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2020-12-31-accounts

Society of the Holy Child Jesus CIO

Annual Report and Accounts

Period to 31 December 2020

Charity Registration Number 1177555

Contents

Reports

Reference and administrative details of the Reference and administrative details of the
charity, its trustees and advisers 1
Trustees’ report 3
Independent auditor’s report 39
Accounts
Statement of financial activities 44
Balance sheet 45
Statement of cash flows 46
Principal accounting policies 48
Notes to the accounts 55

Society of the Holy Child Jesus CIO

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

Trustees Sister Angela O’Connor (Chairperson)
Sister Marguerite Bouteloup
Sister Jenny Bullen
Sister Eileen Crowley (appointed 1 May 2020)
Sister Maria Dinnendahl
Sister Judith Lancaster (appointed 1 May 2020)
Sister Geraldine MacCarthy (resigned 1 May 2020)
Sister Catriona McPhail
Sister Carmel Murtagh
Sister Jean Newbold (resigned 1 May 2020)
Sister Celestina Oyidu Okwori
Sister Anne Stewart
The trustees are incorporated under the Charities
Act 2011
Province Leader Sister Carmel Murtagh (until 1 May 2020)
Sister Angela O’Connor (from 1 May 2020)
Provincial Bursar Sister Angela O’Connor (until 1 May 2020)
Sister Carmel Murtagh (from 1 May 2020)
Principal office Provincial Offices
14-16 Norham Gardens
Oxford
OX2 6QB
Website address www.shcj.org
Charity Registration Number 1177555
Auditor Buzzacott LLP
130 Wood Street
London
EC2V 6DL

Society of the Holy Child Jesus CIO 1

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

Investment managers Smith & Williamson Investment Management LLP 25 Moorgate London EC 2R 6AY Sarasin & Partners LLP Juxon House 100 St Paul’s Churchyard London EC4M 8BU James Hambro & Partners LLP Ryder Court 14 Ryder Street London SW1Y 6QB

Bankers Metro Bank 4-5 Queen Street Oxford OX1 EJ

RBS 7 Cambridge Crescent Harrogate HG1 1PH

Society of the Holy Child Jesus CIO 2

Trustees’ report Period to 31 December 2020

The trustees present their statutory report and the accounts of the Society of the Holy Child Jesus CIO (the “charity”) for the period from 1 September 2019 to 31 December 2020. The financial reference date of the charity has been amended to 31 December for administrative purposes.

The accounts have been prepared in accordance with the accounting policies set on pages 48 to 54 of the attached accounts and comply with the charity’s constitution, applicable laws and requirements of 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 Society of the Holy Child Jesus (SHCJ) (referred to as the “Society”) is an international Roman Catholic Religious Order of around 350 sisters worldwide, with a network of associates. It was founded in England in 1846 and the Generalate is now situated in Rome, Italy. The Society comprises three provinces, Europe, Africa and the Americas.

The accounts accompanying this report are the accounts of the charity through which the activities and net assets of the Congregation in England are administered. The charity is a Charitable Incorporated Organisation (CIO) and is governed by a Constitution dated 14 March 2018 and is registered under the Charities Act 2011 – Charity Registration No. 1177555.

Mission

The object of the Society of the Holy Child Jesus CIO is to support the religious and other charitable works carried on by the Society and its members.

By caring for individual members of the Society throughout their lives with the Society, 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.

When setting objectives and planning the work of the charity for the year, and when encouraging the work of individual sisters, the trustees have given careful consideration to the Charity Commission’s guidance on public benefit.

The work or ministries of the sisters fall into the following main areas:

Worship and prayer

Members of the Society are given the opportunity for private prayer and continued spiritual and theological development. In addition, members celebrate and pray with the wider community including people of all faiths and none. They do this through the provision of spiritual guidance, being available to listen in times of need, through giving retreats and days of reflection as well as celebration of the liturgy through prayer groups and church services.

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Trustees’ report Period to 31 December 2020

Mission (continued)

Education

Having previously been involved in teaching, particularly in schools founded by the Society, a number of sisters continue their involvement as governors and/or trustees in schools founded by the Society in England, Ireland and France. These schools are, or were under the auspices of, separate charities and outside the scope of these accounts. Donations are given to support programmes in schools that address the needs of vulnerable students.

Human development, social and pastoral work

Members of the Society are involved in various forms of human development, facilitation, social and pastoral work throughout the country, including support of families and elderly people and voluntary support work in hospitals. The sisters aim to help in particular poor and marginalised people in society regardless of their personal background, faith, gender or individual circumstances.

Caring for members of the Society

As well as maintaining retired members of the Society, many of whom are still active in a variety of ministries, the charity operates a care home, Apley Grange, in Harrogate for those members who require extra care. Apley Grange also cares for a small number of private residents.

Grant making

The charity accepts applications for grants from other charities and not for profit organisations. An annual Grant Making budget of £600,000 is approved by the trustees. The trustee’s Grant Making policy is posted on the charity’s website along with the principles the trustees apply when approving grants and the procedure for applying for a grant. The trustees have determined that the current priorities for support are Education, Environmental Justice, Social Justice, Anti-Trafficking, Refugees and Asylum Seekers. The Grant Making policy is reviewed regularly.

Overseas Work of the Society

In addition to its broader grant making activities, the charity supports the work of the Society in Nigeria, Ghana, Kenya and the USA. This is done through support of a Society wide strategic plan.

Associates

Associates are women and men who make a commitment to the Society and involve themselves in its spiritual and apostolic work. The trustees support the Associates in developing their ministry to the wider community and by enabling, wherever possible, their independent development.

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Trustees’ report Period to 31 December 2020

Mission (continued)

Hospitality

All communities offer hospitality to some degree, whether it is welcoming occasional guests, providing accommodation for parish groups to meet, or providing a space where individuals may come to reflect and pray. The community at Norham Gardens, Oxford, offers this on a more organised basis.

Activities, specific objectives and relevant policies

Activities and specific objectives

As stated above under ‘Mission’, the aims of the charity are to care for individual members of the Society throughout their lives with the Society and so to 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.

Caring for members of the Society

The age profile of members of the Society is increasing and women are no longer joining the Society in Europe. The Society has an obligation, both moral and legal, to provide care for its members, none of whom has resources of her own. All Society members have devoted their lives to educational, pastoral or social ministries particularly to those who are most in need. A number of sisters did (or do) not receive salaries or occupational pensions. Among these are sisters who have served in Africa, in administration, or in church or social ministries that depended on providing services at low or no cost. Consequently, this has implications for present and future use of funds.

The age profile of the Society in the European Province is shown graphically below:

----- Start of picture text -----
Age Range of Sisters
30
25
25
20
16
14
15
10
6
5
1
0
50-59 60-69 70-79 80-89 90-99
----- End of picture text -----

The charity provides for all sisters irrespective of any pension income or lack of it. Earned income has become insignificant in the context of the accounts as a whole, because of retirement or sisters changing ministries. The charity is now substantially reliant on investment income to enable the sisters to continue in ministry.

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Trustees’ report Period to 31 December 2020

Activities, specific objectives and relevant policies (continued)

Caring for members of the Society (continued)

As the age profile increases so does the need to provide increasing, and increasingly expensive, care for the sisters; many of the older members are resident at Apley Grange Care Home in Harrogate and this will be the case for some years. The trustees give careful consideration to the impact of this situation on the work of individual members of the Society, on property requirements and on the financial implications.

The objectives of the trustees over the next few years in respect to the care of the sisters include:

Enabling and supporting members in a variety of religious and charitable works

The principal works in which the sisters engage include: worship and prayer; education in its widest sense of encouraging mature reflection on the needs of the present day and working with other groups to enact this; human development and spiritual and pastoral work; and care of the sisters.

Worship and prayer

The charity is committed to helping as many people as possible to join with the sisters in worship and prayer, with the aim of putting faith into action.

The objective of the trustees is to support sisters who are involved in a number of activities which include:

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Trustees’ report Period to 31 December 2020

Activities, specific objectives and relevant policies (continued)

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

Education

The charity enables and supports the educational activities of its members. Sisters:

Human and spiritual development and pastoral work

The charity owns and operates a Retreat and Conference Centre in Oxford, the Cherwell Centre, which comprises facilities for day conferences and meetings, and a number of en suite bedrooms for guests. The facilities include a small chapel, a comfortable sitting room, a library and a large spacious conference room. The facilities are used by parish, local and ecumenical groups as well as other charities.

In operating the Cherwell Centre the trustees aim to:

The charity aims to enable and support sisters in ministries which fulfil the Society’s mission to help people to grow strong in faith and lead fully human lives.

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Trustees’ report Period to 31 December 2020

Activities, specific objectives and relevant policies (continued)

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

Human and spiritual development and pastoral work (continued)

The following are examples of the work done by Sisters in this category:

The objectives of the trustees in this area include:

Caring for retired sisters

The Society owns and runs Apley Grange, a registered care home for older and infirm sisters and private residents who are not members of the Society. Care is provided respecting the dignity, privacy, rights and quality of life of all residents. Apley Grange can accommodate 42 residents. Respite care is offered to both sisters and private residents on a temporary basis. Short term accommodation is offered to guests and visiting family members and this contributes to the homely and friendly atmosphere. Apley Grange is a place where older sisters are able to support the religious and charitable works of the charity. Prayer is at the centre of the life of the community. Private residents, staff and guests are welcome to join the community for worship. A small centre adjacent to the main house offers hospitality to local community groups and provides a space where they can hold meetings. This strengthens the links between the local community and the residents of Apley Grange.

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Trustees’ report Period to 31 December 2020

Activities, specific objectives and relevant policies (continued)

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

Caring for retired sisters (continued)

In operating the home, the trustees aim to:

Grant making

The charity makes one-off grants distinct from the more informal donation giving which continues to operate but which typically gives smaller amounts to organisations well known to one or more of the sisters. Grants support the objects of the charity through enabling and encouraging the work of charities operating in England, Ireland and Wales. As the age profile in the Society has changed and fewer sisters are in active ministry, the trustees have chosen to widen the charity’s outreach and public benefit by giving grants to support social justice, environmental justice, anti-trafficking, projects that support refugees and asylum seekers, and educational projects that help maximise the potential of those who have experienced social and economic disadvantage.

Donations and other payments in support of ministry are decided by the trustees in consultation with other members of the Society as appropriate.

Overseas work

The charity provides financial support to the ministries of the Society across the world through contributions to the Generalate in Rome. In particular, the charity now contributes financially to rapidly developing ministries in Ghana and Nigeria in the African Province of the Society, particularly educational ministries.

The trustees’ objectives are to support ministries recommended to them by the Society Leadership Team after consideration by the International Finance Committee on which there are two members of the European province.

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Trustees’ report Period to 31 December 2020

Activities, specific objectives and relevant policies (continued)

Associate programme

The associate programme offers those who are not members of the Society, men and women, the opportunity to share in the charism and mission of the Society through connections with ministries sponsored by the Society and regular meetings for prayer and reflection.

The objectives of the trustees are to:

Volunteers

Throughout the period, the members of the Society give their time to assist people who are poor, vulnerable, marginalised or in need of help in a number of different ways, including asylum seekers, refugees, people who are housebound, hospital patients, students from overseas and people who are homeless. This voluntary work contributes to the overall achievement of the charity’s objectives. It is very difficult to provide any sort of quantitative analysis.

In addition, members are involved in administering the work of the Society and charity, without their contribution the charity would not be able to function as effectively or fully as it does. Because of the diversity of work, it is difficult to quantify this contribution in monetary terms. However, a conservative estimate of expenses saved is around £366,667.

Investment policy and performance

The charity’s investments during the period were managed by Smith & Williamson Investment Management LLP, Sarasin and Partners LLP and James Hambro & Partners LLP. There are no restrictions on the charity’s power to invest.

The investment strategy is set by the trustees and takes into account income requirements, the risk profile and the investment managers’ views 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 by the trustees 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.

The performance of the portfolio and the charity’s investment strategy are reviewed by an investment committee which meets with the investment managers every six months and reports back to the trustees.

