable company limited by guarantee incorporated in England and Wales. The registered office is 2 Devonia Road, Islington, London, N1 8JJ.

The members of the company are the Trustees named on the Legal and Administrative Information page. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the charity.

1.1 Accounting convention

The financial statements have been prepared in accordance with the charity's governing document, the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)". The charity 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 a mounts in these financial statements are rounded to the nearest £.

Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy. The principal accounting policies adopted are set out below.

1.2 Going concern

At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Although the income during the year ending 31 December 2020 was impacted by the Covid-19 pandemic, the charity is still in a good position with its strong cash and reserves levels. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3 Charitable funds

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

Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

1.4 Income

Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

The recognition of income from legacies is dependent on establishing entitlement, the probability of receipt and the ability to estimate with sufficient accuracy the amount receivable. Evidence of entitlement to a legacy exists when the charitable company has sufficient evidence that a gift has been left to them (through knowledge of the existence of a valid will and the death of the benefactor) and the executor is satisfied that the property in question will not be required to satisfy claims in the estate. Receipt of a legacy must be recognised when it is probable that it will be received and the fair value of the amount receivable, which will generally be the expected cash amount to be distributed to the charitable company, can be reliably measured.

All income of offerings, donations and gifts, as well as income from social clubs and other income are mainly from the Local Polish Catholic Missions (LPCMs) and as such are recognised on a receivable basis. Investment income is also treated on a receivable basis. Gift aid refund income is recognised on receipts basis until the charity's internal cut off deadline date each year.

THE POLISH CATHOLIC MISSION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

1 Accounting policies

(Continued)

Incoming resources from grants, if related to performance and specific deliverable, are accounted for in line with the progression of gaining the right to consideration.

1.5 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably.

Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between these activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use.

Expenditure on charitable activities is incurred on directly undertaking the activities which further the charitable company’s objectives, as well as any associated support costs.

Grants payable are charged in the year when the offer is made except in those cases where the offer is conditional, such grants being recognised as expenditure when the conditions attaching are fulfilled. Grants offered subject to conditions which have not been met at the year end are noted as a commitment, but not accrued as expenditure.

All expenditure is inclusive of irrecoverable VAT.

1.6 Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost.

LPCM repairs & renovations projects costing £10k or more that are approved by the trustees are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably.

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:

Leasehold land and buildings Over the life of the lease Fixtures and fittings 10% straight line

No depreciation charge is made against the freehold property as it is considered that the residual value is at least as great as the carrying value and not significantly different to cost, and any depreciation charge would be immaterial.

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in net income/(expenditure) for the year.

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.

THE POLISH CATHOLIC MISSION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

1 Accounting policies

(Continued)

1.8 Investments

Listed investments are initially measured a t transaction price and subsequently measured at the market value at the reporting date, with changes in the market value being recognised in the statement of financial activities.

Social investments consist of concessionary loans and are initially recognised and measured at the amount paid, with the carrying amount adjusted in subsequent years to reflect repayments and any accrued interest and adjusted if necessary for any impairment.

1.9 Cash and cash equivalents

Cash and cash equivalents include cash in hand and short-term liquid investments with original maturities of three months or less .

1.10 Financial instruments

The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities

Basic financial liabilities are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future p aymen ts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.

THE POLISH CATHOLIC MISSION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

1 Accounting policies

(Continued)

1.11 Fund accounting

General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the charitable company and which have not been designated for other purposes.

Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charitable company for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

Investment income, gains and losses are allocated to the appropriate fund.

2 Critical accounting estimates and judgements

In the application of the charity’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 ongoing 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.

Accruals

The charity makes an estimate of accruals at the year end based on invoices received after the year end and work undertaken which has not been invoiced based on quotations or estimates of amounts that may be due for payment.

Tangible fixed assets

Long term leasehold and plant & machinery are depreciated over their useful lives taking into account their residual values where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending upon a number of factors. In re-assessing the assets’ lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into account.

Investment properties

The charity estimates the fair value of investment properties based on publicly available data and consults with experts when they consider it necessary.

