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2021-07-31-accounts

Sisters of Christian Education CIO

Annual Report and Accounts

31 July 2021

Charity Registration Number 1177158

Contents

Reports
Reference and administrative information 1
Trustees’ report 3
Independent auditor’s report 18
Accounts
Statement of financial activities 23
Balance sheet 24
Statement of cash flows 25
Principal accounting policies 26
Notes to the accounts 31

Sisters of Christian Education CIO

Reference and administrative information 31 July 2021

Trustees Sister Mary Dawson RCE
Sister Elizabeth McCormack RCE
Sister Cara Nagle RCE
Sister Rosemary O’Looney RCE
Cdr Anthony John Woolston (CDipAF)
Provincial Superior Sister Rosemary O’Looney RCE
Provincial Bursar Sister Cara Nagle RCE
Principal address 2 Woodland Crescent
Farnborough
Hampshire
GU14 8BF
Charity registration number 1177158
Auditor Buzzacott LLP
130 Wood Street
London
EC2V 6DL
Principal bankers National Westminster Bank plc
PO Box 41
1 Queensmead
Farnborough
Hampshire
GU14 7YS
Investment managers Charles Stanley & Co Limited
25 Luke Street
London
EC2A 4AR
Investec Wealth & Investment Limited
2 Gresham Street
London
EC2 7QP
Solicitors Stone King LLP
13 Queen Square
Bath
BA1 2HJ

Sisters of Christian Education CIO 1

Reference and administrative information 31 July 2021

Property consultants Savills plc 244-246 High Street Guildford GU1 3JF

Sisters of Christian Education CIO 2

Trustees’ report 31 July 2021

The trustees present their report together with the accounts of the Sisters of Christian Education CIO (the “charity” or the “CIO”) for the year to 31 July 2021.

The accounts have been prepared in accordance with the accounting policies set out on pages 26 and 30 and comply with applicable United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). The principles set out in 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 Sisters of Christian Educational CIO is a Charitable Incorporated Organisation (CIO) registered with the Charity Commission (Charity Registration Number 1177158) and governed by a Constitution dated 14 February 2018.

Principal activities, objectives and aims

The Institute of Christian Education (the Institute) is a Roman Catholic Religious Institute founded in Échauffour, Normandy in 1817. The Institute is international, operating in England, Ireland, France and America. The Generalate is based in Paris. The Institute is governed by its own constitution.

The assets of the Institute in United Kingdom were, until 31 July 2019, held by the unincorporated charity Educating Children In The Roman Catholic Faith Administered in Connection With the Institute Of Christian Education And Other Roman Catholic Purposes, commonly known as the Institute of Christian Education Charitable Trust (Charity Registration Number 244663) (the “charitable trust”).

The CIO was set up to continue the religious and certain educational work of the charitable trust. With effect from 1 August 2019 certain assets, liabilities and activities of the unincorporated charity were transferred to the CIO.

The objects of the CIO are the advancement of the Roman Catholic religion through the religious and other charitable work of the Institute, and aiding or promoting the advancement of the education of children in accordance with the principles and doctrines of the Roman Catholic religion, in particular by, but not limited to, the support of schools and other educational establishments that are conducted in accordance with the principles and subject to the regulations and discipline of the Roman Catholic Church, as the trustees with the approval of the Provincial Superior shall from time to time think fit.

Mission

By caring for individual members of the Institute throughout their lives with the Institute, the charity aims to enable and support the sisters to live out their faith and to put that faith into practice through a wide variety of religious and other charitable works.

The religious and charitable works of individual members of the Institute can be divided into the following principal areas: education, worship and prayer, the social and pastoral work of the sisters and the support of overseas missionary work.

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Trustees’ report 31 July 2021

Mission (continued)

The trustees of the charity aim to support all charitable, social and pastoral works being carried out by members of the Institute. These ministries carried out by the sisters all benefit members of the public.

Public benefit

The trustees confirm that they have referred to the Charity Commission’s guidance on public benefit in reviewing the charity’s aims, objectives and future plans. Details of how the charity fulfils this responsibility are given above and in the activities and objectives section below.

Activities and objectives

An overview of activities

The aims of the charity are to care for individual members of the Institute throughout their lives with the Institute and so enable and support them to live out their faith and to put that faith into practice through a wide variety of religious and other charitable works.

1. Caring for members of the Institute

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Age profile of sisters at 31 July 2021
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Trustees’ report 31 July 2021

Activities and objectives (continued)

An overview of activities (continued)

1. Caring for members of the Institute (continued) The Institute has an obligation, both moral and legal, to provide care for its members, none of whom have resources of their own and all of whom have devoted a significant part of their lives to the education of the young, the care of the elderly, poor and marginalised in society. As the age profile of the Institute increases, so too does the need to provide increasing and increasingly expensive care to the sisters. At present three of the members of the Institute are receiving care in nursing homes. The trustees are giving careful consideration to the impact of this on the work of individual members of the Institute, the property requirements of the Institute and the financial implications. In this regard, the objectives of the trustees of the charity over the current year are summarised below. All of these objectives will continue to be applicable for the next few years also.

2. Enabling and supporting members in a variety of religious and charitable works The religious and charitable works of individual members of the Institute can be divided into the following principal areas: education, worship and prayer, the social and pastoral work of the sisters and the support of overseas missionary work. Due to the small number of members, most of this work is now carried on through financial support for projects that are in line with the objects of the charity. The areas supported included:

Covid-19 restrictions did impede some of the charitable work. However, the provision of financial aid was still possible.

