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2021-12-31-accounts

THE ALEXIAN BROTHERS OF THE PROVINCE OF THE SACRED HEART

(Charitable company limited by guarantee)

FINANCIAL STATEMENTS

FOR THE YEAR ENDED

31 DECEMBER 2021

Haysmacintyre LLP Chartered Accountants Registered Auditors London

Company Number: 0773307 Registered Charity Number: 233131

THE ALEXIAN BROTHERS OF THE PROVINCE OF THE SACRED HEART

LEGAL AND ADMINISTRATIVE DETAILS

Trustees and directors The directors of the charitable company (the charity) are its trustees for the purpose of company law and throughout this report are collectively referred to as the trustees. The following served as trustees of the company during the year ended 31 December 2021. Finbar Butler – Chairman Dermot O’Leary John Fleming Company Secretary Dermot O’Leary Provincial Finbar Butler Churchfield Knock, Co. Mayo Registered Office 10 Queen Street Place London EC4R 1AG Charity Registration No. 233131 Company Number 0773307 Governing Instrument Memorandum & Articles of Association dated 6 September 1963 Auditor Haysmacintyre LLP 10 Queen Street Place London EC4R 1AG Solicitors Druces LLP Salisbury House London Wall London EC2M 5PS Principal Bankers The Royal Bank of Scotland London City Office 62/63 Threadneedle Street London EC2R 8LA Investment Managers Quilter Cheviot Senator House 85 Queen Victoria Street EC4V 4AB

THE ALEXIAN BROTHERS OF THE PROVINCE OF THE SACRED HEART (Charitable company limited by guarantee)

TRUSTEES’ REPORT

The Trustees present their report and the audited accounts for the year ended 31 December 2021 which have been prepared in accordance with the requirements of the Statement of Recommended Practice for Charities (SORP) (Second Edition, effective 1 January 2019), the Companies Act 2006 and applicable accounting standards.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing Document

The Alexian Brothers of the Province of the Sacred Heart is a Company limited by guarantee and is governed by its Memorandum and Articles of Association dated 6 September 1963. (Updated May 2020) It is also registered as a charity with the Charity Commission. The members’ liability is limited. Every member of the Congregation of the Alexian Brothers undertakes to contribute up to £1 to the assets of the company in the event of it being wound up.

Trustee composition, appointment of Trustees, induction and training

The Trustees, who are also the directors of the Charity for the purposes of company law, control all activities under the direction of the Chairman who is also the Provincial of the Alexian Brothers. They act as a Council of Management. Only members of the Congregation may serve and they are appointed by the Council of Management.

Members of the Province elect the Council of Management and the Provincial for a term of four years. The Council of Management appoints the Provincial Bursar. Training is provided internally by more experienced brothers and then externally by the attendance at Conferences and more specifically by professional advisors as required.

RISK MANAGEMENT

The Trustees are closely involved with the review of risk and employ suitable professionals to supplement their own expert knowledge. The Trustees have assessed the major risks to which the charity is exposed, in particular those related to its operations and finances, and are satisfied that systems are in place to mitigate exposure to the major risks faced.

PUBLIC BENEFIT

The Trustees confirm that they have complied with the duty in section 17 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission in determining the activities undertaken by the Charity.

OBJECTIVES, AIMS AND ACTIVITIES

Objects

The Alexian Brothers are a Roman Catholic Congregation who care for people in all areas of the health field. The Congregation came into being during the Black Plague when members risked their lives by going outside the city walls to care for the dying plague victims and to bury them. Their philosophy is to minister, to the very best of their ability, to those they serve in the belief that each individual person regardless of race, creed or colour is the individual person of Jesus Christ. There are other provinces working in Belgium, Germany, Hungary, the United States and the Philippines.

The primary object in the Memorandum of Articles is: To promote, establish, maintain, conduct and carry on in the United Kingdom of Great Britain, Northern Ireland, the Republic of Ireland and elsewhere, by members of the Roman Catholic Order or Congregation of male religious, known as the Alexian Brothers, institutions, hospitals, homes, residences or other establishments as are intended for the nursing, care, assistance and supporting of the sick, aged, destitute, insane or infirm irrespective of their religion.