THE POLISH CATHOLIC MISSION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

3 Donations and legacies

Unrestricted
Restricted
funds
funds
2020
2020
£
£
Donations and gifts
3,479,966
4,000
Legacies receivable
24,803
-
3,504,769
4,000		 TotalUnrestricted
funds
2020
2019
£
£
3,483,966
4,266,406
24,803
1,111,752
3,508,769
5,378,158		 Restricted
funds
2019
£
264,084
-
264,084		 Total
2019
£
4,530,490
1,111,752
5,642,242

4 Charitable activities

Parish Social Club & other income
Grants
Management charge
Analysis by fund
Unrestricted funds
Restricted funds		 2020
£
429,754
268,095
24,000
721,849
708,002
13,847
721,849		 2019
£
515,281
134,253
24,000
673,534
673,534
-
673,534

There are no unfulfilled conditions relating to grants received and recognised in income.

5 Investment income

UnrestrictedUnrestricted
funds
funds
2020
2019
£
£
Rental income
384,290
462,382
Investment income
135,257
120,613
519,547
582,995		 Restricted
funds
2019
£
-
16,823
16,823		 Total
2019
£
462,382
137,436
599,818

THE POLISH CATHOLIC MISSION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

6 Other income

Net gain on disposal of tangible fixed assets
Other income
Charitable activities
Pastoral
work
2020
£
Activities undertaken directly
454,049
Grant funding activities
-
Support costs
49,806
503,855
Analysis by fund
Unrestricted funds
503,855
Restricted funds
-
503,855
For the year ended 31 December 2019
Pastoral
work
£
Activities undertaken directly
449,670
Grant funding activities
-
Support costs
59,606
509,276
509,276		 UnrestrictedUnrestricted
funds
funds
2020
2019
£
£
27,370
-
115,139
88,004
142,509
88,004
Church
related
activities
Outreach
and events
Special
projects
and giving
Total
2020
2020
2020
2020
£
£
£
£
2,783,332
64,881
257,331
3,559,593
-
-
72,231
72,231
376,719
35,577
50,066
512,168
3,160,051
100,458
379,628
4,143,992
3,160,051
100,458
292,103
4,056,467
-
-
87,525
87,525
3,160,051
100,458
379,628
4,143,992
Church
related
activities
Outreach
and events
Special
projects
and giving
Total
2019
£
£
£
£
3,517,344
240,067
460,268
4,667,349
-
-
114,771
114,771
450,845
42,577
59,917
612,945
3,968,189
282,644
634,956
5,395,065
3,968,189
282,644
634,956
5,395,065

7 Charitable activities

THE POLISH CATHOLIC MISSION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

7
Charitable activities
Analysis by fund
Unrestricted funds
Restricted funds
8
Support costs
Pastoral work
Church related activities
Outreach and events
Special projects and
giving
Analysed between
Insurance
Human resources
Information technology
Other
Office
Governance		 509,276
-
509,276
Support
costs
Governance
costs
£
£
46,846
2,960
354,333
22,386
33,463
2,114
47,091
2,975
481,733
30,435
12,141
-
225,666
-
5,577
-
11,428
-
226,921
-
-
30,435
481,733
30,435		 3,968,189
-
3,968,189
2020
£
49,806
376,719
35,577
50,066
512,168
12,141
225,666
5,577
11,428
226,921
30,435
512,168		 (Continued)
282,644
282,611
5,042,720
-
352,345
352,345
282,644
634,956
5,395,065
Support
costs
Governance
costs
2019
£
£
£
56,064
3,542
59,606
424,054
26,791
450,845
40,047
2,530
42,577
56,356
3,561
59,917
576,521
36,424
612,945
14,533
-
14,533
270,068
-
270,068
6,675
-
6,675
13,679
-
13,679
271,566
-
271,566
-
36,424
36,424
576,521
36,424
612,945

Governance costs includes payments to the auditors of £ 18,000 (2019: £11,760 ) for audit fees.

9 Auditor's remuneration

The analysis of auditor's remuneration is as follows:
Fees payable to the charity's auditor and associates: 2020 2019
£ £
Audit of the charity's annual accounts 18,000 11,760

THE POLISH CATHOLIC MISSION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

10 Trustees

During the year one or more Trustees have been paid remuneration from an employment with or service provided to the charitable company. This remuneration was paid for additional services provided to the charitable company not for those of being a Trustee.

Dr N Langer received remuneration of £36,000 (2019: £36,000) for her role as Financial Director of PCM and Treasurer of PCM HAL, which is combined and reimbursed back to PCM by PCM HAL.

Rt Rev Mgr S Wylezek received a stipend of £20,800 (2019: £20,800).

Rev K Tyliszczak recevied a stipend of £15,600 (2019: £15,600).

During the year ended 31 December 2020, £5,749 was paid to 4 Trustees (2019: £8,496 to 7 Trustees) for reimbursed expenses incurred during the course of their duties for The Polish Catholic Mission.

