## **INSTITUTE OF PRESENTATION BROTHERS** **(Registered Charity Number 233466)** **FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020** **Haysmacintyre LLP London** ## **INSTITUTE OF PRESENTATION BROTHERS** ## **TRUSTEES’ ANNUAL REPORT** ## **FOR THE YEAR ENDED 31 DECEMBER 2020** |Trustees|Raymond Dwyer (Chairman)| |---|---| ||Roy Kennedy| ||James O'Donovan| ||Tom Canning| |Province Leader:|Raymond Dywer| |Principal Office:|6 The Brent| ||Dartford| ||Kent| ||DA1 1YG| |Charity Registration No.|233466| |Governing Investment|Trust Deed dated 1 February 1964 as amended by schemes dated 6 July| ||1976 and 5 January 2005.| |Principal Bankers|Barclays Bank| ||24 Lowfield St| ||Dartford| ||Kent| ||DA1 1HD| |Independent Examiner|Adam Halsey FCA| ||Haysmacintyre LLP| ||10 Queen Street Place| ||London, EC4R 1AG| |Solicitors|Bloute Petre Kramar| ||29 Weymouth Street| ||London| ||WC1V 6AY| |Investment Managers|CCLA Investment Management Limited| ||80 Cheapside| ||London, EC2V 6DZ| ||Coutts & Co.| ||440 Strand| ||London, WC2R 0QS| |Investment Powers|There are no restrictions on the Trustees’ powers of investment| - 1 - **INSTITUTE OF PRESENTATION BROTHERS** ## **TRUSTEES’ ANNUAL REPORT (continued)** ## **FOR THE YEAR ENDED 31 DECEMBER 2020** The Trustees have pleasure in presenting their report for the year ended 31 December 2020. The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's trust deed, applicable law and the requirements of the Statement of Recommended Practice for Charities (SORP 2015) (Second Edition, effective 1 January 2019) and the Charities Act 2011. ## **OBJECTIVES AND ACTIVITIES** The Institute of Presentation Brothers is an international religious order with a Province in Great Britain and Ireland. The Charity which is registered with the Charity Commission under No. 233466 carries out the Province's exclusively charitable activities, and holds all of the Province's assets in Great Britain. The principal objective of the charity is: _"such charitable purposes which advance the religious and other charitable work of the Anglo-Irish Province of the Order (of the Institute of Presentation Brothers) as the Trustees with the approval of the Superior shall from time to time think fit"_ . The charity’s main activities are described below. The Trustees confirm that they have referred to the guidance contained in the Charity Commission’s general guidance on Public Benefit when reviewing the charity’s aims and objectives and in planning future activities. In particular, the Trustees consider how planned activities will contribute to the aims and objectives they have set. ## **ACTIVITIES AND OBJECTIVES** The charity has as its main charitable activity the religious and other charitable work of the members/Brothers of the Institute. The principal areas within this activity in which members of the Institute were involved during the year are set out below: 1. Social and Pastoral Care - In co-operation with the Sisters of Mercy, the Institute operates the House of Mercy at 1 Edwin Street, Gravesend, Kent DA12 1EH. The purpose of the House of Mercy is to provide facilities and assistance for homeless people. It contains a Day Centre and Three residences at: 1 Edwin Street, Gravesend DA12 1EH, McAuley House, 17 Albion Road, Gravesend DA12 3SR and Mary Ann Doyle House, Seymour Road, Northfleet DA11 3SR. The Presentation Brothers subsidise this undertaking and are members of the Board of Trustees. In 2020, support amounting to £10,000 (2019 £15,000) was given by the charity to the House of Mercy. - A house is provided and maintained at 7 Waldegrave Gardens, Twickenham TW1 4PQ with a mixed lay Catholic community drawn from the adjacent Richmond Parish. They provide a service of discernment and evangelisation to surrounding parishes. In addition, the Institute provides for the material needs of its members, many of whom are now well past retirement age and in need of some form of care. During this financial year there was one community of Brothers located in Dartford. Those members who are still able to continue to undertake ministries do so but with the increasing age profile of the Institute’s membership, this work is inevitably diminishing. The charity is committed to providing for these members, who have devoted most of their working lives to the ministry of the Institute, in old age and sickness. The costs of providing for Brothers and their ministries during the year amounted to £114,500 in 2020 (2019 £62,500). The safeguarding of