**Charity Registration No. 264529**
**ANGLO-IRISH PROVINCE OF THE SISTERS OF ST MARIE MADELEINE POSTEL**
**ANNUAL REPORT AND FINANCIAL STATEMENTS**
**FOR THE YEAR ENDED 31 DECEMBER 2020**
**ANGLO-IRISH PROVINCE OF THE SISTERS OF ST MARIE MADELEINE POSTEL**
## **LEGAL AND ADMINISTRATIVE INFORMATION**
|**Trustees**|M Minogue||
|---|---|---|
||H Holdworth||
||M Banning||
||M Keegan||
|**Bursar**|Margaret Minogue||
|**Regional Superior**|Margaret Minogue||
|**Charity number**|264529||
|**Principal address**|Ard Muire Convent||
||New Line Road||
||Roscrea||
||Co. Tipperary||
|**Governing Instrument**|Trust Deed dated 14 July 1972, and updated in August 2011||
|**Auditor**|Kendall Wadley LLP||
||Granta Lodge||
||71 Graham Road||
||Malvern||
||Worcestershire||
||WR14 2JS||
|**Bankers**|Allied Irish Bank (UK) Plc|Lloyds TSB Private Banking Ltd|
||8th Floor|Mayfair|
||61 Temple Row|50 Grosvenor Street|
||Birmingham|London|
||B2 5LT|W1K 3LF|
|**Solicitors**|Stone King LLP||
||13 Queen Square||
||Bath||
||BA1 2HJ||
## **ANGLO-IRISH PROVINCE OF THE SISTERS OF ST MARIE MADELEINE POSTEL**
## **CONTENTS**
||**Page**|
|---|---|
|Trustees' report|1 - 3|
|Statement of trustees' responsibilities|4|
|Independent auditor's report|5 - 7|
|Statement of financial activities|8|
|Balance sheet|9|
|Statement of cash flows|10|
|Notes to the financial statements|11 - 24|
**ANGLO-IRISH PROVINCE OF THE SISTERS OF ST MARIE MADELEINE POSTEL**
## **TRUSTEES' REPORT**
## _**FOR THE YEAR ENDED 31 DECEMBER 2020**_
The trustees present their report and accounts 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 Province's Trust Deed dated 14 July 1972 updated in August 2011, the Charities Act 2011 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)".
## **Objectives and activities**
The Trust Deed states its principal objectives to be advancing, supporting or maintaining of all or any of the charitable work for the time being or from time to time carried on in the United Kingdom in such a manner as the Superior shall direct or for such other charitable purposes or purposes connected with the advancement of the Roman Catholic religion as the Province or a majority in point of number of the Province with the consent of the Superior shall see fit.
## **Investment Powers**
Investment powers are governed by the Trust Deed, which permits funds to be invested within the prevailing charities legislation. Assets are held to generate investment income for charitable expenditure, and are held within the trustees' powers.
## **Public Benefit**
The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the Province should undertake.
All the Province activities are focused on the advancement of the Roman Catholic religion. These activities are open to all the community and as such the activities of the Charity deliver public benefit.
Inspired by our faith in the Word of God, we, like Jesus, will look upon everyone with respect and compassion. By example and support, we aim to further the Kingdom in the name of the Father, Son and Holy Spirit.
The Province has the responsibility to nurture its members both spiritually, emotionally and physiologically.
The elected Regional Superior as the representative of the Superior General has a responsibility to maintain a vibrant life within the Province.
## **Achievements and performance**
## **Review of Developments During the Year**
Each Community has its own role to spread the Kingdom of God, the Regional Superior and her counsellors play an active part in supporting and encouraging the apostolates of the sisters.
The Regional Superior and her counsellors are responsible for the monitoring of the financial affairs of each Community.
Contributions and donations are made to our sisters working with foreign missions.
A proportion of the income of the Province is allocated towards recognised national and local charities and disaster funds.
Where our foundation schools still function we continue an active role as trustees and on the Board of Governors. Through our experience and spiritual guidance we endeavour to safeguard the catholic ethos of our schools.
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**ANGLO-IRISH PROVINCE OF THE SISTERS OF ST MARIE MADELEINE POSTEL**
## **TRUSTEES' REPORT (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2020**_
## **Financial review**
The Province is comprised of 12 members, the majority of whom are in retirement.
