Company registration number: 07454427 Charity registration number: 1141084
Scalabrini Fathers Company
(A company limited by guarantee) Annual Report and Financial Statements for the Year Ended 31 December 2023
Sterling Grove Accountants Limited Chartered Certified Accountants and Statutory Auditors Fawley House 2 Regatta Place Marlow Road Bourne End Buckinghamshire SL8 5TD
Scalabrini Fathers Company
Contents
| Reference and Administrative Details | 1 |
|---|---|
| Strategic Report | 2 |
| Trustees' Report | 3 to 5 |
| Independent Auditors' Report | 6 to 9 |
| Statement of Financial Activities | 10 to 11 |
| Balance Sheet | 12 |
| Statement of Cash Flows | 13 |
| Notes to the Financial Statements | 14 to 28 |
Scalabrini Fathers Company
Reference and Administrative Details
| Trustees | Father Francesco Buttazzo CS |
|---|---|
| Father Giuseppe Bortolazzo CS | |
| Reverend Geraldo Melotti Junior | |
| Reverend Mauro Lazzarato | |
| Reverend Elio Alberti | |
| Reverend Giandomenico Ziliotto | |
| Reverend Tam Nguyen Van | |
| Secretary | Ms Katia Bortolazzo |
| Charity Registration Number | 1141084 |
| Company Registration Number | 07454427 |
| The charity is incorporated in England. | |
| Registered Office | 20 Brixton Road |
| London | |
| SW9 6BU | |
| Auditor | Sterling Grove Accountants Limited |
| Chartered Certified Accountants and Statutory Auditors | |
| Fawley House | |
| 2 Regatta Place | |
| Marlow Road | |
| Bourne End | |
| Buckinghamshire | |
| SL8 5TD | |
| Solicitors: | Pothecary Witham Weld |
| 70 St George's Square | |
| London | |
| SW1V 3RD | |
| Bankers | CAF Bank |
| 25 Kings Hill Avenue | |
| Kings Hill | |
| West Malling | |
| Kent | |
| ME19 4JQ |
Page 1
Scalabrini Fathers Company
Strategic Report for the Year Ended 31 December 2023
The trustees, who are directors for the purposes of company law, present their strategic report for the year ended 31 December 2023, in compliance with s414C of the Companies Act 2006.
Financial review
In 2023 the Charity's accounts show net income of £3,514,134 (2022: £64,272), this includes an investment property revaluation gain of £1,188,261.
A large donation of £2 million was received in year from the connected orgianisation Scalabrini Verein, this was given to help fund the development works at 22 & 24 Brixton Road.
Church income has been maintained as well as high occupancy levels on the investment properties being maintained.
Policy on reserves
The policy on reserves is reviewed on a yearly basis and based on the level of income generated during each financial year.
The unrestricted funds are set aside for unforeseen shortfall on cashflow and mainly for the maintenance of fixed assets which will ensure the longevity and the operation of community related activities.
On the coming few years reserves are to be kept on a sustainable level due to planned projects.
Investment policy and objectives
The trustees have the power to invest in such stocks and shares, investments and property as they see fit. The trustees hold majority funds on deposit with a small investment held in CAF Bank General Fund.
The strategic report was approved by the trustees of the charity on 5 December 2024 and signed on its behalf by:
.........................................
Father Francesco Buttazzo CS Trustee
Page 2
Scalabrini Fathers Company
Trustees' Report
The trustees, who are directors for the purposes of company law, present the annual report together with the financial statements and auditors' report of the charitable company for the year ended 31 December 2023.
The financial statements have been prepared in accordance with the accounting policies set out in notes to the accounts and comply with the charity'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 published on 16 July 2014.
Objectives and activities
Objects and aims
The objects of the charity are for such charitable purposes which advance religious and other charitable work for the time being carried on by or under the direction of the society as trustees with the approval of the Superior shall from time to time think fit. There have been no changes in these objects during the year.
The Scalabrini Fathers run two parishes which are located in Brixton and Bedford.
The aim of the charity is to advance the Catholic faith in the local areas for the benefit of the public, in particular through the holding of regular services, lectures and the public celebration of religious festivals. The charity also provides facilities in the interest of social welfare for leisure time.
Public benefit
The Charity offers a variery of services which are aimed at those who worship at our churches and the wider communities and in particular the immigrant and elderly residents.
The trustees confirm that they have complied with the requirements of section 17 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission for England and Wales.
