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2021-12-31-accounts

The Dominican Congregation of Saint Catherine of Siena of Oakford, Natal CIO

Annual Report and Accounts

31 December 2021

Charity Registration Number 1165125

Contents

Reports

Reports Reports
Reference and administrative details of the
charity, its trustees and advisers 1
Report of the trustees 2
Independent examiner’s report
Accounts
Statement of financial activities 12
Balance sheet 13
Statement of cash flows 14
Principal accounting policies 15
Notes to the accounts 19

The Dominican Congregation of Saint Catherine of Siena of Oakford, Natal CIO

Reference and administrative details of the charity, its trustees and advisers

Trustees Sister Pauline van der Walt
Sister Eileen Airey
Sister Margaret Muldoon
Registered Office C/O Daughters of Charity of St Vincent de Paul
Provincial House
The Ridgeway
Mill Hill
London
NW7 1RE
Congregational Prioress Sister Pauline van der Walt
Telephone 020 8959 2257
e-mail paula-mary@oakfordop.com
Charity Registration Number 1165125
Independent examiner Amanda Francis
Buzzacott LLP
130 Wood Street
London
EC2V 6DL
Bankers HSBC Bank plc
99 High Street
Chelmsford
Essex
CM1 1EQ
Solicitors Stone King LLP
91 Charterhouse Street
London
EC1M 6HL
Investment managers Sarasin & Partners
Juxon House
100 St Paul’s Churchyard
London
EC4M 8BU

The Dominican Congregation of Saint Catherine of Siena of Oakford, Natal CIO 1

Report of the trustees Year to 31 December 2021

The trustees present their report together with the accounts of The Dominican Congregation of Saint Catherine of Siena of Oakford, Natal CIO (the charity or the CIO) for the year to 31 December 2021.

The accounts have been prepared in accordance with the accounting policies set out on pages 15 to 18 and comply with applicable laws 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 United Kingdom and Republic of Ireland (FRS 102).

Introduction

The Dominican Congregation of Saint Catherine of Siena of Oakford, Natal CIO is a Charitable Incorporated Organisation (CIO) registered with the Charity Commission and governed by a constitution dated 11 January 2016.

Principal activities, objectives and aims

The CIO was set up to continue the work of The Dominican Sisters of the Congregation of Saint Catherine of Siena of Oakford, English Area, and the charity’s constitution states its objective to be the “advancement of the Roman Catholic religion through the religious and other charitable work of the Congregation as the trustees with the approval of the Congregational Prioress shall from time to time think fit”.

The charity aims to support the Sisters and other charitable services carried out by the Sisters/members of the Congregation and to continue to care for those members throughout their lives within the Congregation, and particularly those remaining in England.

The trustees confirm that they have complied with the statutory duty to have due regard to the public benefit guidance published by the Charity Commission in determining the activities undertaken by the charity. In particular the trustees consider how planned activities will contribute to the aims and objectives of the CIO.

All our Sisters in the UK have now retired from paid work but their stipends and pensions are donated to the charity under Gift Aid or Deed of Covenant.

Review of the year, activities and performance

As of 2021, one Oakford Dominican Sister remains in England. This has been an enormously challenging reality for Sister to cope with on her own, and the ongoing pandemic did not allow for any of our overseas Sisters to visit. Furthermore, even Sister’s friends, family and former parishioners were unable to call in on her.

The Dominican Congregation of Saint Catherine of Siena of Oakford, Natal CIO 2

Report of the trustees Year to 31 December 2021

Review of the year, activities and performance (continued)

The elderly in care and nursing facilities found this hugely challenging as while they were being protected by their carers from the virus, they did not always understand why they could not go out, nor have visitors. Our Sister, and all her companions, became very frustrated and some even depressed by the Covid-19 Virus, its variants and the protocols in place to protect lives. The Leadership tried to meet with Sister on Zoom, with the assistance of the Activities Director at the Home, but our Sister could not fathom why she had to watch “TV” to see and communicate with us. Why were we not visiting her personally? Even when this was explained many times, it was beyond her understanding. In addition, Sister’s eyesight and hearing were both diminishing, and she was not able to make sense of any of this!

We owe a debt of enormous gratitude to all the front-line workers, carers and staff who attended to the elderly, those infected, affected and dying during this time of the pandemic.

