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2022-06-30-accounts

Brothers of the Sacred Heart

Annual Report and Financial Statements

30 June 2022

Charity Registration Number 1146264 Company Registration Number 07897531 (England and Wales)

Contents

Reports
Reference and administrative information 1
Trustees’ report 2
Independent auditor’s statement 14
Financial statements
Statement of financial activities 19
Balance sheet 20
Statement of cash flows 21
Principal accounting policies 22
Notes to the financial statements 28

Brothers of the Sacred Heart

Reference and administrative information

Trustees Brother Ronald Hingle SC
Brother Joseph Holthaus SC
Brother Clifford King SC
Brother Barry Landry SC
Brother Ivy Leblanc SC
Registered address Brothers of the Sacred Heart
Watling House
8 King Harry Lane
St Albans
Herts
AL3 4AW
Address of the Brothers of the Sacred Provincial Office
Heart (US Province) 4600 Elysian Fields Avenue
New Orleans
LA 70122
USA
Charity registration number 1146264
Company registration number 07897531 (England and Wales)
Auditor Buzzacott LLP
130 Wood Street
London
EC2V 6DL
Bankers Barclays Bank PLC
1 Churchill Place
London
E14 5HP
Investment managers Sarasin & Partners LLP
Juxon House
100 St Paul’s Churchyard
London
EC4M 8BU
Solicitors Stone King LLP
Upper Borough Court
Upper Borough Walls
Bath
BA1 1RG

Brothers of the Sacred Heart 1

Trustees’ report Year to 30 June 2022

The trustees present their annual report together with the financial statements of the Brothers of the Sacred Heart (“the charitable company”) for the year ended 30 June 2022.

The financial statements have been prepared in accordance with the accounting policies set out on pages 22 to 27 of the attached financial statements and comply with the charitable company’s Memorandum and 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 in the United Kingdom and Republic of Ireland (FRS 102).

Introduction

The Brothers of the Sacred Heart is an international Roman Catholic Congregation founded in 1821 by Reverend Andre Coindre with the fundamental mission of educating the young. Today, the Congregation has just under 1,000 members spread across 30 countries. The activities of the Brothers in England and Wales are administered and accounted for through a charitable company established in 2012. The company, which is limited by guarantee, is registered with the Charity Commission, Charity Registration Number 1146264. As there is no British province of the Congregation, the members and trustees of the charitable company are the members of the Congregation’s US Provincial Council.

The charitable company’s objectives include the support of members of the Congregation in England, enabling such members to continue their individual ministry; providing support for Catholic education at St Columba’s College and Preparatory School (the College), St Albans; supporting Catholic education in Africa, the Philippines and elsewhere in the developing world, through the provision of grants to the Congregation; and the caring for elderly members of the Congregation who are retired in England and the United States of America.

The members of the charitable company are members of the US Provincial Council of the Brothers of the Sacred Heart. At the elections to the US Provincial Council in October 2018, Brother Ronald Hingle SC, already a member and director/trustee of the charitable company, was elected Provincial. Co-opted trustees may also be appointed by the serving trustees for a term of office ending at the next Annual General Meeting. The trustees direct and manage the affairs of the charitable company. The meetings of trustees are chaired by Brother Ronald Hingle SC. Brother Ivy Leblanc SC takes primary responsibility for the financial affairs of the charitable company. They are supported by a Corporate Services consultant and an Accountant, engaged on contracts for services. The charitable company has no employees.

Constitution

The Brothers of the Sacred Heart is an incorporated charitable company constituted as a company limited by guarantee, Charity Registration Number 1146264 and Company Registration Number 07897531 (England and Wales). The charitable company was incorporated on 4 January 2012.

Brothers of the Sacred Heart 2

Trustees’ report Year to 30 June 2022

Relationships with Other Charities

Since 1955 the Brothers of the Sacred Heart have had a charitable foundation governed by a Trust Deed, which in 1996 was constituted as an incorporated body under the Charities Act 1993 (Charity Registration Number 231733). In April 2012 the charitable company resolved that, subject to the consent of the Charity Commission, the assets and functions of the charitable trust should be transferred to this charitable company and that this should be executed as a deed. The charitable trust was closed and removed from the Charity Commission register on 28 February 2013.

Upon transfer of the assets and functions, the charitable company has amongst other things participated in the church appeals programme of the Catholic Missionary Union of England and Wales (Charity Registration Number 1082975) to raise funds for the African missions and missions in the developing world of the Brothers of the Sacred Heart. Following the guidance of the Diocese of Westminster, stipulating that parish mission appeals be undertaken on a one-off basis only, the charitable company no longer participates in this appeals programme, with effect from 1 August 2014.

Since 1955 the Brothers of the Sacred Heart have conducted St Columba’s College and Preparatory School (Charity Registration Number 1088480) as a Roman Catholic school in St Albans, Hertfordshire. The Provincial of the US Province appoints an Executive Assistant who serves as Dean of St Columba’s College and as a trustee of the St Columba’s College and Preparatory School charitable company. One of his major roles is to effect good communication of all College activities and development to the members of the Provincial Council. The Dean in post on 1 July 2020, Brother Daniel St Jacques SC, is not a member of the US Provincial Council, but was a Trustee of the charitable company until 23 March 2017 and was a trustee of ZAMCOG (Charity Registration Number 1136086) until 14 November 2018, which has been a recipient of the charitable company's funds in previous years. Brother Joseph Holthaus SC replaced Brother Daniel St Jacques as Dean with effect from 2 November 2020.