THE ALEXIAN BROTHERS OF THE PROVINCE OF THE SACRED HEART (Charitable company limited by guarantee)

TRUSTEES’ REPORT (Continued)

OBJECTIVES, AIMS AND ACTIVITIES (continued)

Review of activities and performance during the year

Chairman’s Report

The year 2021 was significant not just on account of the unusual circumstances we found ourselves in because of Corona Virus, but we had to make some significant decisions and take action in relation to the following:

  1. 'Charities Governance Code'

The Charities Governance Code explains the minimum standards you should meet to effectively manage and control your charity.

There were Key dates relating to the Code:

2019 - was the year of learning and preparation for charities. The Charities Governance Code Toolkit provides guidance notes and templates to assist charities and charity trustees to meet all of the core standards outlined in the Code.

2020 - is the first year that registered charities are expected to comply with the Code.

2021 - will be the first year that registered charities are expected to report on their compliance with the Code.

Charity trustees are responsible for the governance of their charity and should make sure that the following governance principles are being applied.

The charity is:

The Code identifies 6 principles on which good governance is based. Under each principle the Code provides a set of core standards that all charities are expected to apply. On top of this, “complex charities” are expected to apply a set of additional standards.

The six principles of the Charities Governance Code are:

  1. Advancing Charitable Purpose

  2. Behaving with Integrity

  3. Leading People

  4. Exercising Control

  5. Working Effectively

  6. Being Accountable & Transparent

  7. 2 -

THE ALEXIAN BROTHERS OF THE PROVINCE OF THE SACRED HEART (Charitable company limited by guarantee)

TRUSTEES’ REPORT (Continued)

OBJECTIVES, AIMS AND ACTIVITIES (continued)

Review of activities and performance during the year

1. Implementing the Code

The trustees of the charity (i.e., the governing body) are responsible for making sure that the organization implements the Code.

We employed the services of L&P Cantor Fitzgerald to help with developing the Code

2. Articles of Association

Our Memorandum and Articles of Association, which were written in 1963, at the time of the setting up of the English Charity, were outdated and not in compliance with our Charities activities today. We engaged the services of Stone King Solicitors to update where necessary. This has been completed.

3. Companies House

The information held at Companies House, in relation to our Company Directors (Trustees) was inaccurate and needed updating, and the information held by the English Charity Commission was inaccurate. This has now been updated.

4. Charitable Donations

Regulations around charitable donation by charities are now more regulated. Donations have to be in compliance with the Articles of Association. A request has to be received from the organisation seeking the donation, and a guarantee be given in writing, that the funds will be used for the purpose requested.

5. Finances

Our financial investments were primarily with Barclays Bank. This was not proving satisfactory, as relationship managers kept changing, very often without notification.

In consultation with our advisors, we moved funds to Quilter Cheviot who works with hundreds of charities. They are very sensitive to the ethical policies of religious charities.

6. The 245 Club Dublin

Due to the age profile and health of the brothers in the Dublin Community, we had to take the decision to sell the property and of course cease the operation of the 245 Club. This decision was made easier as the Club was already closed due to the Corona Virus.

7. Thanks

I would like to thank Bro. Dermot, our Regional Bursar for the trojan work he did in undertaking all the work in relation to engaging with our Financial Advisor David Clarke, our Auditor Adam Halsey of Haysmacintyre and Nicola Keogh of L&P. In a year when little of the work could be completed by face-to-face engagement, most of the work had to take place through Zoom and Microsoft Teams

Bro. Finbar Butler

Chairman Alexian Brothers Province of the Sacred Heart

THE ALEXIAN BROTHERS OF THE PROVINCE OF THE SACRED HEART (Charitable company limited by guarantee)

TRUSTEES’ REPORT (Continued)

OBJECTIVES, AIMS AND ACTIVITIES (continued)

Review of activities and performance during the year

St. Alexius Knock Co. Mayo

Accommodates the Provincial Office and the Bursar’s office relocated from Drumcondra Dublin.

