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2023-12-31-accounts

Charity number: 1194230

The Order of St. Augustine of the Mercy of Jesus

Trustees' report and financial statements

for the year ended 31 December 2023

The Order of St. Augustine of the Mercy of Jesus

Contents

Page
Reference and administrative details of the charity, its Trustees and advisers 1
Trustees' report 2 - 8
Independent auditors' report on the financial statements 9 - 12
Consolidated statement of financial activities 13
Consolidated balance sheet 14
Charity balance sheet 15
Consolidated statement of cash flows 16
Notes to the financial statements 17 - 35

The Order of St. Augustine of the Mercy of Jesus

Reference and administrative details of the charity, its Trustees and advisers for the year ended 31 December 2023

Trustees Sister Elizabeth Denneny, Trustee
Sister Agnes Dunne, Trustee
Sister Mary Josephine Dolan, Trustee
Sister Mary Condron, Trustee
Martin William Dodds, Trustee
Charity registered
number
1194230
Principal office
The Admin Centre
St George's Park
Ditchling Road
Burgess Hill
West Sussex
RH15 0US
Independent auditors
Kreston Reeves LLP
Chartered Accountants
9 Donnington Park
85 Birdham Road
Chichester
West Sussex
PO20 7AJ
Bankers
Barclays Bank plc
1 Churchill Place
London
E14 5HP
Solicitors
BDB Pitmans LLP
One Bartholomew Close
London
EC1A 7BL
Solicitors
Dentons UK and Middle East LLP
One Fleet Place
London
EC4M 7WS

Page 1

The Order of St. Augustine of the Mercy of Jesus

Trustees’ report for the year ended 31 December 2023

The Trustees present their annual report together with the audited financial statements of the group and the charity for the year from 1 January 2023 to 31 December 2023

The charity and the group also trade under the name Augustinian Care.

Trustees

The Trustees of the Charity during the year under review and to the date of this report were (Order name in brackets):-

Agnes Dunne (Sister Mary Thomas) Miriam Condron (Sister Miriam) Mary Dolan (Sister Mary Carmel) Elizabeth Denneny (Sister Mary Monica) Martin William Dodds -

The Superior General in England of the Order may exercise the power of appointing and removing trustees.

Senior Management Team Chief Executive Officer Philip Smith Estates Director Stuart Warren Facilities Director Paul Ray-Gain Finance Manager David Pithie Training & Development Manager Adrian Muir Senior HR Manager Amanda Clark

Structure, Governance and Management

From 1 January 2022 the Charitable Incorporated Organisation (CIO), The Order of St Augustine of the Mercy of Jesus (Registered Charity No. 1194230), became the principal group operating entity on transfer of the undertaking of the unincorporated Order of the same name (Registered Charity No. 229662). The charity’s objects are the relief of sickness and suffering by in particular the provision or the facilitation of provision of care, accommodation and associated amenities, services and other assistance, the principal activity being the provision of nursing care for infirm and elderly people and those living with Dementia and Alzheimers on the charity’s site at St George’s Park, Burgess Hill.

The group structure to achieve the above objectives is as follows:

The Trustees are ultimately responsible for all assets of the charity and for all Policies and Procedures which are updated by the person in charge of each department are available on the intranet. They meet four times a year to review activities of the charity and to make important decisions. When necessary the Trustees seek advice from the charity’s professional advisers including property consultants, solicitors and accountants.

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The Order of St. Augustine of the Mercy of Jesus

Trustees’ report

for the year ended 31 December 2023

The Senior Management team report to the Trustees at the quarterly meetings and at any ad hoc meetings if necessary and hold bi-weekly meetings with the Care Home Managers and Deputy Managers. The Managers hold their own staff meetings for all care and ancillary staff. In addition, the managers prepare monthly reports on the service performance to include: improvement to the quality of care, review of performance including incidents, accidents and complaints, safeguarding and staff performance. The Managers report all safeguarding issues to the Trustees.

The charity is controlled by the Order, a Diocesan Roman Catholic Religious Community by virtue of the fact that the Superior General appoints the Trustees.

The Trustees are familiar with their obligations with regard to the appointment, selection and induction of new Trustees who are not required to be Religious Sisters of the Order.

New trustees undertake an induction which covers the ethos and values of charity, charity governance, and introduces the Charity Commissions' 'The Essential Trustee' guidance. Existing trustees undertake appropriate training to ensure they remain fully conversant with the role and responsibilities of a charity trustee.

Objectives and activities

The work of the charity is carried out principally through the charity’s provision of two Care Homes, St Rita’s and St Clare’s, and Assisted Living apartments at Trinity Lodge. The two Care Homes each have 60 en-suite bedrooms which provide person-centred care to promote well-being enabling individuals to lead valued and fulfilled lives. Trinity Lodge which opened in March 2023 has 27 rented assisted living apartments.

Each Care Home is run with the following complement of staff:

Trinity Lodge has proved extremely successful, with virtually full occupancy. The services include a daily hot meal, cleaning of apartments, and support to ensure that the residents are living independently with the minimum of help.

A Domiciliary Care Agency, operated by St George’s Park Limited and registered with CQC, provides domiciliary assistance which promotes independence and security for Residents in the Retirement Village at St George’s Park and supports the residents at Trinity Lodge.

The Sisters provide pastoral care to the residents of the Care Homes and their relatives and friends, which is especially comforting at the end of life. They also provide pastoral care to residents of the Retirement Village and Trinity Lodge.

