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2021-12-31-accounts

AUGUSTINIANS OF THE ASSUMPTION (A Company Limited by Guarantee)

REPORT AND FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2021

Charity No: 1143432 Registered Company No: 07690148

Azets Audit Services Greytown House 221-227 High Street Orpington Kent BR6 0NZ

AUGUSTINIANS OF THE ASSUMPTION (Company Limited by Guarantee)

CONTENTS

Page
Legal and Administration Details 1
Report of the Trustees 2
Independent Auditors Report 7
Statement of Financial Activities 11
Balance Sheet 12
Statement of Cash Flows 13
Notes to the Financial Statements 134

AUGUSTINIANS OF THE ASSUMPTION (Company Limited by Guarantee)

REFERENCE AND ADMINISTRATIVE DETAILS

Trustees Fr R O’Brien
Br D Remiot
Fr J Kasereka
Br M Yacoub
Fr E Samson
Fr V Jermakovics
Br Q Tran
Company Secretary Br D Remiot
Charity Reference Number 1143432
Company Reference Number 07690148
Registered Office Assumption Priory
Victoria Park Square
London
E2 9PB
Independent Auditor Azets Audit Services
Greytown House
221-227 High Street
Orpington
Kent
BR6 0NZ
Investment Advisors Pentagram Wealth Management
1 Place du Grand Mezel
CP 3561
CH- 1211 Geneve 3
Switzerland
Investec Wealth and Investment Ltd
2 Gresham Street
London
EC2V 7QN
Solicitor Stone King Sewell
13 Queen Square
Bath
BA1 2HJ

1

AUGUSTINIANS OF THE ASSUMPTION (Company Limited by Guarantee)

REPORT OF THE TRUSTEES

The Trustees, who are also directors for the purposes of company law, present their report and the financial statements of the company for the year ended 31 December 2021.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the charity’s trust deed, the Charities Act 2011 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) published on 16 July 2014 and updated by Bulletin 1 and 2.

Objectives, aims and Activities

The objects and aims of the Charity are the advancement of the public benefit anywhere in the world of the religious and other charitable work of the Congregation of Roman Catholic Priests and Brothers known as the Augustinians of the Assumption as the Trustees with the approval of the Superior General of the Congregation shall from time to time think fit.

The charity has been trying, since registration, to build up an investment portfolio to aid in the performance of its objectives. While continuing to do so, the charity is now able to fund each years various projects of the Augustinians of the Assumption in the UK and throughout the world.

Statement of Public Benefit

The objectives and activities and achievement and performance sections of this report clearly set out the activities which the charity undertakes for the public benefit. The Trustees confirm that they have complied with the duty in Section 4 of the Charities Act 2011 to have due regard to public benefit guidance published by the Commission in detailing the activities undertaken by the charity.

Strategic report

Achievements and Performance and Plans for Future Periods

The year 2021 continued to be greatly affected by the pandemic although the situation began to ease towards the end of the year. Meetings were largely held via zoom or Microsoft Teams.

The Bethnal Green community consists of Fr Justin Kasereka Mwendakulala (Superior, Parish Priest). Fr Joseph Tran Quoc Cuong (Bursar) and Fr Antigon Bahati. Fr Paul Tran Minh Hai join the community for part of the year before moving on. Joseph Cuong was ordained Priest at the end of October. At the same celebration Br Adams Tatsidjodoung, newly arrived in the Hitchin Community was ordained a Deacon. Bishop Nicholas Hudson the Area Bishop for East London of the Westminster Diocese presided the ceremonies.