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Trustees’ report 31 July 2021

Activities and objectives (continued)

An overview of activities (continued)

2. Enabling and supporting members in a variety of religious and charitable works (continued)

Education

The charity was able to support both the education of young sisters and brothers as well as other students. Four of the organisations helped express what a difference this support has meant for them and their organisations as follows:

“ Due to the generosity of the Sisters of Christian Education we have been able to support various training programmes for sisters in our missions overseas. This includes upgrading the original nursing and teaching qualifications held by individuals so that they can continue running our schools and hospital serving the poor and needy. The donation has also helped to train sisters as formators so that they in turn enable others to become committed members of our Congregation and carry on the work of caring and education .” Benedictine Sisters of Grace and Compassion

“ As you know we are now a very young community. The funds you have given us will help us particularly in the education of the young monks. In this we are able to continue the good work of Christian education which is at the heart of your charism .” Benedictine Community at St Michael’s Abbey Farnborough

“ These funds are most welcome as we continue to provide educational courses leading to higher education qualifications in Philosophy, Youth Leadership and Theology as well as helping to grow in their faith through our shorter courses .” Mary Vale Institute

“The charity is currently supporting three full-time PhD students in the Dept of Theology and Religion at Durham University with their full home rate tuition fees and maintenance at the UK Research Council’s national rate. The Lafosse Scholars have made time to introduce themselves to the Sisters via Zoom sessions facilitated by the CCS, explaining how the scholarships have enabled their ongoing study, updating them on their research, and expressing their heartfelt gratitude.” Centre for Catholic Studies, Durham University.

Worship and prayer

Members of the Institute are given the opportunity for private worship and public worship and to continue to develop their knowledge and trust in Jesus Christ and the Church through quiet prayer, study of the Gospel and spiritual development. Members of the Institute celebrate and pray with the wider community including people of all faiths and none. The sisters are available to listen to people in times of need and pray with the housebound. They support the Farnborough Hill School community by regular attendance at school Liturgical celebrations.

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Trustees’ report 31 July 2021

Activities and objectives (continued)

An overview of activities (continued)

2. Enabling and supporting members in a variety of religious and charitable works (continued)

Worship and prayer (continued)

The following is an extract from the Sisters’ Constitution on the section on Prayer:

‘Prayer is an expression of our central relationship with God and with others. Each one is responsible for the nourishment of her faith through meditating the Scriptures, studying the teachings of the Church and spiritual reading.

Ecumenical exchanges invite us to widen our prayer and reflection.’

Social and pastoral work

A member of the Institute is involved in various forms of social or pastoral work in Farnborough and surrounding towns including:

Volunteer

One member is involved in administering the work of the Institute and charity - without this contribution the charity would not be able to function as effectively or fully as it does.

Details of the areas in which the members gives their time are shown in the table below. Due to the Covid 19 pandemic some activities were limited. However, some restrictions were overcome with the use of social media.

Area Education General Parish support Hospital visiting Housebound visiting Working with other groups/ organisations Administration

There were a total of 4 sisters in the Institute during the year, of which three are resident in nursing homes.

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Trustees’ report 31 July 2021

Financial review

Results for the year

A summary of the charity’s results for the year can be found on page 23 of this report and accounts.

During the year to 31 July 2021, income amounted to £294,606 (2020 - excluding the funds transferred from the charitable trust income amounted to £308,471). Of the income, a total of £93,306 (2020 - £95,720) was received by way of donations. This figure includes salaries and pensions of the sisters amounting to £93,056 (2020 - £95,445) covenanted to the charity. Investment income and interest receivable totalled £201,200 (2020 - £212,501). The funds transferred from the charitable trust to the charity on 1 August 2019 were £8,579,653 (note 17).

Expenditure for the charity totalled £556,162 (2020 - £554,538). Expenditure incurred on supporting the members of the Institute and their pastoral work and ministry amounted to £281,560 (2020 - £329,313). Grants and donations amounted to £229,115 (2020 - £180,353). Further details of grants and donations are provided in note 4 to the accounts. Expenditure on investment management fees was £45,487 (2020 - £44872).

Net expenditure of the charity before investment gains was £251,556 (2020 –£8,333,586 before investment losses and after the transfer from the charitable trust). Investment gains for the year amounted to £1,139,526 (2020 - losses £595,743), resulting in net income and a net increase in funds of £877,970 (2020 - £7,737,843).

Investment performance

The investment managers continue to be guided by the trustees’ investment policy set out on page 16 of this report and comply with the ethical guidelines given to them.

The market value of listed investments increased during the year in line with the performance of world markets as they recovered from the initial impact of the Covid-19 pandemic. Total investment income from listed investments was £201,200 (2020 - £212,416).

The trustees continue to take a long-term view and believe their investment policy continues to be applied and remains appropriate.

Reserves policy and financial position

The trustees consider that, given the nature of the charity’s work, the level of free reserves should be sufficient to generate enough income to cover approximately one year’s on-going expenditure and to provide for contingencies, unevenness in future income and volatility in the value of investments. In particular, at the current time, the reserves need to be sufficient to enable the charity to operate in the exceptional circumstances created by the continuing Covid-19 pandemic.

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Trustees’ report 31 July 2021

Financial review (continued)

Reserves policy and financial position (continued)

At the date of the balance sheet, the trustees consider that the level of free reserves were adequate but not excessive given the inherent volatility on world stock markets at the current time and given the discernment process being undertaken in respect to future property needs. In particular, the level of reserves is deemed sufficient when considered in the light of the uncertainties arising due to the continuing Covid-19 pandemic.

The charity’s balance sheet shows that at 31 July 2021 funds totalled £8,615,813 (2020 - £7,737,843). Of this £273,411 (2020: £273,781) is represented by tangible fixed assets used to support the work of the sisters and, therefore, cannot be easily realised if needed to meet future contingencies.

A further £2 million (2020: £2 million) represents a retirement reserve designated to provide an income to maintain the sisters as they grow older. A further £5,900,000 has been designated as an Education Fund. Further details of designated funds are given in note 15 to the accounts.

Therefore, reserves which are available to support the sisters and their work in the future are shown on the balance sheet as general funds and amount to £442,402 (2020: £464,062). This figure needs to be considered in the light of annual expenditure of approximately £560,000, the increasing age profile of the sisters and the need for the charity to continue to support the work of the Institute, both in this country and overseas.

The sisters are also aware of the importance to the charity of the investment assets and the income generated therefrom. Given the low interest rates, there is a real need to retain monies to enable the long-term financial stability of the charity. The trustees consider that the level of free reserves of the charity is adequate but not excessive and will enable them to pursue successfully their charitable objectives.

Tax exemptions etc.