Trustees and officers
The trustees and officers serving during the year and since the year end were as follows:
Trustees: Father Francesco Buttazzo CS Father Giuseppe Bortolazzo CS Reverend Geraldo Melotti Junior Reverend Mauro Lazzarato Reverend Elio Alberti Reverend Giandomenico Ziliotto Reverend Tam Nguyen Van Reverend Jovannie Serrano Postrano (resigned 13 June 2024)
Secretary: Ms Katia Bortolazzo
Structure, governance and management
Nature of governing document
Scalabrini Fathers is a company limited by guarantee, it was incorporated 29 November 2010 under registration number 07454427 and governed by its Memorandum and Articles of Associations. The company was registered with the Charity Commission on 1 April 2011 and given the number 1141084
Page 3
Scalabrini Fathers Company
Trustees' Report
Recruitment and appointment of trustees
None of the Trustees have any beneficial interest in the company. All of the Trustees are members of the company and guarantee to contribute £1 in a the event of a winding up.
The charity is connected to the Villa Scalabrini (Charities Commission reference 1102881) and to the Regional Provincial House in Basel, Switzerland.
The trustees meet on regular basis to review the Charity's performance and issue new guidance if required.
When a need for a new Trustee is identified, a request is made for applicants and then their suitability is discussed and candidate agreed. The new trustee is introduced at the next suitable Trustee meeting but does not become a Trustee until the results of the checks are in and the legal processes have been completed.
Induction and training of trustees
Induction takes the form of a meeting with a trustee and where relevant key staff who explain responsibilities and how Scalabrini Father works.
The day to day management of the charity is overseen by Father Nguyen Dung Luc, who reports to trustees regularly.
Financial instruments
Objectives and policies
The charity finances its operations through retaining a high level of cash and other reserves.
Cash flow risk
The charity maintains a high level od cash reserves to mitigate cash flow risk.
Credit risk
The charity’s principal financial assets are bank balances and cash, trade and other receivables, and investments. The charity’s credit risk is primarily attributable to its trade receivables. The amounts presented in the balance sheet are net of allowances for doubtful receivables. An allowance for impairment is made where there is an identified loss event which, based on previous experience, is evidence of a reduction in the recoverability of the cash flows.
Liquidity risk
In order to maintain liquidity to ensure that sufficient funds are available for ongoing operations and future developments, the charity uses a mixture of long-term and short-term debt finance.
Further details regarding liquidity risk can be found in the Statement of accounting policies in the financial statements.
Statement of trustees' responsibilities
The trustees (who are also the directors of Scalabrini Fathers Company for the purposes of company law) are responsible for preparing the trustees' report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland".
Page 4
Scalabrini Fathers Company
Trustees' Report
Company law requires the trustees to prepare financial statements for each financial year. Under company law the trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including its income and expenditure, of the charitable company for that period. In preparing these financial statements, the trustees are required to:
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select suitable accounting policies and apply them consistently;
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observe the methods and principles in the Charities SORP;
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make judgements and estimates that are reasonable and prudent;
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state whether applicable accounting standards, comprising FRS 102 have been followed, subject to any material departures disclosed and explained in the financial statements; and
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.
The trustees are responsible for keeping proper accounting records that can 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.
The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's website. Legislation governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
Disclosure of information to auditor
Each trustee has taken steps that they ought to have taken as a trustee in order to make themselves aware of any relevant audit information and to establish that the charity's auditor is aware of that information. The trustees confirm that there is no relevant information that they know of and of which they know the auditor is unaware.
The annual report was approved by the trustees of the charity on 5 December 2024 and signed on its behalf by:
......................................... Father Francesco Buttazzo CS Trustee
Page 5
Scalabrini Fathers Company
Independent Auditor's Report to the Members of Scalabrini Fathers Company
Opinion
We have audited the financial statements of Scalabrini Fathers Company (the 'charity') for the year ended 31 December 2023, which comprise the Statement of Financial Activities, Balance Sheet, Statement of Cash Flows, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is United Kingdom Accounting Standards, comprising Charities SORP - FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and applicable law (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
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give a true and fair view of the state of the charity's affairs as at 31 December 2023 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;
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have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
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have been prepared in accordance with the requirements of the Companies Act 2006.
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 responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the trustees use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were 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, 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.
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.
Page 6
Scalabrini Fathers Company
Independent Auditor's Report to the Members of Scalabrini Fathers Company
Opinion on other matter prescribed by the Companies Act 2006
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In our opinion, based on the work undertaken in the course of the audit:
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the information given in the Strategic Report and Trustees' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
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the Strategic Report and Trustees' Report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of our knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report and the Trustees' Report.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
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adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
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the financial statements are not in agreement with the accounting records and returns; or
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certain disclosures of trustees remuneration specified by law are not made; or
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we have not received all the information and explanations we require for our audit.
