OpenCharities

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator. This document is also available as Markdown.

← The Congregation Of The Sisters Of The Sacred Hearts (Picpus)

2024-12-31-accounts

The Congregation of the Sisters of the Sacred Hearts (PICPUS)

Annual Report and Financial Statements

31 December 2024

Charity Registration Number 1133012

Company Registration Number 07003646 (England and Wales)

Contents

Reports
Reference and administrative information 1
Trustees’ report 2
Independent auditor’s report 17
Financial statements
Statement of financial activities 21
Balance sheet 22
Statement of cash flows 23
Principal accounting policies 24
Notes to the financial statements 28

The Congregation of the Sisters of the Sacred Hearts (PICPUS)

Reference and administrative information

Trustees Sister Aileen Kennedy
Sister Joan Geoghegan
Sister Mary McCloskey
Superior Delegate Sister Mary McCloskey
Delegation bursar Sister Aileen Kennedy
Registered office 24 Longdown Lane North
Ewell
Epsom
Surrey
KT17 3JQ
Charity registration number 1133012
Company registration number 07003646 (England and Wales)
Auditor Buzzacott Audit LLP
130 Wood Street
London
EC2V 6DL
Solicitors Stone King LLP
Upper Borough Court
3 Upper Borough Walls
Bath
BA1 1RG
Investment managers Rathbone Unit Trust Management Limited
30 Gresham Street
London
EC2V 7QN
Bankers HSBC Bank plc
54 High Street
Epsom
Surrey
KT19 8DS

The Congregation of the Sisters of the Sacred Hearts (PICPUS) 1

Trustees’ report Year ended 31 December 2024

The trustees present their report together with the financial statements of The Congregation of the Sisters of the Sacred Hearts (PICPUS) (i.e. the charity or the charitable company) for the year ended 31 December 2024.

The report has been prepared in accordance with Part 8 of the Charities Act 2011 and constitutes a directors’ report for the purposes of company legislation.

The financial statements have been prepared in accordance with the accounting policies set out on pages 24 to 27 and comply with the charitable company’s Articles of Association, applicable laws and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their financial statements in accordance with the Financial Reporting Standard applicable to the United Kingdom and Republic of Ireland (FRS 102).

Introduction

The Congregation of the Sacred Hearts and of Perpetual Adoration (the “Congregation”) is an international Roman Catholic religious congregation.

The financial statements accompanying this report are the financial statements of the charitable company which has title to the Congregation’s assets and liabilities in England and through which the activities of the Congregation in England are accounted for.

Constitution

The Congregation of the Sisters of the Sacred Hearts (PICPUS) is an incorporated charitable company constituted as a company limited by guarantee, Charity Registration Number 1133012 and Company Registration Number 07003646 (England and Wales). The charitable company was incorporated on 28 August 2009.

Objectives

The objects of the charitable company are:

Activities, specific objectives and relevant policies

Activities and specific objectives

The activity of the charitable company during the period comprises principally the provision of grants and donations to relieve poverty or promote education or religion connected to the Roman Catholic faith or to support the work of the Congregation and the care of its members.

The charitable company provides financial support for the Congregation’s missions throughout the world, either through the Generalate or directly. The missions are under the control of members of the Congregation and the financial support is used to meet the personal and living expenses of the sisters and the costs of their ministry. Funds are transferred only when requested by members of the Congregation working in the missions.

The Congregation of the Sisters of the Sacred Hearts (PICPUS) 2

Trustees’ report Year ended 31 December 2024

Activities, specific objectives and relevant policies (continued)

Activities and specific objectives (continued)

The trustees receive regular reports and updates from the sisters they are supporting, thus enabling them to be satisfied that the funds are used for the purposes intended. It is the aim of the trustees to provide finance to missions to support education programmes with special emphasis on women in developing countries and to assist with the development of specific mission projects.

In addition to the above, occasional grants and donations are given to other organisations and to individuals to assist in the relief of poverty or in the advancement of religion or education connected with the Roman Catholic religion.

The charitable company continues to incur a small amount of overhead expenditure in England connected to the support of the sisters and their ministry.

In addition, it holds funds which, in due course, will be required to finance the care of members of the Congregation in their advancing years.

The Congregation has an obligation, both moral and legal, to provide care for its members, none of whom have resources of their own and all of whom have devoted a significant part of their lives to the care of the elderly, poor and marginalised in society. In common with many religious congregations, the age profile of the members of the Congregation is increasing as existing members grow older and the number of new vocations becomes minimal. The need for specialised care is increasing with the advancing years of the Congregation’s members.

Protection of children and vulnerable adults

Along with all other organisations who serve in the community, the trustees recognise the absolute necessity of ensuring the protection and safety of all those the charitable company serves. This means that all sisters who were in any kind of ministry in Great Britain during the period had to obtain clearance from the Disclosure and Barring Service. The trustees are committed to the implementation of all the policies and procedures proposed by CSSA (The Catholic Safeguarding Standards Agency) and the Religious Life Safeguarding Service (RLSS).

