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2021-12-31-accounts

The Congregation of the Holy Spirit and the Immaculate Heart of Mary

British Province

THE SPIRITANS

Trustees and Accounts ANNUAL REPORT 2021

Contents

Reports

Reports
Legal and administrative information 1
Trustees’ report 2
Independent auditor’s report 19
Accounts
Consolidated statement of financial activities 23
Charity statement of financial activities 24
Balance sheets 25
Consolidated statement of cash flows 26
Principal accounting policies 27
Notes to the accounts 34

Legal and administrative information

Trustees Father Ugochukwu Ikwuka C.S.Sp (Chairperson from 1 September 2021) Father Michael Desmond Wilson C.S.Sp (appointed 1 September 2021) Father James Flynn C.S.Sp (First Assistant) (appointed 1 September 2021) Father Joseph Melchior Kiwango C.S.Sp (appointed 1 September 2021) Father Paul Antwi-Boasiako C.S.Sp (appointed 1 September 2021) Father Kenneth Okoli C.S.Sp (Chairperson) (resigned 1 September 2021) Father James Mchamangu C.S.Sp (resigned 1 September 2021) Father John Kitchen C.S.Sp (First Assistant) (resigned 1 September 2021) Father Thomas Wilberforce C.S.Sp (resigned 1 September 2021) Principal Address Spiritan House 60 Hoole Road Chester CH2 3NL Other locations 6 Woodlands Road Bromley Kent BR1 2AF 117 Newarthill Road Carfin Motherwell ML1 5AL The Spiritan Centre Northallerton Road Salford M7 3TP Holy Ghost Fathers 61 Leicester Road Salford M7 4DA Charity 227350 (England and Wales) registration SC011294 (Scotland) numbers Auditor Buzzacott LLP 130 Wood Street London EC2V 6DL Bankers National Westminster Bank plc 10 Elephant Yard Kendal LA9 4LZ

0 Congregation of the Holy Spirit and the Immaculate Heart of Mary, British Province

Legal and administrative information

Investment Investec Wealth & Investment Limited Managers 2 Gresham Street London EC2V 7QP Ramsey Crookall Securities House 38/42 Athol Street Douglas Isle of Man IM1 1QH

BlackRock Investment Managers (UK) Limited 12 Throgmorton Avenue London EC2N 2DL UBS Financial Services Inc 500 Grant Street BNY Mellon Center 46th Floor PA 15219-2502

LCL International St George’s Court Upper Church Street Douglas Isle of Man IM1 1EE

Solicitors IBB Solicitors Capital Court 30 Windsor Street Uxbridge Middlesex UB8 1AB

1 Congregation of the Holy Spirit and the Immaculate Heart of Mary, British Province

Trustees’ report Year to 31 December 2021

The trustees present the report and accounts of The Congregation of the Holy Spirit and the Immaculate Heart of Mary, British Province (the “charity” or “Province”) for the year ended 31 December 2021. The charity is also known within the Catholic Church as ‘The Spiritans’ and the ‘Holy Ghost Fathers’.

The accounts have been prepared in accordance with the accounting policies set out on pages 27 to 33 of the attached accounts and comply with the charity’s trust deed, applicable laws and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (Charities SORP FRS 102).

Introduction and short history

The Congregation of the Holy Spirit, or as we are widely known, the Holy Ghost Fathers or Spiritans, was founded in 1703 by Claude Francis Poullart des Places (1679-1709) and merged in 1845 with The Congregation of the Holy Heart of Mary, founded by the Venerable Father Francis Libermann (1802-1852) to form The Congregation of the Holy Ghost and the Immaculate Heart of Mary (the Congregation).

The Spiritans came to Britain 200 years after our initial founding when the anti-Catholic government in France was busy closing convents and monasteries. They looked for a refuge abroad and rented Prior Park, a mansion near Bath in Somerset.

Before they returned to France three years later, the Bishop of Liverpool allowed them to open Castlehead in Grange-over-Sands, Lancashire as a junior seminary. Gradually the seminary flourished and boys were put through their secondary studies before going to France for the Novitiate and training for the missionary priesthood. They formed the English Province of the international Congregation.

By 1939, the Fathers had bought a property in Nottinghamshire to act as a senior seminary but the Second World War broke out and the government requisitioned the house as a military hospital. On average, four new priests were ordained every year and despite the U-boats in the Atlantic, they sailed to their missions in Sierra Leone, Nigeria and East Africa.

With the diocesan clergy assured, young men were encouraged to join the Holy Ghost Fathers and there are now many professed members from the diocese and the surrounding areas.

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Trustees’ report Year to 31 December 2021

Introduction and short history (continued)

In 1947, a house was acquired in Bickley, Kent, as headquarters for the infant English Province and a centre for late vocations. Ex-servicemen were applying to join and some needed help to complete their studies prior to going to the Novitiate.

Recognising the importance of Scotland, as both a place for missionary vocations as well as support for missionary work, the Spiritans set up a community on the outskirts of Glasgow in 1956.

In 1963, the Province was recognised as a registered charity under English Law.

From the late 1980's to date, there has been a conscious decision to concentrate on working with young people, people seeking asylum and refugees, and other marginalised groups within the United Kingdom, as well as maintaining a retirement provision for elderly confreres and offering assistance to the Congregation’s overseas missionary works. The Spiritans also staff several parishes in the dioceses of Birmingham, Nottingham, Salford, Southwark and Westminster together with a missionary outreach in Carfin, Scotland.

In 2008, the Province changed its name from the Congregation of the Holy Ghost and the Immaculate Heart of Mary, English Province to the Congregation of the Holy Spirit and the Immaculate Heart of Mary, British Province. This was to reflect its geographical reality.

History of our overseas missionary works

In 1925, the first Spiritans from the United Kingdom went to Sierra Leone in West Africa. As numbers grew, more followed and then others began to go to Southern Nigeria and Mauritius, while a few went to east Africa and the Caribbean.

In 1947, Rome entrusted to the then English Province the Prefecture of Otukpo in Northern Nigeria, an area almost the size of England, Frank Murray C.S.Sp being the first Prefect. Ever since, most of our Fathers have worked there. This became the Diocese of Makurdi in 1958 with James Hagan C.S.Sp. as its first bishop.

The Fathers first concentrated on education in primary schools, and then opened colleges for boys, and with the help of the Holy Rosary Sisters, for girls too. In 1975, the Government took over the schools enabling the missionaries to pay more attention to the adults, using the new Rite of Christian Initiation for Adults (RCIA).

The response was tremendous. Bishop Murray, C.S.Sp. invited in other Religious Societies, of both men and women, and many new parishes were opened as well as clinics and hospitals.

From the beginning, following Father Libermann's advice, the missionaries encouraged local vocations who would eventually take over the area. A Junior Seminary was opened in Keffi in 1956 and students from there went on to the Senior Seminary in Jos. The first Diocesan priest for Makurdi Diocese was ordained on 1 January 1970, to be followed each year by an ever-increasing number.

With the diocesan clergy assured, young men were encouraged to join the Holy Ghost Fathers and there are now many professed members from the diocese and the surrounding areas.

3 Congregation of the Holy Spirit and the Immaculate Heart of Mary, British Province

Trustees’ report Year to 31 December 2021

History of our overseas missionary works (continued)

Today there are close to five million people in the original prefecture area, which is now split into seven dioceses, Idah, Otukpo, Makurdi, Gboko, Katsin ala, Lafia and part of Jalingo, each with its own Nigerian Bishop and clergy.

The Province continued its links with Sierra Leone and has always had Fathers working there up to and during the brutal and horrendous civil war which ran from 1991 to 2000.

After Vatican II, there was a much greater involvement in international projects and the then English Province was at the forefront of this missionary commitment with British confreres serving on international teams in Angola, Australia, Kenya, Tanzania, South Africa and Ghana.

The Province has continued to experience growth and renewal due largely to missionappointments of Spiritans from other Provinces of the Congregation to the British Province.

The Province has enjoyed great missionary successes and expansion in Britain and overseas, and has maintained an international and missionary flavour to its works.

Constitution

The charity was established by a Trust Deed executed in 1963 which conferred the initial assets of the charity upon its trustees, requiring them to apply the capital, and income from such assets, for charitable purposes which advance the religious, missionary and other charitable work in England, Wales, Scotland and any other part of Great Britain and in British Colonies and Dependencies or the British Commonwealth for such lawful charitable purposes connected with the advancement of the Roman Catholic religion as the trustees shall decide. In 2012, the Trust Deed was amended to take into account the worldwide nature of the British Province’s mission so that we are no longer constricted to the territories mentioned above.

Objectives and activities

Objectives

The objective of the charity (Province) is to advance the religious, missionary or other charitable work of the Congregation.

In practice, this means the charitable work of the Roman Catholic Church especially the promotion of its ethical, religious and missionary ideals.

When setting the objectives and planning the work of the charity for the year, and when encouraging the work of individual members, the trustees have given careful consideration to the Charity Commission's guidance on public benefit.

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Trustees’ report Year to 31 December 2021

Objectives and activities (continued)

The Vision of the British Province

The Spiritans of the British Province undertake to be a witness to the Gospel in an everchanging world. We strive especially to serve those who are poor and marginalised by society, sensitive to their changing needs. Our vision is to carry out our mission by fidelity to community life. We desire a revitalisation of community. The process of sharing, community prayer, mutual support and trust, affirmation and dialogue are recognised as essential elements of community building.

The Mission of the British Province

We are dedicated to the Holy Spirit, who invites us to renew the face of the earth through our holiness and work for the poor. We place ourselves under the protection of the Immaculate Heart of Mary, who was filled by the same Spirit inviting us to lift up the lowly.

In keeping with our ideal of a life that is both fraternal and apostolic, we take for our motto the words used to describe the early Christian communities: Sharing all things in common.