The statement of Financial Activities shows that total incoming resources for the year amounted to £156,87 7 ( 201 9 £ 292,526). Total incoming resources in the prior year includes rental income of £120,000 from St Josephs school which in this current year, has been forgone due to the pandemic.
Total expenditure for the year amounted to £204,75 7 . ( 201 9 £ 272,133) .
Overall , after investment gains of £306,312 (2019 - £738,150) this gave net incoming funds of £258,432 (2019 £758,543 ) .
## **Reserves Policy**
Note 19 to the financial statements shows the Congregation's reserves which have been designated for specific purposes and are separated from those available for day to day requirements.
The general reserve fund represents the unrestricted free reserves arising from past operating results. The trustees are satisfied that the balance of the fund £ 3 ,605,923 is sufficient to enable the Congregation to carry out the objects of the charity. These are constantly under review and will be amended accordingly.
## **Investment Policy and Performance**
Investment powers are governed by the Trust Deed which permits funds to be invested within the prevailing charities legislation. Assets are held to generate investment income for charitable expenditure, and are held within the trustees' powers.
Total investments at the year end, which includes both fixed investments and also short term deposits amounted to £7,037,568 (2019 £6,768,271).
These investments together with the investment property will help generate income to finance the work of the Charity.
## **Risk Management**
The trustees has assessed the major risks to which the Province is exposed, in particular those related to the operations and finance of the charity, and are satisfied that systems are in place to mitigate our exposure to major risks.
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## **ANGLO-IRISH PROVINCE OF THE SISTERS OF ST MARIE MADELEINE POSTEL**
## **TRUSTEES' REPORT (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2020**_
## **Structure, governance and management**
This Anglo Irish Province forms part of an international Congregation known as the Sisters of St Marie Madeleine Postel. The Province is administered by the Regional Superior together with four other trustees. It is governed by a Trust Deed dated 14 July 1972 and updated in August 2011 and is registered with the Charity Commission, Charity Registration Number 264529.
The Province has five trustees, the Regional Superior and four other members of the Congregation of the Sisters of St Marie Madeleine Postel.
The trustees who served during the year and up to the date of signature of the financial statements were: M Minogue
H Holdworth M Minogue (Deceased 20 August 2020) M Banning M Keegan
## **Trustees**
New trustees are elected by the Board of Trustees from members of the Order.
Trustees are nominated by members of the board of trustees and appointed where they have the necessary skills to contribute to the charity's development.
A certificate of incorporation of the trustees as a body corporate was issued on 17 February 1998.
The trustees' r eport was approved by the Board of Trustees.
## **M Minogue**
Trustee Dated: 14 October 2021
- 3 -
## **ANGLO-IRISH PROVINCE OF THE SISTERS OF ST MARIE MADELEINE POSTEL**
## **STATEMENT OF TRUSTEES' RESPONSIBILITIES**
## _**FOR THE YEAR ENDED 31 DECEMBER 2020**_
The trustees are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
The law applicable to charities in England and Wales requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Province and of the incoming resources and application of resources of the Province for that year.
In preparing these financial statements, the trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP;
- make judgements and estimates that are reasonable and prudent;
- state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.
The trustees are responsible for keeping sufficient accounting records that disclose with reasonable accuracy at any time the financial position of the Province and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the Province and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
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## **ANGLO-IRISH PROVINCE OF THE SISTERS OF ST MARIE MADELEINE POSTEL**
## **INDEPENDENT AUDITOR'S REPORT**
## **TO THE TRUSTEES OF ANGLO-IRISH PROVINCE OF THE SISTERS OF ST MARIE MADELEINE POSTEL**
## **Opinion**
We have audited the financial statements of Anglo-Irish province of the Sisters of St Marie Madeleine Postel (the ‘Province’) for the year ended 31 December 2020 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and the 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:
- give a true and fair view of the state of the charity’s affairs as at 31 December 2020 and of its incoming resources and application of resources, for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Charities Act 2011.
## **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 Province 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 Province’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 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 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.
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## **ANGLO-IRISH PROVINCE OF THE SISTERS OF ST MARIE MADELEINE POSTEL**
## **INDEPENDENT AUDITOR'S REPORT (CONTINUED)**
## **TO THE TRUSTEES OF ANGLO-IRISH PROVINCE OF THE SISTERS OF ST MARIE MADELEINE POSTEL**
## **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 require us to report to you if, in our opinion:
- the information given in the financial statements is inconsistent in any material respect with the trustees' r eport; or
- sufficient accounting records have not been kept; or
- the financial statements are not in agreement with the accounting records; or
- we have not received all the information and explanations we require for our audit.