The investment managers continued to invest in accordance with the trustees’ investment policy set out earlier in this report and comply with the ethical guidelines given to them.

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Trustees’ report Period to 31 December 2020

Activities, specific objectives and relevant policies (continued)

Investment policy and performance (continued)

During the period, the charity’s investments achieved an income yield of 3% (period to 31 August 2019 – 2%). At the end of the period the charity’s portfolio of listed investments comprised 56% UK equities (period to 31 August 2019 – 71%), 42% overseas stocks (period to 31 August 2019 – 26%) and 2% cash (period to 31 August 2019 – 3%).

Fundraising policy

The charity manages its own fundraising activities and does not employ the services of a Professional Fundraiser. Any complaints about the quality of our fundraising activities are thoroughly investigated so that we find ways to improve our service. During the period ended 31 December 2020, the charity received no complaints about its fundraising activities.

Some of our funding comes from voluntary donations. The trustees are vigilant in applying the donations according to the wishes of the donors. The charity applies best practice to protect donors’ data and never sells data; it never swaps data with other organisations and ensures that communication preferences can be changed at any time.

Achievements and performance

This year achievements and performance were impacted by the Covid-19 pandemic. All activities were impacted by lockdown and restrictions and adaptations needed to be made.

Grants, donations and support of ministry and missionary work

Grants are given to registered charities and other charitable organisations operating in England, Ireland and Wales.

The priorities for grant support are:

In the fifteen month period to 31 December 2020 a total of £675,169 was paid out in grants to 40 organisations (see note 6 to the accounts).

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Trustees’ report Period to 31 December 2020

Achievements and performance (continued)

Grants, donations and support of ministry and missionary work (continued)

Most of the charities supported with grants have seen their work affected in some way due to the pandemic. Many kept in touch with us, letting us know how they were adjusting their services if possible and some had to pause services altogether. A few charities asked for an extension on the time they had to spend their grant or flexibility on how they spent it, which the trustees were happy to accommodate. Others simply asked for an extension on providing their end of grant reports or updates since they found themselves busier than ever, in some cases with staff numbers reduced due to furlough. We appreciated what they were all dealing with and were happy to be flexible during these challenging times.

Blackpool Food Bank – social justice/food poverty

Blackpool Food Bank is based in central Blackpool which helps individuals and families who are in need. The food bank was started in 2012 initially supplying food to 11 Children’s Centre’s across their town. The service quickly grew in scale and over the last few years has developed into the primary supplier of food to over 60 organisations. Food is donated by the public, local businesses and, where necessary, purchased.

The Food Bank works with partners in the Voluntary Sector as well as receiving requests from Social Workers and Health professionals etc. They distribute food parcels, carefully designed to provide a balanced diet with items for breakfast, lunch and dinner for 3-4 days in each parcel for families and singles. In addition, they supply, bread, fruit, vegetables, dairy, frozen meals and hygiene products to some 60 other agencies working with those in need including every

organisation working with the homeless in the Blackpool, Fleetwood and Cleveleys area. This network is known as the Blackpool Food Partnership and the aim is to collectively tackle all aspects of poverty in the area. The idea is to not only resolve the immediate food need, but more importantly to understand the underlying root cause and to work with the end user to address this issue. Within the group there are representatives from the Childrens Centres, Citizens Advice Centre, NHS Crisis Team, Local Authority Representatives along with support agencies who identify need and request food from the charity.

Society of the Holy Child Jesus CIO 12

Trustees’ report Period to 31 December 2020

Achievements and performance (continued)

Grants, donations and support of ministry and missionary work (continued)

Grant Application: £24,322 for a van driver

Application was made to the SHCJ for a grant to support employment of a full-time van driver, or two part-time drivers, to ensure continuity of service for 12 months and buy some time in which to secure additional future funding . The grant has enabled the food bank to ensure that supply is consistent and uninterrupted.

Impact

The grant SHCJ provided has enabled the charity to fulfill its service with around 80 collections of food products from suppliers each week together with around 120 deliveries. They operate seven days per week. Last year the charity supplied over £500,000 worth of food to network partners. This level of supply has created a huge dependency on them as the primary source of the food need across the area. The provision of food has become crucial for many people as a result of the Covid-19 pandemic.

Case study

We have partnered with Age UK working with local war veterans with issues around poverty, ill health and isolation. A gentleman was already known to Age UK and there were concerns over his health, general mobility and concerns over falling. He was socially isolated and had financial concerns. There had been no contact from Social Services for a while and he was estranged from a daughter so had no support network. He was getting concerned about managing at home and was keen to find out about care home and funeral plans too.

We used the hamper to introduce ourselves and gain access. After assessment we contacted Social Services who re-assessed him. We also referred him to Occupational Therapy to help with his mobility and the British Legion for debt help. They also helped him with information on care homes and funeral plans. We carried on supplying him with shopping from our Food Bank as his cupboards were empty. It’s still early days but he feels less anxious and more positive that things will improve for him.

Cirencester Opportunity Group - Education

Cirencester Opportunity Group (COG) is a small independent registered charity. They are a Specialist Early Years Family centre and work directly with parents and their children aged 0-4. They provide inclusive tailored early-years education, as well as family outreach support, including parent and child focused activity sessions. Many of the families they work with are living with the challenges of deprivation and disadvantage.

Society of the Holy Child Jesus CIO 13

Trustees’ report Period to 31 December 2020

Achievements and performance (continued)

Grants, donations and support of ministry and missionary work (continued)

Their mission is to provide a warm, welcoming and safe environment for all families. They work in partnership with parents and professionals to promote inclusive care and education and to respond to the ever-changing needs of the individual families. They are passionate about enabling each child to have the best possible start in life and for every individual to have the opportunity to achieve their full potential.

Grant Application: £22,170 of funding towards their Early Intervention (EI) programme

Children are supported and their families are supported to overcome challenges that are affecting their ability to be the best parents they can be. Firstly, they support children to have their individual learning needs assessed, to have their Early Years education tailored to meet their developmental needs, to be fully prepared to transition into primary education both mainstream and specialist. Secondly, they specifically support the whole family unit, by carefully assessing the needs of the family, providing practical and emotional support through both parent and child focused activity sessions. The provision also extends to liaising with other professionals and enabling the family to access any support they require to improve their lives.

Impact

The grant SHCJ was asked to provide will enable approximately 60 children, mainly aged between 2 and 4, to take part in the Early Intervention Programme. In most cases both parents of these 60 children will also benefit from this project, so between 60-100 parents.

Case study

A Health Visitor contacted COG and asked that a 3 year old boy be provided with a place on our Early Intervention (EI) learning programme, due to concerns about family isolation and the child’s lack of socialisation . The COG EI Outreach team contacted the family and prior to the child starting with COG in September, we invited the family to attend some family group sessions and the summer playscheme. This enabled the whole family - Mum 22, Dad 26, 10-month old baby girl and 3 year old son - to get used to our centre. Assessments allowed us to identify that the young boy had very few social skills, poor communication and displayed lots of challenging behaviour. The mum presented as anxious and sometimes reluctant to talk and was struggling as Dad worked long hours.

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Trustees’ report Period to 31 December 2020

Achievements and performance (continued)

Grants, donations and support of ministry and missionary work (continued)

In order to start building trust with the children and parents, Mum was encouraged to bring the youngest child to more of our family play sessions. In these sessions our EI team model play skills offer encouragement, reassurance and practical parenting advice. The trust began to grow, and the couple told the team that they were expecting their third child. Due to ongoing concerns about the condition of the two bedroomed flat the family lived in, the chaotic home-life and growing concerns over mum’s mental health, the family were placed on a Child In Need Plan. A team comprising of Social Care, Housing, Health Visitors and the COG Early Intervention Team worked intensively with the whole family and within four months the family were removed from the plan.

Mum continued to attend COG family sessions four to five times a week and to bring her three-year-old to nursery. These sessions helped improve play skills, attachment, bonding and confidence in their parenting abilities. The Outreach Team also taught cooking skills, sourced baby equipment and clothing for the children. We also assisted them in making a primary school application for their eldest child and attended meetings with educational professionals so the parents could gain a clearer understanding of why their eldest child needed support due to communication delays and challenging behaviour. They were also supported in making a DLA (Disability Living Allowance) claim for their son and encouraged to work with P3, a local financial charity, due to their debt issues.

The programme enabled him to reach several developmental milestones that he was assessed as being below his age for developmentally. Some developmental areas remain a challenge for him, however, our Special Educational Needs and Disabilities Co-ordinators (SENDCos) worked with the school to enable this child to successfully transition into mainstream primary school education with dedicated one to one teaching support. We are still working with this family, now supporting the care and Early Years education of their two younger children and the family are in a much more stable position and they are thriving.

Emmaus Oxford- Social justice/education/ homelessness

Emmaus Oxford helps people out of homelessness for good by giving them accommodation, support and meaningful work. Their community houses 28 people who have been homeless, they call them “companions”.

Grant Application: core funding £25,000

An application was made to the Society of the Holy Child Jesus for a grant to run their accommodation and provide practical and emotional support to homeless people. This funding is restricted to the costs of rent and utility bills for the community building, the companions' living expenses and a contribution towards office and staff costs.

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Trustees’ report Period to 31 December 2020

Achievements and performance (continued)

Grants, donations and support of ministry and missionary work (continued)

Impact

The grant from the SHCJ helps Emmaus Oxford to continue their ongoing vital work with the homeless. Since 2009 they have supported over 140 homeless people directly by providing them with a home, support and work. What they do also benefits the wider community, as their social enterprise saves items from going to landfill and helps people on low incomes to furnish their homes.

Case Study: Karl

I used to work in construction for many years and things were going well. I had my own flat and even had the occasional holiday. Then life started going downhill, with less work available the bills started to mount up. My relationship broke down and I lost my home. Eventually I got on the wrong side of the law and ended up in prison twice. In between I was living on the streets. When you’re homeless you feel like you have the whole world on your shoulders with many rough moments. I often made my own places to sleep, from whatever I could find, trying to keep the worst of the cold and rain out. I didn’t really know where to turn. My probation officer suggested I apply to join the Emmaus Oxford community, to try and start my life over. I had an interview and moved in the following week. I’ve been at Emmaus Oxford for over two years now. It was hard at the beginning because I still had local friends from my old life, so I had to start the process of keeping away from them, for my own safety and that of my new friends here.

I enjoy working in the Emmaus charity shop and engaging with customers, as well as on the vans to help deliver the Furniture. I also volunteer to help with the Emmaus Oxford weekly solidarity, where we offer food and essential supplies to local rough sleepers. My knowledge of Oxford from my old life is actually put to good use. It does feel good to be able to help people because I’ve been there myself and know how much it’ll mean to them. Emmaus Oxford is helping me start to think about my future. Ultimately the Support Team are helping me improve my work prospects and think about the type of work I want to do. I’ve got the chance to learn to drive, and I’d like to work on my IT skills.

Family Links- Education/mental health

Established in 1997 and based in Oxford, Family Links has been working nationwide for the last 23 years to support children, parents and school staff with their emotional health and wellbeing, with an emphasis on early intervention. The aim of Family Links is to empower children and parents, schools and workplaces to develop positive emotional health by delivering quality training in the Nurturing Programme to health and social care services, third sector organisations, schools and universities. The Nurturing Programme (NP) is the core programme and underpins all their work. Running over 10-weeks, the NP aims to improve the emotional health of both adults and children and strengthen family relationships.

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Trustees’ report Period to 31 December 2020

Achievements and performance (continued)

Grants, donations and support of ministry and missionary work (continued)

Grant Application: £24,750 - to train 25 individuals to become parent group leaders in schools and nurseries

The training to become a parent group leader is rigorous and careful attention is taken to ensure attendees are ready to deliver groups safely to parents before they are approved as a parent group leader.

Impact

With the grant provided by SHCJ 25 parent group leaders will be trained. They have the potential to work with 12 groups of parents, each with 10-12 per group, up to three times a year. This equates to 432 parents and their children reached each year. The majority of their work happens in areas of high deprivation, in children’s centres, schools, nurseries and other settings. They aim to target these bursaries in the areas where the need is greatest in England, Wales and possibly N Ireland

Throughout the UK Family Links has trained over 19,000 professionals such as teachers, school staff, social workers, health visitors, educational psychologists, community centre workers, prison staff, adoption workers and youth workers to deliver Family Links programmes. These people are then able to deliver one or several of the Family Links programmes as part of their main job.