11 Employees

The average monthly number of employees during the year was:

Head Office
Local Missions
Total
Wages and salaries
Social security costs
Other pension costs		 2020
Number
7
5
12
264,309
7,156
1,807
273,272		 2019
Number
7
6
13
274,602
7,844
2,264
284,710

Total employee benefits attributable to key management personnel are £73,293 (2019: £73,296).

There were no employees whose annual remuneration was £60,000 or more.

12 Net gains/(losses) on investments

Unrestricted Unrestricted
funds funds
2020 2019
£ £
Gain/(loss) on sale of investments (75,026)
281,624

THE POLISH CATHOLIC MISSION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

13 Tangible fixed assets

Cost
At 1 January 2020
Additions
Disposals
At 31 December 2020
Depreciation and impairment
At 1 January 2020
Depreciation charged in the year
Eliminated in respect of disposals
At 31 December 2020
Carrying amount
At 31 December 2020
At 31 December 2019		 Freehold
property
£
11,787,286
1,413,416
(435,000)
12,765,702
820,718
-
(13,920)
806,798
11,958,904
10,966,568		 Leasehold
land and
buildings
£
656,885
-
-
656,885
41,085
2,769
-
43,854
613,031
615,800		 Fixtures and
fittings
£
355,527
-
-
355,527
224,527
35,551
-
260,078
95,449
131,000		 Total
£
12,799,698
1,413,416
(435,000)
13,778,114
1,086,330
38,320
(13,920)
1,110,730
12,667,384
11,713,368

14 Investment property

Investment property
2020
£
Fair value
At 1 January 2020 and 31 December 2020 729,334

Investment property comprises of three residential properties. There have been no valuations of investment properties carried out since their purchase. The trustees are of the opinion that the cost price is a fair reflection of the assets' current market value.

15 Social investments

At 1 January 2020
Additions
Interest
Repayments
At 31 December 2020		 £
470,000
730,000
7,682
(83,329)
1,124,353

THE POLISH CATHOLIC MISSION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

16
Debtors
2020
Amounts falling due within one year:
£
Other debtors
66,463
Prepayments and accrued income
65,559
132,022
17
Current asset investments
2020
£
Non-social investments
2,561,937
At 1 January 2020
3,325,594
Additions
350,000
Disposals
(1,038,631)
Revaluations
(75,026)
At 31 December 2020
2,561,937
18
Creditors: amounts falling due within one year
2020
£
Other taxation and social security
2,515
Other creditors
-
Accruals and deferred income
18,000
20,515
19
Creditors: amounts falling due after more than one year
2020
£
Other creditors
207,295		 2019
£
16,100
129,072
145,172
2019
£
3,325,594
2019
£
3,043
257
93,627
96,927
2019
£
232,542

THE POLISH CATHOLIC MISSION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

20 Restricted funds

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
Balance at
1 January 2019
Incoming
resources
Resources
expended
Balance at
1 January 2020

£
£
£
£
Professor Zych
61,088
611
(1,016)
60,683
Edward Wallace
17,658
-
(17,658)
-
Herpel
39,514
395
-
39,909
MB Grabowski
724,059
15,817
(74,769)
665,107
Jerzy and Stanislawa Strzemien
1
-
-
1
Special Collections
8,844
264,084
(258,902)
14,026
851,164
280,907
(352,345)
779,726		 Movement in funds
Incoming
resources
Resources
expended
Transfers
Balance at
31 December
2020
£
£
£
£
-
(8,242)
(2,312)
50,129
-
-
-
-
-
(38,408)
(1,501)
-
4,000
(13,000)
(198,557)
457,550
13,847
(13,848)
-
-
-
(14,026)
-
-
17,847
(87,524)
(202,370)
507,679

THE POLISH CATHOLIC MISSION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

21 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:

1
Property
Fund
Special
Purposes
Fund
Institute of
Polish
Catholic
Action
Children's
Day
Gosc
Niedzielny
Priests' Fund		 Balance at
January 2019
£
10,388,018
1,403,781
39,105
9,480
36,003
929
11,877,316		 Movement in funds
Incoming
resources
Resources
expended
Transfers
1
£
£
£
-
-
1,923,684
-
(1,156,798)
-
-
(39,105)
-
95
-
-
360
-
-
9
-
-
464
(1,195,903)
1,923,684		 Balance at
January 2020
£
12,311,702
246,984
-
9,575
36,362
938
12,605,561		 Transfers
£
989,567
(246,984)
-
(9,575)
(36,362)
(938)
695,708		 Balance at
31 December
2020
£
13,301,269
-
-
-
-
-
13,301,269

THE POLISH CATHOLIC MISSION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

22 Summary of funds

The Property Fund consists of the net book value of the freehold and leasehold land, buildings and improvements as well as investment properties.