The beneficiaries of the work of the charity have the assurance that all of the income of the charity must be applied for charitable purposes in furtherance of their objects. The charity enjoys tax exemption on income and gains provided these are applied for its charitable aims. The charity is also entitled to a reduction of 80% on business rates on the property it occupies for its charitable purposes, and a 50% reduction in Council Tax for its properties that are occupied by members of the Institute. The financial benefits received as a result of these exemptions are all applied for the purposes of furthering the Roman Catholic faith by enabling and supporting the sisters to live out their faith and to put that faith into practice through a wide variety of religious and other charitable works.

The nature of activities means that the charity is unable to reclaim VAT input tax on its costs as it is exempt for VAT purposes. The charity also pays tax as an employer through the national insurance contributions it makes.

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Trustees’ report 31 July 2021

Financial review (continued)

Fixed assets

Acquisitions and disposals of fixed assets during the year are recorded in the notes to the accounts.

Future plans

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

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

Therefore, the objectives of the trustees of the charity include:

Governance, structure and management, and relevant policies

Governance

In terms of Canon Law, the Institute of Christian Education is governed by its own constitution, under the direction of the Institute Leader and the General Council who are based in the central office in France. The Leadership Team is elected every five years at a General Chapter, i.e. a meeting of elected delegates representing all the sisters worldwide. The Province of England and Ireland is directed by the Provincial Leader and her Council of two sisters who are appointed by the General Council. The Provincial Council appoints a Provincial Bursar. Members of the Provincial Council are appointed for their understanding, experience and knowledge of the needs of the Province. The Council visits the sisters on a regular basis and supports the sisters in their ministries. The Institute Leader and her Council visit all the sisters in the Province at least once in every five years.

The charity is a Charitable Incorporated Organisation (CIO), governed by a Constitution and registered with the Charity Commission on 14 February 2018.

The Provincial Superior for the time being is automatically, by virtue of holding that office, exofficio the sole member of the charity for as long as she holds office. If the charity is wound up, the member of the charity has no liability to contribute to its assets and no personal responsibility for settling its debts and liabilities.

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Trustees’ report 31 July 2021

Governance, structure and management, and relevant policies (continued)

Governance (continued)

The names of the current trustees are given on page 1 of this document. At any time, there must be a minimum of three trustees. The Provincial Superior for the time being is automatically, ex-officio, a trustee for as long as she holds that office. All other trustees are appointed by a resolution in writing by the Provincial Superior. Trustees are appointed for a term of three years.

In selecting individuals for appointment, the Provincial Superior will have regard to the skills, knowledge and experience needed for the effective administration of the CIO.

Four of the trustees have been vowed members of the Institute for over 40 years. All of them have served the Institute in various capacities in education (secondary and adult, special needs, catechetics and family support); legal affairs; social care and prison chaplaincy; and assisting homeless people, refugees and asylum seekers. These trustees have been in senior administrative roles in the Institute. They are fully aware of everything pertaining to the charity and are responsible for organising personal development opportunities, assemblies and meetings where all the important decisions for the charity are made.

The fifth trustee, a lay person, has been associated with the sisters for several years and has provided professional support to the community in the past.

On being appointed, new trustees undergo induction and training in the roles and responsibilities of their office. Every year some trustees attend training courses necessary to keep themselves updated with new legislation governing trustees. During the year, the following sessions were attended:

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Trustees’ report 31 July 2021

Governance, structure and management, and relevant policies (continued)

Governance (continued)

Meetings with the Conference of Religious Safeguarding North London Network Group are regularly attended.

The trustees try to ensure that important information is shared not just among trustees but throughout the charity.

An important meeting each year is when the trustees meet with the auditor to discuss the annual report and accounts. All the trustees attend this meeting if at all possible as well as the person responsible for meeting with investment managers. The meeting is of great benefit to the trustees and every effort is made to implement the advice and comments of the auditor.

Four of the trustees are members of the Institute and as such their living and personal costs during the year were borne by the charity. The trustees receive neither remuneration nor reimbursement of expenses in connection with their duties as trustees or key management personnel.

The names of the trustees who served during the year are set out as part of the reference and administrative details on page 1 of this annual report and accounts and brief biographical details on each of the trustees in office at the year end are given below.

Sister Mary Dawson became a member of the Institute in 1962. After graduating with a BA degree and a Diploma in Higher Education she taught for a number of years in Farnborough Hill (an independent Roman Catholic day school for girls age 11 – 18 years) before her appointment as Head of the School. She held this position for twelve years. She was subsequently elected as Congregational Leader. She held this position for ten years and having completed her mandate she pursued studies in Pastoral Leadership. She worked for eight years as a Prison Chaplain and is currently working as a counsellor in an inner city counselling centre. She also trained in Advocacy and facilitates meetings on a regular basis with residents of a nursing home. Her training and leadership experiences are invaluable in her current role as a trustee of the charity and a member of the Provincial Council.

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Trustees’ report 31 July 2021

Governance, structure and management, and relevant policies (continued)

Governance (continued)

Sister Cara Nagle became a member of the Institute in 1976 having completed studies as a civil lawyer in University College, Cork. She subsequently trained as a teacher of English and Religious Studies. She taught for nine years in Our Lady’s School, Dublin, for secondary students. She served as Provincial of the Anglo-Irish Province from 1990 to 1998. Following this, she re-trained in Pastoral Ministry and worked as a hospital chaplain. She was elected Congregational Leader in 2003 serving ten years in this role. These past experiences provide a significant background to her current roles as Provincial Bursar for the Anglo-Irish Province and as a trustee of the charity.

Sister Rosemary O’Looney became a member of the Institute in 1966. She completed Teacher Training in 1971 at Roehampton University, London. She taught in Dublin from 1971-1974 and was acting Head of the School from 1973-1974. In 1974 she was appointed Head of a Boarding School for girls in Co. Wicklow, Ireland, and held this position until the school closed in 2005. She has held various roles of Leadership in the Province and is currently Provincial of the Anglo-Irish Province having been appointed to this role in 2007. All of this experience is enormously beneficial to her current role as a trustee of the charity.

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.