In faithfulness to the intuitions of our Founders, to their experiences and to the living traditions of our Congregation, we give priority to those who have little or no experience of the Gospel. Among these are:

----- Start of picture text -----
Refugees and
The youth The homeless The sick
asylum seekers
People with
Parishes with a Retirement
addictions
Prisoners missionary provision for
especially to
outreach elderly confreres
drugs and alcohol
----- End of picture text -----

These areas contain some of the most disadvantaged in our society and belong to groups for whom the Church has difficulty in finding workers.

The decree of the Second Vatican Council "Ad Gentes" (to the nations), remains an important commitment of the British Province.

We aspire to achieve this mission through:

5 Congregation of the Holy Spirit and the Immaculate Heart of Mary, British Province

Trustees’ report Year to 31 December 2021

Objectives and activities (continued)

The Mission of the British Province (continued)

We also continue to give support to new Provinces and Foundations (circumscriptions) of the Congregation.

In 2018, the Province convened a Provincial Chapter which reviewed the Province’s objectives and put in place the vision and mission of the Province (and hence for the charity) for the next three to six years.

Activities, achievements and performance

General overview

The Congregation of the Holy Spirit and Immaculate Heart of Mary, British Province is part of an international missionary organisation within the Catholic Church, but with an independent authority and structure. It has branches in over sixty countries on six continents, with its Generalate (Motherhouse) in Rome. The Province has in total 90 members from different countries.

We Spiritans, are a religious congregation, comprising clerics, consecrated laymen and Lay Associates. Spiritan brothers are consecrated laymen who make life long vows, but have not opted for ordination to the priesthood. We develop professional and technical skills such as medicine, teaching, social services and communications, which are critical to mission works and projects everywhere in the world. Spiritan Lay Associates are members who undertake renewable promises of commitment, to live out the Spiritan vision and spirituality in their everyday family lives and work. Many of them are key supporters of our projects.

In recent years, the trustees have set up close partnerships within this international framework whereby members from other Provinces are appointed to the British Province to participate in our mission in the United Kingdom.

As well as direct aid for projects in other Provinces, donations are also made to our European Secretariat in Brussels and to the Generalate in Rome, which helps the financing of various missionary projects throughout the world through the COR UNUM fund.

Part of our work is catering for the retirement needs of our elderly and sick members who have spent the majority of their lives in missionary work.

Ministry and the Impact of Covid-19

Since the start of the Covid-19 pandemic in 2020, we have been living through a very challenging time. For many people, it was a time of so much isolation and loneliness, of sadness and death, and yet of creativity and shining generosity.

The Covid-19 has affected not only the basic nature of social interactions but has also had a significant economic impact at every level in ways that have been outside of the charity’s control.

6 Congregation of the Holy Spirit and the Immaculate Heart of Mary, British Province

Trustees’ report Year to 31 December 2021

Activities, achievements and performance (continued)

Ministry and the Impact of Covid-19 (continued)

With social distancing measures in place, the charity’s ministry has been heavily affected. While strictly observing the Government’s advice, the Congregation encouraged all its members to use all means available to continue serving people in need, making use of online platforms to broadcast prayers and organise meetings.

Members of the Congregation, especially those who were not in the vulnerable category, continued to support the vulnerable members of the society as chaplains working mostly with the NHS. Other ways the parishes and communities offered support include:

----- Start of picture text -----
Most of our parishes
continued to run food
Parishes continued to banks. Through this, an
Volunteering with NHS support the parishioners average of 400 people
as Chaplains through online services, were supported per
phone calls and letters week. Also, some of our
parish halls were used as
vaccination centres
Through Revive CIO (our
subsidiary) we continue Through Just Youth,
to offer support to young people received
Supporting bereaved
Refugees and people spiritual and moral
families
seeking asylum. Over support during the
3000 people were pandemic
helped
----- End of picture text -----

During the pandemic, 4 more parishes were taken by the Spiritans as we continue to support the dioceses in the time of crisis. Though we were able to meet a limited number of people because of the restrictions, the network of relationship between the parishioners continued

Financial Impact of Covid-19

The pandemic has also caused a significant financial impact, as all the Mission Appeals and face to face fundraising events were cancelled and donations reduced.

In order to continue with our ministry and to be able to protect our workers, some of our staff were furloughed under the Coronavirus Job Retention Scheme, having 80% of their wages costs covered by the Government. As the Government eased the lockdown, our offices, places of worship and projects made the necessary adjustments, putting in place health and safety measures to slowly welcome back our parishioners and volunteers.

7 Congregation of the Holy Spirit and the Immaculate Heart of Mary, British Province

Trustees’ report Year to 31 December 2021

Activities, achievements and performance (continued)

Financial Impact of Covid-19 (continued)

The return on the charity’s investments was also affected, but bounced back at the end of the financial year. However, the current fluctuations of the financial markets make it difficult to ascertain the real impact; we are working with our investment managers to mitigate the risks.

The trustees will continue to keep both income and expenditure under review. Whilst there will undoubtedly be challenges ahead, the trustees do not expect material concerns to arise over the charity’s financial position.

Communities, parishes, projects and chaplaincies

The Province administered the works of 23 parishes within Britain during 2021 on behalf of the dioceses in which each parish is situated.

Each parish is orientated and focused towards the Missionary objectives of the Province. This includes not only support of the local Church but also the spectrum of efforts the Congregation is involved with worldwide. This is achieved through encouraging prayer, community building and practical support. The parishes act as a base for our Spiritan outreach in that particular area.

Our Spiritan ministry encompasses engagement within the parish, the local community, and reaching out to those at the margins of the society. Using the parish as a base, we also reach out to schools as school chaplains and school governors.

Chaplaincy is the provision of religious and pastoral services to people within local communities who may have specific needs due to their state of life, who face unique challenges, or who are vulnerable and therefore require special accommodations to be made. Most commonly, chaplaincies are connected with secular institutions, such as hospitals, prisons, and schools.

The charity continued to support schools, hospitals, different ethnic groups and prisons. In total, the Spiritans support four prisons, and many schools and hospitals - especially those attached to the parishes staffed by Spiritans.

Provision of Care for the sick and the Elderly members of the Order.

Part of our work is to support the members of our congregation who are sick or retired after many years of service, mostly, in difficult mission areas.

Last year, it was particularly difficult as due to the NHS backlog (long waiting list), many hospital appointments were cancelled due to Covid-19. Thanks to the donations and legacies received, the charity spent over £150k to support its sick and retired members.

Spiritan projects

The Province continues to support our projects, which were designed to help the less privileged in society. It has two major projects: Just Youth and Revive CIO.

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Trustees’ report Year to 31 December 2021

Activities, achievements and performance (continued)

Spiritan projects (continued)

Just Youth

Just Youth is a youth ministry project established by the Spiritans in 1998 under a separate charity (Charity Registration No. 1072491) in Salford. It provides creative formal and informal educational activities for young people, to help develop their spiritual, moral, social, emotional, and intellectual potential that they may grow to full maturity as persons and valued citizens.

During 2021, the Province provided four Spiritan priests and four Seminarians to work with Just Youth. The Spiritans also provided the services of the Spiritan Provincial administration members who are the trustees of Just Youth, the service of the provincial financial office as well as the use of the Spiritan Centre and a grant to assist the operation of the Project. A more detailed Just Youth project report can be found attached to the Just Youth accounts.

As Just Youth works mainly with schools, its income was adversely affected due to the lockdown. The Spiritans supported Just Youth and still continues to do so as the organisation recovers from the pandemic.

More information can be obtained from the Just Youth website www.justyouth.co.uk as well as a detailed report filed with the Charity Commission.

Revive CIO

Revive is a Spiritan Missionary project which provides free practical support, services and advocacy for refugees and people seeking asylum regardless of race, religion, gender, sexuality, disability, age or beliefs.

The work is underpinned and inspired by the Christian values of compassion, service, equality and respect of human dignity. Revive aims to promote access to rights, safety, stability and independence.

The Revive project has been a part of the Spiritans since 2002 when it was established. As the project continued to grow and expand, the trustees decided to register this project as a Charitable Incorporated Organisation (CIO).

More information can be found on Revive’s website www.revive-uk.org and also in a separate report filed with Charity Commission.

Overseas ministry and support

Brazil – City of Angels

In aid of City of Angels, the British Province contributed £60k in 2021.

In response to Pope Francis’ call to “care for our Common Home” and in pursuit of justice, peace and integrity of creation (JPIC), the City of Angels developed the Reciclorganico Project. The aim is to educate the population of favelas on sustainability and to offer an alternative to the disposal of food waste generated by the families.

9 Congregation of the Holy Spirit and the Immaculate Heart of Mary, British Province

Trustees’ report Year to 31 December 2021

Activities, achievements and performance (continued)

Overseas ministry and support (continued)

Brazil – City of Angels (continued)

Throughout the process, the families are trained on what can be composted, on the chemical transformation of the residues during a visit to the City of Angels’ orchard and take part on the plantation of vegetables. The young adults supported by City of Angels are responsible for the collection and transport of the residues, as well as the production of periodic reports, training of the families, social media presence and search for partnership.

----- Start of picture text -----
Vegetables
Colection of
produced sent
compostable
to the families
food waste
in the Favelas
Fertilisers Transport to
used on City City of Angel's
of Angel's communitary
orchard compost unit
Production
of organic
fertilisers
----- End of picture text -----

10 Congregation of the Holy Spirit and the Immaculate Heart of Mary, British Province

Trustees’ report Year to 31 December 2021

Activities, achievements and performance (continued)

Overseas ministry and support (continued)

Brazil – City of Angels (continued)

----- Start of picture text -----
Formation on sustainability based on Pope Francis’ “Laudato Si”
----- End of picture text -----

Crèche

The crèche built in 1989 by the residents in the heart of Vila Prudente Favela is still going strong. Today, in partnership with the City Council of Sao Paulo, the crèche serves 61 children from 1 to 3 years and employs 12 staff members. The existence of the crèche is crucial to support working parents and create a stable environment to the children in their early years.

