**Charity number: 229662** ## **THE ORDER OF ST. AUGUSTINE OF THE MERCY OF JESUS** **TRUSTEES' REPORT AND FINANCIAL STATEMENTS** **FOR THE YEAR ENDED 31 DECEMBER 2021** **THE ORDER OF ST. AUGUSTINE OF THE MERCY OF JESUS** ## **CONTENTS** ||Page| |---|---| |**Reference and administrative details of the charity, its Trustees and advisers**|1| |**Trustees' report**|2 - 7| |**Independent auditors' report on the financial statements**|8 - 11| |**Consolidated statement of financial activities**|12| |**Consolidated balance sheet**|13| |**Charity balance sheet**|14| |**Consolidated statement of cash flows**|15| |**Notes to the financial statements**|16 - 36| **THE ORDER OF ST. AUGUSTINE OF THE MERCY OF JESUS** ## **REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 DECEMBER 2021** |**Trustees**|Sister Elizabeth Denneny (Sister Mary Monica)| |---|---| ||Sister Miriam Condron (Sister Miriam)| ||Sister Mary Josephine Dolan (Sister Mary Carmel)| ||Sister Agnes Dunne (Sister Mary Thomas)| |**Charity registered**
**number**
229662
**Principal office**
The Lodge Administration Centre, St. George's Park
Ditchling Road
Burgess Hill
West Sussex
RH15 0US
**Chair of Trustees**
Sister Mary Thomas
**Chief Executive Officer**
**Estates Director**
**HR Director**
**Village Manager**
**Finance Manager**
**Training Manager**
Philip Smith
Stuart Warren
Dawn Saunders (left July 2021)
Paul Ray-Gain
David Pithie
Adrian Muir
**Independent auditors**
Kreston Reeves LLP
Chartered Accountants
Statutory Auditor
9 Donnington Park
85 Birdham Road
Chichester
West Sussex
PO20 7AJ
**Bankers**
Barclays Bank
Level 27
1 Churchill Place
London
E14 5HP
**Solicitors**
BDP Pitmans LLP
50 The Broadway West
London
SW1H OBL
**Solicitors**
Dentons UK and Middle East LLP
1 Fleet Place
London
EC4M 7WS|| Page 1 **THE ORDER OF ST. AUGUSTINE OF THE MERCY OF JESUS** ## **TRUSTEES’ REPORT FOR THE YEAR ENDED DECEMBER 2021** The Trustees present their annual report together with the audited financial statements of the group and the charity for the year from 1 January 2021 to 31 December 2021. The charity and the group also trades under the name Augustinian Care. Charity No. 229662 The address of the charity is: The Lodge Admin Centre, St. George’s Park Ditchling Road Burgess Hill West Sussex RH15 0US ## **Trustees** The Trustees of the Order during the year under review and to the date of this report were (Order name in brackets):- (Sister Mary Thomas) Agnes Dunne (Sister Miriam) Miriam Condron (Sister Mary Carmel) Mary Dolan (Sister Mary Monica) Elizabeth Denneny (Sister Mary Cyprian) Eileen Holland (left April 2021) The Superior General in England of the Order may exercise the power of appointing and removing trustees. ## **Structure, Governance and Management** During 2021 the charity was unincorporated and run by Trustees drawn from the Roman Catholic religious order, The Order of St Augustine of the Mercy of Jesus, and governed by a charitable trust deed dated 10[th] July 1963 as amended by a scheme dated 1 November 1999. The Trustees were registered as a corporate body, by a certificate of incorporation dated 26 November 1990. The Order’s objects are religious and charitable work, the principal activity being the provision of nursing care for infirm and elderly people and those living with Dementia and Alzheimer’s on the site at St George’s Park, Burgess Hill. The group structure to achieve the above objectives was as follows: The Order of St. Augustine of the Mercy of Jesus – Registered Charity whose main activity is to run Care Homes (with Nursing). St. George’s - Augustine Care (Company limited by guarantee) – Registered Charity wholly owned by the Order and set up to develop the Retirement Village and enable the provision of Care Homes on the site at St George’s Park. St. George’s Park Ltd – a Trading company, wholly owned by St. George’s – Augustinian Care set up mainly to sell apartments, run the Retirement Village and offer Domiciliary Care services. The Trustees are ultimately responsible for all Policies and Procedures, which are updated by the person in charge of each department, and assets of the charity. They meet four times a year to review activities of the charity and to approve management decisions. When necessary the Trustees seek advice from the charity’s professional advisers including property consultants, solicitors and accountants. The Senior Management team report to the Trustees at the quarterly meetings and at any ad hoc meetings if necessary and hold monthly meetings with the Care Home Managers and Deputy 2 **THE ORDER OF ST. AUGUSTINE OF THE MERCY OF JESUS** ## **TRUSTEES’ REPORT FOR THE YEAR ENDED DECEMBER 2021** Managers. The Managers hold their own staff meetings for all care and ancillary staff. In addition, the managers prepare monthly reports on the service performance to include: improvement to the quality of care, review of performance including incidents, accidents and complaints, safeguarding and staff performance. The Managers report all safeguarding issues to the Trustees. The charity is controlled by the Order, a Diocesan Roman Catholic Religious Community by virtue of the fact that the Superior General appoints the Trustees. The Trustees are familiar with their obligations with regard to the appointment, selection and induction of new Trustees. At this moment all Trustees of the charity are Religious Sisters of the Order. They have updated their training on-line, in line with their responsibilities as charity trustees. During 2021 the Trustees took steps to establish a Charitable Incorporated Organisation (CIO) to carry on and continue the work of the charity. The CIO was registered with the Charity Commission on 26 April 2021 with the name ‘The Order of St Augustine of the Mercy of Jesus’ and with Registered Charity No. 1194230 and the appointment of Trustees to the CIO is, as is the case with the charity, to be made by the Religious Order. Following the financial year end, on 1[st] January 2022, all the charity’s activity, undertaking, assets and liabilities (other than certain property assets held for sale along with some limited retained rights to income and obligations to settle expenditure) transferred to the new CIO. The assets which remained include the now closed St Raphael’s nursing home in Danehurst, Haywards Heath. This was in the process of being sold subject to planning permission being granted. In addition, one of the investment properties, Hillview, remained as it was also in the process of being sold. Hillview sale was completed post year end and St Raphael’s sale remains ongoing. All income and profits from these sales will be passed to the new CIO on completion. All other undertaking and assets were transferred to the newly formed CIO to carry on and continue the work of the charity. The new CIO was required to be registered with CQC in order to take over the operation of the Care Homes. The charity engaged with CQC to register the CIO and to change the Registration for St Clare’s Care Home and St Rita’s Care Home and this was achieved before the deadline of 31[st] December 2021. ## **Objectives and activities** The work of the charity has been carried out principally through the charity’s provision of two Care Homes, each with 60 en-suite bedrooms which provide person-centred care to promote well-being, enabling individuals to lead valued and fulfilled lives. This work is now being carried on principally by the CIO. Each Home is run with the following complement of staff: - Manager - Deputy Manager - Administrator - Staff Nurses - Team Leader - Care Assistants - Ancillary Staff and - Maintenance Staff A Domiciliary Care Agency, operated by St George’s Park Limited and registered with CQC, provides domiciliary assistance which promotes independence and security for Residents in the Retirement Village at St George’s Park. The Sisters provide pastoral care to the residents of the Care Homes and their relatives and friends, which is especially comforting at the end of life and to residents of the Retirement Village. 