The property was acquired in 2005 and since then has undergone a complete alteration and refurbishment. Its intended use is as a Novitiate House and providing hospitality in a community setting for people recovering from addictions or for whom no alternative services exist. It is also a house of prayer, hospitality and healing. The ministry continues to develop.

The purchase of an additional adjacent house was completed later and provides accommodation for the monastery guesthouse for those on Retreats etc.

Our Oratory is open from 6.30-8.30pm daily and the public are free to visit. Some local people, visitors and religious join the brothers for prayer.

The brothers provide:

We normally have one person living in the community who is in recovery and we endeavour to upskill the person in the following:

THE ALEXIAN BROTHERS OF THE PROVINCE OF THE SACRED HEART (Charitable company limited by guarantee)

TRUSTEES’ REPORT (Continued)

FINANCIAL REVIEW

The accounts comply with the charity's governing document and with current statutory requirements.

The accounts show that income rose to £1.09m (2020: £224.8k). The rise was due to the gain of £769.5k on the disposal of the charity’s property in Dublin which had become surplus to requirements and a further notional gain of £114k from the disposal of the charity’s Manchester property which was gifted to Caritas Salford (Registered charity number: 1125808) in July 2021. Recurring sources of income were marginally lower than in 2020. Investment income continues to be the main recurring source of income of the charity. This was broadly unchanged at £114.8k (2020: £114.1k).

Total expenditure also increased to £863.4k (2020: £491.5k). The main increase was in charitable grants, which rose to £263.8k (2020: £86.7k) and an additional £170k, which was the estimated value of the aforementioned Manchester property that was donated to Caritas Salford. There was also a slight increase in other categories in Support of Brothers and their ministries, most notably in Community costs which had declined in 2020. Depreciation remained largely unchanged at £126.7k (2020: £134.5k).

The result, before gains/losses on investments, was net income of £226.8k (2020 net expenditure of £266.6k).

The year saw investment gains of £316.2k which more than offset the losses of 2020 of £194.5k. Thus, the overall result was an increase in funds of £543.0k (2020: decrease of £461.1k).

By the end of the year the charity’s net assets had increased to £9.48m from £8.94m. Of this, £1.03m is represented by fixed assets which are required for the ongoing operations of the charity. The balance of £8.45m consists of the charity’s investment portfolio and its cash reserves and other working capital.

RESERVES POLICY

The reserves of the charity, excluding the element represented by fixed assets, therefore stood at £8.45m at 31 December 2021.

A key commitment of the charity is the need to provide for the care of members of the Province in sickness and old age and this has profound implications for the finances of the charity. Members of the Province have all taken a vow of poverty which means that all rights to assets and income have been given up, generally in favour of the Province. Where members earn a salary, stipend or pension this is paid into the charity under a deed of covenant. There is now little or no such income with members being past retirement age and not having occupational pension rights. In most cases, members have devoted the whole of their working lives to the Province and are dependent upon it for all their temporal needs. Although members invariably continue to perform charitable work long past normal retirement age, if they are healthy enough to do so, the work is often not remunerative and the Province must provide for their upkeep and in some cases nursing care. The Trustees estimate that the level of free assets required for the purposes of providing long term support for members is a sum in the region of £4.5m.

The charity’s “free reserves” therefore stood at approximately £3.95m. It has generally been the policy of the trustees to aim to hold around two years’ expenditure in reserve. At the year-end the level of reserves was equivalent to 4.5 years’ expenditure at 2021 levels and is thus in excess of the target level set out in the Trustees’ policy.

It should be noted that reserves were boosted in September 2021 with the sale of the house in Dublin for just over £1.2m referred to above and by investment gains accruing. These gains were a reversal of losses sustained in 2020 and since the year-end further losses have been sustained. This highlights the transitory nature of investment values.

The Trustees will assess reserves levels in the light of the charity’s changed financial circumstances following the sale of the Care Centre and in the light of potential new areas of expenditure once its constitutional and governance review is complete (see Future Plans below).