Other programmes available include those for antenatal parents and for families with complex needs. To date, Family Links has worked with over 215,000 parents and 450,000 children.

Case study

A Mum - The Nurturing Programme for the first time in my life has really made me realise that in order to nurture my children I needed to nurture myself and I needed to make positive changes.

I have now come through this course and I feel different, I feel I am a good Mum, but I also feel I’m a good person and I like who I am now. The Four Constructs really are the foundations of all the changes I have made and am making.

I know what type of parent I want to be. I talk to my children with respect and most importantly, I praise all their efforts with encouragement and rewards. I have stopped praising followed by a criticism.

I now feel the most complete I have ever felt. I have let go of the weight bearing down on my head and I feel confident that as a family we were not off the rails but needed the help of the programme to bring to the front all the good things in our family.

Society of the Holy Child Jesus CIO 17

Trustees’ report Period to 31 December 2020

Achievements and performance (continued)

Grants, donations and support of ministry and missionary work (continued)

Hackney Migrant Centre - social justice, migrant drop in centre

Hackney Migrant Centre was established in 2008 in response to the lack of advice and support available to refugees, asylum seekers and other migrants in Hackney and the local area, which led to many living in deep poverty; experiencing exploitation and homelessness; or suffering from mental and physical health issues.

Their work is delivered towards three, interrelated aims:

Grant Application: £20,000 - core services, primarily the holistic drop-in and support service

Visitors are supported to resolve crisis resulting from irregular immigration status.

Visitors receive support to cope with destitution, housing and health issues.

HMC offers visitors a supportive environment to reduce social isolation and mental distress.

Impact

The grant from SHCJ will help HMC welcome around 700 visitors in a year, over half of them with dependents, from 75 different countries. HMC is open to all migrants, regardless of immigration status, background and area of residence. Visitors to the drop-in include refugees, asylum seekers, refused asylum seekers, people with limited leave to remain and NRPF, undocumented people and “overstayers”. 2/3 of our visitors have NRPF or lack the right to work.

Society of the Holy Child Jesus CIO 18

Trustees’ report Period to 31 December 2020

Achievements and performance (continued)

Grants, donations and support of ministry and missionary work (continued)

Case study: Clara’s story [pseudonym to protect identity]

Clara is a single mother, the sole carer for her three children. When she first visited Hackney Migrant Centre, she was destitute and facing eviction from her home. Clara’s abusive husband had left her some months earlier, when she stood up to him and refused to allow him to take their daughters to Nigeria to undergo Female Genital Mutilation (FGM). A survivor of this practice herself, Clara fought for her daughters to avoid the same fate. Without her own source of income, Clara was not able to pay rent and her landlord began harassing the family. Bailiff action had also been initiated by the local authority to recover unpaid council tax.

HMC began working with Clara to bring an end to the bailiff action and negotiate with the local authority to suspend the debt until Clara had a stable source of income. A housing solicitor helped Clara with her landlord and found that the eviction proceedings had not been issued correctly, so she and her family did not have to leave and end up on the streets. She was helped with foodbank vouchers and a hardship grant to pay for essentials for herself and her children. Clara received immigration advice at the HMC drop-in, where she was advised that she could apply for asylum as a survivor of FGM, as well as asylum support housing. Clara’s mental health was affected so we helped her access counselling. We stayed closely in touch with her as she was placed in asylum support housing.

Trees for Cities – Environmental Justice/Education

Trees for Cities (TfC) are the only UK charity helping to improve lives by creating greener spaces and healthier environments in urban areas. Their objectives are to help grow stronger communities, enhance urban spaces, and improve health and happiness in parts of cities that need it most.

Grant Application: £10,000 Woodland Creation in London programme The grant will be used to:

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Trustees’ report Period to 31 December 2020

Achievements and performance (continued)

Grants, donations and support of ministry and missionary work (continued)

Impact

The grant from SHCJ will help Trees for Cities

They are based in London and work all over the UK. Since 1993 they have engaged over 70,000 volunteers to plant over one million trees.

Case study

During December 2018 we worked in Partnership with Enfield Council and planted over 2,500 trees with 391 volunteers. The site at Montagu Recreation Ground, Enfield, was underused but has a lot of potential to serve the local community for recreation, socialising, exercising, educational visits or simply relaxing under the shade of the new tree canopy in continuously increasing temperatures. Working with the local community, Enfield Council and the wider network of TfC volunteers, we have transformed Montagu Recreation Ground into beautiful community urban woodland.

Volunteer quotes –

''How soothing the experience was. I felt good and really felt like I was helping and making an impact.''

“The community spirit and the legacy it will leave for future generations.''

''Getting people from all cultures together and helping the environment.

Support of Society Ministry in the Africa Province

The African Province of the Society of the Holy Jesus is growing in number of sisters and so is expanding its ministries particularly in education. The trustees have been pleased to support the expansion of the Society’s educational ministry in Nigeria and Ghana.

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Trustees’ report Period to 31 December 2020

Achievements and performance (continued)

Support of Society Ministry in the Africa Province (continued)

During the year, the charity provided support for ministry in the African province. Funds were given for the building of a 28 unit primary classroom block, laboratories and an Administration Block in Cornelia Connelly School of the Holy Child Jesus, Abeokuta, Nigeria. Funds were also supplied for furniture and furnishings as well as a school bus. Students moved into the new block in January 2021. Enrolment in the school is increasing. The school which initially started with 6 pupils now has 60 pupils and continues to grow.

Funding was also provided for the construction of a dormitory at Holy Child College, Asa, Nigeria which is the first co-educational secondary school opened by the Society in Nigeria. The dormitory will accommodate 144 students.

Sr Genevieve Ibedu, SHCJ School Adminstrator writes:

It is with a deep sense of gratitude that I write to the trustees of the Society of the Holy Child Jesus CIO to express the heartfelt thanks of the community of Holy Child College for the support you have given to the growth and development of Holy Child College, Asa. The following are the benefits the hostel has offered the students:

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Trustees’ report Period to 31 December 2020

Achievements and performance (continued)

Support of Society Ministry in the Africa Province (continued)

The trustees also approved funding for the construction and furnishing of a multipurpose hall and a perimeter fence wall to make the school more secure for students and staff in the boarding houses.

In Ghana the charity is supporting development of Cornelia Connelly School of the Holy Child Jesus in Cape Coast. The school is expanding as a Junior High School as well as providing education at primary level. The trustees approved funding for the construction of a dormitory, installation of solar powered electrity and provision of a bus and pick up truck.

The development of ministry in the African province has necessitated the development of a

Projects Office to oversee planning and sustainable management of the ministries owned by the province. The office is staffed by three sisters, the Projects Coordinator, the Finance Director and the Grants Writer. The trustees of the CIO approved funding for the setting up of the project office and purchase of IT and communications equipment.

Sister Esther James, Projects Coordinator writes:

In my role I see to ongoing planning, monitoring, supervision, and evaluation of projects. The funding of the Projects Office has enabled me to efficiently and effectively communicate and reach out to building consultants, contractors, ministry administrators, project directors as well as office team members without having to always travel to the site.

I have also been empowered by skilled consultants who have been providing me with ongoing training in planning and finance management. They have taught me many things about developing short-term and long-term plans for projects/ministries including:

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Trustees’ report Period to 31 December 2020

Achievements and performance (continued)

Support of Society Ministry in the Africa Province (continued)

I am grateful to our sisters and all our donors. Your support has enabled us to bring lasting change to the lives of many vulnerable and poor in our society through the establishment of new schools, hospitals etc in different parts of our Province in Nigeria and Ghana.

Care for Retired Sisters

The charity runs a care home, Apley Grange in Harrogate, North Yorkshire. Care is provided for members of the congregation and other women residents who are not members of the Society. The primary aim is to provide appropriate individual and personalised care, including nursing care when needed. The home can accommodate 42 residents. On 31 December 2020 there were 34 long term residents.

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Trustees’ report Period to 31 December 2020

Achievements and performance (continued)

Care for Retired Sisters (continued)

Running a care home has been particularly challenging this year given the situation with Covid-19. The focus of management was on keeping residents and staff as safe as possible. Stocks of PPE had to be acquired, enhanced infection control put in place and regular testing of residents and staff undertaken. Several staff needed to shield and were supported with full pay by the charity. Care and safety of residents were at the fore of all decision making. Regular contact was maintained with CQC who assessed Apley Grange as ‘low risk’ for Covid-19. During the year a decision was taken to stop accepting people seeking respite care due to the risk it could present to the safety of long-term residents. When visiting was restricted the staff supported residents in their use of tablets and laptops to maintain essential contact with family and friends. Most of the SHCJ residents participated in a number of Zoom meetings with other members of the province during the year and a virtual Christmas party. The pastoral care team ensured that a range of

activities were available for residents. During the first lockdown the pastoral care team worked from home and maintained contact with residents by phone and email.

In January 2020, the trustees put a new Governance Board in place. The board is comprised of the Province leader, two members of the province leadership team, the province bursar, the province Finance Director, the senior management of Apley Grange and an independent director. The independent director offers professional management support to both the trustees and the senior management of Apley Grange. The Governance Board is the accountability framework between Apley Grange management and the province leadership team.

The appointment of an independent director has proved invaluable in the Covid-19 crisis situation in which we have found ourselves this past year. He has been more involved in the management of Apley Grange than originally envisaged and has given great support to the Senior Management. The independent director and the management team held formal meetings on a weekly basis to ensure that they were constantly being responsive to the situation. The independent director has been impressed by the hard work, commitment and professionalism of the senior management team and the support and dedication of all the staff. The trustees wish to express their thanks to the management and staff of Apley Grange who have provided wonderful care in challenging circumstances.

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Trustees’ report Period to 31 December 2020

Achievements and performance (continued)

Care for Retired Sisters (continued)

In December 2019 CQC inspected Apley Grange and gave an overall rating of ‘GOOD’ as well as a rating of ‘GOOD’ for each area inspected. Below are extracts from the overall summary of the CQC report.

People were treated with dignity and respect and their independence was promoted. Staff encouraged people to engage with their relatives and friends. Activities and events were arranged with people’s hobbies and interests in mind. People were supported to access the wider community.

People were supported to have maximum choice and control of their lives and staff supported them in the least restrictive way possible and in their best interests; the policies and systems in the service supported this practice. People’s choices were respected by staff.

The registered manager was very responsive to feedback and clearly committed to continually improve the service. They promoted a very person-centred culture. Staff worked together to effectively meet people’s needs and improve their quality of life. Regular audits helped monitor the quality and safety of the service.

Education

Supporting the identity and mission of Holy Child schools is very important to the Society and we seek to support those working in the schools of the Holy Child Education Network by providing resources and advice, and through the appointment of governors. In addition, we appointed a coordinator of the Education Network in January 2020 who will work with the schools to produce leadership and governance materials to facilitate lay engagement with the Holy Child vision and mission.

Each year the Society runs a residential conference for head teachers and chaplains with an emphasis on the distinctive ethos of Holy Child Schools and encouraging school leaders to develop their knowledge and understanding of the educational vision of Cornelia Connelly. The sisters also facilitate the eight Holy Child schools working together, resulting in the creation of shared resources for religious education, engagement with ecology and the local environment and collaboration and peer-support between school leaders.

Covid-19 restrictions have meant that the schools could not physically meet together in 2020 but their link with the SHCJ community has helped to keep the schools in contact with each other throughout this challenging year. Celebrations for the Society’s 175[th] anniversary have been a particular focus for the schools and significant dates in this year have been marked with shared assemblies and resources, student projects and communications between the schools. A Zoom meeting took the place of the March 2021 conference and schools will meet together to celebrate and articulate their common Holy Child identity and mission and plan for a face-to-face conference in September 2021.