## **Responsibilities of trustees**
As explained more fully in the s tatement of trustees' r esponsibilities, 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 Province’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 cease operations, or have no realistic alternative but to do so.
## **Auditor's responsibilities for the audit of the financial statements**
We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
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 .
## **Extent to which the audit was considered capable of detecting irregularities including fraud**
- an understanding of the risk assessment process (including the assessment of the risk of fraud) adopted by the Trustees is obtained and their attitude to risk ascertained
- an assessment of the susceptibility to material mis-statement of the financial statements as a result of management over-ride or fraud is made
- it is ensured that the engagement team have, collectively, the appropriate competence, capabilities and skills to be involved in the assignment, are fully briefed and understand the risks specific to the c harity
## **Audit responses to risks identified**
- processes to test the outcomes of our assessment include, a review of Trustee m inutes, analytical review, the relevance and accuracy of significant accounting estimates, substantive testing of significant transactions, work to identify unusual or unexpected accounting entries , information disclosed in the financial statements is traced to supporting documentation. In all instances it is acknowledged that material mis-statements that arise from fraud may involve deliberate concealment or collusion and are, therefore, by their very nature harder to detect than those arising from error.
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## **ANGLO-IRISH PROVINCE OF THE SISTERS OF ST MARIE MADELEINE POSTEL**
## **INDEPENDENT AUDITOR'S REPORT (CONTINUED)**
## **TO THE TRUSTEES OF ANGLO-IRISH PROVINCE OF THE SISTERS OF ST MARIE MADELEINE POSTEL**
- an understanding of the legal and regulatory framework as applicable to the c harity is obtained together with knowledge of the procedures put in place by the Trustees in order to comply with the same
- it is established if there have been any instances of non-compliance with applicable laws and regulations, should there be such breaches, a full understanding, including gathering of relevant documentation appertaining to the event would be obtained and assessed
It should be noted that Auditing standards limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the Trustees, being the sole management body, and the inspection of regulatory and legal correspondence, if any.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: http s :// www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
## **Other matter s**
Your attention is drawn to the fact that the charity has prepared financial statements in accordance with "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (as amended) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has now been withdrawn.
This has been done in order for the financial statements to provide a true and fair view in accordance with current Generally Accepted Accounting Practice.
## **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. 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 auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.
## **Elizabeth Needham ACA CTA (VAT) (Senior Statutory Auditor) for and on behalf of Kendall Wadley LLP**
## **Chartered Accountants Statutory Auditor**
14 October 2021 Granta Lodge 71 Graham Road Malvern Worcestershire WR14 2JS
Kendall Wadley LLP is eligible for appointment as auditor of the Province by virtue of its eligibility for appointment as auditor of a company under of section 1212 of the Companies Act 2006.
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**ANGLO-IRISH PROVINCE OF THE SISTERS OF ST MARIE MADELEINE POSTEL**
## **STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT** _**FOR THE YEAR ENDED 31 DECEMBER 2020**_
|**Unrestricted Unrestricted**
**funds**
**funds**
**general d esignated**
**2020**
**2020**
**Notes**
**£**
**£**
**Income and endowments from:**
Charitable activities
**3**
29,833
-
Investments
**4**
44,053
81,984
Other income
**5**
795
212
**Total income**
74,681
82,196
**Expenditure on:**
Raising funds
**6**
1,202
2,601
Charitable activities
**7**
30,099
170,855
**Total resources**
**expended**
31,301
173,456
Net gains/(losses) on
investments
**12**
112,978
193,334
**Net movement in funds**
156,358
102,074
Fund balances at 1
January 2020
3,449,565
6,249,746
**Fund balances at 31**
**December 2020**
3,605,923
6,351,820|**Total**Unrestricted Unrestricted
funds
funds
general
d esignated
**2020**
2019
2019
**£**
**£**
**£**
29,833
31,752
-
126,037
166,876
93,898
1,007
-
-
156,877
198,628
93,898
3,803
15,456
35,224
200,954
50,687
170,766
204,757
66,143
205,990
306,312
248,238
489,912
258,432
380,723
377,820
9,699,311
3,068,842
5,871,926
9,957,743
3,449,565
6,249,746|Total
2019
**£**
31,752
260,774
-|
|---|---|---|
|Charitable activities
**3**
Investments
**4**
Other income
**5**
**Total income**
**Expenditure on:**
Raising funds
**6**
Charitable activities
**7**
**Total resources**
**expended**
Net gains/(losses) on
investments
**12**
**Net movement in funds**
Fund balances at 1
January 2020
**Fund balances at 31**
**December 2020**|||
|||292,526|
|||50,680|
|||221,453|
|||272,133|
|||738,150|
|||758,543
8,940,768|
|||9,699,311|
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derives from continuing activities.