3 **THE ORDER OF ST. AUGUSTINE OF THE MERCY OF JESUS** ## **TRUSTEES’ REPORT FOR THE YEAR ENDED DECEMBER 2021** The Sisters support the parish priests, both Catholic and Church of England, to celebrate mass, the Sacrament of Reconciliation and Anointing and other services to meet the needs of the residents. The Sisters bring Communion to the residents on a weekly basis or as requested. During Covid-19, the Sisters complied with the Government Regulations as to the use of the Chapel and the use of Technology meant all the residents in St George’s Park and the Care Homes were able to watch the Services virtually. As restrictions eased the number of people attending services increased. The Chapel is used for funeral and other services by the residents of the Retirement Village. There is a memorial package in place which allows the use of the cemetery by residents of the care homes and the retirement village. This allows for burials in the cemetery and the planting of trees or shrubs around the grounds. Two qualified nursing sisters also provide care and support to residents in the Care Homes and residents in St George's Park and at the local Hospice. The Order has Sisters in Birmingham and in London, where they support the Archbishop and Cardinal, where they organise care and visit elderly priests in their own homes or Care Homes. Two Sisters from St George’s Retreat are part of the St Vincent de Paul team who assist with social activities and visit people in their own homes and the Care Homes. The Sisters support a number of charities but were unable to do their usual fundraising in the year, despite that they were able to support Crisis at Christmas for the Homeless. Two Sisters continue to live in Ireland, supporting their family and integrating with the Church and Community. ## **Public Benefit** The benefit of the charity’s work is primarily in the care of the sick and infirm. The Trustees of the charity are aware of their responsibilities as charity trustees. Below is a table showing the fees for residents in care, which shows that 36% are on lower fees. Whilst setting up plans and objectives for the future, the Trustees give careful consideration to the Charity Commission’s guidance on public benefit. ## _Residents in Care Homes as at 31[st] December 2021_ ||St. Clare’s|St. Rita’s|Total|Percentage| |---|---|---|---|---| |Private Full Fees|34|42|76|63.3%| |Private Low Fee|11|6|17|14.2%| |DSS Funded|10|11|21|17.5%| |CHC/CCG
Funded|5|1|6|5.0%| |_Total_|_60_|_58_|_120_|_100.0%_| ## **Achievements and Performance** ## _Overview_ 2021 continued to be a difficult year with the continuing crisis with Covid-19 and the need to ensure the safety of the residents and support the staff. The Senior Management team continued to support the staff through regular communications and increased benefits. As in the preceding year, shortage of staff and increased use of agency staff at times continued to add pressure on the team of Carers. Throughout 2021 the charity had two Care Homes in operation, St Clare’s and St Rita’s which are situated at St. George’s Park, Ditchling, caring for elderly people living with Dementia and Alzheimer’s disease and physical disabilities. The Care Homes have up-to-date modern facilities, bedrooms with en-suite facilities. The views from the Homes are outstanding. Each area of the home is decorated 4 **THE ORDER OF ST. AUGUSTINE OF THE MERCY OF JESUS** ## **TRUSTEES’ REPORT FOR THE YEAR ENDED DECEMBER 2021** with different themes and scenes to engage the residents, particularly focusing on Dementia. The Homes. The aim is to provide person-centred care where each individual is valued, engaged and able to make choices. During the year a new _monitoring_ system, Ally, has been introduced, capturing all the information of the activities of daily living and other reports. ## _Care Quality Commission (CQC)_ Throughout 2021 and the continuing pandemic crisis the Care Quality Commission have been in a very supportive role. The inspectors were given access to our care documentation, as a result they were satisfied that the Homes are well run and safely and as a result there have not been face to face meetings with CQC and the ratings of both Homes remain unchanged, rated overall ‘Good’. The Domiciliary Care Service run by St George’s Park Limited is also rated overall ‘Good’. Both Care Homes are also accredited under the Gold Standard Framework (GSF). St Clare’s updated their documentation for 2021 and following their inspection is awaiting the result. St Rita’s is due for re-validation in 2022. Mandatory training is ongoing and is organised for all staff and for new joiners to attend in all aspects of care for clinical and care staff. During the height of the pandemic most face-to-face training was suspended and alternative methods needed to be used to deliver training including online delivery using Zoom. The charity is a member of 'West Sussex Partners in Care' which provides a wide range of training and support to the care sector and helps ensure the charity is aware of current issues affecting the sector. ## _GDPR_ We continue to review our GDPR compliance, the Finance Manager is the nominated GDPR Officer for the group. ## **Financial review** The charity has returned a surplus for the first time in three years. Action taken in 2019 and 2020, to reduce costs by closing two homes, while costly in these two years has provided a firm basis on which to provide long-term stability for the charity and occupancy levels in the two remaining homes, St Rita’s and St Claire’s, have been very close to full capacity during 2021. The group’s consolidated statement of financial affairs shows net income for the year of £205,249 (2020 net expenditure: £927,586). The principal sources of funding during the year were fees charged to residents and fees from the sales of retirement apartments. All material fixed assets of the charity are used for direct charitable purposes. The consolidated balance sheet discloses that the group had net current assets of £8,254,062 at 31 December 2021 and net assets of £36,613,964. The Trustees consider that the asset of the charity and group (incorporating the new CIO) are sufficient to meet current obligations. The charity’s governing document (and that of the new CIO) does not restrict the powers of investment of the Trustees and therefore all assets held by the charity and the CIO have been acquired with the powers available to them. At 31 December 2021 there was a loan due to the charity from St George’s – Augustinian Care of £646,972 (2020; £697,355). The value of this loan will be repaid as further developments at St George’s Park take place. 5 **THE ORDER OF ST. AUGUSTINE OF THE MERCY OF JESUS** ## **TRUSTEES’ REPORT FOR THE YEAR ENDED DECEMBER 2021** The funding environment for the care sector continues to remain challenging and a key financial issue outside our control is the level of local authority fees which are significantly less than private fees and not sufficient to cover costs. ## **Going Concern** The Trustees have a reasonable expectation that the charity and the group (including the CIO) have adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the Accounting Policies. ## **Fundraising** A number of donations were received throughout the year, without any fundraising activities being undertaken due to Covid-19. ## **Reserves Policy** The Trustees approved a general reserves policy as follows: Minimum – a level of 2 months’ expenditure to be maintained Maximum – no more than 4 months’ expenditure Target: - To aim to achieve and hold reserves at a level of 3 months’ expenditure. Total funds at 31 December 2021 were £36,613,964 (2020: £36,408,715) of which £790,582 (2020: £790,582) were restricted. Unrestricted funds at 31[st] December 2021 were £35,823.382 (2020: £35,618,133) of which £28,359,902 (2020: £28,480,642) were invested in tangible fixed assets to be used by the charity. The charity therefore had free reserves at 31 December 2021 of £7,463,480 (2020: £7,137,491). This remains above target levels as the St Raphael’s property remains unsold as an asset classified as held for sale. In the future a Sisters’ Reserve will be established to meet the income required to support the Community of Sisters. It was