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2020-12-31-accounts

Registered Numbers 252041/SC039359

ROMAN CATHOLIC PURPOSES IN CONNECTION WITH THE CONGREGATION OF THE MOST HOLY REDEEMER (KNOWN AS THE CONGREGATION OF THE MOST HOLY REDEEMER AND THE REDEMPTORISTS)

ANNUAL REPORT

FOR THE PERIOD ENDED 31 DECEMBER 2020

THE CONGREGATION OF THE MOST HOLY REDEEMER

CONTENTS

FOR THE PERIOD ENDED 31 DECEMBER 2020

Page
Charity Information 1
Report of the Trustees 2 - 12
Report of the Independent Auditors 13 - 15
Statement of Financial Activities 16 - 17
Balance Sheet 18
Statement of Cash Flows 19
Notes of the Financial Statements 20 – 28
Income and Expenditure Account 29 - 30

THE CONGREGATION OF THE MOST HOLY REDEEMER

CHARITY INFORMATION

FOR THE PERIOD ENDED 31 DECEMBER 2020

TRUSTEES: Rev R Reid C.Ss.R
Rev C Randall C.Ss.R
Rev A Burns C.Ss.R.
Rev C Corrigan C.Ss.R
Rev T Buckley C.Ss.R.
Rev E Gweme C.Ss.R (Appointed 12 June 2020)
FINANCIAL DIRECTOR: Mrs S Perrins
REGISTERED OFFICE: St Mary's
8 Clapham Park Road
Clapham
London
SW4 7AP
REGISTERED NUMBERS: 252041
SC039359
AUDITORS: Azets Audit Services
Athenia House
10-14 Andover Road
Winchester
Hampshire, SO23 7BS
BANKERS: NatWest
City of London Office
1 Princes Street
London, EC2R 8PH
SOLICITORS: gunnercooke
1 Cornhill
London, EC3V 3ND
Pothecary Witham Weld
70 St. George’s Square
London, SW1V 3RD

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THE CONGREGATION OF THE MOST HOLY REDEEMER

REPORT OF THE TRUSTEES

FOR THE PERIOD ENDED 31 DECEMBER 2020

The Trustees present their report with the financial statements of the Charity for the period ended 31 December 2020. The financial statements have been prepared on 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 "Accounting and Reporting by Charities” issued in 2019.

OBJECTIVES AND ACTIVITIES

The Trust Deed dated 23 February 1967 which is the governing document of the Congregation sets out its objective: “The charitable purposes which advance the religious and other charitable work for the time being carried on by or under the direction of the Society as the Trustees, with the approval of the Superior, shall from time to time think fit”. The Congregation continually assesses the effectiveness with which it achieves this objective: though such reviews are not always or easily subjected to statistical analysis as much of the work is of a 'spiritual' nature. The Trustees coordinate the work of around seventy members of the Congregation based ln the UK and Zimbabwe and a larger number of people who work for the Congregation, largely on a voluntary basis. There are currently five Redemptorist communities in the UK and four in Zimbabwe. For the purpose of reporting on Public Benefit, the various activities of the Charity and its charitable work are listed with greater detail.

The trustees confirm they have complied with the duty under the Charities Act 2011 to have due regard to public benefit guidance published by the Charities Commission.

PARISHES

Parish Communities: The Redemptorists staff four parishes in England:

St Mary's Clapham

This is a large, multi-racial Catholic parish in south-London with a wide socio-economic mix. Two Redemptorists are fully occupied with the parish. Other members of the community assist with the church services.

The Abbey Parish, Erdington, Birmingham

This is a large, vibrant parish staffed by two Redemptorists that attracts people from beyond the parish boundaries.

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THE CONGREGATION OF THE MOST HOLY REDEEMER

REPORT OF THE TRUSTEES

FOR THE PERIOD ENDED 31 DECEMBER 2020

Bishop Eton, Liverpool

This is a very popular parish church in a residential area of south Liverpool. lt is staffed by a priest from the community: the parish priest. Other members of the community are also involved with the celebration of Mass and other services within the church.

St Mary's Woolton, Liverpool

In 2011 the Archdiocese of Liverpool requested that the Trustees accept the pastoral care of the neighbouring parish of St Mary's, Woolton. St Mary’s parish is of a similar size to Bishop Eton. The pastoral care of St Mary's has developed well with the members of the community assisting the full time Redemptorist Parish Priest in the provision of church services. St Mary's also has its own Catholic Primary School. Again, throughout the pandemic, ministry was severely restricted and has slowly resumed following the government guidelines.

St Benet's and St Hilda's Sunderland

The Redemptorists withdrew from St Benet's, Sunderland in 2011. In consultation with the local Catholic Diocese of Hexham and Newcastle, the Charity continues to negotiate the future of the Church of St Benet’s, which is still in use by the Diocese, and that of the unoccupied adjoining monastery. These negotiations have continued throughout the current reporting period.

Further note

Every Catholic parish is a constituent part of the local Catholic Diocese. By the staffing of these parishes, we are also contributing to the overall Public Benefit of these Registered Charities: Southwark (South London & Kent); Birmingham; Liverpool.

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THE CONGREGATION OF THE MOST HOLY REDEEMER

REPORT OF THE TRUSTEES

FOR THE PERIOD ENDED 31 DECEMBER 2020

PASTORAL CENTRES

The Charity currently owns and runs a Pastoral & Retreat Centre.

St Mary's, Kinnoull, Perth.

St Mary's Monastery has been the Redemptorists principal location in Scotland since the Monastery was first built in the 1860’s. lt was a community for the charity’s members, Redemptorist priests and brothers based in Scotland. ln addition to the resident community it has also served as a Retreat Centre for clergy and lay retreats. This ministry has greatly expanded over the past forty years. In recent years, in addition to the two renewal courses for seven weeks, there have been a variety of retreats for the Catholic and Christian community. 'Kinnoull' provides retreat and conference facilities for a wide variety of organisations including the Episcopal Church, Alcoholics Anonymous, professional groups, and self-help groups. In this reporting year our activities have been severely restricted, if not stopped altogether, by the Covid-19 pandemic. ‘Kinnoull’ provided a daily Mass in the Monastery, open to the local Catholic community, which had to stop during lockdown. It is also a base for ministry in parishes across Scotland. The Centre is used by the Province for our own Provincial and Congregational meetings and retreats. Again, all these activities have been restricted by the pandemic. Staff have been furloughed while the centre is not being utilised

As from March 2020, due to the response to Covid-19, we had to cancel all our courses until the summer. This resulted in returning deposits to those who had booked, and in some cases people had paid the full mount which also had to be returned.

Our biggest fear continues to be the future of the retreat house. We are totally dependent on guests for our income. We have no other source of support. Some courses were presented, but to very few participants and private retreatants came for the occasional few days break.

Our community is now reduced to 10 persons. We have decided on a strategy to ensure our continued health and wellbeing. Our programme to keep us engaged daily in an agreed way of living continues.

St Clement’s, Chawton, Alton.

There were two Redemptorists belonging to the community. One is the full-time Director at Redemptorist Publications, and the other priest died in a care home during this reporting period. A Redemptorist Brother, a writer of icons, joined the community. Since March 2020, a new pastoral work of Redemptorist Publications at St Clement’s has been a weekly online Mass. Donations from this ministry have gone to support Redemptorist Publications at this time. Redemptorist Publications is a separate Registered, Charitable Company under the same Trustees as the Main Charity.