The Sisters support the parish priests, both Catholic and Church of England, to celebrate mass, administer the Sacrament of Reconciliation and Anointing and provide other services to meet the needs of the residents. The Sisters bring Communion to the residents on a weekly basis or as requested.

The Chapel is used for funeral and other services by the residents of the Retirement Village. There is a memorial package in place which allows the use of the cemetery by residents of the care homes and the retirement village. This allows for burials in the cemetery and the planting of trees or shrubs around the grounds.

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The Order of St. Augustine of the Mercy of Jesus

Trustees’ report for the year ended 31 December 2023

Two qualified nursing sisters also provide care and support to residents in the Care Homes and residents in St George's Park.

One Sister supports the Cardinal, where she organises care and visits elderly priests in their own homes or Care Homes. Two Sisters from St George’s Retreat are part of the St Vincent de Paul team who assist with social activities and visit people in their own homes and the Care Homes.

The Sisters support a number of charities including the homelessness charity ‘Crisis for Christmas’ by sending clothing for both men and women and in 2023 for the people of the Ukraine by collecting and sending much needed items for the many people who have lost their homes and belongings.

One Sister continues to live in Ireland, supporting family and friends and is part of the Local Church and Community.

Public Benefit

The Trustees of the charity are aware of their responsibilities as charity trustees. Below is a table showing the fees for residents in care, which shows that 23% are on lower fees. Whilst setting up plans and objectives for the future, the Trustees will give careful consideration to the Charity Commission’s guidance on public benefit.

Residents in Care Homes as at 31[st] December 2023

St. Clare’s
St. Rita’s
Total		 Percentage
Private Full Fees 41 42 83 76.9%
Private Low Fee 1 1 2 1.9%
DSS Funded 12 8 20 18.5%
CHC/CCG
Funded		 3 0 3 2.8%
Total 57 51 108 100.0%

Achievements and Performance Overview

The focus of 2023 has been two-fold, to complete the development and letting of Trinity Lodge and to ensure our Care Homes are well-run, places where residents are safe and cared for, and their families feel confident their relatives well-being is at the heart of what we do. We aim to provide person centred care where each individual is valued, engaged and able to make choices.

The Care Homes have up-to-date modern facilities, bedrooms with en-suite facilities and nice views from the windows (many across St George’s Park), small lounges and seating areas at the end of corridors with nice views. We have also worked hard to make our Homes more dementia friendly, with themed areas in the Homes such as woodlands, lakes and sensory areas with lights and sound boxes. We hope these different themes and scenes engage and stimulate our residents. Our Homes’ occupancy is very important for the financial stability of the group and whilst in 2023 occupancy rates dropped below our budgeted level we were able to maintain income levels..

Ensuring we always have the appropriate level of staffing is crucial to the well-being of our residents, and we staff care shifts at a higher level than the minimum number required to give us flexibility and the opportunity to provide more activities for Residents. In addition, we have had a focused recruitment campaign, including using the Government's inclusion of Care Staff in the Skilled Worker Visa list, recruiting applicants who require Certificates of Sponsorship, which has led to a significant reduction in the use for Agency staff. Of course, there will always be staff turnover and we work hard to keep our permanent staffing levels as high as possible.

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The Order of St. Augustine of the Mercy of Jesus

Trustees’ report for the year ended 31 December 2023

Trinity Lodge, the new Assisted Living accommodation opened on 6[th] March 2023, providing 27 apartments with supporting facilities. By developing the new Assisted Living accommodation to complete the path of support from the Retirement Village to our Care Homes the charity looks to be able to offer the right accommodation and support for residents whatever their needs.

Care Quality Commission

At the last inspection in February 2023 the Care Homes were rated as Requires Improvement, however at St. Rita’s this is because one of the five categories was rated by CQC as Requires Improvement, while the other four were rated as GOOD. At St. St. Clare’s there were three points which CQC rated Required Improvement. We fell short predominantly on paperwork and recordkeeping. Since the inspection in February 2023 we have implemented changes having listened to our service users and visitors to the Homes.

There are regular family and friends meetings where useful information is cascaded. We regularly audit Care Plans and Risk Assessments, which are both on our IT System, PCS, and on paper to ensure that all health needs are properly managed to ensure good care of the residents in our service. This will ensure that all health needs are reported to the appropriate authority for investigation and diagnosis as required.

We have placed a large white board in the Reception area of both Homes where residents family can make suggestions, the principle being - ‘YOU SAID’ ‘WE DID’ . For resident who are unable to verbally communicate due to living with Dementia, we use picture cards to enable them to make choices in particular with regards to meals. Activity Co-ordinators spend time with residents who are bed-bound and talk and read to them.

Gold Standard Framework

During the year, St Rita’s and St Clare’s engaged with the Gold Standard Framework team, achieving the Gold Standard Framework ‘Platinum’ status for sustaining the high quality of care provided to those in the final years of life. Both Homes have been revalidated from 2022 to 2025.

Environment Social Governance (ESG)

The group has prepared an ESG policy setting out its commitment to sustainable development, meeting the needs of the present without compromising the ability of future generations to meet their own needs, as a guiding principle within our work. Social conscientiousness and concern for the environment are integral and fundamental parts of this commitment. Our aim is to reduce the impact of our operations on the environment and on society, ensuring the highest ethical standards, and considering environmental sustainability and social responsibility in all that we do.