Four of the trustees are members of the Institute and consequently their living and personal expenses, all of which are consistent with the amounts paid in respect to other members of the Institute, have been borne by the charity. No trustee received any remuneration or reimbursement of expenses in connection with their duties as a trustee.

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Trustees’ report 31 July 2021

Governance, structure and management, and relevant policies (continued)

Structure and management reporting

The trustees are ultimately responsible for the policies, activities and assets of the charity. They have met regularly to review developments with regard to the charity or its activities and make any important decisions. They have been assisted in their tasks by professional advisers who have provided advice and support in areas of property, investments, accounting and legal matters. There is a lay person who has been responsible for finance and secretarial matters. The lay secretary possesses no executive authority.

At least three trustee meetings are normally held in a year. All trustees endeavour to meet annually with the auditor and investment managers.

Trustees’ responsibilities

The trustees are responsible for preparing the trustees' report and the 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 year 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 trustees are responsible for keeping proper accounting records that are sufficient to show and explain the charity’s transactions with reasonable accuracy and disclose at any time the financial position of the charity and enable them to ensure that the accounts comply with the Charities Act 2011, the relevant Charity (Accounts and Reports) Regulations and the provisions of the charity’s trust deed. 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.

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Trustees’ report 31 July 2021

Governance, structure and management, and relevant policies (continued)

Risk management

The trustees recognise their responsibility for the management of risks faced by the charity and the sisters. The continuing impact of the Covid-19 pandemic has continued to give rise to challenges and threats to the well-being of our charity and its activities which could not have been foreseen.

We note the financial and operational effects of Covid-19 earlier in this report. Over and above these, four designated areas have been identified and delegated to various trustees. These areas are: governance and strategic risk; environmental; operational; and financial. The trustees work to develop and to put in place a policy which understands the risks the charity faces and that seeks to learn to adapt to meet new challenges.

The trustees are satisfied that systems are in place to mitigate any exposure to the major risks.

The main long-term risk facing the charity is that it may not be able to meet all of the costs of caring for sick and/or elderly sisters. This, in general, is not a risk that can be avoided. Prudent management of funds will be exercised, and properties may provide a potential source of funding should activities contract in the long term. This risk becomes more acute as the sisters become more dependent. The trustees review the finances and personnel regularly and have concluded that a level of funding of £2,000,000 to care for elderly sisters set aside as a designated fund is appropriate. This allows the trustees to plan the finances for the required care for the sisters.

As with all organisations serving in the community, the trustees recognise the necessity of ensuring the protection and safety of all those the charity serves. Therefore, a sister has been appointed to implement within the charity, the policies and procedures of the Catholic Safeguarding Standards Agency, (a new organisation set up by the Catholic Church in England and Wales to oversee the protection of children and vulnerable adults in all Catholic Institutions and organisations). This sister regularly attends sessions to keep herself updated. Where it applies, sisters, employees and volunteers have had clearance from the Disclosure and Barring Service. Trustees and staff are updated on developments within the CSSA .

The charity’s principal asset comprises listed investments, the value of which is dependent on movements in UK and world stock markets. The investments are managed by reputable investment managers who adhere to a policy agreed by the trustees. The trustees meet regularly with the investment managers and the managers’ performance and that of the portfolio are monitored. The investment strategy is assessed regularly to ensure it remains appropriate to the charity’s needs – both now and in the future. During the current Covid-19 pandemic, the trustees continue to communicate with their investment managers and, whilst there are concerns over the volatility in world stock markets, the trustees acknowledge also that the charity is a long term investor. As such, the charity will be able to wait for markets to recover over time whilst the trustees keep a watching brief.

During each year the trustees coordinate an updated review of risk including matters of health and safety and risk assessment. This is done in conjunction with the health and safety advice from the charity’s insurance brokers. The results are communicated to the sisters and staff.

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Trustees’ report 31 July 2021

Governance, structure and management, and relevant policies (continued)

Investment policy

The charity has discretionary investment management agreements with Investec Wealth & Investment Limited and Charles Stanley & Co Limited.

The trustees receive a report and valuation every three months and meet at least once a year with each of the investment managers. They ensure that each portfolio is managed in accordance with their written guidelines and with the religious and ethical principles of the charity. Acceptable investments, mostly equities, are chosen so that through the relevant companies’ activities people’s lives will be enhanced, natural resources will be used responsibly and all of creation will be respected.

The investment strategy takes into account income requirements, the risk profile and the investment managers’ view of the market prospects in the medium term.

The policy is to maximise total return through a diversified portfolio whilst providing a level of income advised from time to time. There is also an Ethical Policy precluding investment in any company which, after reasonable enquiry, clearly has significant profits from an activity which is contrary to the objectives of the Roman Catholic Church.

Grants, donations and support of missionary work and ministry

Grants, donations and other payments in support of missionary work and ministry are decided on by the trustees in consultation with other members of the Institute as appropriate.

Whilst the trustees have given occasional support to United Kingdom organisations whose work is within the objects of the charity, the charity does not regard itself as grant making entity and applications for grants and donations are not invited.

Fundraising policy

The charity aims to achieve best practice in the way in which it communicates with donors and other supporters. The trustees take care with both the tone of communications and the accuracy of data to minimise the pressures on supporters. They apply best practice to protect supporters’ data and never sell data, never swap data and ensure that communication preferences can be changed at any time. They manage their own fundraising activities and do not employ the services of professional fundraisers. They undertake to react to and investigate any complaints regarding fundraising activities and to learn from them and so improve service. During the year, the charity received no complaints about its fundraising activities.

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Trustees’ report 31 July 2021

Governance, structure and management, and relevant policies (continued)

Working with other organisations

The charity has worked closely with a number of other charities and public bodies which work in the field of providing education and providing care to the vulnerable and those requiring support. In some instances sisters are, or have been, employed by these organisations; whilst in other instances the relationships are more informal. In all cases, working together with other charities and public bodies has enhanced communication and understanding thus enabling services to the elderly and other people to be provided more efficiently and effectively and avoiding duplication of effort. Examples of the organisations for which members have worked and with which the charity has cooperated during the year are as follows:

Employees, volunteers, and members of the Institute

The trustees wish to record their recognition of the professionalism and commitment of their staff, volunteers and the individual members of the Institute. Their dedication and positive approach are very much appreciated.