Grants, donations and support of missionary work and ministry

The trustees' policy throughout the period was to grant aid and give assistance to the materially poor, provided certain criteria were met. These criteria included demonstration of need and that the purpose for which the assistance was sought is within the objects of the charitable company. Where an individual applied for support to undertake education and training, priority was given to those whose training and education was likely to benefit the wider community. Priority was given also to projects or individuals located where the Congregation is engaged, including overseas.

Investment policy

There are no restrictions on the charitable company’s power to invest.

During the year the trustees’ investments were managed by Rathbones Unit Trust Management Limited. The charitable company’s listed investments at 31 December 2024 comprised units in a managed fund and had a market value of £ 9,153,102 (2023 – £8,640,564). In addition, at that date, the investment managers were holding cash of £3 (2023 – £nil).

The Congregation of the Sisters of the Sacred Hearts (PICPUS) 3

Trustees’ report Year ended 31 December 2024

Activities, specific objectives and relevant policies (continued)

Investment policy (continued)

The investment managers operate within specific guidelines, which are set and are regularly reviewed by the trustees. The trustees’ policy throughout the period was to have a balance between income and capital, to maintain the capital value of the investment funds at least in line with inflation, and to pursue a strategy involving limited risk, whilst maintaining their income yield.

There are certain restrictions imposed by the trustees on the investment managers including not investing funds in any company with links to tobacco or armaments and not committing the trustees to any underwriting and similar obligations.

Cash surplus to immediate requirements is held in bank term deposits.

Review of activities

The following paragraphs outline the main achievements during the year in respect to the support of members of the Congregation and their ministry together with the relief of poverty and advancement of education or religion connected to the Roman Catholic faith.

In line with Catholic social teaching, as outlined below, and following their Congregational orientations, the trustees participate in the advancement of human dignity, concern for society especially the weakest and poorest, social justice, education for all and human rights.

Some of the documents which highlight Catholic social justice from 1891 to the present day include:- Rerum Novarum 1891; The Second Vatican Council (1962 – 1965) – Gaudium et Spes and Dignitatis Humanae and Pope Francis -Laudato si and Gaudete et Exsultate.

Bearing this in mind, the trustees have carefully considered the projects they wished to support during 2024.

They have continued to focus their plans on support and assistance to projects in the Congo where the need of their communities is greatest as well as supporting the communities, especially children, in Gaza and the Ukraine where lives have been shattered by war. This year, as in 2023, more attention has been given to supporting the Aymer Foundation, whose purpose is to support and strengthen the apostolic work of the Congregation worldwide.

Funds given to the Sisters in the Democratic Republic of the Congo

The England Ireland province has historically had close contact with missionary projects involving personnel from the province or projects which have been involved with either English or Irish Sacred Hearts in the past. For this reason, the province maintains a close relationship with The Congo, The Philippines, Mozambique, Peru and other countries.

Following a request from the General Government, a substantial donation of €105,000 (£90,488) was made to support communities in The Congo. The Democratic Republic of the Congo, is a country in Central Africa. By land area, it is the second-largest country in Africa and the 11thlargest in the world. With a population of around 115 million, the DR Congo is the most populous nominally Francophone country in the world. French is the official and most widely spoken language, though there are over 200 indigenous languages. The national capital and largest city is Kinshasa, which is also the economic centre.

The Congregation of the Sisters of the Sacred Hearts (PICPUS) 4

Trustees’ report Year ended 31 December 2024

Activities, specific objectives and relevant policies (continued)

Review of activities (continued)

Funds given to the Sisters in the Democratic Republic of the Congo (continued)

The recent history of the Democratic Republic of Congo (DR Congo) has been one of civil war and corruption. It is rich in natural resources but has suffered from political instability, a lack of infrastructure, centuries of both commercial and colonial exploitation, and little widespread development since independence. Since the late-2000s, there has been continued fighting in the east, which has seen the deployment of UN and SADC peacekeepers to support Kinshasa. It is here that the impact of the Catholic Church in the DRC is difficult to overestimate. Schatzberg has called it the country's "only truly national institution apart from the state”. Besides involving more than 50 percent of the population in its religious services, its schools have educated over 60 percent of the nation's primary school students and more than 40 percent of its secondary students during the 20th century. The church owns and manages an extensive network of hospitals, schools, and clinics, as well as many diocesan economic enterprises, including farms, ranches, stores, and artisans' shops and without this help many communities would not survive.

Here is the report from one of the Sisters thanking the Sisters and showing how the funds that were sent have been utilised:-

This letter shown below from the Congrégation des Sacrés Coeurs de Jésus et de Marie, thanks the sisters for the donation of 105,000 euros which has been received and lists the expenses covered by the donation, including community life, food, health expenses, training, utility bills, travel for sisters preparing for final commitment, and participation in general chapter and session in Poitiers.