In April 2012 the charitable company executed as a deed with the charitable trust, and signed by the Provincial, a Trust Deed to transfer part of the charitable trust's funds to the charitable company to establish The Coindre Bursary Trust, an education fund held in investments with Sarasin & Partners LLP, for the purpose of providing means-tested bursaries and other forms of financial support in benefit of St Columba's College and Preparatory School. The Charity Commission recognised The Coindre Bursary Trust as a registered charity linked by a Uniting Direction with the charitable company on 28 June 2012. The transfer of assets took place on 31 July 2012.

The financial statements accompanying this report are the financial statements of the charitable company, Brothers of the Sacred Heart, 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 (the reporting charity) and The Coindre Bursary Trust (the linked charity). In accordance with the Uniting Direction, the funds of the The Coindre Bursary Trust are treated as restricted funds in the accounts of the charitable company.

Brothers of the Sacred Heart 3

Trustees’ report Year to 30 June 2022

Objectives, activities and relevant policies

Objectives and activities

The charitable company’s objects are to advance for the public benefit such charitable purposes connected to the Roman Catholic religion as the trustees shall from time to time think fit. These may take place in England and Wales or in other countries where the Brothers of the Sacred Heart are established. Consideration has been given to the Charity Commission guidance on public benefit.

The charitable company’s objectives include:

Protection of Children and Vulnerable Adults

Like all other organisations who serve in the Congregation, the trustees recognise the absolute necessity of ensuring the protection and safety of all those the charitable company serves in any way. This means that members engaged in any ministry in England must obtain clearance from the Disclosure and Barring Service (DBS). The trustees are fully committed to implementing all policies and procedures of the Catholic Safeguarding Standards Agency (CSSA). In February 2022 the charity registered with the Religious Life Safeguarding Service (RLSS) and signed a contract to receive the safeguarding services of Religious Life Safeguarding Services Limited, including training, advice and support.

Investment policy

The charitable company has a portfolio of listed investments which together with cash awaiting investment had a market value as at 30 June 2022 of £3,420,816 (2021 – £3,454,039).

Brothers of the Sacred Heart 4

Trustees’ report Year to 30 June 2022

Objectives, activities and relevant policies (continued)

Investment policy (continued)

There are no restrictions on the charitable company’s power to invest. The investment strategy is set by the trustees and takes into account income requirements, the risk profile and the investment manager’s view of the market prospects in the medium term; the trustees have agreed a detailed investment policy that includes ethical guidelines with the investment managers which they take into account in their choice of securities. According to the ethical policy, the trustees will not invest in companies which engage in activities which are contrary to the moral and social teaching of the Roman Catholic church, in so far as this can be practically established. The overall investment policy is to maximise total return through a diversified portfolio, prioritising total return and portfolio growth over the provision of a pre-determined level of income.

Investments are held for the continuing support and retirement needs of the brothers and for future provision of bursaries at St Columba's College. Investments are acquired in accordance with the investment policies document contained within the charitable company's administrative document. The policies are reviewed bi-annually. The charitable company's primary investment objective is to match or exceed the portfolio benchmark established for the Continuing Community Support Fund and the Coindre Bursary Trust.

Other aspects of the investment policies include:

The performance of the portfolio and the charitable company’s investment strategy are reviewed by the trustees whose representatives meet with the investment managers regularly.

Achievements and performance

Review of activities

During the year the charity continued to support the activities of the brothers as stated in the objectives above.

The charitable company used its funds to meet its objectives as follows.

Brothers of the Sacred Heart 5

Trustees’ report Year to 30 June 2022

Achievements and performance (continued)

Review of activities (continued)

Covid-19

The Covid-19 pandemic continued to impact the shape and nature of the world for part of the year to June 2022. It impacted not only the basic nature of social interactions but also had a significant economic impact at every level in ways which have been outside of the charitable company’s control.

The Brothers resident in England, who are all at least 70 years of age, had to continue to adhere to the government’s advice.

In the short term, the adverse conditions have been successfully navigated. The trustees will continue to keep both income and expenditure under review but do not anticipate that the impact on the charitable company’ finances will be material or impact on the charitable company’s going concern.

Raising funds

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 communications 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 fundraising activities and does not employ the services of professional fundraisers. The charitable company undertakes to react to and investigate any complaints regarding its fundraising activities and to learn from them and improve its service. During the year, the charitable company received no complaints about its fundraising activities.

Brothers of the Sacred Heart 6

Trustees’ report Year to 30 June 2022

Financial report for the year

Results for the year

A summary of the results for the year can be found on page 19 of the attached financial statements.

Total income for the year amounted to £406,278 compared to £404,641 in 2021.

Expenditure amounted to £288,195 compared to £320,276 in 2021. the costs in relation to supporting members of the Province and their ministry were £120,024 (2021 - £153,191). Donations given were £168,662 (2021 - £166,277). Further details of donations given are included in note 6 to the financial statements and above.

The net income for the year before investment gains was £118,083 (2021 - £84,365). The net investment losses totalled £272,253 (2021 gains - £344,704) and exchange gains on cash held by investment managers were £608 (2021 - £115). When these net losses (2021 - gains) are accounted for, the overall impact on the charitable company’s funds is a decrease of £153,562 (2021- increase of £429,184) for the year.

Investment performance

During the year to 30 June 2022, the charitable company’s listed investments produced an income yield of 2.65% (2021 – 3.24%) and a negative capital yield of 7.8% (2021 – positive capital yield of 11.52%).

