INFANT JESUS SISTERS (NICOLAS BARRÉ) GENERALATE CIO
(Registered Charity Number: 1164298)
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
Haysmacintyre LLP Chartered Accountants Registered Auditors London
INFANT JESUS SISTERS (NICOLAS BARRÉ) GENERALATE CIO
| INDEX | Page |
|---|---|
| Report of the Trustees | 1 - 6 |
| Auditors’ Report | 7 - 8 |
| Statement of Financial Activities | 9 |
| Balance Sheet | 10 |
| Statement of Cash flows | 11 |
| Notes to the Financial Statements | 12 – 17 |
INFANT JESUS SISTERS (NICOLAS BARRÉ) GENERALATE CIO
REPORT OF THE TRUSTEES
LEGAL AND ADMINISTRATIVE DETAILS
| TRUSTEES | Sister Brigitte Flourez |
|---|---|
| Sister Alice KilBride | |
| Sister Marina Motta | |
| Sister Marie Pitcher | |
| Sister Jane Sinprayoon | |
| Sister Margaret Walsh (Appointed 22 July 2021) | |
| FINANCIAL ADMINISTRATOR | George Fitzsimons FCA |
| REGISTERED OFFICE | 16 East Acton Lane |
| London | |
| W3 7EG | |
| CHARITY REGISTRATION NUMBER | 1164298 |
| AUDITOR | Haysmacintyre LLP |
| 10 Queen Street Place | |
| London | |
| EC4R 1AG | |
| SOLICITORS | Stone King LLP |
| Boundary House | |
| 91 Charterhouse Street | |
| London | |
| EC1M 6HR | |
| PRINCIPAL BANKERS | HSBC UK Bank PLC |
| 1 Centenary Square | |
| Birmingham | |
| B1 1HQ | |
| INVESTMENT BANKERS | Investec Wealth & Investment Limited |
| 2 Gresham Street, | |
| London | |
| EC2V 7QP |
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INFANT JESUS SISTERS (NICOLAS BARRÉ) GENERALATE CIO
REPORT OF THE TRUSTEES (continued)
The Trustees of The Infant Jesus Sisters (Nicolas Barré) Generalate CIO (“the C harity”) present their report and the audited financial statements for the year ended 31 December 2020. These have been prepared under the provisions of the Statement of Recommended Practice for Charities (SORP 2015) (Second Edition, effective 1 January 2019) and comply with all statutory requirements and the charity's governing document.
STRUCTURE, GOVERNANCE AND MANAGEMENT
CONSTITUTION
The Infant Jesus Sisters (Nicolas Barré) Generalate CIO is a Charitable Incorporated Organisation (CIO) and a registered charity (Registration Number 1164298). The Charity was incorporated on 9 November 2015.
TRUSTEES
The Trustees who served in the year were as follows:
Sister Brigitte Flourez Sister Alice KilBride Sister Marina Motta Sister Marie Pitcher Sister Jane Sinprayoon Sister Margaret Walsh (Appointed 22 July 2021)
RECRUITMENT, TRAINING AND INDUCTION OF TRUSTEES
Trustees are appointed based on the Charity's requirements for knowledge, experience and skills and the suitability of candidates for the role. There is currently a preference for members of the Institute. Trustees are provided with formal and informal training based on identified training needs. New Trustees are provided with induction training which focusses on the requirements of charity law, guidance from the Charity Commission and the Charity's own policies, procedures and circumstances.
OBJECTS AND ACTIVITIES
The Charity’s object is the advancement of the Roman Catholic religion through the religious and other charitable work of the religious institute known as the Infant Jesus Sisters (including work with people of other faiths). The Charity facilitates the leadership of the worldwide Institute, including international meetings involving its Provincial leadership teams, and funds charitable work performed by sisters of the Institute in various countries as the need arises. The desire of our Institute is to make Jesus Christ known and loved through a variety of ministries which continue to evolve according to the needs in each country. Our particular focus is to reach out to those who are most in need.
The work currently undertaken typically involves education and other ministries to young people, health care and pastoral or parish ministries, usually in developing countries (principally, but not exclusively, in Africa). This includes various forms of support for people who are disadvantaged and in need.
The Charity’s strategy is to provide financial support (through grants) for Institute projects and to sisters who are members of the Institute (normally to the Institute’s administrative units – we do not make personal grants to individual sisters except for religious formation expenses), as well as providing leadership to the Institute worldwide. The Charity organises meetings between various national and international groups of sisters in leadership positions to coordinate the planning and implementation of the Institute’s strategy. To a lesser extent in financial terms, the Charity also makes donations to other charitable causes, including emergency relief in connection with natural disasters, war zones and refugees (among other things).