The group has already several environmental projects in hand, including the following:

As well as ongoing work:

Employee Involvement and Employment of the Disabled

The Charity and the Group have a number of detailed policies in relation to all aspects of personnel matters including:

Page 5

The Order of St. Augustine of the Mercy of Jesus

Trustees’ report for the year ended 31 December 2023

All the policies are available on the Charity's intranet and are updated regularly.

In accordance with the Charity and the Group's Equal Opportunities Policy, the Charity and the Group have long established fair employment practices in the recruitment, selection, retention and training of disabled staff. Full details of these policies are available from the Charity and the Group's offices.

Pay Policy for Senior Staff

The pay of the senior staff is reviewed annually by the Trustees. When arriving at an increase, the Trustees take into consideration the following:

GDPR

We continue to review our GDPR compliance, the Finance Manager is the nominated GDPR Officer for the group.

Financial Review

After the difficult years of navigating the Covid crisis the charity has been able to return to a more stable position, albeit with the benefit of a £400,000 legacy received in the year. Without the legacy, the account would have shown a loss of £46,832, 0.4% of the annual income, due primarily to the lower than usual bed occupancy levels in the two care homes. 2024 has seen a return to the normal occupancy, with the consequent improvement in the financial position. Additionally, 2024 will include a full years’ occupation of Trinity Lodge, which will also increase the surplus and help to build a firm basis upon which to continue to deliver long term stability for the group and high standards of accommodation and care to residents.

The group’s consolidated statement of financial affairs shows net income before taxation and other recognised gains/losses for the year of £353,168 (2022 net income: £20,538). The principal sources of funding during the year were fees charged to residents, rents and sales of retirement apartments.

All material fixed assets of the charity are used for direct charitable purposes.

The consolidated balance sheet discloses that the group had net current assets of £4,154,908 at 31 December 2023 and net assets of £37,247,626. The Trustees consider that the assets of the charity and group are sufficient to meet the current obligations of the group. The charity’s governing document does not restrict the powers of investment of the Trustees and therefore all assets held by the charity have been acquired with the powers available to them.

At 31 December 2023 there were loans due to the Charity within the group amounting to £1,005,918 (2022: £1,562,578).

The funding environment for the care sector continues to remain challenging and a key financial issue outside the control of the charity is the level of local authority fees which are significantly less than private fees and not sufficient to cover costs.

The charity does not actively fundraise, however it benefitted from donations of £617,846, this includes an interim legacy from Geraldine Rogan amounting to £400,000. As explained in the post balance sheet note, note 25, it has not been possible to substantiate the remaining amount as the total value of the estate remains unknown.

Going Concern

The Trustees have a reasonable expectation that the charity and the group have adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the

Page 6

The Order of St. Augustine of the Mercy of Jesus

Trustees’ report

for the year ended 31 December 2023

going concern basis of preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the Accounting Policies.

Reserves Policy

The Trustees approved a general reserves policy as follows:

Minimum – a level of 2 months expenditure to be maintained

Maximum – no more than 4 month’s expenditure

Target: - To aim to achieve and hold reserves at a level of 3 months expenditure.

Total funds at 31 December 2023 were £37,247,626 (2022: £36,934,656) of which £763,713 (2022: £790,582) were restricted. Unrestricted funds at 31st December 2023 of £33,092,718 (2022 - £32,930,642) were invested in tangible fixed assets to be used by the charity. The charity therefore had free reserves at 31 December 2023 of £3,391,195 (2022 £3,213,632).

In the future a Sisters’ Reserve will be established to meet the income required to support the Community of Sisters. It was considered that an appropriate target for this reserve would be £2million. The reserve is a secondary consideration to the principal of securing the future of the Charity to deliver its’ services. The Trustees will review the levels of the reserves each year:

Risk Management and Internal Control

The Board of Trustees has examined the major strategic, business and operational risks which the charity faces and confirms that systems have been established to enable regular reports to be produced so that the necessary steps can be taken to lessen these risks. The principal risk facing the charity is to ensure the wellbeing of residents in our care. The Trustees will continue to implement policies and procedures which protect their health and safety and maintain the operations integrity.

The other main risk to the charity is that of financial risk in the continuing, challenging environment facing the care sector especially the challenge of meeting the increasing costs.

The charity maintains high level of occupancy and the Trustees and staff continue to look to increase other sources of income to ensure the viability of the charity.

The Board has overall responsibility to ensure the charity has systems of internal control. Such a system of control can provide reasonable, not absolute assurance against errors or fraud. The controls in place include clearly documented accounting procedures, delegation of the authority of the Board of Trustees through the Chief Executive to the rest of the charity.

The charity operates an annual planning and budgeting system with an annual budget approved by the Board. Any changes to the Budget require specific approval from the Senior Management Team, during monthly reviews of income and expenditure, when revised budgets are compared with previous years.

Future Plans

The Trustees are focussed on providing integrated care through their Care Homes and assisted living accommodation on the St George’s Park site associated to the independent living apartments developed by the group previously in the Retirement Village.

The charity has allowed the planning permission to provide a further 72 Assisted Living apartments and a Day Centre at the St. George’s site to lapse. This project will be reviewed with the benefit of experience from running Trinity Lodge and when funding allows.

Page 7

The Order of St. Augustine of the Mercy of Jesus

Trustees’ report for the year ended 31 December 2023

St. Raphael’s Care Home

The sale of the home is currently being assessed.

