## **The Society of Mary (Marist Fathers) CIO** ## **Annual Report and Accounts** 31 December 2021 Charity Registration Number 1179085 ## **Contents** ## **Reports** |Reference and administrative details|| |---|---| |of the charity, its trustees and advisers|1| |Trustees’ report|3| |Independent auditor’s report|18| |**Accounts**|| |Statement of financial activities|23| |Balance sheet|24| |Statement of cash flows|25| |Principal accounting policies|27| |Notes to the accounts|34| Society of Mary (Marist Fathers) CIO ## **Reference and administrative details of the charity, its trustees and advisers** |**Trustees**|Rev Peter Corcoran| |---|---| ||Rev Kevin Duffy| ||Rev Desmond Hanrahan| ||Rev Ivan Vodopivec| ||Rev Alan Williams| |**National Administrator**|Rev Kevin Duffy (from 1 January 2021)| ||Rev Peter Corcoran (until 31 December 2020)| |**Charity Correspondent and**|Mrs Margaret Stevenson| |**Chief Finance Officer**|margaret@maristfathers.karoo.co.uk| |**Administration office**|Newman House| ||729 Beverley Road| ||Hull| ||HU6 7ER| |**Telephone**|01482 801360| |**Charity registration number**|1179085| |**Auditor**|Buzzacott LLP| ||130 Wood Street| ||London| ||EC2V 6DL| |**Principal bankers**|HSBC Bank plc| ||70 Pall Mall| ||London| ||SW1Y 5EY| |**Investment managers**|Quilter Cheviot Limited| ||Senator House| ||85 Queen Victoria Street| ||London| ||WC2B 6AN| The Society of Mary (Marist Fathers) CIO **1** **Reference and administrative details of the charity, its trustees and advisers** **Solicitors** Stone King LLP 13 Queen Square Bath BA1 2HJ The Society of Mary (Marist Fathers) CIO **2** **Trustees’ report** 31 December 2021 The trustees present their annual statutory report together with the accounts of The Society of Mary (Marist Fathers) CIO (the “Charity”) for the period from 1 January 2021 to 31 December 2021. The accounts have been prepared in accordance with the accounting policies set out on pages 27 to 33 and comply with the Charity’s constitution, applicable laws and the requirements of 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 United Kingdom and Republic of Ireland (FRS 102). ## **Introduction** The Society of Mary (Marist Fathers) (the “Society”) is an international male Roman Catholic religious group, founded in France in 1816 by Jean Claude Colin. Worldwide, the Society comprises of seven provinces (Europe, USA, Australia, New Zealand, Oceania, Mexico and Canada) and four districts (Africa, Asia, Brazil and South America) in which there are 629 (656 as at 31 December 2020) members working in more than 20 countries. The Mother House is in Rome. The Society in England has 16 members, of which 14 are ordained ministers and two are brothers, who all belong to the Province of Europe. Seven former provinces (Italy, Ireland, France, Germany, England, the Netherlands including Norway, and Spain) amalgamated on 1 June 2008 to form one Province of Europe. The administrative base for the constituted province is in Paris and the person with overall responsibility is Rev Martin McAnaney at 104 Rue de Vaugirard, 75006, Paris. Of the 16 members in England, four members are currently assigned abroad, in Italy, Spain, Ireland and in Russia. Two of our members are bishops: The Bishop for the Diocese of Brentwood in Essex, East London and until his recent retirement, the Bishop Emeritus of Menevia, who now resides in a parish in Newport, Wales. Currently, another three members of the Society are working in England and based in London. Of these, two members are from France and one member is from Senegal. We also have a Dutch member of the Society staying in England, enjoying his active retirement, who is engaged in pastoral work in the local parish. The Society in England is governed in day-to-day matters by its own democratically agreed and approved constitution. In July 2016, the Province of Europe became an administrative entity for the purposes of Canon Law, implementing negotiated and agreed processes that apply across the seven constitutive national units within Europe. The national regions as separate administrative units ceased to exist on 30 June 2016. The Society in England made amendments to its trust deed in 2016 to permit and promote co-operation within the Province of Europe and beyond and the trustees sought legal advice before agreeing to this development in governmental structure. In 2018, the trustees of The Society of Mary (Marist Fathers) Charitable Trust (previously carrying Registered Charity Number 235412) applied to the Charity Commission for approval to convert the Charitable Trust’s legal structure into a Charitable Incorporated Organisation (“CIO”). Permission was granted and The Society of Mary (Marist Fathers) CIO was entered on the Register of Charities on 5 July 2018 with Registered Charity Number 1179085. The Society of Mary (Marist Fathers) CIO **3** **Trustees’ report** 31 December 2021 ## **Introduction** (continued) The accounts accompanying this report are the accounts of The Society of Mary (Marist Fathers) CIO through which the assets of the Society in England are now administered and through which its finances operate. The Charity is governed by a constitution dated 5 July 2018 and is registered under the Charities Act 2011. The income and expenditure reported in this annual report represent the activities for the year ended 31 December 2021 with comparative information provided for the year ended 31 December 2020. ## **Principal aims and activities** The general aim of the Charity is the advancement and support of the charitable work carried on by the Society in England and overseas; this work includes in particular the advancement of the Roman Catholic religion. The objects are fulfilled through supporting parish-based ministries, the provision of spiritual guidance, educational support _**,**_ missionary work and grantmaking funds for specific overseas missionary projects. The emergence of the Province of Europe as an administrative entity has resulted in an increase in the members of the Society assigned to work in England from other units of the Province. The transfer (normally temporary) of members from England to one of the other six European units is already a reality, with members currently working in Italy, Ireland, Spain and Russia. Prior to July 2018, members of the Society in England administered in two parishes in England (Hull and Walsingham) under the direction of the local bishops. However, in July 2018, due to the diminishment in members numbers, the Province took the decision to withdraw from the parish in Hull. On leaving the Hull parish, the Charity gifted the title deeds for the parish property to the Diocese of Middlesbrough to continue with their religious works. Members of the Society in England continue to make themselves available for supply work in the Hull & District, to facilitate local clergy leave according to needs and the availability of resources. Members of the Society in England continue to administer in the parish of Walsingham for which there are four churches, although security and safety place a few restrictions on use. Parishioners and others keep the churches run by the members open for use on a daily basis. The shrine in Walsingham receives regular and frequent attendance by pilgrims of all nationalities and faiths. All income received by members, from whatever source is Gift Aided (and covenanted) to the Charity. The Charity remains responsible for the maintenance and support of all of its members in England as they go about their varied activities. Many members continue to actively support and promote the mission of the Society in England, often well into their seventies and beyond. As members, the religious remain entirely dependent upon the Charity to provide for them during their retirement, through to the end of their natural lives. The Society in England continues its commitment to all members, especially and increasingly those who are impaired through age and/or ill health. The Society of Mary (Marist Fathers) CIO **4** **Trustees’ report** 31 December 2021 ## **Principal aims and activities** (continued) The trustees of the Charity provide land and buildings for use by Trinity Catholic College & Sixth Form in Middlesbrough and St Edward’s Primary School in Middlesbrough (both of whom are members of the Nicholas Postgate Catholic Academy Trust), and for St Mary’s College in Blackburn to help further educational provision in the local communities. These educational establishments were originally founded by the Society in England, but are now under separate control and publicly funded. The provision of land and buildings in Middlesbrough is at a peppercorn rent, whereas St. Mary’s College pays rent for the use of the land and buildings in Blackburn under the terms of their lease as the College has undergone structural changes and will close in July 2022. The Society in England recognises and promotes the values and importance of offering spiritual guidance and pastoral advice to people of all ages, irrespective of their social, political or religious background. This work is offered through face-to face consultation, retreats, pilgrimages and chaplaincy work, all of which had to cease during the Covid-19 pandemic. As Covid restrictions start to ease, the work of members in England has recommenced, together with the continued use of video conferencing technology which has proved an effective means of communication. Four members of the Society in England continue to provide ongoing support to the international work of the Society with secondments in Italy, Ireland, Spain and Russia. Funds used for the overseas missionary aspect of the Charity’s work are technically termed “restricted” and one member in England has responsibility for raising funds for this purpose. Each year, an area of England is designated by the English Bishops’ Conference for England & Wales where appeals for funds may be made, normally at Sunday church services. Full use is made of the Gift Aid scheme for these donations. During the Covid-19 pandemic, Sunday church service appeals were temporarily suspended and only recommenced in the second half of 2021 when restrictions allowed. Increasingly, more of the Charity’s financial resources are assigned to meet the costs of those members with life-long care needs and to provide for members in their retirement after a life of active ministry. The Charity also supports the international work of the Society through the provision of donations to the Generalate in Rome and to the Province of Europe. In compliance with established policy, the trustees have agreed to contribute 10% of the annual operating surplus of the Charity for the promotion of formation and training of new members of the Society of Mary and for mission funding to facilitate the work of the Society worldwide. ## **Public benefit** The trustees have given careful consideration to the Charity Commission’s guidance on public benefit