The translation of the list of expenses totalling €105,000 for the sisters of Kinshasa for 2024 is:

Preparation for perpetual vows: travel 7,724
Spiritual retreat 2,200
Norma's travel 1,275
Health 10,505
Solar panels 3,840
Repairs 1,440
Maintenance work on houses (painting and 10,162
others)
Repair and maintenance of 3 cars 17,478
Food (5 communities) 39,281
Travel for General Chapter and Poitiers 11,095
session

The Congregation of the Sisters of the Sacred Hearts (PICPUS) 5

Trustees’ report Year ended 31 December 2024

Activities, specific objectives and relevant policies (continued)

Review of activities (continued)

Funds given to the Sisters in the Democratic Republic of the Congo (continued) Here are some photos of how the funds are helping communities:-

The Congregation of the Sisters of the Sacred Hearts (PICPUS) 6

Trustees’ report Year ended 31 December 2024

Activities, specific objectives and relevant policies (continued)

Review of activities (continued)

Funds given to the Aymer Foundation

This year, in addition to the annual statutory contribution to the Aymer Foundation, a further €20,000 (£17,485) was sent to them. The Aymer Foundation is the platform for solidarity and response to impoverished people and communities in the places where the Sacred Hearts Congregation is present and works. They collaborate in the transformation of our world into a more humane and fraternal place, in which peace and justice grow and work with projects aimed at children, young people and adults in vulnerable situations.

They want to promote personal, family and socio-labour development by combining personal, group and institutional efforts, and promote processes of community and citizen change for a culture of solidarity, peace and justice. Their projects include:-

The Aymer Foundation funds Congregational projects in Africa, Asia and Latin America. The trustees intend to support their work with communities and projects on the ground to further the advances they have made worldwide.

The trustees will continue to support similar projects worldwide over the coming years.

The Mission Fund

In addition to the above donations, funds were given from The Mission Fund. This is a special fund from which the Sisters choose to support causes that are close to their hearts. In accordance with usual practice, £15,000 was donated and shared between Médecins Sans Frontières and UNICEF. The reports below highlight the efforts that are being made to help children in both Gaza and the Ukraine.

The Congregation of the Sisters of the Sacred Hearts (PICPUS) 7

Trustees’ report Year ended 31 December 2024

Activities, specific objectives and relevant policies (continued)

Review of activities (continued)

The Mission Fund (continued)

An MSF nurse works at the neonatal intensive care unit in the MSF-supported Nasser hospital, Khan Younis. Palestine, Gaza, 29 December 2024. MSF currently operates in two hospitals (AlAqsa hospital, Nasser hospital), two field hospitals, six basic healthcare centres, and two clinics.

Their teams are offering surgical support, wound care, physiotherapy, maternity and paediatric care, basic healthcare, vaccinations, and mental health services. However, Israel’s blockade on Gaza has left hospitals without sufficient supplies despite the massive scale up of services and assistance that is needed.

Children collect water in Khan Younis city, south of Gaza. Most of Gaza's water systems are heavily impacted or non-operational.

The Congregation of the Sisters of the Sacred Hearts (PICPUS) 8

Trustees’ report Year ended 31 December 2024

Activities, specific objectives and relevant policies (continued)

Review of activities (continued)

The Mission Fund (continued)

Meanwhile in Ukraine, UNICEF report:-

After three years of full-scale war and 11 years of conflict in the east, children in Ukraine are still at risk and need sustained support. The ongoing violence has caused immense suffering, disrupted children’s development, and torn the fabric of society. Over 2,520 children have been killed or injured since February 2022. Around 3.7 million people are internally displaced and 6.86 million are displaced outside the country. Every three-year-old has known nothing but war, with potential lifelong impacts on their wellbeing and development. They are working around the clock in Ukraine and neighbouring refugee-hosting countries, providing access to clean water, health care services, cash transfers and other critical support.

Funds provided for the elderly in Ireland

The charitable company continues to support the sisters and their ministry. In addition, it holds funds which, in due course, will be required to finance the care of members of the Congregation in their advancing years.

The Congregation has an obligation, both moral and legal, to provide care for its members, none of whom have resources of their own and all of whom have devoted a significant part of their lives to the care of the elderly, poor and marginalised in society. In common with many religious congregations, the age profile of the members of the Congregation is increasing as existing members grow older and the number of vocations becomes minimal. The need for specialised care, particularly medical, is increasing with the advancing years of the Congregation’s members.

During the year, the charitable company transferred £48,233 to Ireland to assist in the support of sisters and the provision of care for sick and older members of the Congregation.

The Congregation of the Sisters of the Sacred Hearts (PICPUS) 9

Trustees’ report Year ended 31 December 2024

Activities, specific objectives and relevant policies (continued)

Review of activities (continued)

Support of the work of the Congregation generally

Although this year there was no request for a donation to the Generalate of the Congregation as substantial funds had been sent to the Congo, it is anticipated that contributions will be made in future years. In 2023 this amounted to €15,000 (£13,165) and was to assist towards expenses relating to travel, food, secretariat costs and medical expenses, beatification of the Good Mother, and telephone and communications. The Congregation is today present worldwide and, in keeping with the initial intuition of the founder, the evangelising mission of the sisters can be carried out in all cultures. The previous year’s donation has been used to help with the costs of living, health and training the Sisters of the Sacred Hearts.

It is anticipated that the charitable company’s income will continue to be sufficient to provide assistance towards the increase in demand for the support given to members and the missions that the charity supports. The trustees will continue to keep both income and expenditure under review.

Whilst there will undoubtedly be challenges ahead, the trustees do not expect material concerns to arise over the charitable company’s immediate financial position.

The trustees will continue to work towards the good stewardship of the funds they hold for the present and future beneficiaries.