In addition to the commitment to care for members, reserves are required to:-

THE ALEXIAN BROTHERS OF THE PROVINCE OF THE SACRED HEART (Charitable company limited by guarantee)

TRUSTEES’ REPORT (Continued)

INVESTMENT POLICY AND PERFORMANCE

Investments in equities, fixed income stocks and cash over the long term should enhance real value by means of a diversified portfolio with medium risk. The Trustees have established an ethical investment policy and have communicated this to their Fund Managers. The policy states that “no investments are to be made in companies which are predominantly involved in the production of armaments, tobacco or abortion products”.

The quarterly reports of the investment managers compare performance with a number of relevant indices and comment thereon.

During the previous year the decision was made to appoint Quilter Cheviot as Investment Managers. The total return on the charity’s investments in the year was +10.0% (2020: -1.76%). This was broadly in line with averages quoted for the charity sector for the year and was thus considered by the trustees to be satisfactory.

FUTURE PLANS

The Trustees will continue to monitor closely the effectiveness and viability of all of the charity’s activities with a view to ensuring that these continue for as long as possible, in the light of the increasing age profile of the members of the Province.

Since the end of the year, the Trustees have instituted a thorough review of the charity’s constitution and its governance arrangements. In May 2020 the charity’s Memorandum and Articles of Association were updated to enable the charity to adapt its activities in the light of the changing circumstances of the Congregation and the changing needs of beneficiaries that the charity can effectively seek to meet.

THE ALEXIAN BROTHERS OF THE PROVINCE OF THE SACRED HEART (Charitable company limited by guarantee)

TRUSTEES’ REPORT (Continued)

STATEMENT OF TRUSTEES’ RESPONSIBILITIES

The Trustees (who are also directors of The Alexian Brothers of the Province of the Sacred Heart for the purposes of company law) 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).

Company law requires the Trustees to prepare financial statements for each financial year. Under company law, the trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the income and expenditure of the company for that period, In preparing these financial statements, the trustees are required to:

The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time of the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

PROVISION OF INFORMATION TO AUDITORS

So far as each of the Trustees is aware at the time the report is approved:

The Trustees’ Report has been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.

The Trustees’ Report was approved by the Board and signed on their behalf on 20 September 2022 by:

Finbar Butler Trustee

Independent auditor’s report to the members of The Alexian Brothers of the Province of the Sacred Heart

Opinion

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

In our opinion, the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The trustees are responsible for the other information. The other information comprises the information included in the Trustees’ Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the 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 financial statements 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.

Opinions on other matters prescribed by the Companies Act 2006

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

Independent auditor’s report to the members of The Alexian Brothers of the Province of the Sacred Heart (continued)

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees’ Report (which incorporates the directors’ report).

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

Responsibilities of trustees for the financial statements

As explained more fully in the trustees’ responsibilities statement set out on page 5 the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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:

Based on our understanding of the charitable company and the environment in which it operates, we identified that the principal risks of non-compliance with laws and regulations related to compliance with Canon Law, Companies Act 2006, Charities Act 2011, employment law and health and safety regulations, and we considered the extent to which noncompliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as Canon Law, Companies Act 2006, Charities Act 2011, The Statement of Recommended Practice for Charities (SORP 2019) and FRS102.

We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to recognition of income and management bias in certain accounting estimates. Audit procedures performed by the engagement team included:

Independent auditor’s report to the members of The Alexian Brothers of the Province of the Sacred Heart (continued)

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of our report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an Auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Jane Askew (Senior Statutory Auditor) For and on behalf of Haysmacintyre LLP, Statutory Auditors London EC4R 1AG

10 Queen Street Place London

Date: 22 September 2022

THE ALEXIAN BROTHERS OF THE PROVINCE OF THE SACRED HEART (Charitable company limited by guarantee)