- 8 -
## **ANGLO-IRISH PROVINCE OF THE SISTERS OF ST MARIE MADELEINE POSTEL**
## **BALANCE SHEET**
## _**AS AT 31 DECEMBER 2020**_
|**Notes**
**Fixed assets**
Tangible assets
**13**
Investment properties
**14**
Investments
**15**
**Current assets**
Investments
**17**
Cash at bank and in hand
**Creditors: amounts falling due within**
**one year**
**18**
Net current assets
**Total assets less current liabilities**
**Income funds**
Unrestricted funds
Designated funds
**19**
General unrestricted funds|**2020**
**£**
**£**
-
997,036
6,304,992
7,302,028
732,576
1,944,631
2,677,207
(21,492)
2,655,715
9,957,743
6,351,820
3,605,923
9,957,743
9,957,743|**2019**
**£**
**£**
1,750
997,036
5,973,019
6,971,805
795,252
1,948,610
2,743,862
(16,356)
2,727,506
9,699,311
6,249,746
3,449,565
9,699,311
9,699,311|
|---|---|---|
The financial statements were approved by the Trustees on 14 October 2021
M Minogue **Trustee**
- 9 -
## **ANGLO-IRISH PROVINCE OF THE SISTERS OF ST MARIE MADELEINE POSTEL**
## **STATEMENT OF CASH FLOWS** _**FOR THE YEAR ENDED 31 DECEMBER 2020**_
|**Notes**
**Cash flows from operating activities**
Cash absorbed by operations
**21**
**Investing activities**
Purchase of investments
Proceeds on disposal of investments
Interest received
**Net cash generated from investing**
**activities**
**Net cash used in financing activities**
**Net (decrease)/increase in cash and cash**
**equivalents**
Cash and cash equivalents at beginning of year
**Cash and cash equivalents at end of year**
**Relating to:**
Cash at bank and in hand
Short term deposits included in current
asset investments|**2020**
**£**
**£**
(167,030)
(997,327)
971,665
126,037
100,375
-
(66,655)
2,743,862
2,677,207
1,944,631
732,576|**2019**
**£**
**£**
(197,839)
(647,579)
655,177
260,774
268,372
-
70,533
2,673,329
2,743,862
1,948,610
795,252|
|---|---|---|
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**ANGLO-IRISH PROVINCE OF THE SISTERS OF ST MARIE MADELEINE POSTEL**
## **NOTES TO THE FINANCIAL STATEMENTS** _**FOR THE YEAR ENDED 31 DECEMBER 2020**_
## **1 Accounting policies**
## **Company information**
Anglo-Irish province of the Sisters of St Marie Madeleine Postel is a charity registered in England and Wales.
The principal address is Ard Muire Convent, New Line Road, Rosecrea, Co. Tipperary.
## **1.1 Accounting convention**
The financial statements have been prepared in accordance with the Province's governing document, the Charities Act 2011 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)". The Province is a Public Benefit Entity as defined by FRS 102.
The financial statements have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a true and fair view. This departure has involved following the Statement of Recommended Practice for charities applying FRS 102 rather than the version of the Statement of Recommended Practice which is referred to in the Regulations but which has since been withdrawn.
The financial statements are prepared in sterling , which is the functional currency of the Province. Monetary a mounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
## **1.2 Going concern**
At the time of approving the financial statements, the trustees have a reasonable expectation that the Province 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.
## **1.3 Charitable funds**
Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives unless the funds have been designated for other purposes.
Designated funds comprise funds which have been set aside at the discretion of the trustees for specific purposes. The purposes and uses of the designated funds are set out in the notes to the financial statements.
## **1.4 Incoming resources**
Income is recognised when the Province is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.