children is a key aspect of our ministry. Our organisation in the Catholic Church is aligned with the Safeguarding office in the Archdiocese of Southwark. Our designated officer is Mrs Eileen Campling. - 2 - **INSTITUTE OF PRESENTATION BROTHERS** **TRUSTEES’ ANNUAL REPORT (continued)** ## **FOR THE YEAR ENDED 31 DECEMBER 2020** ## **ACTIVITIES AND OBJECTIVES (continued)** 2. Missions During the year grants totalling £94,500 were provided to support the work of the Institute in Ghana and Nigeria. This money was spent on training and capacity building as well as the living expenses and medical care of the members. It was used as follows: Formation of novices and postulants and temporary brothers 12,826 Vocation promotion in Nigeria and Ghana 8,551 Province administration 6,413 Primary School Building 7,125 Medical expenses 1,972 Education of Brothers 6,480 Maintenance of communities 43,388 Donations, gifts and charity 2,850 Other 4,895 ## **FUTURE PLANS** In the future, the Brothers' Charity will need to continue funding the House of Mercy in Gravesend, Kent and the care of the elderly members of the Congregation. In addition, commitments to Congregation leadership and the international missions such as that in Ghana & Nigeria will require financing from the charity’s income and funds. With only a few members earning income at present, the care of the elderly will have to be funded from investment returns. In addition to members now resident in England, there are likely to be some members who are now on missions abroad who may return to England to retire. This will require further funding as they will not be entitled to a pension in England on their return. Medical care will also have to be provided. In order to finance these needs, a fund of £2m was designated in 2009. Six Brothers who worked for the Charity in England have retired in Ireland. It is proposed to make transfers from the retirement fund to provide for them in their retirement in Ireland. The trustees will continue to keep under review the needs of the fund and will make further designations, if necessary, as and when the means for doing so become available. The coronavirus pandemic has had a continuing impact on the charity’s finances and operations. The Board has no intention to realise any of these investments for the foreseeable future. However Coutts informed the charity that as they had an address outside the UK they could not continue to manage the investment portfolio. On 24 November 2020, the investments were disposed of at a value of £1,139,207 and the funds were transferred to the charity’s bank account. The intention is to transfer the funds to a new charity to be set up in Ireland to continue to meet the welfare needs of the Brothers living in Ireland. The charity has taken steps to preserve its strong cash position, by controlling expenditure and work on planned capital or revenue projects have had to be put on hold temporarily. With these measures in place, the Board is confident that the charity remains a going concern and are well placed to manage any financial impact of the pandemic. ## **STRUCTURE, GOVERNANCE AND MANAGEMENT** The Institute is governed by its Trust Deed dated 1 February 1964 as amended by schemes dated 6 July 1976 and 5 January 2005. The Institute has four Trustees. The power of appointing new Trustees rests with the Province Leadership Team, consisting of the Province Leader and two assistants. These are appointed by the Congregational Leader every six years, following a consultative vote among the members of the province. Trustees are all members of the Institute of many years’ standing and as such have been intimately involved in its activities for a considerable time. They are thus well-equipped for the role of managing the charity. In addition Trustees are provided with both internal and external courses as considered appropriate to their needs and requirements for the fulfilment of their role as Trustees. The charity does not raise any funds from the public. - 3 - ## **INSTITUTE OF PRESENTATION BROTHERS** ## **TRUSTEES’ ANNUAL REPORT (continued)** ## **FOR THE YEAR ENDED 31 DECEMBER 2020** ## **FINANCIAL REVIEW** The charity’s principal sources of funds are the salaries and pensions donated by the members and investment income. Both of these were consistent with 2019. Investment income amounted to £74,007 (2019: £108,743) which reduced due to the disposal of the Coutts portfolio (see above). Income was stable for the letting of parts