We invite grant applications from the Institute’s administrative units using a standard application process which requires them to set out their financial needs, what local needs they are seeking to meet, expected outcomes and how the activities will be managed, as well as a range of other information. These applications are considered and, if they meet the Charity’s Grant-making Policy, approved by Trustees.
The current priorities for grant funding stipulated in the Grant-making Policy are:
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The advancement of the Roman Catholic religion through the religious and other charitable work of the Institute (including work with people of other religious faiths) within local communities and across the world, but particularly in those countries where the Infant Jesus Sisters are based;
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Education and human formation, particularly in those countries where the Infant Jesus Sisters are based.
2
INFANT JESUS SISTERS (NICOLAS BARRÉ) GENERALATE CIO
REPORT OF THE TRUSTEES (continued)
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The relief of poverty within local communities and among the world’s deprived and needy peoples, with particular focus on those countries where the Infant Jesus Sisters are based or as determined by the trustees from time to time and in accordance with this policy;
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The relief of other hardships, such as (not exhaustively) those of old age, disability, illness or oppression;
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Addressing charitable needs which the trustees may identify from time to time, for instance needs arising from wars or natural disasters.
Due diligence is performed on grant applications to verify the identity, bona fides and other background information relating to applicants and to ensure that the application meets both the Charity’s charitable purposes and the priorities for support set out in the Grant-making Policy.
We obtain reports from grant recipients periodically which require them to explain how the grants have been spent (providing relevant evidence) as well as giving qualitative and quantitative assessments of their impact and effectiveness. The performance measures employed are typically focused on the delivery of support to individuals in need and humanitarian issues, since the Charity believes that its objects are best fulfilled by the pursuit of Catholic Social Teaching (“CST”). CST covers all spheres of life - the economic, political, personal and spiritual - with human dignity at its centre. Trustees also visit the projects and Institute units who have received grants periodically to see for themselves how grants have been deployed.
The Charity makes grants on the basis of need and demand, so does not prioritise any particular areas of charitable activity. Its strategy is based on responding to the sisters and administrative units within the Institute as they identify specific needs and bring them to its attention.
The Charity has no employees. Much of its work is undertaken by the Trustees, supported by a small number of external advisors and personnel for financial management and accounting, general and grant administration and other organisational tasks.
ACHIEVEMENTS AND PERFORMANCE
Total funds increased to €36.9m at 31 December 2020 (2019 - €35.4m), with net income before investment gains of €0.6m and investment gains of €0.9m.
The Charity paid particular attention during the year to the impacts of the COVID-19 pandemic on the Charity’s investment portfolio and on grant beneficiaries. Investment income from the portfolio proved to be resilient, though still 8% lower than the prior year as some companies halted or reduced dividend payments, and the market recovery resulting from the massive economic support supplied by world governments meant that the initial sharp reduction in portfolio values had been fully recovered by the Autumn and in fact there was a positive total return for the full year.
Grants of €661,829 (2019 - €1,047,013) were made during the year to units within the Institute - €511,829 to the ViceProvince of Cameroon (2019 - €798,668) and €150,000 to the Vice-Province of Nigeria (2019 - €248,345).
The Charity’s Investment Sub-committee met frequently during the year to monitor the investment portfolio and assess investment risks, liaising closely with investment managers. Although the Charity is financially robust, with strong reserves and good liquidity, in response to the pandemic Trustees and advisers monitored the Charity’s financial situation carefully and discussed relevant matters frequently in between formal meetings. Trustees also carefully considered the CIO’s context in relation to the financial position of the Institute as a whole. Trustees worked on communications to explain the operation of the Charity within the Institute and maintained close contact with grant beneficiaries in Cameroon and Nigeria, considering and approving additional expenditure for COVID-related hospital equipment in Cameroon and reprioritising grant expenditure in Nigeria. Small donations were given in response to emergencies and crises in Beirut, Yemen and elsewhere. Trustees received training in governance, investment and fraud prevention matters. Trustees also decided to put up for sale the CIO’s house in Crawley (its main fixed asset), since it was no longer serving its original function of domestic and administrative accommodation for the Institute’s General Council. The house was on the market at 31 December 2020 and has since been sold. Financial policies and procedures were reviewed, as a matter of routine, as was the risk management policy and risk register. It is planned to review certain other policies in 2021. A finance and governance manual was written to facilitate continuity in the event that key Trustees or other personnel were to be incapacitated or otherwise unavailable.