Reserves policy and financial position

Reserves policy

As explained above, the charitable company carries out a diverse range of activities, some of which comprise short term and externally funded projects whilst others comprise long term projects requiring significant ongoing financial commitment and investment. The trustees have examined the requirement for free reserves i.e. those unrestricted funds not invested in tangible fixed assets and programme related investments, designated for specific purposes or otherwise committed. The trustees consider that, given the nature of the charitable company’s work, the level of free reserves should be equivalent to 36 months’ expenditure. The trustees are of the opinion that this reflects the charitable company’s reliance on investments to generate investment income to fund recurring expenditure, and the continued performance of St Columba’s College and Preparatory School, from which the charitable company receives most of its income. The policy also provides sufficient flexibility to cover temporary shortfalls in income due to timing differences in income flows, adequate working capital to cover core costs, and will allow the charitable company to cope in the aftermath to Covid-19 and the current macroeconomic and geopolitical climate and respond to other unforeseen emergencies whilst specific action plans are implemented. The brothers in England receive minimal stipends for their work. The reserves also maintain the cost of sustaining the brothers' residence in England.

Brothers of the Sacred Heart 7

Trustees’ report Year to 30 June 2022

Financial report for the year (continued)

Reserves policy and financial position (continued)

Financial position (continued)

The balance sheet shows total funds £5,222,253 (2021 – £5,375,815).

These funds include restricted funds of £761,466 (2021 - £847,416). £760,583 (2021 - £846,866) in respect to the linked charity, The Coindre Bursary Trust. These funds are represented by The Coindre Bursary Trust’s investment portfolio, intended for future provision of bursaries at St Columba's College. Further details of restricted funds are given in note 18 to the financial statements.

The tangible fixed assets fund equal to the net book value of the tangible fixed assets and amounting to £1,456,279 (2021 – £1,486,449) has been identified as a separate fund in recognition of the fact that such assets are required to enable the Congregation to carry out its charitable work and are not available to fund activities or meet future commitments. The programme related investment fund equal to the cost of the property used by St Columba’s College and Preparatory School amounted to £215,853 (2021 – £215,853).

An amount of £1,800,000 (2021 – £1,800,000) has been designated to meet the costs of the care and welfare of members of the Province as they grow old or frail. The amount of funds set aside has been calculated using actuarial principles and will provide only modest amounts in the future. The reserves are set aside for the continuing support of the brothers in St Albans and for the needs of retired brothers both in England and the United States. It is estimated that the funds must help support elderly brothers for the next 25 years, particularly taking account of the risk to an ageing membership of suffering from Covid-19.

£66,633 represents the balance of £250,000 designated in 2020 towards the cost of future property maintenance and repairs.

Further details of the purposes of the designated funds and an analysis of the movements on the funds are set out in the notes to the financial statements.

General funds or ‘free reserves’ of the charitable company at 30 June 2022 total £922,022 (2021 – £959,464).

The trustees consider that this level of free reserves is in accordance with the charitable company’s reserves policy stated above. The trustees are of this opinion given the volatility in world stock markets at the present time due to the political and economic uncertainties. They also accept that in the years ahead, members of the Province may require increasing and increasingly expensive health care, and that the designated retirement fund of £1,800,000 described above may prove to be inadequate and it is the intention of the trustees to increase the fund over time.

Brothers of the Sacred Heart 8

Trustees’ report Year to 30 June 2022

Future plans

The trustees plan that the work of the charitable company will continue without any significant change in the short term.

It is the intention of the trustees of the charity to continue to respond to the needs of the times and fulfil public benefit and to meet the objectives of caring for members of the Congregation and to support the charitable work of the brothers for the foreseeable future.

Some specific plans of the charitable company are as follows:

Governance, Structure and Management

Governance

In terms of civil law, the charitable company is constituted as a company limited by guarantee (Company Registration No. 07897531 (England and Wales)) and is a charitable company registered for charitable purposes with the Charity Commission (Charity Registration No. 1146264).

Trustees

The names of the trustees who served during the year are set out as part of the reference and administrative information details on page 1 of this annual report and financial statements.

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

Trustees

Brother Ronald Hingle SC Brother Clifford King SC Brother Joseph Holthaus SC Brother Barry Landry SC Brother Ivy Leblanc SC

Brothers of the Sacred Heart 9

Trustees’ report Year to 30 June 2022

Governance, Structure and Management (continued)

Trustees (continued)

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 brothers 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 four times a year to review developments with regard to the charitable company or its activities and 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 Province and to lay consultants and advisers as necessary.

Trustees receive induction from their professional advisers at the time of their appointment, in particular on company and charity law and trustees' duties, utilising in particular guidance provided by the Charity Commission for England and Wales. Trustees are kept updated with changes in relevant regulations and guidance by their professional advisers, they attend the annual Catholic Charity Conference, and receive regular communications from the Conference of Religious in England and Wales, the Diocese of Westminster, and from their professional advisers.

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, with the support of their professional advisers, comprise the key management personnel of the charitable company in charge of directing and controlling, running and operating the charitable company on a day-to-day basis.

All trustees are members of the Congregation and they receive no remuneration or reimbursement of expenses in connection with their duties as trustees or their work as key management.

Statement of trustees’ responsibilities

The trustees (who are also directors of the Brothers of the Sacred Heart 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).

Brothers of the Sacred Heart 10

Trustees’ report Year to 30 June 2022

Governance, Structure and Management (continued)

Statement of trustees’ responsibilities (continued)

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.

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 s418 of the Companies Act 2006.