The Hitchin community now consists of Thomas O’Brien (Superior, Parish Priest) Euloge Kasine Katsuva (Bursar), Andrew O’Dell (retired priest) and Deacon Adams Tatsidjodoung who joined the community in September. The parish continues to maintain its Live Simply Policy. Since its boilers failed completely it was replaced with a boiler of much higher efficiency to reduce our energy usage. Many of the services and fund-raising events were unable to take place but the parish made donations to charities in need wherever possible. Fed-Up Warm-Up grew in the service it provided delivering food to both homeless people and families in need throughout the year. Towards the end of the year it opened a project My Pantry in which people make a donation of £4 and have access to £5 - £30 of food as well as fresh food that has reached its sell-by-date, donated by local retailers. The [project promotes the dignity of those who benefit from its service and service-users are also able help to help run the project. The work of Justice & Peace focused heavily on COP 26, especially because the Government were the hosts of Cop 26. Given the climate emergency we now face the outcomes of COP 26 did not make the hope for decisions although it has stimulated a greater concern of people to live more simply not to waste and reuse and recycle throughout this country. The ecumenical work among Churches Together in Hitchin was also interrupted but Richard O’Brien was elected Chair of the CTH Committee for 2022 with the hope that more services will take place in common in 2022. The interfaith work has also made progress with a project to fill a field with trees in Little Hadham East Hertfordshire. This began in September and is continuing to progress albeit slowly.

Meetings between the communities in Bethnal Green and Hitchin were interrupted but began again at the end of the Year. The hope is that we will continue to meet monthly and reflect together on our mission and service in line with the projects of the Province and the Congregation.

2

AUGUSTINIANS OF THE ASSUMPTION (Company Limited by Guarantee)

REPORT OF THE TRUSTEES

Achievements and Performance and Plans for Future Periods (continued) Emmanuel House Charity in Nottingham continued to offer support in difficult circumstance through the year. In its report it stated:

Our activities and achievements

The Covid-19 pandemic created the most remarkable interruption in our society in modern times in which the only certainty was uncertainty and the uncertainty as to how long uncertainty would last. It was only possible to put in place a framework that enabled services to be available day to day. Our success was the degree to which services continued to be available, constant and consistent, underpinned by a comprehensive risk assessment which served the organisation well through the year. Staff adapted, were flexible and imaginative in their approach to service delivery. We were fortunate in accessing additional funding that helped acquire communication resources for vulnerable adults such as mobile phones and laptops. Staff delivered resources and food directly to the doors of people who needed them. These were invaluable. Working protocols changed as staff worked from home and other locations. The running of the provision in a hotel was integral to the offer in the city to rough sleepers. By March 2021 teams had successfully continued providing their assigned services and achieving positive outcomes supported by the wider community who continued to make donations to the charity in various forms.

Emmanuel House also supports the city Night Shelter which due to government policy users was moved to local hotels.

Comparison of figures for accommodation in the hotel and previous shelter provision during the 15 months from April 2020 to June 2021 with provision at the Winter/Night Shelters during the 12 months from April 2019 to March 2020.

The sheer volume of work was vastly greater in the hotel compared with the shelter. The number of guests accommodated per week increased by 50%. Secondly, guests on average stayed nearly 50% longer in the hotel than in the shelter. Thirdly, the greater number of women guests is worth noting, reflecting the greater security afforded by single room accommodation.

Regarding our Charlton Properties, dialogue with the Roman Catholic Archdiocese of Southwark to regularize the situation of the former school and the parish buildings (Church, Presbytery and Parish Hall) were resumed towards the end of 2021 with some progress being made and is ongoing.

Knowing that the Archdiocese unilaterally commissioned a survey in 2020, our Charity commissioned a new one in 2021, conducted by Walter Winn Chartered Surveyors. The report concluded that “Minimal planned maintenance and repair has been carried out to this building in the last 10 – 20 years or longer. I cannot remember the last time I reported on a building with holes to the roof and birds roosting in the roof space. There are many issues to address.” Yet, the Archdiocese was committed to “keep the Property and all fixtures fittings and effects therein in good and tenantable repair and condition” according to the license signed in 1990.