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INFANT JESUS SISTERS (NICOLAS BARRÉ) GENERALATE CIO
REPORT OF THE TRUSTEES (continued)
ACHIEVEMENTS AND PERFORMANCE (continued) Cameroon
The grant of €511,829 made to Cameroon in the year was for the charitable activities of the Institute’s sisters in Cameroon as well as for the completion of the nursery school construction and commencement of building work on an adjacent primary school. The construction grant, net of local funding, was €218,608 and in addition the €254,000 of approved construction grant monies accrued but unpaid at 31 December 2019 was paid out. The nursery school started operating in September 2020 and work commenced on the primary school during the Autumn (slightly later than planned because of late rains).
The mission work in Cameroon (supported by grant funding of €224,731) continues to focus on health care and the education of young boys and girls, of deaf and dumb children and of young people through Catholic Action movements and catechesis. A new community of sisters was established at the site of the new school.
In response to the pandemic, a grant of €38,000 was made for five BiPAP (Bilevel Positive Airway Pressure) ventilators for the hospital in Ekounou, Yaoundé. A grant of €30,490 was made for the purchase of a replacement car for the sisters’ use.
Nigeria
The Charity’s grant of €150,000 made in the year supported a range of charitable activities, as well as certain capital projects. The Nigerian sisters manage several schools, work with displaced persons, provide vocational training for women and support people with HIV, among other activities.
Nigerian Government lockdowns implemented to control the spread of the coronavirus meant that mission activities had to be curtailed from time to time. Consequently, with exchange rates also favourable to the Charity, the grant paid was less than the amount originally approved.
A grant of €68,995 was for the various mission activities of the Nigerian sisters. Grants of €81,005 were made for a range of capital expenditure projects, including new classroom buildings for the New Seed School in Kona, improving the security for school boarders in Ganye, repairing the Kona community’s roof and purchasing two cars. Some of the project priorities changed during the year in response to the pandemic and because of higher pupil numbers in the New Seed School (resulting from movements of displaced people). Trustees therefore agreed certain changes to the expenditure originally planned to be made out of the approved grant.
Inflation remained high in 2020 (Nigerian CPI was some 16% in 2020), with food prices in particular increasing as a result of dollar shortages, insecurity in farming areas and supply bottlenecks.
PRINCIPAL RISKS AND UNCERTAINTIES
The Trustees have considered the major risks and uncertainties to which the Charity is exposed and have implemented policies and controls in order to limit them. The main risks are explained below.
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Trustee body lacks relevant skills or commitment: trustees, including new appointments, have received induction training and ongoing support in relation to their responsibilities. They are fully engaged in all Charity decisions.
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Conflicts of interest: the CIO operates a policy for the disclosure and management of potential conflicts of interest.
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Grants made for inappropriate purposes: the grant application and monitoring process explained above are the main mechanisms for managing this risk, as well as visits to the activities funded.
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Loss of key staff: there are written contracts and agreed notice periods for the key outsourced personnel, as well as regular progress and planning meetings to share knowledge. The other professional advisers engaged (investment managers, investment advisers, accountants and lawyers) would also be able to fill short-term gaps arising if outsourced personnel gave notice.
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Reporting to Trustees: processes exist for reporting on grants, the Charity’s financial performance and position and investments. There is also regular contact between Trustees and key staff and grant recipients.
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High staff turnover: to reduce the risk of high turnover, the Charity maintains its awareness of rates of pay, training, working conditions and job satisfaction for key outsourced personnel.
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INFANT JESUS SISTERS (NICOLAS BARRÉ) GENERALATE CIO
REPORT OF THE TRUSTEES (continued)
PRINCIPAL RISKS AND UNCERTAINTIES (continued)
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Investment policies: there is an investment policy in place (see below), investment managers were selected following invitation to competitive tender, there is a policy of maintaining adequate reserves and there is regular performance reporting and monitoring.
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Fraud or error: the main safeguards are various financial control procedures, segregated duties, authorisation limits and relevant training.
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Counterparty risk: the Charity uses banks with strong credit ratings, has a formal investment management agreement and monitors and reviews its investments.
Trustees have considered the risks associated with COVID-19 and the actions of international governments to restrict its spread. The charity does not rely on physical office premises and is able to conduct its business electronically using computer technology, telephone calls and video conferencing. As a charity that makes grants and bears certain costs of the Infant Jesus Sisters religious institute, its operations have not been interrupted by COVID-19. The charity has a clear investment strategy and a structured system for managing liquidity and expects that it will be able to maintain its normal business, including the desired level of grant payments and other expenditure, for the foreseeable future.
Public Benefit
The Trustees confirm that they have given due consideration to the Charity Commission’s general guidance on public benefit. These requirements are addressed in this report.