Feeding soul and body

The Covid-19 pandemic had a massive impact in the Brazilian society. With a death toll of over 619k by the end

of 2021, the population also struggled with food prices rising astronomically and a hit on the ‘informal economy’, which employs a great part of the population living in favelas.

With some 60% of Brazilian households affected by food insecurity, the City of Angels in partnership with Overseas Charities, responded to the call distributing tons of food baskets to the families within the 35 favelas supported by the charity.

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Trustees’ report Year to 31 December 2021

Activities, achievements and performance (continued)

Overseas ministry and support (continued)

Lay Associates

Many people from all walks of life, in contact with Spiritans in many parts of the world, feel inspired and called to share in the charism and mission of the Spiritans. Many have gone further to make a formal commitment to live a Spiritan way of life within the context of their everyday lives and working environment. They form the Lay Spiritan Associates.

Celebrating our volunteers

Volunteers remain a gift to the community especially to our organisation and, without them, we would not have accomplished what we did - from helping with drop-in sessions before the pandemic to interpreting to helping with administrative work in our parishes, stewarding in the places of worship during the pandemic and helping bereaved families, their selflessness and service to others remains a cornerstone of Spiritan ministry.

Financial review

The accounts for 2021 show the consolidated position of the ‘Spiritan Group’, which includes the Province, Just Youth, and Revive CIO, its subsidiary charities. The Group’s net movement in funds amounted to a surplus of £400,992 (2020 - £1,566,779) comprising a net income before net investment gains of £152,300 (2020 - £2,672), with the adjusting balance being the net investment gains of £248,692 (2020 - net investment gains of £1,564,107, which, in the year to 2020, included net gains on the revaluation of investment properties of £1,505,000. There was no gain or loss on investment properties in 2021.

Income

The income of the Group during 2021 amounted to £2,019,463 (2020 - £1,694,474). Our main income was from donations and legacies, which with £498,875 (2020 - £410,453) being the salaries, pensions and ministry income of the Spiritans totalled £1,422,439 (2020 - £1,105,757).

The Province continues to be extremely thankful to its donors and benefactors without whom its work would not be possible.

Income from other trading activities totalled £45,961 (2020 - £66,454), and income from listed investments and other interest amounted to £320,763 (2020 - £304,023). Income from youth education (Just Youth) was £28,337 (2020 - £17,954) in the year and income from enrichment activities (Revive CIO) totalled £177,747 (2020 - £164,276).

All income received during 2021 was used to support the missionary activities of the Province both at home and overseas.

Expenditure

The expenditure of the Province continues to be monitored. The principal areas of expenditure are the support of the Provinces and the wider Congregation’s missionary objectives, both at home in Britain and overseas, together with the continued expense of funding the operation of the retirement provision in Chester and Carfin, and the employment costs of staff that help facilitate the Province’s missionary work.

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Trustees’ report Year to 31 December 2021

Financial review (continued)

Expenditure (continued)

During 2021, Group expenditure was £1,867,163 (2020 - £1,691,802) of which £1,367,972 (2020 - £1,141,288) relates to charitable missionary objectives in the UK and £192,413 (2020 - £255,041) relates to donations and the support of overseas missions. £84,126 (2020 - £72,559) relates to the costs of the Spiritan Youth ministry, including the costs of the subsidiary charity, Just Youth. This sum principally reflects the salaries of its staff and the operational costs of the Spiritan Centre. Expenditure on the Group’s enrichment activities totalled £179,337 (2020 - £170,420).

The balance of the expenditure relates to the cost of raising funds including investment management costs.

Each year budgets are established and closely monitored to ensure prudent management of the Province’s resources. This, as well as the strategic plan, helps to ensure the ongoing viability of the Province. Main areas of expenditure are constantly being reviewed and examined in order to ensure a continuing and viable missionary Province in the future.

Financial position

The consolidated balance sheet shows total funds of £13,630,676 (2020 - £13,229,684) of which £2,468,305 (2020 - £2,457,715) represents properties and other tangible fixed assets, which are essential in supporting the work of the Province. Other funds that need mention are as follows:

Reserves policy

The trustees have a policy of ensuring that they hold in reserve funds equivalent to the running costs of the charity for one year. At 31 December 2021, the level of the general fund or free reserves was £3,367,887 (2020 - £3,454,335). The level of free reserves currently more than meets this target. The trustees believe that, together with the designated funds, they have sufficient free reserves to meet the needs of the charity in the immediate future and they continue to monitor the level of reserves closely.

Given the challenges that will arise in the short to medium term as a result of the aftermath of Covid-19 and more recent geopolitical events this level of reserves, being slightly higher than that required by the reserves policy, is deemed appropriate and the trustees are content that the charity is a going concern.

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Trustees’ report Year to 31 December 2021

Financial review (continued)

Investment policy

The trustees have the power to invest in such assets as they see fit. However, to ensure all financial investments adhere to Catholic Social Teaching the charity has an established ‘Ethical Investment Policy’.

The services of investment management companies, are employed to implement this policy and to ensure the maximum return is achieved on our investments. Our investments are reviewed on a regular basis.

Plans for the future

With the aftermath of the pandemic and more recent geopolitical events, the trustees will continue to monitor the income and expenditure and make decisions accordingly. The Province had an elective assembly in July this year, and new trustees were elected. However, the 2018 Chapter decisions were not changed.

Structure, governance and management

Employees, volunteers and members of the congregation

The Province is very fortunate in continuing to have many dedicated people to help in its missionary activities. This voluntary help enables the members of the charity to devote their time to working with deprived groups, those on the margins and those in need. There is no remuneration for this work. Alongside their other priestly duties, the trustees give a great deal of their time to the administrative work of the Province. There are also members appointed to take charge of communities and the care of the elderly members of the Province. These duties are carried out without financial remuneration and, once again, their contribution is greatly appreciated.

Statement of trustees' responsibilities

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

The law applicable to charities in England and Wales and in Scotland requires the trustees to prepare accounts for each financial year, which give a true and fair view of the state of affairs of the group and the charity and of the income and expenditure of the group and charity for that period.

In preparing these accounts, the trustees are required to:

Trustees’ report Year to 31 December 2021

Structure, governance and management (continued)

Statement of trustees' responsibilities (continued)

The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity, and enable them to ensure that the accounts comply with the Charities Act 2011, applicable Charity (Accounts and Reports) Regulations, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations for 2006 and the provisions of the charity's trust deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Appointment of trustees

All trustees are appointed by those members of The Congregation of the Holy Spirit and the Immaculate Heart of Mary, British Province (the “Province”) who are in permanent vows. The Chairperson of the trustees is the elected Provincial Superior of the Province. The other trustees are the first assistant and appointed councillors on the Provincial Council.

The trustees are elected and appointed every three years at an elective Provincial Assembly or Chapter of the Province and are confirmed in office by the Generalate of The Congregation of the Holy Spirit and the Immaculate Heart of Mary in Rome.

As all trustees are members of the Congregation, they have detailed knowledge of the works of the charity, its structure and its aims and objectives.

On 1 March 2013 the trustee body of the Congregation, under an order from the Charity Commission of England and Wales and ratified by the Office of the Scottish Charity Regulator, became an incorporated body to be known as The Incorporated Trustees of The Congregation of the Holy Spirit and the Immaculate Heart of Mary, British Province.

Training of the Provincial Council in their role as trustees is facilitated by the Provincial Bursar (Chief Financial Officer). Training is provided using materials provided by the Charity Commission of England and Wales or the Office of the Scottish Charity Regulator, major conferences, the Association of Provincial Bursars, the Conference of Religious and also relevant literature and seminars provided by firms of solicitors and accountants specialising in charity practice and procedures.

The names of the trustees who served during the year and up to the date on which this report was approved are set out on page 1 of this report.

Organisational structure

The Provincial Council (board of trustees) is bound to a common vision contained in the Spiritan Rule of Life promulgated by the international body of the Congregation of the Holy Spirit from its headquarters in Rome. This is applied to local circumstances by a gathering (Chapter) of the general body of the British Province members. However, the Province is an independent legal entity under British law, responsible for its own financial concerns.

The Provincial Council is responsible for the overall governance and management of the Province.

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Trustees’ report Year to 31 December 2021

Structure, governance and management (continued)

Organisational structure (continued)

The main administration office of the Province during 2021 was in Chester.

For the day-to-day management of the Province, the trustees have appointed Community Leaders and Project Directors to oversee each of its communities and missionary projects.

These Community Leaders and Project Directors meet regularly with the trustees to ensure that the charity's governance and objectives are complied with.

Each community and project has its own advisory committee that meets on a regular basis. These committees submit regular reports to the Provincial Council/trustees.

During 2021 the trustees met regularly physically and through online platforms.

The Provincial Bursar, assisted by the Provincial Finance Team, administers the affairs of the central administration and oversees the community bursars and the project administrators who are responsible for the day-to-day management of the Province. The Provincial Bursar and the Provincial Council are also supported by advice from their professional advisors.

Each community and missionary project operates its own bank account in a centralised accounting structure with the Province's bankers. All bank accounts are monitored by the Provincial Bursar’s office.

Key management personnel

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

All trustees are members of the Congregation and whilst their living and personal expenses are borne by the charity they receive no remuneration or reimbursement of expenses in connection with their duties as trustees or their role as key management personnel.

The key management personnel of the subsidiary charities, Just Youth and Revive CIO, comprise their respective trustees. None of the trustees of Just Youth or Revive CIO received any remuneration during the year.

Risk management

The advisory committees of each project and community bursars are responsible for overseeing risk assessments. All significant activities undertaken by the Province are subject to a risk review. The major risks are ranked in terms of their potential impact and probability. The advisory committees and community bursars then report all major risks to the Provincial Bursar's office and Provincial Council who ensure that adequate systems are in place to manage the risks.