3

AUGUSTINIANS OF THE ASSUMPTION (Company Limited by Guarantee)

REPORT OF THE TRUSTEES

In December 2021, after organising an online meeting with the Archdiocesan representatives, we sent and official letter to the Archdiocese to confirm that we are keen to reach a conclusion regarding our Charlton property, and that we remain naturally in favour of keeping Our Lady of Grace church open to worship, if that is the wish of the Archdiocese. In this letter, we made a firm proposal:

  1. The Charitable Company offers to freely transfer the ownership of the Church building and plot to the Archdiocese, as a donation.

  2. The Charitable Company will recover control and management of the Presbytery and Church Hall as soon as possible.

We really hope that this proposal will allow the Archdiocese and our Charitable company to settle this issue that has been pending for a number of years and finally move forward together to conclusion. Some details are now being discussed, and we hope that the Archdiocese will soon inform us about its final decision.

During the year 2021, we continued to manage the old school site according to the Master Agreement signed in March 2020 with Dex Property Management Limited. The number of guardians varied between 10 (January 2021) and 8 –December 2021). The costs incurred by the Charitable Company to pay the utilities bills are larger than the contribution paid by Dex Property Management. The trusteed accept this situation as they see it as an expense towards social assistance.

Regarding St Elizabeth Catholic Primary School in Bethnal Green, our solicitor Stone King is still trying to move the freehold titles LN37243, LN101733 and LN113440 from the old trust to the new one, Augustinians of the Assumption Charitable Company. The only pending matter is due to presence of some Education-related restrictions on these titles, for an unknown reason. A contact is made with the Department for Education in order to check if the transfer can be free of any ongoing restriction. We are still waiting for reply.

At long last the name of the bank account for the Charity has been changed to Augustinians of the Assumption. The authorised signatories will have to be confirmed in the new year.

We are deeply grateful for the invaluable support of our accountants and auditors, Azets Audit Services, formerly named Wilkins Kennedy. We also thank our Investment Manager, Investec, for the careful and fruitful service they give to the investments of the charity. Both were represented at our AGM this year making themselves available to answer questions and keeping us well informed. We are also truly grateful to Stone King LLP for their sterling work.

At our AGM in April 2022, we will outline and establish our plans for 2022 and beyond.

Financial Review

Income totalling £357,990 (2020: £215,548) included £304,907 (2020: £207,168) by way of investment income received in the period. Expenditure totalling £512,577 (2020: £353,930) was incurred during the period. After investment and foreign exchange movements this resulted in a surplus for the period of £313,995 (2020: £757,011). Details of income and expenditure are set out in the financial statements.

Reserves Policy

It is the policy of the Charity to maintain unrestricted funds, which are the free reserves of the Charity to provide sufficient funds to meet future obligations. The charity has unrestricted funds as at 31 December 2021 of £20,850,073 (2020: £20,536,078). Included within unrestricted funds are £20,815,337 (2020: £20,457,129) of designated funds, this mainly represents investments which are being held by the charity to generate income. The remaining unrestricted funds are being held to support various projects as detailed above.

Risk Management

The Trustees have examined the major strategic, business and operational risks which the Charity faces and confirm that systems have been established to enable regular reports to be produced so that the necessary steps can be taken to lessen these risks.

4

AUGUSTINIANS OF THE ASSUMPTION (Company Limited by Guarantee)

REPORT OF THE TRUSTEES

Investment Policy

The Trustees intend that the real value of their assets be maintained and enhanced over the long term by investment in a portfolio comprised of equities, fixed income stocks and cash. A detailed and formal investment policy was written and approved by the Board of Trustees at the meeting held on 12 November 2015. This investment policy was reviewed in 2020 and an updated version was approved at the Board of Trustees meeting held on 16[th ] March 2020.

In order to meet these objectives the Trustees have appointed Pentagram Wealth Management and Investec Wealth and Investment Limited to advise on suitable investments on a discretionary basis or advisory basis (subfund “Dedicated A” and sub-fund “Dedicated D”). They have selected a balanced investment objective with medium risk. The Trustees require all the custodian banks and management companies they use to provide them with monthly or quarterly reports.

