2021-12-31-accounts

Providence Marian Company

Report and Financial Statements 31 December 2021

Company Limited by Guarantee Registration Number 6873673 (England and Wales)

Charity Registration Number 1133491

Contents

Reports

Reference and administrative details
of the charitable company, its trustees
and advisers	1
Trustees’ report	3
Independent auditor’s report	16
Financial statements
Statement of financial activities	21
Balance sheet	22
Statement of cash flows	23
Principal accounting policies	24
Notes to the financial statements	29

Providence Marian Company

Reference and administrative details of the charitable company, its trustees and advisers 31 December 2021

Trustees Sister Mary Flannigan Sister Margaret Cloghessy Sister Marthe Marie Dachet Sister Genevieve Cecile Defrenne Sister Martha Magdalena Geers Sister Marie-Jose Herbeuval Sister Veronica Maguire Sister Patricia Ryan Address Providence House 4 Melbourn Road Royston Hertfordshire SG8 7DB Charity registration number 1133491 Company registration number 6873673 (England and Wales) Auditor Buzzacott LLP 130 Wood Street London EC2V 6DL Principal bankers Barclays Bank plc 28 Hampstead High Street Hampstead London NW3 1QB Lloyds Bank plc The Cross 2 - 4 Melbourn Street Royston Hertfordshire SG8 7BL

Providence Marian Company 1

Reference and administrative details of the charitable company, its trustees and advisers 31 December 2021

Investment managers Barclays Wealth 1 Churchill Place London E14 5HP Rathbone Investment Management Limited Port of Liverpool Building Pierhead Liverpool L3 1NW Evelyn Partners (formerly Smith and Williamson Investment Management Limited) 45 Gresham Street London EC2V 7BG Property advisers Gerald Eve LLP One Fitzroy 6 Mortimer Street London W1T 3JJ Solicitors Pothecary Witham Weld 84 Eccleston Square Pimlico London SW1V 1PX

Providence Marian Company 2

Trustees’ report 31 December 2021

The trustees, who are directors of the company for the purposes of the Companies Act, present their report together with the financial statements of Providence Marian Company (the “charitable company”) for the year ended 31 December 2021.

The financial statements have been prepared in accordance with the accounting policies set out on pages 24 to 28 of the attached financial statements and comply with the charitable company’s memorandum and articles of association, the Companies Act 2006 and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their financial statements in accordance with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102).

Constitution

Providence Marian Company is a company limited by guarantee, Company Registration No. 6873673 (England and Wales) and a charity registered under the Charities Act 2011, Charity Registration No. 1133491.

Introduction

The Congregation of the Sisters of Providence and of the Immaculate Conception (the Congregation) is an international Roman Catholic religious congregation divided into a number of separate provinces.

The financial statements accompanying this report are the financial statements relating to the Congregation’s activities and assets in England.

The objects of the charitable company are to support such charitable purposes which advance the religious and other charitable work, for the time being carried on by, or under, the direction of the Congregation as the trustees, with the approval of the provincial superior, shall from time to time think fit.

The objects of the charitable company are set out in its memorandum of association.

Activities, specific objectives, and relevant policies

Activities and specific objectives

The charitable company aims to support the advancement of the charitable works carried on by the Congregation for the advancement of the Roman Catholic religion and the wellbeing of those who benefit from the sisters’ ministries. By caring for individual sisters throughout their lives with the Congregation, the charitable company aims to enable and support the sisters to live out their faith and put that faith into practice through a wide variety of religious and other works.

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Trustees’ report 31 December 2021

Activities, specific objectives, and relevant policies (continued)

Activities and specific objectives (continued)

The works or ministries of the sisters fall into the following main areas:

Social and pastoral work

Members of the Congregation are involved in various forms of social and pastoral work including support of the bereaved, visiting the sick and parish ministry.

The trustees recognise the absolute necessity of ensuring the protection and safety of all those the charitable company serves. The trustees are committed to implementing all policies and procedures of the Catholic Safeguarding Services Agency (CSSA) and Religious Life Safeguarding Services (RLSS).

Grants, donations, and support of overseas work

The charitable company’s policy throughout the year was to make grants and donations, principally in support of the overseas work of the Congregation of the Sisters of Providence and of the Immaculate Conception and other causes which further the Christian faith and alleviate poverty.

Four of the charitable company’s trustees are members of the General Council of the Congregation, Sister Martha Magdalena Geers, Sister Marie-Jose Herbeuval, Sister Marthe Dachet and Sister Genevieve Defrenne. Those trustees who are members of the General Council withdraw from discussions concerning the awarding of donations to both the Generalate of the Congregation and to the wider Congregation.

Public benefit

All the trustees are conversant with the Charity Commission’s guidelines concerning charities and public benefit and have given consideration to them when assessing the charitable company’s activities. The trustees believe that they have given due regard to the public benefit guidance published by the Commission and have complied fully with the public benefit requirement contained within the Charities Act 2011.

Investment policy

During the period, the charitable company’s investments comprised listed investments, cash held for investment and bank deposits. The listed investments were managed by investment managers who operated within specific guidelines which are set and regularly reviewed by the trustees whilst bank deposit are held with banks regulated in the United Kingdom.

The overall objective with regard to the charitable company’s investments is to maximise total return within acceptable levels of risk.

Providence Marian Company 4

Trustees’ report 31 December 2021

Achievements and performance

Review of activities

Social and pastoral work

The orientation of the sisters’ work continues to vary with the needs of people. The sisters endeavour to help all who require assistance.

Support of the Congregation’s work overseas

The charitable company supports the work of the Generalate and overseas provinces of the Sisters of Providence and of the Immaculate Conception. Since 2014, the trustees have been making regular donations to the Generalate to support the Congregation’s overseas work in South America and other parts of the world where the need arises. In recent years, donations of £750,000, £850,000 and more recently £1m per annum have been made. The expenditure included in the accounts for the year to 31 December 2021 reflects the latest commitment of the trustees to pay £1.5 million per annum to the Generalate for each of the years through to 2026.

The following are some examples of how the monies donated by the charitable company to the Generalate have been used on various projects:

In Congo:

• Continued support for an orphanage constructed in 2014 in Congo including the pastoral and educational development of children.

• Purchasing a Jeep to transport people and material required for other projects that aid in providing education and ensuring the health of those most in need of it.