THE REDEMPTORIST MISSION, ZIMBABWE

The Redemptorists are based in four locations in Harare from where they serve a number of township parishes and outlying areas where some of the poorest are living. Two of these locations are also residences for those training to be Redemptorists. As this community is still growing it is called a Region with a local administration, but it remains under the auspices of the Trustees of the London Province. The Region's activities include:

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THE CONGREGATION OF THE MOST HOLY REDEEMER

REPORT OF THE TRUSTEES

FOR THE PERIOD ENDED 31 DECEMBER 2020

ln consultation with the Province Trustees, the leadership team in Zimbabwe agreed to accept the invitation of the Archdiocese of Harare to take pastoral responsibility for a rural mission at Chiweshe mentioned above, which is approximately two hours’ drive from Harare. A Redemptorist priest is working full time as parish priest and is regularly assisted by two others. A significant financial investment is required to provide a community house and other basic infrastructure.

All this work is managed by fundraising and donations. The Congregation does not receive any grants for the education of the students and the administration of the parishes.

The Region of Zimbabwe also supports the mother Province with the presence of two of its members who work in our parishes in Birmingham and Clapham. We have applied to obtain a visa for a third member whose arrival is eagerly awaited.

This variety of activity in the different communities of the Congregation in the UK and Zimbabwe is brought together in the common objective described in the Constitutions and Statutes which govern the Congregation throughout the world and which are approved by the Roman Catholic Church, in which it is stated: "Preference for situations where there is a pastoral need, that is, for evangelisation in the strict sense together with the choice in favour of the poor and promoting their fundamental rights to justice and freedom. The means employed must be effective and at the same time consistent with the Gospel".

During this past year, there has been increasing political instability in Zimbabwe with continued super hyper-inflation and much poverty. In addition, due to drought the crops have been poor for several years. In addition, the present pandemic has meant lockdown, and this has caused huge hardship for both the beneficiaries of our ministry as well as for the Religious community members themselves. Even the meagre collections of a few dollars a month have disappeared and assistance has to be provided from UK.

Volunteers

The London Province of the Congregation of the Most Holy Redeemer benefits from the help of many volunteers, whose work and commitment varies from place to place. In the parishes, for example, many people assist with the work of the local community, some on a casual basis and others on a more regular basis. The monetary value of such charitable assistance is considerable and difficult to calculate.

Each year, also, a large number of people help in fund-raising for the Congregation's work in Zimbabwe, where our priests and brothers make a significant difference to the living conditions of many of the local people in the vicinity of Harare – although this year with the closure of churches in UK for lengthy periods due to the Covid-19 pandemic, this funding has decreased considerably. The Provincial Council has developed a programme of formation for Redemptorist Associates.

ACHIEVEMENTS AND PERFORMANCE FOR THE PERIOD TO 31 DECEMBER 2020

The Congregation of the Most Holy Redeemer has the particular responsibility within the Roman Catholic Church of explicit preaching of the Christian Gospel. ln achieving this aim the Congregation within the UK works in co-operation with the Congregation throughout the world and with the diocesan bishops of England & Wales, and Scotland.

The major objectives for The Trustees in the period to 31 December 2020 included:-

Developing the province plan: The Trustees continue their reflections on the future 'shape' of the London Province of the Redemptorists. ln addition to the criteria mentioned above the following has an important bearing on the decisions of the Trustees: the ageing profile of the members; the small number of men in formation, and the pastoral needs of the wider Catholic community in the next few years.

Collaboration with other Redemptorists : After the last General Chapter of the Redemptorist Congregation in Pattaya, Thailand, 2016, the five regional Conferences that were established to promote restructuring and to further the aims of the Congregation, continued to develop this project.

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THE CONGREGATION OF THE MOST HOLY REDEEMER

REPORT OF THE TRUSTEES

FOR THE PERIOD ENDED 31 DECEMBER 2020

The Conference of Europe: The London Province of the Redemptorists is part of the Conference of Europe, and Fr Provincial (The Chair of Trustees) participates in its meetings.

At North European Regional level there are regular meetings of the Provincial Councils of the London, Dublin, St Clements Provinces, (the latter is an amalgamation of the Redemptorists of north Germany, Holland, Switzerland, and the Flemish region of Belgium) and the Province of Vienna/Munich. At these meetings we are looking at ways of greater collaboration within our north European region.

The Body of Trustees is registered with the UK Border Agency to act as a sponsor for Redemptorists working in the UK as religious workers.

IMPROVEMENTS TO PROPERTIES

St Mary’s, Clapham

A more radical plan to provide suitable accommodation for elderly confreres with the provision of a lift to the upper floors has been approved. Work commenced in October 2020. Three community members involved in the parish ministry and the Ace of Clubs moved into one of the houses owned by the Redemptorists on the former Scaffold Yard. Two elderly confreres moved into a care home, while others found accommodation elsewhere for the duration of the refurbishment project. Finance for the project will depend on the successful development of St Mary’s Hall.

The properties from The Scaffold Yard development have been beneficial. New tenants have settled into one property while the second has been restored in preparation for it to be available as temporary accommodation for members of the community when the refurbishment of the monastery begins.

St Mary’s Hall: Plans to dispose of the Hall to developers which will include the provision of a smaller Parish facility have been turned down by Lambeth Borough Council. The property is being remarketed

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THE CONGREGATION OF THE MOST HOLY REDEEMER

REPORT OF THE TRUSTEES

FOR THE PERIOD ENDED 31 DECEMBER 2020

Bishop Eton Monastery, Liverpool.

Ongoing maintenance of this old building is constant, as new safety issues appear. A project to replace/renew windows throughout the building is slowly making its way through the approval process of Historic Buildings. FINANCIAL REVIEW

The full detailed figures in the financial activities are shown on the following pages of the Report and Accounts.

Total income in the period reduced from £1.75m to £0.83m mainly due to the effects of COVID. Of this restricted income reduced from £380,895 to £147,787 and Unrestricted income reduced from £1,370,415 to £684,855.

Rental income has reduced this period as one of the Clapham Townhouses was not rented while it was refurbished ready for use by members of the congregation while the Clapham Refurbishments take place.

Donations and legacies have held up well, but most other income has reduced significantly for reasons detailed earlier in the Trustees Report. Investment income has remained stable for the period when compared to a full year in the comparative.

Total expenditure of the charity has reduced from £1,771,426 to £1,161,781. Of this restricted expenditure has reduced from £481,930 to £233,038 while unrestricted expenditure has reduced from £1,289,496 to £928,743.

The main effects on the restricted expenditure has been the large reduction in costs at the Ace of Clubs shops due to their enforced closures, reductions in Zimbabwe costs and other general reductions.

Regarding unrestricted expenditure, these are fairly comparable for the period against the prior 12 month period but there have been large reductions in travel costs and other cost categories due to the restrictions in place, and savings on wages as a result. There was a £150,000 payment to Rome during the year which represented the amount due following the sale of Hawkstone.

The unrestricted fund shows a deficit of £243,888, however the investment performance performed very well providing a gain in the year of £733,304 which moved the deficit to a net surplus of £480,336. The restricted funds showed a £85,251 deficit before a similar gain on the investment funds of £376,873 again gave a surplus of £300,702, and therefore an overall surplus of £781,038. The investment value gain at the period end followed significant losses of £547,742 in the prior year.

The Trustees hope that following the lifting of restrictions income will increase particularly from St Mary’s Kinnoull which had been performing well following the extensive restoration work undertaken.