considered that an appropriate target for this reserve would be £2million. The Trustees consider that such a reserve is a secondary consideration to the principal aim of securing the future of the charity to deliver high quality care in an environment conducive to wellness. The Trustees will review the levels of the reserves each year i.e. - Decide whether the previous determined requirements remain appropriate - If they are not what is to be done to achieve them in the future - If excess reserves have been established, what is to be done with them? And to consider future plans to ensure excess monies are not excessively tied up in the operation. ## **Risk Management and Internal Control** The Board of Trustees has examined the major strategic, business and operational risks which the charity faces and confirms that systems have been established to enable regular reports to be produced so that the necessary steps can be taken to lessen these risks. The principal risk facing the charity is to ensure the wellbeing of residents in our care. The Trustees will continue to implement policies and procedures which protect the health and safety and maintain the operations integrity. The other main risk to the charity is that of financial risk in the continuing challenging environment facing the care sector especially the challenge of increasing costs. The charity maintains high level of occupancy and the Trustees and staff continue to look to increase other sources of income to ensure the viability of the charity. The Board has overall responsibility to ensure the charity has system of internal control. 6 **THE ORDER OF ST. AUGUSTINE OF THE MERCY OF JESUS** ## **TRUSTEES’ REPORT FOR THE YEAR ENDED DECEMBER 2021** Such a system of control can provide reasonable and not absolute assurance against errors or fraud. The controls include clearly documented accounting procedures delegation of the authority of the Board of Trustees through the Chief Executive to the rest of the charity. The charity operates an annual planning and budgeting system with an annual budget approved by the Board. Any changes to the Budget required specific approval from the Senior Management Team. Monthly reviews and revised budgets are compared with previous years. ## **Future Plans** The Trustees and Directors, following the closure of St. Mary’s in 2020 engaged in an exercise to decide on the future use of St Mary’s building. It was agreed that the best use of the building would be to complete the cycle of care, independent and assisted living, also Care Homes on the St George’s Park site and to remodel and refurbish the building, to be known as Trinity Lodge, to Assisted Living so plans were drawn up to provide 27 apartments with supporting facilities. Conversion work is now well under way, this project is ongoing and costs being monitored and the apartments are due to become available around the end of 2022. The expectation is that this new model will mitigate the loss of care activity and revenue which followed the closure of St Mary’s. The charity has planning permission from Lewes District Council to provide the expansion of the Care Services by creating a further 72 Assisted Living Apartments and a Day Centre. The planning application was re-submitted in 2020 and was approved for a further three years. As noted earlier in this Report the work of the charity is now principally being delivered by the CIO. ## **Trustees’ responsibilities statement** The Trustees are responsible for preparing the Trustees’ report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) The law applicable to charities in England and Wales requires the Trustees to prepare financial Statements for each financial year which give a true and fair view of the state of affairs of the charity and the group and of the incoming resources and application of resources of the group for that period in preparing these financial statements the Trustees are required to: - Select suitable accounting policies and then apply them consistently - Observe the methods and principles in the Charities SORP - Make judgements and accounting estimates that are reasonable and prudent: - State whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements - Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the group will continue in operation The Trustees are responsible for keeping proper accounting records that are sufficient to show and explain the charity and the group’s transactions and disclose with reasonable accuracy at any time for financial position of the group and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Account and Reports) Regulations 2008 and the provision of the trust deed. They are also responsible for safeguarding the assets of the charity and the group and hence for taking reasonable steps for the prevention and detection of fraud and other regularities. This report was approved by the Trustees, on 20[th] June 2022 and signed in their behalf by ……………………………….. Sister Agnes Dunne Trustee 7 THE ORDER OF ST. AUGUSTINE OF THE MERCY OF JESUS INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF THE ORDER OF ST. AUGUSTINE OF THE MERCY OF JESUS Opinion We have audited the financial statements of The Order of Sl. Augustine of the Mercy of Jesus Ilhe 'parenl charity'l and ils subsidiaries Ilhe 'group'l for the year ended 31 December 2021 which comprise the Consolidated statement of financial activities, the Consolidated balan￿ sheet, the Charity balance sheet, the Consolidated statement of cash flows and the related notes, including 8 summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Stsndards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland, (United Kingdorn Generally AC￿pted Accounting Practice). The financial statements have been prepared in accordance with Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standards applicable in the UK and Republic of Ireland IFRS 102) in preference to the Accounting and Reporting by Charities.. Statement of Recommended Practice issued on 1 April 2005 which is referred to in the exlanl regulations bul has been withdrawn. This has been done in order for the accounts to provide 8 true and fair view in accordance with the Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2015. In our opinion the financial stalemenls.. give a true and fair view of the stale of the Group's and of the parent charity's affairs as at 31 December 2021 and of the Group's incoming resources and application of resources, including its income and expenditure for the year then ended., have been properfy prepared in accordance with United Kingdom Generally AC￿pted Accounting Practice,. and have been prepared in accordance with the requirements of the Charits'es Act 2011. Basls for oplnlon We conducted our audit in accordance with International Standards on Auditing IUKI IISAS (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors, responsibilities for the audit of the financial stslemenls section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant lo our audit of the financial slalemenls in the United Kingdom, including the Financial Reporting Council'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 lo provide a basis for our opinion. ConclusSons relatlng to golng concern In auditing the financial slalements, we have concluded that the Trustees, use of the going cOn￿M basis of accounting in Ihe preparation of the financial stslemenls is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating lo events or conditions that, individually or collectively, may cast significant doubt on the Group's or the parent charity's ability lo continue as a going concem for a period of al least twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the Trustees with respect lo going concern are described in the relevant sections of this report. Page 8 THE ORDER OF ST. AUGUSTINE OF THE MERCY OF JESUS INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF THE ORDER OF ST. AUGUSTINE OF THE MERCY OF JESUS ICONTINUEDI Other information The other information comprises the infomation included in the Annual report other than the financial slalements and our Auditors, report thereon. The