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Trustees’ report Period to 31 December 2020

Achievements and performance (continued)

Worship and Prayer

Sisters continued to live and deepen their life of prayer and their spiritual lives. The manner in which they did this changed over the last year. Many sisters participated in worship online using churchservices.tv. Sisters also offered prayer opportunities online. A weekly prayer service for sisters, associates and friends was hosted on Zoom.

Human and spiritual development and pastoral work

Over the past year as a result Covid-19 restrictions and social distancing sisters have had to adapt the way that they offer spiritual support to people. Spiritual direction was offered online using online platforms and sisters accompanied people on individually guided retreat, again using online platforms. One directee indicates how important this has been for her:

I have been involved in spiritual direction for many years and when the pandemic forced everyone to observe physical distancing last March decided that having spiritual direction online was better than not having it at all. My regular sessions of direction have almost all been online since then and while I miss the presence of my director in the room, I have continued to feel connected and able to speak safely and freely via the internet. Even moments of quiet together are possible. Having that regular safe space in which to explore prayer and what God might be saying in my current circumstances has been a lifeline in what is a very isolating experience of lockdown and I continue to look forward to meetings with my director.

The Cherwell Centre is a space in Oxford where individuals and groups may avail of quiet days of reflection or retreat. Groups can use the conference room for training sessions or meetings. In the last six months from September 2019 to March 2020 the Centre was used by the following groups: Oxfordshire Cooperative Training Service, Family Links, Windle Trust, Emmanuel Church, University Church, a Lectio Divina Group, and a group training in psychotherapy. The Centre closed in March 2020 because of Covid-19 restrictions. It opened again in August 2020 and between then and closure again at the end of December 2020 only two groups used the Centre. Understandably there was no demand for rooms for face-to-face meetings.

The charity continued to provide financial support to other charities and groups that are in line with the ethos and aims of the Society. Amongst these groups are Fare Share, Dementia UK, Samaritans, International Liberty Association, Mary’s Meals, Andante, UNICEF and Care International.

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Trustees’ report Period to 31 December 2020

Achievements and performance (continued)

Human and spiritual development and pastoral work (continued)

Individual sisters work in local parishes offering pastoral support and spiritual accompaniment. There is a small pool of sisters who do meaningful work within organisations in the wider community and many do so on a voluntary basis.

Associates

Associates are men and women who are not members of the Society but who choose to share in some way in the mission and spirit of the Society. The group is supported particularly by two members of the Society. The Associates share the sisters’ interest in justice and peace. They organise retreats and workshops for their members.

Volunteers

The majority of sisters are retired. Many give their time voluntarily to different organisations that support the poor, vulnerable, marginalised and elderly.

A number of sisters are involved in administering the work of the Society and charity. Without their contribution the charity would be unable to function as effectively as it does. The contribution is difficult to quantify, it is estimated that it saves the charity in the region of £235,000 per annum.

Covid-19

Covid-19 has presented the greatest challenge to the trustees in the past year. Sisters have had to adapt to restrictions which have limited their movements and meant they had to find new ways of engaging with people and supporting one another. Ministries such as the care home in Apley Grange and the Cherwell Centre had to change their way of working. Apley Grange has been supported by government grants for PPE and infection control. However, the home has not received anyone for respite care and has not received new long term residents. This has impacted on fee income. The situation regarding the lack of insurance to cover Covid-19 incidents in care homes is of considerable concern to the trustees who are seeking to mitigate the associated risks as best they can. The Cherwell Centre had to close in March 2020 for four months and again at the end of December 2020. These closures and the loss of demand while open impacted on income.

The charity’s income will no doubt continue to be affected because of likely falls in investment income and income generated from the Cherwell Centre. In terms of our expenditure, we can foresee a rise in our expenses due to a rise in the cost of living during the crisis. However, we do not anticipate that grant making may need to be curtailed at present. We will continue to keep both income and expenditure under review.

Whilst there will undoubtedly be challenges ahead, we do not expect material concerns to arise over the charity’s financial position.

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Trustees’ report Period to 31 December 2020

Financial review

Results for the period

A summary of the results for the period from 1 September 2019 to 31 December 2020 can be found on page 44 of this report and accounts. The CIO was operational from 1 September 2018 and hence the comparative income and expenditure represent the activities for the 12 month period to 31 August 2019.

Total income amounted to £4.67 million (period to 31 August 2019: £3.85m). £1.2 million (period to 31 August 2019: £1.2m) was received by way of donations and legacies. This figure includes salaries and pensions of the sisters amounting to £1.1 million donated to the charity using a Gift Aid compliant deed of covenant (period to 31 August 2019: £811k). Investment income and interest receivable totalled £2.7 million (period to 31 August 2019: £2m).

The 2019 figures include the transfer (or donation) of the assets and liabilities of the Charitable Trust with effect from 1 September 2018 which provided income of £105.4 million to give total income of £109.3 million.

Expenditure for the period ended 31 December 2020 totalled £7.89 million (period to 31 August 2019: £7.49 million). The total expenditure on the provision of residential care services to fee paying residents was £0.7 million (period to 31 August 2019:£0.6 million) with staff costs representing a very significant proportion of this. Staff costs in total amounted to £2.1 million (period to 31 August 2019: £1.4 million). Total expenditure incurred on maintaining the members of the Society and supporting them in their pastoral work and ministry amounted to £3.2 million (period to 31 August 2019: £2.4 million). Grants and donations amounted to £3.6 million (period to 31 August 2019: £4.1 million) following the development of the charity’s grant making activities in the period. Fees paid to the charity’s investment managers during the period amounted to £0.4 million (period to 31 August 2019: £0.5 million).

Net expenditure before net investment gains was £3,216,911 (period to 31 August 2019: net income £101,857,935). Net investment gains of £6,714,355 (period to 31 August 2019: £4,748,900) resulted in a net increase in funds for the period of £3,497,444 (period to 31 August 2019: net increase of £106,606,835).

Reserves policy and financial position

Reserves policy

The reader will discern from the foregoing that the charity carries out a diverse range of activities and is responsible for care and support of sisters whose average age is increasing and whose needs are changing. The trustees have examined the need for free reserves i.e. those unrestricted funds not invested in tangible fixed assets, designated for specific purposes, or otherwise committed. In considering the level of reserves, trustees take into account forecasts of future income and expenditure, potential needs and risks, and the need to ensure the continuity of activity.

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 Covid-19 pandemic.

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Trustees’ report Period to 31 December 2020

Financial review (continued)

Reserves policy and financial position (continued)

Reserves policy (continued)

The trustees consider that, given the nature of the charity’s work and its commitments, the level of free reserves that should be available to the charity should be between two and three years’ expenditure.

Financial position

At 31 December 2020, the charity had net assets totalling £110,104,279 (period to 31 August 2019: £106,606,835).

Of this, £4.1 million was restricted and was to be applied for specific purposes.

A further £84.2 million had been set aside or designated by the trustees for specific reasons:

£8.4 million (period to 31 August 2019: £8.7 million) represented tangible fixed assets essential for the support and work of the Sisters and not available to meet ongoing expenditure.

Therefore, at 31 December 2020, the CIO had free reserves of £13.3 million (period to 31 August 2019: £13.3 million). Whilst the level of free reserves exceeded the reserves policy of the CIO, the trustees are conscious of the fact that listed investments comprise the key asset and that these may be subject to significant fluctuation given the current economic climate, Covid-19 pandemic and political uncertainty in the United Kingdom, Europe and elsewhere in the world. Consequently, the trustees are of the opinion that the level of free reserves is adequate but not excessive at the current time. In particular, the level of reserves is deemed sufficient when considered in the light of the continued uncertainties arising due to the Covid-19 pandemic.

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Trustees’ report Period to 31 December 2020

Financial review (continued)

Tax exemptions etc

The beneficiaries of the work of the charity have the assurance that all of the income must be applied for charitable purposes in furtherance of the object of advancing the Roman Catholic faith. The charity enjoys tax exemption on income from its activities and on its investment income and gains provided that these are applied for their charitable aims. It is also entitled to a reduction of 80% on business rates on the property occupied for charitable purposes. 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 this into practice through a wide variety of religious and other charitable works, including the operation of a care home.

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

The charity has brought substantial benefits to the residents in its care home, the local communities where sisters live, and society in general, through its newly developed grants programme, the social and pastoral work, care services, and education services provided by sisters, often on a voluntary basis. In addition, the charity has created social assets without cost to the Treasury through social and educational projects supported, the care home’s links with the wider community, and through the significant amount of voluntary work carried out by the sisters.

Future plans

The main change that the trustees see to the charity’s activities in the coming year is recovering demand for care at Apley Grange, Harrogate and use of the Cherwell Centre, Oxford. In both cases demand for services has been impacted by Covid-19.

The trustees will continue to meet the following objectives:

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Trustees’ report Period to 31 December 2020

Future plans (continued)

Governance, structure and management

Governing document

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

Liability of the member

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

Governance

In terms of canon law, the Society is governed at international level by the Superior General and her General Council in Rome. They are elected every six years at a General Chapter, which is a meeting of elected representatives of all provinces of the Society. The European Province is governed by the Provincial Leadership Team (PLT), comprising the Province Leader and three other members, all of whom are trustees, and the membership is involved in their selection.

In terms of civil law, the charity (which is a CIO) is governed by a constitution dated 14 March 2018 and is registered with the Charity Commission, Charity Registration Number 1177555. In addition to the members of the PLT, there are six further trustees who also understand the work of the province. The trustees work closely with the Province Leadership Team and its advisory committees. Members of the Province Leadership Team and the trustee body are chosen for their personal qualities, skills and understanding of the needs and aspirations of the Province as a whole. The trustees are appointed by the Province Leader based on their knowledge of the Province and particular competencies. At any one time there must be a minimum of four trustees and a maximum of ten.

As all trustees are members of the Society they have a detailed knowledge of the charity and of its structure. On being appointed new trustees have a period of induction when they obtain a full briefing of their responsibilities and the charity’s position. During each year, individual trustees attend seminars and training courses to keep themselves up to date with governance, finance and property issues.

All trustees are members of the Society of the Holy Child Jesus and their living and personal costs are borne by the charity. They receive no remuneration for their services as trustees.

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Trustees’ report Period to 31 December 2020

Governance, structure and management (continued)

Governance (continued)

The names of the trustees who served during the period 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 date of signing the accounts are given below.

Sister Angela O’Connor

Sister Angela is Province Leader. She has previous experience of leadership having been a member of the province leadership team and province bursar for three years. She has also worked in school administration and in parish pastoral work and has directed the work of the Cherwell Centre, in Oxford.

Sister Marguerite Bouteloup

A former teacher, Sister Marguerite works as a visitor to the homebound, serves on a school board and has responsibility for the Society finances in France. She has worked as the province archivist.

Sister Jenny Bullen

Sister Jenny currently works as a primary school teacher and as a counsellor in a secondary school.

Sister Eileen Crowley

Sister Eileen is a member of the Province Leadership Team. She has extensive experience in the area of pastoral care having been a prison chaplain for many years.

Sister Maria Dinnendahl

Sister Maria, a former teacher and Province Bursar, has extensive experience of Province administration and school governance.

Sister Judith Lancaster

Sister Judith is a member of the Province Leadership Team. She is a spiritual director and has prior experience of province leadership having served on a team for six years. She has been the Society Archivist and has experience in school governance.

Sister Catriona McPhail

Sister Catriona, a former midwife and midwife tutor, currently volunteers with St Joseph’s Hospice providing end of life support and services to patients with dementia. She is also a member of the Province investment committee.

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Trustees’ report Period to 31 December 2020

Governance, structure and management (continued)

Governance (continued)

Sister Carmel Murtagh

Sister Carmel, a former teacher, has experience of province leadership and administration having previously served as province leader for three years and as a team member for four years. She also served on the Society leadership team for six years.

Sister Celestina Oyidu Okwori

Sister Oyidu is a member of the African Province Leadership Team. She is also a member of the Society’s International Investment Committee. She has experience of administration and is currently responsible for finance in projects being developed in the African province.

Sister Anne Stewart

Sister Anne is a member of the Province Leadership Team. She is a former teacher and community worker. She has extensive experience of working in community projects.