Cash donations are recognised on receipt. Other donations are recognised once the Province has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
## Legacies and Donations
Legacies and donations are recognised when received or when the Province becomes legally entitled to them. Receipts of property, investments or other gifts in kind are included at market value.
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**ANGLO-IRISH PROVINCE OF THE SISTERS OF ST MARIE MADELEINE POSTEL**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2020**_
## **1 Accounting policies**
**(Continued)**
## R ent from property
Rental income in respect of St Joseph's College is included in the Statement of Financial Activities on a straight line basis over the lease term.
## Tax suffered on Investment Income
Tax reclaimable from H M Revenue & Customs is included in these accounts for the period to which it relates.
## **1.5 Resources expended**
Expenditure
Direct charitable expenditure consists of all expenditure directly relating to the objects of the Province. Value added tax is included within the category of expenditure to which it relates.
## Governance Costs
Governance costs include direct and related support relating to the governance infrastructure allowing the charity to generate information required for public accountability.
## **1.6 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 recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Fixtures, fittings & equipment 12% to 25% straight line Motor vehicles 25% straight line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in net income/(expenditure) for the year.
## **1.7 Investment properties**
The investment property relates to the preparatory and senior college in Reading which are rented to St. Joseph's College. As such they are carried at cost, classed as a social investment and are not depreciated. The rental income to the Province is set at less than full market value to reflect the status of the social asset.
## **1.8 Impairment of fixed assets**
At each reporting end date, the Province reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any ) .
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**ANGLO-IRISH PROVINCE OF THE SISTERS OF ST MARIE MADELEINE POSTEL**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2020**_
## **1 Accounting policies**
**(Continued)**
Recoverable amount is the higher of fair value less costs to sell and value in use .
If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. An impairment loss is recognised immediately in income and expenditure for the year , unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised immediately, unless the relevant asset is carried in at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
## **1.9 Cash and cash equivalents**
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less .
## **1.10 Financial instruments**
The Province has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the Province's balance sheet when the Province becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
## _**Basic financial assets**_
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method . Financial assets classified as receivable within one year are not amortised.
## _**Basic financial liabilities**_
Basic financial liabilities, including creditors are initially recognised at transaction price . Financial liabilities classified as payable within one year are not amortised.
## _**Derecognition of financial liabilities**_
Financial liabilities are derecognised when the Province’s contractual obligations expire or are discharged or cancelled.
## **1.11 Foreign exchange**
T ransactions in foreign currencies are recorded at the rate ruling at the date of the transactions. Balances denominated in a foreign currency are translated into sterling at the rate ruling on the balance sheet date.
- 13 -
**ANGLO-IRISH PROVINCE OF THE SISTERS OF ST MARIE MADELEINE POSTEL**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2020**_
## **2 Critical accounting estimates and judgements**
In the application of the Province’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 affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
## **3 Charitable activities**
||**Unrestricted**|Unrestricted|
|---|---|---|
||**funds**|funds|
||**general**|general|
||**2020**|2019|
||**£**|£|
|Sisters' pension|29,833|31,752|
## **4 Investments**
|**Unrestricted Unrestricted**
**Total**Unrestricted Unrestricted
**funds**
**funds**
funds