Although there are now some modernised older properties and a few new properties in the Charity’s portfolio, it is appropriate to repeat comments in recent years accounts concerning the assets of the Congregation. On first reading of the raw figures in the Audited Accounts it could be judged that the Congregation in the UK is rich in assets, particularly in relation to property assets. This is far from the reality.

The Trustees policy decisions, to carefully manage expenditure of Repairs and Renewals of the mostly old buildings that make up the property assets, has avoided much larger deficits and supports their actions in seeking to maximise the value of assets surplus to current requirements and reinvesting in the remaining assets and acquiring new low maintenance assets and others that will provide future significant rental income to aid the lack of pension income for the confreres.

Most of the property portfolio remains old and the nature of these assets and their age, means keeping them in good repair is a continual challenge for the Trustees/Charity and the costs involved are significant. However, they are essential to the functioning of and the continuance of the work of the Congregation and the trustees are seeking to continue to progress a programme of repair, maintenance and in some cases restoration or upgrade e.g. St. Mary’s Clapham where the Trustees are planning a major internal restoration following on an external restoration several years ago, through careful management of the Charity’s resources combined with hopefully, invaluable support from various Grant Agencies.

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THE CONGREGATION OF THE MOST HOLY REDEEMER

REPORT OF THE TRUSTEES

FOR THE PERIOD ENDED 31 DECEMBER 2020

Significant progress has been made in delivering the Strategic Plan in recent years with the Restoration of St Mary’s Perth, St Mary’s Clapham and Bishop Eton Liverpool and disposal of Hawkstone Hall/Cottages. Plans are still being progressed to dispose of buildings in Sunderland. Reference should be made to the ‘Property Fixed Assets/Designated Property Fund’ Policy Review later in this Report.

The Conditions attached to the Grant from Historic Scotland for the 40% Grant for the External Fabric Restoration continue to apply including a legal charge over the Church/ Monastery.

The General funds (or free reserves) held by the Trustees of net £4.89m (5 April 2020: £4.4m) have remained consistent. As such there are sufficient reserves to cover twelve months expenditure as well as coping with the increased costs of care of the elderly and sick Priests and Brothers despite lack of sufficient pension provision. The coming on stream of new sources of Long Term rental income and investment income will continue to assist.

PROPERTY FIXED ASSETS/DESIGNATED PROPERTY FUND POLICY REVIEW

The Trustees have undertaken a complete review of the Charity's property assets in terms of valuation, depreciation and impairment. The review has been driven by the need to provide a realistic assessment of the tangible financial value of the property assets to the Charity and to provide donors and grant agencies with a more realistic and up to date view of the assets of the Redemptorists.

Of course, many of the properties have a value in terms of the achievement of the objectives and work of the Charity that are far more meaningful than the cold financial market value i.e. all the properties are the homes and working places of the members of the Redemptorists and through which some of the work of the Charity is performed in terms of Public Benefit.

With the need to progress the Redemptorist withdrawal from 3 locations, professional valuations were necessary and were obtained and as a result these valuations were reflected in the accounts for the year to 5 April 2012, replacing the previous historic Fire Insurance valuations. Also in recent years, where the Redemptorists have been required to hand back responsibility of the care of a Parish Community to the Archdiocese due to non-availability of manpower, it is clear from these experiences that the Church, Parish Hall and priest living accommodation is required to be gifted to the Archdiocese Trustees. Therefore, the Trustees have decided to take the opportunity to allocate a value more in keeping with the value to the Charity of these specific assets.

The depreciation Policy relating to property assets has also been reviewed. Although there is no reason to doubt that the monasteries and churches will have further useful life for at least the next 100 plus years, the Trustees consider that it is appropriate to discontinue with the past practice of not providing for depreciation of property assets. This Policy will continue to be assessed annually.

THE LONDON PROVINCE'S STRATEGIC PLAN

THE LONDON PROVINCE'S STRATEGIC PLAN

The Province Plan 2007-2018. The purpose of original Province Plan was to enable the Trustees to restructure the Charity's physical assets in order to re-focus its mission. The guiding principles/criteria in this process were:

Plans for 2021

During this period the Charity continued with the second year in its four-year cycle. A new Provincial Leadership and Chapter (Governing Body) were elected in 2018 and the new leadership team began their four-year mandate in January 2019. These executive groups are likely to make further developments to the Strategic Plan, under the guidance of the leadership of the Conference of Europe.

The probable 'future shape' of the Charity: The Redemptorists continue their ministry in three major locations: London, Liverpool, and Perth, Scotland. In addition there is Redemptorist Publications and St Clements House at Chawton in Hampshire, and the parish in Erdington, Birmingham.

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THE CONGREGATION OF THE MOST HOLY REDEEMER

REPORT OF THE TRUSTEES

FOR THE PERIOD ENDED 31 DECEMBER 2020

Parish Mission apostolate: it is hoped that from Birmingham and Perth we will continue with a small team for external pastoral ministry; parish missions and retreats.

Progressing the Mission of the Charity: however, in order to progress the principal purpose for restructuring: to further the mission of the Charity, the Trustees are open to suggestions for a 'new venture' exploring innovative and creative ways to do this.

Redemptorist Associates: the Trustees recognise the invaluable contribution of the many 'volunteers' and employees who assist the full-time members of the Charity i.e. the priests and brothers, in fulfilling its charitable purposes. For some of these men and women there is a desire to share in the vision and spirituality that underpins these purposes. During the period under review, a group of Associates has been established in our three main centres, Perth, Liverpool and London, with regular meetings. During the pandemic, they continued to meet via Zoom, with a number of formation programmes. They have established a WhatsApp group for mutual support.

Improved care for sick members: The Trustees have a sub-committee (Secretariat) for the Care of sick and elderly Redemptorists. Its remit is to review the current arrangements for the provision of the appropriate level of care for its sick, and elderly/infirm Redemptorists, and to advise the Trustees on the use of the designated Fund of £0.57 million (invested with Quilter Cheviot Investments) for these purposes. This work is ongoing with planning for refurbishment of facilities at St Mary’s, Clapham and the part-time employment of a professional nurse for the care of the elderly in Bishop Eton, Liverpool.

COVID-19: The global pandemic has massively impacted the life and ministry of Redemptorists, not only in Britain and Zimbabwe, but throughout the world. Here at the end of this reporting period, all our communities continue under national restrictions/lockdown. Our parish ministries have had to be adjusted to fit with requirements for numbers and social distancing. New means of communication through the internet continue to be explored. The closure of parishes on a national level has caused great difficulties with Redemptorist Publications as our regular income from the weekly Bulletins has been cut off and contact with people through parishes severely restricted making all sales very difficult. The Pastoral Centre in Kinnoull has been closed intermittently to the public cutting off the main source of income. Overall, we have entered a new era in the Church and will face a challenging future as we develop in the post Covid19 world.

INVESTMENT POLICY

The Trustees have the power to invest as they see fit. The Policy is to maintain income whilst preserving the real value of the investment assets. The day to day operation of this Policy is carried out by the Investment Managers’, appointed by the Trustees under agreed investment policies. The Trustees reviewed the Policy in the year to April 2019 and this was approved and adopted in December 2018.

In line with the volatile state of the investment market during the period, the Charity has seen wide fluctuations in the value of its investments. The Trustees take a long term view and hope to see improvements in future years and in the meantime increasing dividend income is a key focus for the Investment Managers.

In addition, the nature of the Congregation’s work requires that some funds are retained in liquid form, and are held in short term bank deposits. Here the continuing low levels on interest income continue to have a significant impact on total investment income and the overall income of the Congregation.

