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2023-12-31-accounts

THE ALEXIAN BROTHERS OF THE PROVINCE OF THE SACRED HEART

(Charitable company limited by guarantee)

FINANCIAL STATEMENTS

FOR THE YEAR ENDED

31 DECEMBER 2023

Company Number: 0773307 Registered Charity Number: 233131

THE ALEXIAN BROTHERS OF THE PROVINCE OF THE SACRED HEART

FOR THE YEAR ENDED 31 DECEMBER 2023

REFERENCE 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 2023.
Finbarr Butler – Chairman
Dermot Jeremiah O’Leary
John Fleming
Company Secretary Dermot O’Leary
Regional Leader Finbarr 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
(as amended by special resolution dated 20 May 2020)
Auditors Richard Place Dobson
1-7 Station Road
Crawley
West Sussex
RH10 1HT
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

FOR THE YEAR ENDED 31 DECEMBER 2023

The Trustees present their report and the audited accounts for the year ended 31 December 2023 which have been prepared in accordance with the requirements of the Statement of Recommended Practice for Charities (SORP 2015) (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 (as 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/Regional Leader 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

Charitable 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 objects of the charity are the advancement of the Roman Catholic religion, in particular, but not limited to, through the religious and other charitable work of the Congregation, as the Trustees with the approval of the Regional Leader shall from time to time think fit.

THE ALEXIAN BROTHERS OF THE PROVINCE OF THE SACRED HEART

(Charitable company limited by guarantee)

TRUSTEES’ REPORT (Continued)

FOR THE YEAR ENDED 31 DECEMBER 2023

AIMS AND ACTIVITIES

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)

FOR THE YEAR ENDED 31 DECEMBER 2023

AIMS AND ACTIVITIES (continued)

Grant Making

The members of our community are now getting older and we have less ability to be directly involved in apostolic/mission activities. However, we are eager to use our financial resources to assist other groups who have a similar ethos to ourselves and who are engaged in charitable projects. The Trustees are constantly reviewing various projects that we feel able to assist. During the year, grants made included the following:

FINANCIAL REVIEW

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

The accounts show that income for the year was £306.1k (2022: £246.0k). The rise was thanks to a general increase in recurring sources of income, with investment income, including bank interest, continuing to be the main source.

Total expenditure fell to £599.5k (2022 £767.5k). with lower grants paid being only partially offset by an increase in costs in support of Brothers and their ministry. In addition, a rebate of investment management fees was received.

The result, before gains/losses on investments, was net expenditure of £293.3k (2022: £521.6k).

The year saw investment gains of £113.2k (2022: losses of £721.1k). The overall result was a decrease in funds of £180.1k (2022: £1.243m).

By the end of the year the charity’s net assets had fallen to £8.06m from £8.24m – see Reserves Policy below.

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

TRUSTEES’ REPORT (Continued)

FOR THE YEAR ENDED 31 DECEMBER 2023

RESERVES POLICY

At the end of the year to 31 December 2023 the total funds of the charity stood at £8.06m. Of this, £811k is represented by fixed assets required for the support of the activities and the administration of the charity, and a designated fund has been set up to reflect this.

During 2023, a designated fund was established to reflect the funding needed in respect of the charity’s commitment to provide for the needs of its members in sickness and old age. Calculations indicate that a fund of in the region of £3.5m, is required to provide fully for this commitment. The level of this fund will be kept under review and further designations, or releases from the fund, will be considered as circumstances and needs change.

In addition, the Trustees have set aside a sum of £1.5m as a Charitable Projects Fund. This is intended to provide funding for various charitable activities which the Trustees will support financially, it is hoped over the longer-term, but which will tend not to have direct input from the members of the Province. This is considered to be the most effective way of pursuing the aims of the charity in view of the fact that the membership of the Province is aging and the members are increasingly unable to work directly in pursuit of the charity’s purposes.