The three retired Sisters from the UK continue to serve as volunteers in South Africa

The most senior of our Sisters from the UK has been accompanying people searching for spiritual and faith formation, and simply taking time to pray and reflect in our Retreat Centre in KwaZulu-Natal. Covid-19 stopped retreatants from attending in person, and when this changed and opened up, the Sisters at the Centre put all protocols in place to have inperson retreats once more. Sister Carol Mouat had been motivated to learn, explore and find her way around the ‘virtual world’. She has now developed online retreats, workshops and programmes for people who desire to spend time with God and deepen their relationship with the Creator, and to get to know themselves better. Another of our UK retirees, Sister Pru Cooper, has responded to the call of those who asked for personal spiritual direction in prayer, and this too is done online with people in different parts of the world … everyone in their own space, … at their own computer, … seeking the Lord.

The third retired Sister from the UK, volunteering in South Africa, is Sister Bernadette Hurley who volunteers in our South African Retirement / Care Home for our Sisters. Once again, a challenging ministry caring for our thirty-two senior Sisters in the pandemic. Gratefully, not a single one contracted the virus in our facility in Pietermaritzburg. While Sister Bernadette is a trained nurse, she takes special care of the religious and community life of our aging Sisters ensuring that they can live their vowed life till they are called home to the Creator.

The trustees’ work in the CIO this past year

The trustees met four times during the year 2021: February; May; July and September. All the 2021 CIO meetings were held via Zoom and all trustees were present at these meetings.

The trustees gave attention to their responsibilities for the CIO in terms of:

The Dominican Congregation of Saint Catherine of Siena of Oakford, Natal CIO 3

Report of the trustees Year to 31 December 2021

Review of the year, activities and performance (continued)

The trustees’ work in the CIO this past year (continued)

The trustees also participated in different meetings and programmes to better understand our roles and responsibilities as trustees:

Future plans

The trustees recognise that the CIO will continue to care for the remaining Sister in England; connecting when possible given the Covid restrictions.

The Oakford Dominican Sisters celebrated a very small Centenary Celebration of “Thanksgiving” for the lives and work of the Oakford Sisters who had lived and served in England. Due to Covid restrictions, the Eucharistic Celebration was livestreamed from the Parish Church of St Luke, in Pinner. The Oakford Sisters in the US, Germany and South Africa felt included in the celebration even though it was not possible to be present in person.

We were most grateful to all who made it possible for us to honour the lives of those of our Sisters who had lived and ministered in the many different places in England during the 100 years of our presence and their service to God and God’s people!

In T H A N K S G I V I N G for the 100 years of dedicated love and service of the Dominican Sisters of Oakford in E N G L A N D

The Dominican Congregation of Saint Catherine of Siena of Oakford, Natal CIO 4

Report of the trustees Year to 31 December 2021

Future plans (continued)

Oakford Priory Tower, at the Motherhouse of the Oakford Dominican Sisters in KwaZuluNatal, South Africa

A limited number of parishioners, some friends and staff from St Vincent’s Nursing Home were able to be present in person at the interment of Sister Maura’s remains. Gratefully this too could be viewed online by Sisters, family, and many friends in the US, Germany, South Africa and Ireland.

The Garden of Remembrance at St Luke’s Parish in Pinner, where three of the Oakford Sisters’ ashes have been interred.

The diminishing numbers and age profile of the members of the Congregation as a whole, suggests that larger projects are not likely to be attempted. Each member will continue to give herself fully to living the Gospel Values in ways which invite and encourage others to do the same. The resources will be monitored to ensure that the assets, material and spiritual, will be for the benefit of those being cared for in their senior years.

The trustees will also continue to promote and work with the Object of the CIO in the advancement of the Roman Catholic religion and other charitable work of the Congregation (Constitutions of the CIO 1165125 no 3 page 2).

The trustees acknowledge with deep gratitude the Provincial Leadership of the Daughters of Charity of St Vincent de Paul, of the British Province for once more providing support and guidance from their own experience and expertise. The financial and administrative support of their personnel has been invaluable to the CIO and trustees.

We also thank the Congregations of the Holy Family Sisters of Bordeaux and Bushey Dominicans for allowing their Sisters to serve as trustees. We thank the special Friends of the charity who are always willing to support the tiny remnant of our Oakford Sisters in the UK. Without all the above-named persons, and so many others, we would not have been able to care for our Sisters as we have done. We thank you and promise you our prayerful support.