16 Congregation of the Holy Spirit and the Immaculate Heart of Mary, British Province

Trustees’ report Year to 31 December 2021

Structure, governance and management (continued)

Risk management (continued)

In addition to the challenges faced because of the Covid-19 pandemic (see above), this work has identified a number of key risks for the charity which are described below together with the principal ways in which they are mitigated:

Complying with the policy means:

The Spiritans Safeguarding Policy and Procedures are based on the principles and guidelines set out in the National Safeguarding Policy:

Respect for the innate dignity of every person is a fundamental principle. Integral to this is the recognition of the right of all children, which must be respected, protected, cared for and nurtured - a right rooted in the Gospel and Christian tradition as well as in international, domestic and canon law.

The Spiritans always liaise closely with statutory agencies to ensure that if a disclosure is made, the correct procedure is followed. The Province has a Spiritan who is responsible for compliance with this policy.

17 Congregation of the Holy Spirit and the Immaculate Heart of Mary, British Province

Trustees. report Year to 31 December 2021 Structure, governance and management (continued) Risk management (continued) The charity donates s18nlflcant sums in support of the wider Congregation and other or¥anisation5. The vast majority of donations sent overseas are to fund projects administered dlrectly by members of the international Congregation. Whether or not the fund5 are used here in Great Britaln or overseas, the trustees always ensure that they are fully brfefed about and famillar wath the work of a potentlal reciplent of funds, that funds are transferred via bank transfer, that proof of recelpt Is obtalned and that, wherever posslble land always In the case of monles sent overseas), a full written report of how the monie5 have been utllised and applied 15 obtained from the reclplent. One of the charltys prfnclpal assets comprfse5 Ilsted Investments, the value of whlch Is dependent on movement5 In Unlted Klngdom and world stock markets. The Investments are managed by reputable Investment managers who adhere to a policy agreed by the tru5tee5. The trustees meet wlth the investment manaqer5 and the manager's performance and that of the portfollo are monltored. The Investment strategy Is assessed regularly to ensure It remalns approprlate to the charlty s needs both now and In the future. Fundraising policy The charfty alms to achleve best practlce In the way In whlch It communlcates wlth donors and other supporters. It takes care with both the tone of Its communications and the accuracy of Its data to mlnlmlse the pressures on supporters. It applles best practlce to protect 5UPPOrters' data and never sells data, It never swaps data and ensures that communlcatlon preferences can be changed at any tlme. The charlty manages Its own fundraisln8 actlvftles and does not employ the services of Professional Fundralsers. The charlty undertakes to react to and investlgate any complalnts regardlng Its fundraislng actlvlties and to learn from them and improve Its servlce. During 2021, the charlty recelved no complalnts about Its fundralslng activitles. Signed on behalf of the trustees Approved on: 18 Congregation of the Holy Spirit and the Immaculate Heart of Mary, British Province

Independent auditor’s report 31 December 2021

Independent auditor’s report to the trustees of The Congregation of the Holy Spirit and the Immaculate Heart of Mary, British Province

Opinion

We have audited the accounts of The Congregation of the Holy Spirit and the Immaculate Heart of Mary, British Province (the ‘parent charity’) and of The Congregation of the Holy Spirit and the Immaculate Heart of Mary, British Province and its subsidiaries (the ‘group’) for the year ended 31 December 2021 which comprise the group and parent charity statement of financial activities, the group and parent balance sheets, the consolidated 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:

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 group 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.

19 Congregation of the Holy Spirit and the Immaculate Heart of Mary, British Province

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:

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement, 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 group’s and the parent 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 group or the parent charity or to cease operations, or have no realistic alternative but to do so.

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

20 Congregation of the Holy Spirit and the Immaculate Heart of Mary, British Province

Independent auditor’s report 31 December 2021

Auditor’s responsibilities for the audit of the accounts (continued)

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:

We assessed the susceptibility of the charity’s accounts to material misstatement, including obtaining an understanding of how fraud might occur, by:

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

21 Congregation of the Holy Spirit and the Immaculate Heart of Mary, British Province

Independent auditor’s report 31 December 2021

Auditor’s responsibilities for the audit of the accounts (continued)

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

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.

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, and in accordance with Section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and Regulation 10 of the Charities Accounts (Scotland) Regulations 2006. 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

13 July 2022

Buzzacott LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006

22 Congregation of the Holy Spirit and the Immaculate Heart of Mary, British Province

Consolidated statement of financial activities Year to 31 December 2021

Notes
Unrestricted
funds
£


Restricted
funds
£


Total
funds
2021
£		 Unrestricted
funds (as
restated)
£

Restricted
funds (as
restated)
£
Total
funds
2020
£
Income from:
Donations and legacies
1
Other trading activities
2
Investments and interest receivable
3
Charitable activities
. Enrichment activities
. Youth education
4
Other sources
. Coronavirus Job Retention Scheme
. Foreign exchange gains
. Surplus on disposal of tangible
fixed assets
. Miscellaneous income
Total income
Expenditure on:
Raising funds
5
Charitable activities
. Enrichment projects
6
. Youth activities
7
. Support of members of the
Congregation and their ministry
8
. Donations and support of
overseas missions
9
Other costs
. Foreign exchange losses
Total expenditure
Net income (expenditure) for the year
before investment gains
11
Net gains on investments
. Listed investments
. Investment properties
15
Net income and net movement in funds
Reconciliation of funds:
Fund balances brought forward
at 1 January 2021
. As previously stated
. Prior year adjustment (note 24)
. As restated
Fund balances carried forward
at 31 December 2021
1,277,094

45,961

320,763
—

28,337
11,108
2,799
632
9,677

145,345

—

—

177,747

—


—

—

—

—
1,422,439

45,961

320,763


177,747

28,337


11,108

2,799

632

9,677		 1,014,595
66,454
304,023
—
17,954
32,461
—
3,549
—
91,162

—

—

164,276

—

—

—

—

—		 1,105,757

66,454

304,023

164,276

17,954

32,461

—

3,549

—
1,696,371
323,092		 2,019,463 1,439,036
255,438		 1,694,474

43,315

28,260

84,126

1,367,972

35,248
—


—

151,077

—

—

157,165

—


43,315

179,337

84,126
1,367,972

192,413

—		 45,241
97,895
72,559
1,141,288
155,823
7,253
—

72,525

—

—

99,218

—
45,241

170,420

72,559
1,141,288

255,041

7,253
1,558,921
308,242		 1,867,163 1,520,059
171,743		 1,691,802

137,450

14,850

152,300

 (81,023)
83,695
2,672
248,692
—
—
—		 248,692
—		 59,107
1,505,000		 —
—
59,107

1,505,000

248,692
—
248,692		 1,564,107
—		 1,564,107
386,142

14,850

400,992

 1,483,084
83,695		 1,566,779
12,892,533
135,869
337,151

(135,869)		 13,229,684
—		 11,503,157
42,161
159,748

(42,161)		 11,662,905

—
13,028,402
201,282		 13,229,684 11,545,318
117,587		 11,662,905
13,414,544

216,132
13,630,676		 13,028,402
201,282		 13,229,684

All of the group’s activities derived from continuing operations during the above two financial years.

The group has no recognised gains and losses other than those shown in the statement of financial activities above and, therefore, no separate statement of total recognised gains and losses has been presented.

23 Congregation of the Holy Spirit and the Immaculate Heart of Mary, British Province

Charity statement of financial activities Year to 31 December 2021

Notes Unrestricted
funds
£


Restricted
funds
£


Total
funds
2021
£		 Unrestricted
funds (as
restated)
£
Restricted
funds (as
restated)
£



Total
funds
2020
£
Income from:
Donations and legacies
1
Other trading activities
2
Investments and interest receivable
3
Charitable activities
. Enrichment activities
. Youth education
Other sources
. Coronavirus Job Retention Scheme
. Foreign exchange gains
. Surplus on disposal of tangible
fixed assets
. Miscellaneous income
Total income
Expenditure on:
Raising funds
5
Charitable activities
. Youth activities
. Support of members of the
Congregation and their ministry
8
. Donations and support of
overseas missions
9
Other costs
. Foreign exchange losses
Total expenditure
Net income (expenditure) for the year
before investment gains
11
Net gains on investments
. Listed investments
. Investment properties
15
Net income and net movement in funds
Reconciliation of funds:
Fund balances brought forward
at 1 January 2021
. As previously stated
. Prior year adjustment (note 24)
. As restated
Fund balances carried forward
at 31 December 2021		 1,268,265
33,517
320,515
60,000
—
2,799
632
9,677
144,604

—

—

—

—

—

—

—
1,412,869

33,517

320,515

60,000

—

2,799

632

9,677		 1,001,214
54,459
302,913
60,000
18,745
3,549
—
—		 88,293
—
—
—
—
—
—
—
1,089,507

54,459

302,913

60,000

18,745

3,549

—

—
1,695,405
144,604
1,840,009		 1,440,880 88,293
1,529,173
40,615
60,000
1,367,972
90,048
—
—

—

—

157,165
—
40,615

60,000

1,367,972

247,213
—		 40,641
60,000
1,141,288
227,428
7,253		 —
—
—
99,218
—
40,641

60,000

1,141,288

326,646

7,253
1,558,635
157,165
1,715,800		 1,476,610 99,218
1,575,828
136,770
(12,561)
124,209		 (35,730) (10,925)
(46,655)
248,692
—
—
—		 248,692
—		 59,107
1,505,000		 —
—
59,107

1,505,000
248,692
—		 248,692 1,564,107 —
1,564,107
385,462
(12,561)
372,901		 1,528,377 (10,925)
1,517,452
12,790,275
135,869
182,844

(135,869)		 12,973,119
—		 11,355,606
42,161
100,061

(42,161)		 11,455,667
—
12,926,144
46,975		 12,973,119 11,397,767 57,900 11,455,667
13,311,606
34,414		 13,346,020 12,926,144 46,975 12,973,119

All of the charity’s activities derived from continuing operations during the above two financial years.