RESERVES POLICY

The Trustees have developed and put in place a Reserves Policy, this being adopted in May 2018. It is the policy of the Charity to hold reserves in its general funds which have not yet been committed or designated for any particular purpose. The Trustees have set aside these reserves in order to protect the future operations of the Charity from the effects of any unforeseen variations in its income streams as part of the policy of good financial management practice. The Trustees have set the level of these reserves after undertaking a thorough assessment of the Charity needs and feel that the level of free unrestricted reserves, those not being included in the property or sick and retired reserves, which stand at £4,887,910 are adequate to carry out this policy.

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THE CONGREGATION OF THE MOST HOLY REDEEMER

REPORT OF THE TRUSTEES

FOR THE PERIOD ENDED 31 DECEMBER 2020

RISK MANAGEMENT

With the benefit of the considerable work put into the development of the Province Plan by the Trustees referred to earlier, the Trustees have thoroughly assessed the key risks that impact upon the future viability of the Province in the UK. The evaluation of the risks focused on the reducing availability of active members of the Congregation, the condition of the property assets, the need to focus on core priorities of the work of the members and to plan to look after the increasing number of elderly members.

Moving forward, a programme of reviews of each location over a period of years is now in place with a series of specific risks also to be assessed by all locations.

CHARITABLE DONATIONS

The Charity made charitable donations in the period of £100,650 (year to 5 April 2020 - £126,515).

STRUCTURE, GOVERNANCE AND MANAGEMENT

The Congregation of the Most Holy Redeemer is a Charitable Trust established by a Trust Deed dated 23 February 1967. All the Trustees are Priests or Brothers of the Congregation which was authorised by the Roman Catholic Church as a religious order in 1749 and has spread to most countries throughout the world. The Congregation has been working in the UK since 1845 where it currently has about forty-five members.

Trustees are elected by the members of the Congregation for a period of four years; the principal Trustee (Provincial Superior) does not normally hold office for more than three terms except in special circumstances. Trustees are trained within the ordinary procedures of the Roman Catholic Church and are subject to the laws of the Church. ln all matters relating to finance and civil law the Trustees are aware of the importance of seeking appropriate professional advice.

The Trustees of the Congregation are also Trustees of Redemptorist Publications (Registered Charity No 1088879; Registered Company No 03261721) and, The Ace of Clubs (Registered Charity No 1055187; Registered Company No 03080066). Both of these charitable companies are closely linked to The Congregation of the Most Holy Redeemer in their objectives of spreading the Christian Gospel and helping those in society who are in greatest need.

Members of the Congregation do not possess personal property and do not earn personal income and the Congregation’s primary source of income is voluntary donations from those for whom they work. ln this context the major risks to which the Charity is exposed are twofold.

The Priests and Brothers who are members of the Congregation and engage in its charitable work are decreasing in numbers and increasing in age. The number of Redemptorist Priests and Brothers in 1992 aged 65 and below was 72, at present it is 14 (including 3 from Zimbabwe). It should be noted that many Redemptorists above that age are still actively involved in the charitable work of the Congregation.

Also, the number of donors to the Charity is decreasing as the numbers of Catholics attending on a weekly basis continues to decline.

The Trustees were put on notice in March 2021 of a potential claim and are taking legal advice. In light of this and as a precaution, the Trustees made a Serious Incident Report to the Charity Commission on 9 April 2021. The Trustees conducted an internal investigation of this matter and have continued to liaise with the Charity Commission. In addition, the Trustees reported this historical matter under the Catholic Standards in Safeguarding (“CSSA”) and have also filed a report with the police. To date the Trustees have not been required to do anything further by the regulators and have not been contacted by the police. Solicitors and Counsel have been instructed to advise the Trustees about the potential claim. No claim has been issued. The Trustees understand that medical reports are being prepared on behalf of the potential claimant, but delays have occurred in progressing this due to backlogs caused by the various Covid-19 lockdowns.

The Trustees made a serious incident report in October 2021 about an unrelated matter. This matter is in the public domain and has been widely reported in the press. It involved the conviction of a member of the Congregation in relation to historical matters. The Trustees have been liaising with regulators and the authorities throughout and at this stage there is no further action required. The Trustees issued a statement at the time and continue to offer their support to the families involved.

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THE CONGREGATION OF THE MOST HOLY REDEEMER

REPORT OF THE TRUSTEES

FOR THE PERIOD ENDED 31 DECEMBER 2020

The Trustees have undertaken a detailed internal safeguarding review in 2021 and have taken professional and regulatory advice. The Religious Life Safeguarding Service (“RLSS”) has recently been set up under the auspices of the CSSA to provide an umbrella organisation for religious orders to access best practice and guidance. The Trustees are liaising with this service. The Trustees are in the process of approving an updated safeguarding policy, internal safeguarding protocols, and putting in place additional safeguarding team members, one of whom will be an independent safeguarding professional.

Fundraising

Fundraising generally takes place in parishes by members of the Redemptorists and other volunteers. The Charity maintains its overall responsibility over fundraising activities. The Charity has not consulted a professional fund raiser during the year.

No complaints have been received about fundraising activities. In undertaking these activities, concern is taken to avoid unreasonable intrusion on a person's privacy, unreasonably persistent approaches are avoided and undue pressure is not placed on people.

The Charity is not required to register with the Fundraising Regulator and has not done so but seeks, nonetheless to maintain high standards.

TRUSTEES

The Trustees during the year under review were:

Rev R Reid C.Ss.R (Provincial Superior) Rev A Burns C.Ss.R (Vicar Provincial and Provincial Bursar) Rev T Buckley C.Ss.R. (Consultor) Rev C Corrigan C.Ss.R. Rev C Randall C.Ss.R. Rev E Gweme C.Ss.R.

Note on 30 November 2020 Rev R Reid was appointed Provincial Superior replacing Rev R McAinsh who retired from this position.

The Trustees are elected by the members of the Congregation and serve for a four-year term. Each Trustee is responsible for monitoring the activities of the Charity in specific, operational areas and reporting points for action at Trustees meetings. The Provincial Superior cannot hold office for more than three terms unless permission is granted by the Congregation’s General Superior. Trustees are trained within the ordinary procedures of the Roman Catholic Church and are subject to the laws of the church. For finance and civil law matters the Trustees are aware of the importance of seeking appropriate professional advice.