The Dominican Congregation of Saint Catherine of Siena of Oakford, Natal CIO 5

Report of the trustees Year to 31 December 2021

Financial review for the year

Results for the year

The total income for the year was £97,679 (2020 - £81,160).

During the year, the charity incurred expenditure of £97,190 (2020 - £151,335). The majority of the expenditure relates to the costs of providing care for the elderly Sisters in the UK which amounted to £73,647 (2020 - £135,112).

The number of Sisters in the English Area has diminished drastically and during the year there was only one Sister remaining. The charity no longer operates any institutions and there is very little earned income. The Sisters volunteering in South Africa also donate their pensions to the charity to support those dependent on the charity in the UK.

The net income for the year was £238,476 (2020 – net expenditure £109,606) after investment gains of £237,987 (2020 – investment losses £39,431).

Investment policy and performance

The Trustees made a decision in the year to transfer their investments to Sarasin & Partners LLP following a review of their assets. In addition to the investment portfolio previously managed by Schroder Unit Trusts Limited, an further £2 million was transferred from liquid assets into the investment portfolio to maximise the income potential. These transactions took place during March 2021.

The trustees meet annually with Sarasin & Partners to ensure the funds are managed in accordance with the ethical and religious principles of the Congregation. The aim of the portfolio is to enhance the capital value over the longer-term whilst generating sufficient income to support the ongoing activities of the Dominican Congregation of Saint Catherine of Siena of Oakford, Natal CIO.

The trustees have invested in the Sarasin Climate Active Endowment CAI fund. The policy of this fund will avoid investments in tobacco, and restrict investments in arms, gambling, alcohol, pornography, thermal coal and tar sands.

In the year to 31 December 2021 the charity’s investments generated an income return of 2.21% (2020 – 3.08%) and a total return (that is after taking account of growth/losses in value) of 11.7% (2020 – minus 2.36%). The portfolio saw a strong performance over the final quarter of 2021 and the trustees are happy with the return generated.

Reserves policy and financial position

At the end of 2021, the total assets of the charity were £4.0 million (2020 – £3.8 million). Funds of £1 million (2020 - £1 million) have been designated to provide support for the older members of the Area. The Oakford sharing fund stood at £567,372 (2020 - £579,372) and is held primarily to finance Sisters from outside of the UK during visits to England for such matters as formation and sabbaticals. The remaining designated funds comprise £1.8 million (2020 - £1.8 million) to support the Congregation’s overseas missions.

The Dominican Congregation of Saint Catherine of Siena of Oakford, Natal CIO 6

Report of the trustees Year to 31 December 2021

Financial review for the year (continued)

Reserves policy and financial position (continued)

The general funds of the charity stood at £670,033 at 31 December 2021 (2020 – £419,557). This is higher than the trustees’ policy which is to hold around the equivalent of one year of recurring expenditure as free reserves. It is anticipated that deficits will occur in the next few years due to the increased costs of maintaining elderly Sisters and a reassessment of financial needs is being undertaken which may result in additional amounts being withdrawn from designated funds. It is also anticipated that in the aftermath of the Covid-19 virus, and given the current macroeconomic and geopolitical environment, investment values may be volatile and the income thereon may diminish in 2022 and 2023.

Details of the funds and their composition are set out in the notes to the accounts.

Governance, structure and management

Governance

According to Church Law, the Congregation is governed at an international level by the Congregational Prioress and her Congregational Leadership Team of four Councillors with the Generalate/Headquarters in Johannesburg, South Africa. The leadership team is elected every six years at the General/Congregational Chapter by representatives of the four geographic Areas of the Congregation. One of the Councillors is responsible for the Sister in England; the other three Councillors each has responsibility for the Sisters in Germany, South Africa and the USA respectively.

In terms of civil law in England, the charity is governed by its constitution which is dated 11 January 2016. It is a registered charity – the Charity Registration Number is 1165125. Two of the trustees are members of Dominican Congregations and therefore have a good sense and knowledge of “The Dominican Congregation of Saint Catherine of Siena of Oakford, Natal CIO” charity and its structure. The third member, also from a Religious Congregation, has had much experience serving as a trustee in other charities.