funds
**general d esignated**
general
d esignated
**2020**
**2020**
**2020**
2019
2019
**£**
**£**
**£**
£
£
Rental income
-
-
-
120,000
-
Income from unlisted
investments
42,177
81,089
123,266
44,223
92,483
Interest receivable
1,876
895
2,771
2,653
1,415
44,053
81,984
126,037
166,876
93,898
**Other income**
**Unrestricted Unrestricted**
**Total**
**funds**
**funds**
**general d esignated**
**2020**
**2020**
**2020**
**£**
**£**
**£**
Other income
795
212
1,007|Total
2019
£
120,000
136,706
4,068
260,774
Total
2019
£
-|
|---|---|
## **5 Other income**
- 14 -
## **ANGLO-IRISH PROVINCE OF THE SISTERS OF ST MARIE MADELEINE POSTEL**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2020**_
## **6 Raising funds**
|**Unrestricted Unrestricted**
**funds**
**funds**
**general d esignated**
**2020**
**2020**
**£**
**£**
Investment management
1,202
2,601
1,202
2,601|**Total**Unrestricted Unrestricted
funds
funds
general
d esignated
**2020**
2019
2019
**£**
£
£
3,803
15,456
35,224
3,803
15,456
35,224|Total
2019
£
50,680
50,680|
|---|---|---|
- 15 -
## **ANGLO-IRISH PROVINCE OF THE SISTERS OF ST MARIE MADELEINE POSTEL**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2020**_
|**7 Charitable activities**
**Direct costs**
**Premises**
**and**
**equipment**
**Payments**
**to Sister**
**Houses,**
**missions**
**and**
**donations**
**2020**
**2020**
**2020**
**£**
**£**
**£**
**Staff costs**
8,134
-
-
Depreciation and
impairment
1,750
-
-
Sisters' expenses and
allowances
1,506
-
-
Provisions and laundry
903
-
-
Travelling and motor
expenses
1,393
-
-
Heat and light
697
-
-
Telephone
622
-
-
Stationery and postage
197
-
-
Repairs and renewals
23
-
-
Gardening costs
-
967
-
Other charitable
expenditure
-
2,491
1,927
15,225
3,458
1,927
Share of governance costs
(see note 8)
17,018
-
-
32,243
3,458
1,927
**Analysis by fund**
Unrestricted funds -
general
25,749
3,458
892
Unrestricted funds -
designated
6,494
-
1,035
32,243
3,458
1,927|**Other**
**2020**
**£**
-
-
-
-
-
-
-
-
-
-
163,326
163,326
-
163,326
-
163,326
163,326|**Total**
**2020**
**£**
8,134
1,750
1,506
903
1,393
697
622
197
23
967
167,744
183,936
17,018
200,954
30,099
170,855
200,954|**Total**
**2019**
**£**
7,626
1,750
2,410
2,648
1,050
706
909
185
417
6
186,682
204,389
17,064
221,453
50,687
170,766
221,453|
|---|---|---|---|
- 16 -
**ANGLO-IRISH PROVINCE OF THE SISTERS OF ST MARIE MADELEINE POSTEL**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2020**_
|**7 Charitable activities**
**For the year ended 31 December 2019**
**Direct costs**
**Premises**
**and**
**equipment**
**Payments**
**to Sister**
**Houses,**
**missions**
**and**
**donations**
**£**
**£**
**£**
Staff costs
7,626
-
-
Depreciation and impairment
1,750
-
-
Sisters' expenses and allowances
2,410
-
-
Provisions and laundry
2,648
-
-
Travelling and motor expenses
1,050
-
-
Heat and light
706
-
-
Telephone
909
-
-
Stationery and postage
185
-
-
Repairs and renewals
417
-
-
Gardening costs
-
6
-
Other charitable expenditure
-
1,344
2,526
17,701
1,350
2,526
Share of governance costs (see note 8)
17,064
-
-
34,765
1,350
2,526
**Analysis by fund**
Unrestricted funds - general
28,040
1,350
1,280
Unrestricted funds - designated
6,725
-
1,246
34,765
1,350
2,526|**(Continued)**
**Other**
**Total**
**2019**
**£**
**£**
-
7,626
-
1,750
-
2,410
-
2,648
-
1,050
-
706
-
909
-
185
-
417
-
6
182,812
186,682
182,812
204,389
-
17,064
182,812
221,453
20,017
50,687
162,795
170,766
182,812
221,453|
|---|---|
- 17 -
**ANGLO-IRISH PROVINCE OF THE SISTERS OF ST MARIE MADELEINE POSTEL**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2020**_
|**8**
**Support costs**
**Support**
**costs**
**Governance**
**costs**
**£**
**£**
Audit fees
-
3,078
Accountancy
-
13,626
Other professional fees
-
94
Bank charges and
interest
-
220
-
17,018
Analysed between
Charitable activities
-
17,018|**2020**
Support
costs
Governance
costs
**£**
£
£
3,078
-
3,078
13,626
-
13,692
94
-
30
220
-
264
17,018
-
17,064
17,018
-
17,064|2019
£
3,078
13,692
30
264
17,064
17,064|
|---|---|---|
## **9 Auditor's remuneration**
|The analysis of auditor's remuneration is as follows:
**Fees payable to the company's auditor and associates:**
Audit of the company's annual accounts
**Non-audit services**
All other non-audit services
**Total non-audit fees**|**2020**
**£**
3,078
5,400
5,400|**2019**
**£**
3,078
5,400
5,400|
|---|---|---|
## **10 Trustees**
None of the trustees (or any persons connected with them) received any remuneration during the year.