Public benefit

In formulating the charitable company’s aims and in planning the work of members of the Congregation, the trustees have had regard to the general guidance published by the Charity Commission on public benefit.

Brothers of the Sacred Heart 11

Trustees’ report Year to 30 June 2022

Governance, Structure and Management (continued)

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. The continuing Covid-19 pandemic has clearly given rise to challenges and threats to the well-being of the charitable company and its activities which could not have been foreseen.

The key risks for the charitable company, as identified by the trustees, are described below together with the principal ways in which they are mitigated:

Brothers of the Sacred Heart 12

Trustees’ report Year to 30 June 2022

Governance, Structure and Management (continued)

Risk management (continued)

Having assessed the major risks to which the charitable company is exposed, the trustees believe that by monitoring reserve levels, by ensuring controls exist over key financial systems, and by examining the operational and business risks faced by the charitable company, they have established effective systems to mitigate those risks.

Acknowledgements

The trustees wish to record their recognition of the professionalism and commitment of the individual members of the Congregation, and those who have assisted the charitable company during the period.

Their dedication and positive approach are much appreciated.

Signed on behalf of trustees of Brothers of the Sacred Heart, Company Registration No. 0789531 (England and Wales) and Charity Registration No. 1146264

Trustee:

Approved by the trustees on:

Brothers of the Sacred Heart 13

Independent auditor’s report Year to 30 June 2022

Independent auditor’s report to the trustees of The Brothers of the Sacred Heart

Opinion

We have audited the financial statements of the Brothers of the Sacred Heart (the ‘charitable company’) for the year ended 30 June 2022; 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.

Brothers of the Sacred Heart 14

Independent auditor’s report Year to 30 June 2022

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. The trustees are responsible for the other information contained within the annual report and financial statements. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

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

We have nothing to report in this regard.

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 including the strategic 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:

Brothers of the Sacred Heart 15

Independent auditor’s report Year to 30 June 2022

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement, the trustees (who are also the directors of the charitable company for the purposes of company law) 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.

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.

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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Independent auditor’s report Year to 30 June 2022

Auditor’s responsibilities for the audit of the financial statements (continued)

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:

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

As a result of our procedures we did not identify any key audit matters relating to irregularities.

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 trustees 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.

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Independent auditor’s report Year to 30 June 2022

Auditor’s responsibilities for the audit of the financial statements (continued) A further description of our responsibilities is available on the Financial Reporting Council’s website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of our report

This report is made solely to the charitable company’s members, 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 charitable company's members 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 the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Amanda Francis (Senior Statutory Auditor) For and on behalf of Buzzacott LLP, Statutory Auditor 130 Wood Street London EC2V 6DL

Brothers of the Sacred Heart 18

Statement of financial activities Year to 30 June 2022 (including an income and expenditure account)

Notes
Un-
restricted
funds
£		 Restricted
funds
£		 2022
Total
funds
£		 Un-
restricted
funds
£		 Restricted
funds
£		 2021
Total
funds
£
Income from:
Donations
1
Charitable activities
2
Investments and interest receivable
3
Other sources
. Miscellaneous income
Total income
Expenditure on:
Raising funds
. Investment manager fees
Charitable activities
. Support of members of the Congregation
and their ministry
4
. Programme related investments
. Donations
6
Total expenditure
Net income (expenditure) before (losses)
gains on investments
7
Exchange gains on cash held by
investment managers
Net (losses) gains on the revaluation and
disposal of listed investments
11
Net movement in funds
Reconciliation of funds:
Fund balances brought forward at 1 July
2021
Fund balances carried forward at 30
June 2022
81,043

215,662

81,780
4,800		 333
—
22,660
—
81,376
215,662
104,440

4,800		 73,345
215,321
84,144
6,380		 550
—
24,901
—		 73,895
215,321
109,045
6,380
383,285 22,993 406,278 379,190 25,451 404,641
(397)

120,024
—

124,509
(94)
—
—
44,153


(491)

120,024
—
168,662		 171
153,191
649
131,277		 (12)
—
—
35,000		 159
153,191
649
166,277
244,136 44,059 288,195 285,288 34,988 320,276

139,149
608

(207,369)		 (21,066)
—
(64,884)
118,083

608
(272,253)		 93,902

115
256,657		 (9,537)
—
88,047		 84,365
115
344,704
(67,612)
4,528,399
(85,950)
847,416
(153,562)


5,375,815		 350,674
4,177,725		 78,510
768,906		 429,184
4,946,631
4,460,787 761,466 5,222,253 4,528,399 847,416 5,375,815

All of the charitable company’s activities derived from continuing operations during the above two financial periods.

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

Brothers of the Sacred Heart 19

Balance sheet 30 June 2022

Notes
2022
£		 2022
£		 2021
£
2021
£
Fixed assets:
Tangible assets
10
Investments
. Listed investments and cash held
for re-investment
11
. Programme related investment
12
Current assets:
Debtors
13
Cash at bank and in hand
Liabilities:
Creditors: amounts falling due
within one year
14
Net current assets
Total net assets
The funds of the charitable
company:
Unrestricted funds
. Tangible fixed assets fund
15
. Programme related investment
fund
16
. Designated funds
17
. General fund
Restricted funds
18




38,363
149,247
1,456,279
3,420,816
215,853
35,863
198,982		 1,486,449
3,454,039
215,853
5,092,948
129,305		 5,156,341
219,474
187,610

(58,305)		 234,845
(15,371)