Trustees’ responsibilities statement

The trustees are responsible for preparing the report of the trustees and accounts 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 accounts for each financial period which give a true and fair view of the state of affairs of the charity and of the income and expenditure of the charity for that period. In preparing these accounts, the trustees are required to:

The Dominican Congregation of Saint Catherine of Siena of Oakford, Natal CIO 7

Report of the trustees Year to 31 December 2021

Governance, structure and management (continued)

Trustees’ responsibilities statement (continued)

The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the accounts comply with the Charities Act 2011, applicable Charity (Accounts and Reports) Regulations and the provisions of the charity’s constitution. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Structure and management reporting

The trustees are ultimately responsible for the policies, activities and assets of the charity. They meet regularly to review developments in connection with the charity and its activities and make important decisions. They seek the advice of the charity’s professional advisers, including investment managers, accountants, property consultants and solicitors.

Key management personnel

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

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

Public benefit

The trustees have had regard to the guidance on public benefit issued by the Charity Commission.

Risk management

The trustees undertake an annual review of the principal risks and uncertainties that the charity faces, categorising the risks between those affecting the governance and management of the charity, operational risks, financial risks, reputational risks and those which occur because of circumstances outside of the charity's control such as changes in government policy, laws and regulations. They regularly review the measures already in place, or needing to be put in place, to establish policies, systems and procedures to mitigate those risks identified in the annual review and ensure that action is taken to implement changes to those policies, systems and procedures should they be needed to minimise or manage any potential impact on the charity should those risks materialise.

The Dominican Congregation of Saint Catherine of Siena of Oakford, Natal CIO 8

Report of the trustees Year to 31 December 2021

Governance, structure and management (continued)

Risk management (continued)

The trustees have identified five main areas where risks may occur: governance and management; operational; financial; reputational; and regulatory.

Governance and Management looks at the risk of the Congregation, and hence the charity, suffering from a lack of membership and capacity in the area of skills and training, a lack of lack of direction, and good creative use of its resources.

Operational looks at the risks inherent in the charity’s activities including the members of the Congregation engaging in inappropriate activities, the unsuitability of buildings, poor maintenance, shortcomings in the services provided, poor health and safety, etc.

Financial risks include those arising as a result of global markets falling, poor budgetary control, inappropriate spending, poor accounting, inappropriate investment policies, etc.

Reputational looks at possible damage to the Congregation’s, and hence the charity’s, reputation.

Regulatory looks at the effects of government policies, the consequences of noncompliance with laws and regulations and poor risk assessment.

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

The key risk for the charity is described below together with the principal ways in which it is mitigated:

The Dominican Congregation of Saint Catherine of Siena of Oakford, Natal CIO 9

Report of the trustees Year to 31 December 2021

Governance, structure and management (continued)

Fundraising policy

The charity aims to achieve best practice in the way in which it communicates with donors and other supporters. It takes care with both the tone of its communications and the accuracy of its data to minimise the pressures on supporters. It applies best practice to protect supporters’ data and never sells data, it never swaps data and ensures that communication preferences can be changed at any time. The charity does not employ the services of professional fundraisers. The charity undertakes to react to and investigate any complaints regarding its fundraising activities and to learn from them and improve its service. The charity received no complaints about its fundraising activities in either 2021 or 2020.

Signed on behalf of the trustees

Sister Pauline van der Walt

Trustee

Approved by the trustees on: 22/06/2022

The Dominican Congregation of Saint Catherine of Siena of Oakford, Natal CIO 10

Independent examiner’s report Year to 31 December 2021

Independent examiner’s report to the trustees of The Dominican Congregation of Saint Catherine of Siena of Oakford, Natal CIO

I report to the trustees on my examination of the accounts of The Dominican Congregation of Saint Catherine of Siena of Oakford, Natal CIO (the charity) for the year ended 31 December 2021.

Responsibilities and basis of report

As the trustees of the charity you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (‘the Act’).

I report in respect of my examination of the charity’s accounts as carried out under section 145 of the Act. In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.