STATEMENT OF FINANCIAL ACTIVITIES

FOR THE YEAR ENDED 31 DECEMBER 2021

2021 2020
Notes £ £
INCOME FROM:
Donations and legacies 1 90,722 100,483
Charitable activities
Social Club - 8,345
Other trading activities
- Rents receivable from charitable-use properties temporarily
surplus to operational requirements 1,190 1,870
Investments 2 114,790 114,135
Other
- Gain on disposal of fixed assets 3 883,506 -
--------------------- ---------------------
Total income 1,090,208 224,833
--------------------- ---------------------
EXPENDITURE ON:
Raising funds
Investment Management fees 26,719 29,043
Cost of activities in furtherance of the charity’s objects 4
- Support of Brothers the Congregation and their ministries 836,704 462,434
--------------------- ---------------------
Total expenditure 863,423 491,477
--------------------- ---------------------
Net income/(expenditure)/ before gains/(losses) on investments 226,785 (266,644)
Net gains/(losses) on quoted investments 316,228 (194,492)
--------------------- ---------------------
Net income/(expenditure)and net movement in funds 543,013 (461,136)
Total funds brought forward 8,939,561 9,400,697
--------------------- ---------------------
Total funds carried forward £9,482,574 £8,939,561
============ ============

No summary Income and Expenditure Account has been prepared because the information required by the Companies Act 2006 is clearly shown in the above statement. The Net income/expenditure before unrealised gains and losses represents the net surplus for the year.

The charitable company had no recognised gains or losses other than as disclosed in the Statement of Financial Activities for the financial year ended 31 December 2021 and 31 December 2020.

The accompanying notes form part of these financial statements.

THE ALEXIAN BROTHERS OF THE PROVINCE OF THE SACRED HEART (Charitable company limited by guarantee)

Company number: 0773307

BALANCE SHEET

AT 31 DECEMBER 2021

2021 2020
Notes £ £ £ £
FIXED ASSETS
Tangible assets 12 1,029,575 1,470,492
Investments 13 4,647,121 4,359,419
---------------------- ----------------------
5,676,696 5,829,911
CURRENT ASSETS
Debtors 14 8,304 3,824
Short term deposits 2,000,000 -
Cash and bank balances 1,829,624 3,128,026
---------------------- ----------------------
3,837,928 3,131,850
CREDITORS:amounts falling due
within one year 15 (32,050) (22,200)
---------------------- ----------------------
NET CURRENT ASSETS 3,805,878 3,109,650
TOTAL ASSETS LESS CURRENT
------------------------------------------------------------------ ------------------------------------------------------------------
LIABILITIES £9,482,574 £8,939,561
============ ============
Represented by -
ACCUMULATED RESERVES
Unrestricted Funds £9,482,574 £8,939,561
============ =============

Of the Accumulated Reserves shown above, £780,138 relates to unrealised gains on investments (2020: £612,574).

The financial statements were approved and authorised for issue by the Board on 20 September 2022 and were signed below on its behalf by:

Finbar Butler Director

The accompanying notes form part of these financial statements.

THE ALEXIAN BROTHERS OF THE PROVINCE OF THE SACRED HEART

(Charitable company limited by guarantee)

YEAR ENDED 31 DECEMBER 2021

NOTE OF HISTORICAL COST SURPLUSES AND DEFICITS

2021 2020
£ £
Net movement in funds 543,013 (461,136)
Unrealised (gains) on investments (306,448) (177,018)
Realised losses in market value adjusted to cost 138,884 238,502
------------------- -------------------
Historical cost surplus/(deficit) for the year £375,449 £(399,652)
========= ==========

The accompanying notes form part of these financial statements.

THE ALEXIAN BROTHERS OF PROVINCE OF THE SACRED HEART

(Charitable company limited by guarantee)