Trustees’ responsibilities statement

The trustees are responsible for preparing the trustees’ report 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 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:

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Trustees’ report Period to 31 December 2020

Governance, structure and management (continued)

Trustees’ responsibilities statement (continued)

The trustees are responsible for keeping proper accounting records that are sufficient to show and explain the charity’s transactions and 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, the relevant 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 policies, activities and assets of the charity. As the executive committee of the trustees, the Province Leadership Team meets six times a year and the trustees meet three times a year to review developments regarding the charity or its activities and make any important decisions. When necessary, the trustees seek advice and support from the charity’s professional advisers including property consultants, investment managers, solicitors and accountants. The day to day management of the charity’s activities and the implementation of policies, is delegated to the appropriate members of the Society or senior staff.

The European province comprises 62 sisters who live in several communities in England and Wales, France and Ireland (the latter being supported by separate French and Irish charities). In England and Wales, the communities are situated in London, the Midlands, the South East, the North of England and Wales, the largest of the communities being Apley Grange, the care home for the sisters in Harrogate. This is run by a Registered Care Manager who has several years of experience in caring for older people in a care environment. She is directly managed by an independent director who has expertise in care sector management, and who supports the senior management team. A Governance Board, comprised of the Province leader, two members of the province leadership team, the province bursar, the province Finance Director, the senior management of Apley Grange and the independent director is the framework of accountability between Apley Grange management and the province leadership team. The Governance Board meets four times a year.

Key management

The trustees, together with the senior management team of the care home and the Finance Director, comprise the key management of the charity who direct, control, run and operate the charity on a day to day basis.

All trustees are members of the Congregation and whilst their living and personal expenses are borne by the charity they receive no remuneration or reimbursement of expenses in connection with their duties as trustees.

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Trustees’ report Period to 31 December 2020

Governance, structure and management (continued)

Key management (continued)

The pay of the senior management team of the care home is reviewed annually by the management committee which makes recommendations to the trustees who then consider whether or not to approve the proposals. Pay is normally increased in accordance with average earnings. In view of the nature of operations of the care home and the national shortage of qualified nurses and care staff, the trustees benchmark pay rates against pay levels in other similar charitable care homes and the National Health Service. The remuneration benchmark is based on published pay grades for nursing, care and administrative staff but considers additional responsibilities to ensure that the remuneration paid is fair not out of line with that paid for similar roles. The pay of the finance director is agreed by the trustees and reviewed annually.

Working with other organisations

The charity works closely with a number of other charities and public bodies which work in the fields of education, providing support to vulnerable groups, and working for justice and peace.

Examples of organisations with which the charity has cooperated during the period:

Risk management

The outbreak of the Covid-19 pandemic presented us with challenges and threats to the well-being of our charity and its activities which could not have been foreseen. The trustees recognise their responsibility for the management of risks faced by the charity and the sisters. Risk assessments have been carried out and new policies and procedures put in place. These are reviewed regularly.

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Trustees’ report Period to 31 December 2020

Governance, structure and management (continued)

Risk management (continued)

We note above the financial and operational effects of Covid-19. Over and above these, the areas identified for particular attention within our risk management strategy are:

Governance and management covers the risk of the province, and hence the charity, suffering from a lack of direction, at the skills and training of its members and staff, and the good use of resources.

Operational looks at the risks inherent in activities including the operation of the care home, its members engaging in inappropriate activities, the unsuitability of buildings, poor maintenance, shortcomings in the services provided, difficulties with staff, poor health and safety.

Financial risks include those arising as a result of poor budgetary control, inappropriate spending, poor accounting, and inappropriate investment policies.

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

Laws, regulations, external and environment consider the effects of government policies, the consequences of non-compliance with laws and regulations, and poor risk assessment in the care home and elsewhere.

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

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

  1. Inappropriate investment policies. Investment advisors are given guidance on investment strategies to be undertaken (low/medium risk and no speculative activity), with ethical investment guidelines. Performance is reviewed quarterly and on a 1/3/5 year basis. The investment committee, which includes three trustees, is aided in reviewing the performance of managers by Portfolio Review Services. Reporting is made to the trustees at their meetings.

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Trustees’ report Period to 31 December 2020

Governance, structure and management (continued)

Risk management (continued)

  1. Safeguarding allegations.

The charity is fully compliant with the safeguarding policies of the Roman Catholic Church in England and Wales and members receive appropriate training and updating. All active members of the Society have been DBS checked, as have all staff involved in the care of vulnerable adults and any volunteers who work with members of the Society. The care home at Apley Grange has its own safeguarding policy and training sessions are regularly given to staff. The Society is aligned with the Roman Catholic Diocese of Lancaster Safeguarding Commission and one member of the Society is the charity’s safeguarding representative and also a member of the Commission. Should there be an allegation of historic abuse, the Society is very well supported and advised by the Commission.

  1. Misuse of resources.

Budgets are drawn up annually and monitored. Any large items of expenditure are fully discussed with the trustees at their meetings. Significantly large donations for the development of ministries in the growing African Province of the Society are fully documented and the Province Leader is involved in negotiations and monitoring through attendance at international meetings of the whole Society.

  1. Lack of compliance with regulations.

  2. This applies particularly to the care home, Apley Grange in Harrogate. To mitigate risk, the Governance Board, comprising of province leadership team members, the independent director and the management team, meets quarterly. It alerts the trustees to any significant issues. The home manager has in place all the required policies, risk assessments and procedures. The home is regularly inspected by the Care Quality Commission.

  3. Covid-19

During the current Covid-19 pandemic, we continue to communicate with our investment managers and, whilst there are concerns over the falls in world stock markets, we acknowledge also that we are long term investors. As such, the charity will be able to wait for markets to recover over time whilst we, as trustees, keep a watching brief.

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Trustees’ report Period to 31 December 2020

Employees, volunteers, and members of the Society

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

Approved by the trustees and signed on their behalf by:

Angela O’Connor Trustee

Approved by the trustees on: 2 June 2021

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Independent auditor’s report 31 December 2020

Independent auditor’s report to the trustees of the Society of the Holy Child Jesus CIO

Opinion

We have audited the accounts of the Society of the Holy Child Jesus CIO (the ‘charity’) for the period from 1 September 2019 to 31 December 2020, 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 financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charities ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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

Society of the Holy Child Jesus CIO 39

Independent auditor’s report 31 December 2020

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.

Society of the Holy Child Jesus CIO 40

Independent auditor’s report 31 December 2020

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 extend 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 how fraud might occur by:

Society of the Holy Child Jesus CIO 41

Independent auditor’s report 31 December 2020

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:

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.

We did not identify any irregularities, including fraud.

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.

Society of the Holy Child Jesus CIO 42

Independent auditor’s report 31 December 2020

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 Statutory Auditor 130 Wood Street London EC2V 6DL

Date: 14 June 2021

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

Society of the Holy Child Jesus CIO 43

Statement of financial activities Period to 31 December 2020

Notes Period from 1 September 2019 to 31
December 2020		 Period from 1 September 2019 to 31
December 2020		 Period from 1 September 2019 to 31
December 2020		 Period from 14 March 2018 to
31 August 2019		 Period from 14 March 2018 to
31 August 2019		 Period from 14 March 2018 to
31 August 2019
Unrestricted
funds
£		 Restricted
funds
£		 Total
funds
2020
£		 Unrestricted
funds
£		 Restricted
funds
£		 Total
funds
£
Income from:
Donations
1
Investments and interest
receivable
2
Charitable activities
. Residential care home
Other sources
. Miscellaneous income
. Government Coronavirus related
grants
. Surplus on disposal of tangible fixed
assets
3
Transfer from the Society of the Holy
Child Jesus Charitable Trust
22
Total income
Expenditure on:
Raising funds
. Investment management costs
Charitable activities
. Support of members of the Society
and their ministry
4
. Provision of residential care
services
5
. Donations and grants in support of
charitable activities
6
Total expenditure
Net (expenditure) income for the
period before gains on
investments
8
Net investment gains
Net income and net movement in
funds
Reconciliation of funds:
Fund balances at 1 September 2019
Fund balances at 31 December 2020		 1,208,099
2,532,805
713,613
28,713
—
291		 10,750
118,861
—
—
56,364
—		 1,218,849
2,651,666
713,613
28,713
56,364
291		 1,190,091
1,939,411
576,370
41,417
—
600		 3,000
99,234
—
—
—
—		 1,193,091
2,038,645
576,370
41,417
—
600
4,411,815
—		 185,975
—		 4,669,496
—		 3,747,889
101,910,200		 102,234
3,587,417		 3,850,123
105,497,617
4,411,815 185,975 4,669,496 105,658,089 3,689,651 109,347,740
370,139
3,232,404
670,301
3,466,791		 —
—
56,364
90,408		 370,139
3,232,404
726,665
3,557,199		 462,286
2,375,940
565,435
4,049,986		 —
—
—
36,158		 462,286
2,375,940
565,435
4,086,144
7,739,635 146,772 7,886,407 7,453,647 36,158 7,489,805
(3,256,114)
6,393,676		 39,203
312,385		 (3,216,911)
6,714,355		 98,204,442
4,647,901		 3,653,493
100,999		 101,857,935
4,748,900
3,145,856
102,852,343		 351,588
3,754,492		 3,497,444
106,606,835		 102,852,343
—		 3,754,492
—		 106,606,835
—
105,998,199 4,106,080 110,104,279 102,852,343 3,754,492 106,606,835

Society of the Holy Child Jesus CIO 44

Balance sheet 31 December 2020

Notes 31
December
2020
£		 31
August
2019
£
Fixed assets:
Tangible assets
11
Investments
12
Current assets:
Debtors
13
Cash at bank and in hand
Total current assets
Liabilities:
Creditors: amounts falling due within one year
14
Net current assets
Total net assets less current liabilities
Creditors: amounts falling due after more than one year
14
Total net assets
The funds of the charity:
Restricted funds
15
Unrestricted funds
. Designated funds
16
. Tangible fixed assets fund
17
. General funds		 8,445,535
101,185,884		 8,690,310
97,216,834
109,641,419 105,907,144
127,763
1,110,133		 459,467
1,045,583
1,237,896
(640,036)		 1,505,050
(615,359)
608,111 889,691
110,239,279
(135,000)		 106,796,835
(190,000)
110,104,279 106,606,835
4,106,080
84,209,281
8,445,535
13,343,383		 3,754,492
80,900,891
8,690,310
13,261,142
110,104,279 106,606,835

Approved by the trustees and signed on their behalf by:

Angela O’Connor

Trustee

Approved on: 2 June 2021

Society of the Holy Child Jesus CIO 45

Statement of cash flows Period to 31 December 2020

Notes
Period from 1
September
2019 to 31
December
2020
£		 Period from 14
March 2018 to
31 August
2019
£
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 tangible fixed assets
Purchase of tangible fixed assets
Proceeds from the disposal of investments
Purchase of investments
Net cash provided by investing activities
Change in cash and cash equivalents in the period
Change in cash and cash equivalent due to exchange rate
movements
Cash at bank and in hand at start of period
Cash held by investment managers at start of period
Cash and cash equivalents at 31 December 2020
B
(5,378,811)		 (5,299,842)
2,774,763
291
(76,998)
28,992,818
(27,341,372)		 1,896,184
(600)
(602,223)
47,224,221
(45,418,620)
4,349,502 3,098,962
(1,029,309)
—
1,045,583
2,781,901		 (2,200,880)
56,819
839,857
5,141,939

2,808,426		 3,837,735

Notes to the statement of cash flows for the period to 31 December 2020.

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

Period from 1
September
2019 to 31
December
2020
£
Period from 14
March 2018 to
31 August
2019
£
Net movement in funds (as per the statement of financial activities)
Adjustments for:
Depreciation charge
Transfer from Society of the Holy Child Jesus Charitable Trust
Gains on investments
Investment income and interest receivable
Net gains on disposal of tangible fixed assets
Decrease (increase) in debtors
(Decrease) increase in creditors
Net cash used in operating activities		 3,497,444
311,773
—
(6,714,355)
(2,651,666
(291)
208,607
(30,323)		 106,606,835
313,758
(105,497,617)
(4,748,900)
(2,038,645)
(600)
(116,745)
182,072
(5,378,811) (5,299,842)

Society of the Holy Child Jesus CIO 46

Statement of cash flows Period to 31 December 2020

B Analysis of cash and cash equivalents

Analysis of cash and cash equivalents
31
December
2020
£		 31
August
2019
£
Cash at bank and in hand
Cash held by investment managers
Total cash and cash equivalents		 1,110,133
1,698,293		 1,045,583
2,792,152
2,808,426 3,837,735

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.