Trustees are responsible for the other information contained within the Annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly slated in our report, we do not express any form of assurance conclusion Ihereon. Our responsibility is lo read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misslatemenls, we are required lo determine whether this gives rise lo a material misslalement in the financial statements themselves. If, based on the work we have performed, we conclude that there is 8 maleiial misstalemenl 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 lo report in respect of the following matters where the Charities (Accounts and Reports) Regulations 2008 ￿qUireS us to report to you if, in our opinion.. the information given in the Trustees, report is inconsistent in any material respect wth the financial stalemenls., or the parent charity has not kept sufficient accounting records., or the parent charity financial statements are not in agreement with the accounting records and relums,. or we have not received all the information and explanations we require for our audit. Responsibilities of trustees As explained more fully in the Trustees, responsibilities statement, the Trustees are responsible for the preparation of the financial statements which give a true and fair view, and for such internal control as the Trustees determine is necessary lo enable the preparation of financial statements that are free from material misstalemenl, whether due lo fraud or error. In preparing the financial slalements, the Trustees are responsible for assessing the Group's and the parent charity's ability lo 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 lo liquidate the Group or the parent charity or lo cease operations, or have no realistic altemalive but to do so. Page 9 THE ORDER OF ST. AUGUSTINE OF THE MERCY OF JESUS INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF THE ORDER OF ST. AUGUSTINE OF THE MERCY OF JESUS ICONTINUEDI Auditors. responsibilities for the audit of the financial statements We have been appointed as auditor under section 151 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder. Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors, 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 IUKI will always detect a material misstatement when il exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected lo influence the economic decisions of users taken on the basis of these financial stalemenls. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities. outlined above, lo delecl material misstatements in respect of irregularities, including fraud. The extent lo which our procedures are capable of detecting irregularities, including fraud is del8iled below.. Capsbilities of the audit in detecting irregularities, including fraud Based on our understanding of the Charity and industry, and through discussion wth the Trustees and other management las required by auditing slandardsl, we identified that the principal risks of non-compliance with laws and regulations related lo Care Quality Commission ICQC) regulations, health and safely, employment law and charity law regarding the use of reslricled income. We considered the extent lo which non-compliance might have a material effect on the financial slatemenls. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Charities Act, Charities SORP FRS102 and other relevant charity legislation. We communicated identified laws and regulations throughout our team and remained alert lo any indications of non-compliance throughout the audit. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of conlrolsl, and determined that the principal risk5 were related lo. posting inappropriate journal entries to increase revenue or reduce expenditure, management bias in accounting eslimales and judgemenlal areas of the financial slalements such as the valuation of investment properties and recoverability of work in progress. Audit procedures performed by the engagement team included.. Discussions with management and assessment of known or suspected instances of non-compliance with laws and regulations and fraud., and Assessment of identified fraud risk factors- and Identifying and assessing the design effectiveness of controls that management has in place to prevent and detect fraud., and Challenging assumptions and judgements made by management in ils signrficant accounting estimates., and Performing analytical procedures to identify any unusual or unexpected relationships, including related party Iransaclions, that may indicate risks of material misstalemenl due lo fraud., and Confirmation of related parties with management, and review of transactions throughout the period to identify any previously undisclosed transactions with related parties outside the normal course of business., and Performing analytical procedures with automated data analylics tools lo identify any unusu81 or unexpected relationships, including related party transactions, that may indicate risks of material misstalemenl due lo fraud., and Reading minutes of meetings of those charged with governance and reviewing correspondence with relevant tsx and regulatory authorities including the most recent CQC inspection reports,. and Review of significant and unusual transactions and evaluation of the underlying financial rationale supporting the Iransaclions., and Identifying and lesling journal entries, in particular any manual entries made al the year end for financial stslemenl preparation. Because of the inherent limitations of an audit, there is a risk that we will not delecl all irregularities, including those leading to a material misststemenl in the financial slalements or non-compliance with regulation. This risk Page 10 THE ORDER OF ST. AUGUSTINE OF THE MERCY OF JESUS INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF THE ORDER OF ST. AUGUSTINE OF THE MERCY OF JESUS ICONTINUEDI increases the more that compliance with 8 law or regulation is removed from the events and transactions reflected in the financial slalements, as we will be less likely lo become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, 8s fraud involves intentional concealment, forgery, collusion. omission or misrepresentation. As part of an audit in accordance wth ISAS IUKI, we exercise professional judgment and maintain professional scepticism throughout the audit. We also.. Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misslatemenl resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, inlenlional omissions, misrepresentations, or the override of internal control. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the Circumstan￿$, but not for the purpose of expressing an opinion of the effectiveness of the charity's internal control. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting eslimales and related disclosures made by the Trustees. Conclude on the appropriateness of the Trustees, use of the going concern basis of accounting and, based on the audit evidence obtsined, whether a material uncertainly exists related to events or condilions that may casl significant doubt on the charity's ability lo continue as a going concern. If we conclude that a material uncertainly exists, we are required lo draw allenlion in our Auditors, report to the related disclosures in the financial statements or, if such disclosures are inadequate. lo modify our opinion. Our conclusions are based on the audit evidence obtained up lo the date of OLJr ALJdilors' report. However, future events or conditions may cause the charity to cease to continue as a going concern. Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial slalements represent the underlying transactions and events in a manner that achieves fair presentation. Obtain sufficient appropriate audit eviden￿ regarding the financial information of the entities or business activities within the Group lo express an opinion on the consolidated financial slatemenls. We are responsible for the direction, supervision and performance of the Group audit. We remain solely responsible for our audit opinion. We communicate with those charged with governance regarding, among other mallers, the planned scope and liming of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. Use of our rèport This report is made solely to the charills trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports} Regulations 2008. Our audit work has been undertaken so that we might slate to the charity's Iruslees those matters we are required lo stale to them in an Auditors, 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 its trustees, as a body, for our audit work, for this report, or for the opinions we have formed. Krgston Reeves LLP Chartered Accounlanls Statutory Auditor Chi¢hester 1 July 2022 Kreston Reeves LLP are eligible to act as auditors in tem)s of section 1212 of the Companies Act 2006. Page11 **THE ORDER OF ST. AUGUSTINE OF THE MERCY OF JESUS** ## **CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2021** |Note