11

THE CONGREGATION OF THE MOST HOLY REDEEMER REPORTOF THE TRUSTEES FOR ThE PERIOD ENDED 31 DECEMBER 2020 STATEMENT OF TRii¥fEES' RESPONSIBIUTIES The TtusleE$are r&swnsib￿for prewaring theTwstee5' Annual ReportBndth8 fimdal ststements In accudanceimth 8Wlcable law and United lQngdom Accounting Sl8ndard5 (United Kingdom Genwally Accepte(l ACQWnti￿ PraLcel. law 8pF1Ka￿e to Char￿05 in E￿and & W818s and Su)UaTrJ requiTes the Tru8t88S to pYpp8re financjal ststemerits f¢xeach finantwl yearwhich givo 8 tru8 and fairviEW ol Ihe state olaffaks olthg Charity of lh8 resour ap ￿l¢￿tiOn ol r8sourrm ofthe Chadty foythe p8md. ID prop3rino theseffinandal st8i•m8nts theTru5tEes are requitd tr. $dect suitable aecounting p¢l￿e$ and tt)en 4)ply them con5iStenlly, ob8erye the Tn&thods and wntipl&s in the Gharibes SORP 2019 IFRS1021: make judg8meDts End a¢munting 85timatesthat reawna￿¢ and prudent.. stste whether Sp￿￿ble accounting 51andaTds have been frAI￿o0, SUt48Ct lo any materf81 dep8rtvre dlsdosed and explained iftthe firwGial 8tatertients'. prepare the fin8noal stalemgntsonthe gryng concem bs4$ tiss InaFgropr4teto wesumetPolthe Charfty 4 (x)nbnue in operation. The Tru&t•esare respon$itAefoT kwng prowacL))unting record8thatdtsdcowhh r80SOnab￿ accuracy at anytime the flnanual p¢tsitEon of the Charity and en8￿8 them to er￿￿re that the 5tateThnts comply wth the Ch8ritses ?nd Tnjsteo Invèstrnent ISts)d8ndl Act 2005. the Ch8ribes Accwnts ISrkn118n¢ll Regulations 2￿)6 las aTri8ndedl, the CharitEs Act 2011, ttts chari￿29 IAtXJWTrts ¥nd Report51 regulation5 2(J)8 and Ihè PTw4or6 Olthe trJ51 dgad, They ere also ￿SponSiblef<￿safSgUardin9 the assets orth Charity and hencef¢rtsking reasonable Steps forlhe prevention and dètec¥on ol fraud and ob* IrreguLgritk88. ON BEHALF OF THE 80ARD: Rav R Reid ¢.S>R-TRUSTEE D8ted'. 12

THE CONGREGATION OF THE MOST HOLY REDEEMER

INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES

FOR THE PERIOD ENDED 31 DECEMBER 2020

Opinion

We have audited the financial statements of The Congregation of the Most Holy Redeemer (the ‘charity’) for the period ended 31 December 2020 which comprise the statement of financial activities, the balance sheet, the 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 other information comprises the information included in the trustees annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, 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.

13

THE CONGREGATION OF THE MOST HOLY REDEEMER

INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES

FOR THE PERIOD ENDED 31 DECEMBER 2020

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 and the Charities Accounts (Scotland) Regulations 2006 require us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement, the trustees are responsible for the preparation of the 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 charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity 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 section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and report in accordance with the Acts 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.

Extent to which the audit was considered capable of detecting irregularities, including fraud

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:

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.

14

THE CONGREGATION OF THE MOST HOLY REDEEMER

INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES

FOR THE PERIOD ENDED 31 DECEMBER 2020

A further description of our responsibilities is available on the FRC's website at: https://www.frc.org.uk/auditors/audit-assurance/auditor-s-responsibilities-for-the-audit-of-the-fi/description-ofthe-auditor%E2%80%99s-responsibilities-for This description forms part of our auditor’s report.

Use of our report

This report is made solely to the charity’s trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008 and Regulation 10 of the Charities Accounts (Scotland) Regulations 2006. Our audit work has been undertaken so that we might state to the charity’s trustees those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

24 June 2022 Michael Tizard (Senior Statutory Auditor) Date: ………………………………. for and on behalf of Azets Audit Services Statutory Auditor Athenia House 10-14 Andover Road Winchester Hampshire SO23 7BS

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

15

THE CONGREGATION OF THE MOST HOLY REDEEMER

STATEMENT OF FINANCIAL ACTIVITIES

FOR THE PERIOD ENDED 31 DECEMBER 2020

31/12/2020
Notes
Unrestricted
Funds
£
Restricted
Funds
£
Income from:
Donations and legacies
2
416,912
83,276
Charitable activities
2
-
3,800
Investment income
2
124,110
31,350
Gain on disposal of tangible fixed asset
2
-
-
Other income
2
143,833
29,361
Total income
684,855
147,787
Expenditure on:
Raising funds
Investment Management costs
20,741
8,992
Charitable activities
General charitable activities
3
908,002
224,046
Total expenditure
928,743
233,038
(243,888)
(85,251)
Gain/(Loss) on revaluation and disposal of
investment assets
9
733,304
376,873
Net income
489,416
291,622
Transfers between funds
(9,080)
9,080
Net movement in funds
480,336
300,702
Fund balances brought forward at 6 April
2020
15,137,624
2,326,370
Fund balances carried forward at 31
December 2020
15,617,960
2,627,072

The notes form part of these financial statements

The Statement of Financial Activities also complies with the requirement for an income and expenditure account under the Companies Act 2006. All activities are continuing.

16

THE CONGREGATION OF THE MOST HOLY REDEEMER

STATEMENT OF FINANCIAL ACTIVITIES

FOR THE PERIOD ENDED 31 DECEMBER 2020

Prior financial year

Notes
Unrestricted
Funds
£
Restricted
Funds
£
Income from:
Donations and legacies
2
886,951
170,722
Charitable activities
2
-
165,856
Investment income
2
231,035
44,317
Gain on disposal of tangible fixed asset
2
83,572
-
Other income
2
168,857
-
Total income
1,370,415
380,895
Expenditure on:
Raising funds
Investment Management costs
4,516
1,809
Charitable activities
General charitable activities
3
1,284,980
480,121
Total expenditure
1,289,496
481,930
80,919
(101,035)
(Loss)/Gain on revaluation and disposal of
investment assets
9
(342,752)
(204,990)
Net income
(261,833)
(306,025)
Transfers between funds
(16,037)
16,037..
Net movement in funds
(277,870)
(289,988)
Fund balances brought forward at 6 April
2019
15,415,494
2,616,358
Fund balances carried forward at 5 April
2020
15,137,624
2,326,370		 Total
£
1,057,673
165,856
275,352
83,572
168,857
1,751,310
6,325
1,765,101
1,771,426
(20,116)
(547,742)
(567,858)
-
(567,858)
18,031,852
17,463,994		 Total
£
1,057,673
165,856
275,352
83,572
168,857
1,751,310
6,325
1,765,101
1,771,426
(20,116)
(547,742)

The notes form part of these financial statements

The Statement of Financial Activities also complies with the requirement for an income and expenditure account under the Companies Act 2006. All activities are continuing.

17

THE COP4GREGAmoN OF THE MOST HOLY REDEEMER BALANCE SHEEr FOR THE PERIOD ENDED 31 DEceMBER 2020 3111212020 0SM4A020 Notes FixeD A8SET8". Tanglblfr assets Investments 7,288,￿0 ,944.744 1S.994 14,479,861 CURRENT A8SEf8: D&)tor8 CaBh at ￿￿k And h hond 10 2.722.405 3.142,896 CREDITORS: ATh)urt8 hlilNJ du• wlthln on¥ y￿r NeTCURREMf ASSET8: TOTAL A69ETS LESS CURRENT LIABILmE8'. 18,245.032 17.463.994 CREOITORS,. Amounts1811iw due afor onè y•8r 12 UNRESTrICTED FUNDS: Propgty fvnd General fund¥ Slck 8ftd retirnd fvnd 14 10.181,747 4.887,910 10272,rJ8 4A36.W3 15.617.980 15.137.624 RESTrICTED FVNDS,. 14 ON BEHALF OF THE 80ARD: Rev R R•id C.Ss.R- TRUSTEE Rov A Bums C.Ss.R- TRUSTEE Approved #rKI auth￿sed for Issue by%￿ 8ogfd ofTruste8s on The notys fomi part oftheseffina￿￿9l 8taternaits