• Constructing a hospital and maternity centre in Kinkole, including ensuring that the foundations are sound and there is an adequate water supply by drilling a water well.

• Purchasing a plot of land for future construction in Kinkole.

• Providing aid to those affected by the pandemic and natural disasters.

• Building accommodation including bedrooms and a kitchen for those in Righini.

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Trustees’ report 31 December 2021

Achievements and performance (continued)

Review of activities (continued)

Support of the Congregation’s work overseas (continued)

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Review of activities (continued)
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Trustees’ report 31 December 2021

Achievements and performance (continued)

Review of activities (continued)

Support of the Congregation’s work overseas (continued)

In Ecuador:

• Providing support for the disadvantaged during the recent pandemic.

• Providing finance to the Hospital San Jose Obero, in Quito (reception of destitute persons) to develop a medical service.

• Assisting with the schooling for the children at a school in a poorer neighbourhood.

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Trustees’ report 31 December 2021

Achievements and performance (continued)

Review of activities (continued)

Support of the Congregation’s work overseas (continued)

In Haiti:

• Contributing towards the development of the mission to ensure that those in Cté have access to educational, pastoral and health support.

In Colombia-Peru:

• Supporting the underprivileged during the Covid-19 pandemic.

• Participating in the Yacopi project starting a social project in a poor rural environment.

• Providing further aid to families experiencing hardship.

Providence Marian Company 8

Trustees’ report 31 December 2021

Financial review

Income and expenditure

A summary of the year’s results can be found on page 21 of the attached financial statements.

Income for the year totalled £699,506 (2020: £443,481) and includes salaries and pensions donated by the members of £62,634 (2020: £74,548), donations and legacies receivable of £2,738 (2020: £2,841) and investment income and interest receivable of £395,688 (2020: £361,043).

Total expenditure for the year amounted to £3,454,080 (2020: £1,189,273). £214,560 (2020: £209,128) was expended on supporting sisters and enabling them to carry out their work. Grants and donations amounted to £4,098,830 (2020: £859,456). Further details of the donations payable during the year are given in note 3 to the financial statements. £143,724 (2020: £120,689) was incurred on investment management fees.

Net expenditure for the year before investment gains, therefore, was £3,399,324 (2020: £745,792). Net investment gains of £1,897,967 (2020: £906,007) resulted in a net decrease in funds for the year of £1,501,357 (2020: net increase of £160,215).

Investment performance

Investments at 31 December 2021 totalled £22,174,167 (2020: £22,211,462).

The charitable company has three portfolios of listed investments with a combined market value at 31 December 2021 of £21,663,467 (2020: £19,274,299), cash awaiting investment of £510,700 (2020: £747,904) and cash held on deposit with bankers of £nil (2020: £2,189,258).

During the year, the charitable company’s income from listed investments was £395,609 (2020: £354,323) and gains on disposal and revaluation of investments were £1,897,967 (2020: gains of £906,007), equating to an income yield of 1.9% (2020: 1.9%) and a capital yield of 9.9% (2020: capital yield of 4.8%)

The investment managers have invested in accordance with the trustees’ investment policy set out elsewhere in this report. Further details of the investment portfolio are included in note 10 to the attached financial statements.

The trustees continue to take a long-term view and believe their investment policy continues to be applied and remains appropriate.

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Trustees’ report 31 December 2021

Financial review (continued)

Reserves policy and financial position

Reserves policy

The trustees have examined the requirement for free reserves i.e those unrestricted funds not invested in tangible fixed assets, designated for specific purposes or otherwise committed. The trustees consider that, given the nature of the charitable company’s work and the age profile of the sisters, the level of free reserves should equal up to five year’s ongoing expenditure excluding charitable grants and donations.

In particular, at the current time, the reserves need to be sufficient to enable the charitable company to operate in the circumstances created by the aftermath of the Covid-19 pandemic and the current geopolitical and macroeconomic climate.

Financial position

The balance sheet shows total funds of £18,807,268 (2020: £20,308,625).

Of this £896,984 (2020: £1,286,031) represents the net book value of the charitable company’s tangible fixed assets and an equivalent amount has been designated as a tangible fixed assets fund in recognition of the fact that the assets are required for the charitable company’s operations and are not available as a reserve to fund activities or meet future contingencies.

The trustees have set aside £1,500,000 (2020: £1,600,000) to provide for the sisters in their retirement. The value of the fund has been calculated using actuarial principles to provide for the Congregation’s sisters resident in England, but is not meant to guarantee sufficient resources. It is merely an estimate designed to recognise, and make some provision for, the financial undertaking implicit in the relationship between a religious congregation and its members.

The trustees have established the financing and Congregational fund with the broad intention to use the fund to finance grants and donations, including contributions to the Congregation’s work overseas. Whilst the trustees continue to consider the future, further work has to be done on deciding exactly how these funds are to be applied. The balance of the fund stood at £14,308,550 at 31 December 2021 (2020: £15,768,950). Further details about the movement in the fund are given in note 15 to the financial statements.

Funds which are available, therefore, to support the work of the sisters in the future are those shown on the balance sheet as general funds or “free reserves” and amount to £2,101,734 (2020: £1,653,644).

At the date of the balance sheet, the trustees consider that the level of free reserves were adequate but not excessive given the inherent volatility on world stock markets at the current time. In particular, the level of reserves is deemed sufficient when the impact of the aftermath of the Covid-19 pandemic and the current geopolitical and macroeconomic climate are considered.

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Trustees’ report 31 December 2021

Financial review (continued)

Tangible fixed assets

Movements in tangible fixed assets during the year are disclosed in the notes to the attached financial statements.

Future plans

As members of the Congregation decrease in number, the trustees and the sisters need to discern very carefully which ministries are most required by those to whom the sisters minister and the ministries that are suitable for the aging community.

The sisters reside in a convent in Hertfordshire and the trustees plan to maintain various aspects of activities as are compatible with the age, health and energy of the members. They will continue to monitor the needs of the sisters as they grow older, to ensure the provision of care for elderly members and even amidst the limitations that come with ageing, to foster what lies at the heart of the sisters’ charism/mission.