Responsibilities of trustees
As explained more fully in the Statement of trustees' responsibilities (set out on page 4 and 5), the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the trustees are responsible for assessing the charity's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.
Auditor 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.
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
Page 7
Scalabrini Fathers Company
Independent Auditor's Report to the Members of Scalabrini Fathers Company
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:
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the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations; - we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the environmental waste sector; - we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation and data protection, anti-bribery, employment, environmental and health and safety legislation;
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we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and
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identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
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making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
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considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.
To address the risk of fraud through management bias and override of controls, we:
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performed analytical procedures to identify any unusual or unexpected relationships;
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tested journal entries to identify unusual transactions;
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assessed whether judgements and assumptions made in determining the accounting estimates set out in the accounting policies were indicative of potential bias; and
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investigated the rationale behind significant or unusual transactions.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
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agreeing financial statement disclosures to underlying supporting documentation;
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reading the minutes of meetings of those charged with governance;
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enquiring of management as to actual and potential litigation and claims; and
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reviewing correspondence with HMRC, relevant regulators and the company's legal advisors.
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.
Page 8
Scalabrini Fathers Company
Independent Auditor's Report to the Members of Scalabrini Fathers Company
Use of our report
This report is made solely to the charitable company's trustees, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and its trustees as a body, for our audit work, for this report, or for the opinions we have formed.
...................................... Mr Gianni Pietro Amasanti FCCA (Senior Statutory Auditor) For and on behalf of Sterling Grove Accountants Limited, Statutory Auditor
Fawley House 2 Regatta Place Marlow Road Bourne End Buckinghamshire SL8 5TD
10 December 2024
Page 9
Scalabrini Fathers Company
Statement of Financial Activities for the Year Ended 31 December 2023 (Including Income and Expenditure Account and Statement of Total Recognised Gains and Losses)
| Total | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Unrestricted | Restricted | 2023 | |||||||||
| Note | £ | £ | £ | ||||||||
| Income and Endowments from: | |||||||||||
| Donations and legacies | 3 | 393,729 | 2,043,954 | 2,437,683 | |||||||
| Investment income | 4 | 377,418 | - | 377,418 | |||||||
| Total income | 771,147 | 2,043,954 | 2,815,101 | ||||||||
| Expenditure on: | |||||||||||
| Raising funds | 5 | (42,083) | (43,414) | (85,497) | |||||||
| Charitable activities | 6 | (403,731) | - | (403,731) | |||||||
| Total expenditure | (445,814) | (43,414) | (489,228) | ||||||||
| Gains/losses on investment assets | 1,188,261 | - | 1,188,261 | ||||||||
| Net income | 1,513,594 | 2,000,540 | 3,514,134 | ||||||||
| Transfers between reserves | 815,902 | (815,902) | - | ||||||||
| Net movement in funds | 2,329,496 | 1,184,638 | 3,514,134 | ||||||||
| Reconciliation of funds | |||||||||||
| Total funds brought forward | 10,246,179 | - | 10,246,179 | ||||||||
| Total funds carried forward | 21 | 12,575,675 | 1,184,638 | 13,760,313 | |||||||
| Unrestricted | Restricted | Total | |||||||||
| funds | funds | 2022 | |||||||||
| Note | £ | £ | £ | ||||||||
| Income and Endowments from: | |||||||||||
| Donations and legacies | 3 | 237,648 | 58,017 | 295,665 | |||||||
| Investment income | 4 | 346,437 | - | 346,437 | |||||||
| Total income | 584,085 | 58,017 | 642,102 | ||||||||
| Expenditure on: | |||||||||||
| Raising funds | 5 | - | (58,017) | (58,017) | |||||||
| Charitable activities | 6 | (519,813) | - | (519,813) | |||||||
| Total expenditure | (519,813) | (58,017) | (577,830) | ||||||||
| Net income | 64,272 | - | 64,272 | ||||||||
| Net movement in funds | 64,272 | - | 64,272 | ||||||||
| Reconciliation of funds | |||||||||||
| Total funds brought forward | 10,181,907 | - | 10,181,907 | ||||||||
| Total funds carried forward | 21 | 10,246,179 | - | 10,246,179 |
All of the charity's activities derive from continuing operations during the above two periods.
The notes on pages 14 to 28 form an integral part of these financial statements. Page 10
Scalabrini Fathers Company
Statement of Financial Activities for the Year Ended 31 December 2023 (Including Income and Expenditure Account and Statement of Total Recognised Gains and Losses)
The funds breakdown for 2022 is shown in note 21.