Independent examiner’s statement

I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

Buzzacott LLP 12 July 2022 Chartered Accountants 130 Wood Street London EC2V 6DL

The Dominican Congregation of Saint Catherine of Siena of Oakford, Natal CIO 11

Statement of financial activities Year to 31 December 2021

Notes 2021
Total
funds
£		 2020
Total
funds
£
Income:
Donations
1
Investment income and interest receivable
2
Surplus on disposal of tangible fixed assets
Total income
Expenditure:
Charitable activities
. Support of members of the Congregation and their ministry
3
Total expenditure
Net income (expenditure) for the year before net investment
gains (losses)
5
Net investment gains (losses)
7
Net movement in funds
Reconciliation of funds:
Total funds brought forward at 1 January 2021
Total funds carried forward at 31 December2021
38,534

59,145
—		 46,507
34,503
150
97,679 81,160

97,190		 151,335
97,190 151,335

489
237,987		 (70,175)
(39,431)
238,476
3,798,929		 (109,606)
3,908,535
4,037,405 3,798,929

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

All income and expenditure for the above two financial periods was unrestricted.

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

The Dominican Congregation of Saint Catherine of Siena of Oakford, Natal CIO 12

Balance sheet 31 December 2021

Notes 2021
£		 2021
£		 2020
£		 2020
£
Fixed assets
Investments
7
Current assets
Debtors
Cash at bank and in hand
Liabilities
Creditors: amounts falling due
within one year
8
Net current assets
Total net assets
Represented by:
The funds of the charity
Unrestricted funds
. General funds
. Designated funds
9		 400
1,139,856		 2,923,190
1,114,215		 —
3,139,767		 685,203
3,113,726
1,140,256
(26,041)		 3,139,767
(26,041)
4,037,405 3,798,929
670,033
3,367,372		 419,557
3,379,372
4,037,405 3,798,929

Approved by the trustees and signed on their behalf by:

Sister Pauline van der Walt

Trustee

Approved on: 22/06/2022

The Dominican Congregation of Saint Catherine of Siena of Oakford, Natal CIO 13

Statement of cash flows Year to 31 December 2021

A
B		 Notes
2021
£		 2020
£
Cash flows from operating activities:
Net cash used in operating activities
A
Cash flows from investing activities:
Investment income received
Purchase of investments

Proceeds from disposal of tangible fixed assets
Net cash (used in) provided by investing activities

Change in cash and cash equivalents in the period

Cash and cash equivalents at 1 January 2021
Cash and cash equivalents at 31 December 2021
B
(59,056)		 (107,208)
59,145
(2,000,000)
—		 34,503
—
150
(1,940,855) 34,653
(1,999,911)
3,139,767		 (72,555)
3,212,322

1,139,856		 3,139,767
2020
£
Net movement in funds (as per the statement of financial activities)
Adjustments for:
(Gains) losses on listed investments
Investment income receivable
Surplus on disposal of tangible fixed assets
Increase in debtors
Decrease in creditors
Net cash used in operating activities		 238,476
(237,987)
(59,145)
—
(400)
—		 (109,606)

39,431

(34,503)
(150)

—
(2,380)
(59,056)
(107,208)
Analysis of cash and cash equivalents
Total cash and cash equivalents:Cash at bank and in hand		 2021
£
1,139,856

2020
£
3,139,767

No separate reconciliation of net debt has been prepared as there is no difference between the net cash (debt) of the charity and the above cash and cash equivalents.

The Dominican Congregation of Saint Catherine of Siena of Oakford, Natal CIO 14

Principal accounting policies 31 December 2021

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

Basis of preparation

These accounts have been prepared for the year to 31 December 2021 with comparative information given in respect to the year to 31 December 2020.

The charity was incorporated on 11 January 2016 in England and Wales. The address of the administrative office of The Dominican Sisters of the Congregation of Saint Catherine of Siena of Oakford English Area is Provincial House, The Ridgeway, Mill Hill, London, NW7 1RE.

The accounts have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant accounting policies below or the notes to these accounts. The accounts are presented in sterling and are rounded to the nearest pound.

The accounts 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 United Kingdom and Republic of Ireland (Charities SORP FRS 102), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.

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

Assessment of going concern

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

The trustees acknowledge and recognise the effect of the current macroeconomic and geopolitical environment and also the effect of the aftermath of the Covid-19 pandemic on society including the charity. Whilst they recognise that there may be some negative consequences such as fluctuations in the value of the investment portfolio and reductions in related income, the trustees are of the opinion that the charity will have sufficient resources to meet its liabilities as they fall due. The trustees of the charity have concluded that there are no material uncertainties related to events or conditions that may cast significant doubt on the ability of the charity to continue as a going concern.

With regard to the year ending 31 December 2022, the most significant areas that may affect the carrying value of the assets held by the charity are the level of investment return and the performance of the investment markets (see the investment policy and the risk management sections of the report of the trustees for more information).