THE CONGREGATION OF THE MOST HOLY REDEEMER

STATEMENT OF CASH FLOWS

FOR THE PERIOD ENDED 31 DECEMBER 2020

Net incoming/(outgoing) resources for year
Depreciation
(Gains)/Losses on investments
Dividends, interest and rents from investments
Profit on disposal of fixed assets
Decrease in debtors
Increase/(Decreases) in creditors
Net cash used in operating activities
Cash flows from investing activities
Dividends, interest and rents from investments
Proceeds from sale of property, plant and equipment
Purchase of property, plant and equipment
Net purchase of investments
Net cash used in investing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents brought forward
Cash and cash equivalents carried forward		 31/12/2020
£
781,038
142,399
(1,110,177)
(155,460)
-
-
312,995
(29,205)
155,460
-
(484,591)
(62,155)
(391,286)
(420,491)
3,142,896
2,722,405		 05/04/2020 05/04/2020
£
(567,858)
200,549
547,742
(275,352)
(83,572)
152,496
(225,623)
(251,618)
275,352
83,572
(35,482)
(122,479)
200,963
(50,655)
3,193,551
3,142,896

19

THE CONGREGATION OF THE MOST HOLY REDEEMER

NOTES TO THE FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 31 DECEMBER 2020

1 . ACCOUNTING POLICIES

BASIS OF PREPARATION

The financial statements have been prepared under the historical cost convention, as modified by the inclusion of investment assets at market value. They have been prepared in accordance with the Charities Act 2011, the Charities and Trustee Investment (Scotland) Act 2005, regulation 8 of the Charities Accounts (Scotland) Regulation and in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2019) and the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS102).

The charity constitutes a public benefit entity as defined by FRS102.

The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.

The principal accounting policies are summarised below. The accounting policies have been applied consistently throughout the period and in the preceding year.

REPORTING PERIOD

The charity has changed its year end to 31 December 2020. The reason for this is to align the year end with a charity under common control. These accounts are for the period from 6 April 2020 to 31 December 2020 (39 weeks) (prior period: year ended 5 April 2020) and as a result, the comparative amounts presented in the financial statements (including the related notes) are not entirely comparable. The trustees received approval for their change of year end from the Charity Commission.

GOING CONCERN

At the time of approving the financial statements, the trustees have reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

INCOME RECOGNITION

All incoming resources are included in the Statement of Financial Activities (SoFA) when the Charity is entitled to the income, it is probable that the income will be received and the amount can be measured reliably. The following specific policies are applied to particular categories of income.

EXPENDITURE RECOGNITION

Expenditure is recognised in the Statement of Financial Activities on an accrual basis as soon as there is legal or constructive obligation committing the charity to that expenditure, it is probably that settlement will be required and the amount of the obligation can be measured reliably. Expenditure includes VAT and is reported as part of the expenditure to which it relates.

20

THE CONGREGATION OF THE MOST HOLY REDEEMER

NOTES TO THE FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 31 DECEMBER 2020

costs of an indirect nature necessary to support them.

FUND ACCOUNTING

Restricted funds are to be used for specified purposes laid down by the donor. Expenditure for those purposes is charged to the fund, together with a fair allocation of overheads and support costs.

Unrestricted general funds are available for use at the discretion of the Trustees in furtherance of the general objectives of the Charity. Unrestricted designated funds are funds which have been designated for specific purposes by the Trustees. The designated property fund represents the values of the buildings as detailed in Notes 8 and 9.

CAPITALISATION AND DEPRECIATION OF TANGIBLE FIXED ASSETS

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is calculated to write down the cost, less estimated residual value of all tangible fixed assets held for Charity use other than buildings by the reducing balance method over their expected useful lives. Items of equipment are capitalised where the purchase price exceeds £1,000. The rates generally applicable are:

Improvements to property 10% straight line Household 15% reducing balance Motor Vehicles 25% reducing balance Buildings 150 years or expected remaining useful life

The Buildings have been reviewed by the Trustees for impairment at the balance sheet date. Where decisions have been made to dispose of assets the impairment has been based on professional valuations obtained. Where there is an expectation of short term exit from a community as part of the future strategy of the province, the carrying value has been adjusted to reflect the remaining working value of the asset to the Charity, and the write off period adjusted to reflect this. For longer term buildings, the Trustees have reconsidered the expected remaining useful life of these properties. It was considered that a period of 150 years was a more accurate reflection of the remaining life of these assets, given their long life to date and the continued upkeep and restoration of these assets.

CASH AT BANK AND IN HAND

Cash at bank and cash in hand includes cash and short term liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

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 then subsequently measured at their settlement value.

EMPLOYEE BENEFITS

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received. Termination payments are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

FIXED ASSET INVESTMENTS

Investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date using the closing quoted market price. The statement of financial activities includes the net gains and losses arising on revaluation and disposals throughout the year.

21

THE CONGREGATION OF THE MOST HOLY REDEEMER

NOTES TO THE FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 31 DECEMBER 2020

Investment properties, which is property held to earn rentals and/or for capital appreciation, is measured using the fair value model and stated at its fair value as at the reporting end date. Any gains or losses on revaluation and disposals are included in the statement of financial activities.

JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

In application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision only affects that period, or in the period of the revision and future periods where the revision affects both current and future periods.

The main accounting estimates of the charity are depreciation and valuation of certain properties.

2. INCOME

Donations and legacies
Apostolic work
Stole fees
Donations received
Mass accounts
Legacies
Charitable activities
Resale income
Investment income
Rents received
Income from listed investments
Bank deposits
Gain on disposal of tangible fixed asset
Other income
Pensions
Other receipts
Furlough grants
Total income		 31/12/2020 Total
£
188,729
17,334
216,150
17,975
60,000
500,188
3,800
62,092
91,889
1,479
155,460
-
105,198
10,169
57,827
173,194
832,642		 05/04/2020 05/04/2020
Unrestricted
Funds
£
Restricted
Funds
£
188,729
-
17,334
-
132,874
83,276
17,975
-
60,000
-
416,912
83,276
-
3,800
62,092
-
60,742
31,147
1,276
203
124,110
31,350
-
-
105,198
-
9,999
170
28,636
29,191
143,833
29,361
684,855
147,787		 £
718,546
55,520
216,733
44,698
22,176
1,057,673
165,856
138,243
128,610
8,499
275,352
83,572
141,958
26,899
168,857
1,751,310

22

THE CONGREGATION OF THE MOST HOLY REDEEMER

NOTES TO THE FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 31 DECEMBER 2020

3. RESOURCES EXPENDED FOR CHARITABLE ACTIVITIES

31/12/2020 05/04/2020
Unrestricted Restricted Total
Funds Funds
£ £ £ £
Wages 187,677 37,993 225,670 308,225
Social Security 10,541 2,665 13,206 23,953
Administration expenses 3,760 - 3,760 12,546
Motor and travel expenses 21,984 - 21,984 60,789
Food and drink expenses 77,166 - 77,166 137,032
Restoration costs - 2,166 2,166 -
Repairs and renewals 27,771 - 27,771 90,547
Sundry expenses 18,699 1,108 19,807 17,434
Donations paid 27,786 72,864 100,650 126,515
Community expenses 79,374 4,484 83,858 347,190
Utilities 59,568 5,978 65,546 106,859
Clapham shop rent - 33,003 33,003 55,343
Medical and charities 6,800 - 6,800 18,136
Insurance 36,189 499 36,688 46,700
Other education and FSC fees 4,461 - 4,461 18,349
Higher studies and formation - 62,650 62,650 28,802
Depreciation 142,399 - 142,399 200,549
(Profit)/Loss on disposal of tangible fixed assets - - - -
Bank charges and interest 2,553 636 3,189 3,627
Contribution to Rome 150,327 - 150,327 -
Governance costs (note 4) 50,947 - 50,947 162,505
908,002 224,046 1,132,048 1,765,101
4. GOVERNANCE COSTS
31/12/2020 05/04/2020
£ £
Legal and professional fees 12,587 62,174
Provincial council travelling costs 35,529
Wages and social security - 34,316
Accountancy 23,360 15,986
Auditors remuneration 15,000 14,500
50,947 162,505
5. NET (OUTGOING)/INCOMING RESOURCES
This is stated after charging:
31/12/2020 05/04/2020
£ £
Auditor’s remuneration
- statutory audit 15,000 14,500
- other 23,360 11,570
Depreciation and amortisation:
Tangible fixed assets, owner 142,399 200,549