FINANCIAL REVIEW
The statement of financial activities on page 9 shows total income for the period of €1.7m (2019 - €1.6m), expenditure of €1.0m (2019 - €1.5m), unrealised investment gains of €0.9m (2019 – €5.0m) and a surplus of €1.5m (2019 - €5.1m). The Charity received donations of €0.9m from constituents of the Institute in 2020, with other income of £0.8m (mainly investment income). Grant expenditure was €0.7m and other expenditure (which relates to the professional and governance fees incurred and Trustees’ living and working expenses) was €0.4m. Total funds (all of which are unrestricted) reached €36.9m (2019 - €35.4m). The Charity expects to be able to finance its typical future level of charitable activity from investment income.
RESERVES POLICY
It is Charity’s policy to seek to maintain a level of reserves which can generate sufficient investment income to pay for the anticipated costs of overseas missions and projects (including a contingency for possible but unpredictable future expenses) on a sustainable basis. Reserves of €34.9m have been designated for investment purposes.
The Charity’s free reserves (excluding designated reserves and fixed assets) were €1.8m at 31 December 2020. Grants are expected to continue at a relatively high level in 2021, while the Cameroon school building project is ongoing.
INVESTMENT POWERS, POLICY AND PERFORMANCE
No changes have been made to the investment policy during the year.
Investments have been made using the main principles noted below:
Minimum Income Provision: The investment portfolio has been designed to produce sufficient income to ensure the maintenance and sustainability of the organisation (this includes grant expenditure as well as leadership, coordination and administrative costs). This combined income requirement is approximately €750,000 per annum on average but may vary significantly from year to year.
Long-term security: The investments require long term financial security so that the charitable objects can be delivered indefinitely, with their value keeping pace with inflation.
Liquidity / flexibility: Investment assets should provide diversification, flexibility and liquidity to cater for changes in the Charity’s situation and requirements. There is a separate lower-risk investment portfolio as an intermediate source of liquidity (i.e. a stage between cash and the long-term investment portfolio).
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INFANTJESUS SISTERS INICOKAS BARRÈ) GEIYERALATE CIO IIEpoifr OFTHE TRUSTEES (comtiDry¢d) INVESTMENfpowEK% POLICY AND PERFORMANCE {eo•li#•al) Ethical & )c&al investment: The inyestsnent managtr lus I1 selectal frorn th¢ Prtn¢iples fw ReS)nSIble Investment IPRII Initiativr sig1lry list supwted by the United Natioos w ensu investtxhents align with the Charity's ethical standard5 while seekingmaximum rkn{within thestipulatejj risk FATameth). The Clwity has an ethi1 investsnert policy. Rijk The Inv¢5¢ma have SldIvikd iErto wvide l¥4utdity tic[5 with thefollowing risk pmfiles.. • Cash: vimlly EJO risk (É1.9m) • Lower-risk wrtfolio: lower risk (Q.2m) •IA)ng.tenn w0110. J1[n (the rf4naitKlerofthe WIrli0) The Charity's invcstrnent risk toluatKe wts k8.1n P)0]10 is de5criW as -mlUM- with the aim to produce rebjms that are better than those cash deFrfTrsits with a high level of Urity of (xpitsl. The aim i5 to avoid the lottg- tenn inv¢5llne¢]¢ porrfollo lo51 rnorc than 15Y• of value at a]y annualty. The Charity inteTrJs to continue to develop its eximing activities aKI to adapt tts straiegy atjd opertions tts changing ¢ir¢umstanc4 EnclAIn8 the trend of fewtt v(Trli(Ks in Europe E Asi& and to the needs of the WK)ralld dis2dv8ntag pyle in the s(Kieties where th¢ i1]rte'S sister5 WO internattolIY. STATEMENf OF TRUSTEES, PoNSIBIL[lEs The TruMees are resp(ible for preparing the Trute5. Annuaj Report and the financial statements in accordance with applicable law8] UnitLxI Kingdom Accounting staTKIar (Untted Kingdom C¢nernlly Acccpted Accounting Practice). Jhe law appli¢ableto tharitie5 ID England and Wa]es lUireS the TnL5tges of the charity to prepare financial statcments for each fir]ancia] year which give a true and farr VI of the state of affairs of the charity and of the incoming resOTceS and applicatton of resources of the charity for that perio¢L In preparing th)se financia] statemettL% the In&¢es are required to: select 5uitsble accounting wliri¢5 and then arply them Consjstwty. observe the metlM)ds and principles in the a)artties SORP. make judgements and e#irna5 that are reasonable and FnMknL stste M41ether applicable accounting standard¥ have been folknve<L subject to any maieriaj drpxrturcs disclosed and explained trt the finallcial stat¢mcTts" and prcparethe f]naThcÈal sthmentson thegoiDgconcernlwÈs unless it is iwwpriateto wesumethat this basts applt¢s. The Trnste¢s are Yespon5iblc for keepin8 pn)per accowiting records which disclose with reasonable a¢curncy * any time the financial rMTrsition of the Charity and to enable them to ensure that the fir•ncial ststements comply with the Charities A¢t2011, the Chartty (Accounts and retA)rtsl Regulation5 28 and with the articles of &ssoctation dated 9 November2015. They are also $[m)nSTb1t for 5afrguardtngthe assetsoftheChaTity and hcnce fortaking reasonable steps forth¢ prev¢TttioTt and detectton of fraud other irregtjlaritie Approved by theTnL£s on 22 S¢ptemt 20218nd signal autknris&t on their tthlf by: Siffier Marie Pitrher
INDEPENDENT AUDITORS’ REPORT TO THE TRUSTEES OF
INFANT JESUS SISTERS (NICOLAS BARRÉ) GENERALATE CIO
Opinion
We have audited the financial statements of Infant Jesus Sisters (Nicolas Barré) Generalate CIO for the year ended 31 December 2020 which comprise the Statement of Financial Activities, Balance Sheet, Statement of Cash flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is 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:
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give a true and fair view of the state of the charity’s affairs as at 31 December 2020 and of the net movement in funds for the year then ended;
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have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
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have been prepared in accordance with the requirements of the Charities Act 2011.
Basis for opinion
We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder. 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 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 trustee’s use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Other information
The trustees are responsible for the other information. The other information comprises the information included in the Trustees’ Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:
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adequate accounting records have not been kept by the charity; or
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the charity’s financial statements are not in agreement with the accounting records and returns; or
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• certain disclosures of trustees’ remuneration specified by law are not made; or
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we have not received all the information and explanations we require for our audit.
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INDEPENDENT AUDITORS’ REPORT TO THE TRUSTEES OF
INFANT JESUS SISTERS (NICOLAS BARRÉ) GENERALATE CIO
Responsibilities of trustees for the financial statements
As explained more fully in the trustees’ responsibilities statement set out on page 6, the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the trustees are responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.
Auditor’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:
Based on our understanding of the charity and the sector in which it operates, we identified that the principal risks of noncompliance with laws and regulations related to regulatory requirements of the Charity Commission, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Charities Act 2011.
We evaluated management’s opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to posting inappropriate journal entries and management bias in certain accounting estimates and judgements such as the income recognition policy applied to donation and legacies income. Audit procedures performed by the engagement team included:
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Inspecting correspondence with appropriate regulators and tax authorities;
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Discussions with management including consideration of known or suspected instances of non-compliance with laws and regulation and fraud;
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Evaluating management’s controls designed to prevent and detect irregularities;
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Review of minutes of meetings to identify instances of fraud
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Identifying and testing journals, in particular journal entries posted with unusual account combinations, postings by unusual users or with unusual descriptions; and
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Challenging assumptions and judgements made by management in their critical accounting estimates, including review of how donation or legacies income has been recognised at the year end.
A further description of our responsibilities for the audit of the financial statements is located 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 charity’s trustees, as a body, in accordance with section 144 of the Charities Act 2011 and regulations made under section 154 of that Act. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an Auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity’s trustees as a body for our audit work, for this report, or for the opinions we have formed.
Haysmacintyre LLP Statutory Auditors
10 Queen Street Place London EC4R 1AG
Date: 22 September 2021
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INFANT JESUS SISTERS (NICOLAS BARRÉ) GENERALATE CIO
STATEMENT OF FINANCIAL ACTIVITIES (incorporating the income and expenditure statement)
FOR THE YEAR ENDED 31 DECEMBER 2020
| Total | Total | ||
|---|---|---|---|
| unrestricted | unrestricted | ||
| funds | funds | ||
| 2020 | 2019 | ||
| Notes | € | € | |
| INCOME FROM: | |||
| Donations and legacies | 2 | 972,806 | 829,546 |
| Investment income | 3 | 697,133 | 771,654 |
| -------------------- | -------------------- | ||
| Total Income | 1,669,939 | 1,601,200 | |
| -------------------- | -------------------- | ||
| EXPENDITURE ON: | |||
| Charitable Activities: | |||
| Support of members and their ministry | 365,919 | 457,077 | |
| Grant expenditure | 661,829 | 1,047,013 | |
| -------------------- | -------------------- | ||
| Total Expenditure | 4 | 1,027,748 | 1,504,090 |
| -------------------- | -------------------- | ||
| NET INCOME BEFORE NET GAINS ON INVESTMENTS | 642,191 | 97,110 | |
| Net gains on investments | 6 | 862,169 | 4,953,096 |
| -------------------- | -------------------- | ||
| NET INCOME FOR THE YEAR | 1,504,360 | 5,050,206 | |
| -------------------- | -------------------- | ||
| NET MOVEMENT IN FUNDS | 1,504,360 | 5,050,206 | |
| Fund balances at 1 January 2020 | 35,353,062 | 30,302,856 | |
| -------------------- | -------------------- | ||
| FUND BALANCES AT 31 DECEMBER 2020 | €36,857,422 | €35,353,062 | |
| =========== | =========== |
There were no recognised gains and losses other than those included in the Statement of Financial Activities.