Society of the Holy Child Jesus CIO 47

Principal accounting policies 31 December 2020

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 period from 1 September 2019 to 31 December 2020 with comparative information provided in respect to the period from 14 March 2018 to 31 August 2019.

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) issued on 16 July 2014, 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 requires the trustees and management 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 one year from the date of approval of these accounts.

Society of the Holy Child Jesus CIO 48

Principal accounting policies 31 December 2020

Assessment of going concern (continued)

The full impact on the charity’s income and expenditure and financial position following the emergence of the global Covid-19 pandemic is still unknown. Since March 2020 , the Covid-19 pandemic has changed the shape and nature of the world. It has impacted not only the basic nature of the social interactions but has also had a significant economic impact at every level in ways which have been outside of our control.

Sisters have had to adapt to restrictions which have limited their movements and meant they had to find new ways of engaging with people and supporting one another. Ministries such as the care home in Apley Grange and the Cherwell Centre had to change their way of working. Apley Grange has been supported by government grants for PPE and infection control. However, the Apley Grange has not received anyone for respite care and has not received new long term residents. This has impacted on fee income. The Cherwell Centre had to close in March 2020 for four months and again at the end of December 2020. These closures and the loss of demand while open impacted on income.

The charity’s income will no doubt continue to be affected because of likely falls in investment income and also in income generated from the Cherwell Centre. In terms of expenditure, the trustees foresee a rise in certain expenses due to a rise in the cost of living during the crisis but savings in other areas due to closures and lack of travel opportunities. The trustees do not anticipate that grant making will be curtailed at present.

The trustees will continue to keep both income and expenditure under review.

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, they acknowledge also that the charity is a long term investor. As such, the charity will be able to wait for markets to stabilise over time whilst the trustees keep a watching brief.

Undoubtedly, there will be challenges ahead but the trustees do not expect material concerns to arise over the charity’s financial position or going concern. The trustees have concluded that the charity will have sufficient resources to meet its liabilities as they fall due.

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, interest receivable, fees from the charity’s residential care home and income from other sources including the surplus on the disposal of tangible fixed assets.

Society of the Holy Child Jesus CIO 49

Principal accounting policies 31 December 2020

Income recognition (continued)

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.

Fees from the charity’s residential care home are recognised when receivable.

Legacies are included in the statement of financial activities when the charity is entitled to the legacy, the executors have established that there are sufficient surplus assets in the estate to pay the legacy, and any conditions attached to the legacy are within the control of the charity.

Entitlement is taken as the earlier of the date on which either: the charity is aware that probate has been granted, the estate has been finalised and notification has been made by the executor to the charity that a distribution will be made, or when a distribution is received from the estate. Receipt of a legacy, in whole or in part, is only considered probable when the amount can be measured reliably and the charity has been notified of the executor’s intention to make a distribution. Where legacies have been notified to the charity, or the charity is aware of the granting of probate, but the criteria for income recognition have not been met, then the legacy is treated as a contingent asset and disclosed if material. In the event that the gift is in the form of an asset other than cash or a financial asset traded on a recognised stock exchange, recognition is subject to the value of the gift being reliably measurable with a degree of reasonable accuracy and the title of the asset having being transferred to the charity.

Investment income is 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 derived from the levying of charges for residential care and support services is measured at the fair value of the consideration received or receivable, excluding discounts and rebates. Fee income is recognised when the charity is entitled to receipt under the relevant contractual agreements.

A surplus on the disposal of tangible fixed assets is defined as the difference between the sale proceeds and the net book value of the asset at the time of disposal and after deducting any costs associated with the disposal. In the case of disposing of a freehold property, the surplus is recognised at the time when legal completion of the sale takes place.

Society of the Holy Child Jesus CIO 50

Principal accounting policies 31 December 2020

Income recognition (continued)

Income from Government Coronavirus related grants is recognised when the charity has made a valid claim for the income, the amount can be measured and it is entitled to receive the income.

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. The classification between activities is as follows:

The majority of costs are directly attributable to specific activities. Certain costs in respect to the provision of residential care services have been allocated to expenditure categories by reference to the ratio of the number of fee paying residents to the number of residents who are members of the Society.

Society of the Holy Child Jesus CIO 51

Principal accounting policies 31 December 2020

Expenditure recognition (continued)

Governance costs comprise the costs which are directly attributable to the procedures for compliance with statutory requirements. Governance costs are allocated in full to expenditure on the support of members of the Society and their ministry.

Tangible fixed assets

With the exception of one flat held on a 999 year lease, all specialised land and buildings are freehold. They comprise the Society’s provincial administration centre, conference centre and care home for elderly sisters. They were stated at a trustees’ valuation made with professional assistance, in 1996 based on replacement cost for existing use. As permitted by FRS 102, with effect from 1 September 2014 the 1996 values assigned to these properties are now deemed to be their cost. Depreciation is provided at 2% per annum on a straight-line basis to write the specialised buildings off over their estimated useful economic life to the order.

The Chapel at Mayfield is not valued for the purposes of the accounts, as permitted by the Charities SORP FRS 102. It is a Grade I listed building and has been in the ownership of the sisters since 1863. The religious and historical nature of the building means that it would be difficult to obtain a meaningful valuation.

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.

Society of the Holy Child Jesus CIO 52

Principal accounting policies 31 December 2020

Fixed asset investments (continued)

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 as 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.

Deferred annuity contracts represent annuity contracts with an insurance company to provide for individual members of the Society on their retirement. The fund is revalued annually by the trustees. Any resultant surpluses and deficits on revaluation are credited or charged to the statement of financial activities.

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. Deposits for more than three months but less than one year have been disclosed as short term deposits.

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.

Society of the Holy Child Jesus CIO 53

Principal accounting policies 31 December 2020

Funds structure

The funds of the charity are, in the main, unrestricted and therefore available for use in furtherance of the charity’s objectives at the discretion of the trustees. Within the total unrestricted funds of the charity are funds representing tangible fixed assets and funds which the trustees have designated for specific purposes. Details of these are provided in note 16 and note 17.

Details of funds which are restricted for certain purposes are given in note 15.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of the transaction. Exchange differences are taken into account in arriving at the net movement in funds.

Services provided by members of the Society

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

Operating leases

Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged on a straight-line basis over the term of the lease.

Pension contributions

Contributions in respect of the charity’s defined contribution pension scheme are charged to the statement of financial activities when they are payable to the scheme. The charity’s contributions are restricted to the contributions disclosed in note 9. There were no outstanding contributions at the period ended 31 December 2020. The charity has no liability beyond making its contributions and paying across the deductions for the employees’ contributions.

Society of the Holy Child Jesus CIO 54

Notes to the accounts 31 December 2020

1 Income from: Donations


 Period from 1 September 2019 to 31
December 2020		 Period from 1 September 2019 to 31
December 2020		 Period from 1 September 2019 to 31
December 2020		 Period from 14 March 2018 to
31 August 2019		 Period from 14 March 2018 to
31 August 2019		 Period from 14 March 2018 to
31 August 2019
Unrestricted
Funds
£		 Restricted
Funds
£		 Total
£
 Unrestricted
Funds
£		 Restricted
Funds
£		 Total
£
Salaries, pensions, social
security and similar
support of individual
religious received under
Gift Aid compliant deed of
covenant
Other donations		 1,134,079
74,020		 —

10,750		 1,134,079

84,770		 881,401
308,690		 —
3,000		 881,401
311,690
1,208,099
10,750
1,218,849		 1,190,091 3,000 1,193,091

2 Income from: Investments and interest receivable

Period from 1 September 2019 to
31 December 2020		 Period from 1 September 2019 to
31 December 2020		 Period from 1 September 2019 to
31 December 2020		 Period from 14 March 2018 to
31 August 2019
Unrestricted
Funds
£
Restricted
Funds
£
Total
£
1,731,130
99,234
1,830,364
199,607
—
199,607
1,930,737
99,234
2,029,971
7,870
—
7,870
804
—
804
8,674
—
8,674
1,939,411
99,234
2,038,645		 Period from 14 March 2018 to
31 August 2019
Unrestricted
Funds
£
Restricted
Funds
£
Total
£
1,731,130
99,234
1,830,364
199,607
—
199,607
1,930,737
99,234
2,029,971
7,870
—
7,870
804
—
804
8,674
—
8,674
1,939,411
99,234
2,038,645		 Period from 14 March 2018 to
31 August 2019
Unrestricted
Funds
£
Restricted
Funds
£
Total
£
1,731,130
99,234
1,830,364
199,607
—
199,607
1,930,737
99,234
2,029,971
7,870
—
7,870
804
—
804
8,674
—
8,674
1,939,411
99,234
2,038,645
Unrestricted
Funds
£		 Restricted
Funds
£		 Total
£		 Unrestricted
Funds
£		 Restricted
Funds
£		 Total
£
Investment income
. Listed investments – UK
. Listed investments –
Overseas
Interest receivable
. Interest on cash held by
investment managers
. Bank interest – UK		 1,455,100
1,066,420		 43,967
74,864		 1,499,067
1,141,284		 1,731,130
199,607		 99,234
—		 1,830,364
199,607
2,521,520 118,831 2,640,351 1,930,737 99,234 2,029,971
8,776
2,509		 30
—		 8,806
2,509		 7,870
804		 —
—		 7,870
804
11,285 30 11,315 8,674 — 8,674
2,532,805 118,861 2,651,666 1,939,411 99,234 2,038,645

3 Income from: Surplus on disposal of tangible fixed assets

Period from 1 September 2019 to
31 December 2020		 Period from 1 September 2019 to
31 December 2020		 Period from 1 September 2019 to
31 December 2020		 Period from 14 March 2018 to
31 August 2019
Unrestricted
Funds
£
Restricted
Funds
£
Total
£
600
—
600		 Period from 14 March 2018 to
31 August 2019
Unrestricted
Funds
£
Restricted
Funds
£
Total
£
600
—
600		 Period from 14 March 2018 to
31 August 2019
Unrestricted
Funds
£
Restricted
Funds
£
Total
£
600
—
600
Unrestricted
Funds
£
291		 Restricted
Funds
£		 Total
£		 Restricted
Funds
£		 Total
£
Surplus on disposal of motor
vehicles		 — 291 — 600

Society of the Holy Child Jesus CIO 55

Notes to the accounts 31 December 2020

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

Period from 1 September 2019 to 31
December 2020		 Period from 1 September 2019 to 31
December 2020		 Period from 1 September 2019 to 31
December 2020		 Period from 14 March 2018 to
31 August 2019		 Period from 14 March 2018 to
31 August 2019		 Period from 14 March 2018 to
31 August 2019
Unrestricted
Funds
£


Restricted
Funds
£

—

—

—

—

—

—

—		 Total
£		 Unrestricted
Funds
£		 Restricted
Funds
£		 Total
£
Staff costs
Premises
Sisters’ living and ministry
expenses
Education, training and
spiritual renewal
Governance costs (note 7)
Other		 1,650,972
700,037
717,910
21,041
88,170
54,274		 1,650,972
700,037
717,910
21,041
88,170
54,274		 1,013,738
558,866
661,295
20,869
68,944
52,228		 —
—
—
—
—
—		 1,013,738

558,866

661,295

20,869

68,944

52,228
3,232,404 3,232,404 2,375,940 — 2,375,940

5 Expenditure on: Provision of residential care services

Period from 1 September 2019 to
31 December 2020		 Period from 1 September 2019 to
31 December 2020		 Period from 1 September 2019 to
31 December 2020		 Period from 14 March 2018 to
31 August 2019		 Period from 14 March 2018 to
31 August 2019		 Period from 14 March 2018 to
31 August 2019
Unrestricted
Funds
£		 Restricted
Funds
£		 Total
£		 Unrestricted
Funds
£		 Restricted
Funds		 Total
£
Staff costs
Premises
Welfare and other		 528,755
76,568
64,978
—