**Income from:**
Donations and legacies
4
Charitable activities
5
Other trading activities
Investments
6
Other income
**Total income**
**Expenditure on:**
Raising funds
Charitable activities
7
**Total expenditure**
**Net income/(expenditure) before**
**taxation**
Taxation
**Net movement in funds before other**
**recognised gains**
**Other recognised gains:**
Gains on revaluation of fixed assets
**Net movement in funds**
**Reconciliation of funds:**
Total funds brought forward
Net movement in funds
**Total funds carried forward**|Unrestricted
funds
2021
£
514,384
7,320,513
895,388
209,073
18,906
8,958,264
671,432
8,080,594
8,752,026
206,238
(989)
205,249
-
205,249
35,618,133
205,249
35,823,382|Restricted
funds
2021
£
-
-
-
-
-
-
-
-
-
-
-
-
-
-
790,582
-
790,582|Total
funds
2021
£
514,384
7,320,513
895,388
209,073
18,906
8,958,264
671,432
8,080,594
8,752,026
206,238
(989)
205,249
-
205,249
36,408,715
205,249
36,613,964|Total
funds
2020
£
414,391
8,224,344
1,091,320
206,546
21,028
9,957,629
994,646
9,889,172
10,883,818
(926,189)
(1,397)
(927,586)
623,867
(303,719)
36,712,434
(303,719)
36,408,715| |---|---|---|---|---| The Consolidated statement of financial activities includes all gains and losses recognised in the year. The notes on pages 16 to 36 form part of these financial statements. Page 12 **THE ORDER OF ST. AUGUSTINE OF THE MERCY OF JESUS** ## **CONSOLIDATED BALANCE SHEET AS AT 31 DECEMBER 2021** |Note
**Fixed assets**
Tangible assets
12
**Current assets**
Stocks
13
Debtors
14
Fixed assets held for sale
Cash at bank in hand
Creditors: amounts falling due within one
year
15
**Net current assets**
**Total assets less current liabilities**
Provisions for liabilities
**Net assets**
**Total net assets**
**Charity funds**
Restricted funds
17
Unrestricted funds
17
**Total funds**|503,236
876,941
3,942,655
3,824,137
9,146,969
(892,907)|2021
£
28,359,902
28,359,902
8,254,062
36,613,964
-
36,613,964
36,613,964
790,582
35,823,382
36,613,964|496,553
812,243
3,403,510
4,082,697
8,795,003
(833,849)|2020
£
28,480,642| |---|---|---|---|---| |||||28,480,642
7,961,154| |||||36,441,796
(33,081)| |||||36,408,715| |||||36,408,715
790,582
35,618,133| |||||36,408,715| The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by: ................................................ **Sister Elizabeth Denneny (Sister Mary Monica)** ................................................ **Sister Mary Josephine Dolan (Sister Mary Carmel)** Date: 20 June 2022 The notes on pages 16 to 36 form part of these financial statements. Page 13 **THE ORDER OF ST. AUGUSTINE OF THE MERCY OF JESUS** ## **CHARITY BALANCE SHEET AS AT 31 DECEMBER 2021** |Note
**Fixed assets**
Tangible assets
12
**Current assets**
Stocks
13
Debtors
14
Bank and cash balances
Fixed assets held for sale
Creditors: amounts falling due within one
year
15
**Net current assets**
**Total assets less current liabilities**
**Net assets excluding pension asset**
**Total net assets**
**Charity funds**
Restricted funds
17
Unrestricted funds
17
**Total funds**|58,104
2,661,719
3,140,450
3,942,655
9,802,928
(779,927)|2021
£
27,033,567
27,033,567
9,023,001
36,056,568
36,056,568
36,056,568
790,582
35,265,986
36,056,568|64,966
3,057,652
2,893,078
3,403,510
9,419,206
(741,444)|2020
£
27,148,755| |---|---|---|---|---| |||||27,148,755
8,677,762| |||||35,826,517| |||||35,826,517| |||||| |||||35,826,517| |||||790,582
35,035,935| |||||| |||||35,826,517| The financial statements were approved and authorised for issue by the Trustees on 20 June 2022 and signed on their behalf by: ## **Sister Elizabeth Denneny (Sister Mary Monica)** ## **Sister Mary Josephine Dolan (Sister Mary Carmel)** The notes on pages 16 to 36 form part of these financial statements. Page 14 **THE ORDER OF ST. AUGUSTINE OF THE MERCY OF JESUS** ## **CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2021** |**Cash flows from operating activities**
Net cash used in operating activities
**Cash flows from investing activities**
Dividends, interests and rents from investments
Purchase of tangible fixed assets
**Net cash (used in)/provided by investing activities**
**Cash flows from financing activities**
Repayments of finance leases
**Net cash provided by/(used in) financing activities**
**Change in cash and cash equivalents in the year**
Cash and cash equivalents at the beginning of the year
**Cash and cash equivalents at the end of the year**
The notes on pages 16 to 36 form part of these financial statements|2021
£
244,297
209,073
(711,930)
(502,857)
-
-
(258,560)
4,082,697
3,824,137|2020
£
(4,404)| |---|---|---| |||206,546
(48,467)| |||158,079| |||(31,077)| |||(31,077)| |||122,598
3,960,099| |||4,082,697| Page 15 **THE ORDER OF ST. AUGUSTINE OF THE MERCY OF JESUS** **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021** ## **1. General information** The Order is engaged principally in the provision of accommodation for elderly and infirm residents at convents and houses at the under noted location:- St.George's Retreat, Burgess Hill (the mother house). These financial statements include the results of the above centre. The principle activities of its subsidiary companies are as set out in note 21, and were all carried out at its Burgess Hill site. ## **2. Accounting policies** ## **2.1 Basis of preparation of financial statements** The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011. The financial statements have been prepared to give a 'true and fair' view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a 'true and fair' view. This departure has involved following the Charities SORP (FRS 102) published in October 2019 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn. The Order of St. Augustine of the Mercy of Jesus meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy. The Consolidated statement of financial activities (SOFA) and Consolidated balance sheet consolidate the financial statements of the charity and its subsidiary undertakings. The results of the subsidiaries are consolidated on a line by line basis. ## **2.2 Going concern** The financial statements have been prepared on a going concern basis as the trustees believe that no material uncertainties exist. As explained in the Trustees' Annual Report and in note 24, on the 1st January 2022 all activity, assets and liabilities of the charity, other than the items noted, were transferred to the newly formed CIO to carry on and continue the work of the charity. The items retained in the charity comprised certain property assets held for sale along with some limited retained rights to income and obligations to settle expenditure. The trustees have considered the level of funds which will remain and the expected level of income and expenditure for 12 months from authorising these financial statements and consider that the charity will have sufficient cash funds available to cover ongoing costs to fulfil the new, reduced operational objectives. Page 16 **THE ORDER OF ST. AUGUSTINE OF THE MERCY OF JESUS** **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021** ## **2. Accounting policies (continued)** ## **2.3 Income** All income is recognised once the charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably. Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable. Other income is recognised in the period in which it is receivable and to the extent the goods have been provided or on completion of the service. ## **2.4 Expenditure** Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use. Expenditure on raising funds includes all expenditure incurred by the Group to raise funds for its charitable purposes and includes costs of all fundraising activities, events and non-charitable trading. Expenditure on charitable activities is incurred on directly undertaking the activities which further the Group's objectives, as well as any associated support costs. All expenditure is inclusive of irrecoverable VAT. ## **2.5 Government grants** Government grants relating to tangible fixed assets are treated as deferred income and released to the Consolidated statement of financial activities over the expected useful lives of the assets concerned. Other grants are credited to the Consolidated statement of financial activities as the related expenditure is incurred. ## **2.6 Interest receivable** Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Group; this is normally upon notification of the interest paid or payable by the institution with whom the funds are deposited. ## **2.7 Taxation** The charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes. Page 17 **THE ORDER OF ST. AUGUSTINE OF THE MERCY OF JESUS** **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021** ## **2. Accounting policies (continued)** ## **2.8 Tangible fixed assets and depreciation** Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost. Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives. Depreciation is provided on the following bases: - Freehold property straight line over 75 years - Long-term leasehold property straight line over 75 years Motor vehicles - 25% reducing balance - Fixtures and fittings 25% straight line - Chapel - structural works straight line over 100 years - Chapel - refurbishment works straight line over 40 years ## **2.9 Investments** Fixed asset investments are a form of financial instrument and are initially recognised at their transaction cost and subsequently measured at fair value at the Balance sheet date, unless the value cannot be measured reliably in which case it is measured at cost less impairment. Investment gains and losses, whether realised or unrealised, are combined and presented as ‘Gains/(Losses) on investments’ in the Consolidated statement of financial activities. ## **2.10 Stocks and work in progress** Stocks and work in progress are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads. ## **2.11 Debtors** Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due. ## **2.12 Cash at bank and in hand** Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account. Page 18 **THE ORDER OF ST. AUGUSTINE OF THE MERCY OF JESUS** **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021** ## **2. Accounting policies (continued)** ## **2.13 Liabilities and provisions** Liabilities are recognised when there is an obligation at the Balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Liabilities are recognised at the amount that the charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide. Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Consolidated statement of financial activities as a finance cost. ## **2.14 Financial instruments** The Group only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method. ## **2.15 Pensions** The Group operates a defined contribution pension scheme and the pension charge represents the amounts payable by the Group to the fund in respect of the year. ## **2.16 Fund accounting** General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Group and which have not been designated for other purposes. Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Group for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements. Investment income, gains and losses are allocated to the appropriate fund. Page 19 ## **THE ORDER OF ST. AUGUSTINE OF THE MERCY OF JESUS** ## **NOTES TO THE FINANCIAL STATEMENTS** **FOR THE YEAR ENDED 31 DECEMBER 2021** ## **3. Critical accounting estimates and areas of judgment** Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Critical accounting estimates and assumptions: The charity makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below. The fair value of the investment properties, which are sensitive to fluctuations in the property market. Critical areas of judgment: At the year end the group has £445,132 of work in progress which is deemed recoverable on the basis that, following the extension of the planning permission, the latest project will go ahead in the future. Page 20 ## **THE ORDER OF ST. AUGUSTINE OF THE MERCY OF JESUS** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021** ## **4. Income from donations and legacies** ||Unrestricted|Total|Total| |---|---|---|---| ||funds|funds|funds| ||2021|2021|2020| ||£|£|£| |Donations|514,384|514,384|414,391| All income from donations and legacies was unrestricted in the current and prior year. ## **5. Income from charitable activities** |Unrestricted
funds
2021
Total
funds
2021
£
£
Residents' fees and extras
7,320,513
7,320,513
All income from charitable activities was unrestricted in the current and prior year.|Total
funds
2020
£
8,224,344| |---|---| ||| ## **6. Investment income** ||Unrestricted|Total|Total| |---|---|---|---| ||funds|funds|funds| ||2021|2021|2020| ||£|£|£| |Rental income and interest receivable|209,073|209,073|206,546| All income from investments was unrestricted in the current and prior year. ## **7. Analysis of expenditure on charitable activities** ## **Summary by fund type** ||Unrestricted|Total| |---|---|---| ||funds|funds| ||2021|2021| ||£|£| |Residents' fees and extras|8,080,594|8,080,594| Page 21 **THE ORDER OF ST. AUGUSTINE OF THE MERCY OF JESUS** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021** ## **7. Analysis of expenditure on charitable activities (continued)** ## **Summary by fund type (continued)** ||Unrestricted|Restricted|Total| |---|---|---|---| ||funds|funds|funds| ||2020|2020|2020| ||£|£|£| |Residents' fees and extras|9,881,122|8,050|9,889,172| ## **8. Analysis of expenditure by activities** ||Activities||| |---|---|---|---| ||undertaken|Total|Total| ||directly|funds|funds| ||2021|2021|2020| ||£|£|£| |Residents' fees and extras|8,080,594|8,080,594|9,889,172| ## **Analysis of direct costs** |Staff costs
Establishment and care expenses
Staff costs, agency and training
Bad and doubtful debts
Bank charges
Depreciation on tangible fixed assets
Loss on disposal of fixed assets
Farm costs
Legal and professional
Repairs and maintenance
Governance costs|Residents'
fees and
extras
2021
£
5,246,354
1,345,725
387,065
2,262
21,781
301,642
479
46,050
122,611
547,202
59,423
8,080,594|Total
funds
2021
£
5,246,354
1,345,725
387,065
2,262
21,781
301,642
479
46,050
122,611
547,202
59,423
8,080,594|Total
funds
2020
£
6,203,674
1,644,297
735,356
151,476
13,783
499,951
24,677
34,315
72,741
446,530
62,372| |---|---|---|---| ||||9,889,172| Page 22 **THE ORDER OF ST. AUGUSTINE OF THE MERCY OF JESUS** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021** ## **9. Auditors' remuneration** ||2021|2020| |---|---|---| ||£|£| |Fees payable to the charity's auditor and its associates for the audit of the||| |charity's annual accounts|53,090|49,500| |Fees payable to the charity's auditor and its associates in respect of:||| |All non-audit services not included above|14,568|17,172| ## **10. Staff costs** |Wages and salaries
Social security costs
Contribution to defined contribution pension
schemes|Group
2021
£
5,114,016
470,917
127,482
5,712,415|Group
2020
£
6,000,527
523,620
146,081
6,670,228|Charity
2021
£
4,692,986
437,057
116,311
5,246,354|Charity
2020
£
5,575,968
493,206
134,500| |---|---|---|---|---| |||||6,203,674| In the year to 31 December 2020 a total of £258,806 was paid in redundancy payments to staff. This occurred in a single redundancy payment upon the closure of St Mary's home. In this financial year there were no such payments. The average number of persons employed by the charity during the year was as follows: |Services to residents
Management and administration|Group
2021
No.
206
25
231|Group
2020
No.