The accompanying notes form part of these financial statements.
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INFANTJESUS sisfEILS (MCOLAS BARRÉ) GENERALATE CIO BALANCE SHEET AS AT 31 DECEMBER 2020 21)20 2019 Notes FIXED ASSETS Fixed assets Investments 239,040 34.852,754 243.989 32,686205 35.091.794 32,930,194 CURRENT ASSETS Debtors Cash at bank and in hd 2.784 2.T24.876 1.850,597 1.853.420 1727,660 CREDrroRS: Amoufjts f*lling due within year (87.792) (304,792) NET CURRENT ASSETS 1,765,628 2,422,868 TOTALASSETS LESS CURREPlf LIABILITIES 36,857.422 35,353.062 Urtrestricted funds . DeSLgnat¢d . General 34,851754 1004,668 32.686.205 1666.857 36.857.422 35.353.062 Approved and authorised for i&%ue by the Trustees on 22 Sqknnbff 2021 aTKI sId on theiT behoifby: sier Ali¢¢ Kilbrid¢ The auoTnp8nying notes form wt ofthe5e financial statunu io
INFANT JESUS SISTERS (NICOLAS BARRÉ) GENERALATE CIO
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2020
| 2020 | 2019 | |||
|---|---|---|---|---|
| € | € | € | € | |
| Cash flows from operating activities: | ||||
| Net cash provided by (used in) operating activities | (266,262) | (415,334) | ||
| Cash flows from investing activities: | ||||
| Dividends, interest and rents from investments | 697,133 | 771,654 | ||
| Tangible fixed asset additions | (770) | (2,824) | ||
| Purchase of investments net of fees and cash movements |
(3,841,734) | (2,923,311) | ||
| Proceeds from sale of investments | 2,537,354 | 2,256,579 | ||
| -------------------- | -------------------- | |||
| Net cash provided by (used) in investing | ||||
| activities | (608,017) | 102,099 | ||
| -------------------- | -------------------- | |||
| Change in cash and cash equivalents in the | ||||
| reporting period | (874,279) | (313,235) | ||
| Cash and cash equivalents at the beginning of | ||||
| the reporting period | 2,724,876 | 3,038,111 | ||
| -------------------- | -------------------- | |||
| Cash and cash equivalents at the end of the | ||||
| reporting period | €1,850,597 | €2,724,876 | ||
| =========== | =========== | |||
| Reconciliation of net income to net cash flows | ||||
| from operating activities | 2020 | 2019 | ||
| € | € | |||
| Net income for the reporting period | 1,504,360 | 5,050,206 | ||
| Gains on investments | (862,169) | (4,953,096) | ||
| Depreciation | 5,719 | 5,134 | ||
| Dividends, interest and rents from investments | (697,133) | (771,654) | ||
| Increase in debtors | (39) | (96) | ||
| (Decrease)/increase in creditors | (217,000) | 254,172 | ||
| -------------------- | -------------------- | |||
| Net cash provided by/(used) in operating | ||||
| activities | €(266,262) | €(415,334) | ||
| =========== | =========== | |||
| Analysis of cash and cash equivalents | 2020 | 2019 | ||
| € | € | |||
| Cash in hand | 1,850,597 | 2,724,876 | ||
| -------------------- | -------------------- | |||
| Total cash and cash equivalents | €1,850,597 | €2,724,876 | ||
| =========== | =========== |
11
INFANT JESUS SISTERS (NICOLAS BARRÉ) GENERALATE CIO
ACCOUNTING POLICIES
FOR THE YEAR ENDED 31 DECEMBER 2020
1. ACCOUNTING POLICIES
The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are as follows:
a) Basis of preparation
The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).