The charity has no recognised gains and losses other than those shown in the statement of financial activities above and, therefore, no separate statement of total recognised gains and losses has been presented.

24 Congregation of the Holy Spirit and the Immaculate Heart of Mary, British Province

Balance sheets 31 December 2021 Group Charlty 2020 la5 restatedl 2020 las restated) Z021 2021 Flxed assets Tanglble a55ets Investments 14 2,468,305 15 10,031,365 12,499,670 2,457,715 2,452.962 9,747,823 10,031,365 12,205,538 12,484 327 2,445,099 9,747,823 12,192,922 Curr•nt ass•ts Debtors Short term de1￿￿tS Cjsh at bank and In ￿ftd 16 213.214 448,263 613,207 1,274,684 192,346 447,977 624,820 1,265,143 210,524 379,579 388,067 978,170 1Z1,708 379,541 506,620 1,CQ7,869 Cr•dltors.' amounts falllnq due ￿thIn one year 17 {143,6781 1240,9971 1116,4771 1227,6ni Net current asset> 1.131.006 1,024,146 861,693 780,197 Total n•t aH•ts 13.630.676 13,229,684 13.346,020 12,973,119 ft•Pr•￿nt•d by. Re5tTlcted lunds Unrestrtcted funds DeslBnated f¢Jnds Tan8lble flxed assets fund General fund5 18 216,1 J2 201,282 34,414 46,975 19 20 7.578.352 2.468.305 3,367.887 13,414,544 7,116,352 7.578.352 2,457,715 2.452,962 3,454,335 3.280,292 13,028,402 13,311,606 7,116,352 2,445,099 3,364,693 12,926,144 13,630.676 13,229,684 13,346,020 12,973,119 The accounts were approved by the trustees and slgned on thelr behalf by: Trustee Approved on: 125 Congregation of the Holy Spirit and the Immaculate Heart of Mary, British Province

Consolidated statement of cash flows Year to 31 December 2021

Notes
Cash flows from operating activities:

Net cash used in 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 1 January 2021
B
Cash and cash equivalents at 31 December 2021
B		 2021
£

(261,283)


320,763
634
(36,591)
701,784
(733,034)
253,556

(7,727)

1,123,542

1,115,815		 2020
£
(232,741)
304,023
3,553
(47,139)
729,443
(766,103)
223,777
(8,964)
1,132,506
1,123,542

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

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

2021
£

2020
£
Net income and net movement in funds (as per the statement of financial activities)
Adjustments for:
Depreciation charge
Gains on investments
Investment income and interest receivable
Surplus on disposal of tangible fixed assets
(Increase) decrease in debtors
Decrease in creditors
Net cash used in operating activities		 400,992

25,999
(248,692)
(320,763)
(632)
(20,868)
**(97,319) **
1,566,779


27,364

(1,564,107)

(304,023)

(3,549)

56,180

(11,385)
**(261,283) **
(232,741)
Analysis of cash and cash equivalents 2021
£
613,207
448,263
54,345
1,115,815

2020
£

624,820

447,977

50,745

1,123,542
Cash at bank and in hand
Short term deposits (less than 3 months)
Cash held by investment managers
Total cash and cash equivalents

B Analysis of cash and cash equivalents

C Analysis of changes in net debt

At 1 January
2021
£		 Cash flows
£
(7,727)

At 31
December 2021
£

1,115,815
Cash at bank and in hand 1,123,542

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.

26 Congregation of the Holy Spirit and the Immaculate Heart of Mary, British Province

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. Comparative information is provided in respect to 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 (Charities SORP FRS 102) (effective 1 January 2020) 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.

Critical accounting estimates and areas of judgement

Preparation of the accounts requires the trustees and management to make significant judgements and estimates.

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

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.

27 Congregation of the Holy Spirit and the Immaculate Heart of Mary, British Province

Principal accounting policies 31 December 2021

Assessment of going concern (continued)

The trustees are of the opinion that the charity and group will have sufficient resources to meet their 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, the year ending 31 December 2022, the most significant areas that 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).

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 and group to continue as a going concern.

Basis of consolidation

The consolidated statement of financial activities and group balance sheet consolidate the accounts of The Congregation of the Holy Spirit and the Immaculate Heart of Mary, British Province and its subsidiary charities, Just Youth and Revive CIO, made up at the balance sheet date.

Income recognition

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 is deferred only when the group or charity has to fulfil conditions before becoming entitled to it or where the donor has specified that the income is to be expended in a future accounting period.

Income comprises donations and legacies, income from trading activities, investment income and interest receivable, income from charitable activities and other income including foreign exchange gains, the surplus on disposal of tangible fixed assets and monies from the Coronavirus Job Retention Scheme.

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.

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.

28 Congregation of the Holy Spirit and the Immaculate Heart of Mary, British Province

Principal accounting policies 31 December 2021

Income recognition (continued)

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.

Income from other trading activities comprises income from fundraising activities and the lottery organized by Just Youth. Income from the lottery is included in the accounts when the lottery is drawn with income being deferred until such time as the draw takes place. Income from other fundraising events and appeals is included in the accounts when the income is received or when it is probable that income will be received and when it can be measured reliably.

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 investment properties comprises rent receivable and it is recognised in the statement of financial activities when due under tenancy or lease agreements.

Income from charitable activities included fees and related income in respect to the provision of charitable work are measured at the fair value of the consideration received or receivable, excluding discounts or rebates.

The surplus on the disposal of tangible fixed assets is calculated as the difference between the sale proceeds net of sale costs and the net book value of the asset immediately prior to disposal. It is accounted for once legal completion of the disposal has taken place.

Monies from the Coronavirus Job Retention Scheme are recognised in the statement of financial activities when the funds have been applied for and the amount receivable has been quantified.

Expenditure recognition

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the group or 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. Expenditure comprises direct costs and support costs. All expenses, including support costs, are allocated or apportioned to the applicable expenditure headings. The classification between activities is as follows: Expenditure comprises the following:

29 Congregation of the Holy Spirit and the Immaculate Heart of Mary, British Province

Principal accounting policies 31 December 2021

Expenditure recognition (continued)

Expenditure incurred in the provision of Enrichment Projects including costs of providing travel, courses and support to youths at the Revive centre in Salford.

Expenditure on youth projects and the work of the charitable subsidiary Just Youth.

Expenditure on the support of members of the Congregation and their ministry which allows members to carry out the work of the charity in providing spiritual welfare to Roman Catholics through saying masses, administering sacraments and other spiritual support and guidance as well as the relief of poverty and addiction.

The provision of donations and financial support to the Congregation’s overseas missions.

All expenditure is stated inclusive of irrecoverable VAT.

Allocation of support and governance costs

Support costs represent indirect charitable expenditure. In order to carry out the primary purposes of the charity it is necessary to provide support in the form of personnel development, financial procedures, provision of office services and equipment and a suitable working environment.

Governance costs 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.

Support costs and governance costs are allocated based on an estimate of the time members spend on each activity.

30 Congregation of the Holy Spirit and the Immaculate Heart of Mary, British Province

Principal accounting policies 31 December 2021

Tangible fixed assets and depreciation

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

a) Freehold land and buildings

Freehold land and buildings are used wholly or mainly for private residential accommodation are stated at cost, or where cost is not available, at trustees' valuations made in 2001 and 2013. Such buildings are not depreciated. Their value and condition are reviewed annually by the trustees, who are satisfied that their residual value is not materially different from their book value. As permitted by FRS 102, with effect from 1 January 2014 the values assigned to properties held at that date are now deemed their cost.

Assets donated to the charity for its own use are included as part of income in the year of the gift. Assets falling within the definition of tangible fixed assets are capitalised on the charity’s balance sheet and depreciated in accordance with the appropriate policy. Other assets are treated as expenditure in the year of the gift.

Expenditure on the purchase and replacement of computers, furniture and equipment is capitalised and depreciated over a four-year period on a straight-line basis.

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

Investments

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

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

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

The valuation of investment properties (i.e. those not occupied by Spiritans and rented out to third parties at a commercial rent), is based on current open market valuation. These properties are not depreciated.

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

31 Congregation of the Holy Spirit and the Immaculate Heart of Mary, British Province

Principal accounting policies 31 December 2021

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.

Fund structure

Restricted funds are monies raised for, and their used restricted to, a specific purpose, or donations subject to donor imposed conditions.

Designated funds are monies set aside of unrestricted general funds and designated for specific purposes by the trustees.

The tangible fixed assets fund comprises the net book value of charity’s tangible fixed assets, the existence of which is fundamental to the charity being able to perform its charitable work and thereby achieve its charitable objectives. The value represented by such assets should not be regarded, therefore, as realisable.

General funds represent those monies that are freely available for application towards achieving any charitable purpose that fall within the charity's charitable objects.

Services provided by members of the Congregation

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

Leased assets

Rentals applicable to operating leases where substantially all the benefits and risks of the ownership remain with the lessor are charged on a straight line basis over the lease term.

Pension costs

Contributions in respect of defined contribution pension schemes are charged to the statement of financial activities when they are payable to the scheme. The group’s and charity’s contributions are restricted to the contributions disclosed in note 12. There were no outstanding contributions at the year end. The charity has no liability beyond making its contributions and paying across the deductions for the employees’ contributions.

32 Congregation of the Holy Spirit and the Immaculate Heart of Mary, British Province

Principal accounting policies 31 December 2021

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rates of exchange ruling date at the date of transaction. Exchange differences are recognised in the statement of financial activities.