in line with their constitution when setting annual objectives, planning the work to be undertaken for the year and when encouraging the work of individual members. The Society of Mary (Marist Fathers) CIO **5** **Trustees’ report** 31 December 2021 ## **Public benefit** (continued) The members of the Society in England operate within, work with and are deeply involved with the local communities where their residential properties are located. The Society in England enables members to give their services freely to promote the Charity’s objects. Details are given above under the heading “Principal aims and activities”. The Society in England also supports the international work of the Society, with four members from England currently ministering overseas; financial assistance is provided through the General Administration in Rome in support of this work. Annual donations are made to promote the Society’s work chiefly in Oceania, the Philippines and Africa. The promotion is funded largely through appeals in parishes in various parts of England and Wales as permitted by the Roman Catholic bishops. Further help, when needed, is provided by occasional legacies and donations from the Pilgrimage Fund. ## **Achievements and performance** The outbreak of Covid-19 affected many local economies around the globe. Following the outbreak in the UK, the Charity had to modify its operations to cope with the impact and effects of the lockdown restrictions imposed by the UK Government to combat the virus and it is only in the last few months that face-to-face activities have recommenced. Despite the lockdown restrictions in the UK, the changing parameters of the global stock markets has resulted in the investment portfolio experiencing larger movements during the year, which has culminated in an increase of 12.8% in the portfolio’s performance in the year. In response to the lockdown restrictions, the Charity reappraised the work carried out by its members in England as a significant number of members are advanced in years, many with associated health conditions. Members continued to practise self-isolation and social distancing, electing to remain inside communities and only going outside for essentials or medical reasons. Very few face-to-face pastoral meetings, religious services, supply work or mission appeals were carried out during the first half of the year with social distancing and lockdown restrictions in operation. Instead, meetings took place using Zoom video conferencing facility, contact with parishioners and providing support was conducted by telephone and one member was involved with the local radio network in preparing and delivering a regular “thought for the day” message. Currently, there are 12 members of the Society resident in England, with one being fully retired. The Charity has one member working as a parish priest in the parish of Walsingham and another fulfilling his role as bishop for the Diocese of Brentwood. All other members provide different levels of service in community in tune with the spirit and aims of the Society. Of those, one member is directly responsible for the development of the extension of the Charity’s work to involve lay people in fostering possible future work of the Society among the laity. The same member organises and manages pilgrimage trips to various shrines in Europe for more than 80 people each year – work that has been ongoing for more than thirty years. Any surplus proceeds from pilgrimage activities are devoted to the Charity’s work both at home and overseas. The Society of Mary (Marist Fathers) CIO **6** ## **Trustees’ report** 31 December 2021 ## **Achievements and performance** (continued) During Covid restrictions, the pilgrimage travel programme was cancelled, but meetings were arranged via Zoom video conferencing so that a programme of events could be coordinated to commence when travel restrictions were lifted in the latter part of 2021. There are two members involved with promoting fundraising efforts for overseas missionary work through making appeals in parish churches in various parts of England and Wales as permitted by the Roman Catholic bishops. Activities were halted in March 2020 and appeals recommenced in June 2021 when it was deemed safe to do so. Some of the further services and activities carried out by members during 2021 are: -  Producing personal reflections and poems distributed digitally to around 150 people each month. -  Editing a respected, multilingual academic journal, the _Ephemerides Liturgicae_ . -  Writing a 200-page theological book being published by _Bloomsbury plc_ . -  Maintaining a web of ecumenical contacts particularly with Anglicans, in Hull and Beverley -  Saying masses in a local care home in Blackburn (2 members). -  Doing supply work in local parishes in Hull (2 members) -  Working part-time in an ecumenical team serving visiting seafarers in Hull. -  Participating as a priest online in an international Catholic organisation for grandparents. -  Serving as chair of an organisation of UK Catholic missionary orders -  Serving as a governor of a secondary school run by the Marist Sisters. -  Serving as trustees on the board of two faith-based CIOs: a refugee centre and an international French language parish in London -  Working as secretary for the Council of the Marist Fathers European province Overseas, one member continues to manage the mission in Moscow within an international parish in the Russian capital. The principal languages used are Russian, English, French and Tagalog. Another member has been heavily involved in work with the pilgrimage mission in Sahagun on the Camino de Santiago trail, providing spiritual support and a listening ear to those on a personal journey. At the end of December 2021, the trustees had responsibility for one parish in Walsingham, in the Diocese of East Anglia, under the direction of the local bishop. Two members of the Society continue to work in the four churches, which encompass the Walsingham parish, with members continuing to help out at the National Marian Shrine in Walsingham, although this responsibility passed to the Hierarchy in England & Wales in December 2014. The Society of Mary (Marist Fathers) CIO **7** **Trustees’ report** 31 December 2021 ## **Achievements and performance** (continued) The Charity continues to provide the freehold land and buildings for occupation by Trinity Catholic College & Sixth Form in Middlesbrough and St Edward’s Primary School in Middlesbrough at a peppercorn rent. Inevitably, with 95% of the members in the Society in England now beyond historic retirement age, concomitant health deterioration is leading to adjustments in the apostolate. The Charity continues to support the international work of the Society, with four members currently working overseas and donations are made to the Generalate in support of this work. Since 2017, the community property in Hull (Newman House) has undergone a series of modifications. The ground floor extension to the building was completed in February 2020 along with the landscaping of the grounds and surrounding area later that year. During 2021, all of the first-floor bedrooms in the property were refurbished too. The receipt of a substantial legacy last year (2020) has provided the funds to support additional overseas missionary projects to benefit those who are needy, poor and disadvantaged. To date the special grant-making projects that have been funded are: -  The purchase of a reliable community vehicle for the rugged roads of the rural areas of Bougainville, in Oceania to support the Marist Hahela community members meet their transportation needs and serve four parishes which are situated in the rough terrain. -  The purchase of a reliable vehicle for the rugged roads of Buin, Bougainville which is suitable for wet crossings as there are rivers without bridges to negotiate. -  The purchase of a new vehicle for Sacred Heart Parish Levuka, Fiji Islands, which suffers from rising sea levels, to assist the parish priests in their pastoral care and community support roles. -  The purchase of a vehicle to help the mission at Port Orly, Vanuatu. -  The provision of replacement equipment to support the Castro Castro prison chaplaincy in Peru to re-establish workshop facilities which were lost in a fire. -  The assistance with the build costs to replace the church in Dala, Solomon Islands which serves 4,000 people in 18 communities but was in poor condition and no longer safe to use. -  The assistance with the build costs for the additional building at the Cerdon Novitiate campus in Davos, Philippines. -  The assistance with the build costs of a chapel for the local seminary in Davao City, Philippines -  The provision of funds to complete the construction of a school at the Marist Centre in the Ranong Mission in Thailand which will provide education facilities to 60 young Burmese refugees The Society of Mary (Marist Fathers) CIO **8** **Trustees’ report** 31 December 2021 ## **Achievements and performance** (continued) Throughout 2021, the trustees have continued to work with their legal and professional advisers and St Mary’s College in Blackburn to establish a precise plan for the future disposal of the site in Blackburn, when it becomes unoccupied, on the closure of St Mary’s College in July 2022. The trustees are also participating in training aspects concerning the principles and rationales of the Charity Governance Code which was refreshed in December 2020. ## **Financial review** ## _**Financial highlights**_ During the year, income receipts benefited from an increase in dividend earnings from investments - £331,114 (2020 - £278,027) and rents from College property - £100,000 (2020 - £16,667). No legacies were received in the year (2020 - £907,464). To date, the significant restricted legacy receipt received in 2020 has helped to funds 13 overseas missionary projects in total - 8 during 2021 (2020 - 5) when approval and authorisation was received by the trustees. At 31 December 2021, the General Administration in Rome had received grant making funds totalling £330,580 (€387,400) to oversee the implementation of 8 special legacy funded projects funded through legacy income and an additional two projects funded by the Charity - £72,178 (€84,875). The Charity operates a centralised policy for key administrative expenditure and provides subsidies to local community properties to assist with members’ living costs. The following transactions were carried out during the year: -  Project work at Hull community property – £73,402 (2020 - £38,371). -  Medical and residential costs amounted to circa £19,000 (2020 - £27,000) for elderly members and those with severe ill health. The provision of State aid financial assistance with these costs has lessened the call on the trustees’ financial resources. -  As in previous years, the trustees contributed to the work of the Society in Europe – £56,588 (2020 - £49,954), and