5,222,253 5,375,815
1,456,279
215,853
1,866,633
922,022		 1,486,449
215,853
1,866,633
959,464
4,460,787
761,466		 4,528,399
847,416
5,222,253 5,375,815

Approved by the trustees and signed on their behalf by:

Trustee:

Approved on:

Brothers of the Sacred Heart

Company Registration No. 0789531 (England and Wales)

Brothers of the Sacred Heart 20

Statement of cash flows Year to 30 June 2022

Notes
2022
£		 2021
£
Cash flows from operating activities:
Net cash provided by operating activities
A
Cash flows from investing activities:
Investment income – listed investments and interest
Investment income – programme related investment
Purchase of tangible fixed assets
Expenditure on programme related investments
Proceeds from the disposal of investments
Purchase of investments
Net cash used in investing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents at 1 July 2021
Change in cash and cash equivalents due to exchange rate
movements
Cash and cash equivalents at 30 June 2022
B
84,247		 1,370
92,440
12,000
—
—
106,000
**(322,068) **		 97,045
12,000
(140,125)
(5,255)
114,594
(219,972)
**(111,628) ** (141,713)
(27,381)
268,622
608		 (140,343)
408,850
115

241,849		 268,622

Notes to the statement of cash flows for the year to 30 June 2022.

A Reconciliation of net movement in funds to net cash provided by operating activities

2022
£		 2021
£
Net movement in funds (as per the statement of financial activities)
Adjustments for:
Depreciation
Losses (gains) on investments
Investment income
Exchange gains
Increase in debtors
Increase in creditors
Net cashprovided by operating activities		 (153,562)
30,170
272,253
(104,440)
(608)
(2,500)
42,934		 429,184
29,483
(344,704)
(109,045)
(115)
(9,648)
6,215
84,247 1,370
Analysis of changes in cash and cash equivalents
At 1 July
2021
£
Cash flows
£
Cash at bank and in hand
198,982
(49,735)
Cash held by investment managers
69,640
22,354
Total cash and cash equivalents
268,622
(27,381)		 Exchange
gains
£		 At 30
June 2022
£
Cash at bank and in hand
Cash held by investment managers
Total cash and cash equivalents		 198,982
69,640		 (49,735)
22,354		 —
608		 149,247
92,602
268,622 (27,381) 608 241,849

B Analysis of changes in cash and cash equivalents

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).

Brothers of the Sacred Heart 21

Principal accounting policies 30 June 2022

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 30 June 2022 with comparative information provided in respect to the year to 30 June 2021.

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) issued on 16 July 2014, the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

Under a Uniting Direction issued by the Charity Commission under section 12(1) of the Charities Act 2011, this charity (i.e. Brothers of the Sacred Heart (Charity Registration Number 1146264)) is the reporting charity and its related charity, The Coindre Bursary Trust (Charity Registration Number 1146264-1) is the linked charity. The effect of the Uniting Direction for accountancy and reporting purposes is that a single set of accounts is presented for the two charities combined with The Coindre Bursary Trust shown as a restricted fund. Under the Uniting Direction, both charities continue to exist as independent entities in all other respects.

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:

Brothers of the Sacred Heart 22

Principal accounting policies 30 June 2022

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 charity’s investment income may be affected by the continuing volatility in listed investments markets in the aftermath of the Covid-19 pandemic and because of the current macroeconomic and geopolitical climate. Inflation has meant that costs have increased, although the overall impact is expected to be immaterial. The trustees will continue to keep income (particularly that from St Columba’s College and Preparatory School) and expenditure under review but do not anticipate that the impact from current climate on the charity’ finances will be material or impact on the charity’s going concern.

With regard to the next accounting period, the year ending 30 June 2023, 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 market. As noted above, this is particularly relevant at the current time in the post Covid-19 pandemic period and with political and economic uncertainties.

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 donations, investment income and recharge from associated schools.

Donations, including salaries and pensions of individual religious received under Gift Aid or deed of covenant, are recognised when the charitable company has confirmation of both the amount and settlement date. In the event of donations pledged but not received, the amount is accrued for where the receipt is considered probable. In the event that a donation is subject to conditions that require a level of performance before the charitable company 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 charitable company and it is probable that those conditions will be fulfilled in the reporting period.

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

Brothers of the Sacred Heart 23

Principal accounting policies 30 June 2022

Income recognition (continued)

Income from charitable activities consists of a recharge from associated schools and is recognised to the extent that it is probable that economic benefits will flow to the charitable company and the income is capable of financial measurement. It is measured at fair value of the consideration received or receivable, excluding any relevant discounts or value added tax.

Investment income is recognised once the dividend or equivalent 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 charitable company; this is normally upon notification of the interest paid or payable by the bank.

All other income is recognised to the extent that it is probable that the economic benefits will flow to the charitable company and the revenue can be measured reliably. It is measured at fair value and accounted for on an accruals basis.

Expenditure recognition

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charitable company 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.

All expenditure is accounted for on an accruals basis. Expenditure comprises direct costs and support costs. All expenses, including support costs, are allocated or apportioned to the applicable expenditure headings. The classification between activities is as follows:

Charitable grants and donations are made where the trustees consider there is real need following a review of the details of each particular case and comprise single year payments rather than multi-year grants. Grants and donations are included in the statement of financial activities when approved for payment. Provision is made for grants and donations approved but unpaid at the period end.

All expenditure is stated inclusive of irrecoverable VAT.

Brothers of the Sacred Heart 24

Principal accounting policies 30 June 2022

Tangible fixed assets

All assets costing more than £1,000 and with an expected useful life exceeding one year are capitalised.