The trustees of the Province are also members of the congregation and as such have taken vows of poverty under which they have renounced all personal rights to income and capital. The charity provides for the essential needs of all members of the congregation within the Province. The living costs of the trustees are therefore borne by the Province.
- 18 -
**ANGLO-IRISH PROVINCE OF THE SISTERS OF ST MARIE MADELEINE POSTEL**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2020**_
## **11 Employees**
## **Number of employees**
The average monthly number of employees during the year was:
|**Employment costs**
Wages and salaries|**2020**
**Number**
1
**2020**
**£**
8,134|**2019**
**Number**
1
**2019**
**£**
7,626|
|---|---|---|
No employee received total employee benefits (excluding employer pension costs) of more than £60,000.
## **12 Net gains on investments**
|**Unrestricted Unrestricted**
**funds**
**funds**
**general d esignated**
**2020**
**2020**
**£**
**£**
Revaluation of
investments
112,521
173,029
Gain/(loss) on sale of
investments
457
20,305
112,978
193,334|**Total**Unrestricted Unrestricted
funds
funds
general
d esignated
**2020**
2019
2019
**£**
£
£
285,550
217,956
415,874
20,762
30,282
74,038
306,312
248,238
489,912|Total
2019
£
633,830
104,320
738,150|
|---|---|---|
- 19 -
**ANGLO-IRISH PROVINCE OF THE SISTERS OF ST MARIE MADELEINE POSTEL**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2020**_
|**13**
**Tangible fixed assets**
**Fixtures,**
**fittings &**
**equipment**
**Motor vehicles**
**£**
**£**
**Cost**
At 1 January 2020
19,207
7,000
At 31 December 2020
19,207
7,000
**Depreciation and impairment**
At 1 January 2020
19,207
5,250
Depreciation charged in the year
-
1,750
At 31 December 2020
19,207
7,000
**Carrying amount**
At 31 December 2020
-
-
At 31 December 2019
-
1,750
**14**
**Investment property**
**Fair value**
At 1 January 2020 and 31 December 2020|**Total**
**£**
26,207
26,207
24,457
1,750
26,207
-
1,750
**2020**
**£**
997,036|
|---|---|
The investment property represents freehold land and buildings situated in Upper Redlands Road, Reading, which are rented to St Joseph's College. As such they are classed as a social investment, the full market value is discounted appropriately.
- 20 -
**ANGLO-IRISH PROVINCE OF THE SISTERS OF ST MARIE MADELEINE POSTEL**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2020**_
|**15**
**Fixed asset investments**
Listed investments
**Movements in fixed asset investments**
**Cost or valuation**
At 31 December 2020
Additions
Valuation changes
Gain on disposal
Disposals
At 31 December 2020
**Carrying amount**
At 31 December 2020
At 31 December 2019
**16**
**Financial instruments**
**Carrying amount of financial assets**
Equity instruments measured at cost less impairment
**17**
**Current asset investments**
Cash deposits
**18**
**Creditors: amounts falling due within one year**
Other taxation and social security
Accruals and deferred income|**2020**
**2019**
**£**
**£**
6,304,992
5,973,019
**Listed**
**Investments**
**£**
5,973,019
997,327
285,550
20,761
(971,665)
6,304,992
6,304,992
5,973,019
**2020**
**2019**
**£**
**£**
6,304,992
5,973,019
**2020**
**2019**
**£**
**£**
732,576
795,252
**2020**
**2019**
**£**
**£**
268
72
21,224
16,284
21,492
16,356|
|---|---|
- 21 -
## **ANGLO-IRISH PROVINCE OF THE SISTERS OF ST MARIE MADELEINE POSTEL**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2020**_
## **19 Designated funds**
The income funds of the charity include the following designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes:
|||**Movement in funds**|**Movement in funds**||**Movement in funds**|**Movement in funds**|**Movement in funds**||
|---|---|---|---|---|---|---|---|---|
||**Balance at**|
**Net incoming**|
**Net outgoing**|**Balance at**|
**Net incoming**|
**Net outgoing**|**Gains/Losses**|**Balance at**|
||**1 January 2019**|
**resources and**|
**resources and**
**1**|**January 2020**|
**resources and**|
**resources and**||**31 December**|
|||**gain**|
**losses**||**gain**|
**losses**||**2020**|
||**£**|