The Dominican Congregation of Saint Catherine of Siena of Oakford, Natal CIO 15

Principal accounting policies 31 December 2021

Critical accounting estimates and areas of judgement

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

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

The trustees have assessed the impact of the aftermath of the Covid-19 pandemic and the current macroeconomic and geopolitical environment on the charity’s future income and expenditure flows and on its financial position especially in the light of the performance of investments values (see assessment of going concern above).

Income recognition

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

Income comprises donations, investment income and the surplus on the sale of tangible fixed assets.

Donations, including pensions of individual religious received under Gift Aid or deed of covenant, are recognised when the charity has confirmation of both the amount and settlement date. In the event of donations pledged but not received, the amount is accrued for where the receipt is considered probable. In the event that a donation is subject to conditions that require a level of performance before the charity is entitled to the funds, the income is deferred and not recognised until either those conditions are fully met, or the fulfilment of those conditions is wholly within the control of the charity and it is probable that those conditions will be fulfilled in the reporting period.

Dividends are recognised once the dividend has been declared and notification has been received of the dividend due. Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the bank.

The surplus on the disposal of tangible fixed assets represents the difference between the disposal proceeds (net of the costs of disposal) and the net book value of the relevant asset immediately prior to disposal. The surplus is recognised at the point when legal title to the asset moves from the charity.

The Dominican Congregation of Saint Catherine of Siena of Oakford, Natal CIO 16

Principal accounting policies 31 December 2021

Expenditure recognition

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

All expenditure is accounted for on an accruals basis. Expenditure comprises direct costs and support costs. All expenses, including support costs, are allocated or apportioned to the applicable expenditure headings.

Expenditure on charitable activities includes all costs associated with furthering the charitable purposes of the charity through the provision of its charitable activities. Such costs include costs in respect to the support of members of the Congregation and enabling their ministry, including governance costs.

All expenditure is stated inclusive of irrecoverable VAT.

Support and governance costs

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

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

All expenditure on support and governance is attributed directly to the charitable activities of supporting members of the Congregation and enabling their ministry.

Fixed asset investments

Listed investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date using the closing quoted market price.

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

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

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

The Dominican Congregation of Saint Catherine of Siena of Oakford, Natal CIO 17

Principal accounting policies 31 December 2021

Debtors

Debtors are recognised at their settlement amount, less any provision for nonrecoverability.

Cash at bank and in hand

Cash at bank and in hand represents such accounts and instruments that are available on demand or have a maturity of less than three months from the date of acquisition.

Creditors

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

Fund accounting

The funds of the charity comprise unrestricted funds available for use in furtherance of the charity’s objectives at the discretion of the trustees. Within the total unrestricted funds are three designated funds – the retirement fund, the Oakford sharing fund and the overseas missions fund. Details of these funds are provided in note 9.

Services provided by members

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

The Dominican Congregation of Saint Catherine of Siena of Oakford, Natal CIO 18

Notes to the accounts 31 December 2021

1 Donations

2021
Total
funds
£
38,534		 2020
Total
funds
£
46,507
Pensions of individual religious received under deed of covenant and
gift aid

2 Investment income and interest receivable

2021
Total
funds
£		 2020
Total
funds
£
Income from listed investments
. Unit trusts
. Multi asset funds
Interest received
.Investment Interest
. Bank interest		 6,065
52,918		 22,347
—
58,983
16
146		 22,347
—
12,156
59,145 34,503

3 Support of members of the Congregation and their ministry

2021
Total
funds
£		 2020
Total
funds
£
Sisters' living and personal expenses
Nursing care and medical costs
Education, training and spiritual renewal
Support costs
Governance costs (note 4)		 4,202
73,647
12,000
5,121
2,220		 5,608
135,112
5,055
2,626
2,934
97,190 151,335

4 Governance costs

4 Governance costs
5 2021
Total
funds
£		 2020
Total
funds
£
Professional fees 2,220 2,934
Independent examiner’s remuneration 2,280 2,280

The Dominican Congregation of Saint Catherine of Siena of Oakford, Natal CIO 19

Notes to the accounts 31 December 2021

6 Taxation

The Dominican Congregation of Saint Catherine of Siena of Oakford, Natal CIO is a registered charity and, therefore, is not liable to income tax or corporation tax on income derived from its charitable activities, as it falls within the various exemptions available to registered charities.