33

Congregation of the Holy Spirit and the Immaculate Heart of Mary, British Province

Notes to the accounts 31 December 2021

1 Income from: donations and legacies

Group Unrestricted
funds
£


Restricted
funds
£		 Total
funds
2021
£		 Unrestricted
funds (as
restated)
£



Restricted
funds (as
restated)
£		 Total
funds
2020
£
Salaries and pensions of individual
religious received under Gift Aid
or Deed of Covenant
Other donations
Legacies
Total funds		 498,875
573,952
**204,267 **
—

145,345

**— **
498,875

719,297

**204,267 **		 410,453

379,126

225,016
—

91,162

—
410,453

470,288

225,016
**1,277,094 **
**145,345 **		 **1,422,439 **
1,014,595
91,162
1,105,757



Restricted
funds
£		 Total
funds
2021
£		 Unrestricted
funds (as
restated)
£



Restricted
funds (as
restated)
£		 Total
funds
2020
£
Charity Unrestricted
funds
£
Salaries and pensions of individual
religious received under Gift Aid or
Deed of Covenant
Other donations
Legacies
Total funds

498,875
565,123
**204,267 **
—

144,604

**— **
498,875

709,727

**204,267 **		 410,453

365,745

225,016
—

88,293

—		 410,453
454,038
225,016
**1,268,265 **
**144,604 **		 **1,412,869 **
1,001,214
88,293		 1,089,507

2 Income from: other trading activities

Income from: other trading activities
Group Unrestricted
Total
2021
£


Total
2020
£
Fundraising and appeals
Rent
Missionwide subscriptions
Lottery
Raffles and charity shop
Total funds		 4,326
3,282
4,713
17,204
16,436
23,891

6,545

5,159

15,454

15,405
45,961
66,454
Charity
Total
2021
£


Total
2020
£
Fundraising and appeals
Rent
Missionwide subscriptions
Lottery
Raffles and charity shop
Total funds		 1,176
1,232
4,713
9,960
16,436
21,871

4,145

5,159

7,879

15,405
33,517
54,459

34 Congregation of the Holy Spirit and the Immaculate Heart of Mary, British Province

Notes to the accounts 31 December 2021

3 Investment income and interest receivable

Unrestricted Unrestricted Unrestricted Unrestricted
Group Charity
Total
2021
£


Total
2020
£		 Total
2021
£


Total
2020
£
Income from listed investments
. UK equities
. UK fixed interest
. UK unit trusts
. Overseas equities
. Overseas fixed interest
. Overseas unit trusts
. Alternative investments
. Property
Interest receivable
. Bank and loan interest
Income from investment properties
Total		 15,542
5,945
2,523
3,860
7,783
21,605
5,217
—
14,991

6,205

-

5,870

3,963

4,586

5,269

2,367		 15,542
5,945
2,523
3,860
7,783
21,605
5,217
—		 14,991
6,205
-
5,870
3,963
4,586
5,269
2,367
62,475
43,251		 62,475 43,251
426
1,415		 178
305
257,862
259,357		 257,862
259,357
320,763
304,023		 320,515
302,913

4 Income from charitable activities: Youth education

Group Unrestricted Unrestricted
Total
2021
£


Total
2020
£
Service level agreements
. Chaplaincy agreements with schools
.. Regular
.. Ad-hoc
Total funds		 25,297
3,040
15,854

2,100
28,337
17,954

5 Expenditure on: Raising funds

Expenditure on: Raising funds
Group Unrestricted
Total
2021
£


Total
2020
£
Cost of generating donations and legacies
Fundraising trading
. Lottery
. Raffles and charity shop
Investment management fees
Governance (note 10)
Total funds		 200
6,250
6,191
19,915
10,759
1,180

4,600

10,124

17,440
11,897
43,315 45,241
Charity
Total
2021
£


Total
2020
£
Cost of generating donations and legacies
Fundraising trading
. Lottery
. Raffles and charity shop
Investment management fees
Governance (note 10)
Total funds		 200
3,550
6,191
19,915
10,759
1,180

—

10,124

17,440

11,897
40,615
40,641

35 Congregation of the Holy Spirit and the Immaculate Heart of Mary, British Province

Notes to the accounts 31 December 2021

6 Expenditure on charitable activities: Enrichment projects

Group Unrestricted
funds
£
Restricted
funds
£


Total
funds
2021
£



Unrestricted
funds
£


Restricted
funds
£


Total
funds
2020
£
Total funds 28,260
151,077
179,337
97,895
72,525
170,420

7 Expenditure on charitable activities: Youth activities

Group Unrestricted
Total
2021
£
Total
2020
£
9,053
9,135
21,581
17,582
21,896
18,322
7,023
4,519
17,131
17,533
2,824
914
192
36
4,426
4,518
84,126
72,559		 Unrestricted
Total
2021
£
Total
2020
£
9,053
9,135
21,581
17,582
21,896
18,322
7,023
4,519
17,131
17,533
2,824
914
192
36
4,426
4,518
84,126
72,559



Total
2020
£
Activity leaders and coordinators
Residential workers’ food and expenses
Premises
Materials, resources and training
Travel and motor
Cost of activities and outings
Promotion of youth activities
Legal and professional fees
Total funds
9,135

17,582

18,322

4,519

17,533

914

36

4,518

72,559

8 Expenditure on charitable activities: Support of members of the Congregation and their ministry

ministry
Group and charity Unrestricted
Total
2021
£


Total
2020
£
Premises
Members’ personal expenses
Education, training and spiritual renewal
Other expenses, including mission awareness
Governance (note 10)		 292,198
833,811
32,083
20,948
188,932
277,669

661,658

39,288

27,835

134,838
1,367,972
1,141,288

36 Congregation of the Holy Spirit and the Immaculate Heart of Mary, British Province

Notes to the accounts 31 December 2021

9 Expenditure on charitable activities: Donations and support of overseas missions

Group Unrestricted
funds
£


Restricted
funds
£


Total
funds
2021
£



Unrestricted
funds (as
restated)
£



Restricted
funds (as
restated)
£



Total
funds
2020
£
General donations
Donations to the missions
Write bank donation to the
Generalate
Governance (note 10)
Total funds		 30,490
106,499
(112,500)
10,759

—

157,165

—

—
30,490

263,664
(112,500)

10,759
21,461

122,465

—

11,897
—

99,218

—

—
21,461

221,683

—

11,897
35,248
157,165
192,413
155,823
99,218
255,041



Restricted
funds
£


Total
funds
2021
£



Unrestricted
funds (as
restated)
£



Restricted
funds (as
restated)
£



Total
funds
2020
£
Charity Unrestricted
funds
£
General donations
Donations to the missions
Donations to Just Youth
Donations to Revive CIO
Write bank donation to the
Generalate
Governance (note 10)
Total funds		 30,490
106,499
36,300
18,500
(112,500)
10,759

—

157,165

—

—

—

—
30,490

263,664

36,300

18,500
(112,500)

10,759
21,461

122,465

49,405

22,200

—

11,897
—

99,218

—

—

—

—
21,461

221,683

49,405

22,200

—

11,897
90,048
157,165
247,213
227,428
99,218
326,646

In the year to 31 December 2016, the charity agreed to donate £112,500 to the Generalate in order for it to apply these funds to overseas monks in their retirement. This amount was held within creditors. The trustees, in conjunction with the Generalate, have now considered it appropriate for the funds to be administered from the UK charity and, therefore, these funds have been written back to expenditure on donations and support of overseas missions above.

10 Governance costs

Group Unrestricted Unrestricted
Total
2021
£


Total
2020
£
Legal and professional fees
Central administration
Bank charges		 102,075
103,457
4,918
92,025

62,748

3,859
210,450
158,632

Governance costs are allocated as follows: £188,932 (2020 – £134,838) to support of members of the Congregation and their ministry, £10,759 (2020 – £11,897) to donations and support of overseas missions), £10,759 (2020 - £11,897) to raising funds and £nil (2020 - £nil) to enrichment activities.

37 Congregation of the Holy Spirit and the Immaculate Heart of Mary, British Province

Notes to the accounts 31 December 2021

11 Net income (expenditure) for the year before investment gains This is stated after charging (crediting):

Group Total
funds
2021
£		 Total
funds
2020
£
234,145
60,012
14,200
(2,680)
4,200
(1,588)
27,364
Total
funds
2020
£
114,811
51,164
14,200
(2,680)
23,158




Total
funds
2020
£
Staff costs (note 12)
Operating lease rentals
Auditor’s remuneration
. Statutory audit services – charity
.. Current year
.. Prior year
. Statutory audit services – subsidiaries
.. Current year
.. Prior year
Depreciation		 230,371
65,186
11,100
(3,640)
5,225
840
25,999
Charity Total
funds
2021
£
Staff costs (note 12)
Operating lease rentals
Auditor’s remuneration
. Statutory audit services
.. Current year
.. Prior year
Depreciation		 119,912
57,690
11,100
(3,640)
19,482
Staff costs and remuneration of key management personnel
Group
Staff costs during the year were as follows:
Wages and salaries
Social security costs
Pension costs
Staff costs per function were as follows:
Youth and enrichment projects
Support of the members of the Congregation and their ministry		 Total
funds
2021
£
217,805
4,636
7,930
217,041

9,141

7,963
230,371
234,145
110,459
119,912
230,371
Total
funds
2021
£		 119,334
114,811
234,145
Charity



Total
funds
2020
£

106,370

4,641

3,800

114,811
Staff costs during the year were as follows:
Wages and salaries
Social security costs
Pension costs		 114,649
1,235
4,028
119,912

12 Staff costs and remuneration of key management personnel

There were no employees who earned more than £60,000 per annum (including benefits) during the year (2020 - none).