As explained under “Reserves policy and financial position”, it is the intention of the trustees to apply the financing and Congregational fund towards the financing of grants and donations, including contributions to the Congregation’s work overseas. It is expected that a large proportion of the fund will continue to be invested but it is anticipated also that some of the money may be applied directly towards grants and donations.

Governance, structure and management

Governance

In terms of Canon law, the Congregation is governed at an international level by the Superior General and her General Council.

In terms of civil law, the charitable company is constituted as a company limited by guarantee (Company Registration No. 6873673 (England and Wales)) and is a charity registered for charitable purposes with the Charity Commission (Charity Registration No. 1133491).

The charitable company’s members are the trustees of the charitable company. The trustees are nominated by the Regional Superior of the Congregation taking into account their personal qualities, their understanding and experience of the ministries.

Liability of the members

In the event of the charitable company being wound up during the period of membership, or within the year following, company members are required to contribute an amount not exceeding £1.

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Trustees’ report 31 December 2021

Governance, structure and management (continued)

Organisation

The trustees are ultimately responsible for the policies, activities and assets of the charitable company. They meet regularly during the year to review developments with regard to the charitable company, its activities and make any important decisions. When necessary, the trustees seek advice and support from the charitable company’s professional advisers including investment managers, property experts, solicitors and accountants.

Trustees

The trustees are nominated by the Regional Superior of the Congregation and are elected by the members at the annual general meeting. At any one time there shall not be less than three nor more than ten trustees.

The trustees may be removed at any time by the Regional Superior by instrument in writing.

The Regional Superior and the Bursar General of the Congregation are ex officio trustees.

The following trustees were in office during the year and up to the date on which this report was approved:

Trustee Sister Mary Flannigan Sister Margaret Cloghessy Sister Genevieve Defrenne Sister Marthe Dachet Sister Martha Magdalena Geers Sister Marie-Jose Herbeuval Sister Veronica Maguire Sister Patricia Ryan

No trustee received any remuneration or reimbursed expenses for services as a trustee, nor had any beneficial interest in any contract with the charitable company, during the year.

The day to day management of the charitable company’s activities and the implementation of policies is delegated to the appropriate members of the Congregation. Management reporting lines are clearly defined and the trustees receive regular reports to enable them to fulfil their responsibilities.

Statement of trustees’ responsibilities

The trustees (who are also directors of Providence Marian Company for the purposes of company law) are responsible for preparing the trustees’ report and financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

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Trustees’ report 31 December 2021

Governance, structure and management (continued)

Statement of trustees’ responsibilities (continued)

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 charitable company and of the income and expenditure of the charitable company for that period. 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 charitable company and of the income and expenditure of the charitable company 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 of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their financial statements in accordance with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102);

•  make judgements and estimates that are reasonable and prudent;

•  state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

•  prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in operation.

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

Each of the trustees confirms that:

•  so far as the trustee is aware, there is no relevant audit information of which the charitable company’s auditor is unaware; and

•  the trustee has taken all the steps that she ought to have taken as a trustee in order to make herself aware of any relevant audit information and to establish that the charitable company’s auditor is aware of that information.

This confirmation is given and should be interpreted in accordance with the provisions of s418 of the Companies Act 2006.

The trustees are responsible for the maintenance and integrity of financial information included on the charitable company’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

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Trustees’ report 31 December 2021

Governance, structure and management (continued)

Key management

The trustees consider that they comprise the key management of the charitable company in charge of directing and controlling, running and operating the charitable company on a dayto-day basis.

All trustees are members of the Congregation and whilst the living and personal expenses of those resident in England are borne by the charitable company, none of the trustees receive any remuneration or reimbursement of expenses in connection with their duties as trustees or their work as key management.

Risk management

The trustees recognise their responsibility for the management of risks faced by the charitable company and the sisters.

In line with the requirement for trustees to undertake a risk assessment exercise and report on the same in their annual report, the trustees have looked at the risks the charitable company currently faces and have reviewed the measures already in place, or needing to be put in place, to deal with them.

The key risks for the charitable company, as identified by the trustees, are described below together with the principal ways in which they are mitigated:

•  An analysis of the age profile of the members of the Congregation shows that the average age is 90 years. The trustees are aware that there is both a moral and legal obligation to care for the older members. None of the sisters have resources of their own. As the age profile increases, so too does the need to provide care for the sisters. Key elements of the management of this risk are: (a) ensuring that the charitable company has the available financial resources to finance this care both now and in the years ahead by setting aside assets in a designated fund, the value of which has been based on actuarial principles; and (b) ensuring that processes are in place to review regularly the ministries and needs of individual sisters encouraging those who need it to take on less demanding ministries and for identifying those who need extra care and help.

•  The charitable company donates monies in support of the wider Congregation and other organisations. Most donations sent overseas are to fund projects administered directly by members of the Congregation. Whether or not the funds are used here in Great Britain or overseas, the trustees always ensure that they are fully briefed about and familiar with the work of a potential recipient of funds, that funds are transferred via bank transfer, that proof of receipt is obtained and that, wherever possible (and always in the case of monies sent overseas), a written report of how the monies have been utilised and applied is obtained from the recipient.

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Trustees’ report 31 December 2021

Governance, structure and management (continued)

Risk management (continued)

•  The charitable company's principal asset comprises listed investments, the value of which is dependent on movements in UK and world stock markets. The investments are managed by reputable investment managers who adhere to a policy agreed by the trustees. The trustees meet regularly with the investment managers and the managers’ performance and that of the portfolio are monitored. The investment strategy is assessed regularly to ensure it remains appropriate to the charitable company's needs – both now and in the future. In the aftermath of the Covid-19 pandemic and given the current macroeconomic and geopolitical climate, the trustees continue to communicate with their investment managers and, whilst there are concerns over the volatility in world stock markets, they acknowledge also that the charitable company is a long term investor. As such, the charitable company will be able to wait for markets to stabilise over time whilst the trustees keep a watching brief.

Having assessed the major risks to which the charitable company is exposed, the trustees believe that by monitoring reserve levels, by ensuring controls exist over key financial systems, and by examining the operational and business risks faced by the charitable company, they have established effective systems to mitigate those risks.