the charity’s property portfolio (in Twickenham and Reading) which are currently surplus to requirements. Overall, total income decreased to £223,163 from £252,444 in 2019. At the same time expenditure decreased to £266,028 from £310,471 in 2019. Funds have increased to £5,451,018 from £5,388,671 in 2019. ## **RISK ASSESSMENT** The Trustees have assessed the major risks to which the charity is exposed, in particular those related to the operations and finances of the Charity, and are satisfied that systems are in place to mitigate our exposure to the major risks. ## **RESERVES POLICY** The balance sheet shows that the total funds, all unrestricted, of the Institute as at 31 December 2020 have increased to just over £5.4m. Of this, some £455k has been designated to reflect the amount of the charity’s reserves tied up in Fixed Assets required for its on-going activities. In addition, £2m has been designated to reflect the charity’s on-going commitment to care for members in sickness and old age. The remaining reserves which are just under £2.9m are, given the level of deficit that is now being generated, is required to finance the general charitable activities of the Province and in particular the support given by it in the form of missions and charitable donations. ## **INVESTMENT POLICY** There are no restrictions on the charity's power to invest. The investments were held in managed funds with the Bank of Ireland Asset Management but the portfolio was liquidated in 2009 following the cessation of operations by the Bank. Since then the trustees have appointed new fund managers and adopted a cautious policy of re-investment of funds. For this reason, cash within investment funds is still relatively high. The trustees are satisfied with the returns generated by the portfolio. They will continue to monitor closely the performance of the portfolio. - 4 - INSTITUTE OF PRESENTATION BROTHERS TRUSTEES'ANNUAL REPORT (continued) FOR THE YEAR ENDED 31 DECEMBER 2020 TRUSTEES. RESPONSIBILITJES STA TEMENT TheTnJstee5 are responsible forpreparing the Tntstees. Reptsrtand the financial statements in a¢cordanc¢with appli¢ablelaw and Uoited Kingdom Ac¢ountin8 Standards {United Kingdom Generally Accepted Accounting Prdcticel. The laiv applicableto charities England & Wales requires the trusieesto prepare financial statemthts foreach financial year which give a true and fairviewofthestateof affairsofthe charity andofthe incomingre50urces andappli¢ation of resources of th¢ charity for that period. In preparing these financial statements, the trustee$ are required to.. Select suitsble accountin8 policie5 and apply them consistently,. Observe the methods and principles in the Charities SORP,. Make judgetnents and estimates that are reasonable and prudenL State whetherapplicable a¢¢ountingstandards have been followed, subjectto any material departuresdisclosedand explain￿ in the financtal 5tatem¢nts' and Prepartthe fjnancial statements on thegoin8concem basis unle55 it is inappropriateto pr¢sumethat the charity will continue in business. The trustees are restM)ttsible for keeping proper accountin8 record5 that dise105e rcasonable accuracy at any time the fin￿cial ¥K)sition of the charity and enable them to ensure thar the fInancial statements complywiththe Ch￿ItIe$A¢l2Ol1, the applicable Charities (Accouttts and Report51 Regulations and the provisions of thetrust deed. They are also responsible for safegUardi￿g the assets of the charity and hence fortakingreasonable steps for the prevetjtion and detection offi7udandother i￿egUlaTitie$. Approved by the Trustees on21 December2021 and signed and authorised on their behalf by.. Raymond Divyer e {Chaimwi) Trust ## **INDEPENDENT EXAMINER’S REPORT** ## **TO THE TRUSTEES OF THE INSTITUTE OF PRESENTATION BROTHERS** I report to the Trustees on my examination of the accounts of The Institute of Presentation Brothers for the year ended 31 December 2020 which are set out on pages 7 to 14. ## **Respective responsibilities of trustees and examiner** The trustees are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (“the 2011 Act”). The trustees are satisfied that an audit is not required for this year under section 144(2) of the Charities Act 2011 (the 2011 Act) and have chosen instead to have an independent examination. I report in respect of my examination of the Trust’s accounts as carried out under section 145 of the 2011 Act. In carrying out my examination I have followed the requirements of