CASH FLOW STATEMENT

FOR THE YEAR ENDED 31 DECEMBER 2021

2021 2020
£ £
Cash flows from Operating Activities
Net cash used in operating activities (469,449) (237,731)
------------------- -------------------
Cash flows from investing activities
Dividends and interest from investments 114,790 114,135
Proceeds from sale of fixed assets 1,027,731 -
Payments to acquire investments (815,961) (2,987,236)
Receipts from sales of investments 844,487 2,989,813
-------------------- --------------------
Net cash provided by investing activities 1,171,047 116,712
------------------- -------------------
Change in cash and cash equivalents in year 701,598 (121,019)
Cash and cash equivalents at 1 January 2021 3,128,026 3,249,045
-------------------- --------------------
Cash and cash equivalents at 31 December 2021 £3,829,624 £3,128,026
=========== ===========
Notes to the Cash Flow Statement
A. Reconciliation of net movement in funds to net cash flow from operating activities
2021 2020
£ £
Net movement in funds (as per the Statement of Financial Activities) 543,013 (461,136)
Adjustments for
(Gains)/losses on investments (316,228) 194,492
(Gains) on disposal of Fixed Assets (883,506) -
Dividends and interest from investments (114,790) (114,135)
Depreciation 126,692 134,522
Notional value attributed to property donated to third party charity 170,000 -
(Increase) / decrease in debtors (4,480) 9,576
Increase / (decrease) in creditors 9,850 (1,050)
-------------------- --------------------
Net cash (used in) operating activities £(469,449) £(237,731)
=========== ===========
B. Analysis of cash and cash equivalents
Cash at bank and in hand 3,829,624 3,128,026
-------------------- --------------------
Total cash and cash equivalents £3,829,624 £3,128,026
=========== ===========
C. Analysis of changes in net cash funds
At 1 January At 31 December
2021 Cashflows 2021
£ £ £
Cash at bank and in hand 3,128,026 701,598 3,829,624
-------------------- -------------------- --------------------
Total cash and cash equivalents £3,128,026 £701,598 £3,829,624
=========== =========== ===========

THE ALEXIAN BROTHERS OF THE PROVINCE OF THE SACRED HEART

(Charitable company limited by guarantee)

PRINCIPAL ACCOUNTING POLICIES

FOR THE YEAR ENDED 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

The financial statements have been prepared in accordance with Statement of Recommended Practice for Charities (SORP) (Second Edition, effective 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) and the Companies Act 2006.

The charity meets the definition of a public benefit entity under FRS102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s).

Critical accounting estimates and areas of judgement

Preparation of the accounts requires the Trustees to make significant judgements and estimates. The items in the accounts where these judgements and estimates have been made include:

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 one year from the date of approval of these accounts.

The Trustees of the charity have concluded that there are no material uncertainties related to events or conditions that may cast significant doubt on the ability of the charity to continue as a going concern. The Trustees are of the opinion that the charity will have sufficient resources to meet its liabilities as they fall due. The most significant areas of judgement that affect items in the accounts are detailed above. With regard to the next accounting period, 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).

Income recognition

Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the item(s) of income have been met, it is probable that the income will be received and the amount can be measured reliably.

For legacies, 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(s) to the Trust 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, and the criteria for income recognition have not been met, then the legacy is a treated as a contingent asset and disclosed if material.

Income received in advance of the provision of care services service it is deferred until the criteria for income recognition are met.

In accordance with the Charities SORP FRS102, volunteer time is not recognised.

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.

THE ALEXIAN BROTHERS OF THE PROVINCE OF THE SACRED HEART (Charitable company limited by guarantee)

PRINCIPAL ACCOUNTING POLICIES

FOR THE YEAR ENDED 31 DECEMBER 2021

Expenditure recognition and irrecoverable VAT

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. Expenditure is classified under the following activity headings:

Charitable grants and donations are made where the Trustees consider there is real need following a review of the details of each particular case and comprise single year payments rather than multi-year grants. Grants and donations are included in the statement of financial activities when approved for payment. Provision is made for grants and donations approved but unpaid at the period end.

Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.

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.

Tangible fixed assets

Individual fixed assets costing £2,000 or more are capitalised at cost and are depreciated over their estimated useful economic lives on a straight-line basis as follows:

Annual rate
Freehold land Nil
Freehold buildings 2 - 10%
Refurbishment and alterations 2%
Fixtures and plant 15 – 33.3%
Motor vehicles 25%

Financial Instruments

The charity only holds 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.

THE ALEXIAN BROTHERS OF THE PROVINCE OF THE SACRED HEART (Charitable company limited by guarantee)

PRINCIPAL ACCOUNTING POLICIES

FOR THE YEAR ENDED 31 DECEMBER 2021

Debtors

Trade and other debtors are recognised at the settlement amount due. Prepayments are valued at the amount prepaid.

