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2020-12-31-accounts

Charity Registration No. 1160898

THE CONGREGATION OF THE SISTERS OF CHARITY OF SAINT LOUIS CIO

ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

THE CONGREGATION OF THE SISTERS OF CHARITY OF SAINT LOUIS CIO

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees Sœur Jeanne Danion, Provincial Superior and Chair of Trustees
Sister Josephine Goggin, Secretary
Sister Mary Grimes
Mr Brian Taylor
Mr Andrew Cole
Mrs Gael Hicks
Mr Henri Carvalho (Appointed 23 April 2021)
Charity number 1160898
Principal address 220 Sheen Road
RICHMOND
Surrey
TW10 5AN
Independent examiner Old Mill Accountancy LLP
Wessex House
Challeymead Business Park
MELKSHAM
Wiltshire
SN12 8BU
Bankers The Royal Bank of Scotland Plc
36-38 Baldwin Street
BRISTOL
BS1 1NR
Solicitors Stone King LLP
13 Queen Square
BATH
Somerset
BA1 2HJ
Investment advisors Newton Investment Management Limited
71 Queen Victoria Street
LONDON
EC4V 4ER

THE CONGREGATION OF THE SISTERS OF CHARITY OF SAINT LOUIS CIO

CONTENTS

Page
Trustees' report 1 - 11
Independent examiner's report 12 - 13
Statement of financial activities 14
Balance sheet 15 - 16
Notes to the financial statements 17 - 27

THE CONGREGATION OF THE SISTERS OF CHARITY OF SAINT LOUIS CIO

TRUSTEES' REPORT

FOR THE YEAR ENDED 31 DECEMBER 2020

The trustees present their report and financial statements for the year ended 31 December 2020.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the Congregation of the Sisters of Charity of St Louis CIO's constitution , the Charities Act 2011 and “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)” (effective 1 January 201 9).

Objectives and activities

a. Policies and objectives

The objects of the CIO, subsequently referred to as the charity, are religious, educational or other charitable purposes connected with the Roman Catholic religion and the realisation of the objectives for which the Congregation of the Sisters of Charity of Saint Louis were founded, namely the education of disadvantaged youth, education in the faith of the Roman Catholic religion and concern for the poor and marginalised. The charity attempts to do this specifically from where it is based, namely Richmond.

The sisters fulfil these objectives through the specific commitments of individual sisters and through the decisions made by the Provincial Council and the trustees in exercising their responsibility for and management of the Province and the charity.

b. Activities for achieving objectives

The sisters are committed to ensuring they are faithful to their original founding charism and responsive to the educational, pastoral and social needs of society today. They are committed, within the level of resources available, to ensuring as many people as possible, especially those who are poor or otherwise disadvantaged, benefit from their work and/or the resources of the charity.

When planning the activities undertaken by the sisters, the Provincial Council aims to be faithful to the common good and carefully consider the Charity Commission’s guidance on public benefit and in particular, the sections specific to charities for the advancement of religion, education and other charitable work. Likewise, the trustees adhere to this guidance when deciding on the allocation of grants for educational projects, research and other charitable works.

“The common good implies that every individual, no matter how high or low, has a duty to share in promoting the welfare of the community as well as a right to benefit from that welfare. “Common” implies all inclusive”; the common good cannot exclude or exempt any section of the population.” (Common Good CBEW Par 70).

Prayer and Worship

The activities in which the sisters are involved include:

THE CONGREGATION OF THE SISTERS OF CHARITY OF SAINT LOUIS CIO

TRUSTEES' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

Education

The activities in which the sisters are involved include:

Human and Spiritual Development and Pastoral Work

The activities in which the sisters are involved include:

Charitable activity for the sisters is a necessary expression of who they are. It is not an “add on” to the life of faith the sisters profess but a constitutive element of it.

To facilitate the charitable work of the sisters and enhance the ability of the trustees to respond to requests for support, it is important to ensure that resources are carefully and securely managed and that the sisters are supported through appropriate training, up to date equipment and facilities and that their wellbeing and welfare is assured.

Public Benefit

The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the Congregation of the Sisters of Charity of St Louis CIO should undertake.

c. Grant making policies

The charity makes grants and donations largely to institutions in accordance with its objectives and agreed grants policy.

THE CONGREGATION OF THE SISTERS OF CHARITY OF SAINT LOUIS CIO

TRUSTEES' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

Achievements and performance

a. Review of activities

a . During the year to 31 December 2020 the sisters continued , as far as was feasibly possible, given lockdown restrictions, to be active participants in the parish of Our Lady Queen of Peace, East Sheen. Sisters were members of the parish council, Eucharistic ministers, readers, representatives on ecumenical forums and volunteers involved with practical day to day fund raising for charitable outreach work and local management issues whenever there was an opportunity to do so.