The Trustees will regularly consider whether there is a need to revise this policy and keep under review the arrangements under which Pentagram Wealth Management and Investec Wealth and Investment Limited act as their managers.

The Trustees will seek to reduce the risks inherent in financial investments through a wide diversification among the different asset classes. Within any asset class, the Trustees will seek to diversify investments so that any line does not represent more than 5% of the portfolio. The trustees consider that investing in mutual funds is another way to diversify the risks but recognise that it has the disadvantage of adding extra costs. Diversification also means that investments will be in various sectors as well as geographical areas. The trustees will seek to ensure that all investments will broadly comply with Catholic moral principles eliminating areas of economic activity and companies whose work appears to violate the Catholic moral principles e.g. cigarettes and weapons.

Structure, Governance and Management Constitution

The charity is a company limited by guarantee and is governed by its Memorandum and Articles of Association dated 1 July 2011. The company was incorporated on 1 July 2011 and registered as a charity on 1 August 2011.

Trustees

The Trustees, who are also directors for the purposes of the Companies Act 2006, who served during the period were:

Fr R O’Brien Br D Remiot Fr J Kasereka Br M Yacoub Fr E Samson Fr V Jermakovics Br Q Tran

No Trustees had any contact or arrangement of a material nature with the charitable company during the period under review.

The number of Trustees shall not be less than five and the majority must be members of the Congregation.

One of the Trustees must retire at each AGM; those longest in office retiring first and the choice between any of equal service being made by drawing lots. A retiring Trustee shall be eligible for re-election of consecutive periods. The Trustees must hold at least two meetings each year.

The training and induction provided for new Trustees will depend on their existing experience. However, as all Trustees have to be a member of the Congregation, they all have a perquisite knowledge of the objectives and responsibilities of the charitable company. The Trustees have agreed to seek further training in the coming year about its roles and responsibilities, and to review its policies in order to better comply with the Charities Act 2011.

5

AUGUSTINIANS OF THE ASSUMPTION (Company Limited by Guarantee)

REPORT OF THE TRUSTEES

Statement of Trustees’ Responsibilities

The trustees (who are also directors of the Assumption for the purposes of company law) are responsible for preparing the Trustees’ Annual Report (including the Strategic 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 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:

The trustees are responsible for keeping adequate 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.

In so far as the trustees are aware:

Auditors

A resolution to reappoint Azets Audit Services as the charitable company's auditors will be proposed at the Annual General Meeting.

By Order of the Board

Br D Remiot Trustee

Br M Yacoub Trustee

Date:9 May 2022

6

AUGUSTINIANS OF THE ASSUMPTION

(Company Limited by Guarantee)

INDEPENDENT AUDITORS REPORT TO THE MEMBERS

Opinion

We have audited the financial statements of Augustinians of the Assumption for the year ended 31 December 2021 which comprise the Statement of Financial Activates, Balance Sheet, Statement of Cash Flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the 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 directors' 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 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 directors with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information contained within the annual report.

7

AUGUSTINIANS OF THE ASSUMPTION (Company Limited by Guarantee)

INDEPENDENT AUDITORS REPORT TO THE MEMBERS

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. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of our 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 strategic report and the trustees’ report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 and the Charities Act 2011 requires us to report to you if, in our opinion:

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.

8

AUGUSTINIANS OF THE ASSUMPTION (Company Limited by Guarantee)

INDEPENDENT AUDITORS REPORT TO THE MEMBERS

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.

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.

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.

We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework. Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

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 of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

9

AUGUSTINIANS OF THE ASSUMPTION (Company Limited by Guarantee)

INDEPENDENT AUDITORS REPORT TO THE MEMBERS

Use of our report

This report is made solely to the 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 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 company and the company's members, as a body, for our audit work, for this report, or for the opinions we have formed.