Fundraising policy

The charitable company receives very little income from donations from members of the public. However, it aims to achieve best practice in the way in which it communicates with donors and other supporters. It takes care with both the tone of its communications and the accuracy of its data to minimise the pressures on supporters. It applies best practice to protect supporters’ data and never sells data, it never swaps data and ensures that communication preferences can be changed at any time. The charitable company manages its own fundraising activities and does not employ the services of Professional Fundraisers. The charitable company undertakes to react to and investigate any complaints regarding its fundraising activities and to learn from them and improve its service. During 2021, the charitable company received no complaints about its fundraising activities.

Employees, volunteers, and members of the Congregation

The trustees wish to record their recognition of the professionalism and commitment of all their staff, volunteers and the individual members of the Congregation. Their dedication and positive approach are very much appreciated.

Approved by the trustees of the Providence Marian Company, Company Registration No. 6873673 (England and Wales) and Charity Registration No. 1133491 and signed on their behalf by:

M Flannigan

Trustee

Approved by the trustees on: 8 September 2022

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Independent auditor’s report 31 December 2021

Independent auditor’s report to the members of Providence Marian Company

Opinion

We have audited the financial statements of Providence Marian Company (the ‘charitable company’) for the year ended 31 December 2021 which comprise the statement of financial activities, the balance sheet, the statement of cash flows, the principal accounting policies and the notes to the financial statements. 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 charitable company’s affairs as at 31 December 2021 and of its income and expenditure 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 charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company’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.

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Independent auditor’s report 31 December 2021

Other information

The trustees are responsible for the other information. The other information comprises the information included in the Annual Report and Financial Statements, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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 the audit:

• the information given in the trustees’ report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• the trustees’ report has been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in 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; or

• the trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies’ exemptions in preparing the trustees’ report and from the requirement to prepare a strategic report.

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Independent auditor’s report 31 December 2021

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement, the trustees 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 charitable company’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.

How the audit was considered capable of detecting irregularities including fraud

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

• The engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

• We identified the laws and regulations applicable to the charitable company through discussions with trustees and from our knowledge and experience of the charity sector;

• We focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the activities of the charitable company. These included but were not limited to the Charities Act 2011, the Companies Act 2006 and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their financial statements in accordance with the Financial Reporting Standard applicable to the United Kingdom and Republic of Ireland (FRS 102); and

• We assessed the extent of compliance with the laws and regulations identified above through making enquiries of trustees and review of minutes of trustees’ meetings.

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Independent auditor’s report 31 December 2021

Auditor’s responsibilities for the audit of the financial statements

How the audit was considered capable of detecting irregularities including fraud (continued)

We assessed the susceptibility of the charitable company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

• Making enquiries of trustees as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and

• Considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

• To address the risk of fraud through management bias and override of controls, we:

• Performed analytical procedures to identify any unusual or unexpected relationships;

• Tested and reviewed journal entries to identify unusual transactions;

• Carried out substantive testing of expenditure;

• Assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and

• Investigated the rationale behind significant or unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

• Agreeing financial statement disclosures to underlying supporting documentation;

• Reading the minutes of meetings of trustees; and

• Enquiring of as to actual and potential litigation and claims.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the trustees and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

We did not identify any irregularities, including fraud.

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

Providence Marian Company 19

Independent auditor’s report 31 December 2021

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 auditor's 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.

Amanda Francis (Senior Statutory Auditor) 20 September 2022 For and on behalf of Buzzacott LLP, Statutory Auditor 130 Wood Street London EC2V 6DL

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Statement of financial activities Year to 31 December 2021

Notes	Unrestricted funds	Unrestricted funds
	2021 £	2020 £
Income and expenditure Income from: Donations 1 Investments and interest receivable 2 Surplus of the disposal of tangible fixed assets (freehold property) Miscellaneous income Total income Expenditure on: Raising funds . Investment management fees Charitable activities . Charitable grants and donations 3 . Support of members of the Congregation and their ministry 4 Total expenditure Net expenditure for the year before net investment gains 6 Net investment gains 10 Net (expenditure) income and net movement in funds for the year Reconciliation of funds: Fund balances brought forward at 1 January 2021 Fund balances carried forward at 31 December 2021	65,372 395,688 238,439 7	77,389 361,043 — 5,049
	699,506	443,481
	143,724 3,740,546 214,560	120,689 859,456 209,128
	4,098,830	1,189,273
	(3,399,324) 1,897,967	(745,792 906,007
	(1,501,357) 20,308,625	160,215 20,148,410
	18,807,268	20,308,625

All activities of the charitable company derived from continuing operations during the above two financial periods.

All recognised gains and losses are included in the statement of financial activities.

Providence Marian Company 21

Balance sheet 31 December 2021

Notes	2021 £	2021 £	2020 £	2020 £
Fixed assets Tangible assets 9 Investments 10 Current assets Debtors 11 Cash at bank and in hand Current liabilities Creditors: amounts falling due within one year 12 Net current assets Total assets less current liabilities Creditors:amounts falling due after one year 13 Total net assets The funds of the charitable company: Unrestricted funds . Tangible fixed assets fund 14 . Designated funds 15 . General funds	10,397 2,665,680	896,984 22,174,167	71,678 1,572,314	1,286,031 22,211,462
		23,071,151 1,127,867		23,497,493 599,482
	2,676,077 (1,548,210)		1,643,992 (1,044,510)
		24,199,018 (5,391,750)		24,096,975 (3,788,350)
		18,807,268		20,308,625
		896,984 15,808,550 2,101,734		1,286,031 17,368,950 1,653,644
		18,807,268		20,308,625

Approved by the trustees of the Providence Marian Company, Company Registration No. 6873673 (England and Wales) and Charity Registration No. 1133491 and signed on their behalf by:

M Flannigan

Trustee

Approved on: 8 September 2022

Providence Marian Company 22

Statement of cash flows Year to 31 December 2021

Notes	2021 £	2020 £
Cash flows from operating activities: Net cash used in operating activities A Cash flows from investing activities: Investment income and interest received Proceeds from the disposal of tangible fixed assets Proceeds from the disposal of listed investments Purchase of listed investments Cash withdrawn from bank deposits held as fixed asset investments Net cash provided by investing activities Change in cash and cash equivalents in the year Cash and cash equivalents at 1 January 2021 B Cash and cash equivalents at 31 December 2021 B	(1,832,002)	(1,230,462)
	393,428 596,678 4,961,691 (5,452,892) 2,189,259	364,629 — 3,045,718 (3,013,741) 1,492,419
	2,688,164	1,889,025
	856,162 2,320,218	658,563 1,661,655
	3,176,380	2,320,218