towards overseas mission activity – £34,251 (2020 - £34,955), which was partly funded through Mission appeals and the Pilgrimage Fund. -  Funding of a formation grant-giving project £72,178 (2020 - £nil). -  Quilter Cheviot Investment managers received £55,803 (2020 – £45,625) in fees for the year. -  The investment portfolio performance increased by 12.8% in the year (2020 – 7.2%). -  Donations gifted to the Charity from members following the receipt of legacies £94,450 (2020 - £nil). The Society of Mary (Marist Fathers) CIO **9** **Trustees’ report** 31 December 2021 ## **Financial review** (continued) ## _**Income and expenditure in summary**_ A summary of the results for the year to 31 December 2021 can be found on page 23 of this report and accounts. Total income for the year amounted to £789,452 (2020 - £1,505,927). £358,322 (2020 - £1,198,462) of this amount represents income from donations and legacies. In 2020, legacies including one significant legacy of £907,464 restricted to the promotion of the overseas mission of the Society. Income earned on the Charity’s listed investments totalled £331,114 (2020 - £278,027) and £16 (2020 - £112) was received as bank interest. Total expenditure for the year was £950,015 (2020 - £686,917). £445,869 (2020 - £442,838) of the expenditure was incurred maintaining the members of the Society and enabling them to carry out their work. £448,343 (2020 - £198,454) was expended on grants and donations. Net investment gains of £1,116,276 (2020 - £468,991) arose during the period on the revaluation and disposal of the Charity’s investment assets and the overall net movement in funds for the period, therefore, was an increase of £955,713 (2020 - £1,288,001). ## _**Reserves policy and financial position**_ The reader will discern from the foregoing that the Charity carries out a diverse range of activities and is responsible for care and support of the religious members whose average age is increasing and whose needs are changing. The trustees have examined the need for free reserves i.e. those unrestricted funds not invested in tangible fixed assets, designated for specific purposes, or otherwise committed. In considering the level of reserves, trustees take into account forecasts of future income and expenditure, potential needs and risks, and the need to ensure the continuity of activity. Given the nature of the Charity’s work and the increasing, often unpredictable, call on its resources to provide continuing essential care to its members, especially those impaired by age and illness, the trustees believe that the level of free reserves may be up to five years’ worth of expenditure without giving rise to concern. Since the outbreak of Covid-19 in January 2020, the pandemic has severely affected many local economies around the globe including the UK. In order to cope with the impact and effects of the lockdown imposed by the UK Government to combat the virus, the Charity has had to modify its operations. The UK lockdown and the turbulence experienced by global stock markets resulted in the Charity’s investment portfolio experiencing increased volatility. There is also the added complication of rising inflation entering the economy. One of the consequences of trying to manage the uncertainty that exists with the investments is anticipating the level of investment income that will be available for the Charity during 2022, thereby placing reliance on the free reserves to assist with meeting operational expenditure in the year. At 31 December 2021, the Charity had net assets totalling £13,588,840 (2020 - £12,633,127). The Society of Mary (Marist Fathers) CIO **10** **Trustees’ report** 31 December 2021 ## **Financial review** (continued) ## _**Reserves policy and financial position** (continued)_ Of this, £1,056,627 (2020 - £1,016,250) was represented by equipment, motor vehicles and the properties used to house the members of the Society and to support their work. This balance was separated in recognition of the importance of such assets to the Charity’s operational activities, and thus unavailable to meet the Charity’s day-to-day commitments. Restricted funds of £512,602 (2020 - £771,004) at the balance sheet date represents the balance of funds remaining from the significant legacy received in 2020, the application of which is restricted to overseas special missions’ projects that are controlled and monitored by the Charity and administered via the General Administration in Rome. The trustees of the Charity are mindful of the need to set aside reserves to safeguard the future of the members and their charitable work when considering the age profile of the members of the Society and the annual cost of supporting them and their residential properties. In accordance with the reserve policy, the trustees rely on professional assistance in carrying out an actuarial calculation to establish the costs of maintaining and supporting all the present members of the Society to the end of their natural life. The age of the members ranges from 60 to 87 years. Based on advice received, the trustees have designated an accumulated sum of £8.5 million (2020: £7.3 million) as a reserve to provide for the members of the Society in their continuing ministry and retirement and to be able to help in unforeseen circumstances. The increase in designated funds has been met by a transfer of £1.2 million from free reserves. The current cost of care for any member who needs residential/nursing care is estimated to be circa £44,500 per annum. Whenever possible, the Charity will apply to the State for financial assistance, but this may be limited due to the receipt of occupational pensions. The trustees have also designated £109,478 being monies held in the Pilgrimage Fund, to be applied towards the overseas mission of Marist Fathers within the next ten years. At 31 December 2021, the Charity had free reserves of £3,410,133 (2020 - £3,410,020), which is in line with the policy set out above and importantly, is regarded as being sufficient to enable the charity to meet the challenges presented by Covid-19 and its after effects. ## _**Investment policy and performance**_ Quilter Cheviot Limited continues to manage the Charity’s listed investment portfolio throughout the period of this report. Custody of the investments is held by a nominee company. The Society of Mary (Marist Fathers) CIO **11** **Trustees’ report** 31 December 2021 ## **Financial review** (continued) ## _**Investment policy and performance** (continued)_ The Charity invests in a diverse range of listed investments to enable it to spread risk. In 2019 the portfolio benchmarks were realigned to rebalance the proportion of equities and bonds according to advice received from the fund managers. Despite the uncertainties within the investment markets due in part to the continuance of the Covid-19 pandemic, the portfolio has continued to flourish in the year to December 2021. The market value of the Charity’s listed investments at 31 December 2021 stood at £11,767,445 (2020 - £10,511,558). The investment portfolio’s performance outperformed the performance of the markets generally with a return of 12.8%. Listed investment income for the year totalled £331,144 (2020 - £278,027). The Charity has an investment policy for its listed investments, which is distributed to members and reviewed annually. The Board’s investment strategy is to maximise total returns within an acceptable level of risk in order to meet the Charity’s on-going needs. The investment managers are instructed to endeavour to achieve long-term growth of both capital and income in order to provide the level of income that the trustees required to meet their programme and responsibilities in any one year. Advice is sought from the fund managers before the trustees embark on any programme involving significant finance. It is trustee policy to invest all non-recurring income (including legacy funds, short term), as well as any proceeds from the disposal of assets and maturing life insurance policies taken out in the 1980s to provide cover for each member, for the benefit of the Charity. The trustees provide the fund managers with a copy of their investment policy which details the Charity’s position on ethical and moral principles. The policy states that investment choices should never be made in activities that would conflict with the objectives of the Charity. Whenever prudent and possible, the trustees seek to invest in those areas of the developing world where the Society works. During the year, the National Administrator, who is a trustee, and the Chief Finance Manager receive quarterly reports and monthly performance updates from the fund manager. Regular briefings and contract notes concerning the acquisition and disposal of equities are provided. The board of trustees meet with the fund managers annually to review progress of the portfolio. The National Administrator and Chief Finance Officer will meet with the fund manager every six months to receive and review informative explanatory reports. During 2021, all meetings with the investment managers were held by Zoom video conferencing. At the December meeting, following COP 26, the trustees expressed their wishes to capitalise on their ‘responsible investments’, and for their investments to ‘make a difference’ and assist with bringing about positive change for the environment. The trustees were provided with details of up and coming companies where their mission is to make positive change. After discussion, the trustees approved an investment of up to 3% of the value of the portfolio in a basket of small companies mentioned. The Society of Mary (Marist Fathers) CIO **12** **Trustees’ report** 31 December 2021 ## **Future plans** The Charity anticipates that members will become more involved in activities following the release of the restrictions. The trustees are mindful of their members decreasing numbers, their age profile and fragility. The Charity will continue to work with their legal and professional advisers and St. Mary’s College in Blackburn on the closure of the College in July 2022, release of the lease agreement and disposal of the site. Full marketing of the site premises commenced in late January 2022. Members will be consulted on the requirement to consolidate community properties, based on their level of needs and support options available to the Society in England. The Charity is actively considering its presence in Blackburn. ## **Principal risks and uncertainties** Since the outbreak of Covid-19 in early 2020, the Charity has modified its operations to cope with the impact and effects of the lockdown restrictions imposed by the UK Government to combat the virus. As lockdown restrictions ease, members of the Charity are actively returning to parts of their ministry. The full impact of Covid -19 on the financial position and results of the Charity for future periods are still uncertain. It had a