The Special Purposes Fund represents surplus cash that will be used for specific repairs and projects as decided by the trustees. The balance of these monies are held in investment accounts as the trustees have determined this will earn the charity the best rate of return whilst making funds easily accessible when they are needed.

The Institute of Polish Catholic Action (IPAK) Fund is for financing lectures, conferences and pilgrimages.

The Children's Day Fund is for financing the annual Children's Day at Laxton Hall.

The Gosc Niedzielny Fund is for future production of the Polish newspaper.

The Priests' Fund is for retired priests, for assisting them in old age.

The purpose of the Professor Zych Fund is to help the propagation of the devotion of Jesus to the Merciful. The resources expended relate to repairs and maintenance work to the chapel of St Briavel's.

The purpose of the Edward Wallace Fund is to help financing the hospital and nursing facilities for elderly.

The purpose of the Herpel Fund is to help financing the education of orphans and relieve poverty amongst people.

The MB Grabowski Fund represents the investment portfolio and cash resources in relation to the previously separate registered charity number 270110. The fund is required to be treated as restricted, following a Uniting Direction from the Charity Commission of 20 July 2007. A thorough analysis of the financial movements in the Fund is produced and approved by the trustees. Of the total transfer balance to the unrestricted funds, £18,000 relates to the annual management fee to the charitable company and the remaining balance relates to the loans provided to PCM Housing Association Limited, less any repayments during the year.

The purpose of the Jerzy and Stanislawa Strzemien Fund is to benefit the sick, in need and lonely parishioners of the Ealing PCM.

The Special Collections Fund consists of obligatory regular as well as extra ordinary collection.

THE POLISH CATHOLIC MISSION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

23
Analysis of net assets between funds
Unrestricted
funds
2020
£
Fund balances at 31
December 2020 are
represented by:
Tangible assets
12,667,384
Social investments
1,124,353
Investment properties
729,334
Current assets/
(liabilities)
3,989,422
Long term liabilities
(207,295)
18,303,198
Restricted
funds
2020
£
-
-
-
507,679
-
507,679		 TotalUnrestricted
funds
2020
2019
£
£
12,667,384
11,713,368
1,124,353
470,000
729,334
729,334
4,497,101
4,677,335
(207,295)
(232,542)
18,810,877 17,357,495		 Restricted
funds
2019
£
-
-
-
779,726
-
779,726		 Total
2019
£
11,713,368
470,000
729,334
5,457,061
(232,542)
18,137,221

24 Financial commitments, guarantees and contingent liabilities

At the year end, the charity is committed to funding a housing project with PCM Housing Association Limited by way of a loan of a total of £nil (2019: £1.3m).

25 Related party transactions

The control of PCM Housing Association Limited is closely related to the charity and offices are shared. In addition, the majority of the Trustees of the charity are Directors of the Housing Association.

The transactions during the year between the two consist of the following:

THE POLISH CATHOLIC MISSION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

26
Cash generated from operations
Surplus for the year
Adjustments for:
Investment income recognised in statement of financial activities
Gain on disposal of tangible fixed assets
Loss/(gain) on disposal of investments
Depreciation and impairment of tangible fixed assets
Movements in working capital:
Decrease/(increase) in debtors
(Decrease)/increase in creditors
Cash generated from operations
27
Analysis of changes in net funds
At 1 January
2020
£
Cash at bank and in hand
2,083,222
Liquid investments
3,325,594
5,408,816
5,408,816		 Cash flows
£
(259,565)
(688,631)
(948,196)
(948,196)		 2020
2019
£
£
673,656
1,890,157
(135,257)
(137,436)
(27,370)
-
75,026
(281,624)
38,320
38,200
13,150
(415,588)
(101,659)
210,030
535,866
1,303,739
Fair value
movements
At 31 December
2020
£
£
-
1,823,657
(75,026)
2,561,937
(75,026)
4,385,594
(75,026)
4,385,594

28 Events after the reporting date

After the balance sheet date, the charity completed the following property transactions:

The charity is currently undergoing the purchase of another property in Sheffield with its solicitors.