The aim was to enable as many people as possible to worship at this church, participate in the services, benefit from the spiritual support on offer and help to facilitate the outreach to the poor and disadvantaged.

b. A sister ran the 1 st sacraments preparation programme in East Sheen, thus helping the 26 children in the programme to understand their faith better and take the first steps in becoming informed and active members of the Church. The arrangements to deliver this programme were altered significantly to ensure adherence to social distancing rules and safe implementation.

c. Sisters continue to support a few elderly local residents in their own homes through telephone outreach and a listening ear. They also provided food regularly for a vulnerable, marginalised neighbour.

d. The trustees continue to make grants available to education projects, training centres, justice and peace groups, local parishes and those working with the marginalised at home and abroad.

e. Those who called at the door for food, guidance and comfort were met with kindness, understanding and discretion and where possible or advisable, appropriate support.

f. The elderly and sick sisters are supported and cared for in community as far as possible in terms of the available human resources and in the light of their individual needs. During the year it became clear that the health and social care needs of two sisters required residential care services. One moved into residential care on 9 September 2020 and the other on 22 October 2020.

Evaluation of Priorities for 2020

In the Annual Report of the charity for 2019 the trustees, conscious of the need to ensure maximum public benefit from the available resources, both human and financial, identified the priorities for expenditure during 2020. Outlined below is an evaluation of the extent to which these objectives have been met during the year.

a. To continue to provide the sisters with all they need, to enable them to fulfil the objects for which the Congregation was founded in 1803. (This will include responding to any request for support to meet the needs of the Congregation in other areas of the world, particularly areas of poverty).

The regular ongoing commitments which enabled the sisters in England to fulfil the objects for which the Congregation was founded were fully supported. This included financial support for the work of education, involvement in parochial life and the local community, catechises, working for social cohesion, social justice and contact with the sick. (See above items a. to f. of Section on Review of Activities).

b. To ensure that with the advancing age and increasing frailty and dependency of some of the older and sick sisters the necessary funds are made available to provide adequate and appropriate care for the elderly and infirm sisters in France/ England.

The elderly and sick sisters in England were appropriately cared for and their medical and nursing needs met. Generalised personal and social care and support of older or sick sisters was given to all who needed it so they could live within community and remain as active and independent as possible for as long as possible. However, with advancing age and failing health this became unsustainable for all members as the year progressed and two members moved into a residential care home in the latter part of 2020. One died at the beginning of 2021, the other remains in fulltime residential care.

THE CONGREGATION OF THE SISTERS OF CHARITY OF SAINT LOUIS CIO

TRUSTEES' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

c. To keep the Reserves Policy under review on an annual basis and update as required, so that the charity is prepared for and able to fund the work of the sisters and meet the objectives for which the charity was established.

The evaluation of the predicted costs of care of the sisters as they age was undertaken in 2009. The Reserves Policy drafted as a consequence was agreed at the trustee meeting in April 2010. It was redrafted and agreed in October 2012 as the care costs of the sisters had increased. It was redrafted and agreed in 2014 to ensure there were adequate resources available to meet predicted care costs in the future. The policy was further updated and agreed at the Trustee meeting of 27 April 2018. It will need to be reviewed again in the light of the long-term financial impact of the pandemic, drop-in interest rates and volatility of the market. We are expecting to undertake this in 2021.

d. To continue to work closely with the Provincial Administration France/England to explore possible ways of ensuring that the objects for which the Congregation was founded continue to be supported by some of the financial resources presently managed by the trustees.

Since the English community became a constitutive element of the French province in 2000, it continues to work in partnership with our sisters in France. The Provincial Superior of France/England is chair of trustees and oversees the financial management of the charity; The sisters continue to access courses and renewal opportunities to ensure their ongoing personal, educational and spiritual development. This includes retreats, conferences and workshops. Such ongoing formation informs their contribution to the work of service offered to the wider community e.g. sacramental preparation, parish ministry, spiritual advice and support, work for social justice and social cohesion.

e. To adequately fund the participation of the sisters in the Provincial Assemblies and other significant congregational events held during 2020.

Due to travel restrictions ageing and health issue sisters were not able to travel to France nor to Montreal in 2020. Congregational reflection, discussion and consultation sessions, such as the Extended Council of Congregation, were held virtually.

f. To ensure adequate resources are made available to fund the necessary translation both oral and written required for the full participation of the English-speaking sisters in the Provincial Assemblies and other Congregation meetings.

Expenditure for the translation services required to ensure the sisters’ access to written and oral information in their own language was made available and the participation of the sisters facilitated.

g. To continue to work with the Provincial Administration France/England to find appropriate and effective ways of responding to the decline in numbers, the ageing profile of the group and increased care needs.

The situation continues to be kept under review at Council and Trustee meetings and decisions are guided by the commitment to ensure sisters can be supported to continue their involvement in ministries and services appropriate to their age and state of health.

h. To fund the regular maintenance of our property at Richmond.

Just over £9,500 (excluding utilities) was spent on general maintenance and repairs in the year ended 31 December 2020 and £5,400 was spent on garden upkeep over the same period.

i. To determine annually the future use of the interest from the Education Fund.

In the year ended 31 December 2020 £8,200 was allocated in grants to support education projects, training and research. This figure included £2,000 to the Vice Province of Madagascar; £1,000 to the Cardinal Hume Centre; £2,000 to Kenelm Youth Trust; £1,000 for Catholic Association for Racial Justice; £1,000 for Province Row and £1,200 for Ecumenical Accompaniment Programme.

THE CONGREGATION OF THE SISTERS OF CHARITY OF SAINT LOUIS CIO

TRUSTEES' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

j. To receive an account from the Provincial Council on an annual basis of the use of the interest from the designated Youth and Senior Sisters funds.