Financial review for the year

Income and expenditure

A summary of the year’s results can be found on page 21 of this report and financial statements.

The total income for the year was £ 273,703 (2023 – £291,611) and comprised investment income and interest receivable.

The total expenditure for the year was £ 219,182 (2023 – £217,327). Expenditure on support of members of the Congregation and their ministry together with the relief of poverty and the advancement of education or religion connected with the Roman Catholic faith was £200,979 (2023 – £200,451). During the year the charity gave annual donations to the Congregation’s Generalate of £nil (2023 – £13,165) to support the work of the Congregation generally; £48,233 (2023 – £40,000) was spent on members of the Congregation who themselves require care and support and a further sum of £90,488 was given to an overseas project of the Congregation (2023 – sums of £78,973 and £8,791 were given to two overseas projects). In addition, £15,000 (2023 – £20,000) was given to two charities from the Mission Fund in support of their work in Ukraine and Gaza (2023 was given following the earthquake in Turkey and Syria). Details of these donations and other smaller gifts are given in note 2 to the financial statements and details of the projects are shown above under activities and performance.

During the year the investment managers charged fees which are invoiced and paid directly by the charitable company. Such expenditure on managing the investments of the charitable company during the year to 31 December 2024 was £18,203 (2023 – £16,876).

The Congregation of the Sisters of the Sacred Hearts (PICPUS) 10

Trustees’ report Year ended 31 December 2024

Financial review for the year (continued)

Income and expenditure (continued)

The net income for the year, therefore, before net investment gains was £ 54,521 (2023 - net income of £74,284). Investment gains amounted to £ 442,541 (2023 – investment gains of £312,997). The net increase in funds for the year amounted to £497,062 (2023 – £387,281).

Performance of listed investments

The investment managers have invested in accordance with the trustees’ investment policy set out earlier in this report and have complied with the ethical guidelines given to them. The charitable company’s investments achieved an income yield of 2.99% (2023 - 3.4%) and a capital yield of 5.09% (2023 – 7.3%). Further details of the investment portfolio are included in note 6 to the attached financial statements.

The trustees believe their investment policy continues to be applied and remains appropriate.

At 31 December 2024, the charitable company’s investments comprised units in the Rathbone Active Income and Growth Fund managed by Rathbone Unit Trust Management Limited.

Financial position and reserves policy

The balance sheet shows total funds of £9,411,710 (2023 – £8,914,648).

£ 5,900,000 (2023 – £5,900,000) has been designated by the trustees to provide for the sisters in their retirement. The fund has been calculated using actuarial principles, whilst having regard to the resources actually available.

£ 1,000,000 (2023 – £1,000,000) has been designated by the sisters as a Mission Fund, the income of which is used to support non-Congregational projects and other charities, both in the UK and overseas, that respond to the poor and vulnerable in the world at the request of individual members of the Congregation.

Restricted funds amounted to £ 1,316,455 (2023 – £1,220,678) and represent the Generalate fund, being monies given to the charitable company by the Generalate of The Congregation of the Sisters of the Sacred Hearts and of Perpetual Adoration to be used to finance the overseas missions of the Congregation and the broader work of the Congregation overseas.

Funds which are available as free reserves i.e., those unrestricted funds not designated for specific purposes or otherwise committed, are shown on the balance sheet as general funds and amount to £ 1,195,255 (2023 – £793,970).

It is the trustees’ aim to ensure that sufficient funds are generated to be able to provide a proper level of care for sisters of all ages as they need it, while maintaining support for the active sisters who continue to generate low levels of income in worldwide ministries where support is badly needed. The charitable company is reliant on investment income necessary to meet both current and future requirements. To this end, regular meetings are held to ensure that sufficient funds are generated from the investment portfolio and changes are made to the portfolio as appropriate.

The Congregation of the Sisters of the Sacred Hearts (PICPUS) 11

Trustees’ report Year ended 31 December 2024

Financial review for the year (continued)

Financial position and reserves policy (continued)

The trustees consider that, given the nature of the charitable company’s work, the level of free reserves should be sufficient to generate enough income to cover approximately one year’s ongoing expenditure and to provide for contingencies, unevenness in future income and volatility in the value of investments. In particular, at the current time, the reserves need to be sufficient to enable the charitable company to operate in the exceptional macro-economic and geopolitical climate.

At 31 December 2024, the charity’s free reserves had been positively affected by the investment incurred during the year, as has happened in the previous year. The charitable company is a long-term gains investor and it is the trustees’ opinion that the free reserves are sufficient and meet the charity’s reserves policy set out above.

Fundraising statement

The charitable company aims to achieve best practice in the way in which it communicates with donors and other supporters. It takes care with both the tone of its communication and the accuracy of its data to minimise the pressures on supporters. It applies best practice to protect supporters’ data and never sells data, it never swaps data and ensures that communication preferences can be changed at any time. The charitable company manages its own activities to raise funds and does not employ the services of professional fundraisers. The charitable company undertakes to react and to investigate any complaints regarding its activities for raising funds and to learn from them and improve its service. During the year, the charitable company received no complaints about its activities for raising funds.