Approved by the trustees and signed on their behalf by:

Elizabeth McCormack RCE

Trustee

Approved by the trustees on: 21[st] February 2022

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Independent auditor’s report 31 July 2021

Independent auditor’s report to the trustees of the Sisters of Christian Education CIO

Opinion

We have audited the accounts of the Sisters of Christian Education CIO (the charity) for the year ended 31 July 2021 which comprise the statement of financial activities, the balance sheet, the statement of cash flows, the principal accounting policies and the notes to the accounts. 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 accounts:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the accounts section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the accounts 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 accounts, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the accounts 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 accounts are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

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Independent auditor’s report 31 July 2021

Other information

The trustees are responsible for the other information. The other information comprises the information included in the Annual Report and Accounts, other than the accounts and our auditor’s report thereon. Our opinion on the accounts does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the accounts, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the accounts 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 accounts 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 Act 2011 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement, the trustees are responsible for the preparation of the accounts 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 accounts that are free from material misstatement, whether due to fraud or error.

In preparing the accounts, 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.

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Independent auditor’s report 31 July 2021

Auditor’s responsibilities for the audit of the accounts

Our objectives are to obtain reasonable assurance about whether the accounts 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 accounts.

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:

How the audit was considered capable of detecting irregularities including fraud

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

We assessed the susceptibility of the charity’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

Sisters of Christian Education CIO 20

Independent auditor’s report 31 July 2021

Auditor’s responsibilities for the audit of the accounts (continued)

How the audit was considered capable of detecting irregularities including fraud (continued)

To address the risk of fraud through management bias and override of controls, we:

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

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

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the trustees and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities for the audit of the accounts is located on the Financial Reporting Council’s website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Sisters of Christian Education CIO 21

Independent auditor’s report 31 July 2021

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 with 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 and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Buzzacott LLP 10 March 2022 Statutory Auditor 130 Wood Street London EC2V 6DL

Buzzacott LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006

Sisters of Christian Education CIO 22

Statement of financial activities Year to 31 July 2021

Notes
2021
£		 2020
£
Income from:
Donations
1
Investments and interest receivable
2
Other sources
Transfer from Institute of Christian Education Charitable Trust
(Charity Registration No: 244663) (see below)
17
Total income:
Expenditure on:
Raising funds
. Investment management fees
Charitable activities
. Support of members of the Institute and their ministry
3
. Grants and donations
4
Total expenditure
Net (expenditure) income for the year before net
investment gains (losses)
6
Net investment gains (losses)
10

Net income and net movement in funds


Reconciliation of funds:

Fund balances brought forward at 1 August 2020

Fund balances carried forward at 31 July2021

93,306

201,200
100		 95,720
212,501
250
294,606


—		 308,471
8,579,653
294,606 8,888,124



45,487


281,560

229,115		 44,872
329,313

180,353
556,162 554,538


(261,556)

1,139,526		 8,333,586
(595,743)


877,970



7,737,843		 7,737,843

—

8,615,813		 7,737,843

All income and expenditure of the charity is in respect to unrestricted funds.

The charity’s activities commenced on 1 August 2019. All of the charity’s activities derived from continuing operations during both the above financial years.

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

Sisters of Christian Education CIO 23

Balance sheet 31 July 2021

Notes
2021
£		 2021
£		 2020
£		 2020
£
Fixed assets
Tangible assets
9
Investments
10
Current assets
Debtors
11
Cash at bank and in hand
Current liabilities
Creditors: amounts falling due
within one year
12
Net current assets
Total assets less current liabilities
Creditors:amounts falling due after
one year
13
Total net assets
The funds of the charity:
Funds and reserves
Unrestricted funds
. Tangible fixed assets fund
14
. Designated funds
15
. General funds


99,735
223,286		 273,411
8,205,109		 30,492
299,212		 273,781
7,323,570
8,478,520
157,293		 7,597,351

190,492
323,021

(165,728)		 329,704
(139,212)


8,635,813
(20,000)		 7,787,843
(50,000)
8,615,813 7,737,843
273,411
7,900,000
442,402		 273,781
7,000,000
464,062
8,615,813 7,737,843

Approved by the trustees and signed on their behalf by:

Elizabeth McCormack RCE

Trustee

Approved on: 21[st] February 2022

Sisters of Christian Education CIO 24

Statement of cash flows Year to 31 July 2021

Notes
2021
£		 2020
£
Cash flows from operating activities:
Net cash used in operating activities
A
Cash flows from investing activities:
Investment income and interest received
Proceeds from the disposal of investments
Purchase of investments

Net cash provided by investing activities
Change in cash and cash equivalents in the year
Cash transferred from the Institute of Christian Education
Charitable Trust (Charity Registration No. 244663)
Cash and cash equivalents at 1 August 2020
B
Cash and cash equivalents at 31 July 2021
B

**(486,354) **		 (534,843)
152,441
1,785,754
**(1,906,357) **		 203,431
3,028,936
(2,307,612)
31,838 924,755
(454,516)
—

759,637
 389,912
369,725
—

305,121		 759,637

Notes to the statement of cash flows for the year to 31 July 2021.

A Reconciliation of net movement in funds to net cash used in operating activities

2021
£		 2020
£
(841,810)
494
595,743
(212,501)
(15,755)
(61,014)
(534,843)
Net movement in funds (as per the statement of financial activities)
Adjustments for:
Depreciation charge
Investment (gains) losses
Investment income and interest receivable
Increase in debtors
Decrease in creditors
Net cash used in operating activities
877,970
370
(1,139,526)
(201,200)
(20,484)
(3,484)
(486,354)
Analysis of changes in cash and cash equivalents
At 1
August
2020		 Cash flows At
31 July
2021
Cash at bank and in hand
Cash held by investment managers
Total cash and cash equivalents		 299,212
460,425		 (75,926)
(378,590)		 223,286
81,835
759,637 (454,516) 305,121

No separate statement of changes in net debt has been prepared as there is no difference between the movements in cash and cash equivalents and movement in net cash (debt).