Notes to the statement of cash flows for the year to 31 December 2021

A Reconciliation of net movement in funds to net cash used in operating activities

	2021 £	2020 £
Net movement in funds (as per the statement of financial activities) Adjustments for: Depreciation charge Surplus on disposal of tangible fixed assets Gains on investments Investment income and interest receivable Decrease (increase) in debtors Increase (decrease) in creditors Net cash used in operating activities	(1,501,357) 30,808 (238,439) (1,897,967) (395,688) 63,541 2,107,100	160,215 32,867 — (906,007) (361,043) (4,965) (151,529)
	(1,832,002)	(1,230,462)

B Analysis of cash and cash equivalents

Analysis of cash and cash equivalents
	As at 1 January 2021	Cash flows £ 1,093,366 (237,204) 856,162	As at 31 December 2021 £ 2,665,680 510,700 3,176,380
Cash at bank and in hand Cash held by investment managers Total cash and cash equivalents	1,572,314 747,904
	2,320,218

No separate statement of changes in net debt has been prepared as there is no difference between the movements in cash and cash equivalents and movement in net cash (debt).

Providence Marian Company 23

Principal accounting policies 31 December 2021

The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are laid out below.

Basis of preparation

These financial statements have been prepared for the year to 31 December 2021 with comparative figures given in respect to the year to 31 December 2020.

The financial statements have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant accounting policies below or the notes to these financial statements.

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their financial statements in accordance with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (Charities SORP FRS 102), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

The charitable company constitutes a public benefit entity as defined by FRS 102.

The financial statements are presented in sterling and are rounded to the nearest pound.

Critical accounting estimates and areas of judgement

Preparation of the financial statements requires the trustees to make significant judgements and estimates.

The items in the financial statements where these judgements and estimates have been made include:

•  determining the discount rate to be applied to future donations when accounting for them within creditors;

•  assessing the useful economic lives attributed to tangible fixed assets and used to determine the annual depreciation charge;

•  the assumptions applied in determining the size of designated funds and, in particular, the retirement reserve created in order to provide for the continuing care of the members of the Congregation; and

•  estimating future income and expenditure flows and the charitable company’s financial position (see “assessment of going concern” below).

Assessment of going concern

The trustees have assessed whether the use of the going concern assumption is appropriate in preparing these financial statements. The trustees have made this assessment in respect to a period of at least one year from the date of approval of these financial statements.

Providence Marian Company 24

Principal accounting policies 31 December 2021

Assessment of going concern (continued)

Whilst the charitable company’s income may be affected by the volatility in investment markets caused by the aftermath of the Covid-19 pandemic and the current macroeconomic and geopolitical climate, the trustees do not believe this will cause material concerns to the charitable company. They will continue to keep both income and expenditure under review.

With regard to the next accounting period, the year ending 31 December 2022, the most significant areas that affect the carrying value of the assets held by the charitable company are the level of investment return and the performance of the investment market.

Whilst the charitable company may face some challenges because of the factors noted above, the trustees do not anticipate any serious impact on the charity’s finances.

Income recognition

Income is recognised in the period in which the charitable company has entitlement to the income, the amount of income can be measured reliably and it is probable that the income will be received.

Income comprises donations, income from investments, bank interest and income from other sources.

Donations, including salaries and pensions of individual religious received under Gift Aid or deed of covenant, are recognised when the charitable company has confirmation of both the amount and settlement date. In the event of donations pledged but not received, the amount is accrued for where the receipt is considered probable. In the event that a donation is subject to conditions that require a level of performance before the charitable company is entitled to the funds, the income is deferred and not recognised until either those conditions are fully met, or the fulfilment of those conditions is wholly within the control of the charitable company and it is probably that those conditions will be fulfilled in the reporting period.

In accordance with the Charities SORP FRS 102 volunteer time is not recognised.

Investment income is recognised once the dividend has been declared and notification has been received of the dividend due.

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charitable company; this is normally upon notification of the interest paid of payable.

Income from other sources is recognised in the period in which the charitable company is entitled to receipt, the amount can be measured reliably and receipt is probable.

Expenditure recognition

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charitable company to make a payment 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.

Providence Marian Company 25

Principal accounting policies 31 December 2021

Expenditure recognition (continued)

All expenditure is accounted for on an accruals basis. The majority of expenditure is directly attributable to specific activities and any apportionment between headings is negligible. All expenditure is applied towards charitable activities and the classification between activities is as follows:

•  The provision of charitable grants and donations relate, in the main, to the support of the Congregation’s own work and the support of other Roman Catholic charitable organisations to relieve poverty, suffering and promotion of education or religion in connection with the Roman Catholic faith. Charitable grants and donations are made where the trustees believe there is a real need following a review of the details of each particular case. Grants and donations are included in the statement of financial activities when approved for payment. Provision is made for any material grants and donations approved but unpaid at the end of the financial year.

The unwinding of the discount factor in respect to donations payable is included within grants, donations and support of missionary work and ministry and is described as a financing cost.

•  Expenditure on the support of members of the Congregation and their ministry comprises those costs which support the members of the Congregation and which enable those members to carry out their individual ministry, the work of the charitable company in the areas of the advancement of the Roman Catholic faith and the provision of social and pastoral work.

All expenditure is stated inclusive of irrecoverable VAT.

Governance costs

Governance costs comprise the costs involving the public accountability of the charitable company (including audit costs) and costs in respect to its compliance with regulation and good practice. All expenditure on governance is attributed directly to the charitable activities of supporting members of the Congregation and enabling their ministry as any costs in relation to donations payable is considered to be negligible.

Tangible fixed assets

All assets costing more than £1,500 and with an expected useful life exceeding one year are capitalised.

•  Freehold land and buildings

• Freehold land and buildings are included on the balance sheet stated at cost, or where cost is not available then at 1997 or 1998 valuations which were determined by the trustees on the basis of replacement cost for existing use with additions since those dates included at cost.

Providence Marian Company 26

Principal accounting policies 31 December 2021

Tangible fixed assets (continued)

•  Freehold land and buildings (continued) As permitted by FRS 102, with effect from 1 January 2014 the value assigned to these properties is now deemed to be cost. Additions subsequent to 31 December 1998 are stated at cost. Other tangible fixed assets are stated at cost.