Catherine Cooper (Senior Statutory Auditor) for and on behalf of Azets Audit Services Limited Statutory Auditor Greytown House 221-227 High Street Orpington Kent BR6 0NZ

Date: 07/07/2022

10

AUGUSTINIANS OF THE ASSUMPTION

(Company Limited by Guarantee)

STATEMENT OF FINANCIAL ACTIVITIES

INCLUDING INCOME AND EXPENDITURE ACCOUNT

YEAR ENDED 31 DECEMBER 2021

2021 2020
Note
Unrestricted Unrestricted
£ £
Income from:
Investment income – dividends 304,907 207,168
Donations 42,024 -
Other income 11,059 8,380
______ ______
Total income 357,990 215,548
______ ______
Expenditure on:
Investment management costs 141,528 104,685
Charitable activities 3,4 371,049 249,245
______ ______
Total expenditure 512,577 353,930
______ ______
Net income and net movement in funds
before gains and losses on investments		 (154,587) (138,382)
Net gains/(losses) on investments 7 713,397 1,394,965
______ ______
Net income / (expenditure) 558,810 1,256,583
Other recognised gains and losses
Gains/(losses) on foreign exchange (244,815) (499,572)
______ ______
Net movement in funds for the year 313,995 757,011
______ ______
Total funds at 1 January 2021 20,536,078 19,779,067
______ ______
Total funds at 31 December 2021 20,850,073
______		 20,536,078
______

All movements are unrestricted funds.

All transactions are derived from continuing activities.

All recognised gains and losses are included in the Statement of Financial Activities.

11

AUGUSTINIANS OF THE ASSUMPTION (Company Limited by Guarantee)

BALANCE SHEET

AS AT 31 DECEMBER 2021

REGISTERED COMPANY NUMBER: 07690148

2021
Notes
£
Fixed assets
Tangible assets
6
3,330,800
Investments
7
17,484,537
__
Current assets
Debtors
8
8,117
Cash at bank and in hand
55,722
__
63,839
Creditors:Amounts falling
due within one year
Accruals
(13,002)
Other creditors
(16,101)
__
(29,103)
__
Net current assets

Net assets

FUNDS
General Funds
10
Designated funds
9
 2021
Notes
£
Fixed assets
Tangible assets
6
3,330,800
Investments
7
17,484,537
__
Current assets
Debtors
8
8,117
Cash at bank and in hand
55,722
__
63,839
Creditors:Amounts falling
due within one year
Accruals
(13,002)
Other creditors
(16,101)
__
(29,103)
__
Net current assets

Net assets

FUNDS
General Funds
10
Designated funds
9
2020
£
£
3,368,775
17,088,355
20,815,337
__
19,648
103,051
__
122,699
(17,966)
(25,785)
__
(43,751)
__
34,736
__

20,850,073
__

34,736
20,815,337
____

20,850,073
___
2020
£
£
3,368,775
17,088,355
20,815,337
__
19,648
103,051
__
122,699
(17,966)
(25,785)
__
(43,751)
__
34,736
__

20,850,073
__

34,736
20,815,337
____

20,850,073
___
£
20,457,130
78,948
____
20,536,078


__
78,948
20,457,130
__
20,536,078
___

Approved by the Board of Trustees on 9 May 2022 and signed on their behalf by:

Br D Remiot Trustee

Br M Yacoub Trustee

12

AUGUSTINIANS OF THE ASSUMPTION (Company Limited by Guarantee)

STATEMENT OF CASH FLOWS

YEAR ENDED 31 DECEMBER 2021

Note
Cash flow from operating activities
13
Net cash flow from operating activities
Cash flow from investing activities
Payments to acquire investments
Bank Interest
Receipts from sales of investments
Net cash flow from investing activities
Net increase / (decrease) in cash and cash
equivalents
Cash and cash equivalents at 1 January 2021
Cash and cash equivalents at 31 December 2021
Cash and cash equivalents consists of:
Cash at bank and in hand
Cash and cash equivalents at 31 December 2021		 2021
£
(35,798)
__
(35,798)
__
(10,748,975)
30
10,737,444
__
(11,531)
__
(47,329)
103,051
__
55,722
____
55,722
__
55,722
 2020
£
(3,118)
__
(3,118)
__
(8,897,670)
-
8,844,173
__
(53,497)
__
(56,615)
159,666
__
103,051
____
103,051
__
103,051