In the year ended 31 December 2020 £22,325 was receivable in interest from the Youth Fund. The money is transferred to France on an annual basis. Generally, the money is used to support small Catholic schools in Brittany and to help facilitate the work of the Tutelle.

In the year ended 31 December 2020 £14,611 was receivable in interest from the Senior Sisters Fund. The money is transferred to France on an annual basis. The money generally is used to support the care and animation activities arranged in the nursing home for the older and sick sisters in Vannes.

b. Investment policy and performance

Investments

The trustees’ decision, “to limit any movement of funds in the current climate and look to the long term” (Minute item 4c 3rd November 2008), appeared a wise and insightful decision. This decision has served the charity well since the economic downturn of 2008. As we face an ever-greater economic challenge in 2020 and a volatile and uncertain climate it is heartening to note that the Fund has benefited from its positioning within the consumer goods and industrial sectors, with the underweight position in government bonds also beneficial.

All investments are held in an SRI (Socially Responsible Investment) Fund. The advantage of this Fund is the possibility of greater diversification of the funds. This Fund has been specially set up for charities with similar ethical policies. The Fund benefits from the expertise of Newton’s responsible investment team.

Prudent and considered management of the investments ensured the work of the sisters and the impact on the communities they serve has not been significantly adversely affected by the economic volatility. Furthermore, the grant allocation to fund education and research projects has also remained fairly constant. However, the interest available from the investments varies from year to year which is reflected in the resources available to benefit the beneficiaries of the charity.

Caution is still very necessary as the economic outlook is dependent on the development of the pandemic; the government’s response to on-going infections; the uncertainty of earnings expectations for those sectors most severely impacted and the possibility of high unemployment.

The trustees receive regular reports from the investments managers at Newton to enable them to monitor the charity’s investments and make informed decisions. As face-to-face meetings were not possible this year the trustees appreciated the informative videos and online informative posted. The charity’s funds remain well diversified within the portfolio. Cash deposits are held with four different banks or building societies in order to control credit default risk. Minimising risk is one of the trustees’ overriding objectives.

Investment Powers

There are no restrictions in the charity’s governing document regarding the making of investments.

THE CONGREGATION OF THE SISTERS OF CHARITY OF SAINT LOUIS CIO

TRUSTEES' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

Investment Policy

The charity's portfolio is managed by the investment manager with quarterly reports provided to the trustees. The portfolio is managed with a medium risk profile which means that the trustees are seeking a return in excess of inflation over the long term and are willing to take capital risk to achieve this. A medium risk approach uses a well diversified portfolio but may contain a higher proportion of a single asset class such as equities.

The Trustees, require the managers to pay attention to the standard investment criteria, namely the suitability of the class of investment and the need for diversification insofar as is appropriate to the circumstances of the charity. There is a maximum of 5% allowed in any one holding (bar collectives and UK government issued bonds). Any other restrictions on the type of investments or markets in which the Manager would invest on the client's behalf will be set out in writing.

The Trustees wish to follow ethical guidelines for Catholic charities when making investments. Their main concern is to avoid the exploitation of women and children in the choice of investments. These considerations and others are reflected in the policy pursued by the Newton SRI Fund for Charities in which all four sub portfolios are invested.

Investment Performance

The portfolio achieved the following returns:

2020 2019
% %
Newton SRI Fund for Charities 8.8 19.6
Composite Index 4.0 17.2

c. Deposits

In 2019 the charity’s two maturing bank and building society deposits were placed in one Asset 30 account with Cater Allen at 0.9%. Following the Bank of England base rate reduction from 0.75% to 0.10% Cater Allan reduced the rate to 0.25% of 13 May 2020. At the meeting 20 October 2020, a decision was made not to seek an alternative deposit placement in light of our existing circumstances and possible need to draw on this deposit with its 30 day withdrawal notice.

d. Welfare Fund

The Welfare Fund which at 31 December 2020 stood at £1,293,426 (2019 £1,223,227) was established as a designated fund in 2009 to service the work of the sisters in England. In 2013 it was agreed that as interest levels remained low and expenditure continued to rise the interest of the Welfare Fund should now be used to ensure that the works of the sisters are adequately supported and to ensure appropriate provision for their wellbeing and care. £200,000 from a legacy was added in December 2018. As the care needs of the sisters increase the interest from this Fund is more on demand. The income received in 2020 was £25,688.06.

e. Education Fund

The Education Fund which at 31 December 2020 stood at £944,465 (2019 £885,252) was established as a designated fund in 1994 to respond to education and training needs in line with the objects for which the congregation was founded in 1803. The income received in 2020 was £18,060.

At the trustee meeting of 24 April 2020, it was agreed to respond to the following requests for grants:

At the trustee meeting of 20 October 2020, it was agreed to respond to the following request for grants:

THE CONGREGATION OF THE SISTERS OF CHARITY OF SAINT LOUIS CIO

TRUSTEES' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

f. Youth Fund

The separate designated Youth Fund which at 31 December 2020 stood at £1,142,252 (2019 £1,079,579) was set aside within the portfolio in 2002. It continues to be used to support the education and welfare of young people in the wider provincial context of France/England. The income has been marginally affected by the decline in the capital value of the investments, and also a consequence of fluctuations in the exchange rate of sterling to Euro.