the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act. ## **Independent examiner’s statement** I have completed my examination. I confirm that no matters have come to my attention giving me cause to believe that in any material respect: 1. accounting records were not kept in respect of the charity as required by section 130 of the 2011 Act; or 2. the accounts do not accord with those records; or 3. the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination. I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached. Adam Halsey FCA Haysmacintyre LLP, Chartered Accountants 10 Queen Street Place London EC4R 1AG Date: - 6 - ## **INSTITUTE OF PRESENTATION BROTHERS** ## **STATEMENT OF FINANCIAL ACTIVITIES** ## **FOR THE YEAR ENDED 31 DECEMBER 2020** |||**General**|**Designated**|**2020**|**2019**| |---|---|---|---|---|---| |||**Fund**|**Funds**|**Total**|**Total**| ||**Notes**|**£**|**£**|**£**|**£**| |**Income and endowments from:**|||||| |Donations and legacies:|||||| |_Members’ salaries and pensions_||44,527|-|44,527|46,100| |Other trading activities:|||||| |_Rent receivable_||103,109|-|103,109|96,959| |Investments|2|74,007|-|74,007|108,743| |Other||1,520|-|1,520|642| |||-----------------|----------------|-----------------|-----------------| |**Total income**||223,163|-|223,163|252,444| |||-----------------|----------------|-----------------|-----------------| |**Expenditure on:**|||||| |Raising funds:|||||| |Investment manager’s fees||19,541|-|19,541|21,948| |Property rental costs||29,723|-|29,723|25,965| |||-----------------|----------------|-----------------|-----------------| |||49,264|-|49,264|47,913| |**Charitable activities**|||||| |Costs of activities||183,339|33,425|216,764|262,558| |||-----------------|----------------|------------------|------------------| |**Total expenditure**|3|232,603|33,425|266,028|310,471| |||-----------------|----------------|------------------|------------------| |**Net operating (deficit)**||(9,440)|(33,425)|(42,865)|(58,027)| |**Gains on investments**|||||| |**- listed investments**|7|97,212|-|97,212|365,155| |**- Investment properties**||56,000|-|56,000|688,635| |||----------------|----------------|----------------|----------------| |**Net income/(expenditure)**||144,772|(33,425)|110,347|995,763| |Transfers between funds||(3,285)|3,285|-|-| |||-----------------|----------------|----------------|----------------| |**Net movement in funds**||140,487|(30,140)|110,347|995,763| |**Reconciliation of funds**|||||| |Fund balances brought forward at|||||| |1 January 2020||2,903,556|2,485,115|5,388,671|4,392,908| |||------------------|-------------------|---------------------|---------------------| |**Fund balances carried forward at**|||||| |**31 December 2020**||3,044,043|2,454,975|5,499,018|5,388,671| |||==========|==========|===========|===========| All amounts relate to continuing activities. - 7 - INSTITUTE OF PRESENTATION BROTHERS BALANCE SHEET ASAT31 DECEMBER 2020 2020 2019 IYote5 FIXED ASSETS Tangible fixed assets Inve5tments- Listed investments Investment propertie5 454,975 2,187.599 1,475.000 485.115 3,295.474 1,419.000 4.117.574 5,199,589 CURRENT ASSETS Debtors- prq)ayments and accrued income Cash at bank and in hand 12,823 1,410.753 221.915 1,423,576 CREDITORS: Amounts falling due ivithin one year 221.915 142,132) {32,833) NET CURRENT ASSETS 1.381,444 189,082 NET ASSETS 5,499.018 5,388.671 FUNDS Uttre5tricted Income Funds General 3,044,043 2,903.556 De5j8n&td - Fixed Assets Fund Retirement 454,975 2.000,000 485,115 2.000,000 io 2,454.975 2.485.115 TOTAL FUNDS 5.499,018 5.388,671 Approved by the Trustees on 21 December2021 and signed on their behalf by= Broth Raymond Dwyer Trustee (Chaimanl **INSTITUTE OF PRESENTATION BROTHERS** **NOTES TO THE FINANCIAL STATEMENTS** ## **FOR THE YEAR ENDED 31 DECEMBER 2020** ## **1. ACCOUNTING POLICIES** ## **Basis of Preparation** These accounts are prepared under the historic cost convention. The accounts have been prepared in accordance with the 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 Charities Act 2011. The Institute of Presentation Brothers is 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). As a smaller charity, exemption has been taken not to produce a statement of cash flows. The trustees consider there are no material uncertainties about the charity’s ability to continue as a going concern. In the trustees’ opinion, the main financial uncertainties facing the charity are the uncertainty of investment return and the volatility of equity markets