23

THE CONGREGATION OF THE MOST HOLY REDEEMER

NOTES TO THE FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 31 DECEMBER 2020

6. EMPLOYEES

Staff costs during the period were as follows:
Wages and salaries
Social security costs

Pension costs		 31/12/2020
£
220,071
13,206
5,599
238,876		 05/04/2020
£
334,107
23,953
8,434
366,494

The average number of employees during the period was 28 (year to 5 April 2020: 30) all of whom were engaged in the principal activity.

No employee earned £60,000 per annum or more in the current or preceding accounting period.

The Trustees are considered to be the only key management personnel and are not remunerated. The finance director is engaged on a self-employed basis.

7. PAYMENTS TO TRUSTEES

No Trustee or person with a family or business connection with a Trustee, received remuneration in the year, directly or indirectly, from either the Charity or an institution or company related to the Charity.

8. TANGIBLE FIXED ASSETS

COST:
At 6 April 2020
Additions
At 31 December 2020

DEPRECIATION:
At 6 April 2020
Charge for year
At 31 December 2020
NET BOOK VALUE:
At 31 December 2020
At 5 April 2020		 Land &
Buildings
Improvements
to Property
£
£
8,448,124
465,754
-
484,032
8,448,124
949,786
1,675,886
425,641
110,491
13,192
1,786,377
438,833
6,661,747
510,953
6,772,238
40,113		 Household
Motor
Vehicles
£
£
389,172
179,607
559
-
389,731
179,607
306,868
129,518
9,319
9,397
316,187
138,915
73,544
40,692

82,304
50,089
 Totals
£
9,482,657
484,591
9,962,748
2,537,913
142,399
2,680,312
7,286,936
6,944,744


24

THE CONGREGATION OF THE MOST HOLY REDEEMER

NOTES TO THE FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 31 DECEMBER 2020

9. FIXED ASSET INVESTMENTS

MARKET VALUATION
Unrestricted
£
At 6 April 2020
6,225,301
Additions
60,742
Disposals
(20,741)
Increase in valuation
733,304
At 31 December 2020
6,998,606
At 5 April 2020
6,225,301
Fixed asset investments comprise:
Investments listed on recognised stock exchange
3,498,606
Investment properties
3,500,000
6,998,606		 Restricted
£
1,309,816
31,146
(8,992)
376,873

1,708,843
1,309,816
1,708,843
-
1,708,843		 Total
£
7,535,117
91,888
(29,733)
1,110,177
8,707,449
7,535,117
5,207,449
3,500,000
8,707,449

The investment properties were originally valued based on the open market sale value of comparable properties. These values have been reviewed by the Trustees at the period end based on current market conditions and are considered reasonable.

10. DEBTORS

Amounts falling due within one year:
Other debtors
Prepayments & accrued income
. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Trade creditors
Accruals and deferred income
. CREDITORS: AMOUNTS FALLING DUE AFTER ONE YEAR
Accruals and deferred income		 31/12/2020
£
-
-
-
31/12/2020
£
-
471,758
471,758
31/12/2020
£
-		 05/04/2020
£
-
-
-
05/04/2020
£
14,521
144,242
158,763
05/04/2020
£
-

11. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

12. CREDITORS: AMOUNTS FALLING DUE AFTER ONE YEAR

25

THE CONGREGATION OF THE MOST HOLY REDEEMER

NOTES TO THE FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 31 DECEMBER 2020

13. RELATED PARTY DISCLOSURES

The Charity is related to Redemptorist Publications (a Charity limited by guarantee) and Ace of Clubs (Clapham) Limited (a Charity limited by guarantee) by virtue of common Trustees. Day to day activities of Redemptorist Publications and Ace of Clubs are both controlled by a Committee which includes management and lay people.

During the period the Charity received donations amounting to £92,567 (2020: £149,351) from Redemptorist Publications.

During the period the Charity received rental income of £2,416 per month from Ace of Clubs (Clapham) Limited for the use of part of its Clapham property.

14. MOVEMENTS IN FUNDS

Restricted funds:
Ace of Clubs
Douglas Fund
Zimbabwe Fund
Redemptoristine Sisters
Father Burns Funds
St Mary’s Restoration Fund
Unrestricted funds:
Designated sick and retired fund
Designated property fund
General funds
Total unrestricted funds
Total funds		 At
05/04/2020
Incoming
Resources
£
£
83,448
32,991
1,317,318
75,460
713,918
38,573
175,262
-
34,000
-
2,424
763
2,326,370
147,787
429,383
16,867
10,272,238
-
4,436,003
667,988
15,137,624
684,855
17,463,994
832,642		 Outgoing
Resources
Revaluations
Losses &
Transfers
£
£
(81,282)
-
(68,777)
270,985
(79,754)
114,968
(1,000)
-
-
-
(2,225)
-
(233,038)
385,953
(18,190)
140,243
(110,491)
-
(800,062)
583,981
(928,743)
724,224
(1,161,781)
1,110,177		 At
31/12/2020
£
35,157
1,594,986
787,705
174,262
34,000
962
2,627,072
568,303
10,161,747
4,887,910
15,617,960
18,245,032

26

THE CONGREGATION OF THE MOST HOLY REDEEMER

NOTES TO THE FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 31 DECEMBER 2020

Purposes of restricted funds Douglas Fund These funds are specifically allocated for the training of priests and brothers and the continuing education of priests and brothers. Zimbabwe Fund These funds are held in the UK specifically for use in Zimbabwe, the Trustees having established two communities on the outskirts of Harare in 1990. At that time all finance was handled locally and any fundraising in the UK was sent direct via the Congregation’s accounts. When the political difficulties developed into a serious situation, it was decided to retain the majority of surplus funds in the UK and only transfer to Zimbabwe when required or to make payments to suppliers outside of Zimbabwe when the supplies have been received. Ace of Clubs The Trustees of the London province has transferred responsibility for the management and administration of the Charity shops from the Ace of Clubs to St Mary’s Clapham. All net proceeds from the Charity shops is restricted for the benefit of the Ace of Clubs. St Mary’s Restoration Fund These funds relate to a legal undertaking provided to Perth & Kinross Council from the sale of land at St Mary’s Kinnoull. These funds can only be used on future restoration of St Mary’s Kinnoull. Redemptoristine Sisters These funds are being held as Custodian for the Redemptoristine Sisters to be used only on instructions to meet future obligations of the Redemptoristines. Father Burns Funds These funds represent inheritance from Father Burns that has been paid into the Congregation to be held until its use has been agreed.