The notes on pages 14 to 28 form an integral part of these financial statements. Page 11
Scalabrini Fathers Company
(Registration number: 07454427) Balance Sheet as at 31 December 2023
| 2023 | 2022 | |||
|---|---|---|---|---|
| Note | £ | £ | ||
| Fixed assets | ||||
| Tangible assets | 13 | 979,811 | 511,714 | |
| Investments | 14 | 10,281,361 | 8,766,739 | |
| 11,261,172 | 9,278,453 | |||
| Current assets | ||||
| Debtors | 15 | 27,629 | 22,880 | |
| Cash at bank and in hand | 16 | 2,516,613 | 974,949 | |
| 2,544,242 | 997,829 | |||
| Creditors: Amounts falling due within one year | 17 | (45,101) | (30,103) | |
| Net current assets | 2,499,141 | 967,726 | ||
| Net assets | 13,760,313 | 10,246,179 | ||
| Funds of the charity: | ||||
| Restricted income funds | ||||
| Restricted funds | 1,184,638 | - | ||
| Total unrestricted funds | 12,575,675 | 10,246,179 | ||
| Total funds | 21 | 13,760,313 | 10,246,179 |
The financial statements on pages 10 to 28 were approved by the trustees, and authorised for issue on 5 December 2024 and signed on their behalf by:
.........................................
Father Francesco Buttazzo CS Trustee
The notes on pages 14 to 28 form an integral part of these financial statements. Page 12
Scalabrini Fathers Company
Statement of Cash Flows for the Year Ended 31 December 2023
| 2023 | 2022 | |||
|---|---|---|---|---|
| Note | £ | £ | ||
| Cash flows from operating activities | ||||
| Net cash income | 3,514,134 | 64,272 | ||
| Adjustments to cash flows from non-cash items | ||||
| Depreciation | 5 | 21,444 | 13,048 | |
| Investment income | 4 | (377,418) | (346,437) | |
| Revaluation of investments | (1,188,261) | - | ||
| 1,969,899 | (269,117) | |||
| Working capital adjustments | ||||
| Increase in debtors | 15 | (4,749) | (12,737) | |
| Increase/(decrease) in creditors | 17 | 8,548 | (942) | |
| Increase in deferred income | 6,450 | - | ||
| Net cash flows from operating activities | 1,980,148 | (282,796) | ||
| Cash flows from investing activities | ||||
| Interest receivable and similar income | 4 | 377,418 | 346,437 | |
| Purchase of tangible fixed assets | 13 | (489,541) | (219,726) | |
| Purchase of investments | 14 | (326,361) | - | |
| Net cash flows from investing activities | (438,484) | 126,711 | ||
| Net increase/(decrease) in cash and cash equivalents | 1,541,664 | (156,085) | ||
| Cash and cash equivalents at 1 January | 974,949 | 1,131,034 | ||
| Cash and cash equivalents at 31 December | 2,516,613 | 974,949 |
All of the cash flows are derived from continuing operations during the above two periods.
The notes on pages 14 to 28 form an integral part of these financial statements. Page 13
Scalabrini Fathers Company
Notes to the Financial Statements for the Year Ended 31 December 2023
1 Charity status
The charity is limited by guarantee, incorporated in England, and consequently does not have share capital. Each of the trustees is liable to contribute an amount not exceeding £1 towards the assets of the charity in the event of liquidation.
The address of its registered office is: 20 Brixton Road London SW9 6BU
These financial statements were authorised for issue by the trustees on 5 December 2024.
2 Accounting policies
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
The financial statements have been prepared 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)) (issued in October 2019) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
Basis of preparation
Scalabrini Fathers Company meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes.
Going concern
The trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern nor any significant areas of uncertainty that affect the carrying value of assets held by the charity.
Income and endowments
All income is recognised once the charity has entitlement to the income, it is probable that the income will be received and the amount of the income receivable can be measured reliably.
Donations and legacies
Donations are recognised when the charity has been notified in writing of both the amount and settlement date. In the event that a donation is subject to conditions that require a level of performance by the charity before the charity is entitled to the funds, the income is deferred and not recognised until either those conditions are fully met, or the fulfilment of those conditions is wholly within the control of the charity and it is probable that these conditions will be fulfilled in the reporting period.
Page 14
Scalabrini Fathers Company
Notes to the Financial Statements for the Year Ended 31 December 2023
Deferred income
Deferred income represents amounts received for future periods and is released to incoming resources in the period for which, it has been received. Such income is only deferred when:
- The donor specifies that the grant or donation must only be used in future accounting periods; or - The donor has imposed conditions which must be met before the charity has unconditional entitlement.