affecting the carrying value of investments. ## **Income** Income is included in the Statement of Financial Activities when the charity has entitlement to the income, it is probable that the income will be received and the amount of income can be measured reliably. The following specific policies are applied to specific categories of income: Donations are recognised when the charity has been notified in writing of both the amount and settlement date. In the event that a donation is subject to conditions that require a level of performance before the charity is entitled to the funds, the income is deferred and not recognised until those conditions are fully met, or the fulfilment of those conditions is wholly within the control of the charity and it is probable that those conditions will be fulfilled in the reporting period. Investment income is credited to income when it is 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. Dividends are recognised once the dividend has been declared and notification has been received of the dividend due. Members’ salaries and pensions are received under deeds of covenant and are stated inclusive of income tax but net of any deductions for social security payments and contributions to occupational pension schemes. Rental income is stated gross of any fees deducted and is recorded on a receivable basis. ## **Expenditure** Liabilities are recognised as expenditure as soon as there is legal or constructive obligation committing the charity to that expenditure, it is probable that settlement will be required and the amount of obligation can be measured reliably. Expenditure is recognised on an accruals basis as a liability is incurred, inclusive of VAT, which cannot be recovered. Charitable activities comprise mainly the provision of support of the province and communities. Grants and donations are accounted for when paid over or when awarded if that creates a binding obligation on the charity. All other costs in support of the Charity’s main objectives are recognised as they become due for payment. Charitable expenditure consists of all expenditure directly relating to the objects of the Charity. Support costs have been allocated to charitable activities. Governance costs include expenditure on compliance with constitutional and statutory requirements. - 9 - **INSTITUTE OF PRESENTATION BROTHERS** **NOTES TO THE FINANCIAL STATEMENTS** **FOR THE YEAR ENDED 31 DECEMBER 2020** ## **1. ACCOUNTING POLICIES (continued)** ## **Tangible Fixed Assets** The freehold land and buildings have been included in the balance sheet at cost and where cost figures are not available, at trustees’ valuation. Other fixed assets acquired prior to 1 January 1997 have not been capitalised as such expenditure was previously written off in the year in which it had been incurred and their value is not considered to be material. A school property owned in the name of the trustees is occupied and run by an independent charity in the form of a Voluntary Aided School. There are significant legal restrictions on the disposal of this property under Education legislation. The trustees consider their ownership to be in the nature of a custodianship of the assets and therefore it is not capitalised in the financial statements. Details of this property are set out in Note 6 to the accounts. Depreciation is calculated by the straight line method to write off the cost/value, less anticipated residual value, over the expected useful lives of assets as follows:- Freehold buildings 50 years Motor Vehicles 4 years ## **Investments** Investments are a form of basic financial instrument. They are initially recognised at their transaction value and subsequently valued at their fair value at the balance sheet date using the closing quoted market price. The Statement of Financial Activities includes the net gains and losses arising on revaluation and disposals throughout the year. ## **Investment gains and losses** All gains and losses are taken to the Statement of Financial Activities as they arise. Realised gains and losses on investments are calculated as the difference between sales proceeds and opening market value (purchase date if later). Unrealised gains and losses are calculated as the difference between the market value at the year end and the opening market value (or purchased date if later). ## **Investment properties** Investment properties are stated at their fair value. ## **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. ## **Significant