Future plans

The trustees continue to give serious thought to the future plans of the charitable company and their long-term responsibilities. It is their intention to continue to care for the members of the Congregation worldwide, enabling them to carry out their pastoral work and ministry. Focus will be given to assisting and caring for the elderly, the poor, those who have been displaced by external forces and the marginalised, reaching out to as many as they can and in as substantial a way as possible whilst bearing in mind the objects of the charity.

Governance, structure and management

Governance

In terms of Canon law, the Congregation is governed at an international level by the Superior General and her General Council.

In terms of civil law, the charitable company is constituted as a company limited by guarantee (Company Registration No. 07003646 (England and Wales)) and is a charitable company registered for charitable purposes with the Charity Commission (Charity Registration No. 1133012).

The Congregation of the Sisters of the Sacred Hearts (PICPUS) 12

Trustees’ report Year ended 31 December 2024

Governance, structure and management (continued)

Governance (continued)

The charitable company’s members are the trustees of the charitable company. The trustees are appointed in writing by the Superior General of the Congregation taking into account their personal qualities, their understanding and experience of the sisters’ ministries.

Trustees

At any one time there shall not be less than three nor more than nine trustees. The following trustees were in office during the year:

Trustee

Sister Aileen Kennedy Sister Joan Geoghegan Sister Mary McCloskey Company secretary Mrs Jenny Coleman

No trustee received any remuneration or reimbursed expenses for services as a trustee, nor had any beneficial interest in any contract with the charitable company, during the year.

The trustees are all members of the Congregation and, as such, are closely involved with the day-to-day work of the sisters and directly responsible for all major decisions.

The trustees are ultimately responsible for the policies, activities, and assets of the charitable company. They meet at least twice a year to review developments relating to the charitable company or its activities and to make any important decisions. When necessary, the trustees seek advice and support from the charitable company’s professional advisers including investment managers, solicitors and accountants. The day-to-day management of the charitable company’s activities, and the implementation of policies, is delegated to appropriate members of the Congregation and to lay consultants and advisers, as necessary.

Liability of the members

In the event of the charitable company being wound up during the period of membership, or within the year following, company members are required to contribute an amount not exceeding £1.

Key management

The trustees consider that they comprise the key management of the charitable company in charge of directing and controlling, running and operating the charitable company on a day-today basis.

All trustees are members of the Congregation and whilst occasional travel expenses are borne by the charity, they receive no remuneration or reimbursement of expenses in connection with their duties as trustees or their work as key management.

The Congregation of the Sisters of the Sacred Hearts (PICPUS) 13

Trustees’ report Year ended 31 December 2024

Governance, structure and management (continued)

Statement of trustees’ responsibilities

The trustees (who are also directors of The Congregation of the Sacred Hearts (PICPUS) for the purposes of company law) are responsible for preparing the trustees’ report and financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the income and expenditure of the charitable company for that period. Under company law the trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of the income and expenditure of the charitable company for that period.

In preparing these financial statements, the trustees are required to:

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

Each of the trustees confirms that:

This confirmation is given and should be interpreted in accordance with the provisions of section 418 of the Companies Act 2006.

The Congregation of the Sisters of the Sacred Hearts (PICPUS) 14

Trustees’ report Year ended 31 December 2024

Governance, structure and management (continued)

Public benefit

In formulating the charitable company’s aims, the trustees have had regard to the general guidance published by the Charity Commission on public benefit.

Risk management

In line with the requirement for trustees to undertake a risk assessment exercise and report on the same in their annual report, the trustees have looked at the risks the charitable company currently faces and have reviewed the measures already in place, or needing to be put in place, to deal with them.

Whilst there will be challenges, the current geopolitical and macroeconomic climate is not expected to present threats to the well-being of the charitable company, the members of the Congregation and the ministries of individual members. The trustees recognise their responsibility for the management of risks faced by the charitable company and will continue to monitor the position.

The trustees continue to review and update their register of risks.

The areas identified for particular attention within the charity’s risk management strategy are:

The Congregation of the Sisters of the Sacred Hearts (PICPUS) 15

Aileen Kenne

23 May 2025

Independent auditor’s report 31 December 2024

Independent auditor’s report to the members of The Congregation of the Sisters of the Sacred Hearts (PICPUS)

We have audited the financial statements of The Congregation of the Sisters of the Sacred Hearts (PICPUS) (the “charitable company”) for the year ended 31 December 2024 which comprise the statement of financial activities, the balance sheet, the statement of cash flows, the principal accounting policies and the notes to the financial statements. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

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

Conclusions relating to going concern

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

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

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

Other information

The trustees are responsible for the other information. The other information comprises the information included in the Annual Report and Financial Statements, other than the financial statements and our auditor’s report thereon. 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.

The Congregation of the Sisters of the Sacred Hearts (PICPUS) 17

Independent auditor’s report 31 December 2024

Other information (continued)

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees’ report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of trustees

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

The Congregation of the Sisters of the Sacred Hearts (PICPUS) 18

Independent auditor’s report 31 December 2024

Auditor’s responsibilities for the audit of the financial statements

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.