—

56,364		 528,755
76,568
121,342		 106,437
110,849
348,149		 —
—
—		 348,149
110,849
106,437
670,301
56,364		 726,665 565,435 — 565,435

Society of the Holy Child Jesus CIO 56

Notes to the accounts 31 December 2020

6 Expenditure on: Donations and grants in support of charitable activities

Period from 1 September 2019 to
31 December 2020		 Period from 1 September 2019 to
31 December 2020		 Period from 1 September 2019 to
31 December 2020		 Period from 14 March 2018 to
31 August 2019		 Period from 14 March 2018 to
31 August 2019		 Period from 14 March 2018 to
31 August 2019
Unrestricted
Funds
£		 Restricted
Funds
£		 Total
£		 Unrestricted
Funds
£		 Restricted
Funds
£
Total
£
Support of the work of the
Society overseas
Africa
Lagos
Generally through the Society’s
Generalate
General donations –
education
De La Salle School
St Augustines School
Priory School
Girton college
Maryvale Institute
St Marys Catholic Academy
St Annes & Guardian Angels
Primary School
Read Easy Oxford
St Augustine’s Primary School
Holy Child Community School,
Sallynoggin
St Teresa’s Catholic Primary
School
St Mary’s University
The Batey School		 2,598,451
3,300
96,910		 10,750
—
—		 2,609,201
3,300
96,910		 2,872,295
—
73,055		 —
8,000
—		 2,872,295
8,000
73,055
2,698,661 10,750 2,709,411 2,945,350 8,000 2,953,350
—
—
—
—
—
—
—
—
—
—
—
—
—		 20,000
2,200
10,000
10,539
3,000
1,100
7,987
1,000
—
2,500
—
—
—		 20,000
2,200
10,000
10,539
3,000
1,100
7,987
1,000
—
2,500
—
—
—		 —
—
—
—
—
—
—
—
—
1,500
—
257,750
—		 —
—
—
—
—
—
—
—
2,000
2,500
3,000
—
1,500		 —
—
—
—
—
—
—
—
2,000
4,000
3,000
257,750
1,500
— 58,326 58,326 259,250 9,000 268,250

Society of the Holy Child Jesus CIO 57

Notes to the accounts 31 December 2020

6 Expenditure on: Donations and grants in support of charitable activities (continued)

Period from 1 September 2019 to
31 December 2020		 Period from 1 September 2019 to
31 December 2020		 Period from 1 September 2019 to
31 December 2020		 Period from 14 March 2018 to
31 August 2019		 Period from 14 March 2018 to
31 August 2019		 Period from 14 March 2018 to
31 August 2019
Unrestricted
Funds
£		 Restricted
Funds
£		 Total
£		 Unrestricted
Funds
£		 Restricted
Funds
£
Total
£
General donations – other
Institutions
Forest Churches Emergency
Night Shelter
Jesuit Refugee Service
Dover Outreach Centre
Age UK Oxfordshire
Age International
The Gatehouse
Montana Care Home
CatEW
Ardgillan College
Where in the World fund
Unicef
Care International UK
Fareshare
Dementia UK
Lebanese Maronite Order
The Destitution Project
TRAC
JPIC
Oxfam Yeman Appeal
Salford Loaves and Fishes
Living Waters Storehouse
NJPN
New comfort zone
Casa Cornellia
Peadar King – KMF Productions
Mobray Community Church
Jesuit Missions – Cyclone
appeal
CAFOD
General donations under
£1,000
General donations to
individuals		 —
—
1,500
—
—
3,000
18,524
5,200
—
5,000
6,000
2,000
10,000
1,500
5,000
—
—
—
—
—
—
—
—
5,000
—
2,000
—
—
19,232		 1,000
10,000
1,000
—
2,000
—
—
—
—
—
—
—
—
—
—
4,000
1,000
1,000
2,000
20,000
2,000
1,000
3,000
5,000
—
—
5,000
250,000
13,201		 —
—
—
1,000
—
1,500
—
—
1,000
—
—
—
—
—
—
—
—
—
—
—
—
—
—
3,000
5,000
2,058
—
—
2,100
1,000

10,000

1,000

1,000

2,000

1,500

—

—

1,000

—

—

—

—

—

—

4,000

1,000

1,000

2,000

20,000

2,000

1,000

3,000

8,000

5,000

2,058

5,000

250,000

15,301
67,524 16,432 83,956 321,201 15,658
336,859
25,437
4,900
30,337
—		 3,500
3,500

Society of the Holy Child Jesus CIO 58

Notes to the accounts 31 December 2020

6 Expenditure on: Donations and grants in support of charitable activities (continued)

Period from 1 September 2019 to 31
December 2020		 Period from 1 September 2019 to 31
December 2020		 Period from 1 September 2019 to 31
December 2020		 Period from 14 March 2018 to
31 August 2019		 Period from 14 March 2018 to
31 August 2019		 Period from 14 March 2018 to
31 August 2019
Unrestricted
Funds
£		 Restricted
Funds
£		 Total
£		 Unrestricted
Funds
£		 Restricted
Funds
£		 Total
£
Grants
Abigail Housing
Amber Trust
Bakhita House
Beacon
Blackpool Foodbank
Bradford City of Sanctuary
Bridgebuilder Trust MK
Caritas Social Action Network
St Simeon's Church Trust
Church Action on Poverty
Cirencester Opportunity Group
Community Pride Salford CIC
Creative Dementia Arts Network
Didcot Train
Destitution Project Bolton
Disability First
Educare
Family Links
Father Hudson's Care
Fleetwood Trust
Groundworks
Hackney Migrant Centre
Jesuit Refugee Service
Justice
Kenelm Youth Trust
Marine Conservation Society
Operation Noah
Plastic Oceans
Refugee Resource
Salford Loaves and Fishes
Sanctuary Hosting
Shine Youth
South Harrow Christian
Fellowship
St Joseph's Hospice
Trees For Cities
Medaille Trust
Compassion Acts
Emmaus Oxford
Cardinal Hume Centre
THOMAS
Volunteer Centre Blackpool
Voices in Exile
Ruhama Womens Project
Music4Wellbeing
Totals carried forward		 24,333
25,000
20,000
20,000
24,322
11,653
7,000
10,000
10,000
20,000
22,170
13,000
10,000
25,000
8,500
25,000
12,500
24,750
15,000
25,000
15,000
20,000
10,000
7,000
20,000
10,000
15,000
12,000
20,000
20,000
20,000
10,000
15,000
15,000
10,000
—
—
25,000
—
—
—
—
—
—		 —
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—		 24,333
25,000
20,000
20,000
24,322
11,653
7,000
10,000
10,000
20,000
22,170
13,000
10,000
25,000
8,500
25,000
12,500
24,750
15,000
25,000
15,000
20,000
10,000
7,000
20,000
10,000
15,000
12,000
20,000
20,000
20,000
10,000
15,000
15,000
10,000
—
—
25,000
—
—
—
—
—
—		 —
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
24,000
7,000
28,000
48,044
48,000
50,000
48,776
10,000
11,370		 —
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—		 —
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
24,000
7,000
28,000
48,044
48,000
50,000
48,776
10,000
11,370
597,228 — 597,228 275,190 — 275,190

Society of the Holy Child Jesus CIO 59

Notes to the accounts 31 December 2020

6 Expenditure on: Donations and grants in support of charitable activities (continued)

Period from 1 September 2019 to 31
December 2020		 Period from 1 September 2019 to 31
December 2020		 Period from 1 September 2019 to 31
December 2020		 Period from 14 March 2018 to
31 August 2019		 Period from 14 March 2018 to
31 August 2019		 Period from 14 March 2018 to
31 August 2019
Unrestricted
Funds
£


Restricted
Funds
£


Total
£

597,228

18,000

25,000

—

10,000

—

24,941

—

—		 Unrestricted
Funds
£		 Restricted
Funds
£


Total
£
Grants(continued)
Totals brought forward
ANAWIM
Women at the Well
Baby Basics
Cirencester Housing for Young
People
ECPAT UK
Asylum Welcome
A Rocha UK
SVP – St Vincent Support
Centre Leeds
Total donations andgrants		 597,228
18,000
25,000
—
10,000
—
24,941
—
—
—

—

—

—

—

—

—

—

—
275,190

48,000

41,556
26,000

20,000

49,289

7,150

17,000

40,000
—

—

—

—

—

—

—

—

—
275,190

48,000

41,556

26,000

20,000

49,289

7,150

17,000

40,000
675,169
—
675,169
524,185
—
524,185
3,466,791
90,408
3,557,199
4,049,986
36,158		 4,086,144

7 Governance costs

Governance costs
Period from 1 September 2019 to 31
December 2020		 Period from 14 March 2018 to
31 August 2019
Unrestricted
Funds
£
88,170		 Restricted
Funds
£		 Total
£		 Unrestricted
Funds
£		 Restricted
Funds
£		 Total
£
Legal andprofessional fees
—		 88,170 68,944 — 68,944

8 Net (expenditure) income for the period before gains on investments

This is stated after charging (crediting):

Total
period from
1 September
2019 to
31
December
2020
£		 Total
period from
14 March
2018
to 31 August
2019
£
Staff costs (note 9)
Auditor’s remuneration (including VAT)
. Audit services – current year
. Audit services – prior year
. Non audit services: payroll and other consultancy
Depreciation
Operatinglease charges		 2,122,218
31,000
1,838
15,062
306,688
43,182		 1,361,887
31,000
20
17,291
313,758
16,115

Society of the Holy Child Jesus CIO 60

Notes to the accounts 31 December 2020

Total
period from
1 September
2019 to
31
December
2020
£		 Total
period from
14 March
2018
to 31 August
2019
£
Staff costs during the period were as follows:
Wages and salaries
Social security costs
Pension costs		 1,950,313
138,251
33,655		 1,257,621
87,660
16,606
2,122,218 1,361,887

No employee earned above £60,000 per annum (including benefits) during the period.

The average number of employees during the period (including part time staff):

Total
period from
1 September
2019 to
31
December
2020
£		 Total
Period
from
14 March
2018
to 31
August
2019
£
81
Support of Members of the Society and their ministry, the operation of
residential care home andgrant making		 82

The key management personnel of the charity in charge of directing and controlling, running and operating the charity on a day-to-day basis comprise the trustees, the finance director and the senior management team of the charity’s care home. The total remuneration (including taxable benefits but excluding employer’s pension contributions) of the key management personnel for the sixteen month period to 31 August 2020 was £139,179 (period to 31 August 2019: £60,530).

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

As members of the Society, none of the trustees have 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 period, the total amount donated by the trustees to the charity was £80,886 (period to 31 August 2019: £61,243).

Society of the Holy Child Jesus CIO 61

Notes to the accounts 31 December 2020

10 Taxation

The Society of the Holy Child Jesus 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.

11 Tangible fixed assets

Tangible fixed assets
Land and buildings
Furniture,
equipment
and plant
£		 Motor
vehicles
£		 Total
£
Non-
specialised
£
Specialised
£
Cost or valuation
At 1 September 2019
Additions
Disposals and eliminations
At 31 December 2020
At cost
At deemed cost
Depreciation
At 1 September 2019
Charge for period
On disposals and eliminations
At 31 December 2020
Net book values
At 31 December 2020
At 31 August 2019		 3,857,947
—
—		 6,277,808
14,854
—		 1,846,308
62,144
—		 128,625
—
(13,710)		 12,110,688
76,998
(13,710)
3,857,947 6,292,662 1,908,452 114,915 12,173,976
3,497,947
360,000		 4,109,954
2,153,000		 1,908,452
—		 114,915
—		 9,646,122
2,513,000
3,857,947 6,292,662 1,908,452 114,915 12,159,122
—
—
—		 1,735,453
167,407
—		 1,596,935
121,480
—		 87,990
22,886
(13,710)		 3,420,378
311,773
(13,710)
— 1,902,860 1,718,415 97,166 3,718,441
3,857,947
3,857,947		 4,389,802
4,542,355		 190,037
249,373		 17,749
40,635		 8,440,681
8,690,310

All land and buildings are freehold with the exception of a flat included in non-specialised land and buildings which is held on a 999-year lease and which has a net book value at 31 December 2020 of £114,667.