detrimental effect on income receipts in the form of donations, expenditure and reserves for 2020 but the position has improved for 2021. The trustees are confident that the level of reserves held by the Charity are sufficient to mitigate any foreseeable financial concerns about the Charity’s ability to continue as a going concern. The trustees have identified and discussed the types of major risks, which may impact the Charity and affect their work and role in carrying out their mission. They regularly seek out professional advice to ensure compliance with their statutory obligations and regulatory duties are observed. All major risks are recorded within a “Risk Assessment Register” and reviewed annually by the trustees. The identification of any serious risks is automatically an agenda item for forthcoming trustee meetings with the necessary actions and outcomes monitored. The key risks for the Charity are described below, together with the principal ways in which they are mitigated: - _**Caring for the elderly**_ Members of the Society are becoming increasingly older; their needs for professional care and assistance are increasing too. Members’ needs are met through the provision of nursing and medical care, either in-house or externally. Considerable resources are required to provide an appropriate level and quality of care (particularly if nursing or specialist dementia care is required). Such resources are the responsibility of the Charity itself, the State, or a mixture of the two. The trustees are aware that it is essential for proper financial planning to exist so that when additional help is required by members, there are adequate funds in place to provide this support. The Society of Mary (Marist Fathers) CIO **13** **Trustees’ report** 31 December 2021 ## **Principal risks and uncertainties** (continued) ##  _**Deterioration in the value of the investment portfolio**_ The Charity places reliance on the income received in the form of dividends from its investment portfolio to maintain its operations. Stock market fluctuations are monitored on a regular basis and robust control mechanisms are in place to deal with any adverse conditions. Since the outbreak of Covid-19, global equity markets have experienced significant volatility and recovery in the last quarter of 2020. During 2021, the value of the portfolio has rallied as markets have settled. At the year-end the portfolio had experienced an uplift of 12.8% from its previous year-end position. The investment portfolio continues to receive close monitoring as trustees acknowledge that they are dependent on the dividend income it provides for operational expenditure. Every three years, a review is carried out to access the performance and possible appointment of a new professional fund manager from a reputable company. The trustees carry out a regular review of the Charity’s investment policy with an up-to-date copy of the policy supplied to the investment manager, Quilter Cheviot Limited. The National Administrator and Chief Finance Officer receive detailed monthly and quarterly reports of the portfolio movements. The trustees receive copies of the annual reports and meet with the fund manager on an annual basis. ##  _**Age profile of members**_ The increasing age profile of members leads to the risk of dilution in the ministry of the Society and the associated income for the Charity. The Charity continues to demonstrate public benefit by members providing social and pastoral work within local communities and through the provision of charitable donations to the Society’s missions overseas, including the Generalate. Legacy funding has provided the Charity with an opportunity for grant-funding specific overseas missions’ projects. Members of the Society work in close partnership with lay people using their financial and administrative skills to ensure financial viability. ##  _**Safeguarding**_ Operationally the Charity works with children and vulnerable adults including older people. The trustees recognise the absolute necessity of ensuring the protection and safety of all those that the Charity serves. Members of the Society who engage in any ministry in England and Wales and all those who work or volunteer for the Charity and work with children or vulnerable adults obtain clearance from the Disclosure and Barring Service (DBS). The Charity trustees have expressed their firm intention of entering into new contracts with Catholic Safeguarding Standards Agency (CSSA) and Religious Life Safeguarding Service (RLSS) who together are the organisations accountable for implementing the new safeguarding recommendations (safeguarding standards) from the Elliott Review and are responsible for oversight, compliance and safeguarding training of religious congregations. This process was completed during the year ended 31 December 2021. The Society of Mary (Marist Fathers) CIO **14** **Trustees’ report** 31 December 2021 ## **Principal risks and uncertainties** (continued) ##  _**Safeguarding**_ Internally, one of the members of the Society, with the help of a lay expert, is responsible for ensuring the safeguarding policy is adhered to in respect to all members, employees and volunteers. ##  _**Freehold land and buildings in Blackburn**_ The closure of St. Mary’s College in July 2022 presents challenges for the Charity. The costs associated with the disposal of the site and holding an asset no longer in use is considerable. During 2021, the Charity resolved any concern it held over dealing with a parcel of land transferred from Lancashire County Council under the direction of the Education Assets Board pursuant to the provisions of the Further & Higher Education Act 1992 and Education Order 1993 by consulting with the Education & Skills Funding Agency. The disposal of the land which is written in trust requires approval from the Charity Commission. The Charity’s legal advisers have removed any legal implications (if any) in clarifying the full ownership position of the site. The Charity has also received expressions of interest in the site with potential offers after soft marketing of the site in late October. Full marketing of the site commenced in late January with further expressions of interest forthcoming. The trustees are confident that a purchaser for the site will be in place prior to December 2022. The National Administrator and Chief Finance Officer carried out a detailed examination / reassessment of insurance cover in June 2021 via Zoom video conferencing with the advice of Marsh Commercial’s insurance broker managers, and reported to the trustees. The major risks were covered by practical and well-tried procedures. Having assessed the major risks to which the Charity is exposed, the trustees believe that by monitoring reserve levels, annual budgeting, comprehensive insurance cover and centralising responsibility for major expenditure, they have prudent effective systems in place to minimise foreseeable risks. ## **Structure, governance, and management** Since July 2016, the Society in England has been administered on a day-to-day basis by the National Administrator and his Administrative Council, which includes the Chief Finance Officer. The National Administrator shall automatically by virtue of holding this office, be ex-officio, the sole member of the CIO for as long as he holds that office. If the CIO is wound up, the member has no liability to contribute towards its assets and no personal liabilities for settling its debts and other liabilities. The board of trustees – as distinct from the National Administrator and Administrative Council – aim to formally meet four times each year, to review developments and assess the functioning of the Charity in order to monitor the present, and plan for the future as English law stipulates. Should occasion arise, they meet with the Provincial of Europe to further the aims of the Charity. The Society of Mary (Marist Fathers) CIO **15** **Trustees’ report** 31 December 2021 ## **Structure, governance, and management** (continued) The names of the trustees who served during the period of this report are listed on page 1. Apart from the first Trustees, every appointed Trustee must be appointed, subject to the consent of the Superior General, by a resolution in writing by the National Administrator and they shall, subject to clause 15 (retirement and removal of Trustees): - (a) in the case of an individual who is a member of the Society be appointed for a period of three years or such period of office as the National Administrator shall determine; - (b) in all other cases be appointed for: - (I) an initial term of one year; and, - (II) if reappointed (subject to clause 16 of this Constitution) for a term of three years; or such other term as the National Administrator shall decide; and they may (subject to Clause 16 of this constitution) be reappointed. Members are selected for appointment as trustees based on their skills, knowledge and experience, necessary for the effective administration of the Charity. Trustees are invited and encouraged to attend training presentations and webinars to familiarise themselves with the context within which the Charity operates. Briefing packs are prepared and distributed to trustees regularly, which draws upon the information from various Charity Commission publications, signposted through the Commission’s guide CC3 “The Essential Trustee” as a follow up to these sessions. The trustees are committed to developing high standards of governance and make use of the seven fundamental principles within the Charity Governance Code to review their governance procedures, functions and policies to address compliance needs. All trustees receive a copy of the audited annual reports and representative trustees meet annually with the fund managers and insurance broker in order to review and assess their performance. ## _**Key management personnel**_ The trustees consider that they together with the Chief Finance Officer (who is also the National Bursar of the Society) comprise the key management of the Charity, charged with directing and controlling, running and operating the Charity on a day-to-day basis. The National Administrator, to whom the main duties are entrusted, is also a trustee of the Charity and he is assisted in his endeavours by the Chief Finance Officer. All of the trustees are members of the Charity and whilst their living and personal expenses are borne by the Charity they receive no remuneration in connection with their duties as trustees. The Society of Mary (Marist Fathers) CIO **16** Trustees, report 31 December 2021 Structure. governance. and management {cont￿ued) Statement of tmstees. responsibilities The trustees are responsib￿ for preparing the tr¥Jstees' report and accounts in a¢wrdan wilh applicable law and Unrted lfjngthjm Accounting Standards (United Kingdom Generally A￿pted Accounting P￿t￿e1. The Lw appI￿able to charitEs in England and wa￿ requi￿ the trustees to Frepare a￿unt$ for each financkil ￿rI¢>I, whrh give a tnje and fair VP•V ol the state ￿ affairs of the Charty and of the ￿me and expenditure of the Charity that per￿. In weparing these axounls, the tru*ees are required to" • seknt SLFitable accountUW KM)Iw arwj then appty them consistentty. c4)serve Ihe methods and prinCi￿S ui the A£counting and Reporting by Char5ties: Statement d Re(x)mmended Pract￿ applicable to charities preparing the accounts in accordance with the Financ¢al Rwrting Stsndard appI￿able in the United lQngdom and RepublK of IreL8nd {FRS 102}-. make judgements and estimates that are reasonable and prudent,. state whether appl￿ble United lfjngdom Accounting Standards have been followed, subject to any mater￿1 departures di%dosed and eXp￿l￿ed in the accounts. and • prepare the accounts on the going COn￿M basis urEkss rt is ￿apProPr￿?te to presume that the Charty wll continue in operatrjn. The trust*s are responsib￿ for k*ping proper accounting Fecords that discbse wtih reasonabk accuracy at any time the financial poSit￿n of the Charity and enable them to ensure that the accounts compty wrth the Charities Act 2011, applw2ble Chanty (Accounts and Reports) RegulatNJns and the provisions of the Charty's Constitution. They are also responsible for safeguarding the assets of the Charity and hen￿ for taking reasonab￿ steps for the preventb?n and deteCt￿n of traud and other irreguLgrities. Employees. volunteers and membeY8 of the Society The trustees wish to re(ord their apprecTati)n of the dedicated. enthUS¢aSt￿ and FKJsitive approach of all members of the Soaety often in the most drff¢L¢it of circumstances and they underline the support and commitment of all their staff and volunt*rs. This has enabled the Charity lo continue to pursue its obiedNes. In accordance wrth UK L4w, the trustees provKle a workpLqee pens￿n, wh￿h offers a pens￿￿ to each of the Charty's employees. All ernpbyees are able to become members of this scheme after a successful prObat￿n perK)d. The trustees make a ¢ontributvJn of 6% of ￿05S salary in to the pens*Jn scheme. Approved by the trustees arkd s•3ned on th￿r by. Trustee Appr¢)ved by the trustees on: 15107120£ The Souety of Mary {Marist Fathe￿) CIO 17 **Independent auditor’s report** 31 December 2021 ## **Independent auditor’s report to the trustees of The Society of Mary (Marist Fathers) CIO** ## **Opinion** We have audited the accounts of The Society of Mary (Marist Fathers) CIO (the ‘charity’) 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 accounts. 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 accounts: -  give a true and fair view of the state of the charity’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 Charities Act 2011. ## **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 accounts section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the accounts 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 accounts, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the accounts is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity’s ability to continue as a going concern for a period of at least twelve months from when the accounts are authorised for issue. Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report. The Society of Mary (Marist Fathers) CIO **18** **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 Accounts, other than the accounts and our auditor’s report thereon. Our opinion on the accounts does not cover the other information and we do not express any form of assurance conclusion thereon. In connection with our audit of the accounts, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the accounts 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 accounts 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. ## **Matters on which we are required to report by exception** We have nothing to report in respect of the following matters in relation to which the Charities Act 2011 requires us to report to you if, in our opinion: -  the information given in the trustees’ report is inconsistent in any material respect with the accounts; or -  sufficient accounting records have not been kept; or -  the accounts are not in agreement with the accounting records and returns; or -  we have not received all the information and explanations we require for our audit. ## **Responsibilities of trustees** As explained more fully in the statement of trustees’ responsibilities, the trustees are responsible for the preparation of the accounts 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 accounts that are free from material misstatement, whether due to fraud or error. In preparing the accounts, the trustees are responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so. The Society of Mary (Marist Fathers) CIO **19** **Independent auditor’s report** 31 December 2021 ## **Auditor’s responsibilities for the audit of the accounts** Our objectives are to obtain reasonable assurance about whether the accounts 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 accounts. 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 charity through discussions with management 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 accounts or the activities of the charity. These included but were not limited to the Charities Act 2011, Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable to the United Kingdom and Republic of Ireland (FRS 102) (effective 1 January 2019); and -  We assessed the extent of compliance with the laws and regulations identified above through making enquiries with management and those charged with governance and review of minutes of trustees’ meetings. We assessed the susceptibility of the charity’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by: -  Making enquiries of management and those charged with governance 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. The Society of Mary (Marist Fathers) CIO **20** **Independent auditor’s report** 31 December 2021 ## **Auditor’s responsibilities for the audit of the accounts** (continued) _How the audit was considered capable of detecting irregularities including fraud (continued)_ 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 including the authorisation thereof; -  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 accounts is located on the Financial Reporting Council’s website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report. The Society of Mary (Marist Fathers) CIO **21** ## **Independent auditor’s report** 31 December 2021 ## **Use of our report** This report is made solely to the charity’s trustees, as a body, in accordance with section 144 of the Charities Act 2011 and with regulations made under section 154 of that Act. Our audit work has been undertaken so that we might state to the charity’s trustees those matters we are required to state to them in an 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 charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed. Buzzacott LLP Statutory Auditor 130 Wood Street London EC2V 6DL 20 July 2022 Buzzacott LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006 The Society of Mary (Marist Fathers) CIO **22** ## **Statement of financial activities** Year to 31 December 2021 |Notes|**Unrestricted**
**funds**
**£**|**Restricted**
**funds**
**£**|**Year to 31**
**December**
**2021**
**Total funds**
**£**|Unrestricted
funds
£|Restricted
funds
£|Year to 31
December
2020
Total funds
£| |---|---|---|---|---|---|---| |**Income from:**
Donations and legacies
1
Investments and interest receivable
2
Other sources
. Miscellaneous income
3
. Disposal of tangible fixed assets
4
**Total income**
**Expenditure on:**
Raising funds
5
Charitable activities
. Support of members of the Society
and their ministry
6
. Grants and donations
7
**Total expenditure**
**Net income (expenditure) before**
**investment gains**
Net investment gains
13
**Net income (expenditure)**
**Transfer between funds**
16
**Net movement in funds**
9
**Reconciliation of funds**
Total funds brought forward at 1
January 2021
**Total funds carried forward at**
**31 December 2021**|**344,408**
**331,130**
**100,000**
**—**|**13,914**
**—**
**—**
**—**|**358,322**
**331,130**
**100,000**
**—**|280,601
278,139
29,076
250|917,861
—
—
—|1,198,462
278,139
29,076
250| ||**775,538**|**13,914**|**789,452**|588,066|917,861|1,505,927| ||**55,803**
**445,869**
**155,690**|**—**
**—**
**292,653**|**55,803**
**445,869**
**448,343**|45,625
442,838
27,039|—
—
171,415|45,625
442,838
198,454| ||**657,362**|**292,653**|**950,015**|515,502|171,415|686,917| ||**118,176**
**1,116,276**|**(278,739)**
**—**|**(160,563)**
**1,116,276**|72,564
468,991|746,446
—|819,010
468,991| ||**1,234,452**
**(20,337)**|**(278,739)**
**20,337**|**955,713**
**—**|541,555
(24,558)|746,446
24,558|1,288,001
—| ||**1,214,115**
**11,862,123**|**—**
**(258,402)**
**771,004**|**955,713**
**12,633,127**|516,997
11,345,126|771,004
—|1,288,001
11,345,126| ||**13,076,238**|**512,602**|**13,588,840**|11,862,123|771,004|12,633,127| All recognised gains and losses are included in the above statement of financial activities. All activities were continuing as at 31 December 2021. The Society of Mary (Marist Fathers) CIO **23** Balance sheet 31 D*em￿r 2021 21 2021 2020 2020 Fixed assets Tangible assets Invesbments 12 13 1.056.627 12,264,993 13.321.620 1.016,250 10.843,806 11.860.058 Current assets Debtors Cash at b￿k in h8nd 14 6,013 467.249 354.952 822,201 291.617 Ltabilltles CTeditor5." arnounts f￿lIng due thin ￿ year 15 124,39n 149,1301 Net current assets 773,071 Totsl net assets 13.588,840 12,633,127 The funds ofthe charity Income fvnds Restricted fijnds 16 511602 771,004 un￿stn.￿#ed funds . Tangl￿e fixed assets fvnd . DesBJnated fiJThYs . Gèneral tund 17 1,056,627 18 8,609,478 3.410.133 1.018,250 7.435.853 3.410.020 13,076.238 13,588.840 11,862,123 12,633,127 Approved by the trustees and sNJned on their behalf by: Trustee Approved on: (bl071 QOLLtL The Society of Mary (Marist Fathers) CIO 24 ## **Statement of cash flows** Year to 31 December 2021 |Notes|**Year to 31**
**December**
**2021**
**£**|Year to 31
December
2020
£| |---|---|---| |**Cash flows from operating activities:**
Net cash provided by operating activities
A
**Cash flows from investing activities:**
Investment income and interest received
Proceeds from the disposal of tangible fixed assets
Purchase of tangible fixed assets
Proceeds from the disposal of listed investments
Purchase of listed investments
**Net cash provided by investing activities**
**Change in cash and cash equivalents in the year**
**Cash and cash equivalents at 31 December 2020**
Change in cash and cash equivalents due to exchange rate
movements
**Cash and cash equivalents at 31 December 2021**
B|**4,734**|79,212| ||**334,895**
**—**
**(97,514)**
**3,081,567**
**(3,190,413)**|276,026
250
(96,219)
2,844,018
(2,985,367)| ||**128,535**|38,708| ||**133,269**
**656,435**
**(6,552)**|117,920
535,824