The charity meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s). There are no areas of critical judgment or estimation used in the preparation of the financial statements.
b) Functional Currency
The functional current of the charity is the Euro (€).
c) Preparation of accounts on a going concern basis
The trustees consider there are no material uncertainties about the charity’s ability to continue as a going concern. The review of our financial position, reserves levels and future plans gives trustees confidence the charity remains a going concern for the foreseeable future. Financial projections have been subjected to stress tests based on extreme reductions in both investment valuation and investment income, far beyond anything so far experienced, such as might conceivably result from future actions taken internationally to restrict the spread of COVID-19 in a very adverse scenario, and it is considered that the charity would remain a going concern even in that event.
d) Income
All income is included in the statement of financial activities when the charity is entitled to the income, it is probable that income will be received, and the amount can be quantified with reasonable accuracy. The following specific policies are applied to particular categories of income:
Donations and legacies
Donations and legacies are recognised when receivable or when the Charity becomes legally entitled to them. Receipts of property, investments or other gifts in kind are included at market value.
e) Expenditure
Charitable expenditure consists of all expenditure relating to the objects of the Charity. All costs are directly attributable to the activities under which they have been analysed.
Governance costs include expenditure on the governance of the charity and its assets and are primarily associated with constitutional and statutory requirements. Irrecoverable VAT is included with the category of expense to which it relates.
Grants payable
Grants are included in the period of account when they are approved at a meeting of the Trustees.
f) Buildings and Furniture, fittings and equipment
Buildings are reported in the balance sheet at original cost. Depreciation is charged over the estimated useful life of the assets using the straight-line method on a monthly basis. Buildings are depreciated over 50 years.
Furniture, fittings and equipment are reported in the balance sheet at original cost. Depreciation is charged over the estimated useful life of the assets using the straight-line method on a monthly basis. A rate of depreciation of 20% is used.
12
INFANT JESUS SISTERS (NICOLAS BARRÉ) GENERALATE CIO
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
1. ACCOUNTING POLICIES (CONTINUED)
g) Investments
Quoted investments are valued at their closing middle market price on the balance sheet date and the gain or loss taken to the Statement of Financial Activities. All movements in value are shown in the Statement of Financial Activities.
h)
Debtors
Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.
i) Cash at bank and in hand
Cash at bank and cash in hand includes cash and short term highly liquid investments.
j) Creditors and provisions
Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.
k) Estimates and judgements
Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Although these estimates are based on the trustees’ best knowledge of the amount, events or actions, actual results ultimately differ from these estimates. The Trustees do not consider there to be any estimates and judgements.
l) Financial instruments
The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments.
Basic financial instruments, including trade and other debtors and creditors are initially recognised at transaction value and subsequently measured at their settlement value. The portfolio of investments held by the charity is included at fair value.
2.
| DONATIONS AND LEGACIES | 2020 | 2019 |
|---|---|---|
| € | € | |
| Congregation: | ||
| Malaysia | - | 512,255 |
| Thailand | 84,006 | 41,744 |
| Spain | - | 271,000 |
| Peru | 9,890 | - |
| Donation from previous Generalate | 746,628 | - |
| Other donations | 132,282 | 4,547 |
| --------------------- | --------------------- | |
| €972,806 | €829,546 | |
| ========== | ========== |
13
INFANT JESUS SISTERS (NICOLAS BARRÉ) GENERALATE CIO
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
| 3. | INVESTMENT INCOME | 2020 | 2019 |
|---|---|---|---|
| € | € | ||
| Dividend income | 694,971 | 758,398 | |
| Bank interest | 2,162 | 6,721 | |
| Exchange rate gains | - | 6,535 | |
| ---------------- | ---------------- | ||
| €697,133 | €771,654 | ||
| ======== | ======== | ||
| 4. | EXPENDITURE | Total | Total |
| 2020 | 2019 | ||
| € | € | ||
| Charitable Activities: | |||
| Support of members and their ministry: | |||
| Sisters’ living and ministry expenses | 197,093 | 160,977 | |
| Travel and international meetings | 22,188 | 152,827 | |
| Professional fees | 2,780 | 4,734 | |
| Governance costs | 10,457 | 8,751 | |
| Depreciation | 5,719 | 5,134 | |
| Grants awarded: | |||
| . Cameroon | 511,829 | 798,668 | |
| . Nigeria | 150,000 | 248,345 | |
| Loss on foreign exchange | 2,125 | - | |
| Investment management fees | 125,557 | 124,654 | |
| ---------------- | ---------------- | ||
| €1,027,748 | €1,504,090 | ||
| ======== | ======== | ||
| The charity did not have any employees in the current or preceding period. | |||
| Governance costs include: | 2020 | 2019 | |
| € | € | ||
| Auditors’ remuneration | |||
| - Audit services | €10,457 | €8,751 |
TRANSACTIONS WITH TRUSTEES
Certain Trustee expenses were borne by the Charity, but the Trustees received no remuneration or other benefits in connection with their duties as Trustees during the current or preceding year.