Trustees’ responsibilities statement

The Trustees are responsible for preparing the Trustees’ report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England & Wales requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and the group and of the incoming resources and application of resources of the group for that period in preparing these financial statements the Trustees are required to:

The Trustees are responsible for keeping proper accounting records that are sufficient to show and explain the charity and the group’s transactions and disclose with reasonable accuracy at any time for financial position of the group and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Account and Reports) Regulations 2008 and the provision of the trust deed. They are also responsible for safeguarding the assets of the charity and the group and hence for taking reasonable steps for the prevention and detection of fraud and other regularities.

This report was approved by the Trustees, on 17[th] June 2024 and signed on their behalf by:

……………………………….. Sister Agnes Dunne Trustee

Page 8

The Order of St. Augustine of the Mercy of Jesus

Consolidated Statement of financial activities for the year ended 31 December 2023

Note
Income from:
Donations and legacies
4
Charitable activities
5
Other trading activities
Investments
6
Other income
7
Total income
Expenditure on:
Raising funds
8
Charitable activities
9
Total expenditure
Net income/(expenditure) before
taxation
Taxation
13
Net movement in funds before other
recognised gains/(losses)
Other recognised gains/(losses):
(Losses)/gains on revaluation of fixed
assets
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Net movement in funds
Total funds carried forward		 Unrestricted
funds
2023
£
617,846
9,415,235
1,196,547
235,687
97,701
11,563,016
753,316
10,429,663
11,182,979
380,037
(22,218)
357,819
(17,980)
339,839
36,144,074
339,839
36,483,913		 Restricted
funds
2023
£
-
-
-
-
-
-
-
26,869
26,869
(26,869)
-
(26,869)
-
(26,869)
790,582
(26,869)
763,713		 Total
funds
2023
£
617,846
9,415,235
1,196,547
235,687
97,701
11,563,016
753,316
10,456,532
11,209,848
353,168
(22,218)
330,950
(17,980)
312,970
36,934,656
312,970
37,247,626		 Total
funds
2022
£
369,014
7,982,542
912,543
200,790
762,283
10,227,172
1,192,510
9,014,124
10,206,634
20,538
(1,446)
19,092
301,600
320,692
36,613,964
320,692
36,934,656

Page 13

The Order of St. Augustine of the Mercy of Jesus

Consolidated balance sheet as at 31 December 2023

Note
Fixed assets
Tangible assets
14
Current assets
Stocks
15
Debtors
16
Bank and cash balances
Fixed assets held for sale
Creditors: amounts falling due within one
year
17
Net current assets
Total assets less current liabilities
Total net assets
Charity funds
Restricted funds
18
Unrestricted funds
18
Total funds		 76,821
1,244,578
692,745
3,417,655
5,431,799
(1,276,891)		 2023
£
33,092,718
33,092,718
4,154,908
37,247,626
37,247,626
763,713
36,483,913
37,247,626		 69,915
1,073,665
934,942
3,417,655
5,496,177
(1,492,163)		 2022
£
32,930,642
32,930,642
4,004,014
36,934,656
36,934,656
790,582
36,144,074
36,934,656

The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:

................................................ Sister Agnes Dunne

................................................ Sister Elizabeth Denneny

Date: 17 June 2024

The notes on pages 17 to 35 form part of these financial statements.

Page 14

The Order of St. Augustine of the Mercy of Jesus

Charity balance sheet as at 31 December 2023

Note
Fixed assets
Tangible assets
14
Current assets
Stocks
15
Debtors
16
Fixed assets held for sale
Cash at bank and in hand
Creditors: amounts falling due within one
year
17
Net current assets
Total assets less current liabilities
Total net assets
Charity funds
Restricted funds
18
Unrestricted funds
18
Total funds		 76,821
2,110,343
3,417,655
370,311
5,975,130
(1,026,847)		 2023
£
31,761,407
31,761,407
4,948,283
36,709,690
36,709,690
763,713
35,945,977
36,709,690		 69,915
2,014,126
3,417,655
406,070
5,907,766
(1,267,994)		 2022
£
31,535,222
31,535,222
4,639,772
36,174,994
36,174,994
790,582
35,384,412
36,174,994

The charity's net movement in funds for the year was £534,696 (2022 - £713,626).

The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:

................................................ Sister Agnes Dunne

................................................ Sister Elizabeth Denneny

Date: 17 June 2024

The notes on pages 17 to 35 form part of these financial statements.

Page 15

The Order of St. Augustine of the Mercy of Jesus

Consolidated statement of cash flows
for the year ended 31 December 2023
Cash flows from operating activities
Net cash used in operating activities
Cash flows from investing activities
Dividends, interests and rents from investments
Proceeds from the sale of fixed assets
Purchase of tangible fixed assets
Proceeds from sale of assets for sale
(Loss)/Gains on revaluations of fixed assets
Net cash used in investing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year		 2023
£
76,080
235,687
421,785
(957,769)
-
(17,980)
(318,277)
(242,197)
934,942
692,745		 2022
£
288,618
200,790
736,714
(4,990,611)
573,694
301,600
(3,177,813)
(2,889,195)
3,824,137
934,942

The notes on pages 17 to 35 form part of these financial statements

Page 16

The Order of St. Augustine of the Mercy of Jesus

Notes to the financial statements for the year ended 31 December 2023

1. General information

The Order is engaged principally in the provision of accommodation for elderly and infirm residents at convents and houses at the under noted location:-

St.George's Retreat, Burgess Hill (the mother house).