7 Investments

2021
£		 2020
£
Listed investments
Fair (market) value at 1 January 2021
Additions
Net unrealised investment (losses) gains
Fair (market) value at 31 December 2021
Cost of listed investments at 31 December 2021		 685,203
2,000,000
237,987		 724,634
—
(39,431)
2,923,190 685,203
2,669,858 605,071

Listed investments comprised the following:

2021
£		 2020
£
Sarasin Climate Active Endowment Fund
Schroders Equity Income Trust for Charities
Schroders Income Trust for Charities		 2,923,190
—
—		 —
305,204
379,999
2,923,190 685,203

8 Creditors: amounts falling due within one year

Creditors: amounts falling due within one year
2021
£		 2020
£
Accruals
Amount administered on behalf of a member of the Congregation		 2,280
23,761		 2,280
23,761
26,041 26,041

The Dominican Congregation of Saint Catherine of Siena of Oakford, Natal CIO 20

Notes to the accounts 31 December 2021

9 Designated funds

The income funds of the charity include the following funds which comprise monies set aside by trustees for a particular purpose.

At 1
January
2021
£		 Transfers
£
Net
income
£		 At 31
December
2021
£
Retirement fund
The Oakford sharing fund
Overseas missions fund		 1,000,000
579,372
1,800,000		 —
(12,000)
—
—

—

—		 1,000,000
567,372
1,800,000
3,379,372 (12,000) — 3,367,372
At 1
January
2020
£		 Transfers
£
Net
income
£		 At 31
December
2020
£
Retirement fund
The Oakford sharing fund
Overseas missions fund		 1,000,000
584,427
1,800,000		 (46,739)
7,308
—
46,739

(12,363)

—		 1,000,000
579,372
1,800,000
3,384,427 (39,431) 34,376 3,379,372

Retirement fund

A fund has been designated to provide for the charity’s commitment to provide for the retirement and care in old age and sickness of the Congregation’s members.

The Oakford sharing fund

This fund is intended for:

Overseas missions fund

This fund comprises monies available to support the Congregation’s overseas missions.

The Dominican Congregation of Saint Catherine of Siena of Oakford, Natal CIO 21

Notes to the accounts 31 December 2021

10 Analysis of net assets between funds

The fund balances are represented by the following assets and liabilities:

Designated
funds
£		 General
funds
£		 Total
net
assets
£
Fund balances at 31 December 2021 are
represented by:
Investments
Current assets
Current liabilities
Total net assets		 2,923,190
467,943
(23,761)		 —
672,313
(2,280)		 2,923,190
1,140,256
(26,041)
3,367,372 670,033 4,037,405
Designated
funds
£		 General
funds
£		 Total
net
assets
£
Fund balances at 31 December 2020 are
represented by:
Investments
Current assets
Current liabilities
Total net assets		 685,203
2,717,930
(23,761)		 —
421,837
(2,280)		 685,203
3,139,767
(26,041)
3,379,372 419,557 3,798,929

The total unrealised gains as at 31 December 2021 constitute movements on revaluations and are as follows:

2021
£		 2020
£
80,132
119,563
—
(39,431)
80,132
Total unrealised gains included above:
On investments
Reconciliation of movements in unrealised gains
Unrealised gains at 1 January 2021
In respect to disposals in the year
Net gains (losses) arising on revaluation in the year
Unrealisedgains at 31 December 2021		 253,332
80,132
(64,787)
237,987
253,332

11 Staff costs and remuneration of trustees and key management personnel

No trustee received any remuneration or reimbursement of expenses in connection with their duties as trustees (2020 - none).

During the year, the total amount donated by the trustees to the charity was £nil (2020 – £nil).

During the year to 31 December 2021 the charity employed no staff (2020 – none) and therefore incurred £nil staff costs (2020 - £nil).

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

The Dominican Congregation of Saint Catherine of Siena of Oakford, Natal CIO 22

Notes to the accounts 31 December 2021

12 Ultimate control

The charity, which is constituted as a CIO, was controlled throughout the period by the Dominican Congregation of Saint Catherine of Siena Oakford, Natal by virtue of the fact that the Congregational Prioress appoints the trustees.

The Dominican Congregation of Saint Catherine of Siena of Oakford, Natal CIO 23