14
INFANT JESUS SISTERS (NICOLAS BARRÉ) GENERALATE CIO
NOTES TO THE FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED 31 DECEMBER 2020
| 5 FIXED ASSETS Cost At 1 January 2020 Additions At 31 December 2020 Depreciation At 1 January 2020 Depreciation At 31 December 2020 Net book value At 31 December 2020 At 31 December 2019 6. FIXED ASSET INVESTMENTS As at 1 January 2020 Additions less fees Disposals Net investment gains Sub total Cash held in portfolio Market value at 31 December 2020 Historical cost at 31 December 2020 |
Land and Buildings Fixtures and fittings € € 249,094 5,796 - 770 ~~--------------------~~ ~~--------------------~~ 249,094 6,566 ~~--------------------~~ ~~--------------------~~ 8,866 2,035 3,991 1,728 ~~--------------------~~ ~~--------------------~~ 12,857 3,763 ~~--------------------~~ ~~--------------------~~ €236,237 €2,803 ~~==========~~ ~~==========~~ €240,228 €3,761 ~~==========~~ ~~==========~~ 2020 € 32,166,726 3,916,738 (2,537,354) 862,169 --------------------- 34,408,279 444,475 --------------------- €34,852,754 ========== €30,065,728 ========== |
Total € 254,890 770 ~~--------------------~~ 255,660 ~~--------------------~~ 10,901 5,719 ~~--------------------~~ 16,620 ~~--------------------~~ €239,040 ~~==========~~ €243,989 ~~==========~~ 2019 € 24,185,029 5,285,180 (2,256,579) 4,953,096 --------------------- 32,166,726 519,479 --------------------- €32,686,205 ========== €29,197,739 ========== |
|---|---|---|
15
INFANT JESUS SISTERS (NICOLAS BARRÉ) GENERALATE CIO
NOTES TO THE FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED 31 DECEMBER 2020
| 7. | DEBTORS | 2020 | 2019 | |
|---|---|---|---|---|
| € | € | |||
| Prepayments and accrued income | €2,823 | €2,784 | ||
| ======= | ======= | |||
| 8. | CREDITORS: Amounts falling due within one year | 2020 | 2019 | |
| € | € | |||
| Accruals | €87,792 | €304,792 | ||
| ======= | ======= | |||
| 9. | DESIGNATED FUNDS | |||
| Designated | ||||
| 1 January | in the | 31 December | ||
| 2020 | year | 2020 | ||
| € | € | € | ||
| Investment portfolio | ||||
| €32,686,205 | €2,166,549 | €34,852,754 | ||
| ========== | ======== | ========== | ||
| Designated | ||||
| 1 January | in the | 31 December | ||
| 2019 | year | 2019 | ||
| € | € | € | ||
| Investment portfolio | ||||
| €27,066,378 | €5,619,827 | €32,686,205 | ||
| ========== | ======== | ========== |
The Trustees of the Charity have designated €34,852,754 (2019: €32,686,205) the majority of its funds, to be invested in assets which generate income to pay for its charitable activities.
| 10. | ANALYSIS OF ASSETS AND LIABILITIES BETWEEN FUNDS | ANALYSIS OF ASSETS AND LIABILITIES BETWEEN FUNDS | ||
|---|---|---|---|---|
| 2020 | Fixed assets | Net current | ||
| & investments | assets | Total | ||
| € | € | € | ||
| Unrestricted funds: | ||||
| General | 239,040 | 1,765,628 | 2,004,668 | |
| Designated | 34,852,754 | - | 34,852,754 | |
| ----------------------------- | --------------------------- | -------------------------- | ||
| €35,091,794 | €1,765,628 | €36,857,422 | ||
| ============== | ============= | =============== | ||
| 2019 | Fixed assets | Net current | ||
| & investments | assets | Total | ||
| € | € | € | ||
| Unrestricted funds: | ||||
| General | 243,989 | 2,422,868 | 2,666,857 | |
| Designated | 32,653,218 | 32,987 | 32,686,205 | |
| ------------------------------ | ----------------------------- | ------------------------------ | ||
| €32,897,207 | €2,455,855 | €35,353,062 | ||
| ============== | ============== | ============== |
16
INFANT JESUS SISTERS (NICOLAS BARRÉ) GENERALATE CIO
NOTES TO THE FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED 31 DECEMBER 2020
11. RELATED PARTY TRANSACTIONS
There were no related party transactions in the current or preceding year.
12. POST BALANCE SHEET EVENTS
The Trustees have sold the property located at 22 Hexham Close since year end. The sales proceeds will be used towards the Charity's objectives and activities.
17