The charity’s “free reserves” therefore stood at approximately £2.25m at the end of 2023. It has generally been the policy of the trustees to aim to hold around two to three years’ expenditure in reserve. At the year-end the level of reserves was a little in excess of the upper level. However, this is after a year of good investment growth. Recent years’ experience of investment losses highlights the transitory nature of investment values, in the short-term, which directly impacts upon reserve levels. Therefore, the Trustees feel that this is adequate but not excessive provision for the Charity’s ongoing needs.

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.

The total return on the charity’s investments in the year was +7.4% (2022: 12.7%). This was broadly in line with averages quoted for the charity sector for the year. The Trustees consider this to be satisfactory but will keep the performance of investments under review.

THE ALEXIAN BROTHERS OF THE PROVINCE OF THE SACRED HEART

(Charitable company limited by guarantee)

TRUSTEES’ REPORT (Continued)

FOR THE YEAR ENDED 31 DECEMBER 2023

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. They will also consider how best to further the charity’s purposes by means of grants made to third-part charities with objects and aims in keeping with those of the charity and the Congregation.

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.

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 by:

Finbarr Butler d.��&.e�

Finbarr Butler Trustee

Date: August 2024 27

THE ALEXIAN BROTHERS OF THE PROVINCE OF THE SACRED HEART

INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES 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 (the ‘charitable company’) for the year ended 31 December 2023 which comprise the Statement of Financial Activities, the Balance Sheet, 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 charitable company 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 other information comprises the information included in the Trustees’ Report, other than the financial statements and our Auditor's Report thereon. The trustees are responsible for the other information contained within the Trustees’ Report. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. 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 course of 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 this gives rise to a material misstatement in the financial statements themselves. 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:

THE ALEXIAN BROTHERS OF THE PROVINCE OF THE SACRED HEART

INDEPENDENT AUDITOR'S REPORT

TO THE TRUSTEES OF THE ALEXIAN BROTHERS OF THE PROVINCE OF THE SACRED HEART

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the 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 Statement of Trustees' Responsibilities, 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

We have been appointed as auditor under section 144 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 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.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. The objectives of our audit are to obtain sufficient appropriate audit evidence regarding compliance with laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements, to perform audit procedures to help identify instances of non-compliance with other laws and regulations that may have a material effect on the financial statements, and to respond appropriately to identified or suspected non-compliance with laws and regulations identified during the audit.

In relation to fraud, the objectives of our audit are to identify and assess the risk of material misstatement of the financial statements due to fraud, to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatements due to fraud through designing and implementing appropriate responses and to respond appropriately to fraud or suspected fraud identified during the audit.

However, it is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity’s operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud.

In identifying and assessing the risks of material misstatement in respect of irregularities, including fraud, the audit engagement team made enquiries of management, and those charged with governance, regarding the procedures relating to identifying, evaluating and complying with;

  1. laws and regulations and whether they were aware of any instances of non-compliance;

  2. detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud;

  3. the internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations;

  4. 7 -

THE ALEXIAN BROTHERS OF THE PROVINCE OF THE SACRED HEART

INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF THE ALEXIAN BROTHERS OF THE PROVINCE OF THE SACRED HEART

As a result of these procedures, we consider the most significant laws and regulations that have a direct impact on the financial statements are FRS 102, General Data Protection Regulations, Canon Law, Companies Act 2006, Charities Act 2011, The Statement of Recommended Practice for Charities (SORP 2019) and employment law and health and safety regulations. We performed audit procedures to detect non-compliance, which may have a material impact on the financial statements. These included reviewing financial statement disclosures and evaluating advice received from external advisors. There were no significant laws and regulations we deemed as having an indirect impact on the financial statements.

The audit engagement team identified the risk of management override of controls as the area where the financial statements were most susceptible to material misstatement due to fraud. Audit procedures performed included but were not limited to testing manual journal entries and other adjustments and evaluating the rationale in relation to any significant, unusual transactions and transactions entered into outside of the normal course of business.