Sisters of Christian Education CIO 25

Principal accounting policies 31 July 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 July 2021 with the comparatives for the year to 31 July 2020.

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 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.

The accounts are presented in sterling and are rounded to the nearest pound.

Critical accounting estimates and areas of judgement

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

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

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 at least one year from the date of approval of these accounts.

The trustees acknowledge and recognise the continuing impact of the Covid-19 pandemic on the charity and have concluded that there will continue to be some negative consequences such as the impact on investment income. However, the trustees are of the opinion that the charity will have sufficient resources to meet its liabilities as they fall due.

Sisters of Christian Education CIO 26

Principal accounting policies 31 July 2021

Assessment of going concern (continued)

The charity’s investment income may be adversely affected because of the volatility in listed investments as stock markets have reacted to the pandemic and the impact of the pandemic on the commercial sector in particular. In terms of expenditure, it is anticipated that there may be a rise in living expenses due to rise in cost of living but such increases will be offset by reductions in other costs. The trustees will continue to keep both income and expenditure under review but do not anticipate that the impact on the charity’ finances will be material or impact on the charity’s going concern.

With regard to the next accounting period, the year ending 31 July 2022, the most significant areas that affect the carrying value of the assets held by the charity are the level of investment return and the performance of the investment market. This is particularly relevant at the current time given the Covid-19 pandemic and its impact on world stock markets (see the investment policy and the risk management sections of the trustees’ report for more information).

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 interest receivable and other income.

Donations, including salaries and 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.

Income from other sources is measured at fair value and accounted for on an accruals basis.

Expenditure recognition

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the 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. All expenses are allocated to the applicable expenditure headings. The majority of expenditure is directly attributable and any apportionment between headings is negligible.

Sisters of Christian Education CIO 27

Principal accounting policies 31 July 2021

Expenditure recognition (continued)

Expenditure on raising funds comprises investment management fees incurred by the charity.

Expenditure on charitable activities includes all costs associated with furthering the charitable purposes of the charity through the provision of its charitable activities and includes:

All expenditure is stated inclusive of irrecoverable VAT.

Allocation of 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 (including audit costs) and costs in respect to its compliance with regulation and good practice.

All expenditure on support and governance is allocated to charitable activities of care of members of the Institute as any such costs in relation to the provision of donations and grants is considered minimal.

Tangible fixed assets

All assets costing more than £2,500 and with an expected useful life exceeding one year are capitalised.

Freehold land and buildings are included on the balance sheet at cost.

Freehold land and buildings comprise buildings designed as, and used wholly or mainly for, private residential accommodation. Such buildings are not depreciated. Their value and condition are reviewed annually by the trustees, who are satisfied that their residual value is not materially less than their book value.

Sisters of Christian Education CIO 28

Principal accounting policies 31 July 2021

Tangible fixed assets (continued)

Motor vehicles are capitalised and depreciated at 25% per annum, on a reducing balance basis, in order to write off the cost of each vehicle over its estimated useful life.

An impairment review in respect to a particular class of asset is carried out if events, or changes in circumstances, indicate that the carrying amount of any tangible fixed asset may not be recoverable.

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.

As noted above 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 is 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.

Debtors

Debtors are recognised at their settlement amount, less any provision for non-recoverability. Prepayments are valued at the amount prepaid. They have been discounted to the present value of the future cash receipt where such discounting is material.

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.

Sisters of Christian Education CIO 29

Principal accounting policies 31 July 2021

Creditors and provisions

Creditors and provisions 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 charity’s funds comprise a number of unrestricted income funds which are available for application towards the charity’s objectives. Within unrestricted funds the trustees have designated certain amounts for specific purposes and have identified those non-liquid funds represented by tangible fixed assets. Details of these funds are given in notes 14 and 15 to the accounts.

Services provided by members of the Institute

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

Pensions

The charity contributes to a personal pension plan of an employee and contributions are charged to the statement of financial activities in the year in which they are payable to the plan.

Sisters of Christian Education CIO 30

Notes to the accounts 31 July 2021

1 Income from: Donations

2021
£		 2020
£
Salaries and pensions of individual religious received under Gift Aid or
Deed of Covenant
Other donations		 93,056
250		 95,445
275
93,306 95,720

2 Income from: Investments and interest receivable

2021
£		 2020
£
Income from listed investments
. UK equities
. Overseas equities
. UK unit trusts
. UK fixed interest securities
. Overseas fixed interest securities
. Alternatives
Interest receivable
. Interest on bank and short-term deposits		 94,340
29,090
—
47,528
464
29,778		 55,882
68,356
37,908
6,916
43,354
—
201,200
—		 212,416
85
201,200 212,501

3 Expenditure on: Support of members of the Institute and their ministry

2021
£		 2020
£
Staff costs (note 7)
Premises
Sisters’ living and personal expenses
Support of aged sisters in nursing homes
Motor and travelling expenses
Depreciation
Education, training and spiritual renewal
Funeral expenses
Medical expenses
Support costs
. Legal and professional fees
. Other support costs
. Governance costs (note 5)		 32,894
57,932
19,573
123,890
3,677
370
4,368
—
1,469
6,497
11,799
19,091		 31,910
54,388
25,536
139,575
10,247
494
5,962
4,236
4,593
10,339
10,040
31,993
281,560 329,313

Sisters of Christian Education CIO 31

Notes to the accounts 31 July 2021

4 Expenditure on: Grants and donations

The charity makes grants and donations, principally in support of the advancement of education and other charitable causes which further the Christian faith and address social problems.