The principal activities of its subsidiary companies are as set out in note 26, and were all carried out at its Burgess Hill site.

2. Accounting policies

2.1 Basis of preparation of financial statements

The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.

The financial statements have been prepared to give a 'true and fair' view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a 'true and fair' view. This departure has involved following the Charities SORP (FRS 102) published in October 2019 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.

The Order of St. Augustine of the Mercy of Jesus meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.

The Consolidated statement of financial activities (SOFA) and Consolidated balance sheet consolidate the financial statements of the Group and its subsidiary undertakings. The results of the subsidiary are consolidated on a line by line basis.

2.2 Going concern

The financial statements have been prepared on a going concern basis as the trustees believe that no material uncertainties exist.

The trustees have considered the level of funds which will remain and the expected level of income and expenditure for 12 months from authorising these financial statements and consider that the charity will have sufficient cash funds available to cover ongoing costs to fulfil the operational objectives.

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The Order of St. Augustine of the Mercy of Jesus

Notes to the financial statements for the year ended 31 December 2023

2. Accounting policies (continued)

2.3 Income

All income is recognised once the charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.

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

Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable.

Other income is recognised in the period in which it is receivable and to the extent the goods have been provided or on completion of the service.

2.4 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use.

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

All expenditure is inclusive of irrecoverable VAT.

2.5 Interest receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Group; this is normally upon notification of the interest paid or payable by the institution with whom the funds are deposited.

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The Order of St. Augustine of the Mercy of Jesus

Notes to the financial statements for the year ended 31 December 2023

2. Accounting policies (continued)

2.6 Taxation

The charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.

The tax expense for the year comprises current tax on income arising in the subsidiary entities which is not covered by the above exemptions. This is recognised in the Consolidated Statement of Financial Activities. The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the subsidiary companies operate and generate income. Accordingly the tax assessed for the year on this income is at the standard rate of corporation tax in the UK of 24% (2022: 19%).

2.7 Tangible fixed assets and depreciation

Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost.

Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives.

Depreciation is provided on the following bases:

Freehold property - straight line over 75 years
Long-term leasehold property - straight line over 75 years
Motor vehicles - 25% reducing balance
Fixtures and fittings - 25% straight line
Chapel - structural works - straight line over 100 years
Chapel - refurbishment works - straight line over 40 years

2.8 Investments

Fixed asset investments are a form of financial instrument and are initially recognised at their transaction cost and subsequently measured at fair value at the Balance sheet date, unless the value cannot be measured reliably in which case it is measured at cost less impairment. Investment gains and losses, whether realised or unrealised, are combined and presented as ‘Gains/(Losses) on investments’ in the Consolidated statement of financial activities.

2.9 Stocks

Stocks are valued at the lower of cost and net realisable value.

2.10 Debtors

Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

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The Order of St. Augustine of the Mercy of Jesus

Notes to the financial statements for the year ended 31 December 2023

2. Accounting policies (continued)

2.11 Cash at bank and in hand

Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

2.12 Liabilities and provisions

Liabilities 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.

Liabilities are recognised at the amount that the charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.

Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Consolidated statement of financial activities as a finance cost.

2.13 Financial instruments

The Group only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

2.14 Pensions

The Group operates a defined contribution pension scheme and the pension charge represents the amounts payable by the Group to the fund in respect of the year.

2.15 Fund accounting

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

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

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

Page 20

The Order of St. Augustine of the Mercy of Jesus

Notes to the financial statements

for the year ended 31 December 2023

3. Critical accounting estimates and areas of judgment

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

Critical accounting estimates and assumptions:

The charity makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.

Critical areas of judgment:

The fair value of the investment properties which are sensitive to fluctuations in the property market.

4. Income from donations and legacies

Donations
Legacies		 Unrestricted
funds
2023
£
217,846
400,000
617,846		 Total
funds
2023
£
217,846
400,000
617,846		 Total
funds
2022
£
369,014
-
369,014

All donations and legacies in the current and prior year were unrestricted.

5. Income from charitable activities

Unrestricted Total Total
funds funds funds
2023 2023 2022
£ £ £
Residents' fees and extras 9,415,235 9,415,235 7,982,542

All charitable income in the current and prior year was unrestricted.

Page 21

The Order of St. Augustine of the Mercy of Jesus

Notes to the financial statements for the year ended 31 December 2023

6. Investment income

Unrestricted Total Total
funds funds funds
2023 2023 2022
£ £ £
Rental income and interest receivable 235,687 235,687 200,790

All investment income in the current and prior year was unrestricted.

7. Other incoming resources

Other income
Gains on disposals of fixed assets		 Unrestricted
funds
2023
£
74,116
23,585
97,701		 Total
funds
2023
£
74,116
23,585
97,701		 Total
funds
2022
£
501,875
260,408
762,283

All other incoming resources in the current and prior year was unrestricted.

Page 22

The Order of St. Augustine of the Mercy of Jesus

Notes to the financial statements for the year ended 31 December 2023

8. Expenditure on raising funds

Other trading expenses

Work in progress write offs
Cost of sales
Distribution expenses
Administration expenses
Establishment expenses
Cost of sales staff costs
Distribution staff costs
Administration staff costs		 Unrestricted
funds
2023
£
-
9,732
30,021
123,384
12,672
320,461
49,798
207,248
753,316		 Total
funds
2023
£
-
9,732
30,021
123,384
12,672
320,461
49,798
207,248
753,316		 Total
funds
2022
£
460,847
4,743
33,682
174,821
6,101
271,742
43,835
196,739
1,192,510

All trading expenditure in the current and prior year was from unrestricted funds.