How the audit was considered capable of detecting irregularities including fraud

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

We assessed the susceptibility of the charitable company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

To address the risk of fraud through management bias and override of controls, we:

The Congregation of the Sisters of the Sacred Hearts (PICPUS) 19

23 May 2025

Statement of financial activities Year to 31 December 2024

Notes Un-
restricted
funds
£
Restricted
funds
£		 2024
Total
funds
£		 Un-
restricted
funds
£
Restricted
funds
£
2023
Total
funds
£
Income from:
Investments and interest receivable
1
Total income
Expenditure on:
Raising funds
. Investment management fees
Charitable activities
. Support of members of the
Congregation and their ministry
together with the relief of poverty and
the advancement of education or
religion connected with the Roman
Catholic faith
2
Total expenditure
Net income before net investment
gains
4
Net gains on listed investments
6
Net income and net movement in
funds
Reconciliation of funds:
Total funds brought forward at 1
January 2024
Total funds carried forward at 31
December 2024		 236,847
36,856
273,703
253,605
38,006
291,611
236,847
36,856
273,703		 253,605
38,006
291,611
15,659
200,979
2,544

—



18,203


200,979		 14,634
200,451
2,242

—
16,876

200,451
216,638
2,544
219,182		 215,085
2,242
217,327
20,209
381,076
34,312

61,465

54,521


442,541
 38,520
271,421
35,764

41,576
74,284

312,997
401,285
7,693,970
95,777

1,220,678
497,062



8,914,648
 309,941
7,384,029
77,340

1,143,338
387,281

8,527,367
8,095,255
1,316,455
9,411,710		 7,693,970
1,220,678
8,914,648

All activities of the charitable company derived from continuing operations during the above two financial years.

All gains and losses are included in the above statement of financial activities.

The Congregation of the Sisters of the Sacred Hearts (PICPUS) 21

Aileen Ke

23 May 2025

Statement of cash flows Year to 31 December 2024

Notes 2024
£		 2023
£
Cash flows from operating activities:
Net cash used in operating activities
A
Cash flows from investing activities:
Investment income and interest received
Purchase of investments
Net cash provided by investing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents at 1 January 2024
B
Cash and cash equivalents at 31 December 2024
B		 **(215,415) ** (215,700)


273,753
**(69,999) **		 291,528
—
203,754 291,528

(11,661)

186,086
 75,828
110,258
174,425 186,086

Notes to the statement of cash flows for the year to 31 December 2024.

A Reconciliation of net movement in funds to net cash used in operating activities

2024
£
497,062
(442,541)
(273,703)
3,767
**(215,415) **		 2023
£
387,281
(312,997)
(291,611)
1,627
(215,700)
Net movement in funds (as per the statement of financial activities)
Adjustments for:
Gains on listed investments
Investment income and interest receivable
Increase in creditors
Net cash used in operating activities

B Analysis of cash and cash equivalents

Analysis of cash and cash equivalents
At 1
January
2024
£
Cash flows
£
At 31
December
2024
£
Cash at bank and in hand
Total cash and cash equivalents		 186,086
(11,661)		 174,425
186,086
(11,661)		 174,425

No separate statement of changes in net debt has been prepared as there is no difference between the movements in cash and cash equivalents and movement in net cash (debt).

The Congregation of the Sisters of the Sacred Hearts (PICPUS) 23

Principal accounting policies Year to 31 December 2024

The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are laid out below.

Basis of preparation

These financial statements have been prepared for the year to 31 December 2024 with comparative figures given for the year to 31 December 2023.

The financial statements have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant accounting policies below or the notes to these financial statements.

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their financial statements in accordance with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (Charities SORP FRS 102), the Financial Reporting Standard applicable to the United Kingdom and Republic of Ireland (FRS 102) and the Companies Act 2006.

The charitable company constitutes a public benefit entity as defined by FRS 102.

The financial statements are presented in sterling and are rounded to the nearest pound.

Critical accounting estimates and areas of judgement

Preparation of the financial statements requires the trustees to make significant judgements and estimates.

The items in the financial statements where these judgements and estimates have been made include:

Assessment of going concern

The trustees have assessed whether the use of the going concern assumption is appropriate in preparing these financial statements. The trustees have made this assessment in respect to a period of at least one year from the date of approval of these financial statements.

The trustees will continue to keep both income and expenditure under review. Undoubtedly there will be challenges ahead but the trustees do not expect material concerns to arise over the charitable company’s financial position or going concern. The trustees have concluded that the charitable company will have sufficient resources to meet its liabilities as they fall due.

The Congregation of the Sisters of the Sacred Hearts (PICPUS) 24

Principal accounting policies Year to 31 December 2024

Assessment of going concern (continued)

The most significant areas of judgement that affect items in the financial statements are detailed above. With regard to the next accounting period, the year ending 31 December 2025, the most significant areas that affect the carrying value of the assets held by the charity are the level of investment return and the performance of the investment markets (please see the investment policy and the risk management sections of the trustees’ report for more information).

Income recognition

Income is recognised in the period in which the charitable company has entitlement to the income, the amount of income can be measured reliably and it is probable that the income will be received.

Income comprises of investment income and interest receivable.

Investment income is recognised once the dividend has been declared and notification has been received of the amount due.

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the bank.

In accordance with the Charities SORP FRS 102 volunteer time is not recognised.

Resources expended and the basis of apportioning costs

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to make a payment to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably.