13

AUGUSTINIANS OF THE ASSUMPTION (Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 DECEMBER 2021

1. ACCOUNTING POLICIES

1.1 Basis of Accounting and Preparation

Augustinians of the Assumption is governed under it Memorandum and articles of association dated 01/07/2011. The address of the principal office is given in the information on page 1 of these financial statements. The nature of the charity’s operations and principal activities are set out on page 2.

The charity constitutes a public benefit entity as defined by FRS 102. The financial statements have been prepared in accordance with 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), the Charities Act 2011 and UK Generally Accepted Practice as it applies from 1 January 2015 updated for bulletin 1.

The financial statements are prepared on a going concern basis under the historical cost convention, modified to include certain items at fair value. The financial statements are prepared in sterling which is the functional currency of the charity.

The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

1.2 Income

Voluntary income is received by way of donations and is included in full in the Statement of Financial Activities in the year which it is receivable.

Other income is recognised in full in the Statement of Financial Activities in the year in which it is receivable.

Investment income is earned through holding assets for investment purposes such as shares. It includes dividends and interest. Where it is not practicable to identify investment management costs incurred within a scheme with reasonable accuracy the investment income is reported net of these costs. It is included when the amount can be measured reliably. Interest income is recognised using the effective interest method and dividend income is recognised as the charity’s right to receive payment is established. During the year Investec dividend income was no longer received by the charity and instead was directly reinvested into other investments.

1.3 Expenditure

All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Expenditure is recognised where there is a legal or constructive obligation to make payments to third parties, it is probable that the settlement will be required and the amount of the obligation can be measured reliably. It is categorised under the following headings:

Irrecoverable VAT is charged as an expense against the activity for which expenditure arose.

1.4 Support costs allocation

Support costs are those that assist the work of the charity but do not directly represent charitable activities and include office costs, governance costs, administrative payroll costs. They are incurred directly in support of expenditure on the objects of the charity and include project management carried out at Headquarters.. .

All support costs are allocated to charitable expenditure.

14

AUGUSTINIANS OF THE ASSUMPTION (Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 DECEMBER 2021

1. ACCOUNTING POLICIES (continued)

1.5 Funds Unrestricted funds are those funds which can be used at the discretion of the Trustees in accordance with the charitable objectives.

1.6 Foreign currency Foreign currency transactions are initially recognised by applying to the foreign currency amount the spot exchange rate between the functional currency and the foreign currency at the date of the transaction.

Monetary assets and liabilities denominated in a foreign currency at the balance sheet date are translated using the closing rate.

1.7 Tangible Fixed Assets and Depreciation
Fixed assets for charity use are capitalised at cost, where acquired, or market value as determined by the
Trustees where donated. They are stated in the financial statements at cost or original value less
depreciation.
Depreciation is calculated so as to write off the cost of an asset, less its estimated residual value, over the
useful economic life of that asset as follows:
Freehold property
- 1% per annum reducing balance basis
Equipment
- 25% per annum reducing balance basis
Motor Vehicles
- over 3 years
A review for impairment of a fixed asset is carried out if events or changes in circumstances indicate that
the carrying value of any fixed asset may not be recoverable. Shortfalls between the carrying value of fixed
assets and their recoverable amounts are recognised as impairments. Impairment losses are recognised
in the Statement of Financial Activities.
1.8 Fixed Asset Investments
Investments are recognised initially at their transaction value which is normally the transaction price less
transaction costs. Subsequently, they are measured at fair value with changes recognised in ‘net gains /
(losses) on investments’ in the SoFA if the shares are publicly traded or their fair value can otherwise be
measured reliably.