Income recognition was also identified as a significant risk which could lead to a material misstatement due to fraud or error. Audit procedures performed included but were not limited to performing walk through tests to identify the control procedures in place and once an understanding of the investment income process was gained, a substantive test was carried out using a sample basis to ensure all dividends existed and were complete in the accounts. Cut off testing was also performed to ensure dividends were recorded in the correct period.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://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 trustees, 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.

Darren Harding ACA FCCA DChA (Senior Statutory Auditor)

For and on behalf of Richard Place Dobson Services Limited Date: ......................... 27 August 2024 Chartered Accountants Statutory Auditor Ground Floor 1 – 7 Station Road West Sussex RH10 1HT

is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006

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 2023

2023 2022
Notes £ £
INCOME FROM:
Donations and legacies 1 99,785 96,289
Investments 2 206,340 130,827
Other
- Gain on currency conversion - 18,834
- Gain on disposal of fixed assets - -
--------------------- ---------------------
Total income 306,125 245,950
--------------------- ---------------------
EXPENDITURE ON:
Raising funds
Investment Management fees (net of refund) (7,319) 28,035
Cost of activities in furtherance of the charity’s objects 3
- Support of Brothers the Congregation and their ministries 373,653 322,072
- Grants paid 233,131 417,419
--------------------- ---------------------
- Support of Brothers the Congregation and their ministries 606,784 739,491
--------------------- ---------------------
Total expenditure 599,465 767,526
--------------------- ---------------------
Net (expenditure) before gains/(losses) on investments (293,340) (521,576)
Net gains/(losses) on quoted investments 113,233 (721,144)
--------------------- ---------------------
Net income/(expenditure)and net movement in funds (180,107) (1,242,720)
Total funds brought forward 8,239,854 9,482,574
--------------------- ---------------------
Total funds carried forward £8,059,747 £8,239,854
============ ============

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 2023 and 31 December 2022.

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 2023

2023 2022
Notes £ £ £ £
FIXED ASSETS
Tangible assets 11 810,706 910,650
Investments 12 4,400,318 4,317,019
---------------------- ----------------------
5,211,024 5,227,669
CURRENT ASSETS
Debtors 13 31,013 10,071
Short term deposits 2,069,000 2,000,000
Cash and bank balances 769,317 1,029,114
---------------------- ----------------------
2,869,330 3,039,185
CREDITORS:amounts falling due
within one year 14 (20,607) (27,000)
---------------------- ----------------------
NET CURRENT ASSETS 2,848,723 3,012,185
------------------------------------------------------------------ ------------------------------------------------------------------
TOTAL ASSETS LESS CURRENT LIABILITIES £8,059,747 £8,239,854
============ ============
Represented by -
FUNDS
Unrestricted Funds 2,249,041 8,239,854
Designated Funds
- Fixed Assets 810,706 -
- Retirement Fund 3,500,000 -
- Charitable Projects Fund 1,500,000 -
---------------------- ----------------------
15 5,810,706 -
------------------------------------------------------------------ ------------------------------------------------------------------
£8,059,747 £8,239,854
============ ============

Of the Accumulated Reserves shown above, £817 relates to unrealised losses on investments (2022: unrealised gains of £126,640).

The financial statements were approved and authorised for issue by the Board on 27 August 2024 and were signed below on its behalf by: /2 - 0········CA.A.····�·············r,�· _.-1-4___ Finbarr 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 2023

NOTE OF HISTORICAL COST SURPLUSES AND DEFICITS

2023 2022
£ £
Net movement in funds (180,107) (1,242,720)
Unrealised (gains)/ losses on investments (68,154) 459,386
Realised (gains)/losses in market value adjusted to cost (57,669) 447,392
------------------- -------------------
Historical cost deficit)/surplus for the year £(305,930) £(335,942)
========= =========