The interest from the fund, is paid annually into a provincial account, and was used to support the work of the Tutelle and maintenance of the five schools for which the sisters are responsible. It was used to support School Principals, supply training and cover the costs of appointments. It was also used to support participation in Diocesan events. The dividend distributions received in the Youth Fund in the year ended 31 December 2020 was £22,771, and will be transferred to France after the trustee meeting in April 2021. This is down on 2019 interest income by about £5,000.

g. Senior Sisters Fund

The Senior Sisters Fund which at 31 December 2020 stood at £747,555 (2019 £706,538) was established as a designated fund in November 2006 following the sale of the house at Tolworth. It continues to help provide the necessary nursing care, medical facilities and appropriate equipment for all the sisters as their age of fragility demands in the nursing home at the Mother House.

The dividend distributions received in the Senior Sisters Fund in the year ended 31 December 2020 was £14,903 and will be transferred to France after the trustee meeting in April 2021. This was down just under £3,000 on 2019.

h. Other Expenditure

i. The annual contribution to the Province was transferred via bacs payment in December 2020. It was £50,000 as agreed at trustee meeting 24 April 2020.

ii. A gardener/handyman continues to be hired to help with garden maintenance and general repairs. The hours worked relate to the amount of work required but generally averages five hours per week.

iii. Smaller gifts of £50 to £100 were given to individuals who have worked with or served the sisters over the years.

Financial review

a. Results for the year

Total incoming resources for the year ended 31 December 2020 were £158,986 (2019:£174,084).

Total resources expended for the year ended 31 December 2020 were £190,608 (2019:£198,770). Included in resources expended were grants and donations of £116,963 (2019: £139,605).

Net incoming resources for the year ended 31 December 2020 amounted to a deficit of £31,622 (2019: deficit of £24,686). In addition, there were unrealised gains of £224,099(2019:£537,651).

The net movement in funds for the year ended 31 December 2020 amounted to a surplus of £192,477(2019:£512,965).

The charity’s balance sheet as detailed on page 14 shows a satisfactory position with funds amounting to £5,400,380 (2019:£5,207,903).

Included in the charity’s net assets of £5,400,380 (2019:£5,207,903) are fixed asset investments totalling £4,843,355 (2019:£4,664,666). All investments held by the charity have been acquired in accordance with the powers available to the trustees.

THE CONGREGATION OF THE SISTERS OF CHARITY OF SAINT LOUIS CIO

TRUSTEES' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

b. Reserves policy

The reserves of the charity that were freely available for charity use at the year end are as follows:

2020 2019
£ £
Total Funds 5,400,380 5,207,903
Less: Designated Funds (4,217,698) (3,894,596)
Unrestricted Funds that can only be realised by (425,655) (427,940)
disposing of fixed assets held for charity use
Total Free Reserves 757,027 885,367

As well as the ongoing financial commitments which have to be met there are a number of specific projects which the trustees have identified for which funds will be needed over the next few years:

The trustees commissioned a report regarding the costs likely to be incurred in making provision for the long term care of the sisters in England. This report indicates that monies held in reserve are not excessive given the current and future needs of the Congregation. There is an ongoing review of reserves.

The trustees have assessed the major risks to which the Congregation of the Sisters of Charity of St Louis CIO is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.

Plans for the future

a. Future developments

The following priorities for 2021 were considered at the 20th October 2020 meeting and regarded as appropriate and relevant.

Priorities for 2020

The priorities for 2021 remain much the same as last year:

a. To continue to provide the sisters with all they need, to enable them to fulfil the objects for which the Congregation was founded in 1803. (This will include responding to any request for support to meet the needs of the Congregation in other areas of the world, particularly areas of poverty).

b. To ensure that with the advancing age and increasing frailty and dependency of some of the older sisters the necessary funds are made available to provide adequate and appropriate care for the elderly and infirm sisters in France/England.

c. To keep the Reserves Policy under review on an annual basis and update as required so that the Trust is prepared for and able to fund the work of the sisters and meet the objectives for which the charity was established.

d. To continue to work closely with the Provincial Administration France/England to explore possible ways of ensuring that the objects for which the Congregation was founded continue to be supported by some of the financial resources presently managed by the trustees.

THE CONGREGATION OF THE SISTERS OF CHARITY OF SAINT LOUIS CIO

TRUSTEES' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

e. To adequately fund the participation of the sisters in Provincial Assemblies and other significant Congregational and Provincial events to be held during 2021.

f. To ensure adequate resources are made available to fund the necessary translation both oral and written required for the full participation of the English speaking sisters in the Provincial Assemblies and other congregation meetings.

g. To continue to work with the Provincial Administration France/England to find appropriate and effective ways of responding to the decline in numbers and the ageing profile of the group.

The situation continues to be kept under review at Council and Trustee meetings and decisions are guided by the commitment to ensure sisters can be supported to continue their involvement in ministries and services appropriate to their age and state of health. With some sisters having moved into residential care consideration now needs to be given to the size and appropriateness of the current accommodation at 220 Sheen Road.

h. To fund the regular maintenance of our property at Richmond.

i. To determine annually the future use of the dividend distributions from the Education Fund. In the light of the lump sum donation to St. Richard Reynold’s Catholic College in the Borough of Richmond upon Thames in June 2019 no further grants will be considered for that school until 2024.

j. To receive an account from the Provincial Council on an annual basis of the use of the dividend distributions from the designated funds. Youth and Senior Sisters Fund.