1.9 Debtors and creditors receivable / payable within one year Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in expenditure. 1.10 Taxation The company is a registered charity and is therefore entitled to the exemptions from corporation tax afforded by section 505 of the Income and Corporation Taxes Act 1988. Accordingly, there is no corporation tax charge in these financial statements.

1.11 Going Concern The financial statements have been prepared on a going concern basis as the trustees believe that no material uncertainties exist. The trustees have considered the level of funds held and the expected level of income and expenditure for 12 months from authorising these financial statements. The budgeted income and expenditure is sufficient with the level of reserves for the charity to be able to continue as a going concern.

15

AUGUSTINIANS OF THE ASSUMPTION (Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 DECEMBER 2021

1. ACCOUNTING POLICIES (continued)

1.12 Judgements and key sources of estimation uncertainty

Accounting estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

The following judgements (apart from those involving estimates) have been made in the process of applying the above accounting policies that have had the most significant effect on amounts recognised in the financial statements:

Useful economic lives of tangible assets

The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. See note 6 for the carrying amount of the property plant and equipment, and note 1.7 for the useful economic lives for each class of assets.

There are no key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.

2. EMPLOYEES

There were no employees of the Charity.

None of the Trustees received any remuneration or reimbursed expenses during the period under review.

3. CHARITABLE ACTIVITIES

Province of Europe
Africa
Province
of
Europe
-
Argentina
Priory and accommodation
Assistance with Assumption
International Formation
Charlton Property		 Direct Costs
£
Support Costs
£
-
-
29,821
-
98,962
-
-
48,800
163,260
-
15,029
15,177
___
_____
307,072
63,977

 Total
2021
-
29,821
98,962
48,800
163,260
30,206
_____
371,049
 Total
2020
33,617
21,980
-
78,074
79,222
36,452
_____
249,245

16

AUGUSTINIANS OF THE ASSUMPTION

(Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 DECEMBER 2021

4. SUPPORT COSTS

Insurance
Depreciation
Bank charges
Management expenses
Travel and Motor expenses
Other support costs
Governance costs
5.
GOVERNANCE COSTS
Audit fees
Bookkeeping
Legal and professional
6.
TANGIBLE FIXED ASSETS
Cost or Valuation
At 1 January 2021
At 31 December 2021
Depreciation
At 1 January 2021
Charge for the year
At 31 December 2021
Net Book Value
At 31 December 2021
At 31 December 2020		 Freehold
Properties
Equipment
£
£
4,164,303
17,054
__
__
4,164,303
17,054
__
__
799,963
16,916
33,643
35
__
__
833,606
16,951
__
__
3,330,697
103
__
__
3,364,340
138

 Freehold
Properties
Equipment
£
£
4,164,303
17,054
__
__
4,164,303
17,054
__
__
799,963
16,916
33,643
35
__
__
833,606
16,951
__
__
3,330,697
103
__
__
3,364,340
138

 ___
 2021
£
-
37,975
10
7,749
11,009
958
6,276
_
63,977
____
2021
£
12,600
1,573
(7,897)
_
6,276
____
Motor
Vehicles
£
12,891
__
12,891
__
8,594
4,297
__
12,891
__
-
__
4,297
 2020
£
160
38,326
23
6,282
7,267
774
18,144
___
70,976
_______
2020
£
13,800
1,380
2,964
__
18,144
_______
Total
£
4,194,248
_____
4,194,248
___
___
___
__
16,916
35
__
16,951
 __
825,473
37,975
__
863,448
___
103
 __
3,330,800
___
138
 __
3,368,775

17

AUGUSTINIANS OF THE ASSUMPTION (Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 DECEMBER 2021