•  Specialised buildings

Specialised buildings comprise the large residential convent. Depreciation is provided at 2% per annum on a straight-line basis to write the buildings off over their estimated useful economic life to the charitable company.

•  Residential

Residential buildings are those designed as, and used wholly or mainly for, private residential accommodation. Such buildings are not depreciated. Their value and condition are reviewed annually by the trustees, who are satisfied that their residual value is not materially less than their book value. The charitable company’s only residential property was disposed of during the year.

•  Improvements to residential buildings

Improvements to residential buildings are depreciated over the expected life of the improvement which, depending on its nature, will vary between 10 and 20 years. No depreciation is charged on improvements until they are complete.

•  Furniture, fixtures, plant and equipment

• Expenditure on the purchase and replacement of furniture, plant and equipment is capitalised and depreciated over a five year period, based on the estimated useful life of the asset, on a straight line basis. Items classified as fixtures or plant are capitalised and depreciated over a fifteen year period on a straight line basis, in order to write the assets off over their estimated useful life.

•  Motor vehicles

• Motor vehicles are capitalised and depreciated over a four-year period, on a straight line basis, in order to write off the cost of each vehicle over its estimated useful life.

Investments

Listed investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date using the closing quoted market price.

The charity does not acquire put options, derivatives or other complex financial instruments.

As noted above the main form of financial risk faced by the charity is that of volatility in equity markets and investment markets due to wider economic conditions, the attitude of investors to investment risk, and changes in sentiment concerning equities and within particular sectors or sub sectors.

Providence Marian Company 27

Principal accounting policies 31 December 2021

Investments (continued)

Realised gains (or losses) on investment assets are calculated as the difference between disposal proceeds and their opening carrying value or their purchase value is acquired subsequent to the first day of the financial year. Unrealised gains and losses are calculated as the difference between the fair value at the year end and their carrying value at that date. Realised and unrealised investment gains (or losses) are combined in the statement of financial activities and are credited (or debited) in the year in which they arise.

Debtors

Debtors are recognised at their settlement amount, less any provision for nonrecoverability. Prepayments are valued at the amount prepaid. They have been discounted to the present value of the future cash receipt where such discounting is material.

Cash at bank and in hand

Cash at bank and in hand represents such accounts and instruments that are available on demand or have a maturity of less than three months from the date of acquisition. Deposits for more than three months but less than one year have been disclosed as short term deposits. Cash placed on deposit for more than one year is disclosed as a fixed asset investment.

Creditors and provisions

Creditors and provisions are recognised when there is an obligation at the balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Creditors and provisions are recognised at the amount the charitable company anticipates it will pay to settle the debt. They have been discounted to the present value of the future cash payment where such discounting is material.

Fund structure

The funds of the charitable company are unrestricted and therefore are available for use in furtherance of the charitable company’s objectives at the discretion of the trustees. Within the total unrestricted funds of the charitable company are amounts representing tangible fixed assets and funds the trustees have designated for specific purposes. Details of these are provided in notes 14 and 15 respectively.

Services provided by members of the Congregation

For the purposes of these financial statements, no value has been placed on administrative and other services provided by the members of the Congregation.

Pensions

The charitable company offers its employees membership of a defined contribution pension scheme administered by the National Employment Savings Trust (NEST). Contributions to the scheme are debited to the statement of financial activities in the year in which they are payable to the scheme. The assets of the scheme are held by an independent corporate trustee, whose activities are governed by the National Employment Savings Trust Order 2010, made by the Secretary of State in exercise of powers confirmed under the Pensions Act 2008.

Providence Marian Company 28

Notes to the financial statements 31 December 2021

1 Income from: Donations

Income from: Donations
	2021 £	2020 £
Salaries and pensions of individual religious received under Gift Aid or Deed of Covenant General donations	62,634 2,738	74,548 2,841
	65,372	77,389

General donations include restricted donations of £1,200 (2020: £1,250) (see note 3)

2 Income from: Investments and interest receivable

Income from: Investments and interest receivable
	2021 £	2020 £
Income from listed investments . UK fixed interest stocks . Overseas fixed interest stocks . UK equities . Overseas equities . UK unitised funds . Overseas unitised funds Interest receivable . Interest on money held by investment managers . Bank interest receivable	48,489 6,890 143,035 60,565 62,315 74,315	36,046 18,714 118,631 64,621 61,594 54,717
	395,609 — 79	354,323 321 6,399
	395,688	361,043

3 Expenditure on: Grants and donations

The charitable company makes grants and donations, principally in support of the overseas work of the Sisters of Providence and of the Immaculate Conception and other causes, which further the Christian faith and alleviate poverty.

Generalate and overseas provinces of the Sisters of Providence and of the Immaculate Conception . In support of the Congregation’s overseas work in South America and the Caribbean . In support of the Congregation’s overseas work in the Congo . In support of the Congregation’s overseas work generally Financing cost – Unwinding of discount factor on donations committed Aid to the Church in Need Other grants and donations	2021 £	2020 £
	3,088,800 1,300 640,000 4,900 780 4,766	839,000 1,250 — 12,300 1,240 5,666
	3,740,546	859,456

The donation of £1,200 (2020: £1,250) to support the Congregation’s overseas work in the Congo is financed from a restricted donation received in the year.

Two of the charitable company’s trustees (Sister Marthe Dachet and Sister Genevieve Defrenne) are members of the General Council of the Congregation and one other trustee, Sister Marie-Jose Herbeuval, is the General Treasurer of the Congregation. Those trustees withdraw from discussions concerning the awarding of donations to both the Generalate of the Congregation and to the wider Congregation.

Providence Marian Company 29

Notes to the financial statements 31 December 2021

3 Expenditure on: Grants and donations (continued)

Further details of the donations payable to the Congregation’s Generalate are shown in notes 12 and 13 to the financial statements.

Other grants and donations include a donation of £2,400 (2020 - £2,400) to a former member of the Congregation to supplement her living expenses. The charitable company has agreed to supplement this former member’s living expenses for the immediate future given her financial position. It is expected that this financial support may, in future, amount to £3,000 per annum but no specific period is known over which it may be payable. Any future commitment will not be material to these financial statements.