Investment income
Dividends are recognised once the dividend has been declared and notification has been received of the dividend due.
Expenditure
All expenditure is recognised once there is a legal or constructive obligation to that expenditure, it is probable settlement is required and the amount can be measured reliably. All costs are allocated to the applicable expenditure heading that aggregate similar costs to that category. Where costs cannot be directly attributed to particular headings they have been allocated on a basis consistent with the use of resources, with central staff costs allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use. Other support costs are allocated based on the spread of staff costs.
Raising funds
These are costs incurred in attracting voluntary income, the management of investments and those incurred in trading activities that raise funds.
Charitable activities
Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.
Governance costs
These include the costs attributable to the charity’s compliance with constitutional and statutory requirements, including audit, strategic management and trustees meetings and reimbursed expenses.
Taxation
The charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.
Tangible fixed assets
Individual fixed assets costing £500.00 or more are initially recorded at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
Depreciation and amortisation
Depreciation is provided on tangible fixed assets so as to write off the cost or valuation, less any estimated residual value, over their expected useful economic life as follows:
Page 15
Scalabrini Fathers Company
Notes to the Financial Statements for the Year Ended 31 December 2023
Asset class Depreciation method and rate Motor vehicle 25% reducing balance basis Fixtures and fittings 25% straight line basis Office equipment 25% straight line basis Freehold buildings Straight line over 50 years
Impairment of fixed assets
Assets are regularly reviewed for any impairment and adjustments required to the value is made.
Investment properties
Investment property is carried at fair value, derived from the current market prices for comparable real estate determined annually by either the directors or external valuers. The valuers use observable market prices and the Investment method as their valaution method, adjusted if necessary for any difference in the nature, location or condition of the specific asset. Changes in fair value are recognised in profit or loss.
Trade debtors
Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.
Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the charity will not be able to collect all amounts due according to the original terms of the receivables.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Trade creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the charity does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.
Fund structure
Unrestricted income funds are general funds that are available for use at the trustees discretion in furtherance of the objectives of the charity.
Restricted income funds are those donated for use in a particular area or for specific purposes, the use of which is restricted to that area or purpose.
Page 16
Scalabrini Fathers Company
Notes to the Financial Statements for the Year Ended 31 December 2023
Pensions and other post retirement obligations
The charity operates a defined contribution pension scheme which is a pension plan under which fixed contributions are paid into a pension fund and the charity has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised in the Statement of Financial Activities when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
3 Income from donations and legacies
| Unrestricted | |||||||
|---|---|---|---|---|---|---|---|
| funds | Restricted | Total | Total | ||||
| General | funds | 2023 | 2022 | ||||
| £ | £ | £ | £ | ||||
| Donations and legacies; | |||||||
| Donations and gifts | 393,729 | 2,000,000 | 2,393,729 | 237,648 | |||
| Collections and pilgrimages | - | 43,954 | 43,954 | 58,017 | |||
| 393,729 | 2,043,954 | 2,437,683 | 295,665 |
Page 17
Scalabrini Fathers Company
Notes to the Financial Statements for the Year Ended 31 December 2023
4 Investment income
| Unrestricted | |||||
|---|---|---|---|---|---|
| funds | Total | Total | |||
| General | 2023 | 2022 | |||
| £ | £ | £ | |||
| Interest receivable and similar income; | |||||
| Interest receivable on bank deposits | 515 | 515 | 447 | ||
| Hospitality income | 139,843 | 139,843 | 127,405 | ||
| Income from rents | 237,060 | 237,060 | 218,585 | ||
| 377,418 | 377,418 | 346,437 |
5 Expenditure on raising funds
| Restricted | Total | Total | |||||
|---|---|---|---|---|---|---|---|
| funds | 2023 | 2022 | |||||
| Note | £ | £ | £ | ||||
| Collections paid over | 43,414 | 43,414 | 58,017 | ||||
| 43,414 | 43,414 | 58,017 | |||||
| **a) ** | Investment management costs | ||||||
| Unrestricted | |||||||
| funds | Total | ||||||
| General | funds | ||||||
| Note | £ | £ | |||||
| Property management fees | 42,083 | 42,083 | |||||
| Total for 2023 | 42,083 | 42,083 | |||||
| 6 | Expenditure on charitable activities | ||||||
| Unrestricted | |||||||
| funds | Total | Total | |||||
| General | 2023 | 2022 | |||||
| Note | £ | £ | £ | ||||
| Relgious and hospitality costs | 313,159 | 313,159 | 400,843 | ||||
| Grants to province | - | - | 30,000 | ||||
| Staff costs | 47,764 | 47,764 | 47,706 | ||||
| Governance costs | 7 | 42,808 | 42,808 | 41,264 | |||
| 403,731 | 403,731 | 519,813 |
Page 18
Scalabrini Fathers Company
Notes to the Financial Statements for the Year Ended 31 December 2023
In addition to the expenditure analysed above, there are also governance costs of £42,808 (2022 - £41,264) which relate directly to charitable activities. See note 7 for further details.