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 2023

2023 2022
£ £
Cash flows from Operating Activities
Net cash used in operating activities (393,913) (529,939)
------------------- -------------------
Cash flows from investing activities
Dividends and interest from investments 206,340 130,827
Payments to acquire fixed assets (33,158) (10,356)
Proceeds from sale of fixed assets - -
Payments to acquire investments (377,473) (1,971,455)
Receipts from sales of investments 407,407 1,580,413
-------------------- --------------------
Net cash provided/(used) by investing activities 203,116 (270,571)
------------------- -------------------
Change in cash and cash equivalents in year (190,797) (800,510)
Cash and cash equivalents at 1 January 2023 3,029,114 3,829,624
-------------------- --------------------
Cash and cash equivalents at 31 December 2023 £2,838,317 £3,029,114
=========== ===========
Notes to the Cash Flow Statement
A. Reconciliation of net movement in funds to net cash flow from operating activities
2023 2022
£ £
Net movement in funds (as per the Statement of Financial Activities) (180,107) (1,242,720)
Adjustments for
(Gains)/Losses on investments (113,233) 721,144
Dividends and interest from investments (206,340) (130,827)
Depreciation 133,102 129,281
(Increase)/Decrease in debtors (20,942) (1,767)
(Decrease)/Increase in creditors (6,393) (5,050)
-------------------- --------------------
Net cash (used in) operating activities £(393,913) £(529,939)
=========== ===========
B. Analysis of cash and cash equivalents
Cash at bank and in hand 2,838,317 3,029,114
-------------------- --------------------
Total cash and cash equivalents £2,838,317 £3,029,114
=========== ===========
C. Analysis of changes in net cash funds
At 1 January At 31 December
2023 Cashflows 2023
£ £ £
Cash at bank and in hand 3,029,114 (190,797) 2,838,317
-------------------- -------------------- --------------------
Total cash and cash equivalents £3,029,114 £(190,797) £2,838,317
=========== =========== ===========

THE ALEXIAN BROTHERS OF THE PROVINCE OF THE SACRED HEART

(Charitable company limited by guarantee)

PRINCIPAL ACCOUNTING POLICIES

FOR THE YEAR ENDED 31 DECEMBER 2023

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 2015) (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 2024, 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 2023

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 £2,500 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%

A full year’s depreciation is charged against an asset in the year it is acquired but no depreciation is charged in the year of its disposal.

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 2023

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 2023

1. DONATIONS AND LEGACIES
2023 2022
£ £
General donations 33,467 35,247
Pensions donated by members of the Congregation 66,318 61,042
--------------------- ---------------------
£99,785 £96,289
========= =========
2. INVESTMENT INCOME
2023 2022
£ £
Income from listed investments 133,499 119,852
Bank interest 72,841 10,975
--------------------- ---------------------
£206,340 £130,827
========= ==========
3. EXPENDITURE ON CHARITABLE ACTIVITIES
2023 2022
£ £
Support of Bothers of the Congregation and their ministries
Depreciation 133,102 129,281
Community costs 189,128 166,374
Governance and Support costs (note 5) 28,641 26,417
Losses on translation of foreign currencies 22,782 -
--------------------- ---------------------
373,653 322,072
Grants paid
Grants to overseas activities of the Alexian Brothers 22,697 13,855
Other charitable donations and grants (see below) 210,434 403,564
--------------------- ---------------------
Governance and Support costs (note 5) 233,131 417,419
--------------------- ---------------------
£606,784 £739,491
=========== ===========
Other charitable donations & grants comprises:
Mayo Roscommon Hospice Foundation 87,681 100,000
Knock Shrine 87,681 86,303
The Morning Star, Dublin 35,072 100,000
Western Alzheimers - 100,000
Ukraine Appeal - 17,261
--------------------- ---------------------
£210,434 £403,564
=========== ===========