213
25| |---|---|---| |||| |||238| Page 23 **THE ORDER OF ST. AUGUSTINE OF THE MERCY OF JESUS** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021** ## **10. Staff costs (continued)** The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was: ||Group|Group| |---|---|---| ||2021|2020| ||No.|No.| |In the band £60,001 - £70,000|4|6| |In the band £70,001 - £80,000|1|-| |In the band £90,001 - £100,000|1|1| |In the band £100,001 - £120,000|-|1| |In the band £120,001 - £130,000|1|-| The senior management team, as described on page 1, have employee benefits totalling £385,368 (2020: £368,782) in the parent charity. The employee benefits of the senior management team for the group totalled £538,797 (2020: £456,319). ## **11. Trustees' remuneration and expenses** During the year, no Trustees received any remuneration or other benefits (2020 - £NIL). During the year ended 31 December 2021, no Trustee expenses have been incurred (2020 - £NIL). Page 24 ## **THE ORDER OF ST. AUGUSTINE OF THE MERCY OF JESUS** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021** ## **12. Tangible fixed assets** ## **Group** |**Cost or valuation**
At 1 January 2021
Additions
Transfers intra group
Disposals
Transfers between classes
At 31 December 2021
**Depreciation**
At 1 January 2021
Charge for the year
On disposals
Transfers between classes
At 31 December 2021
**Net book value**
At 31 December 2021
At 31 December 2020|Freehold
property
£
11,413,005
-
(525,000)
-
373,603
11,261,608
575,400
50,388
-
-
625,788
10,635,820
10,837,605|Long-term
leasehold
property
£
19,255,258
-
-
-
(6,270,623)
12,984,635
1,847,265
113,586
-
(512,586)
1,448,265
11,536,370
17,407,993|Assets under
the course of
construction
£
-
516,293
-
-
5,384,434
5,900,727
-
-
-
-
-
5,900,727
-|Motor
vehicles
£
359,971
21,947
-
(76,537)
-
305,381
298,814
28,720
(75,492)
-
252,042
53,339
61,157|Fixtures and
fittings
£
1,629,220
173,690
-
(145,291)
-
1,657,619
1,462,333
113,145
(144,505)
-
1,430,973
226,646
166,887|Other fixed
assets
£
7,000
-
-
-
-
7,000
-
-
-
-
-
7,000
7,000|Total
£
32,664,454
711,930
(525,000)
(221,828)
(512,586)
32,116,970
4,183,812
305,839
(219,997)
(512,586)
3,757,068
28,359,902
28,480,642| |---|---|---|---|---|---|---|---| Page 25 ## **THE ORDER OF ST. AUGUSTINE OF THE MERCY OF JESUS** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021** ## **12. Tangible fixed assets (continued)** ## **Group (continued)** ## **Charity** |**Cost or valuation**
At 1 January 2021
Additions
Transfers intra group
Disposals
Transfers between classes
At 31 December 2021
**Depreciation**
At 1 January 2021
Charge for the year
On disposals
Transfers between classes
At 31 December 2021|Freehold
property
£
11,413,005
-
(525,000)
-
373,603
11,261,608
575,400
50,388
-
-
625,788|Long-term
leasehold
property
£
17,932,258
-
-
-
(6,270,623)
11,661,635
1,847,265
113,586
-
(512,586)
1,448,265|Assets under
the course of
construction
£
-
516,293
-
-
5,384,434
5,900,727
-
-
-
-
-|Motor
vehicles
£
309,801
21,947
-
(70,203)
-
261,545
251,763
28,082
(69,727)
-
210,118|Fixtures and
fittings
£
1,576,768
173,690
-
(134,424)
-
1,616,034
1,415,649
109,586
(134,424)
-
1,390,811|Other fixed
assets
£
7,000
-
-
-
-
7,000
-
-
-
-
-|Total
£
31,238,832
711,930
(525,000)
(204,627)
(512,586)
30,708,549
4,090,077
301,642
(204,151)
(512,586)
3,674,982| |---|---|---|---|---|---|---|---| Page 26 ## **THE ORDER OF ST. AUGUSTINE OF THE MERCY OF JESUS** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021** ## **12. Tangible fixed assets (continued)** ## **Charity (continued)** |**Net book value**
At 31 December 2021
At 31 December 2020|Freehold
property
£
10,635,820
10,837,605|Long-term
leasehold
property
£
10,213,370
16,084,993|Assets under
the course of
construction
£
5,900,727
-|Motor
vehicles
£
51,427
58,038|Fixtures and
fittings
£
225,223
161,119|Other fixed
assets
£
7,000
7,000|Total
£
27,033,567| |---|---|---|---|---|---|---|---| ||||||||27,148,755| Page 27 **THE ORDER OF ST. AUGUSTINE OF THE MERCY OF JESUS** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021** ## **12. Tangible fixed assets (continued)** Freehold properties include land with a net book value of £5,310,216 (2020: £5,310,216) which is not depreciated. Freehold properties include investment properties of £4,100,000 (2020: £4,625,000). Leasehold properties include investment properties amounting to £632,000 (2020: £632,000). Leasehold properties include interest capitalised of £595,000 at the Bank of Ireland base rate plus 1.75%. Investment properties under Freehold Properties were subject to independent, professional valuation at 31 December 2015. The valuation was undertaken by various local estate agents with good knowledge of the properties and their locations. The value was reviewed by Stuart Warren DipSurv (CEM) MRICS MBIFM before the amounts were approved to be included within the accounts. In 2021 the investment properties were reviewed and the valuations were deemed appropriate. Investment properties held within Long term leasehold property were subject to an independent, professional valuation at 31 December 2018. The valuation was undertaken by Cuthbert Lake, Chartered Surveyors. It is assumed that the value of these investment properties is in line with their market value and the values are deemed appropriate still as at 31 December 2021. During the year the charity commenced work on the new development at St Mary's, the original carrying value, comprising of the original cost/valuation less accumulated depreciation to date of St Mary's was transferred to Assets under construction, as deemed costs, with any new costs being allocated to additions. The Group has adopted a policy of revaluation for tangible fixed assets. Had these assets been measured at historic cost, the carrying values would have been as follows: ||Group|Group|Charity|Charity| |---|---|---|---|---| ||2021|2020|2021|2020| ||£|£|£|£| |Freehold property|319,738|319,738|319,738|319,738| ## **13. Stocks** |Work in progress
Farm valuation|Group
2021
£
445,132
58,104
503,236|Group
2020
£
431,587
64,966
496,553|Charity
2021
£
-
58,104
58,104|Charity
2020
£
-
64,966| |---|---|---|---|---| |||||| |||||64,966| Page 28 **THE ORDER OF ST. AUGUSTINE OF THE MERCY OF JESUS** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021** ## **14. Debtors** |**Due within one year**
Trade debtors
Amounts owed by group undertakings
Other debtors
Prepayments and accrued income|Group
2021
£
502,320
-
170,179
204,442
876,941|Group
2020
£
568,760
-
55,120
188,363
812,243|Charity
2021
£
486,344
1,834,643
162,038
178,694
2,661,719|Charity
2020
£
540,558
2,300,681
42,101
174,312| |---|---|---|---|---| |||||3,057,652| ## **15. Creditors: Amounts falling due within one year** |Trade creditors
Corporation tax
Other taxation and social security
Other creditors
Accruals and deferred income|Group
2021
£
254,457
989
120,258
230,823
286,380
892,907|Group
2020
£
168,523
1,967
124,185
202,704
336,470
833,849|Charity
2021
£
241,159
-
107,008
173,736
258,024
779,927|Charity
2020
£
144,532
-
111,723
168,521
316,668| |---|---|---|---|---| |||||| |||||741,444| ## **16. Provisions** ## **Group and charity** |At 1 January 2021
Amounts used|Concert hall
development
£
33,081
(33,081)| |---|---| ||| ||-| Provisions were made in relation to development costs incurred in respect of a possible development of the concert hall. This has subsequently been written off in the year. Page 29 ## **THE ORDER OF ST. AUGUSTINE OF THE MERCY OF JESUS** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021** ## **17. Statement of funds** ## **Statement of funds - current year** |**Unrestricted funds**
General Funds - all funds