Plant and other tangible fixed assets are capitalised and depreciated at the following annual rates in order to write them off over their estimated useful lives:

Other tangible fixed assets which have been fully depreciated are written out of the financial statements as their net realisable value is considered to be negligible.

Listed investments and cash held for re-investment

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 charitable company does not acquire put options, derivatives or other complex financial instruments.

As noted above the main form of financial risk faced by the charitable company 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 if 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.

Brothers of the Sacred Heart 25

Principal accounting policies 30 June 2022

Programme related investments

Programme related investments include a building owned by the charitable company but used by another organisation for purposes consistent with the charitable company’s objectives. The original cost of the building classified as programme related investment is not known. The value at which the building is included represents expenditure on the building since 2011.

Debtors

Debtors are recognised at their settlement amount, less any provision for nonrecoverability. Prepayments are valued at the amount prepaid.

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 have been disclosed as short - term deposits.

Creditors

Creditors 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 are recognised at the amount the charitable company anticipates it will pay to settle the debt.

Fund structure

Restricted funds comprise monies raised for, or their use restricted to, a specific purpose, or contributions subject to donor-imposed conditions.

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

Designated funds comprise monies set aside out of unrestricted general funds for specific future purposes or projects.

The tangible fixed assets fund represents the net book value of the charitable company’s tangible fixed assets.

The programme related investment fund represents the value of the charitable company’s programme related investment. This investment comprises land and building owned by the charitable company but used by another charitable and not-for-profit organisation with objectives consistent with those of the charitable company. It is the intention of the trustees that this asset should continue to be used for this purpose until at least December 2026, the date to which the property is leased, and as such the value should not be regarded as realisable with ease in order to meet future contingencies and/or obligations.

Brothers of the Sacred Heart 26

Principal accounting policies 30 June 2022

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.

Services provided by members of the Congregation

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

Brothers of the Sacred Heart 27

Notes to the financial statements 30 June 2022

1 Income from: Donations and legacies

Un-
restricted
funds
£		 Restricted
funds
£		 2022
Total
funds
£		 Un-
restricted
funds
£		 Restricted
funds
£		 2021
Total
funds
£
Pensions and other income of
individual religious received
under deed of covenant
Donations		 78,992
2,051		 —
333		 78,992
2,384		 73,145
200		 —
550		 73,145
750
81,043 333 81,376 73,345 550 73,895
2022
Total
funds
£		 Un-
restricted
funds
£		 Restricted
funds
£		 2021
Total
funds
£
Recharge from associated
schools		 215,662 — 215,662 215,321 — 215,321

2 Income from: Charitable activities

3 Income from: Investments and interest receivable

Un-
restricted
funds
£		 Restricted
funds
£		 2022
Total
funds
£		 Un-
restricted
funds
£		 Restricted
funds
£		 2021
Total
funds
£
Income from listed
investments
. UK equities and unitised
funds
Income from programme
related investment
Interest receivable		 69,738
12,000
42		 22,642
—
18		 92,380
12,000
60		 72,120
12,000
24		 24,896
—
5		 97,016
12,000
29
81,780 22,660 104,440 84,144 24,901 109,045

4 Expenditure on: Support of members of the Congregation and their ministry

Un-
restricted
funds
£		 Restricted
funds
£		 2022
Total
funds
£		 Un-
restricted
funds
£		 Restricted
funds
£		 2021
Total
funds
£
Premises
Living and personal costs
Support of Brothers in the
USA
Depreciation
Governance (see note 5)
Other support costs
. Professional fees
. Accountancy
. Other		 19,548
45,398
8,542
30,169
5,070
6,790
3,420
1,087		 —
—
—
—
—
—
—
—		 19,548
45,398
8,542
30,169
5,070
6,790
3,420
1,087		 63,772
35,338
6,395
29,483
6,870
5,183
6,150
—		 —
—
—
—
—
—
—
—		 63,772
35,338
6,395
29,483
6,870
5,183
6,150
—
120,024 — 120,024 153,191 — 153,191

Expenditure on premises in 2021 included £45,336 in relation to repairs to the roof of the charity’s property.

Brothers of the Sacred Heart 28

Notes to the financial statements 30 June 2022

5 Governance

Governance
Un-
restricted
funds
£		 Restricted
funds
£		 2022
Total
funds
£		 Unrestricted
funds
£		 Restricted
funds
£		 2021
Total
funds
£
Professional fees 5,070 — 5,070 6,870 — 6,870
Donations 2022
Total
funds
£


Un-
restricted
funds
£

Restricted
funds
£		 2021
Total
funds
£
18,289
112,686
35,000
302
166,277
Donation to the
Congregation’s Solidarity
Fund – for onward distribution
to projects for the relief of
poverty and for education.
Donations to the
Congregation’s missions
. Brothers’ Delegation in the
Philippines
Coindre Bursary – to provide
support for students at St
Columba’s College and
Preparatory School
Sundry donations		 36,620
87,889
—
—		 —
—
44,153
—		 36,620
87,889
44,153
—


18,289
112,686
—
302


—
—
35,000
—
124,509 44,153 168,662 131,277 35,000

6. Donations

7. Net income (expenditure) before (losses) gains on investments

This is stated after charging:

Un-
restricted
funds
£		 Restricted
funds
£		 2022
Total
funds
£		 Un-
restricted
funds
£		 Restricted
funds
£		 2021
Total
funds
£
Auditor’s remuneration
. Current year
. Previous year
Depreciation		 5,070
—
30,170		 —
—
—		 5,070
—
30,170		 4,650
2,220
29,483		 —
—
—		 4,650
2,220
29,483

8. Staff costs, key management personnel and trustees’ remuneration

The charitable company did not employ any staff during the year (2021 – none).