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 2023

4. ANALYSIS OF GOVERNANCE AND SUPPORT COSTS
2023 2022
£ £
Auditors’ remuneration
- Current year 11,400 11,000
- Prior-year under-accrual 2,200 2,050
--------------------- ---------------------
13,600 13,050
Other - Company Secretarial services 1,183 1,183
--------------------- ---------------------
14,783 14,233
Other professional fees 9,900 10,273
Legal fees 3,958 1,911
--------------------- ---------------------
£28,641 £26,417
=========== ===========
5. NET INCOME/EXPENDITURE FOR THE YEAR
2023 2022
This is stated after charging: £ £
Investment management fees (net of refund) (7,319) 28,035
Depreciation 133,102 129,281
Losses /(Gains) on translation of foreign currencies 22,782 (18,834)
Auditors remuneration
- Audit fees 13,600 13,050
- Other services 1,183 1,183
Legal fees 3,958 1,911
=========== ===========
6. STAFF COSTS AND STAFF NUMBERS
2023 2022
This is stated after charging: £ £
Wages and salaries 27,700 23,666
Social security costs 3,547 3,690
Other pension costs - -
--------------------- ---------------------
£31,247 £27,356
=========== ===========
: No No
The average number of employees in the year was: 1 1
=========== ===========

7. 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 (2022: £Nil) neither were they reimbursed expenses during the year (2022: nil). No charity trustee received payment for professional or other services supplied to the charity (2022: £Nil). However, the living costs of the Trustees, who are all members of the Congregation, are borne by the charity – see Note 8.

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

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 2023

8. TRANSACTIONS WITH THE TRUSTEES

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 (2022- None).

9. TAXATION

The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.

10. 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.

11. TANGIBLE FIXED ASSETS:
Office
Freehold Motor Equipment &
Properties Vehicles Furniture Total
£ £ £ £
COST OR VALUATION
At 1 January 2023 1,618,138 17,356 40,023 1,675,517
Additions 23,057 - 10,101 33,158
Disposals - - (18,773) (18,773)
--------------------- ------------------ ---------------- --------------------
At 31 December 2023 1,641,195 17,356 31,351 1,689,902
--------------------- ------------------ ---------------- --------------------
ACCUMULATED DEPRECIATION
At 1 January 2023 723,756 9,589 31,522 764,867
Charge for year 125,811 2,589 4,702 133,102
Eliminated on disposal - - (18,773) (18,773)
--------------------- ------------------ ---------------- --------------------
At 31 December 2023 849,567 12,178 17,451 879,196
--------------------- ------------------ ---------------- --------------------
NET BOOK VALUE
At 31 December 2023 £791,628 £5,178 £13,900 £810,706
=========== ========= ========== ==========
At 31 December 2022 £894,382 £7,767 £8,501 £910,650
=========== ========= =========== ==========

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 2023

12. INVESTMENTS 2023 2022
£ £ £ £
Market value at 1 January 2023 4,317,019 4,647,121
Additions 377,473 1,971,455
Disposals
Proceeds (407,407) (1,580,413)
Gains/(Losses) 45,079 (261,758)
---------------------- ----------------------
(362,328) (1,842,171)
Net unrealised investment gains/(losses) 68,154 (459,386)
---------------------- ----------------------
Market value at 31 December 2023 £4,400,318 £4,317,019
=========== ===========
Cost at 31 December 2023 £4,401,135 £4,443,659
=========== ===========
2023 2022
£ £
Listed on a UK stock exchange
UK Fixed Interest 578,331 492,605
Overseas Fixed Interest 390,039 459,463
UK Equities 908,634 898,568
North American Equities 660,271 541,512
Europe (ex UK) Equities 159,560 141,535
Japan Equities - 49,659
Emerging Markets 109,163 126,113
Index-linked "Kick-out" Bond 510,020 438,170
Global 63,572 153,616
Other Alternatives 831,148 868,008
----------------------- -----------------------
4,210,738 4,169,249
General Cash and Short Maturity Bonds 189,580 147,770
----------------------- -----------------------
£4,400,318 £4,317,019
=========== ==========
13. DEBTORS 2023 2022
£ £
Prepayments and accrued income 5,906 10,071
Rebate of 2023 Quilter Cheviot Management fees 25,107 -
--------------------- ---------------------
£31,013 £10,071
============ ============
14. CREDITORS: Amounts falling due within one year 2023 2022
£ £
Accruals & deferred income 19,900 27,000
Other creditors 707 -
--------------------- ---------------------
£20,607 £27,000
=========== ==========