2,691| ||**783,152**|656,435| **Notes to the statement of cash flows for the period ended 31 December 2021** **A Reconciliation of net income for the year to net cash provided by operating activities** ||**Year to 31**
**December**
**2021**
**£**|Year to 31
December
2020
£| |---|---|---| |**Net income for the year (as per the statement of financial activities)**
**Adjustments for:**
Depreciation charge
Net gains on investments
Surplus on disposal of tangible fixed assets
Investment income and interest receivable
Foreign exchange losses (gains)
Increase (decrease) in debtors
Decrease in creditors
**Net cash provided by operating activities**|**955,713**
**33,025**
**(1,116,276)**
**—**
**(331,130)**
**6,552**
**457,471**
**(621)**
**4,734**|1,288,001
30,454
(468,991)
(250)
(278,139)
(2,691)
(457,002)
(32,170)
79,212| The Society of Mary (Marist Fathers) CIO **25** ## **Statement of cash flows** Year to 31 December 2021 ## **B Analysis of cash and cash equivalents** |**Analysis of cash and cash equivalents**||| |---|---|---| ||**2021**
**£**|2020
£| |Cash at bank and in hand
Cash held by investment managers
**Total cash and cash equivalents**|**285,604**
**497,548**|354,952
301,483| ||**783,152**|656,435| No separate reconciliation of net debt has been prepared as there is no difference between the net cash (debt) of the charity and the above cash and cash equivalents. The Society of Mary (Marist Fathers) CIO **26** **Principal accounting policies** 31 December 2021 The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the accounts are laid out below. ## **Basis of preparation** These accounts have been prepared for the year to 31 December 2021 with comparatives given for the year to 31 December 2020. The accounts 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 accounts. The accounts 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 United Kingdom and Republic of Ireland (FRS 102) (Charities SORP FRS 102) issued on 16 July 2014, the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011. The charity constitutes a public benefit entity as defined by FRS 102. The accounts are presented in sterling and are rounded to the nearest pound. ## **Scope of accounts** These accounts do not include the funds of parishes managed by the members of the Society as parish priests. Such funds are the property of the relevant diocesan charity of which the parish is part. ## **Critical accounting estimates and areas of judgement** Preparation of the accounts requires the trustees to make significant judgements and estimates. The items in the accounts where these judgements and estimates have been made include: -  the useful economic lives attributed to tangible fixed assets used to determine the annual depreciation charge; -  the assumptions adopted by the trustees and management in determining the value of any designations required from the charity’s general unrestricted funds; and -  the estimate of future income and expenditure flows for the purposes of assessing the charity’s going concern status. The Society of Mary (Marist Fathers) CIO **27** **Principal accounting policies** 31 December 2021 ## **Assessment of going concern** The trustees have assessed whether the use of the going concern assumption is appropriate in preparing these accounts. The trustees have made this assessment in respect to a period of at least one year from the date of approval of these accounts. Following the outbreak of Covid-19, the Charity had to modify its operations to cope with the impact and effects of the lockdown imposed by the UK Government to combat the virus. The duration and impact of Covid-19 still remains unclear at this time and it is not possible to reliably estimate the impact on the financial position and results of the Charity for future periods. The trustees are aware that Covid-19 may continue to affect income, expenditure and reserves. However, they are confident that the level of reserves held by the Charity are sufficient to mitigate any foreseeable financial concerns about the Charity’s ability to continue as a going concern. The trustees of the charity have concluded that there are no material uncertainties related to events or conditions that may cast significant doubt on the ability of the charity to continue as a going concern. The trustees are of the opinion that the charity will have sufficient resources to meet its liabilities as they fall due. The most significant areas of judgement that affect items in the accounts are detailed above. With regard to the next accounting period (i.e. the year ending 31 December 2022), as described in the trustees’ report, the most significant areas that may affect the carrying value of the assets held by the charity are the level of investment return and the performance of the investment markets (see the investment policy and the risk management sections of the trustees’ report for more information). ## **Income** Income is recognised in the period in which the charity 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 and legacies, investment income, interest receivable, the surplus on disposal of tangible fixed assets (if any) and miscellaneous income. Donations, including salaries and pensions of individual religious received under Gift Aid or deed of covenant, are recognised when the charity 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 charity 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 charity and it is probable that those conditions will be fulfilled in the reporting period. In accordance with the Charities SORP FRS 102 volunteer time is not recognised. The Society of Mary (Marist Fathers) CIO **28** **Principal accounting policies** 31 December 2021 ## **Income** (continued) Legacies are included in the statement of financial activities when the charity is entitled to the legacy, the executors have established that there are sufficient surplus assets in the estate to pay the legacy, and any conditions attached to the legacy are within the control of the charity. Entitlement is taken as the earlier of the date on which either: the charity is aware that probate has been granted, the estate has been finalised and notification has been made by the executor to the charity that a distribution will be made, or when a distribution is received from the estate. Receipt of a legacy, in whole or in part, is only considered probable when the amount can be measured reliably and the charity has been notified of the executor’s intention to make a distribution. Where legacies have been notified to the charity, or the charity is aware of the granting of probate, but the criteria for income recognition have not been met, then the legacy is treated as a contingent asset and disclosed if material. In the event that the gift is in the form of an asset other than cash or a financial asset traded on a recognised stock exchange, recognition is subject to the value of the gift being reliably measurable with a degree of reasonable accuracy and the title of the asset having being transferred to the charity. Dividends are 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 charity; this is normally upon notification of the interest paid or payable by the bank. Income from the Coronavirus Job Retention Scheme is credited to the statement of financial activities when the amount can be measured and when the charity is entitled to receipt. Rental income is credited to the statement of financial activities when the charity is entitled to receipt under the relevant lease agreement. The surplus on disposal of tangible fixed assets is defined as the difference between the sale proceeds and the net book value of the asset at the time of the disposal and after deducting any costs associated with the disposal. ## **Expenditure** Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity 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. All expenditure is accounted for on an accruals basis. All expenses are allocated or to the applicable expenditure headings. The majority of expenditure is directly attributable and any apportionment between headings is negligible. The classification between activities is as follows: -  Expenditure on raising funds includes all expenditure associated with raising funds for the charity. This comprises investment management fees only. The Society of Mary (Marist Fathers) CIO **29** ## **Principal accounting policies** 31 December 2021 ## **Expenditure** (continued) -  Expenditure on charitable activities includes all costs associated with furthering the charitable purposes of the charity through the provision of its charitable activities. Such costs include: - Expenditure on the support of members of the Society and their ministry enables the members to carry out the charitable work of the Society in the areas of the advancement of the Roman Catholic Religion, the advancement of education and the spread of Christian values. Such expenditure includes governance costs, which comprise the costs involving the public accountability of the charity (including audit costs) and costs in respect to its compliance with regulation and good practice; and - Grants and donations payable which in the main, relate to the support of the Society’s Generalate and overseas missions. Grants and donations payable are included in the statement of financial activities when approved. Grants approved but not paid at the end of the financial period are accrued. All expenditure is stated inclusive of irrecoverable VAT. ## **Tangible fixed assets** All assets costing more than £1,000 with an expected useful life exceeding one year are capitalised. ## _**Freehold land and buildings**_ - _Colleges and schools_ The trustees are the legal owners of land and buildings used by two Sixth Form Colleges in Blackburn and Middlesbrough and one voluntary aided primary school situated in Middlesbrough, which are exempt charities and publicly funded. The land and buildings are valued at £nil for the purpose of these accounts. All of these educational establishments were originally founded by the Society, but are now under separate control and publicly funded. Historically some developments to the estate were partially funded by state aid according to government policy at the time and there is no reliable information as to their cost. Occupation of the land and buildings by the two educational establishments in Middlesbrough is indefinite and rent free (or at a peppercorn rent) until there is a breach by, or change in the relationship with, the tenants. The trustees consider that no meaningful value can be attributed to these assets since they are not used directly by the Charity and cannot be disposed of in the open market or put to alternative use whilst such occupation continues. The Society of Mary (Marist Fathers) CIO **30** ## **Principal accounting policies** 31 December 2021 ## **Tangible fixed assets** (continued) ## _**Freehold land and buildings** (continued)_ - _Colleges and schools (continued)_ Until