7 Analysis of governance and support costs
Governance costs
| Unrestricted | |||||
|---|---|---|---|---|---|
| funds | Total | Total | |||
| General | 2023 | 2022 | |||
| £ | £ | £ | |||
| Audit fees | |||||
| Audit of the financial statements | 8,400 | 8,400 | 6,300 | ||
| Other fees paid to auditors | 1,195 | 1,195 | 930 | ||
| Legal fees | 11,769 | 11,769 | 29,639 | ||
| Depreciation, amortisation and other similar costs | 21,444 | 21,444 | 4,395 | ||
| 42,808 | 42,808 | 41,264 |
8 Net incoming/outgoing resources
Net incoming resources for the year include:
| Net incoming resources for the year include: | |||
|---|---|---|---|
| 2023 | 2022 | ||
| £ | £ | ||
| Audit fees | 8,400 | 6,300 | |
| Other non-audit services | 1,195 | 930 | |
| Depreciation of fixed assets | 21,444 | 4,395 |
9 Trustees remuneration and expenses
No trustees, nor any persons connected with them, have received any remuneration from the charity during the year.
No trustees have received any reimbursed expenses or any other benefits from the charity during the year.
Page 19
Scalabrini Fathers Company
Notes to the Financial Statements for the Year Ended 31 December 2023
10 Staff costs
The aggregate payroll costs were as follows:
| The aggregate payroll costs were as follows: | |||
|---|---|---|---|
| 2023 | 2022 | ||
| £ | £ | ||
| Staff costs during the year were: | |||
| Wages and salaries | 46,788 | 46,730 | |
| Pension costs | 976 | 976 | |
| 47,764 | 47,706 |
The monthly average number of persons (including senior management / leadership team) employed by the charity during the year expressed as full time equivalents was as follows:
| charity during the year expressed as full time equivalents was as follows: | ||
|---|---|---|
| 2023 | 2022 | |
| No | No | |
| Community | 2 | 2 |
| Trustees | 7 | 7 |
| 9 | 9 |
2 (2022 - 2) of the above employees participated in the Defined Contribution Pension Schemes.
No employee received emoluments of more than £60,000 during the year.
11 Auditors' remuneration
| 11 Auditors' remuneration | |||
|---|---|---|---|
| 2023 | 2022 | ||
| £ | £ | ||
| Audit of the financial statements | 8,400 | 6,300 | |
| Other fees to auditors | |||
| All other non-audit services | 1,195 | 930 |
Page 20
Scalabrini Fathers Company
Notes to the Financial Statements for the Year Ended 31 December 2023
12 Taxation
The charity is a registered charity and is therefore exempt from taxation.
13 Tangible fixed assets
| 13 Tangible fixed assets | ||||||
|---|---|---|---|---|---|---|
| Land and | Furniture and | |||||
| buildings | equipment | Motor vehicles | Total | |||
| £ | £ | £ | £ | |||
| Cost | ||||||
| At 1 January 2023 | 569,453 | 72,550 | 20,637 | 662,640 | ||
| Additions | 489,541 | - | - | 489,541 | ||
| At 31 December 2023 | 1,058,994 | 72,550 | 20,637 | 1,152,181 | ||
| Depreciation | ||||||
| At 1 January 2023 | 64,279 | 72,550 | 14,097 | 150,926 | ||
| Charge for the year | 19,809 | - | 1,635 | 21,444 | ||
| At 31 December 2023 | 84,088 | 72,550 | 15,732 | 172,370 | ||
| Net book value | ||||||
| At 31 December 2023 | 974,906 | - | 4,905 | 979,811 | ||
| At 31 December 2022 | 505,174 | - | 6,540 | 511,714 |
Page 21
Scalabrini Fathers Company
Notes to the Financial Statements for the Year Ended 31 December 2023
| 14 Fixed asset investments 2023 £ Investment properties 10,281,361 Investment properties Cost or Valuation At 1 January 2023 Revaluation Additions At 31 December 2023 Provision At 31 December 2023 Net book value At 31 December 2023 At 31 December 2022 |
2022 £ 8,766,739 Investment properties £ 8,766,739 1,188,261 326,361 10,281,361 - 10,281,361 8,766,739 |
|---|---|
During the year an external valuer has undertaken a valuation of all investment properties.