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. Deposits for more than three months and up to 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 where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

Services provided by members of the Congregation

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

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of the transaction. Exchange differences are taken into account in arriving at the net movement in funds.

Leased assets

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

Leases are classified as finance leases whenever the terms of the lease transfer substantially all of the risks and rewards of ownership to the charity. Assets held under finance leases are recognised initially at the fair value of the leased assets (or, if lower, the present value of the minimum lease payments) at the inception of the lease. The corresponding liability to the lessor is recognised as a finance lease obligation. Lease payments are apportioned between finance charges and the reduction of the lease obligation using the effective interest method in order to achieve a constant rate of interest on the remaining balance of the liability. Finance charges are charged to the statement of financial activities. Assets held under finance leases are capitalised and depreciated and assessed for impairment losses in the same way as owned assets.

THE ALEXIAN BROTHERS OF THE PROVINCE OF THE SACRED HEART

(Charitable company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021

1. DONATIONS AND LEGACIES
2021 2020
£ £
General donations 21,315 2,800
Pensions donated by members of the Congregation 69,407 97,683
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£90,722 £100,483
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2. INVESTMENT INCOME
2021 2020
£ £
Income from listed investments 114,528 111,807
Bank interest 262 2,328
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£114,790 £114,135
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3. SURPLUS ON DISPOSAL OF TANGIBLE FIXED ASSETS
2021 2020
£ £
Disposal of property
Proceeds (net of costs) 1,197,731 -
Net book value (314,225) -
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Gain on disposal of freehold property £883,506 £-
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Note - the above proceeds include a notional figure of £170,000 in respect of the charity's Manchester property
which was gifted to Caritas Salford in 2021. This figure is included in Donations - see Note 4 below.
4. EXPENDITURE ON CHARITABLE ACTIVITIES
2021 2020
£ £
Support of Bothers of the Congregation and their ministries
Grants to overseas activities of the Alexian Brothers 13,370 26,792
Other charitable donations and grants (see below) 263,810 86,654
Notional value of property donated 170,000 -
Depreciation 126,692 134,522
Social Club activities - 9,894
Community costs 220,014 176,473
Governance and Support costs (note 5) 29,959 21,269
Losses on translation of foreign currencies 12,859 6,803
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£836,704 £462,434
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Other charitable donations & grants comprises:
Mayo Roscommon Hospice Foundation 127,882 24,348
Western Alzheimers 63,267 24,348
The Morning Star 63,315 24,348
Tracy House / Homeless 8,010 9,357
The Irish Catholic, publication - 2,261
St Vincent de Paul - 870
Other 1,336 1,122
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£263,810 £86,654
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THE ALEXIAN BROTHERS OF THE PROVINCE OF THE SACRED HEART

(Charitable company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021

5. ANALYSIS OF GOVERNANCE AND SUPPORT COSTS
2021 2020
£ £
Auditors’ remuneration
- Current year 8,750 7,987
- Prior-year under-accrual 3,360 -
--------------------- ---------------------
12,110 7,987
Other - Company Secretarial services 1,183 1,154
--------------------- ---------------------
13,293 9,141
Other professional fees 12,200 3,050
Legal fees 4,466 9,078
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£29,959 £21,269
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6. NET INCOME/EXPENDITURE FOR THE YEAR
2021 2020
This is stated after charging: £ £
Investment management fees 26,719 29,043
Depreciation 126,692 134,522
Auditors remuneration
- Audit fees 12,110 6.833
- Other services 1,183 1,154
Legal fees 4,466 9,078
=========== ===========
7. STAFF COSTS AND STAFF NUMBERS
2021 2020
This is stated after charging: £ £
Wages and salaries 17,416 -
Social security costs 2,492 -
Other pension costs - -
--------------------- ---------------------
£19,908 £-
=========== ===========
No No
The average number of employees in the year was: 1 -
=========== ===========

8. TRUSTEES’ REMUNERATION AND KEY MANAGEMENT PERSONNEL

The charity Trustees are not paid and do not receive any other benefits from employment with the Trust in the year (2020: £Nil) neither were they reimbursed expenses during the year (2020: nil). No charity trustee received payment for professional or other services supplied to the charity (2020: £Nil). However, the living costs of the Trustees, who are all members of the Congregation, are borne by the charity – see Note 9.