the end of October 2020, St Mary’s College, Blackburn (the College) operated as a Catholic sixth form college. With effect from 1 November 2020 it was agreed that as the College no longer met the requirements to be termed “Catholic” it would hence forth operate as a sixth form college. Occupation by the College of the land and buildings situated in Blackburn and owned by the Charity was rent free until 31 October 2020 but with effect from 1 November 2020 is subject to a formal rental arrangement. Following a Structures and Prospects Appraisal (SPA) Review under the control of the FE Commissioner’s Office, the College was notified that it would close at the end of July 2022. With the College closure in July 2022 it is anticipated that control of the property will return to the Charity as from that date. The trustees consider that no meaningful value can be attributed to these assets until 31 July 2022 since they are not used directly by the Charity and cannot be disposed of in the open market or put to an alternative use whilst occupation by the College continues. - _Non-specialised buildings_ Non-specialised buildings i.e. those designed as, and used wholly or mainly for, private residential accommodation 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. Any depreciation thereon, therefore, would be immaterial. - _Specialised buildings_ Specialised buildings include residential properties which have undergone significant adaption works in order to serve the wider operational needs of the charity. Depreciation is provided at 2% per annum on a straight line basis in order to write the buildings off over their estimated useful economic life to the charity. Buildings under construction are not depreciated. ## _**Furniture, equipment and motor vehicles**_ Furniture, equipment and motor vehicles are depreciated in order to write assets off over their expected useful lives at the following rates per annum: -  Furniture and equipment 20% on cost -  Motor vehicles 25% on cost The Society of Mary (Marist Fathers) CIO **31** **Principal accounting policies** 31 December 2021 ## **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. Deferred annuity contracts represent annuity contracts with an insurance company to assist provision for individual members of the Society on their retirement. The fund is revalued at each balance sheet date by the insurance company. The retirement scheme was closed in October 2021, when the only remaining member’s payment was received under the annuity contract by the Charity. 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. Realised gains (or losses) on investment assets are calculated as the difference between disposal proceeds and their opening carrying value or their purchase value if 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 non-recoverability. 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 charity 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. The Society of Mary (Marist Fathers) CIO **32** **Principal accounting policies** 31 December 2021 ## **Fund structure** General funds represent those monies that are freely available for application towards achieving any charitable purpose that falls within the charity’s charitable objects. The tangible fixed assets fund represents the net book value of the charity’s tangible fixed assets. Designated funds comprise monies set aside out of unrestricted general funds for specific future purposes or projects. Restricted funds comprise monies raised for, or their use restricted to, a specific purpose, or contributions subject to donor imposed conditions. ## **Foreign currencies** Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of the transaction. Exchange differences are taken into account in arriving at the net movement in funds. ## **Pension costs** Contributions in respect of defined contribution pension schemes are charged to the statement of financial activities in the year in which they are payable to the scheme. The charity has no liability beyond making its contributions and paying across the deductions for the employees’ contributions. ## **Services provided by members of the Society** For the purposes of these accounts no monetary value has been placed on administrative and other services provided by members of the Society. The Society of Mary (Marist Fathers) CIO **33** ## **Notes to the accounts** 31 December 2021 ## **1 Income from donations and legacies** ||**Unrestricte**
**d**
**Funds**
**£**|**Restricted**
**Funds**
**£**|**Year to 31**
**December**
**2021**
**£**|Unrestricted
Funds
£|Restricted
Funds
£|Year to 31
December
2020
£

276,921

907,464

14,077

1,198,462| |---|---|---|---|---|---|---| |Salaries and pensions of members
of the Society received under gift
aid and/or deed of covenant
Legacies
Other donations|**249,791**
**—**
**94,617**
**344,408**|**—**
**—**
**13,914**
**13,914**|**249,791**
**—**
**108,531**
**358,322**|276,921
—
3,680
280,601|—
907,464
10,397
917,861|| ## **2 Income from investments and interest receivable** ||**Unrestricted**
**Funds**
**£**|**Restricted**
**Funds**
**£**|**Year to 31**
**December**
**2021**
**£**|Unrestricted
Funds
£|Restricted
Funds
£
—
—
—|Year to 31
December
2020
£| |---|---|---|---|---|---|---| |Income from listed investments
Interest receivable|**331,114**
**16**
**331,130**|**—**
**—**
**—**|**331,114**
**16**
**331,130**|278,027
112
278,139||278,027
112
278,139| ## **3 Income from other sources** ||**Unrestricted**
**Funds**
**£**|**Restricted**
**Funds**
**£**|**Year to 31**
**December**
**2021**
**£**|Unrestricted
Funds
£|Restricted
Funds
£|Year to 31
December
2020
£| |---|---|---|---|---|---|---| |Coronavirus Job Retention
Scheme grant
Rent receivable from St Mary’s
College, Blackburn
Miscellaneous income|**—**

**100,000**
**—**
**100,000**|**—**
**—**
**—**
**—**|**—**
**100,000**
**—**
**100,000**|7,516
16,667
4,893
29,076|—
—
—
—|7,516
16,667
4,893
29,076| ## **4 Income from disposal of tangible fixed assets** ||**Unrestricted**
**Funds**
**£**|**Restricted**
**Funds**
**£**|**Year to 31**
**December**
**2021**
**£**|Unrestricted
Funds
£|Restricted
Funds
£|Year to 31
December
2020
£| |---|---|---|---|---|---|---| |Surplus on disposal of motor
vehicles|**—**|**—**|**—**|250|—|250| The Society of Mary (Marist Fathers) CIO **34** ## **Notes to the accounts** 31 December 2021 ## **5 Expenditure on raising funds** ||**Unrestricted**
**Funds**
**£**|**Restricted**
**Funds**
**£**
**—**|**Year to 31**
**December**
**2021**
**£**
**55,803**|Unrestricted
Funds
£
45,625|Restricted
Funds
£
—|Year to 31
December
2020
£| |---|---|---|---|---|---|---| |Investment manager’s fees|**55,803**|||||45,625| ## **6 Expenditure on charitable activities: Support of the members of the Society and their ministry** |**their ministry**||||||| |---|---|---|---|---|---|---| ||**Unrestricted**
**Funds**
**£**
**111,166**
**57,050**
**114,276**
**2,634**
**48,082**
**33,025**
**17,655**
**61,981**
**445,869**|**Restricted**
**Funds**
**£**|**Year to 31**
**December**
**2021**
**£**|Unrestricted
Funds
£|Restricted
Funds
£|Year to 31
December
2020
£| |Staff costs (note 10)
Property expenses
Personal living costs
Training
Expenses of ministry
Depreciation
Loss on foreign exchange
transactions
Governance costs (note 8)||**—**
**—**
**—**
**—**
**—**
**—**
**—**
**—**
**—**|**111,166**
**57,050**
**114,276**
**2,634**
**48,082**
**33,025**
**17,655**
**61,981**
**445,869**|111,984
44,431
121,305
3,431
27,127
30,454
744
103,362
442,838|—
—
—
—
—
—
—
—
—|111,984
44,431
121,305
3,431
27,127
30,454
744
103,362
442,838| ## **7 Expenditure on charitable activities: Grants and donations** ||**Unrestricted**
**Funds**
**£**
**56,588**
**—**

**72,178**
**—**
**25,000**
**—**
**1,924**
**155,690**|**Restricted**
**Funds**
**£**
**—**
**34,251**
**258,402**
**—**
**—**
**—**
**—**
**292,653**|**Year to 31**
**December**
**2021**
**£**|Unrestricted
Funds
£|Restricted
Funds
£|Year to 31
December
2020
£| |---|---|---|---|---|---|---| |The Generalate of the Society
Marist missions overseas
Overseas missions grant funding
Notre Dame Refugee Centre
Religious Life Safeguarding
Service
St. Mary’s College
Other donations of less than
£1,000|||**56,588**
**34,251**
**330,580**
**—**
**25,000**
**—**
**1,924**
**448,343**|49,954
—
2,902
3,000
—
(30,000)
1,183
27,039|—
34,955
136,460
—
—
—
—
171,415|49,954
34,955
139,362
3,000
—
(30,000)
1,183
198,454| ## **8 Governance costs** ||**Unrestricted**
**Funds**
**£**|**Restricted**
**Funds**
**£**|**Year to 31**
**December**
**2021**
**£**|Unrestricted
Funds
£|Restricted
Funds
£
—|Year to 31
December
2020
£| |---|---|---|---|---|---|---| |Professional fees|**61,981**|**—**|**61,981**|103,362||103,362| The Society of Mary (Marist Fathers) CIO **35** ## **Notes to the accounts** 31 December 2021 ## **9 Net movement in funds** This is stated after charging: ||**Year to 31**
**December**
**2021**
**£**|Year to 31
December
2020
£| |---|---|---| |Staff costs (note 10)
Auditor’s remuneration including VAT
. Statutory audit – current year
. Statutory audit – prior year
. Non-audit services –Tax consultancy
Depreciation (note 12)|**111,166**
**8,400**
**—**
**2,592**
**33,025**|111,984
8,160
840
—
30,454| ## **10 Staff costs and remuneration of key management personnel** Staff costs during the year were as follows: ||**Year to 31**
**December**
**2021**
**£**|Year to 31
December
2020
£| |---|---|---| |Wages and salaries
Social security costs
Pension costs|**101,900**
**4,388**
**4,878**
**111,166**|102,123
4,059
5,802
111,984| The average number of employees during the year ended 31 December 2021 was 5 (2020 – 5). The full-time equivalent number of employees during the same period, analysed by function, was 3.2 (2020 – 3.2). There were no employees who earned £60,000 (2020 - none) per annum or more (excluding benefits) during the period. The trustees consider that they together with the Chief Finance Officer (who is also the National Bursar of the Society) comprise the key management of the Charity. The National Administrator, to whom certain duties are entrusted, is also a trustee of the charity. The total remuneration (including benefits) payable to the charity’s key management personnel during the period ended 31 December 2021 was £51,751 (2020 - £55,540). All of the trustees are members of The Society of Mary (Marist Fathers) CIO and whilst their living and personal expenses are borne by the charity they receive no remuneration. ## **11 Taxation** The Society of Mary (Marist Fathers) CIO is a registered charity and therefore is not liable to income tax or corporation tax on income derived from its charitable activities, as it falls within the various exemptions available to registered charities. The Society of Mary (Marist Fathers) CIO **36** ## **Notes to the accounts** 31 December 2021 ## **12 Tangible fixed assets** |**Tangible fixed assets**|||||| |---|---|---|---|---|---| ||Freehold land|and buildings|
Furniture
and
equipment
£|Motor