4 Expenditure on: Support of members of the Congregation and their ministry

	2021 £	2020 £
Staff wages (note 7) Premises Sisters’ personal expenses Education, training and spiritual renewal Other expenses Governance costs (note 5)	89,079 53,093 33,181 1,365 9,290 28,552	83,804 54,404 38,030 1,025 7,445 24,420
	214,560	209,128

5 Governance costs

Governance costs
	2021 £	2020 £
Legal andprofessional fees	28,552	24,420

6 Net expenditure for the year before net investment gains

This is stated after charging:

	2021 £	2020 £
Staff costs (note 7) Auditor’s remuneration . Statutory audit services .. Current year .. Previous year . Other accountancy related services . Company secretarial services . Other advice re NEST pension scheme . Taxation related services Depreciation	89,079 13,600 500 10,600 360 1,512 1,980 30,808	83,804 12,700 500 10,560 660 — — 32,867

Providence Marian Company 30

Notes to the financial statements 31 December 2021

7 Staff costs, key management and trustees’ remuneration

Staff costs, key management and trustees’ remuneration
	2021 £	2020 £
Staff costs during the year were as follows: Wages and salaries Social security costs Pension contributions	85,222 2,236 1,621	80,663 1,690 1,451
	89,079	83,804

No employee earned £60,000 per annum or more (including taxable benefits) during the year (2020 – none).

All staff costs relate to support of members of the Congregation.

There were 5 part time employees during the year (2020 – five).

Key management

The trustees consider that they comprise the key management of the charitable company in charge of directing and controlling, running and operating the charitable company on a day to day basis.

All trustees are members of the Congregation and whilst the living and personal expenses in respect to those resident in England are borne by the charitable company, none of the trustees receive any remuneration or reimbursement of expenses in connection with their duties as trustees or work as key management (2020 - £nil).

As members of the Congregation, none of the trustees have resources of their own as all earnings, pensions and other income have been donated to the charitable company under a Gift Aid compliant Deed of Covenant. During the year, the total amount donated by the trustees to the charitable company was £60,980 (2020 - £54,050).

8 Taxation

Providence Marian Company is a registered charity and, therefore, is not liable to income tax or corporation tax on income on gains derived from its charitable activities, as they fall within the various exemptions available to registered charities.

Providence Marian Company 31

Notes to the financial statements 31 December 2021

9 Tangible fixed assets

	Residential buildings (including improvements) £	Specialised buildings £	Furniture, fixtures plant and equipment £	Motor vehicles £	Total £
Cost or valuation At 1 January 2021 Disposals At 31 December 2021 Cost Deemed cost: 1997 and 1998 valuation At 31 December 2021 Depreciation At 1 January 2021 Charge for the period At 31 December 2021 Net book values At 31 December 2021 At 31 December 2020	358,239 (358,239)	1,011,817 —	96,847 —	24,699 —	1,491,602 (358,239)
	—	1,011,817	96,847	24,699	1,133,363
	— —	561,817 450,000	96,847 —	24,699 —	683,363 450,000
	—	1,011,817	96,847	24,699	1,133,363
	— —	141,652 20,236	43,336 6,456	20,583 4,116	205,571 30,808
	—	161,888	49,792	24,699	236,379
	—	849,929	47,055	—	896,984
	358,239	870,165	53,511	4,116	1,286,031

All land and buildings, both non-specialised and specialised, are freehold.

As permitted by FRS 102, with effect from 1 January 2014 the value assigned to land and buildings owned as at that date is now deemed to be cost. Additions subsequent to 1 January 2014 are stated at cost. Other tangible fixed assets are stated at cost.

It is likely that there are material differences between the open market values of the charitable company’s land and buildings and their book values. The amount of such differences cannot be ascertained without incurring significant costs, which, in the opinion of trustees, is not justified in terms of the benefit to the users of the financial statements.

Providence Marian Company 32

Notes to the financial statements 31 December 2021

10 Investments

Investments
	2021 £	2020 £
Listed investments Fair (market) value at 1 January 2021 Additions at cost Disposals at book value (see below) Net unrealised investment gains Fair (market) value at 31 December 2021 Cash held by investment managers Bank deposit accounts Cost of listed investments at 31 December 2021	19,274,299 5,452,892 (4,834,375) 1,770,651	18,400,269 3,013,741 (3,345,059) 1,205,348
	21,663,467 510,700 —	19,274,299 747,904 2,189,259
	22,174,167	22,211,462
	16,233,154	14,836,059

Disposals at book value included above are made up of the following:

	2021 £	2020 £
Proceeds Realised (gains) losses Disposals at book value	4,961,691 (127,316)	3,045,718 299,341
	4,834,375	3,345,059

Listed investments held at 31 December 2021 comprised the following:

	2021 £	2020 £
UK fixed Interest stocks and bonds Overseas fixed interest stocks and bonds UK equities Overseas equities UK unitised funds Overseas unitised funds	2,166,852 746,467 5,813,104 5,271,991 2,795,343 4,869,710	1,705,119 717,682 5,319,162 4,482,523 2,852,676 4,197,137
	21,663,467	19,274,299

At 31 December 2021, no individual listed investment holdings were deemed material when compared with the overall portfolio valuation at that date.

All listed investments were dealt in on a recognised stock exchange.

The bank deposit accounts represented monies held by Barclays Bank plc for the long term and which were considered part of the charitable company’s fixed asset investments.

Providence Marian Company 33

Notes to the financial statements 31 December 2021

11 Debtors

11	Debtors
12 13		2021 £ 9,017 1,380 10,397	2020 £
	Interest and investment income receivable Other debtors and prepayments		6,757 64,921
			71,678
	Creditors: amounts falling due within one year	2021 £ 1,485,400 7,573 1,823 53,414 1,548,210	2020 £
	Donation payable to the Generalate of the Congregation (note 13) Monies administered on behalf of individual religious Social security and other taxes Accruals		995,100 — 1,679 47,731
			1,044,510
	Creditors: amounts falling due after one year	2021 £ 5,391,750	2020 £
	Donationspayable		3,788,350

During 2016, the trustees committed to donate £750,000 per annum to the Generalate of the Congregation for each of the years 2017 to 2021 inclusive. A liability was recognised, discounted to present value using a discount rate of 0.5% per annum, the rate of interest earned by the charitable company on its bank deposit accounts. During the year ended 2019, the commitment was increased to £1,000,000 and extended to each of the years 2020 to 2024. In the current year, the charity increased and extended its commitment again to donating £1,500,000 per annum for each of the years 2022 to 2026 inclusive. The liability at 31 December 2021 in notes 12 and 13 represents those donations which the trustees have committed to paying in the years 2022 to 2026 (2020: from 2021 to 2024) inclusive. The liability has been recognised discounted to present value using a discount rate of 4% (2020 - 2.1%) per annum, the rate of return expected to be earned by the charitable company on its investments and cash holdings. The notional interest is debited to the statement of financial activities as the discount is “unwound”.