Revaluation reserve
**Restricted funds**
Bursary fund
Charitable Foundation
Repairs and maintenance
**Total of funds**|Balance at 1
January
2021
£
35,137,133
481,000
35,618,133
500,000
237,812
52,770
790,582
36,408,715|Income
£
8,958,264
-
8,958,264
-
-
-
-
8,958,264|Expenditure
£
(8,752,026)
-
(8,752,026)
-
-
-
-
(8,752,026)|Taxation
£
(989)
-
(989)
-
-
-
-
(989)|Balance at
31
December
2021
£
35,342,382
481,000| |---|---|---|---|---|---| ||||||35,823,382| ||||||500,000
237,812
52,770| ||||||790,582| ||||||36,613,964| Page 30 **THE ORDER OF ST. AUGUSTINE OF THE MERCY OF JESUS** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021** ## **17. Statement of funds (continued)** ## **Statement of funds - prior year** |**Unrestricted funds**
General Funds - all funds
Revaluation reserve
**Restricted funds**
Bursary fund
Charitable Foundation
Repairs and maintenance
**Total of funds**|Balance at
1 January
2020
£
35,424,700
481,000
35,905,700
508,102
237,812
60,820
806,734
36,712,434|Income
£
9,957,629
-
9,957,629
-
-
-
-
9,957,629|Expenditure
£
(10,875,768)
-
(10,875,768)
-
-
(8,050)
(8,050)
(10,883,818)|Taxation
£
(1,397)
-
(1,397)
-
-
-
-
(1,397)|Transfers
in/out
£
8,102
-
8,102
(8,102)
-
-
(8,102)
-|Gains/
(Losses)
£
623,867
-
623,867
-
-
-
-
623,867|Balance at
31
December
2020
£
35,137,133
481,000| |---|---|---|---|---|---|---|---| ||||||||35,618,133| ||||||||500,000
237,812
52,770| ||||||||790,582| ||||||||36,408,715| Page 31 ## **THE ORDER OF ST. AUGUSTINE OF THE MERCY OF JESUS** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021** ## **17. Statement of funds (continued)** The Bursary Fund has been set up to comply with the section 106 agreement in respect of the new care village development. It will be made available to residents for the purpose of subsidising the care fees of, or providing financial assistance to, only those residents who prior to becoming a resident were not resident in the area of either West or East Sussex Social Services, or have been residents for no more than 5 years. The transfer from the unrestricted funds is based on a percentage of income received in St George's Park Limited in relation to ground rent, apartment sales and sales uplifts. Charitable foundation - Fleur Fenton Cowles, was an American writer, editor and artist best known as the creative force behind the short-lived Flair magazine, published in the early 1950's. She moved to Europe in 1955 where she was a successful painter and illustrator. She also designed tapestries, accessories, and china for Denby Ltd. She died on June 5, 2009 at St. Raphael's aged 95. In appreciation of the care given to Fleur, £493,000 was donated to the charity by the Fleur Cowles Foundation towards maintenance of the property. Repairs and maintenance - During 2018, the charity received a donation from an individual to be spent on repairs and maintenance at the site in Ditchling. Page 32 **THE ORDER OF ST. AUGUSTINE OF THE MERCY OF JESUS** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021** ## **18. Analysis of net assets between funds** |**Analysis of net assets between funds - current year**
Tangible fixed assets
Current assets
Creditors due within one year
**Total**
**Analysis of net assets between funds - prior year**
Tangible fixed assets
Current assets
Creditors due within one year
Provisions for liabilities and charges
**Total**|Unrestricted
funds
2021
£
28,359,902
8,356,387
(892,907)
35,823,382
Unrestricted
funds
2020
£
28,480,642
8,004,421
(833,849)
(33,081)
35,618,133|Restricted
funds
2021
£
-
790,582
-
790,582
Restricted
funds
2020
£
-
790,582
-
-
790,582|Total
funds
2021
£
28,359,902
9,146,969
(892,907)
36,613,964
Total
funds
2020
£
28,480,642
8,795,003
(833,849)
(33,081)
36,408,715| |---|---|---|---| Page 33 **THE ORDER OF ST. AUGUSTINE OF THE MERCY OF JESUS** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021** ## **19. Reconciliation of net movement in funds to net cash flow from operating activities** |Net income/expenditure for the year (as per Statement of Financial
Activities)
**Adjustments for:**
Depreciation charges
Dividends, interests and rents from investments
Loss on the sale of fixed assets
Decrease/(increase) in stocks
Decrease/(increase) in debtors
Increase/(decrease) in creditors
Movement in provision
Taxation Paid
Taxation charge
**Net cash provided by/(used in) operating activities**|Group
2021
£
205,249
305,839
(209,073)
1,831
(20,828)
(72,762)
68,100
(33,081)
(1,967)
989
244,297|Group
2020
£
(927,586)| |---|---|---| |||510,677
(206,546)
21,440
207,501
389,155
(142,659)
143,400
(1,183)
1,397| |||| |||(4,404)| |**20.**
**Analysis of cash and cash equivalents**
Cash in hand
**Total cash and cash equivalents**
**21.**
**Analysis of changes in net debt**|Group
2021
£
3,824,137
3,824,137|Group
2020
£
4,082,697| |---|---|---| |||| |||4,082,697| |||| |Cash at bank and in hand|At 1 January
2021
£
4,082,697
4,082,697|Cash flows
£
(258,560)
(258,560)|At 31
December
2021
£
3,824,137| |---|---|---|---| ||||3,824,137| Page 34 **THE ORDER OF ST. AUGUSTINE OF THE MERCY OF JESUS** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021** ## **22. Capital commitments** ||Group|Group|Charity|Charity| |---|---|---|---|---| ||2021|2020|2021|2020| ||£|£|£|£| |**Contracted for but not provided in these**||||| |**financial statements**||||| |Purchase, construction or development of||||| |investment property|4,129,790|-|4,129,790|-| Capital commitments relate to the contracted future construction costs of converting an existing nursing home building into an assisted living development. ## **23. Related party transactions** St George's Park Limited and St George's - Augustinian Care During the year recharges of employees' salaries for work carried out relating to the subsidiaries were made. A total of £229,622 (2020 - £252,695) was recharged to St George's Park Limited. At the year end the balance due from St George's - Augustinian Care was £646,972 (2020 - £697,355) and the amount due from St George's Park Limited was £1,187,671 (2020 - £1,603,346). ## **24. Post balance sheet events** A new Charitable Incorporated Organisation (CIO) was registered with the Charity Commission on 26 April 2021 with the name ‘The Order of St. Augustine of The Mercy of Jesus’ and with Registered charity number 1194230 and the appointment of Trustees to the CIO is, as is the case with the charity, to be made by the Order. On the 1st January 2022 all activity, assets and liabilities of the charity, other than the items noted, were transferred to the newly formed CIO to carry on and continue the work of the charity. The items retained in the charity comprised certain property assets held for sale along with some limited retained rights to income and obligations to settle expenditure. Page 35 **THE ORDER OF ST. AUGUSTINE OF THE MERCY OF JESUS** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021** ## **25. Principal subsidiaries** The following were subsidiary undertakings of the charity: |**Names**|**Company**|**Charity**|**Holding**|**Included in**| |---|---|---|---|---| ||**number**|**registration**||**consolidation**| |||**number**||| |St George's - Augustinian Care|04718235|1105835|100%|Yes| |St George's Park Limited|05225007||100%|Yes| |The financial results of the subsidiaries for the year were:||||| |**Names**|Income|Expenditure|Profit/(Loss)/|Net assets| ||£|£|Surplus/|£| ||||(Deficit) for|| ||||the year|| ||||£|| |St George's - Augustinian Care|-|-|-|47,631| |St George's Park Limited|818,048|636,300|181,748|509,767| The result of the parent charity for the year was a surplus of £230,530 (2020: net expenditure £354,129). Page 36