judgments and sources estimation uncertainty** In the view of the trustees in applying the accounting policies adopted, no judgements were required that have a significant effect on the amounts recognised in the financial statements nor do any estimates or assumptions made carry a significant risk of material adjustment in the next financial year. ## **Financial instruments** The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value. ## **Cash at bank and in hand** Cash at bank and in hand includes bank accounts, 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. ## **Cash Flow Statement** As a small charity, the trustees have opted not to prepare a Cash Flow Statement. - 10 - ## **INSTITUTE OF PRESENTATION BROTHERS** ## **NOTES TO THE FINANCIAL STATEMENTS (Continued)** ## **FOR THE YEAR ENDED 31 DECEMBER 2020** |**2.**|**INVESTMENT INCOME**||||**2020**|**2019**| |---|---|---|---|---|---|---| ||||||**£**|**£**| ||Income from quoted investments||||73,963|108,183| ||Bank deposit interest||||44|560| ||||||-----------------|-----------------| ||||||74,007|108,743| ||||||========|========| |**3.**|**TOTAL EXPENDITURE**|||||| |||**Direct**|**Support**||**2020**|**2019**| |||**Costs**|**costs**|**Governance**|**Total**|**Total**| |||**£**|**£**|**£**|**£**|**£**| ||**Raising funds**|||||| ||Investment manager’s fees|19,541|-|-|19,541|21,948| ||Property rental costs|29,723|-|-|29,723|25,965| |||------------------|------------------|-----------------|------------------|------------------| |||49,264|-|-|49,264|47,913| |||------------------|------------------|-----------------|-------------|-----------------| ||**Charitable activities**|||||| ||Province and communities|53,038|18,956|19,185|91,179|114,394| ||Missions and charitable donations|125,585|-|-|125,585|148,164| |||------------------|------------------|-----------------|-----------------|-----------------| |||178,623|18,956|19,185|216,764|262,558| |||------------------|------------------|-----------------|-----------------|-----------------| |||------------------|------------------|------------------|-------------------|-------------------| |||£227,887|£18,956|£19,185|£266,028|£310,471| |||=========|=========|========|=========|=========| ||**Missions and charitable donations**||||**2020**|**2019**| ||This comprises:||||**£**|**£**| ||Overseas work of the Institute||||94,500|102,000| ||Congregation Leadership Team||||20,000|20,000| ||Support of the Homeless – House of|Mercy|||10,000|15,000| ||Alms and charitable donations||||1,085|11,164| ||||||------------------|------------------| ||||||125,585|148,164| ||||||=========|=========| All expenditure is directly incurred in furtherance of the activity to which it relates. - 11 - ## **INSTITUTE OF PRESENTATION BROTHERS** ## **NOTES TO THE FINANCIAL STATEMENTS (Continued)** ## **FOR THE YEAR ENDED 31 DECEMBER 2020** |**3.**|**TOTAL EXPENDITURE (continued)**|**2020**|**2019**| |---|---|---|---| |||**£**|**£**| ||Included in Governance is:||| ||Independent examination/audit fee and accountancy|4,800|4,800| |||----------------|----------------| |||4,800|4,800| |||=======|=======| ||Expenditure is stated after charging:||| ||Depreciation|33,425|33,425| |||=======|=======| |**4.**|**STAFF COSTS**|**2020**|**2019**| |||**£**|**£**| ||Wages and salaries|5,390|5,870| |||========|=======| ||The average number of employees in the year was:||| |||**No**|**No**| ||Domestic – part time|1|1| |||=======|=======| There were no employees whose emoluments including benefits, exceeded £60,000 in the year. ## **5. TRANSACTIONS WITH TRUSTEES** As members of the Institute, the Trustees’ living expenses during the year were borne by the charity but the Trustees received no remuneration or other benefits in connection with their duties as Trustees during the year. ## **6.** |**TANGIBLE FIXED ASSETS**|**Freehold land**|**Motor**|| |---|---|---|---| ||**and Buildings**|**Vehicles**|**Total**| ||**£**|**£**|**£**| |**COST OR VALUATION**|||| |At 1 January 2020|703,300|6,000|709,300| |Additions|3,285|-|3,285| ||--------------------|-----------------|----------------------| |At 31 December 2020|706,585|6,000|712,585| ||--------------------|-----------------|----------------------| |**DEPRECIATION**|||| |At 1 January 2020|218,185|6,000|224,185| |Charge for the year|33,425|-|33,425| ||------------------|-----------------|------------------| |At 31 December 2020|251,610|6,000|257,610| ||------------------|----------------|--------------------| |**NET