2021
£		 2020
£
Louis Lafosse Educational CIO (note 18)
. to provide support to the educational work of the charity
Benedictine Sisters of Our Lady of Grace and Compassion
. to provide support to novitiates
Farnborough Abbey
. to support their charitable activities
The Aisling Project
. to support their charitable activities
Catholic Agency for Overseas Development (CAFOD)
. to support their charitable activities
Jesuit Refugee Centre
. to support their charitable activities
Kairos Community Trust
. to support efforts to address homelessness
The Little Way Association
. to support their charitable activities
Maryvale Institute
. to help with promoting Catholic learning
Medaille Trust
. to support their charitable activities
Parity for Disability
. to support disabled people
Salesians of Don Bosco
. to support their charitable activities
The Society of St Peter the Apostle
. to support their charitable activities
St Barnabas Society
. to support their charitable activities
Thames Hospice
. to help provide nursing and medical care
Centre for Catholic Studies, Durham University
. to provide funds towards administration costs
Other donations (all less than £1,000)		 60,000
20,000
30,000
10,000
5,000
10,000
10,000
5,000
2,000
5,000
2,000
1,500
2,000
1,000
2,000
60,000
3,615		 70,000
20,000
30,000
10,000
5,000
10,000
10,000
5,000
2,000
5,000
2,000
1,500
2,000
1,000
2,000
—
4,853
229,115 180,353

Sisters of Christian Education CIO 32

Notes to the accounts 31 July 2021

4 Expenditure on: Grants and donations (continued)

During the year to 31 July 2019, the trustees of the Institute of Christian Education Charitable Trust (the predecessor charity), awarded a grant of £150,000 to the Centre for Catholic Studies, part of the Department of Theology and Religion at Durham University (the Centre). The liability in respect to this grant was transferred to the charity under the transfer agreement. The grant is payable in three annual instalments of £50,000 each and is to be applied towards the funding of a student for research doctorate studies. £50,000 (2020: £100,000) of this grant is payable after the year end and is classified as a creditor in these accounts (note 12).

In addition to the above grant, the charity awarded an additional grant of £60,000 to the Centre to help towards administration costs. This grant is payable in three annual instalments of £20,000 each. £40,000 of this grant is payable after the year end and is classified as a creditor in these accounts (notes 12 and 13).

The charity’s trustees have also communicated to the Centre that they plan to provide funding of a student for research doctorate studies for a further three years commencing in 2023. The commitment will be recognised as a liability only once a formal agreement has been signed in 2022 and the amount to be committed has been agreed.

5 Expenditure on: Governance costs

2021
£		 2020
£
Legal andprofessional fees 19,091 31,993

6 Net (expenditure) income for the year before net investment gains (losses) This is stated after charging:

2021
£		 2020
£
Staff costs (note 7)
Auditor’s remuneration (including VAT)
. Statutory audit services
.. Current year
.. Prior year (charitable trust)
. Other services (accounting, tax and payroll and advisory)
Depreciation		 32,894
16,200
—
4,623
370		 31,910
16,200
2,508
6,843
494

Sisters of Christian Education CIO 33

Notes to the accounts 31 July 2021

7 Staff costs, key management personnel and transactions with trustees

2021
£		 2020
£
Staff costs during the year were as follows:
Wages and salaries
Pension costs		 32,188
706		 31,226
684
32,894 31,910

There were 3 part time employees during the year (2020 – 3).

Social security costs for the charity were fully covered by the annual allowance provided by the government.

All staff costs relate to the support of the members of the Institute and their ministry.

No employees earned £60,000 per annum or more (including taxable benefits) during the year (2020 – none).

Key management personnel

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

Four of the charity's trustees were members of the Institute of Christian Education and consequently their living and personal expenses, all of which are consistent with the amounts paid in respect to other members of the Institute, are borne by the charity. No trustees received any remuneration or reimbursement of expenses in connection with their duties as a trustee (2020 - none).

8 Taxation

The Sisters of Christian Education CIO is a registered charity and, therefore, is not liable to income tax or corporation tax on income on gains derived from its charitable activities, as they fall within the various exemptions available to registered charities.

Sisters of Christian Education CIO 34

Notes to the accounts 31 July 2021

9 Tangible fixed assets

Tangible fixed assets
Freehold
land and
buildings
£		 Motor
vehicles
£		 Furniture,
plant and
equipment
£
13,005
12,761
61
12,822
183
244		 Total
£
307,248
33,467
370
33,837
273,411
273,781
Cost
At 1 August 2020 and 31 July 2021
Depreciation
At 1 August 2020
Charge for the year
At 31 July 2021
Net book values
At 31 July 2021
At 31 July2020		 272,300 21,943
—
—		 20,706
309
— 21,015
272,300 928
272,300 1,237

As permitted under FRS 102, the charity adopts a policy of not revaluing its tangible fixed assets.

It is likely that there are material differences between the open market values of the charity’s land and buildings and their book values. The amount of such differences cannot be ascertained without incurring significant costs, which, in the opinion of trustees, is not justified in terms of the benefit to the users of the accounts.

10 Listed investments

At 31 July 2021 listed investments comprised:

2021
£		 2020
£
Listed investments
Market value at 1 August 2020
Transfer from the Institute of Christian Education Charitable Trust
(Charity Registration No: 244663) (note 17)
Additions at cost
Disposals at book value (see below)
Net unrealised investment gains (losses)
Market value at 31 July 2021
Cash held by investment managers for reinvestment
Cost of listed investments at 31 July2021		 6,863,145
—
1,906,357
(1,729,403)
1,083,175		 —
8,180,212
2,307,612
(3,403,829)
(220,850)
8,123,274
81,835		 6,863,145
460,425
8,205,109 7,323,570
6,568,306 6,073,367

Disposals at book value comprised of the following:

Disposals at book value comprised of the following:
2021
£		 2020
£
Proceeds
(Gains) losses		 1,785,754
(56,351)		 3,028,936
374,893
1,729,403 3,403,829

Sisters of Christian Education CIO 35

Notes to the accounts 31 July 2021

10 Listed investments (continued)

Listed investments held at 31 July 2021 comprised the following:

2021
£		 2020
£
UK equities
Overseas equities
UK unitised funds
UK fixed interest securities
Overseas fixed interest securities
Alternatives		 2,583,907
2,431,431
6,026
2,164,433
65,089
872,388		 2,292,423
2,430,710
426,318
268,767
1,444,927
—
8,123,274 6,863,145

At 31 July 2021 no individual holdings were deemed material in the context of the entire portfolio.

All listed investments were dealt in on a recognised stock exchange.