vehicles
£|**Total**
**£**| ||Non-
specialised
£|Specialised
£|||| ||375,620
—|1,136,726
71,542|45,444
1,860|40,961
—|**1,598,751**
**73,402**| ||375,620|1,208,268|47,304|40,961|**1,672,153**| |||520,322
24,166|29,091
5,798|33,088
3,061|**582,501**
**33,025**| ||—|544,488|34,889|36,149|**615,525**| ||**375,620**
375,620|**663,780**
616,404|**12,415**
16,353|**4,812**
7,873|**1,056,627**
1,016,250| ## **13 Fixed asset investments** |**Fixed asset investments**||| |---|---|---| ||**2021**
**£**|2020
£| |Listed investments
Cash held by investment managers for re-investment
Deferred annuity contracts
**Listed investments**|**11,767,445**
**497,548**
**—**
**12,264,993**
**2021**
**£**|10,511,558
301,483
30,765
10,843,806
2020
£| |Fair (market) value 1 January 2021
Additions at cost
Disposal at book value (proceeds: £3,047,939; gains: £130,736)
Net unrealised investment gains
Fair (market) value at 31 December 2021
Historical cost of listed investments as at 31 December 2021|**10,511,558**
**3,190,413**
**(2,917,203)**
**982,677**|9,902,903
2,985,367
(3,022,014)
645,302| ||**11,767,445**|10,511,558| ||**9,364,145**|8,651,541| The Society of Mary (Marist Fathers) CIO **37** ## **Notes to the accounts** 31 December 2021 ## **13 Fixed asset investments** (continued) At 31 December 2021, the listed investments comprised the following: **----- Start of picture text -----**
2021 2020
£ £
UK fixed interest 1,811,902 1,765,439
Overseas fixed interest 1,476,790 1,305,112
UK equities and unit trusts 1,593,646 1,315,046
Overseas equities and unit trusts 4,046,677 3,755,632
Commodities, absolute return and infrastructure 2,838,430 2,370,329
11,767,445 10,511,558
**----- End of picture text -----**
At 31 December 2021 no individual investment holding was deemed significant in the context of the overall portfolio value. |**Deferred annuity contracts**|**2021**
**£**|2020
£| |---|---|---| |Value at 1 January 2021
Maturity value
Gain realised on maturity
Surplus on revaluation
Value at 31 December 2021|**30,765**
**(33,628)**
**2,863**
**—**
**—**|29,080
—
—
1,685
30,765| The deferred annuity contracts were with Zurich Assurance plc. Since the year end, investment markets have fallen and remain volatile due to the geopolitical and macroeconomic climate. At the date on which these accounts were approved, the listed investment portfolio had a market value of £10,338,667. ## **14 Debtors** ||**2021**
**£**|2020
£| |---|---|---| |Investment income receivable
Legacy receivable
Prepayments and accrued income|**5,453**
**—**
**560**
**6,013**|9,785
457,464
—
467,249| ## **15 Creditors: amounts falling due within one year** |**Creditors: amounts falling due within one year**||| |---|---|---| ||**2021**
**£**|2020
£| |Amounts payable towards the purchase of tangible fixed assets
Other creditors and accruals|**—**
**24,397**
**24,397**|22,112
27,018
49,130| The Society of Mary (Marist Fathers) CIO **38** **Notes to the accounts** 31 December 2021 ## **16 Restricted funds** **----- Start of picture text -----**
At 1 At 31
January December
2021 Income Expenditure Transfers 2021
£ £ £ £ £
Overseas missions fund — 13,914 (34,251) 20,337 —
Overseas legacy funds 771,004 — (258,402) — 512,602
771,004 13,914 (292,653) 20,337 512,602
At 1 At 31
January December
2020 Income Expenditure Transfers 2020
£ £ £ £ £
Overseas missions fund — 10,397 (34,955) 24,558 —
Overseas legacy funds — 907,464 (136,460) — 771,004
— 917,861 (171,415) 24,558 771,004
**----- End of picture text -----**
The overseas mission fund comprises donations received for the specific purpose of funding the Society's mission overseas. The transfer from the charity’s unrestricted general funds is made to cover the shortfall of donations against the actual charitable expenditure on overseas missions. Similarly, the overseas legacy fund relates to a significant legacy receivable, the application of which is restricted towards overseas projects. ## **17 Tangible fixed assets fund** |**Tangible fixed assets fund**||| |---|---|---| ||**2021**
**£**|2020
£| |At 1 January 2021
Other net movements in year
At 31 December 2021|**1,016,250**
**40,377**
**1,056,627**|992,011
24,239
1,016,250| The tangible fixed assets fund represented the net book value of the charity’s tangible fixed assets. This fund was established in recognition of the fact that the assets were used in the day to day work of the Charity and therefore did not represent reserves available to finance its operations. The Society of Mary (Marist Fathers) CIO **39** ## **Notes to the accounts** 31 December 2021 ## **18 Designated funds** The unrestricted funds of the charity included the following designated funds, which were set aside by the trustees for specific purposes: ||**At 1**
**January**
**2021**
**£**|**New**
**designa**
**-tions**
**£**|**Utilised/**
**released**
**£**|**At 31**
**December**
**2021**
**£**| |---|---|---|---|---| |Retirement reserve
Pilgrimages fund|**7,300,000**
**135,853**|**1,200,000**
**3,625**|**—**
**(30,000)**|**8,500,000**
**109,478**| ||**7,435,853**|**1,203,625**|**(30,000)**|**8,609,478**| ||At 1 January
2020
£|New
designa
-tions
£|Utilised/
released
£|At 31
December
2020
£| |Retirement reserve
Pilgrimages fund|8,000,000
156,389|—
9,319|(700,000)
(29,855)|7,300,000
135,853| ||8,156,389|9,319|(729,855)|7,435,853| The retirement reserve represents funds set aside to provide for members of the Society in their retirement. The reserve has been calculated using actuarial principles, but is adjusted as necessary in the light of available resources. The Pilgrimages fund represents monies set aside by the trustees to be applied in due course towards the mission of the Marist Fathers. ## **19 Analysis of net assets between funds** The following assets and liabilities represent the fund balances: ||**Unrestricted funds**|**Unrestricted funds**|**Unrestricted funds**|**Restricted**
**funds**
**£**|**Total**
**2021**
**£**| |---|---|---|---|---|---| ||**General**
**funds**
**£**|**Tangible**
**fixed**
**assets**
**funds**
**£**|**Designated**
**funds**
**£**||| |**Fund balances at**
**31 December 2021 are**
**represented by:**
Tangible fixed assets
Investments
Current assets
Creditors: amounts falling
due within one year
**Total net assets**|**—**
**3,142,913**
**291,617**
**(24,397)**
**3,410,133**|**1,056,627**
**—**
**—**
**—**
**1,056,627**|**—**
**8,609,478**
**—**
**—**
**8,609,478**|**—**
**512,602**
**—**
**—**
**512,602**|**1,056,627**
**12,264,993**
**291,617**
**(24,397)**
**13,588,840**| The Society of Mary (Marist Fathers) CIO **40** **Notes to the accounts** 31 December 2021 ## **19 Analysis of net assets between funds** (continued) ||Unrestricted funds|Unrestricted funds|Unrestricted funds|Restricted
funds
£|Total
2020
£| |---|---|---|---|---|---| ||General
funds
£|Tangible
fixed
assets
funds
£|Designated
funds
£||| |**Fund balances at**
**31 December 2020 are**
**represented by:**
Tangible fixed assets
Investments
Current assets
Creditors: amounts falling
due within one year
**Total net assets**|—
3,094,413
364,737
(49,130)
3,410,020|1,016,250
—
—
—
1,016,250|—
7,435,853
—
—
7,435,853|—
313,540
457,464
—
771,004|1,016,250
10,843,806
822,201
(49,130)
12,633,127| The total unrealised gains constitute movements on the revaluation of listed investments and are as follows: **----- Start of picture text -----**
2021 2020
£ £
Total unrealised gains at 31 December 2021 2,403,300 1,860,017
Reconciliation of movements in unrealised gains on listed
investments
At 1 January 2021 1,860,017 1,754,393
Add: net gains arising on revaluation arising in the year 982,677 645,302
Less: in respect to disposals in the year (439,394) (539,678)
Total unrealised gains at 31 December 2021 2,403,300 1,860,017
**----- End of picture text -----**
## **20 Ultimate control** The National Administrator shall automatically, by virtue of holding that office, be ex-officio the sole member of the CIO for as long as he holds that office. If the CIO is wound up, the member has no liability to contribute towards its assets and no personal liabilities for settling its debts and other liabilities. Apart from the first Trustees, every appointed Trustee must be appointed, subject to the consent of the Superior General, by a resolution in writing by the National Administrator ## **21 Related party transactions** Father Desmond Hanrahan, a trustee of the Charity was appointed as a trustee of Notre Dame de France – Society of Mary CIO (‘NDF’) (Charity Registration Number 1177995) and Notre Dame Refugee Centre CIO (Charity Registration Number 1177990) on 22 June 2018. During the period ended 31 December 2021 NDF contributed £43,035 to the Charity for the support of the clergy. The Society of Mary (Marist Fathers) CIO **41** ## **Notes to the accounts** 31 December 2021 ## **21 Related party transactions** (continued) Income from donations includes the pensions of the trustees of the charity received under Gift Aid or deed of covenant. For the year ended 31 December 2021, £35,180 of pensions income donated by the trustees was receivable by the charity There were no further related party transactions during the year (2020 – none). ## **22 Contingent asset** As noted under principal accounting policies, the CIO is the legal owner of the land and buildings currently occupied by St Mary’s Sixth Form College, Blackburn. Until the end of October 2020, St Mary’s College, Blackburn (the College) operated as a Catholic sixth form college. With effect from 1 November 2020 it was agreed that as the College no longer met the requirements to be termed “Catholic” it would hence forth operate as a sixth form college. Occupation by the College of the land and buildings situated in Blackburn and owned by the Charity was rent free until 31 October 2020 but with effect from 1 November 2020 is subject to a formal rental arrangement. Following a Structures and Prospects Appraisal (SPA) Review under the control of the FE Commissioner’s Office, the College was notified that it would close at the end of July 2022. With the College closure in July 2022, it is anticipated that control of the property will return to the Charity from that date. At this point the land and buildings will be recognised in these accounts. Until this date, the trustees consider that no meaningful value can be attributed to these assets since they are not used directly by the Charity and cannot be disposed of in the open market or put to an alternative use whilst occupation by the College continues. Since late January 2022, the property has been marketed for sale by the charity’s property surveyors and has attracted considerable interest. Following a series of ‘best and final’ offers, the board of trustees have entered into negotiations with their preferred purchaser and anticipate that a sale will be finalised shortly after control of the land and buildings reverts to the charity in August 2022, with proceeds in excess of £5 million. The Society of Mary (Marist Fathers) CIO **42**