**£**|
**£**|**£**|
**£**|
**£**|**£**|**£**|
|Retired Sisters Funds|2,171,178|
267,841|
(17,933)|
2,421,086|
38,170|
(4,348)|
99,472|2,554,380|
|Nursing Home Care for Sisters|634,657|
91,200|
(143,033)|
582,824|
10,890|
(138,166)|
28,379|483,927|
|Congregational Fund|809,970|
24,720|
(2,531)|
832,159|
3,523|
(401)|
9,181|844,462|
|Foreign and Home Missions|170,087|
16,924|
(1,133)|
185,878|
2,398|
(888)|
6,250|193,638|
|Bursaries|949,173|
179,144|
(38,974)|
1,089,343|
26,653|
(27,419)|
48,588|1,137,165|
|Educational Support Fund|126,732|
2,875|
(562)|
129,045|
404|
(466)|
1,053|130,036|
|Bereaved Children's Help Fund|9,593|
1,106|
(74)|
10,625|
158|
(18)|
411|11,176|
|Tangible Fixed Assets|3,500|
-|
(1,750)|
1,750|
-|
(1,750)|
-|-|
|Investment Properties|997,036|
-|
-|997,036|
-|
-|-|997,036|
||5,871,926|
583,810|
(205,990)|
6,249,746|
82,196|
(173,456)|
193,334|6,351,820|
- 22 -
## **ANGLO-IRISH PROVINCE OF THE SISTERS OF ST MARIE MADELEINE POSTEL**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 31 DECEMBER 2020**_
## **19 Designated funds**
## **(Continued)**
Over many years the various members of the Province have covenanted their earnings to the congregation. Many have retired from their employment and the Province now has a responsibility to them and to those for whom pension funds are not available. As part of this supporting role funds have been made available from the General Fund and are included in these accounts as Retired Sisters Fund and Nursing home Care for Sisters.
In addition to these the trustees have also identified the need for designated funds in respect of the following purposes:-
## **Congregational Fund**
As a Province of the Sisters of St Marie Madeleine Postel there is an obligation to make contributions as required to the General Government of the foresaid.
## **Foreign and Home Missions**
To further the Word of God. Sums are donated to appropriate charities working in these areas.
## **Bursaries**
Financing needy pupils through school.
## **Educational Support Fund**
Training of clerical students, priests and other related religious studies.
## **Bereaved Children's Help Fund**
Helping emotionally affected children and young adults cope with a life-altering significant loss.
## **Tangible Fixed Assets and Investment Properties**
The funds have been created in order to provide for future needs, of which a fund transfer occurs for depreciation.
- 23 -
**ANGLO-IRISH PROVINCE OF THE SISTERS OF ST MARIE MADELEINE POSTEL**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2020**_
|**20**
**Analysis of net assets between funds**
**Unrestricted Designated**
**Total**Unrestricted
**2020**
**2020**
**2020**
2019
**£**
**£**
**£**
£
Fund balances at 31
December 2020 are
represented by:
Tangible assets
-
-
-
-
Investment properties
-
997,036
997,036
-
Investments
950,208
5,354,784
6,304,992
722,059
Current assets/
(liabilities)
2,655,715
-
2,655,715
2,727,506
3,605,923
6,351,820
9,957,743
3,449,565
**21**
**Cash generated from operations**
Surplus for the year
Adjustments for:
Investment income recognised in statement of financial activities
Gain on disposal of investments
Fair value gains and losses on investments
Depreciation and impairment of tangible fixed assets
Movements in working capital:
(Increase)/decrease in debtors
Increase in creditors
**Cash absorbed by operations**|Designated
2019
£
1,750
997,036
5,250,960
-
6,249,746
**2020**
**£**
258,432
(126,037)
(20,762)
(285,550)
1,750
-
5,137
(167,030)|Total
2019
£
1,750
997,036
5,973,019
2,727,506
9,699,311
**2019**
**£**
758,543
(260,774)
(104,320)
(633,830)
1,750
40,350
442
(197,839)|
|---|---|---|
## 22 **Analysis of changes in net funds**
The Province had no debt during the year.
## **23 Auditors Ethical Standards**
The relevant circumstances requiring disclosure in accordance with the requirements of APB Ethical Standard - Provisions Available for Small Entities are that, in common with many charities of our size andnature, we use our auditors to assist with the preparation of the accounts.
- 24 -