7.
INVESTMENTS
2021
£
At 1 January 2021
17,088,355
Portfolio additions
10,748,975
Investment additions
346,901
Withdrawals
(430,773)
Disposals
(10,737,444)
Realised/Unrealised gains
713,397
Gains/(losses) on foreign exchange
(244,874)
__
At 31 December 2021
17,484,537
__
Historical cost
13,552,545
__
Portfolio split
Investec Wealth
5,918,586
Pentagram Wealth:
Dedicated “A” – Solidarity Fund
4,998,172
Dedicated “B” – Province of Europe
3,127,217
Dedicated “C” – General House
1,546,474
Dedicated “D” – Province of Africa
1,894,088
__
17,484,537
__
2021
£
Split of Funds
Bonds
3,223,604
Equities
9,173,696
Alternative Investments
1,273,335
Other
2,513,918
Cash
1,289.985
___
17,484,537
_____		 2020
£
16,232,245
8,897,670
207,168
(344,514)
(8,844,173)
1,394,965
(455,006)
__
17,088,355
__
13,905,985
__
5,452,602
5,011,891
3,200,929
1,556,807
1,867,126
__
17,088,355
__
2020
£
3,633,048
8,383,933
1,035,869
3,172,748
862,757
___
17,088,355
_____

All investments are carried at their fair value. Investments in equities are all traded in quoted public markets. Holdings in common investment funds, unit trusts and open-ended investment companies are at the bid price. The basis of fair value for quoted investments is equivalent to the market value, using the bid price. Asset sales and purchases are recognised at the date of trade at cost (that is their transaction value).

8. DEBTORS

DEBTORS
Accrued Investment Income		 2021
£
8,117
_______
8,117
 2020
£
19,648
_______
19,648

18

AUGUSTINIANS OF THE ASSUMPTION (Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 DECEMBER 2021

9. DESIGNATED FUNDS

The following designated funds have been set aside out of unrestricted funds by the Trustees for specific purposes:-

Fixed Assets
Investments		 Balance at
01/01/2021
New
Designations
3,368,775
-
17,088,355
396,182
___
_____
20,457,130
396,182

 Designations
Released
(37,975)
-
______
(37,975)
 Balance at
31/12/2021
3,330,800
17,484,537
_______
20,815,337

Fixed assets fund – this fund holds the freehold property and equipment used by the charity.

Investments – these funds are invested to maximise total return and generate income.

Comparative
Designated funds
Balance at
01/01/2020
New
Designations
Fixed Assets
3,407,101
-
Investments
16,232,245
856,110
___
__
19,639,346
856,110
_
_
10.
GENERAL FUND
General Fund
£
Balance at 1 January 2021
78,948
Movement for the year
(44,212)
_
Balance at 31 December 2021
34,736
_
Comparative General Fund
General Fund
£
Balance at 1 January 2020
139,721
Movement for the year
(60,773)
____
Balance at 31 December 2020
78,948
 Designations
Released
(38,326)
-
__
(38,326)
_
Designated
Fund
£
20,457,130
358,207
_
20,815,337
_
Designated
Fund
£
19,639,346
817,784
____
20,457,130
 Balance at
31/12/2020
3,368,775
17,088,355
___
20,457,130
__
Total
£
20,536,078
313,995
_
20,850,073
_
Total
£
19,779,067
757,011
____
20,536,078

11. ULTIMATE CONTROLLING PARTY

The charitable company is under the control of the Trustees as listed on Page 1.

12. SHARE CAPITAL

The company is limited by guarantee and has no share capital. The liability of its members is limited to £10 per member.

19

AUGUSTINIANS OF THE ASSUMPTION (Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 DECEMBER 2021

13. RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES
2021 2020
£ £
Net income/(expenditure) for year 313,995 757,011
Investment income – portfolio dividends (304,877)
(207,168)
Investment income – bank interest (30)
-
Depreciation and impairment of tangible fixed assets 37,975 38,326
Unrealised (gains)/losses on investments (705,312)
(1,341,467)
Foreign exchange 244,815 499,571
Non cash expenditure (investment fees and donations) 430,773 239,829
Non cash income (donation to investment portfolio) (42,024)
-
(Decrease)/Increase in creditors (11,113)
10,780
__ __
Net cash flow from operating activities (35,798)
__
(3,118)
__
14. RELATED PARTY TRANSACTIONS

During the year there were no related party transactions (2020: none).

20