The key management personnel of the charity are provided by the Trustees, who are not remunerated.

9. TRANSACTIONS WITH THE TRUSTEES AND OTHER RELATED PARTIES

The Trustees of the Charity are also members of the Congregation and as such have taken vows of poverty under which they have renounced all personal rights to income and capital. The Charity provides for the essential needs of all members of the Congregation within the Province. The living costs of the three Trustees are therefore borne by the Charity. There were no other related party transactions (2020- None).

THE ALEXIAN BROTHERS OF THE PROVINCE OF THE SACRED HEART (Charitable company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021

10. TAXATION

The charity is exempt from tax on income and gains falling within Part 11 of the Corporation Tax Act 2011 or section 256 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.

11. COMPANY STATUS AND ULTIMATE CONTROL

The company is limited by guarantee and does not have a share capital. The members’ liability is limited. Every member of the Congregation of the Alexian Brothers undertakes to contribute up to £1 to the assets of the company is the event of it being wound up.

12.

TANGIBLE FIXED ASSETS:
Office
Freehold Motor Equipment &
Properties Vehicles Furniture Total
£ £ £ £
COST OR VALUATION
At 1 January 2021 2,117,636 50,138 152,134 2,319,908
Disposals (499,498) - - (499,498)
--------------------- ------------------ ---------------- --------------------
At 31 December 2021 1,618,138 50,138 152,134 1,820,410
--------------------- ------------------ ---------------- --------------------
ACCUMULATED DEPRECIATION
At 1 January 2021 662,019 50,138 137,259 849,416
Charge for year 123,505 - 3,187 126,692
Eliminated on disposal (185,273) - - (185,273)
--------------------- ------------------ ---------------- --------------------
At 31 December 2021 600,251 50,138 140,446 790,835
--------------------- ------------------ ---------------- --------------------
NET BOOK VALUE
At 31 December 2021 £1,017,887 £- £11,688 £1,029,575
=========== ========= ========== ==========
At 31 December 2020 £1,455,617 £- £14,875 £1,470,492
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THE ALEXIAN BROTHERS OF THE PROVINCE OF THE SACRED HEART

(Charitable company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021

13. INVESTMENTS 2021 2020
£
£		 £ £
Market value at 1 January 2021 4,359,419 4,556,488
Additions 815,961 2,987,236
Disposals
Proceeds (844,487) (2,989,813)
Gains / (losses) 9,780 (371,510)
---------------------- ----------------------
(834,707) (3,361,323)
Net unrealised investment gains 306,448 177,018
---------------------- ----------------------
Market value at 31 December 2021 £4,647,121 £4,359,419
=========== ===========
Cost at 31 December 2021 £3,866,983 £3,746,845
=========== ===========
2021 2020
£ £
Listed on a UK stock exchange
UK Fixed Interest 593,216 745,580
Overseas Fixed Interest 502,324 454,493
UK Equities 1,010,390 981,611
North American Equities 990,335 633,658
Europe (ex UK) Equities 383,797 351,119
Japan Equities 97,838 -
Asia Pacific (ex Japan) Equities 98,841 122,570
Emerging Markets 26,348 34,045
Other Alternatives 913,619 671,721
Real Estate (held by Barclays) - 227,934
----------------------- -----------------------
4,616,708 4,222,731
General Cash and Short Maturity Bonds 30,413 136,688
----------------------- -----------------------
£4,647,121 £4,359,419
=========== ==========
14. DEBTORS 2021 2020
£ £
Prepayments and accrued income £8,304 £3,824
============ ============
15. CREDITORS: Amounts falling due within one year 2021 2020
£ £
Trade creditors 7,800 -
Accruals 24,250 22,200
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£32,050 £22,200
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