Structure, governance and management

a. Constitution

The Congregation of the Sisters of Charity of St Louis CIO was constituted by the association model constitution for CIO's on 13 March 2015. The charity was registered with the Charity Commission on 13 March 2015.

Sœur Jeanne Danion, Provincial Superior and Chair of Trustees Sister Josephine Goggin, Secretary Sister Mary Grimes Mr Brian Taylor Mr Andrew Cole Mrs Gael Hicks Mr Henri Carvalho (Appointed 23 April 2021)

THE CONGREGATION OF THE SISTERS OF CHARITY OF SAINT LOUIS CIO

TRUSTEES' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

b. Method of appointment or election of Trustees

The power of appointing new trustees rests with the majority of the trustees subject to the consent of the Provincial Superior to the appointment. The Provincial Superior of the French/English Province of the Congregation may at her absolute discretion remove any Trustee.

Trustees attend training seminars and receive frequent technical updates from their advisers. All new trustees are familiarised with the objectives and workings of the charity. They are provided with a copy of the Trust Deed, minutes of recent meetings and a copy of the most recent accounts.

c. Organisational structure and decision making

Six trustees manage the Trust. The Provincial Superior is always chair of trustees. The Provincial Treasurer or Provincial Treasurer delegate is normally a Trustee. The Trust meets at least twice a year. The professional advisers are normally invited to the spring meeting when the annual accounts are presented. All decisions relating to the strategic and financial management of the Trust are taken at Trustee meetings. Meetings are quorate if the Provincial Superior and two other trustees are present. Major financial and strategic decisions are subject to ratification by the Provincial or General Council.

The day to day management of the charity is delegated to the Secretary to the Trustees, Sister Josephine Goggin, with the assistance of Sister Mary Grimes, trustee resident in Richmond.

Statement of trustees' responsibilities

The trustees a re responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice ).

The law applicable to charities in England and Wales requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Congregation of the Sisters of Charity of St Louis CIO and of the incoming resources and application of resources of the Congregation of the Sisters of Charity of St Louis CIO for that year.

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

The trustees are responsible for keeping sufficient accounting records that disclose with reasonable accuracy at any time the financial position of the Congregation of the Sisters of Charity of St Louis CIO and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the Congregation of the Sisters of Charity of St Louis CIO and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

THE CONGREGATION OF THE SISTERS OF CHARITY OF SAINT LOUIS CIO

TRUSTEES' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

The trustees' r eport was approved by the Board of Trustees.

Sister Josephine Goggin, Secretary Trustee Dated: 4 May 2021

Sister Mary Grimes Trustee Dated: 4 May 2021

THE CONGREGATION OF THE SISTERS OF CHARITY OF SAINT LOUIS CIO

INDEPENDENT EXAMINER'S REPORT

TO THE TRUSTEES OF THE CONGREGATION OF THE SISTERS OF CHARITY OF SAINT LOUIS CIO

I report on the financial statements of the Congregation of the Sisters of Charity of St Louis CIO for the year ended 31 December 2020, which are set out on pages 14 to 27.

Respective responsibilities of trustees and examiner

The Congregation of the Sisters of Charity of St Louis CIO’s trustees are responsible for the preparation of the financial statements. The charity's trustees consider that an audit is not required for this year under section 144(2) of the Charities Act 2011 (the 2011 Act) and that an independent examination is needed.

It is my responsibility to:

Basis of independent examiner's report

My examination was carried out in accordance with the general Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the financial statements presented with those records. It also includes consideration of any unusual items or disclosures in the financial statements, and seeking explanations from you as trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit and consequently no opinion is given as to whether the financial statements present a ‘true and fair view’ and the report is limited to those matters set out in the next statement.

Independent examiner's statement

Your attention is drawn to the fact that the charity has prepared financial statements in accordance with Accounting and reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has no w been withdrawn.

I understand that this has been done in order for the financial statements to provide a true and fair view in accordance with Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2015.

In connection with my examination, no other matter except that referred to in the previous paragraph has come to my attention:

have not been met or

THE CONGREGATION OF THE SISTERS OF CHARITY OF SAINT LOUIS CIO

INDEPENDENT EXAMINER'S REPORT (CONTINUED)

TO THE TRUSTEES OF THE CONGREGATION OF THE SISTERS OF CHARITY OF SAINT LOUIS CIO

Rachel Wills, FCA Old Mill Accountancy LLP Wessex House Challeymead Business Park MELKSHAM Wiltshire SN12 8BU

Dated: 7 May 2021

THE CONGREGATION OF THE SISTERS OF CHARITY OF SAINT LOUIS CIO

STATEMENT OF FINANCIAL ACTIVITIES

FOR THE YEAR ENDED 31 DECEMBER 2020

Notes
Income from:
Donations and legacies
2
Investments
3
Total income
Expenditure on:
Charitable activities
4
Net gains on investments
9
Net movement in funds
Fund balances at 1 January 2020
Fund balances at 31 December 2020		 2020
£
75,637
83,349
158,986
190,608
224,099
192,477
5,207,903
5,400,380		 2019
£
70,532
103,552
174,084
198,770
537,651
512,965
4,694,938
5,207,903