Page 23

The Order of St. Augustine of the Mercy of Jesus

Notes to the financial statements for the year ended 31 December 2023

9. Analysis of expenditure by activities

Activities
undertaken Total Total
directly funds funds
2023 2023 2022
£ £ £
Residents' fees and extras 10,456,532 10,456,532 9,014,124

Analysis of direct costs

Staff costs
Establishment and care expenses
Staff costs, agency and training
Bad and doubtful debts
Bank charges
Depreciation on tangible fixed assets
Farm costs
Legal and professional
Repairs and maintenance
Governance costs		 Residents'
fees and
extras
2023
£
6,481,604
2,212,704
432,509
-
20,025
378,100
60,050
110,986
689,818
70,736
10,456,532		 Total
funds
2023
£
6,481,604
2,212,704
432,509
-
20,025
378,100
60,050
110,986
689,818
70,736
10,456,532		 Total
funds
2022
£
5,548,632
1,644,340
746,205
(13,334)
31,133
196,471
35,153
101,137
677,701
46,686
9,014,124

Included within the direct costs are restricted costs which total £28,869 (2022: £nil).

10. Auditors' remuneration

The auditors' remuneration amounts to an auditor fee of £61,800 ( 2022 - £63,800 ) , and other professional services to the charity including advisory services to the trustees and management amounting to £21,540 (2022 - £10,060).

Page 24

The Order of St. Augustine of the Mercy of Jesus

Notes to the financial statements for the year ended 31 December 2023

11. Staff costs

Wages and salaries
Social security costs
Contribution to defined contribution pension
schemes		 Group
2023
£
6,278,049
625,693
155,369
7,059,111		 Group
2022
£
5,406,938
526,153
127,857
6,060,948		 Charity
2023
£
5,761,260
578,582
141,762
6,481,604		 Charity
2022
£
4,946,015
486,676
115,941
5,548,632

The average number of persons employed by the charity during the year was as follows:

Services to residents
Management and administration		 Group
2023
No.
210
29
239		 Group
2022
No.
217
28
245		 Charity
2023
No.
194
26
220		 Charity
2022
No.
202
25
227

The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was:

Group Group
2023 2022
No. No.
In the band £60,001 - £70,000 6 7
In the band £70,001 - £80,000 2 3
In the band £80,001 - £90,000 1 -
In the band £90,001 - £100,000 - 1
In the band £100,001 - £110,000 1 -
In the band £120,001 - £130,000 - 1
In the band £130,001 - £140,000 1 -

The senior management team, as described on page 2, have employee benefits totalling £499,936 (2022: £431,322) in the parent charity. The employee benefits of the senior management team for the group totalled £584,015 (2022: £543,732).

12. Trustees' remuneration and expenses

During the year, no Trustees received any remuneration or other benefits (2022 - £NIL).

During the year ended 31 December 2023, no Trustee expenses have been incurred (2022 - £NIL).

Page 25

The Order of St. Augustine of the Mercy of Jesus

Notes to the financial statements for the year ended 31 December 2023

13.
Taxation
Corporation tax
Current tax on net income/(expenditure) for the year
Taxation on net income/(expenditure)		 2023
£
22,218
22,218		 2022
£
1,446
1,446

The tax assessed for the year is higher than (2022 - lower than) the standard rate of corporation tax in the UK of 24% (2022 - 19 % ). The differences are explained below:

Net income/(expenditure) before tax
Net income/(expenditure) multiplied by the standard rate of corporation tax
in the UK of 24 (2022 - 19%).
Effects of:
Exclude tax on CIO surplus as not subject to tax
Gift aid relief
Trust tax charge
Total tax charge for the year		 2023
£
353,168
84,760
(56,542)
(24,000)
18,000
22,218		 2022
£
20,538
3,902
(2,456)
-
-
1,446

Page 26

The Order of St. Augustine of the Mercy of Jesus

Notes to the financial statements for the year ended 31 December 2023

14. Tangible fixed assets

Group

Cost or valuation
At 1 January 2023
Additions
Disposals
Transfers between classes
Revaluations
At 31 December 2023
Depreciation
At 1 January 2023
Charge for the year
At 31 December 2023
Net book value
At 31 December 2023
At 31 December 2022		 Freehold
property
£
11,038,208
254,880
(398,200)
-
(17,980)
10,876,908
675,356
50,387
725,743
10,151,165
10,362,852		 Long-term
leasehold
property
£
12,984,635
-
-
11,390,785
-
24,375,420
1,514,304
232,187
1,746,491
22,628,929
11,470,331		 Assets under
construction
£
10,859,044
531,741
-
(11,390,785)
-
-
-
-
-
-
10,859,044		 Motor
vehicles
£
298,391
28,839
-
-
-
327,230
259,781
8,588
268,369
58,861
38,610		 Fixtures and
fittings
£
1,689,913
142,309
-
-
-
1,832,222
1,497,108
88,351
1,585,459
246,763
192,805		 Other fixed
assets
£
7,000
-
-
-
-
7,000
-
-
-
7,000
7,000		 Total
£
36,877,191
957,769
(398,200)
-
(17,980)
37,418,780
3,946,549
379,513
4,326,062
33,092,718
32,930,642