The methods used were a combination of observable market comparables and the Investment method of valuation. The total valuation of these properties per the report is £9,955,000 (2022: £8,766,739).
Since this valuation was undertaken, one of the properties has started having development works totalling £326,361 in the year.
The Trustees consider this to be fair market valuation.
This class of asset has a carrying amount at historical cost of £3,335,378 (2022: £3,009,017).
No depreciation is provided in respect of investment properties.
All investment assets were held in the UK.
Page 22
Scalabrini Fathers Company
Notes to the Financial Statements for the Year Ended 31 December 2023
15 Debtors
| 15 Debtors | |||
|---|---|---|---|
| 2023 | 2022 | ||
| £ | £ | ||
| Trade debtors | 1,667 | 1,597 | |
| Prepayments | 7,661 | 6,915 | |
| Other debtors | 18,301 | 14,368 | |
| 27,629 | 22,880 | ||
| 16 Cash and cash equivalents | |||
| 2023 | 2022 | ||
| £ | £ | ||
| Cash on hand | 7,802 | 2,371 | |
| Cash at bank | 2,508,811 | 972,578 | |
| 2,516,613 | 974,949 | ||
| 17 Creditors: amounts falling due within one year | |||
| 2023 | 2022 | ||
| £ | £ | ||
| Trade creditors | 2,488 | - | |
| Other taxation and social security | 1,102 | 1,084 | |
| Other creditors | 27,561 | 22,419 | |
| Accruals | 7,500 | 6,600 | |
| Deferred income | 6,450 | - | |
| 45,101 | 30,103 |
Page 23
Scalabrini Fathers Company
Notes to the Financial Statements for the Year Ended 31 December 2023
18 Pension and other schemes
Defined contribution pension scheme
The charity operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the charity to the scheme and amounted to £976 (2022 - £976).
19 Reserves
| 19 Reserves | |||
|---|---|---|---|
| Other reserve | Total | ||
| £ | £ | ||
| At 1 January 2023 | 5,757,722 | 5,757,722 | |
| Surplus on property revaluation | 1,188,261 | 1,188,261 | |
| At 31 December 2023 | 6,945,983 | 6,945,983 | |
| Other reserve | Total | ||
| £ | £ | ||
| At 1 January 2022 | 5,757,722 | 5,757,722 |
20 Commitments
Capital commitments
The total amount contracted for but not provided in the financial statements was £6,991 (2022 - £3,132).
Page 24
Scalabrini Fathers Company
Notes to the Financial Statements for the Year Ended 31 December 2023
21 Funds
| 21 Funds | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Balance at | 1 | Other | ||||||||||
| January | Incoming | Resources | recognised | |||||||||
| 2023 | resources | expended | Transfers | gains/(losses) | ||||||||
| £ | £ | £ | £ | £ | ||||||||
| Unrestricted funds | ||||||||||||
| General fund | 4,488,457 | 771,147 | (445,814) | 815,902 | - | |||||||
| Other | ||||||||||||
| Revaluation reserve | 5,757,722 | - | - | - | 1,188,261 | |||||||
| 5,757,722 | - | - | - | 1,188,261 | ||||||||
| Total unrestricted funds | 10,246,179 | 771,147 | (445,814) | 815,902 | 1,188,261 | |||||||
| Restricted funds | ||||||||||||
| Collection fund | - | 5,481 | (4,941) | - | - | |||||||
| Passport services | - | 38,473 | (38,473) | - | - | |||||||
| Development works | - | 2,000,000 | - | (815,902) | - | |||||||
| - | 2,043,954 | (43,414) | (815,902) | - | ||||||||
| Total funds | 10,246,179 | 2,815,101 | (489,228) | - | 1,188,261 | |||||||
| Balance at 31 | ||||||||||||
| December | ||||||||||||
| 2023 | ||||||||||||
| £ | ||||||||||||
| Unrestricted funds | ||||||||||||
| General fund | 5,629,692 | |||||||||||
| Other | ||||||||||||
| Revaluation reserve | 6,945,983 | |||||||||||
| 6,945,983 | ||||||||||||
| Total unrestricted funds | 12,575,675 | |||||||||||
| Restricted funds | ||||||||||||
| Collection fund | 540 | |||||||||||
| Passport services | - | |||||||||||
| Development works | 1,184,098 | |||||||||||
| 1,184,638 | ||||||||||||
| Total funds | 13,760,313 |
Page 25
Scalabrini Fathers Company
Notes to the Financial Statements for the Year Ended 31 December 2023
| Balance at 31 | |||||||
|---|---|---|---|---|---|---|---|
| Balance at 1 | Incoming | Resources | December | ||||
| January 2022 | resources | expended | 2022 | ||||
| £ | £ | £ | £ | ||||
| Unrestricted funds | |||||||
| General fund | 4,424,185 | 584,085 | (519,813) | 4,488,457 | |||
| Other | |||||||
| Revaluation reserve | 5,757,722 | - | - | 5,757,722 | |||
| 5,757,722 | - | - | 5,757,722 | ||||
| Total unrestricted funds | 10,181,907 | 584,085 | (519,813) | 10,246,179 | |||
| Restricted funds | |||||||
| Collection fund | - | 1,506 | (1,506) | - | |||
| Passport services | - | 56,511 | (56,511) | - | |||
| - | 58,017 | (58,017) | - | ||||
| Total funds | 10,181,907 | 642,102 | (577,830) | 10,246,179 |
The specific purposes for which the funds are to be applied are as follows:
The Restricted income is made up of Collection fund, Passport services and Development works.