Under previous Generally Accepted Accounting Practice, freehold land and buildings purchased prior to 1996 were held at a book value based on a trustees’ valuation made in 1996 based on replacement cost for existing use. As permitted under the transitional provisions of FRS 102 (section 35), the charity has elected to use these valuations as deemed cost.

The remaining properties and other tangible fixed assets are held at cost less accumulated depreciation where applicable.

It is likely that there are material differences between the open market values of the charity’s land and buildings and their book values. These arise from the specialised nature of some properties and the effects of inflation. 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.

Certain of the freehold land and buildings are subject to restrictive covenants in relation to their future disposal.

Society of the Holy Child Jesus CIO 62

Notes to the accounts 31 December 2020

11 Tangible fixed assets (continued)

The charity has title to a number of unique religious artefacts including statues and paintings which form part of the heritage of the Society and which the charity intends to preserve for future generations of Sisters. One of the principal objectives of the charity is “ to support the religious and other charitable works carried on by the Society and its members ”. As such, the assets meet the definition of heritage assets in the Charities SORP FRS 102 and are not valued for the purposes of these financial statements. Details of specific items are not given for security reasons.

12 Investments

Investments
31
December
2020
£		 31
August
2019
£
Listed investments
Unlisted investments
. Deferred annuity contracts		 101,096,489
89,395		 97,143,767
73,067
101,185,884 97,216,834
Listed investments 31
December
2020
£		 31
August
2019
£
—
91,469,281
45,418,620
(46,193,249)
3,656,963
94,351,615
2,792,152
97,143,767
74,869,707
Market value at 1 September 2019
Transfer from Society of the Holy Child Jesus Charitable Trust
Additions
Disposals (proceeds: £28,992,818; realised losses: £2,495,751)
Net unrealised investment gains
Market value at 31 December 2020
Cash held by investment managers for reinvestment
Cost of listed investments at 31 December 2020		 94,351,615
—
27,340,172
(31,488,569)
9,194,978
99,398,196
1,698,293
101,096,489
78,928,238

Listed investments (excluding cash held by investment managers for re-investment) held at 31 December 2020 comprised the following:

31
December
2020
£		 31
August
2019
£
Listed investments – UK
Listed investments – Overseas		 54,050,974
45,347,222		 69,520,071
24,831,544
99,398,196 94,351,615

Society of the Holy Child Jesus CIO 63

Notes to the accounts 31 December 2020

12 Investments (continued)

The following holding represented a material holding when compared to the total portfolio valuation at 31 December 2020:

Market
value
£		 Percentage
of
portfolio
%
Sarasin Climate active endowments fund class A income 34,264,097 34.7

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

Deferred annuity contracts 31
December
2020
£		 31
August
2019
£
Valuation at 1 September 2019
Transfer from Society of the Holy Child Jesus Charitable Trust
Additions
Surplus on revaluation
Valuation at 31 December 2020		 73,067
—
1,200
15,128		 —
67,721
1,200
4,146
89,395 73,067

The contracts are held with the Eagle Star Assurance Company Limited.

Since 31 December 2020 there has been no material effect on investments due to the Covid-19 pandemic.

13 Debtors

Investment income and income tax recoverable
Care home fees receivable
Other debtors
Prepayments
Legacies receivable		 31
December
2020
£
19,364
17,191
4,775
86,433
—
127,763		 31
August
2019
£
142,461
34,535
11,362
84,535
186,574
459,467

Society of the Holy Child Jesus CIO 64

Notes to the accounts 31 December 2020

14 Creditors

Creditors
31
December
2020
£		 31
August
2019
£
Amounts falling due within one year
Monies administered by the charity on behalf of individual members of the
Society
Care home fees received in advance
Accruals and expense creditors
Grants and donations payable
Amounts falling due after more than one year
Grants and donations payable		 284,130
8,271
292,635
55,000		 314,121
9,691
236,547
55,000
640,036 615,359
135,000 190,000

15 Restricted funds

The funds of the charity include restricted funds comprising the following amounts to be applied for specific purposes:

At
1
September
2019
£
3,748,060
6,432		 Income
£		 Expenditure
£
(73,226)
(73,546)		 Gains
£		 At
31
December
2020
£
Cornelia Connelly Fund
Donations for specific purposes		 118,861
67,114		 312,385
—		 4,106,080
—
3,754,492 185,975 (146,772) 312,385 4,106,080
At
14 March
2018
£
—
—		 Transfer
from
Charitable
Trust
£
3,556,827
30,590		 Income
£		 Expenditure
£
(9,000)
(27,158)		 Gains
£		 At
31 August
2019
£
Cornelia Connelly
Fund
Donations for
specific purposes		 99,234
3,000		 100,999
—		 3,748,060
6,432
— 3,587,417 102,234 (36,158) 100,999 3,754,492

Society of the Holy Child Jesus CIO 65

Notes to the accounts 31 December 2020

15 Restricted funds (continued)

The Cornelia Connelly Fund was previously a separate charity, administered by the same trustees as the Society of the Holy Child Jesus Charitable Trust. During 1998 permission was sought and given by the Charity Commissioners under Section 96(6) of the Charities Act 2011 for the accounts of the two charities to be combined, on the condition that the Cornelia Connelly Fund remain as a separate fund within the accounts of the main charity, restricted to the charitable purposes set out in the original trust deed of the Cornelia Connelly Fund, being ‘such educational charitable purposes as advance the educational charitable work for the time being carried on in any part of the world by or under the direction or with the support of the European Province’.

16 Designated funds

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

At 1
September
2019
£
230,458
7,813,571
12,431,047
350,000
20,075,815
40,000,000
80,900,891		 New
designations
£		 Utilised/
released
£		 At
31
December
2020
£
African Province fund
Society Strategic Plan fund
. Retirement fund for support of the
African Province
. Support of goals
Property development and refurbishment fund
Grants reserve
Retirement reserve		 —
1,093,968
—
—
13,031,462
—		 (230,458)
—
(2,328,293)
—
(675,179)
(7,583,110)		 —
8,907,539
10,102,754
350,000
32,432,098
32,416,890
14,125,430 (10,817,040) 84,209,281
At 14
March
2018
£
—
—
—
—
—
—
—		 Transfer
from
Charitable
Trust
£




New
designations
£		 Utilised/
released
£		 At
31 August
2019
£
African Province fund
Society Strategic Plan fund
. Retirement fund for support of the
African Province
. Support of goals
Property development and
refurbishment fund
Grants reserve
Retirement reserve		 223,494
8,296,432
8,807,326
350,000
20,000,000
40,000,000
6,964

27,192

5,985,964

—

600,000

—		 —
(510,053)
(2,362,243)
—
(524,185)
—		 230,458
7,813,571
12,431,047
350,000
20,075,815
40,000,000
77,677,252
6,620,120		 (3,396,481) 80,900,891

Society of the Holy Child Jesus CIO 66

Notes to the accounts 31 December 2020

16 Designated funds (continued)

The African Province fund represented monies designated by the trustees to fund the education and formation of sisters in Africa. It was fully utilised during the period..

The Society Strategic Plan fund (formerly known as the Congregational fund) represents monies designated by the trustees to support the international work of the Congregation, including the implementation of the Society-wide strategic plan. The fund has two elements: The ‘Retirement fund for the support of the African Province’ and the ‘Support of Goals’. It is the intention that this fund continues to be increased to be held over the next four to five years until they are required by the wider Congregation. Sisters and projects of the Society overseas will be able to apply for monies from the fund but these will be paid out only after successful due diligence and, thereafter, the use of the monies will be monitored closely by the trustees. The trustees will review the Society Strategic Plan fund and the charity’s financial position on a year by year basis.

The property development and refurbishment fund represents monies designated by the trustees to build and refurbish a number of the charity’s freehold premises.

The grants reserve represents monies designated by the trustees for the charity’s grant making programme.

The retirement reserve represents monies designated by the trustees to provide for the sisters in their retirement. It has been calculated using actuarial principles and is reviewed regularly by the trustees in the light of the resources available and likely to be required.

17 Tangible fixed assets fund

The tangible fixed asset 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 in recognition of the fact that the tangible fixed assets are used in the day-to-day activities of the charity, and the fund value would not be easily realisable if needed to meet future contingencies.

Total
£
At 1 September 2019
Net movement in the period
At 31 December 2020		 8,690,310
(244,544)
8,445,766
Total
£
At 14 March 2018
Transfer from Society of the Holy Child Jesus Charitable Trust
Net movement in the period
At 31 August 2019		 —
8,401,845
288,465
8,690,310

Society of the Holy Child Jesus CIO 67

Notes to the accounts 31 December 2020

18 Analysis of net assets between funds

The total unrealised gains as at 31 December 2020 constitute movements on revaluation and are as follows:

31
December
2020
£		 31
August
2019
£
Unrealised gains included above:
On investments
Total unrealised gains at 31 December 2020
Reconciliation of movements in unrealised gains (losses)
Unrealised gains at 1 September 2019
In respect to disposals in the period
Add: net gains arising on revaluation arising in the period
Transfer from Holy Child Jesus Charitable Trust
Total unrealisedgains at 31 December 2020		 20,469,963 19,481,908
20,469,963 19,481,908
19,481,908
(8,206,928)		 —
(8,818,418)
11,274,980
9,194,978
—		 (8,818,418)
3,656,963
24,643,363
20,469,958 19,481,908

19 Operating lease commitments

At 31 December 2020, the charity had future minimum commitments in respect to noncancellable operating leases in respect to land and buildings as follows:

31
December
2020
£		 31
August
2019
£
Land and buildings
Payments which fall due:
. Within one year
. Within two to five years		 13,500
43,875		 7,200
2,446
57,375 9,646
31
December
2020
£		 31
August
2019
£
Equipment
Payments which fall due:
. Within one year
. Within two to five years
. Over five years		 28,622
55,948
31,752		 11,400
—
—
116,322 11,400

Society of the Holy Child Jesus CIO 68

Notes to the accounts 31 December 2020

20 Ultimate control and liability of member

The Province Leader of the Congregation for the time being shall automatically, by virtue of holding that office, be ex officio the sole member of the CIO. The sole member is responsible for the appointment of the trustees.

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

21 Connected charity and related party transactions

During the year a donation of £20,000 was paid to Salford Loaves and Fishes, a charity of which Sister Anne Stewart, a trustee of the CIO, is a trustee.

Amounts donated to the charity during the year by the trustees are disclosed in note 9.

There are no further related party transactions requiring disclosure.

22 Transfer from Society of the Holy Child Jesus Charitable Trust

The trustees of the CIO are also the trustees of the.

With effect from 1 September 2018, the activities, assets and liabilities of the Society of the Holy Child Jesus Charitable Trust (Charity Registration Number 223035) were transferred to the CIO in accordance with a legal deed of transfer.

The net assets transferred were:

31 August
2018
£
Tangible fixed assets
Listed investments
Unlisted investments
Cash held by investment managers
Debtors: amounts falling due within one year
Cash at bank and in hand
Creditors: amounts due within one year
Creditors: amounts due after more than one year
Total net assets
Representing:
Restricted funds
Unrestricted funds
. Designated funds
. Tangible fixed assets fund
. General funds		 8,401,845
91,469,281
67,721
5,141,939
200,261
839,857
(603,287)
(20,000)
105,497,617
3,587,417
77,677,252
8,401,845
15,831,103
105,497,617

Society of the Holy Child Jesus CIO 69

Notes to the accounts 31 December 2020

23 Post balance sheet events

Since the year end contracts have been exchanged in respect to the sale of one of the charity’s freehold properties. Completion is expected in early June 2021. The net book value of the property in these accounts is £379,837 and the gross proceeds from the sale are anticipated to be £1.16m.

Society of the Holy Child Jesus CIO 70