Page 27

The Order of St. Augustine of the Mercy of Jesus

Notes to the financial statements for the year ended 31 December 2023

14. Tangible fixed assets (continued)

Charity

Cost or valuation
At 1 January 2023
Additions
Transfers intra group
Disposals
Transfers between classes
Revaluations
At 31 December 2023
Depreciation
At 1 January 2023
Charge for the year
At 31 December 2023
Net book value
At 31 December 2023
At 31 December 2022		 Freehold
property
£
11,038,208
254,880
-
(398,200)
-
(17,980)
10,876,908
675,356
50,387
725,743
10,151,165
10,362,852		 Long-term
leasehold
property
£
11,598,435
-
63,200
-
11,390,785
-
23,052,420
1,514,304
232,187
1,746,491
21,305,929
10,084,131		 Assets under
construction
£
10,859,044
531,741
-
-
(11,390,785)
-
-
-
-
-
-
10,859,044		 Motor
vehicles
£
254,555
28,839
-
-
-
-
283,394
217,338
8,230
225,568
57,826
37,217		 Fixtures and
fittings
£
1,648,328
142,309
-
-
-
-
1,790,637
1,456,350
87,800
1,544,150
246,487
191,978		 Total
£
35,398,570
957,769
63,200
(398,200)
-
(17,980)
36,003,359
3,863,348
378,604
4,241,952
31,761,407
31,535,222

Page 28

The Order of St. Augustine of the Mercy of Jesus

Notes to the financial statements for the year ended 31 December 2023

14. Tangible fixed assets (continued)

Charity (continued)

Freehold properties include land with a net book value of £5,310,216 (2022: £5,310,216) which is not depreciated.

Freehold properties include investment properties of £3,715,300 (2022: £3,876,000).

Leasehold properties include investment properties amounting to £632,000 (2022: £568,800).

Leasehold properties include interest capitalised of £595,000 at the Bank of Ireland base rate plus 1.75%.

Investment properties under Freehold Properties were subject to independent, professional valuation at 31 December 2015. The valuation was undertaken by various local estate agents with good knowledge of the properties and their locations. The value was reviewed by Stuart Warren DipSurv (CEM) MRICS MBIFM before the amounts were approved to be included within the accounts. In 2023 the investment properties were reviewed and some of the properties were revalued.

Investment properties held within Long term leasehold property were subject to an independent, professional valuation at 31 December 2018. The valuation was undertaken by Cuthbert Lake, Chartered Surveyors. It is assumed that the value of these investment properties is in line with their market value and the values are deemed appropriate still as at 31 December 2023.

Assets under construction relate to Trinity Lodge which was completed in our year and transferred to Long term leasehold properties.

Page 29

The Order of St. Augustine of the Mercy of Jesus

Notes to the financial statements for the year ended 31 December 2023

15. Stocks

Group
2023
£
Farm valuation
76,821
16.
Debtors
Group
2023
£
Due within one year
Trade debtors
490,553
Amounts owed by group undertakings
-
Other debtors
135,033
Prepayments and accrued income
618,992
1,244,578
17.
Creditors: Amounts falling due within one year		 Group
2022
£
69,915
Group
2022
£
431,241
-
285,240
357,184
1,073,665		 Charity
2023
£
76,821
Charity
2023
£
454,351
1,005,918
132,443
517,631
2,110,343		 Charity
2022
£
69,915
Charity
2022
£
421,771
1,149,362
278,487
164,506
2,014,126
Trade creditors
Corporation tax
Other taxation and social security
Other creditors
Accruals and deferred income		 Group
2023
£
266,686
22,218
222,068
680,479
85,440
1,276,891		 Group
2022
£
359,432
1,446
130,575
226,660
774,050
1,492,163		 Charity
2023
£
256,249
-
197,060
500,823
72,715
1,026,847		 Charity
2022
£
358,663
-
116,683
41,828
750,820
1,267,994

Page 30

The Order of St. Augustine of the Mercy of Jesus

Notes to the financial statements for the year ended 31 December 2023

18. Statement of funds

Statement of funds - current year

Unrestricted funds
General Funds
Revaluation reserve
Restricted funds
Bursary fund
Fleur Cowles Charitable
Foundation
David Maskell
Total of funds		 Balance at 1
January
2023
£
35,361,474
782,600
36,144,074
500,000
237,812
52,770
790,582
36,934,656		 Income
£
11,563,016
-
11,563,016
-
-
-
-
11,563,016		 Expenditure
£
(11,205,197)
-
(11,205,197)
-
-
(26,869)
(26,869)
(11,232,066)		 Gains/
(Losses)
£
Balance at
31 December
2023
£
-
35,719,293
(17,980)
764,620
(17,980)
36,483,913
-
500,000
-
237,812
-
25,901
-
763,713
(17,980)
37,247,626		 Gains/
(Losses)
£
Balance at
31 December
2023
£
-
35,719,293
(17,980)
764,620
(17,980)
36,483,913
-
500,000
-
237,812
-
25,901
-
763,713
(17,980)
37,247,626
36,483,913
500,000
237,812
25,901
763,713
37,247,626