The classification between activities is as follows:

Expenditure on charitable activities also includes the support of members of the Congregation as they grow older and the costs of enabling them to carry out the work of the charitable company in the areas of the advancement of the Roman Catholic faith and the relief of poverty.

The Congregation of the Sisters of the Sacred Hearts (PICPUS) 25

Principal accounting policies Year to 31 December 2024

Resources expended and the basis of apportioning costs (continued)

All expenditure can be attributed directly to the above activities and hence there has been no apportionment between headings.

All expenditure is stated inclusive of irrecoverable VAT.

Services provided by members of the Congregation

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

Support and governance costs

Support costs represent indirect charitable expenditure. In order to carry out the primary purposes of the charity it is necessary to provide support in the form of personnel development, financial procedures, provision of office services and equipment and a suitable working environment.

Governance costs comprise the costs involving the public accountability of the charity (including audit costs) and costs in respect to its compliance with regulation and good practice.

Fixed asset investments

Listed 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 charity does not acquire put options, derivatives or other complex financial instruments.

As noted above the main form of financial risk faced by the charity is that of volatility in equity markets and investment markets due to wider economic conditions, the attitude of investors to investment risk, and changes in sentiment concerning equities and within particular sectors or sub sectors.

Realised gains (or losses) on investment assets are calculated as the difference between disposal proceeds and their opening carrying value or their purchase value is acquired subsequent to the first day of the financial year. Unrealised gains and losses are calculated as the difference between the fair value at the year end and their carrying value at that date. Realised and unrealised investment gains (or losses) are combined in the statement of financial activities and are credited (or debited) in the year in which they arise.

Debtors

Debtors are recognised at their settlement amount, less any provision for non-recoverability. Prepayments are valued at the amount prepaid. They have been discounted to the present value of the future cash receipt where such discounting is material.

The Congregation of the Sisters of the Sacred Hearts (PICPUS) 26

Principal accounting policies Year to 31 December 2024

Cash at bank and in hand

Cash at bank and in hand represents such accounts and instruments that are available on demand or have a maturity of less than three months from the date of acquisition. Deposits for more than three months but less than one year are disclosed as short-term deposits.

Creditors and provisions

Creditors and provisions are recognised when there is an obligation at the balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Creditors and provisions are recognised at the amount the charity anticipates it will pay to settle the debt. They have been discounted to the present value of the future cash payment where such discounting is material.

Foreign currencies

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

Fund structure

General funds represent those monies which are freely available for application towards achieving any charitable purpose that falls within the charity’s charitable objects.

Designated funds comprise monies set aside out of unrestricted general funds for specific future purposes or projects. Details of these are provided in note 10.

Restricted funds comprise monies raised for, or their use restricted to, a specific purpose, or contributions subject to donor imposed conditions. Details of these are provided in note 9.

The Congregation of the Sisters of the Sacred Hearts (PICPUS) 27

Notes to the financial statements Year to 31 December 2024

1 Income from: Investments and interest receivable

Unrestricted
funds
£
Restricted
funds
£		 2024
Total
funds
£
Unrestricted
funds
£
Restricted
funds
£
2023
Total
funds
£
Investment income
. UK listed investments
Bank interest		 230,778
6,069

36,856

—		 267,634
6,069
248,119

5,486
38,006

—
286,125

5,486
236,847
36,856		 273,703
253,605
38,006
291,611
with the Roman Catholic faith
Unrestricted funds /
Total funds
2024
£		 2023
£
Provision of grants and donations (see below)
Support and governance costs (note 3)		 171,206
29,773		 179,779
20,672
200,979 200,451

Grants and donations during the year comprised:

Unrestricted funds /
Total funds		 Unrestricted funds /
Total funds
2024
£		 2023
£
Amounts paid to institutions
Support of missions and projects of the Congregation overseas
. Educational support in Kinshasa, Democratic Republic of Congo
. Assistance to the community in the Philippines
. Assistance to the community in Brazil
Support of sisters and the provision of care for the sick and older
members of the Congregation in Ireland
Contribution to the Congregation’s Generalate to support the work
of the Congregation generally
. Annual donation
Mission Fund donations: to support charitable work in Ukraine
. Médecins Sans Frontières
. UNICEF
. Irish Red Cross
. British Red Cross
. Trocaire
Aymer Foundation		 90,488
—
—
48,233
—
7,500
7,500
—
—
—
17,485		 —
78,973
8,791
40,000
13,165
5,000
—
5,000
5,000
5,000
18,850
171,206 179,779

No donations were paid to individuals during the years to 31 December 2024 and 2023.

The Congregation of the Sisters of the Sacred Hearts (PICPUS) 28

Notes to the financial statements Year to 31 December 2024

3 Support and governance costs

Support and governance costs
Unrestricted funds /
Total funds
2024
£		 2023
£
Legal fees
Professional fees
Governance costs
Trustees’ meeting expenses
Other expenses		 4,968
7,614
12,270
998
3,923		 —
7,008
8,820
1,253
3,591
29,773 20,672
Net income before net investment gains
This is stated after charging:		 2024
£		 2023
£
Auditor’s remuneration (including VAT)
. Statutory audit services: Current year
Previous year
. Other services: Currentyear		 9,600
2,670
—		 6,330
930
1,560

4 Net income before net investment gains

5 Staff costs and key management personnel

The charity does not employ staff and hence has no staff costs (2023 – £nil).