38 Congregation of the Holy Spirit and the Immaculate Heart of Mary, British Province

Notes to the accounts 31 December 2021

12 Staff costs and remuneration of key management personnel (continued)

The average number of employees, analysed by function, was as follows:

Group Total
2021		 Total
2020
Youth and enrichment projects
Support of the members of the Congregation and their ministry		 6
10		 6
10
16 16

The key management personnel in charge of directing and controlling, running and operating the group and charity on a day-to-day basis comprise the trustees.

As members of the Congregation, the trustees' living and personal expenses during the year were borne by the charity but they received no remuneration or reimbursement of expenses in connection with their duties as trustees or members of key management personnel during the year (2020 - £nil).

The key management personnel of the subsidiary charities, Just Youth and Revive CIO, comprise their respective trustees. None of the trustees of Just Youth or Revive CIO received any remuneration during the year (2020 - £nil).

As members of the Congregation, none of the trustees have resources of their own as all earnings, pensions and other income have been donated to the charity under a Gift Aid compliant Deed of Covenant. During the year, the total donated by the trustees was £20,100 (2020 - £18,400).

13 Taxation

The Congregation of the Holy Spirit and the Immaculate Heart of Mary, Just Youth and Revive CIO are all registered charities and therefore are not liable to income tax or corporation tax on income derived from their charitable activities, as it falls within the various exemptions available to registered charities.

14 Tangible fixed assets

Tangible fixed assets
Group Freehold
land and
buildings
£
Computers,
furniture and
equipment
£		 Motor
vehicles
£


Total
£
Cost
At 1 January 2021
Additions
Disposals
At 31 December 2021
Depreciation
At 1 January 2021
Charge for the year
Disposals
At 31 December 2021
Net book values
At 31 December 2021
At 31 December 2020		 2,407,612
12,930
—
150,231

9,244

—		 128,806
14,417
(5,140)
2,686,649

36,591

(5,140)
2,420,542
159,475		 138,083
2,718,100
—
—
—
130,626

11,807

—

98,308
14.192
(5,138)


228,934

25,999
(5,138)
—
142,433
107,362
249,795
2,420,542
17,042

30,721


2,468,305
2,407,612
19,605		 30,498
2,457,715

39 Congregation of the Holy Spirit and the Immaculate Heart of Mary, British Province

Notes to the accounts 31 December 2021

14 Tangible fixed assets (continued)

Tangible fixed assets(continued)
Charity Freehold
land and
buildings
£		 Computers,
furniture and
equipment
£		 Motor
vehicles
£


Total
£

2,669,827

27,347
(5,140)

2,692,034

224,728

19,482
(5,138)

239,072

2,452,962

2,445,099
Cost
At 1 January 2021
Additions
Disposals
At 31 December 2021
Depreciation
At 1 January 2021
Charge for the year
Disposals
At 31 December 2021
Net book values
At 31 December 2021
At 31 December 2020		 2,407,612
12,930
—
145,904

—

—		 116,311
14,417
(5,140)
2,420,542
145,904		 125,588
—
—
—
129,544

8,414
 95,184
11,068
(5,138)
—
137,958		 101,114
2,420,542
7,946		 24,474
2,407,612
16,360		 21,127

A number of freehold and long leasehold properties are held at book values based on valuations made in 2001 and 2003. As permitted under the transitional provisions of FRS 102 (section 35), the group and charity have elected to use these valuations as deemed cost.

The remaining properties and other tangible fixed assets are held at cost less accumulated depreciation where applicable.

It is likely that there are material differences between the open market values of the charity’s land and buildings and their book values. These arise from the specialised nature of some properties and the effects of inflation. The amount of such differences cannot be ascertained without incurring significant costs, which, in the opinion of trustees, is not justified in terms of the benefit to the users of the accounts.

40 Congregation of the Holy Spirit and the Immaculate Heart of Mary, British Province

Notes to the accounts 31 December 2021

15 Investments

Investments
Group and charity
Listed investments and cash held for re-investment (note a)
Insurance bonds (note b)
Investment properties (note c)
Investment in subsidiary undertakings (note d)		 Total
2021
£


Total
2020
£

2,678,223

114,600

6,955,000
—

9,747,823
2,959,240
117,125
6,955,000
—
10,031,365

a. Listed investments and cash held for re-investment

Listed investments and cash held for re-investment
Group and charity
Listed investments
Market value at 1 January 2021
Additions at cost
Disposals at book value (see below)
Net unrealised gains
Market value at 31 December 2021
Cash held by investment managers for re-investment
Cost of listed investments at 31 December 2021		 Total
2021
£
2,627,478
733,034
(686,321)
230,704
2,904,895
54,345
2,959,240
2,407,014

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

Group and charity Total
2021
£
701,784
(15,463)
686,321


Total
2020
£
Proceeds
(Gains) losses
Disposals at book value
729,443
46

729,489

Listed investments held at 31 December 2021 comprised the following:

Group and charity Total
2021
£
639,398
219,334
45,226
618,614
545,481
326,663
100,942
409,237
2,904,895


Total
2020
£
UK equities
UK unit trusts
UK fixed interest
Overseas equities
Overseas fixed interest
Overseas unit trusts
Property
Alternative assets
573,723

178,159

191,163

491,175

304,703

440,972

75,814

371,769

2,627,478

At 31 December 2021, listed investments included the following individual holding deemed material when compared with the overall portfolio valuation at that date:

Group and charity Market value
of holding
£
145,654


Percentage of
portfolio
%
Ishares USD Treasury BD 1-3 years Ucits
5.01

41

Congregation of the Holy Spirit and the Immaculate Heart of Mary, British Province

Notes to the accounts 31 December 2021

15 Investments (continued)

c. Group and charity Total
2021
£


Total
2020
£
Market value at 1 January 2021
Unrealised gains
Market value at 31 December 2021		 114,600
2,525
109,689

4,911
117,125
114,600
Investment properties
Group and charity		 Total
2021
£


Total
2020
£

5,450,000

1,505,000

6,955,000
At 1 January 2021
Net unrealised gains on revaluation
At 31 December 2021		 6,955,000
—
6,955,000

The freehold properties are stated at their fair value based on open market value, which has been determined by the trustees with professional assistance provided by estate agents local to the properties concerned.

Investment properties comprise the following:

d. Investment in subsidiary undertakings

Just Youth, a charity constituted as a charitable trust and registered in England and Wales (Charity Registration Number 1072491) is controlled by the charity by virtue of the fact that it has the same trustees, shares administrative services and carries out work consistent with, and supplementary to, the charity.

42 Congregation of the Holy Spirit and the Immaculate Heart of Mary, British Province

Notes to the accounts 31 December 2021

15 Investments (continued)

d. Investment in subsidiary undertakings (continued)

The following is a summary of the accounts of Just Youth for the year ended 31 December 2021, which have been included in the consolidated accounts.

Total
2021
£


Total
2020
£
Income
Expenditure
Net movement in funds
Total funds brought forward
Total funds carried forward		 142,852
(146,826)
142,141
(137,159)
(3,974)
71,950
4,982

66,968
67,976
71,950

Revive CIO, a charity constituted as a Charitable Incorporated Organisation and registered in England and Wales (Charity Registration Number 1183006) is controlled by the charity by virtue of the fact that it has the same trustees, shares administrative services and carries out work consistent with, and supplementary to, the charity.

The following is a summary of the accounts of Revive CIO for the year ended 31 December 2021, which have been included in the consolidated accounts.

Total
Year to 31
December
2021
£




Total
Year to 31
December
2020
£
Income
Expenditure
Net movement in funds
Total funds brought forward
Total funds carried forward		 215,592
(183,527)
214,765
(170,420)
32,065
184,615
44,345

140,270
216,680
184,615

16 Debtors

Debtors
Group Charity
2021
£
2020
£		 2021
£		 2020
£
Amounts due from other Spiritan bodies
Amount due from the Generalate of the Spiritans
Accrued income
Other debtors and prepayments		 87,358
11,925
107,408
6,523
99,229

14,818

69,482

8,817		 87,358
11,925
107,408
3,833		 99,229
14,818
—
7,661
213,214
192,346		 210,524 121,708

43 Congregation of the Holy Spirit and the Immaculate Heart of Mary, British Province

Notes to the accounts 31 December 2021

17 Creditors: amounts falling due within one year

Group Group Charity
2021
£
2020
£
—
—
27,250
44,958
6,937
60,390
—
112,500
82,290
9,824
116,477
227,672		 Charity
2021
£
2020
£
—
—
27,250
44,958
6,937
60,390
—
112,500
82,290
9,824
116,477
227,672
2021
£

2020
£

2020
£
Deferred income
Accruals
Monies administered on behalf of members of the
Congregation
Amounts due to other Spiritans’ Provinces
Other creditors		 17,405
34,121

6,937
—
85,215
375

51,308

60,390

112,500

16,424
—

44,958

60,390

112,500

9,824
143,678
240,997
227,672

Deferred income comprises grant income received in advance.

Group Group Charity Charity
2021
£		 2020
£		 2021
£		 2020
£
Balance as at 1 January 2021
Amount released to income
Amount deferred in year
Balance as at 31 December 2021		 375
(375)
17,405		 375
(375)
375		 —
—
—		 —
—
—
17,405 375 — —

18 Restricted funds

The income funds of the group and charity include restricted funds comprising the following unexpended balances of donations and grants held on trusts to be applied for specific purpose.