Page 31

The Order of St. Augustine of the Mercy of Jesus

Notes to the financial statements for the year ended 31 December 2023

18. Statement of funds (continued)

Statement of funds - prior year

Unrestricted funds
General Funds
Revaluation reserve
Restricted funds
Bursary fund
Fleur Cowles Charitable
Foundation
David Maskell
Total of funds		 Balance at
1 January
2022
£
35,342,382
481,000
35,823,382
500,000
237,812
52,770
790,582
36,613,964		 Income
£
10,227,172
-
10,227,172
-
-
-
-
10,227,172		 Expenditure
£
(10,208,080)
-
(10,208,080)
-
-
-
-
(10,208,080)		 Transfers
in/out
£
Balance at
31 December
2022
£
-
35,361,474
301,600
782,600
301,600
36,144,074
-
500,000
-
237,812
-
52,770
-
790,582
301,600
36,934,656		 Transfers
in/out
£
Balance at
31 December
2022
£
-
35,361,474
301,600
782,600
301,600
36,144,074
-
500,000
-
237,812
-
52,770
-
790,582
301,600
36,934,656
36,144,074
500,000
237,812
52,770
790,582
36,934,656

The Bursary Fund has been set up to comply with the section 106 agreement in respect of the new care village development. It will be made available to residents for the purpose of subsidising the care fees of, or providing financial assistance to, only those residents who prior to becoming a resident were not resident in the area of either West or East Sussex Social Services, or have been residents for no more than 5 years. The transfer from the unrestricted funds is based on a percentage of income received in St George's Park Limited in relation to ground rent, apartment sales and sales uplifts.

Fleur Fenton Cowles was an American write, editor and artist best known as the creative force behind the shot-lived Flair magazine, published in the early 1950's. She moved to Europe in 1955 where she was a successful painter and illustrator. She also designed tapestries, accessories and china for Denby Ltd. She died on June 5 2009 at St Raphael's aged 95 leaving £493,000 towards the maintenance and upkeep of the home.

David Maskell - for the general purposes of the Retreat, this has been allocated towards the chapel refurbishment costs and has also been used to create the Memorial Garden and to refurbing parts of the Convent and grounds

Page 32

The Order of St. Augustine of the Mercy of Jesus

Notes to the financial statements for the year ended 31 December 2023

19. Analysis of net assets between funds

Analysis of net assets between funds - current year

Tangible fixed assets
Current assets
Creditors due within one year
Total		 Unrestricted
funds
2023
£
33,092,718
4,668,086
(1,276,891)
36,483,913		 Restricted
funds
2023
£
-
763,713
-
763,713		 Total
funds
2023
£
33,092,718
5,431,799
(1,276,891)
37,247,626

20. Reconciliation of net movement in funds to net cash flow from operating activities

Net income for the year (as per Statement of Financial Activities)
Adjustments for:
Depreciation charges
Loss/(Gains) on revalutions on fixed assets
Dividends, interests and rents from investments
(Gain)/Loss on the sale of fixed assets
(increase)/decrease in stocks
Increase in debtors
(Decrease)/increase in creditors
Taxation paid
Taxation charge
Net cash provided by operating activities
21.
Analysis of cash and cash equivalents
Cash at bank and in hand
Total cash and cash equivalents		 Group
2023
£
330,950
379,513
17,980
(235,687)
(23,585)
(6,906)
(170,913)
(236,044)
(1,446)
22,218
76,080
Group
2023
£
692,745
692,745		 Group
2022
£
19,092
196,471
(301,600)
(200,790)
(260,408)
433,321
(196,724)
598,799
(989)
1,446
288,618
Group
2022
£
934,942
934,942

Page 33

The Order of St. Augustine of the Mercy of Jesus

Notes to the financial statements for the year ended 31 December 2023

22. Analysis of changes in net debt

Cash at bank and in hand At 1 January
2023
£
934,942
934,942		 Cash flows
£
(242,197)
(242,197)		 At 31
December
2023
£
692,745
692,745

23. Capital commitments

Group Group
2023 2022
£ £
Contracted for but not provided in these financial statements
Purchase, construction or development of investment property - 690,374

24. Related party transactions

St George's Park Limited and St George's - Augustinian Care

During the year recharges of employees' salaries for work carried out relating to the subsidiaries were made. A total of £249,821 (2022 - £229,622) was recharged to St George's Park Limited. At the year end the balance due from St George's - Augustinian Care was £199,332 (2022 - £648,544) and the amount due from St George's Park Limited was £775,584 (2022 - £914,034).

25. Post balance sheet events

Following the year end the charity received an interim payment of a legacy which totalled £400,000. Per the correspondence with the solicitors a further amount is expected, however we are unable to substantiate the remaining amount as the total value of the estate remains unknown. Therefore we have only accrued in the interim receipt of £400,000.

Page 34

The Order of St. Augustine of the Mercy of Jesus

Notes to the financial statements for the year ended 31 December 2023

26. Principal subsidiaries

The following were subsidiary undertakings of the charity:

Names Company Charity Holding
number registration
number
St George's - Augustinian Care 04718235 1105835 100%
St George's Park Limited 05225007 100%
The Order of St. Augustine Of The Mercy Of Jesus 229662 100%
The financial results of the subsidiaries for the year were:
Names Income Expenditure Profit/(Loss)/ Net assets
£ £ Surplus/ £
(Deficit) for
the year
£
St George's - Augustinian Care 255,000 1,362 256,362 (156,854)
St George's Park Limited 1,156,014 (788,536) 367,478 628,392
The Order of St. Augustine Of The 16,950 (194,300) (177,350) 66,400
Mercy Of Jesus

Page 35