The key management personnel of the charitable company in charge of directing and controlling, running and operating the charitable company on a day to day basis comprise the trustees. They received nil remuneration or reimbursement of expenses in connection with their duties during the year (2021 – £nil).

The charitable company’s trustees are all members of the Congregation. However, as the trustees mostly reside in the US, their living and personal expenses are borne by the Brothers of the Sacred Heart (US Province). Certain expenses are occasionally borne by the charitable company in respect to the general costs of the US Province and these totalled £nil in 2022 (2021 - £nil). No trustee received any remuneration or reimbursement of expenses in connection with their duties as trustees (2021 – none).

Brothers of the Sacred Heart 29

Notes to the financial statements 30 June 2022

9. Taxation

Brothers of the Sacred Heart is a registered charity and, therefore, is not liable to income tax or corporation tax on income derived from its charitable activities or tax on capital gains, as it falls within the various exemptions available to registered charities.

10. Tangible fixed assets

Tangible fixed assets
Freehold
land and
building
£		 Furniture,
fittings
and
equipment
£		 Motor
vehicles
£		 Total
£
Cost or deemed cost
At 1 July 2021 and 30 June 2022
Cost
Deemed cost (2015 valuation)
Depreciation
At 1 July 2021
Charge for year
At 30 June 2022
Net book values
At 30 June 2022
At 30 June 2021		 1,606,807 62,094 24,278 1,693,179
138,031
1,468,776		 62,094
—		 24,278
—		 224,403
1,468,776
1,606,807 62,094 24,278 1,693,179
146,445
25,165		 36,007
5,005		 24,278
—		 206,730
30,170
171,610 41,012 24,278 236,900
1,435,197 21,082 — 1,456,279
1,460,362 26,087 — 1,486,449

As permitted under FRS 102, the charitable company has now adopted a policy of not revaluing its tangible fixed assets. Tangible fixed assets are stated at cost or deemed cost. Where a valuation has been used in prior periods this has been taken to be deemed cost under the transitional arrangements of FRS 102.

Brothers of the Sacred Heart 30

Notes to the financial statements 30 June 2022

11 Listed investments and cash held for re-investment

Un-
restricted
funds
£		 Restricted
funds
£		 2022
Total
funds
£		 Un-
restricted
funds
£		 Restricted
funds
£		 2021
Total
funds
£
Listed investments
Market value at 1 July 2021
Additions at cost
Disposals at book value
. Proceeds
. Net realised (losses) gains
Net unrealised investment
(losses) gains
Market value at 30 June 2022
Cash held by investment
managers for re-investment
Cost of listed investments at
30 June 2022		 2,543,028
293,826		 841,371
28,242		 3,384,399
322,068		 2,170,952
201,713		 763,365
18,259		 2,934,317
219,972
(106,000)
(5,755)		 —
—		 (106,000)
(5,755)		 (86,294)
6,349		 (28,300)
2,345		 (114,594)
8,694
(111,755)
(201,614)		 —
(64,884)		 (111,755)
(266,498)		 (79,945)
250,308		 (25,955)
85,702		 (105,900)
336,010
2,523,485
92,595		 804,729
7		 3,328,214
92,602		 2,543,028
64,145		 841,371
5,495		 3,384,399
69,640
2,616,080 804,736 3,420,816 2,607,173 846,866 3,454,039
2,372,620 553,838 2,926,458 2,175,871 525,596 2,701,467

All investments comprise Class A income units in the Sarasin Alpha Endowment Fund. All listed investments held within the Fund were dealt in on recognised stock exchanges.

12 Programme related investments

Programme related investments comprise a property occupied by St Columba's College and Preparatory School, a charitable and not-for-profit organisation, for purposes consistent with the charitable company’s objectives.

consistent with the charitable company’s objectives.
2022
£		 2021
£
At 1 July 2021
Additions
At 30 June 2022		 215,853
—		 210,598
5,255
215,853 215,853

13 Debtors

Debtors
2022
£		 2021
£
Amounts receivable from St Columba's College and Preparatory School
(note 20)
Other debtors
Prepayments and accrued income		 27,134
9,119
2,110		 28,032
5,764
2,067
38,363 35,863

Brothers of the Sacred Heart 31

Notes to the financial statements 30 June 2022

14 Creditors – amounts falling due within one year

Creditors – amounts falling due within one year
2022
£		 2021
£
Expense creditors
Donations payable
Accruals		 2,751
44,153
11,401		 5,101
—
10,270
58,305 15,371

15 Tangible fixed assets fund

Tangible fixed assets fund
2022
£		 2021
£
At 1 July 2020
Net movement in year
At 30 June 2021		 1,486,449
(30,170)		 1,375,807
110,642
1,456,279 1,486,449

The tangible fixed assets fund represents the net book value of the charitable company’s tangible fixed assets and has been set up in recognition of the fact that the assets are required for the day-to-day work of the charitable company and are not available to finance current expenditure or meet contingencies.

16 Programme related investment fund

The programme related investment fund represents the value of the charitable company’s programme related investment. This investment comprises land and buildings owned by the charitable company but used by another charitable and not-for-profit organisation with objectives consistent with those of the charitable company. It is the intention of the trustees that this asset should continue to be used for this purpose until at least 24 December 2026. As such the value should not be regarded as realisable with ease in order to meet future contingencies and/or obligations or part of free reserves.