THE CONGREGATION OF THE SISTERS OF CHARITY OF SAINT LOUIS CIO

BALANCE SHEET

AS AT 31 DECEMBER 2020

Notes
Fixed assets
Tangible assets
10
Investments
11
Current assets
Debtors
13
Cash at bank and in hand
Creditors: amounts falling due within one
year
14
Net current assets
Total assets less current liabilities
Income funds
Unrestricted funds
Designated funds:
Welfare Fund
Education Fund
Youth Fund
Senior Fund
15
General unrestricted funds
15		 2020
£
17,515
172,821
190,336
(58,966)
1,293,426
944,465
1,142,252
747,555
4,127,698
1,272,682		 £
425,655
4,843,355
5,269,010
131,370
5,400,380
5,400,380
5,400,380		 2019
£
19,060
158,122
177,182
(61,885)
1,223,227
885,252
1,079,579
706,538
3,894,596
1,313,307		 £
427,940
4,664,666
5,092,606
115,297
5,207,903
5,207,903
5,207,903

THE CONGREGATION OF THE SISTERS OF CHARITY OF SAINT LOUIS CIO

BALANCE SHEET (CONTINUED)

AS AT 31 DECEMBER 2020

The accounts were approved by the Trustees on 4 May 2021

Sister Josephine Goggin, Secretary Trustee

Sister Mary Grimes Trustee

THE CONGREGATION OF THE SISTERS OF CHARITY OF SAINT LOUIS CIO

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

1 Accounting policies

Charity information

The Congregation of the Sisters of Charity of Saint Louis CIO is a Charitable Incorporated Orgainsation (CIO), registered in England and Wales. The principle office is 220 Sheen Road, Richmond, Surrey, TW10 5AN.

1.1 Accounting convention

The accounts have been prepared in accordance with the Congregation of the Sisters of Charity of St Louis CIO's association constitution, the Charities Act 2011 and “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)” (effective 1 January 2019). The Congregation of the Sisters of Charity of St Louis CIO is a Public Benefit Entity as defined by FRS 102.

The financial statements have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a true and fair view. This departure has involved following the Statement of Recommended Practice for charities applying FRS 102 rather than the version of the Statement of Recommended Practice which is referred to in the Regulations but which has since been withdrawn.

The accounts are prepared in sterling , which is the functional currency of the c harit y. Monetary a mounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

1.2 Going concern

In light of the current coronavirus pandemic, the trustees have reviewed likely future developments and remain of the opinion that there is no reason to believe that the charity will have to cease operating as a result of inadequate financial resources, or any other foreseeable event, within a period of at least 12 months from the date of the approval of these accounts.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.

Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements

Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

Investment income, gains and losses are allocated to the appropriate fund.

1.4 Incoming resources

Income is recognised when the Congregation of the Sisters of Charity of St Louis CIO is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Cash donations are recognised on receipt. Other donations are recognised once the Congregation of the Sisters of Charity of St Louis CIO has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

THE CONGREGATION OF THE SISTERS OF CHARITY OF SAINT LOUIS CIO

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

1 Accounting policies

(Continued)

Legacies are recognised on receipt or otherwise if the Congregation of the Sisters of Charity of St Louis CIO has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.

Donated services of facilities, which comprise donated services are included in income at a valuation which is an estimate of the financial cost borne by the donor where such a cost is quantifiable and measurable. No income is recognised where there is no financial cost borne by a third party.

1.5 Resources expended

Expenditure is accounted for on an accruals basis and has been included under expenses categories that aggregate all costs for allocation to activities. Where costs cannot be directly attributed to particular activities they have been allocated on a basis consistent with the use of the resources.

Grants payable are charged in the year when the offer is made except in those cases where the offer is conditional, such grants being recognised as expenditure when the conditions attaching are fulfilled. Grants offered subject to conditions which have not been met at the year end are noted as a commitment, but not accrued as expenditure.

Support costs are those functions that assist the work of the charity but do not directly undertake charitable activities. Support costs include back office costs, finance, personnel, payroll, and governance costs which support the charity and their activities. These costs have been allocated between cost of raising funds and expenditure on charitable activities.

1.6 Tangible fixed assets

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

All items of expenditure of a capital nature costing in excess of £500 are treated as fixed asset additions rather than being expensed fully in the year of the purchase.

Tangible fixed assets transferred from the unincorporated charity are shown at carrying value at the date of transfer. The trustees believe that the cost of obtaining a valuation in respect of these assets would outweigh the benefit. Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Freehold land and buildings £nil Fixtures and fittings 10 years - straight line basis

It is the opinion of the trustees that the residual value of the freehold property is equal to or in excess of cost and therefore the annual depreciation charge in relation to this property continues to be £nil.

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in net income/(expenditure) for the year.

1.7 Fixed asset investments

Fixed asset investments are stated at market value at the balance sheet date. The Statement of Financial Activities includes the net gains and losses arising revaluations and disposals throughout the year.

THE CONGREGATION OF THE SISTERS OF CHARITY OF SAINT LOUIS CIO

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

1 Accounting policies

(Continued)

1.8 Impairment of fixed assets

At each reporting end date, the Congregation of the Sisters of Charity of St Louis CIO reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any ) .