The donations payable are as follows:

Creditor payable as follows: Within one year (note 12) After more than one year . Between one and two years . Between two and five years	Discounted amounts	Discounted amounts	Gross amounts	Gross amounts
	2021 £	2020 £	2021 £	2020 £
	1,485,400 1,428,250 3,963,500 5,391,750	995,100 975,500 2,812,850 3,788,350	1,500,000 1,500,000 4,500,000 6,000,000	1,000,000
				1,000,000 3,000,000
				4,000,000
	6,877,150	4,783,450	7,500,000	5,000,000

Providence Marian Company 34

Notes to the financial statements 31 December 2021

13 Creditors: amounts falling due after one year (continued)

The movement in the creditor for the donations is as follows:

	2021 £	2020 £
Total donations payable at 1 January 2021 Donations committed during the year Donations paid during the year Total donationspayable at 31 December 2021	4,783,450 3,088,800 (995,100)	4,932,150 839,000 (987,700)
	6,877,150	4,783,450

14 Tangible fixed assets fund

Tangible fixed assets fund
	2021 £	2020 £ 1,318,898 (32,867) 1,286,031
At 1 January 2021 Net movement in year At 31 December 2021	1,286,031 (389,047)
	896,984

The tangible fixed assets fund represents the net book value of the charitable company’s tangible fixed assets. A decision was made to separate this fund from the general fund and other designated funds of the charitable company in recognition of the fact that the tangible fixed assets are essential to the day-to-day work of the charitable company and as such their value should not be regarded as funds that would be realisable with ease, in order to meet future contingencies.

15 Designated funds

The income funds of the charitable company included the following designated funds set aside out of unrestricted funds by the trustees for specific purposes:

		2021			2020
	Sisters’ retirement fund £	Financing and Congr- egational fund £	Total £	Sisters’ retirement fund £	Financing and Congr- egational fund £	Total £
At 1 January 2021 Designated in the year Released/utilised in the year At 31 December 2021	1,600,000 — (100,000)	15,768,950 1,628,400 (3,088,800)	17,368,950 1,628,400 (3,188,800)	2,100,000 — (500,000)	15,725,050 882,900 (839,000)	17,825,050 882,900 (1,339,000)
	1,500,000	14,308,550	15,808,550	1,600,000	15,768,950	17,368,950

Sisters’ retirement fund

The sisters’ retirement fund comprises money which the trustees have set aside in order to provide for the sisters in their retirement. The amount of the fund has been calculated using actuarial principles.

Financing and Congregational fund

This fund has been established to finance grants and donations including contributions to the Congregation’s work overseas.

Providence Marian Company 35

Notes to the financial statements 31 December 2021

16 Analysis of net assets between funds

	General fund £	Tangible fixed assets fund £	Sisters’ retirement fund £	Financing and Congrega- tional fund £	Total 2021 £
Fund balances at 31 December 2021 are represented by: Tangible fixed assets Investments Net current assets (liabilities) Creditors: amounts falling due after one year	— — 2,101,734 —	896,984 — — —	— 1,500,000 — —	— 20,674,167 (973,867) (5,391,750)	896,984 22,174,167 1,127,867 (5,391,750)
	2,101,734	896,984	1,500,000	14,308,550	18,807,268
	General fund £	Tangible fixed assets fund £	Sisters’ retirement fund £	Financing and Congrega- tional fund £	Total 2020 £
Fund balances at 31 December 2020 are represented by: Tangible fixed assets Investments Net current assets (liabilities) Creditors: amounts falling due after one year	— 59,062 1,594,582 —	1,286,031 — — —	— 1,600,000 — —	— 20,552,400 (995,100) (3,788,350)	1,286,031 22,211,462 599,482 (3,788,350)
	1,653,644	1,286,031	1,600,000	15,768,950	20,308,625
				2021 £ 5,430,313 4,438,240 (778,578) 1,770,651 5,430,313	2020 £ 4,438,240 3,543,665 (310,773) 1,205,348 4,438,240
Total unrealised gains on investments included above Reconciliation of movements in unrealised gains Unrealised gains at 1 January 2021 Less: in respect to disposals in year Add: net gains arising on revaluation in the year Unrealisedgains at 31 December 2021

17 Ultimate control

The charitable company was controlled throughout the period by the Congregation of the Sisters of Providence and of the Immaculate Conception by virtue of the fact that the members of the charitable company are members of the Congregation. The trustees are nominated by the Regional Superior of the Congregation before being elected by the members at the annual general meeting. The Regional Superior and the Bursar General of the Congregation are ex-officio trustees.

Providence Marian Company 36

Notes to the financial statements 31 December 2021

18 Related party transactions

Four of the charitable company’s trustees are members of the General Council of the Congregation. The charitable company makes donations to both the Generalate of the Congregation and to the wider Congregation to support its overseas work (see note 3). Those trustees who are members of the General Council withdraw from discussions concerning the awarding of such donations.

The amounts due to the Generalate of the Congregation are shown in notes 12 and 13.

Amounts donated to the charitable company by its trustees are disclosed in note 7.

During the year, one of the trustees, Sister Margaret Cloghessy, inherited £487,473 from the estate of a relative. She donated £440,000 to the Generalate of the Congregation and £40,000 to charities in Ireland of her choice. The balance remaining of £7,473 is included within creditors in note 12 as monies administered on behalf of individual religious. There were no such transactions in the year ended 31 December 2020.

There were no other related party transactions during the year (2020 – none).

19 Liability of the members

In the event of the charitable company being wound up during the period of membership, or within the year following, company members are required to contribute an amount not exceeding £1.

Providence Marian Company 37