BOOK VALUE**|||| |At 31 December 2020|454,975|-|454,975| ||==========|=========|==========| |At 31 December 2019|485,115|-|485,115| ||==========|=========|==========| - 12 - ## **INSTITUTE OF PRESENTATION BROTHERS** ## **NOTES TO THE FINANCIAL STATEMENTS (Continued)** ## **FOR THE YEAR ENDED 31 DECEMBER 2020** ## **7. INVESTMENTS** |**INVESTMENTS**||| |---|---|---| ||**2020**|**2019**| ||**£**|**£**| |**Listed investments:**||| |Market Value at 1 January 2020|3,272,424|2,938,398| |Acquisitions (at cost)|439,080|836,842| |Disposals|(1,621,697)|(867,971)| |Net unrealised revaluation gain|97,212|365,155| ||-----------------------|----------------------| |**Market value at 31 December 2020**|2,187,019|3,272,424| |Cash held for reinvestment|580|23,050| ||-----------------------|----------------------| |**Total investments**|2,187,599|3,295,474| ||===========|===========| |The above portfolio consists of the following:||| |Fixed Interest stocks|-|493,406| |UK Equities|1,819,531|1,945,152| |UK Property Fund|-|10,432| |European Equities|-|91,761| |Pacific (inc. Japan) Equities|-|27,047| |North American Equities|-|212,367| |Global Equities|-|64,687| |Property Fund|368,068|393,715| |Alternative investments|-|33,496| |Cash pending investment opportunities|580|23,050| ||---------------------|---------------------| |**Market value at 31 December 2020**|2,187,599|3,295,474| ||==========|==========| All holdings, other than cash pending investment opportunities, are quoted on a recognised stock exchange or are valued by reference to such investments. ## **8. INVESTMENT PROPERTIES** ||**2020**|**2019**| |---|---|---| ||**£**|**£**| |**Investment property**||| |Balance brought forward at 1 January|1,419,000|-| |Balance transferred from freehold property|-|730,365| |Net gain on revaluation|56,000|688,635| ||---------------------|------------------| ||1,475,000|1,419,000| ||=======|==========| The property was revalued on an open market basis at 31 December 2020. - 13 - ## **INSTITUTE OF PRESENTATION BROTHERS** ## **NOTES TO THE FINANCIAL STATEMENTS (Continued)** ## **FOR THE YEAR ENDED 31 DECEMBER 2020** |**9.**|**CREDITORS**|**2020**|**2019**| |---|---|---|---| |||**£**|**£**| ||Other creditors and accruals|14,632|5,333| ||Grants awarded but not paid|27,500|27,500| |||-----------------|-----------------| |||42,132|32,833| |||========|========| ## **10. DESIGNATED FUNDS** - a) The Trustees have designated funds out of the unrestricted funds for specific purposes as follows:- ## **Retirement Fund** A fund has been designated to provide for the Charity’s commitment to provide for the retirement and care in old age and sickness of the Institute’s members. During 2009, a transfer of £2m was made to establish the Fund. The needs of members and the adequacy of the Fund will be kept under review by the Trustees. ## **Fixed Assets Fund** In order to fulfil its charitable objectives the Institute needs a large number of properties. These properties, although they are unrestricted assets cannot be realised without undermining the Institute’s work and the Trustees therefore feel that it is appropriate to reflect the investment in fixed assets by means of a designated fund. Transfers reflecting the net movement in fixed assets are made each year. |**b)**|**Analysis of Movements**||**Fixed Assets**|**Retirement**|**Total**| |---|---|---|---|---|---| ||||**£**|**£**|**£**| ||Balance at 1 January 2020||485,115|2,000,000|2,485,115| ||Net expenditure||(33,425)|-|(33,425)| ||Transfer to general funds||3,285|-|3,285| ||||-----------------------|-------------------|-----------------------| ||Balance at 31 December 2020||454,975|2,000,000|2,454,975| ||||**==========**|**=========**|==========| |**1.**|**ANALYSIS OF NET ASSETS**||||| ||||**Designated**|**Funds**|| |||**General**|||| |||**Fund**|**Fixed Assets**|**Retirement**|**Total**| |||**£**|**£**|**£**|**£**| ||Tangible fixed assets|-|454,975|-|454,975| ||Investments|1,662,599|-|2,000,000|3,662,599| ||Current assets|1,423,576|-|-|1,423,576| ||Current liabilities|(42,132)|-|-|(42,132)| |||---------------------|----------------------|-----------------------|----------------------| |||3,044,043|454,975|2,000,000|5,499,018| |||==========|==========|===========|==========| ## **11. ANALYSIS OF NET ASSETS** ## **12. RELATED PARTIES** During the year the charity paid a sum of £10,000 (2019 - £15,000) to the House of Mercy. Br Roy Kennedy is a trustee of both charities. There were no amounts owing or owed at the year-end. - 14 -