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. An impairment loss is recognised immediately in income/(expenditure for the year , unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised immediately, unless the relevant asset is carried in at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.9 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.10 Financial instruments

The Congregation of the Sisters of Charity of St Louis CIO has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the Congregation of the Sisters of Charity of St Louis CIO's balance sheet when the Congregation of the Sisters of Charity of St Louis CIO becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

THE CONGREGATION OF THE SISTERS OF CHARITY OF SAINT LOUIS CIO

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

1 Accounting policies

(Continued)

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future p aymen ts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

2 Donations and legacies

Unrestricted
Restricted
funds
funds
2020
2020
£
£
Donations and gifts
-
-
Pensions and Annuities
75,637
-
75,637
-
For the year ended 31 December 2019
70,215
317
Investments
Investments Listed on a Recognised Stock Exchange
Interest receivable		 Total
2020
£
-
75,637
75,637
2020
£
79,826
3,523
83,349		 Total
2019
£
812
69,720
70,532
70,532
2019
£
96,307
7,245
103,552

3 Investments

THE CONGREGATION OF THE SISTERS OF CHARITY OF SAINT LOUIS CIO

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

4 Charitable activities

Telephone (region)
Subscriptions and audio visual
Masses and funerals
Retreats/Spiritual
Food
Medical and care
Room and board
Travelling
Personal/Leisure
Outside services/Lawns
Heat and light
Upkeep/Cleaning
Rates
Insurance
Grant funding of activities (see note 5)
Share of support costs (see note 6)
Share of governance costs (see note 6)
Analysis by fund
Unrestricted funds
For the year ended 31 December 2019
Unrestricted funds
Restricted funds		 Mission
£
-
965
81
547
-
-
-
-
-
-
-
-
-
-
1,593
116,963
12,978
1,782
133,316
133,316
158,898
587
159,485		 Welfare
Premises
£
£
-
342
-
-
-
-
-
-
7,688
-
16,738
-
-
-
85
-
2,605
-
-
8,022
-
5,545
-
12,684
-
1,580
-
2,003
27,116
30,176
-
-
-
-
-
-
27,116
30,176
27,116
30,176
14,382
24,903
-
-
14,382
24,903		 Total
2020
£
342
965
81
547
7,688
16,738
-
85
2,605
8,022
5,545
12,684
1,580
2,003
58,885
116,963
12,978
1,782
190,608
190,608		 Total
2019
£
482
1,285
1,785
1,058
8,172
681
260
1,539
3,730
6,286
5,913
7,895
2,246
2,081
43,413
139,605
13,830
1,922
198,770
198,183
587
198,770

THE CONGREGATION OF THE SISTERS OF CHARITY OF SAINT LOUIS CIO

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

5 Grants payable

Grants to institutions:
General Administration of the SCSL
Contributions to Province of France
Support for Education Projects in France (Youth Fund)
Care of Elderly Sisters in France (Senior Fund)
Vice Province of Madagascar
Province Row
Contribution to school in Haiti
Contribution to St Richard Reynolds College
Kenelm Youth Trust
Ecumenical Accompaniment Programme
Southwark Catholic Youth Service
Volunteer Missionary Movement
Centre for Research and Development in Catholic Education
Catholic Association for Racial Justice
Cardinal Hume Centre
Grants to individuals		 2020
£
17,364
50,000
22,325
14,611
2,000
1,000
-
-
2,000
1,200
-
-
-
1,000
1,000
112,500
4,463
116,963		 2019
£
6,078
-
26,934
17,627
2,320
-
400
70,000
-
-
5,500
1,000
5,000
-
-
134,859
4,746
139,605

THE CONGREGATION OF THE SISTERS OF CHARITY OF SAINT LOUIS CIO

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

6 Support costs

Support costs
Governance
costs
£
£
Depreciation
2,285
-
Motor expenses
1,500
-
Telephone
683
-
Accountancy
5,820
-
Bookkeeping
512
-
Office
2,124
-
Bank Charges
54
-
Independent Examination
-
1,440
Telephone
-
342
12,978
1,782
Analysed between
Charitable activities
12,978
1,782		 2020
£
2,285
1,500
683
5,820
512
2,124
54
1,440
342
14,760
14,760		 2019
£
1,515
1,465
963
6,540
738
2,577
32
1,440
482
15,752
15,752

Governance costs includes payments to the independent examiner of £1,440 (2019:£1,440) for independent examination fees.

In addition are fees payable to the independent examiner of £5,520 (2019:£5,520) in respect of accountancy services and £300 (2019:£1,020) for other services.

7 Employees

There were no employees during the year.

8 Trustees' expenses

None of the trustees (or any persons connected with them) received any remuneration , benefits in kind or reimbursement of expenses from the Congregation of the Sisters of Charity of St Louis CIO during the year.

The charity provides board and lodging for the trustees who are sisters of the charity.