11 Debtors

Debtors
2021
£		 2020
£
Investment income receivable
Prepayments
Accrued income		 62,094
34,494
3,147		 13,335
14,135
3,022
99,735 30,492

12 Creditors: amounts falling due within one year

Creditors: amounts falling due within one year
2021
£		 2020
£
Expense creditors
Accruals
Grants payable (note 4)
Amounts due to Louis Lafosse Educational CIO (note 18)
Social security costs
Monies held on behalf of the Generalate of the Institute of Christian
Education		 730
35,878
70,000
10,000
350
48,770		 729
26,219
50,000
10,000
404
51,860
165,728 139,212

13 Creditors: amounts falling due after one year

Creditors: amounts falling due after one year
2021
£		 2020
£
Grantspayable(note 4) 20,000 50,000

Sisters of Christian Education CIO 36

Notes to the accounts 31 July 2021

14 Tangible fixed assets fund

Tangible fixed assets fund
2021
£
273,781

—
(370)
273,411		 2020
£
At 1 August 2020
Transfer from the Institute of Christian Education Charitable Trust
(Charity Registration No: 244663) (note 17)
Net movement in year
At 31 July2021		 —
274,275
(494)
273,781

The tangible fixed assets fund represents the net book value of the charity’s tangible fixed assets. A decision was made to separate this fund from the general fund and other designated funds in recognition of the fact that the tangible fixed assets are essential to the day-to-day work of the charity and as such their value should not be regarded as funds that would be realisable with ease, in order to meet future contingencies.

15 Designated funds

The income funds of the charity include designated funds set aside out of unrestricted funds by the trustees for specific purposes.

These funds are as follows:

Retirement
fund
£		 Education
fund
£		 2021
Total
£
At 1 August 2020
Designated in the year
At 31 July2021		 2,000,000
—		 5,000,000
900,000		 7,000,000
900,000
2,000,000 5,900,000 7,900,000

Retirement fund

The retirement fund comprises assets which the trustees have set aside in order to provide for the sisters as they grow older. The amount of the fund had been calculated using actuarial principles, whilst having regard to the resources actually available.

Education fund

The trustees have established the education fund to provide income to be applied towards bursaries and scholarships, as described in the trustees’ report.

Sisters of Christian Education CIO 37

Notes to the accounts 31 July 2021

16 Analysis of net assets between funds

Tangible
fixed assets
fund
£		 Designated
funds
£		 General
funds
£		 Total
funds
2021
£
Tangible fixed assets
Listed investments
Net current assets
Creditors: amounts falling due after one
year		 273,411
—
—
—		 —
7,900,000
—
—		 —
305,109
157,293
(20,000)		 273,411
8,205,109
157,293
(20,000)
273,411 7,900,000 442,402 8,615,813

The total unrealised gains as at 31 July 2021 constitute movements on revaluation and were as follows:

2021
£		 2020
£
Unrealised gains on listed investments included above:
Total unrealised gains at 31 July 2021
Reconciliation of movements in unrealised gains
Unrealised gains at 1 August 2020
Transfer from the Institute of Christian Education Charitable Trust
(Charity Registration No: 244663)
Less: in respect to disposals in the year
Add: net losses arising on revaluation arising in the year
Total unrealisedgains at 31 July2021		 1,554,968 789,778
789,778

(317,985)
1,083,175		 —
1,798,519
(787,891)
(220,850)
1,554,968 789,778

17 Connected charities

The trustees of the charity are also the trustees of Louis Lafosse Educational CIO (Charity Registration No: 1177782). Four of the trustees of the charity are trustees of the Institute of Christian Education Charitable Trust (Charity Registration No: 244663) (the charitable trust), the predecessor charity.

With effect from 1 August 2019, certain activities, assets and liabilities of the charitable trust were transferred as a going concern to the charity. Certain other assets and liabilities were transferred to Louis Lafosse Educational CIO (established 3 April 2018; Charity Registration No 1177782).

Sisters of Christian Education CIO 38

Notes to the accounts 31 July 2021

17 Connected charities (continued)

Details of the net assets and funds transferred are as follows:

Sisters of
Christian
Education
CIO
£		 Louis
Lafosse
Educational
CIO
£		 Total
£
Tangible fixed assets
. Cost
. Depreciation
Programme related investments
Fixed asset investments
Debtors
Cash at bank and in hand
Creditors
. Amounts falling due within one year
. Amounts falling due after one year		 316,728
(42,453)		 —
**— **
316,728

(42,453)
274,275
—
8,327,994
5,666
221,943
(150,225)
(100,000)		 —
27,000
—
—
100

—
**— **
274,275

27,000
8,327,994

5,666

222,043

(150,225)

(100,000)
8,579,653 **27,100 ** 8,606,753

The net assets transferred were represented by the following funds:

Sisters of
Christian
Education
CIO
£		 Louis
Lafosse
Educational
CIO
£		 Total
£
Charitable funds
. Tangible fixed assets fund
. Designated funds
. General funds		 274,275
7,830,000
475,378		 —
27,000
100		 274,275
7,857,000
475,478
8,579,653 27,100 8,606,753

18 Related party transactions

Trustees

Four of the trustees are members of the Institute and have no resources of their own as all earnings, pensions and other income have been donated to the charity under a Gift Aid compliant Deed of Covenant. During the year, the total amount donated by the trustees to the charity was £21,035 (2020: £21,018).

Others

The charity shares common control with the Louis Lafosse Educational CIO (Charity Registration No 1177782). Both entities have the same trustees and transactions between them are deemed related party transactions.

During the year, the charity authorised a donation of £60,000 (2020: £70,000) to the Louis Lafosse Educational CIO. At 31 July 2021, the charity owed the Louis Lafosse Educational CIO £10,000 (2020 - £10,000) (note 12).

Other than the transfer as at 1 August 2019 referred to in note 17, there were no other related party transactions during the year the current or the previous year.

Sisters of Christian Education CIO 39

Notes to the accounts 31 July 2021

19 Membership, ultimate control and liability of members

The Provincial Superior for the time being is automatically, by virtue of holding that office, is ex-officio the sole member of the charity for as long as she holds office.

If the charity is wound up, the member of the charity has no liability to contribute to its assets and no personal responsibility for settling its debts and liabilities.

Sisters of Christian Education CIO 40