2022
£		 2021
£
At 1 July 2021
Net movement in year
At 30 June 2022		 215,853
—		 210,598
5,255
215,853 215,853

17 Designated funds

The income funds of the charitable company include the following designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes:

At 1 July
2021
£		 Amount
used
£		 At 30 June
2022
£
Retirement reserve
Property repairs fund		 1,800,000
66,633		 —
—		 1,800,000
66,633
1,866,633 — 1,866,633

Brothers of the Sacred Heart 32

Notes to the financial statements 30 June 2022

17 Designated funds (continued)

Designated funds(continued)
At 1 July
2020
£		 Amount
used
£		 At 30 June
2021
£
Retirement reserve
Property repairs fund		 1,500,000
250,000		 300,000
(183,367)		 1,800,000
66,633
1,750,000 116,633 1,866,633

Retirement reserve

During the year to 30 June 2019 the trustees established a retirement reserve, representing monies designated by the trustees to provide for the members of the Congregation in their retirement. It has been calculated using actuarial principles and is reviewed regularly by the trustees in the light of the resources available and those likely to be required.

Property repairs fund

The trustees had set aside £250,000 in the prior year to meet the planned expenditure on the Watling House property. £183,367 was utilised during that year. £66,633 is being maintained in the fund to cover further expenditure on the property.

18 Restricted funds

The income funds of the charitable company include restricted funds comprising the following unexpended balances of monies held on trusts to be applied for specific purposes:

The
Coindre
Bursary
Trust
£		 Other
funds
£		 2022
Total
funds
£		 The
Coindre
Bursary
Trust
£		 Other
funds
£		 2021
Total
funds
£
846,866
22,660
(44,059)
(64,884)		 550
333
—
—		 847,416
22,993
(44,059)
(64,884)		 768,906
24,901

(34,988)
88,047		 —
550
—
—		 768,906
25,451
(34,988)
88,047
760,583 883 761,466 846,866 550 847,416

The Coindre Bursary Trust represents the funds of the linked charity which are to be used to provide bursaries at St Columba's College.

Brothers of the Sacred Heart 33

Notes to the financial statements 30 June 2022

19 Analysis of net assets between funds

Restricted
fund
£
General
fund
£		 Designated
funds
£		 Tangible
fixed
assets
fund
£		 Programme
related
investment
fund
£		 Total
2022
£
Fund balances at 30
June 2022 are
represented by:
Tangible fixed assets
Listed investments
Programme related
investments
Net current assets
Total net assets		 —
804,736
—
(43,270)
—

816,080

—
105,942		 —
1,800,000
—
66,633		 1,456,279

—

—

—		 —
—
215,853
—
1,456,279

3,420,816

215,853

129,305
761,466
922,022		 1,866,633 1,456,279 215,853
5,222,253
Restricted
fund
£
General
fund
£		 Designated
funds
£
Tangible
fixed assets
fund
£		 Programme
related
investment
fund
£
Total
2021
£
Fund balances at 30
June 2021 are
represented by:
Tangible fixed assets
Listed investments
Programme related
investments
Net current assets
Total net assets		 —
846,866
—
550
—

807,173

—

152,291		 —
1,800,000
—
66,633		 1,486,449

—

—

—		 —
—
215,853
—
1,486,449

3,454,039

215,853

219,474
847,416
959,464		 1,866,633 1,486,449 215853
5,375,815

The total unrealised gains as at 30 June 2022 constitute movements on revaluation of investments and are as follows:

Un-
restricted
funds
£
150,865
367,157
(14,678)
(201,614)
150,865
Restricted
funds
£


250,891

315,775
—
(64,884)

250,891		 2022
Total
funds
£

401,756

682,932
(14,678)
(266,498)

401,756		 Un-
restricted
funds
£
Restricted
funds
£
2021
Total
funds
£
Unrealised gains at
30 June 2022
included above:
Total unrealised gains
on listed investments
Reconciliation of
movements in
unrealised gains
Unrealised gains at 1
July 2021
Less: in respect to
disposals in the year
Add: net gains arising
on revaluation arising
in the year
Total unrealised gains
at 30 June 2022		 367,157
315,775
682,932
120,928
(4,079)
250,308
237,976
(7,903)

85,702
358,904
(11,982)

336,010
367,157
315,775
682,932

Brothers of the Sacred Heart 34

Notes to the financial statements 30 June 2022

20 Related party transactions

Brother Ronald Hingle SC, Brother Ivy Leblanc SC and Brother Joseph Holthaus SC were trustees of the Brothers of the Sacred Heart in addition to being trustees of St Columba's College and Preparatory School (the College) during the financial year. During the year to 30 June 2022 income was received from the College as disclosed in notes 1 and 2.

At 30 June 2022, debtors included £27,134 (2021 - £28,032) receivable from the College in relation to recharges under the transfer agreement, stipends of brothers and rental of the programme related investment property (note13).

The charitable company also reimburses costs in relation to utilities such as gas, electricity, insurance, telephone and food to the College. The amounts reimbursed during the year amounted to £7,560 (2021 - £7,560).

The Coindre Bursary Trust made donations to the College. Donations payable during the year amounted to £44,153 (2021 - £35,000).

Details of other transactions with trustees are disclosed in note 8. There are no further related party transactions requiring disclosure (2021 – none).

21 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.

Brothers of the Sacred Heart 35