Purposes of designated fund Property fund The property fund has been set up to represent the reserves attributable to Charitable land & buildings including investment properties. Previous years’ values in the accounts were established some years ago and were based on insurance values at that time, as the historical cost values were impossible to arrive at, as the land/buildings had been acquired many decades ago. It is only when the land/buildings are sold or transferred that the proceeds of the transaction, if any, are transferred to the Charity's General Fund of unrestricted assets. Sick and retired fund There is no pension provision for the members of the Congregation. The Trustees have paid voluntary National Insurance contributions since the early 1990s for qualifying confreres but the state pension payable to current confreres over the age of 65 is significantly less than the basic state pension.

The Trustees have established a fund specifically designated to assist in the care of the sick and retired confreres. Initial funding in this first year of the designated fund has been provided by specific donations from Redemptorist Publications and Erdington House.

27

THE CONGREGATION OF THE MOST HOLY REDEEMER

NOTES TO THE FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 31 DECEMBER 2020

15. ANALYSIS OF NET ASSETS BETWEEN FUNDS

Unrestricted
general
funds

£

Tangible fixed assets
625,189
Investments
2,706,353
Current assets
2,017,070
Current liabilities
(460,702)
Net assets at 31 December 2020
4,887,910		 Designated
funds
Restricted
funds
£
£
6,661,747
-
4,292,255
1,708,841
(223,952)
929,287
-
(11,056)
10,730,050
2,627,072		 Total
funds
£
7,286,936
8,707,449
2,722,405
(471,758)
18,245,032

16. CAPITAL COMMITMENTS

Amounts contracted for but not provided in the financial
statements:
Improvements to tangible fixed assets		 31/12/2020
£
2,078,405		 05/04/2020
£
-

17. CONTINGENT LIABILITIES

Historic Scotland has granted the Charity 40% of the costs of the external repair to St Mary’s, Kinnoull. As part of the agreement the Charity is bound by certain conditions that it must comply with to avoid the grant becoming repayable. This required the Trustees to sign a security giving Historic Scotland a charge over the property at St Mary’s Kinnoull should the Charity default on any of these conditions. The conditions attached to the grant will remain in place for a fifteen year period until 2021.

As detailed in the Trustees Report there is one ongoing serious incident being dealt with by the Charity’s legal advisors. The incident is being investigated and has not yet reached a conclusion. No legal proceedings have been commenced. The potential claim is ongoing but the outcome remains uncertain and therefore at this stage it is impracticable to make an estimate of its financial affect. With regard to the second serious incident, the Charity Commission contacted the Trustees on 26 January 2022 to confirm that they are assured that the Trustees are dealing with the matter appropriately and responsibly. Trustees are unable to confirm at this stage whether any claims may arise from this incident and therefore this matter is being kept under review.

18. EVENTS AFTER THE REPORTING DATE

The COVID-19 pandemic has continued to affect the charity throughout 2021. Measures taken by the government to contain the virus have again affected economic activity in various ways, with course income again being significantly impacted, and other income streams also being affected by restrictions. The charity has taken advantage of government support where possible.

We will continue to follow the various government policies and advice and, in parallel, we will do our utmost to continue our operations in the best and safest way possible without jeopardising the health of our people.

28

THE CONGREGATION OF THE MOST HOLY REDEEMER

INCOME AND EXPENDITURE ACCOUNT

FOR THE PERIOD ENDED 31 DECEMBER 2020

Income:
Apostolic work
Stole fees
Donations received
Resale
Other receipts
Mass accounts
Pensions
Legacies
Other income:
Rents receivable
Bank interest received
Investment income
Furlough grants received
Gain on disposal of property
Expenditure:
Wages
Social security
Administration expenses
Motor and travel expenses
Food and drink expenses
Restoration costs
Repairs & renewals
Sundry expenses
Audit & Accounting costs
Legal and professional fees
Donations paid
Community expenses
Utilities
Clapham shop rent
Medical and charities
Insurance
Other education and FSC fees
Contribution to Rome
Formation costs
Resale expenditure
Finance costs:
Bank charges and interest
Carried forward		 31/12/2020 05/04/2020
£
188,729
17,334
216,150
3,800
10,169
17,975
105,198
60,000
62,092
1,479
91,889
57,827
225,670
13,206
3,760
21,984
77,166
-
29,937
19,807
38,360
42,320
100,650
83,858
65,546
33,003
6,800
36,688
4,461
150,327
62,650
-		 £
619,355
213,827
-
832,642
(1,016,193)
(183,551)
(3,189)
(186,740)		 £
718,546
55,520
216,733
165,856
26,899
44,698
141,958
22,176
138,243
8,499
128,610
-
342,541
23,953
12,546
96,318
137,032
-
90,547
17,434
30,486
68,499
126,515
347,190
106,859
55,343
18,136
46,700
18,349
-
28,802
-		 £
1,392,386
275,352
83,572
1,751,310
(1,567,250)
184,060
(3,627)
180,433

29

THE CONGREGATION OF THE MOST HOLY REDEEMER

INCOME AND EXPENDITURE ACCOUNT

FOR THE PERIOD ENDED 31 DECEMBER 2020

This page does not form part
Brought forward
Depreciation:
Household
Motor vehicles
Improvements to property
Buildings
Profit/(loss) on disposal of fixed
assets:
Motor vehicles
Buildings
Household
Land

Other losses:
Revaluation deficit in the year
Increase/(Decrease) in market value
of investments
NET SURPLUS/(DEFICIT) FOR THE
YEAR:		 This page does not form part
Brought forward
Depreciation:
Household
Motor vehicles
Improvements to property
Buildings
Profit/(loss) on disposal of fixed
assets:
Motor vehicles
Buildings
Household
Land

Other losses:
Revaluation deficit in the year
Increase/(Decrease) in market value
of investments
NET SURPLUS/(DEFICIT) FOR THE
YEAR:		 This page does not form part
Brought forward
Depreciation:
Household
Motor vehicles
Improvements to property
Buildings
Profit/(loss) on disposal of fixed
assets:
Motor vehicles
Buildings
Household
Land

Other losses:
Revaluation deficit in the year
Increase/(Decrease) in market value
of investments
NET SURPLUS/(DEFICIT) FOR THE
YEAR:		 of the statutory financial statements
31/12/2020
05/04/2020
£
£
£
£
(186,740)
180,433
9,319
14,380
9,397
21,106
13,192
17,742
110,491
147,321
(142,399)
(200,549)
(329,139)
(20,116)
-
-
-
-
-
-
-
-
-
-
(329,139)
(20,116)
-
-
1,110,177
(547,742)
781,038
(567,858)		 of the statutory financial statements
31/12/2020
05/04/2020
£
£
£
£
(186,740)
180,433
9,319
14,380
9,397
21,106
13,192
17,742
110,491
147,321
(142,399)
(200,549)
(329,139)
(20,116)
-
-
-
-
-
-
-
-
-
-
(329,139)
(20,116)
-
-
1,110,177
(547,742)
781,038
(567,858)		 of the statutory financial statements
31/12/2020
05/04/2020
£
£
£
£
(186,740)
180,433
9,319
14,380
9,397
21,106
13,192
17,742
110,491
147,321
(142,399)
(200,549)
(329,139)
(20,116)
-
-
-
-
-
-
-
-
-
-
(329,139)
(20,116)
-
-
1,110,177
(547,742)
781,038
(567,858)
£
9,319
9,397
13,192
110,491
-
-
-
-		 £
180,433
(200,549)
(20,116)
-
(20,116)
-
(547,742)
(567,858)

This page does not form part of the statutory financial statements

30