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 2023

15. DESIGNATED FUNDS

The trustees have designated funds out of the unrestricted funds for specific purposes as follows:

Fixed Assets Fund

In order to fulfil its charitable objectives, the Charity needs property and other fixed assets. These assets, although they are for unrestricted purposes, cannot be realised without undermining the Charity's work and the trustees therefore feel that it is appropriate to reflect the investment in fixed assets by means of a designated fund. Depreciation is charged against the fund. Transfers are made to reflect the net investment/dis-investment in fixed assets during the year.

Retirement Fund

A fund has been designated in respect of the Charity's commitment to provide for the retirement and care in old age and sickness of its members. During 2023, the level of the fund required was assessed in the light of current economic circumstances and financial returns, and the anticipated long-term needs of members. There are six professed Brothers to provide for and estimates indicate that a fund in the region of some £3.5m is needed to finance fully the Charity's commitment to provide care for its elderly members. Therefore, a fund was established with a designation of £3.5m. The Trustees will keep the level of the designation under review with a view to releasing funds for other purposes when, as expected, the number of Brothers falls.

Charitable Projects Fund

The Trustees have set aside this fund in order to finance giving to charitable projects that they wish to support but for which they now lack the personnel. The fund will provide both capital and income. The Trustees have identified a number of projects that they wish to support and, although grants are only made annually, it is the Trustees’ intention, if possible, to provide funding to secure the longer-term future of these projects. Therefore, a fund has been set aside to cover this financial support for several years. During 2023, a fund of £1.5m was established.

Balance Designated/ Balance
At start of Net Income/ (Released) in At end of
year (Expenditure) year year
Movements - Current year £ £ £ £
Fixed asset fund - - 810,706 810,706
Retirement fund - - 3,500,000 3,500,000
Charitable Projects Fund - - 1,500,000 1,500,000
------------------------ -------------------- ---------------------- ----------------------
£- £- £5,810,706 £5,810,706
============= ========== =========== =============

Designated Funds were only set up in the year to 31 December 2023.

Consequently, there are no movements on Designated Funds to show for the previous year.

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 2023

16. ANALYSIS OF NET ASSETS

Fund Balances at 31 December 2023

were represented by:

General
Fund
£
Tangible fixed assets
-
Investments
900,318
Current assets
1,369,330
Current liabilities
(20,607)
------------------------
£2,249,041
===========		 Designated Funds
Fixed
Assets
Retirement
Fund
Charitable
Projects
Fund
Total
£
£
£
£
810,706
-
-
810,706
-
3,500,000
-
4,400,318
-
-
1,500,000
2,869,330
-
-
-
(20,607)
-------------------------
-------------------------
----------------------
-----------------------
£810,706
£3,500,000
£1,500,000
£8,059,747
===========
===========
==========
===========

Fund Balances at 31 December 2022

were represented by:

General
Fund
Tangible fixed assets
910,650
Investments
4,317,019
Current assets
3,039,185
Current liabilities
(27,000)
-------------------------
£8,239,854
===========		 Designated Funds
Fixed
Assets
Retirement
Fund
Charitable
Projects
Fund
Total
£
£
£
£
-
-
-
910,650
-
-
-
4,317,019
-
-
-
3,039,185
-
-
-
(27,000)
----------------------
----------------------
----------------------
----------------------
£-
£-
£-
£8,239,854
===========
===========
==========
===========