The Collecton fund represents those second collections made on certain occasions at the various parishes which are for specific charitable causes and are passed on by the charity.
The Passport services are where the charity provided assistance to the Italian Authorities to meet those who needed to renew their passports. The money was collected from these people and passed onto the Italian Consulate.
The Development funds represents a donations received toward the development project at 22-24 Brixton Road. The donation was received in the year and the project was commenced however the work continues into 2024 and the remaining balance will be used against this.
The purpose of the transfers were:
Restricted funds- This transfer relates to a restricted fund donation which was received for the purpose of the development works which has been capitalised in the year. The donation received was restricted for this purpose but the property being developed ia to be used for general charity use.
Page 26
Scalabrini Fathers Company
Notes to the Financial Statements for the Year Ended 31 December 2023
22 Analysis of net funds
| 22 Analysis of net funds | |||||
|---|---|---|---|---|---|
| At 31 | |||||
| At 1 January | Financing cash | December | |||
| 2023 | flows | 2023 | |||
| £ | £ | £ | |||
| Cash at bank and in hand | 974,949 | 1,541,664 | 2,516,613 | ||
| Net debt | 974,949 | 1,541,664 | 2,516,613 | ||
| At 31 | |||||
| At 1 January | Financing cash | December | |||
| 2022 | flows | 2022 | |||
| £ | £ | £ | |||
| Cash at bank and in hand | 1,131,034 | (156,085) | 974,949 | ||
| Net debt | 1,131,034 | (156,085) | 974,949 |
Page 27
Scalabrini Fathers Company
Notes to the Financial Statements for the Year Ended 31 December 2023
23 Related party transactions
During the year the charity made the following related party transactions:
Villa Scalabrini
(Villa Scalabrini is a regisitered chairty under the Charity Commission reference 1102881, who has common trustees.)
Donations totalling £36,000 (2022: £36,000) was received in the year from Villa Scalabrini . At the balance sheet date the amount due to/from Villa Scalabrini was £Nil (2022 - £Nil).
Scalabrini Verein
(A connected charity)
A donation in the year of £2 million was received in the year from the above charity. . At the balance sheet date the amount due to/from Scalabrini Verein was £Nil (2022 - £Nil).
There were no further related party transactions in the year.
24 Analysis of net assets between funds
| 24 Analysis of net assets between funds | |||||||
|---|---|---|---|---|---|---|---|
| Unrestricted | Total funds at | ||||||
| funds | Restricted | 31 December | |||||
| General | funds | 2023 | |||||
| £ | £ | £ | |||||
| Tangible fixed assets | 979,811 | - | 979,811 | ||||
| Fixed asset investments | 10,281,361 | - | 10,281,361 | ||||
| Current assets | 1,359,604 | 1,184,638 | 2,544,242 | ||||
| Current liabilities | (45,101) | - | (45,101) | ||||
| Total net assets | 12,575,675 | 1,184,638 | 13,760,313 | ||||
| Unrestricted | Total funds at | ||||||
| funds | 31 December | ||||||
| General | 2022 | ||||||
| £ | £ | ||||||
| Tangible fixed assets | 511,714 | 511,714 | |||||
| Fixed asset investments | 8,766,739 | 8,766,739 | |||||
| Current assets | 997,829 | 997,829 | |||||
| Current liabilities | (30,103) | (30,103) | |||||
| Total net assets | 10,246,179 | 10,246,179 |
Page 28