This charity became a constitutive element of the French Province in 2000 and has some some common trustees. During the year this charity paid the following grants to France:

2020
2019
£
£
Contributions to Province of France 5 0,000
-
Support for Education Projects in France 22,325
26,934
Care of Elderly Sisters in France 14,611
17,627
Total 86,936
44,561

THE CONGREGATION OF THE SISTERS OF CHARITY OF SAINT LOUIS CIO

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

9 Net gains/(losses) on investments

2020
£
Revaluation of investments
224,099
Tangible fixed assets
Freehold land
and buildings
Fixtures and
fittings
£
£
Cost
At 1 January 2020
408,443
22,850
At 31 December 2020
408,443
22,850
Depreciation and impairment
At 1 January 2020
-
3,353
Depreciation charged in the year
-
2,285
At 31 December 2020
-
5,638
Carrying amount
At 31 December 2020
408,443
17,212
At 31 December 2019
408,443
19,497		 2019
£
537,651
Total
£
431,293
431,293
3,353
2,285
5,638
425,655
427,940

10 Tangible fixed assets

THE CONGREGATION OF THE SISTERS OF CHARITY OF SAINT LOUIS CIO

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

11 Fixed asset investments

Listed
investments
Unlisted
investments
£
£
Cost or valuation
At 01 January 2019
3,860,229
804,437
Valuation changes
224,099
(45,410)
At 31 December 2020
4,084,328
759,027
Carrying amount
At 31 December 2020
4,084,328
759,027
At 31 December 2019
3,860,229
804,437
Material investments: 2,329,509 units - The SRI Fund for Charities £4,084,328.
12
Financial instruments
2020
£
Carrying amount of financial assets
Debt instruments measured at amortised cost
15,353
Equity instruments measured at cost less impairment
4,843,355
Carrying amount of financial liabilities
Measured at amortised cost
58,966
13
Debtors
2020
Amounts falling due within one year:
£
Other debtors
15,353
Prepayments and accrued income
2,162
17,515
14
Creditors: amounts falling due within one year
2020
£
Accruals and deferred income
58,966		 Total
£
4,664,666
178,689
4,843,355
4,843,355
4,664,666
2018
£
16,947
4,664,666
61,885
2019
£
16,947
2,113
19,060
2019
£
61,885

THE CONGREGATION OF THE SISTERS OF CHARITY OF SAINT LOUIS CIO

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

15 Unrestricted funds

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

Balance at 1
January 2020
£
Welfare fund
1,223,227
Education fund
885,252
Youth fund
1,079,579
Senior fund
706,538
Designated funds
3,894,596
General funds
1,313,307
Total unrestricted funds
5,207,903
Prior Year
Balance at 1
January 2019
£
Welfare fund
1,053,902
Education fund
758,267
Youth fund
929,216
Senior fund
608,132
Designated funds
3,349,517
General funds
1,345,151
Total unrestricted funds
4,694,668		 Movement in funds
Incoming
resources
Resources
expended
Revaluations,
gains/losses
Balance at 31
December 2020
£
£
£
£
25,185
(25,688)
70,702
1,293,426
17,706
(8,200)
49,707
944,465
22,325
(22,325)
62,673
1,142,252
14,611
(14,611)
41,017
747,555
79,827
(70,824)
224,099
4,127,698
79,159
(119,784)
-
1,272,682
158,986
(190,608)
224,099
5,400,380
Movement in funds
Incoming
resources
Resources
expended
Revaluations,
gains/losses
Balance at 31
December 2019
£
£
£
£
30,384
(30,685)
169,626
1,223,227
21,362
(13,633)
119,256
885,252
26,934
(26,934)
150,363
1,079,579
17,627
(17,627)
98,406
706,538
96,307
(88,879)
537,651
3,894,596
77,460
(109,304)
-
1,313,307
173,767
(198,183)
537,651
5,207,903		 Movement in funds
Incoming
resources
Resources
expended
Revaluations,
gains/losses
Balance at 31
December 2020
£
£
£
£
25,185
(25,688)
70,702
1,293,426
17,706
(8,200)
49,707
944,465
22,325
(22,325)
62,673
1,142,252
14,611
(14,611)
41,017
747,555
79,827
(70,824)
224,099
4,127,698
79,159
(119,784)
-
1,272,682
158,986
(190,608)
224,099
5,400,380
Movement in funds
Incoming
resources
Resources
expended
Revaluations,
gains/losses
Balance at 31
December 2019
£
£
£
£
30,384
(30,685)
169,626
1,223,227
21,362
(13,633)
119,256
885,252
26,934
(26,934)
150,363
1,079,579
17,627
(17,627)
98,406
706,538
96,307
(88,879)
537,651
3,894,596
77,460
(109,304)
-
1,313,307
173,767
(198,183)
537,651
5,207,903
3,894,596
1,313,307
5,207,903

THE CONGREGATION OF THE SISTERS OF CHARITY OF SAINT LOUIS CIO

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

15 Unrestricted funds

(Continued)

The Welfare Fund is to provide income to fund the future care and welfare of the senior sisters in England.

The Education Fund comprises fixed asset investments and unspent income arising that are used to finance educational projects for disadvantaged children in inner city areas, for the education and training of young people and educational research projects.

The Youth Fund comprises fixed asset investments, the income of which will be be transferred to the Provincial Council to support the education and welfare of young people in the wider provincial context of France and England.

The Senior Sisters Fund is to provide income to fund the care and welfare of the senior sisters in France.

16 Restricted funds

The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:

Movement in funds Movement in funds
Balance at Incoming Resources Balance at
1 January resources expended 31 December
2020 2020
£ £ £ £
Donations fund - - - -
- - - -
Prior year Balance at Incoming Resources Balance at
1 January resources expended 31 December
2019 2019
£ £ £ £
Donations fund 270 317 (587)
-
270 317 (587)
-

Donations fund - Certain parishioners have donated funds to be used for specific charitable projects of their choice.