Group At
1 January
2021 (as
restated)
£



Income
£

Expenditure
£		 At 31
December
2021
£

13,033

181,718
21,381

216,132
At 31
December
2021
£
Mission aid specific appeals
Revive – enrichment projects
City of Angels		 13,033
154,307
33,942

103,155
178,488
41,449

(103,155)

(151,077)

(54,010)
201,282 323,092
(308,242)
Charity At
1 January
2021 (as
restated)
£		 Income
£
103,155
41,449
144,604




Income (a
restated
£		 Expenditure
£
Mission aid specific appeals
City of Angels		 13,033
33,942		 (103,155)
(54,010)		 13,033
21,381
46,975 (157,165) 34,414
Group At
1 January
2020 (as
previously
stated)
£		 s
)

Expenditure
(as restated)
£

(39,002)

(72,525)

(60,216)

(171,743)


At 31
December
2020 (as
restated)
£

13,033

154,307

33,942

201,282
Mission aid specific appeals
Revive – enrichment projects
City of Angels		 49,861
59,687
50,200
44,335

167,145

43,958
159,748
255,438

44 Congregation of the Holy Spirit and the Immaculate Heart of Mary, British Province

Notes to the accounts 31 December 2021

18 Restricted funds (continued)

Charity At
1 January
2020 (as
previously
stated)
£

Prior year
adjustment
(note 24)
£

At 1 January
2020 (as
restated)
£


Income (as
restated)
£
Expenditure
(as restated)
£


At 31
December
2020 (as
restated)
£
Mission aid specific appeals
City of Angels		 49,861
50,200
(42,161)

—
7,700

50,200
44,335

43,958		 (39,002)
(60,216)
13,033
33,942
100,061
(42,161)
57,900
88,293		 (99,218)
46,975

The specific purposes for which the funds are to be applied are as follows:

Mission aid specific appeals fund

The mission aid specific appeals fund comprised donations that have been raised through appeals for specific charitable projects. The prior year adjustment reflects the restatement of income and expenditure thereof in prior years following a detailed review of the purpose for which the income was given and the conclusion that part of such income was for general purposes (note 24).

Revive - enrichment projects fund

This fund comprises donations and grants towards specific aspects of the enrichment projects.

City of Angels fund

This fund comprises donations raised for the Congregation’s mission in Brazil.

19 Designated funds

The funds of the group and charity include the following designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes:

Group and charity At
1 January
2021
£		 New
designations
£		 Transferred/
utilised
in the year
£



At 31
December
2021
£
Retirement fund
Overseas retirement fund
Homeless and alcoholics fund
Healthcare fund		 6,720,000
—
366,352
**30,000 **
100,000

362,000

—

—		 —
—
—
—
6,820,000

362,000

366,352

30,000
**7,116,352 **
462,000		 —
7,578,352
Groupand charity At
1 January
2020
£		 New
designations
£		 Transferred/
utilised
in the year
£



At 31
December
2020
£
Retirement fund
Homeless and alcoholics fund
Healthcare fund		 6,720,000
366,352
30,000
—

—

—		 —
—
—
6,720,000

366,352

30,000
7,116,352
—		 —
7,116,352

Retirement fund

The retirement fund is set aside by the trustees to look after the priests in their retirement.

Overseas retirement fund

The retirement fund is set aside by the trustees to look after the overseas priests in their retirement.

45

Congregation of the Holy Spirit and the Immaculate Heart of Mary, British Province

Notes to the accounts 31 December 2021

19 Designated funds

Homeless and alcoholics fund

The homeless and alcoholics fund represents monies set aside by the trustees to be used for the aid of the homeless and alcoholics.

Healthcare fund

The healthcare funds are monies set aside by the trustees to look after the priests' health.

20 Tangible fixed asset fund

Tangible fixed asset fund
Group At
1 January
2021
£
Movement
in year
£


At 31
December
2021
£
Tangible fixed assets fund 2,457,715 10,590
2,468,305
Group At
1 January
2020
£		 Movement
in year
£


At 31
December
2020
£
Tangible fixed assets fund 2,437,944 19,771
2,457,715
Charity At
1 January
2021
£
Movement
in year
£


At 31
December
2021
£
Tangible fixed assets fund 2,445,099 7,863
2,452,962
Charity At
1 January
2020
£		 Movement
in year
£


At 31
December
2020
£
Tangible fixed assets fund 2,437,944 7,155
2,445,099

The tangible fixed assets fund represents the net book value of the charity’s tangible fixed assets used for the support of the members of the Congregation and their ministry. A decision was made to separate this fund from the general fund in recognition of the fact that the assets are used in the day to day work of the group and charity, and the fund value would not be realisable easily if needed to meet future contingencies.

21 Analysis of net assets between funds

Group General
funds
£		 Designated
funds
£


Tangible
fixed assets
fund
£		 Restricted
funds
£


Total
2021
£
Fund balances at 31 December 2021 are
represented by:
Fixed assets
Investments
Current assets
Creditors: amounts falling due within one year
Total net assets		 —
2,849,365
662,200
**(143,678) **
—

7,182,000

396,352

—
2,468,305

—

—

—
—
—
216,132
—		 2,468,305
10,031,365

1,274,684

(143,678)
**3,367,887 **
7,578,352
2,468,305
216,132		 13,630,676

46 Congregation of the Holy Spirit and the Immaculate Heart of Mary, British Province

Notes to the accounts 31 December 2021

21 Analysis of net assets between funds (continued)

Group General
funds
£		 Designated
funds
£


Tangible
fixed assets
fund
£		 Restricted
funds
£


Total
2020
£

2,457,715

9,747,823

1,265,143

(240,997)

13,229,684
Fund balances at 31 December 2020 (as
restated) are represented by:
Fixed assets
Investments
Current assets
Creditors: amounts falling due within one year
Total net assets		 —
3,027,823
667,509
(240,997)
—

6,720,000

396,352

—
2,457,715

—

—

—		 —
—
201,282
—
3,454,335
7,116,352
2,457,715		 201,282
Charity General
funds
£		 Designated
funds
£


Tangible
fixed assets
fund
£		 Restricted
funds
£


Total
2021
£


2,452,962
10,031,365

978,170
(116,477)
13,346,020
Fund balances at 31 December 2021 are
represented by:
Fixed assets
Investments
Current assets
Creditors: amounts falling due within one year
Total net assets		 —
2,849,365
547,404
**(116,477) **
—

7,182,000

396,352

—		 2,452,962

—

—
—

—
—
34,414
—
**3,280,292 **
7,578,352
2,452,962		 34,414
Charity General
funds
£		 Designated
funds
£


Tangible
fixed assets
fund
£		 Restricted
funds
£


Total
2020
£

2,445,099

9,747,823

1,007,869

(227,672)
12,973,119
Fund balances at 31 December 2020 (as
restated) are represented by:
Fixed assets
Investments
Current assets
Creditors: amounts falling due within one year
Total net assets		 —
3,027,823
564,542
(227,672)
—

6,720,000

396,352

—
2,445,099

—

—

—		 —
—
46,975
—
3,364,693
7,116,352
2,445,099		 46,975

The total unrealised gains as at 31 December 2021 constitute a revaluation reserve as defined by the Charities SORP FRS 102. Movements in unrealised gains during the year were as follows:

Total
2021
£		 Total
2020
£
Unrealised gains included above:
On listed investments
On insurance bonds
On investment property
Total unrealised gains at 31 December 2021
Reconciliation of movement in unrealised gains
Unrealised gains at 1 January 2021
Gains in respect to disposals in the year
Net gains arising on revaluation arising in the year
Total unrealised gains at 31 December 2021		 497,881
42,125
4,526,064
5,066,070
4,921,696
(88,855)
233,229
5,066,070		 356,032
39,600
4,526,064
4,921,696
3,415,164
3,403,249
1,564,107
4,921,696

47 Congregation of the Holy Spirit and the Immaculate Heart of Mary, British Province

Notes to the accounts 31 December 2021

22 Leasing commitments

At 31 December 2021, the group had total future commitments under non-cancellable operating leases as follows:

operating leases as follows:
Group Motor vehicles
2021
£

2020
£
Payable:
Within one year
Between two to five years		 61,291
86,891
41,513

43,547
148,182
85,060
Charity Motor vehicles
2021
£

2020
£
Payable:
Within one year
Between two to five years		 55,958
84,802
34,885

36,125
140,760
71,010

23 Related party transactions

With the exception of the transactions with trustees disclosed in note 12, there are no related party transactions requiring disclosure (2020 – none).

24 Prior year adjustment

Prior year adjustment
Reconciliation of reported funds - group Unrestricted
funds
£


Restricted
funds
£


Total
funds
£
Total funds as 1 January 2020 (as previously stated)
Prior year adjustment
. Reclassification of restricted funds received and expended in prior years
Total funds at 1 January 2020 (as restated)
Movement in the year to 31 December 2020
. As previously stated
. Reclassification of income and expenditure
. As restated
Total funds as at 31 December 2021 (as restated)		 11,503,157


42,161

159,748





(42,161)

 11,662,905



—
11,545,318
117,587		 11,662,905


1,389,376
93,708




177,403

**(93,708) **

1,566,779

—
1,483,084
83,695
 1,566,779
13,028,402
201,282		 13,229,684

48 Congregation of the Holy Spirit and the Immaculate Heart of Mary, British Province

Notes to the accounts 31 December 2021

24 Prior year adjustment (continued)

Reconciliation of reported funds - charity Unrestricted
funds
£


Restricted
funds
£


Total
funds
£
Total funds as 1 January 2020 (as previously stated)
Prior year adjustment
. Reclassification of restricted funds received and expended in prior years
Total funds at 1 January 2020 (as restated)
Movement in the year to 31 December 2020
. As previously stated
. Reclassification of income and expenditure
. As restated
Total funds as at 31 December 2021 (as restated)		 11,355,606


42,161

100,061





(42,161)

 11,455,667



—
11,397,767
57,900		 11,455,667


1,434,669
93,708




82,783

**(93,708) **

1,517,452

—
1,528,377
(10,925)
 1,517,452
12,926,144
46,975		 12,973,119

The above prior year adjustment reflects a detailed analysis of the income previously classified as monies restricted to mission aid. The analysis identified that certain of the monies were unrestricted in nature. A prior year adjustment has been made to reflect this.

49 Congregation of the Holy Spirit and the Immaculate Heart of Mary, British Province