The trustees consider that they comprise the key management of the charity in charge of directing and controlling, running and operating the charity on a day-to-day basis.

All trustees are members of the Congregation and whilst their occasional travel expenses are borne by the charity, they receive no remuneration or reimbursement of expenses in connection with their duties as trustees or work as key management (2023 – £nil).

6 Investments

Investments
2024
£		 2023
£
Listed investments
Fair (market) value at 1 January 2024
Additions at cost
Net unrealised investment gains
Fair (market) value at 31 December 2024
Cash held by investment managers for re-investment
Cost of listed investments at 31 December 2024		 8,640,562
69,999
442,541		 8,327,565
—
312,997
9,153,102
3		 8,640,562
2
9,153,105 8,640,564
6,518,395 6,448,396

At 31 December 2024 the charitable company’s listed investments comprised units in a managed fund – The Rathbone Active Income and Growth Fund – managed by Rathbone Unit Trust Management Limited and dealt in on a recognised stock exchange.

The Congregation of the Sisters of the Sacred Hearts (PICPUS) 29

Notes to the financial statements Year to 31 December 2024

7 Debtors 2024
£		 2023
£
Interest receivable 166 217

8 Creditors: amounts falling due within one year

Creditors: amounts falling due within one year
2024
£		 2023
£
Other creditors and accruals 15,986 12,219

9 Restricted funds – The Generalate fund

Restricted funds – The Generalate fund
2024
£		 2023
£
At 1 January 2024
Net movements in year
At 31 December 2024		 1,220,678
95,777		 1,143,338
77,340
1,316,455 1,220,678

The Generalate fund represents monies given by the Generalate of The Congregation of the Sisters of the Sacred Hearts and of Perpetual Adoration to be used to finance the overseas missions of the Congregation and the broader work of the Congregation overseas.

10 Designated funds

The unrestricted funds of the charitable company include the following funds designated for specific purposes:

At 1
January
2024
£
Designated
in the year
£		 Released/
utilised
in the year
£
At 31
December
2024
£
Mission fund
Retirement reserve		 1,000,000
5,900,000
15,000

—		 (15,000)
—
1,000,000

5,900,000
6,900,000
15,000		 (15,000) 6,900,000
At 1
January
2023
£
Designated
in the year
£		 Released/
utilised
in the year
£
At 31
December
2023
£
Mission fund
Retirement reserve		 1,000,000
5,900,000		 20,000
—		 (20,000)
—		 1,000,000
5,900,000
6,900,000 — — 6,900,000

Mission fund

The Mission fund represents an amount set aside by the trustees, the income of which is used to support non-Congregational projects and other charities, both in the UK and overseas, that respond to the poor and vulnerable in the world. Such support will be considered following the receipt of a request from individual members of the Congregation.

The Congregation of the Sisters of the Sacred Hearts (PICPUS) 30

Notes to the financial statements Year to 31 December 2024

10 Designated funds (continued)

♦ Retirement reserve

The retirement reserve comprises monies which the trustees have set aside in order to provide for the sisters as they grow older. The amount of the fund is calculated using actuarial principles, whilst having regard to the resources actually available.

11 Analysis of net assets between funds

General
funds
£

Designated
funds
£
Restricted
funds
£
Total
2024
£
Fund balances at 31 December 2024
are represented by:
Investments
Net current assets
Total net assets		 973,932
221,323
6,900,000

—
1,279,173

37,282
9,153,105

258,605
1,195,255
6,900,000
1,316,455
9,411,710
General
funds
£

Designated
funds
£
Restricted
funds
£
Total
2023
£
Fund balances at 31 December 2023
are represented by:
Investments
Net current assets
Total net assets		 592,856
201,114
6,900,000

—
1,147,708

72,970
8,640,564

274,084
793,970
6,900,000
1,220,678
8,914,648

The total unrealised gains at 31 December 2024 and 2023 include net gains on revaluation of listed investments.

2024
£		 2023
£
Total unrealised gains on listed investments at 31 December 2024
Reconciliation of movements in unrealised gains
Unrealised gains at 1 January 2024
Less: Gains realised on disposal of listed investments
Net gains arising on revaluation of listed investments
Total unrealisedgains at 31 December 2024		 2,634,707 2,192,166
2,192,166
442,541		 1,879,169
312,997
2,634,707 2,192,166

12 Taxation

The Congregation of the Sacred Hearts (PICPUS) is a registered charitable company and, therefore, is not liable to taxation on income and gains derived from its charitable activities, as they fall within the various exemptions available to registered charities.

13 Liability of the members

In the event of the charitable company being wound up during the period of membership, or within the year following, company members are required to contribute an amount not exceeding £1.

The Congregation of the Sisters of the Sacred Hearts (PICPUS) 31

Notes to the financial statements Year to 31 December 2024

14 Ultimate control

The charitable company was controlled throughout the period by the company members who are also the trustees.

15 Related party transactions

There were no related party transactions requiring disclosure in the year (2023 – none).

The Congregation of the Sisters of the Sacred Hearts (PICPUS) 32