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2022-12-31-accounts

Society of the Holy Child Jesus CIO

Annual Report and Accounts

31 December 2022

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 30
Accounts
Statement of financial activities 35
Balance sheet 36
Statement of cash flows 37
Principal accounting policies 38
Notes to the accounts 44

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 Jenny Bullen
Sister Helen Costigane (appointed 8 June 2022)
Sister Eileen Crowley
Sister Judith Lancaster
Sister Monica Matthews (appointed 1 May 2022)
Sister Carmel Murtagh
Sister Celestina Oyidu Okwori
Sister Anne Stewart
The trustees are incorporated under the Charities
Act 2011
Province Leader Sister Angela O’Connor
Provincial Bursar Sister Carmel Murtagh
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 Evelyn Partners
45 Gresham Street
London
EC2V 7BG
Sarasin & Partners LLP
Juxon House
100 St Paul’s Churchyard
London
EC4M 8BU
Cazenove Capital
1 London Wall Place
London
EC2Y 5AU
Bankers Metro Bank plc
4-5 Queen Street
Oxford
OX1 EJ
Royal Bank of Scotland plc
7 Cambridge Crescent
Harrogate
HG1 1PH
Solicitors Stone King LLP
Upper Borough Court (UBC)
Upper Borough Walls
Bath
BA1 1RG
Wilsons Solicitors LLP
4 Lincoln Inn Field’s
London
WC2A 3AA
Property Advisors Gerald Eve
Bow Bells House
1 Bread Street
London
EC4M 9BE

Society of the Holy Child Jesus CIO 2

Trustees’ report Year to 31 December 2022

The trustees present their statutory report and the accounts of the Society of the Holy Child Jesus CIO (the “charity”) for the year to 31 December 2022.

The accounts have been prepared in accordance with the accounting policies set on pages 38 to 43 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

Worship and prayer are integral to the lives of the members of the Society. Each sister is given the opportunity for private prayer and continued spiritual and theological development. Members avail of opportunities to celebrate and pray with the wider community when possible. Several sisters provide spiritual guidance and are available to listen to people who need support. Some give occasional retreats and days of reflection.

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Trustees’ report Year to 31 December 2022

Mission (continued)

Grant Making

The charity accepts applications for grants from other charities and not for profit organisations. An annual grant making budget of £900,000 is approved by the trustees. The trustees’ grant making policy is posted on the charity’s grant making website (www.shcj.co.uk) 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.

Caring for members of the Society

The majority of sisters are over 80 years of age. While a number are still active in ministry an increasing number are in need of extra care. Apley Grange, a CQC registered care home in Harrogate, Yorkshire provides for this care. Apley Grange also cares for a small number of private residents.

Education

The European Network of Holy Child schools is supported by the Trustees. The coordinator of the network arranges an annual residential meeting for head teachers and occasional meetings for other members of staff. She also works with the schools to produce leadership and governance materials to facilitate lay engagement with the Holy Child vision and mission. The trustees also give some financial support to other educational projects.

Human development, social and pastoral work

Several members of the Society are involved in various forms of human development, facilitation, social and pastoral work in different parts of 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.

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.

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Trustees’ report Year to 31 December 2022

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 such that the majority of sisters are over 80 years of age 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 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:

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25
14
11
4
1 1
50-59 60-69 70-79 80-89 90-99 100-109
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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.

Given the age profile there is 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.

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Trustees’ report Year to 31 December 2022

Activities, specific objectives and relevant policies (continued)

Caring for members of the Society (continued)

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 local groups and charities 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 prayer and reflection, 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 Year to 31 December 2022

Activities, specific objectives and relevant policies (continued)

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

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.

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. 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.

In operating the home, the trustees aim to:

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Trustees’ report Year to 31 December 2022

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.

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 six 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 and local groups as well as other charities.

Sadly, demand for use of the centre has not picked up since the Covid pandemic. Given this, increasing costs and the age of the sisters the trustees have decided to close the Cherwell Centre at the end of July 2023.

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. Sisters who are retired continue to support parishioners, be involved in local charities and support of community social work such as local foodbanks.

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 contributes financially to rapidly developing educational ministries in Chad, Ghana and Nigeria in the African Province of the Society.

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 Year to 31 December 2022

Activities, specific objectives and relevant policies (continued)

Enabling and supporting members in a variety of religious and charitable works (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 regular meetings for prayer and reflection.

The objectives of the trustees are to:

Volunteers

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 £225,000.

Investment policy and performance

The charity’s investments during the period were managed by Evelyn Partners, Sarasin and Partners LLP and Cazenove Capital. 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 and comply with the ethical guidelines given to them.

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Trustees’ report Year to 31 December 2022

Activities, specific objectives and relevant policies (continued)

Investment policy and performance (continued)

During the period, the charity’s investments achieved an income yield of 2% (2021 – 2%). At the end of the period the charity’s portfolio of listed investments comprised 44% UK equities (2021 – 47%), 50% overseas stocks (2021 – 47%) and 6% cash (2021 – 6%).

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 year ended 31 December 2022, 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 continued to be impacted by the Covid-19 pandemic though to a lesser extent. However, as mentioned earlier the decision has been made to close the Cherwell Centre in Oxford. Apley Grange, the care home in Harrogate, Yorkshire, has slowly been adapting to post Covid pandemic with normal socialising and visiting reintroduced. At the same time great care is taken to prevent infection of any kind.

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:

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Trustees’ report Year to 31 December 2022

Achievements and performance (continued)

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

During the year 60 grants totalling £914,377 were awarded by the Society. Grants were given to charities who work in our grant priority areas as follows: £55,000 towards anti-trafficking, £290,000 towards refugees, £379,377 towards social justice, £60,000 towards environmental education and justice, and £130,000 towards education. (A table listing all of the grants can be found in note 6).

With the cost-of-living crisis there has been an increase in the number of grant applications. More applicants are seeking funds to help people who are struggling to meet basic needs, to help alleviate food poverty, energy poverty and debt.

Below we highlight a few of the charities supported this year and indicate the impact of the grant.

The 2 Minute Foundation’s aim is to see a world without plastic and litter pollution and to change the way we relate to our outdoor spaces. They do this by inspiring, educating and enabling people to clean up the planet, 2 minutes at a time. They recognise the links between the planet’s wellbeing and

our own wellbeing. They highlight the benefits that spending time in ‘Blue’ space and taking actions that benefit the planet can have on our own physical and mental health.

The Beach School provides environmental education directly on the beach in Bude, North Cornwall. Children and young people come from across Devon and Cornwall, including areas that are some of the UK’s most socially and economically disadvantaged. Many of the children may not be in mainstream education due to mental health and behavioural challenges.

Beach School provides environmental education in an inspiring environment that helps to clean up local areas and develop a love of the oceans and our wider environment, and a longstanding passion to care for them. 2 Minute Beach School includes some learning through play but is primarily learning based, delivered by qualified teachers, covering topics that include geology, history, science etc.

They utilise the benefits of non-classroom-based teaching, smaller group sizes and an inspirational natural setting to support children and young people’s emotional and social development, and mental and physical health. They show them how nature and a connection with the natural world can support their life-long physical and mental health. Their success has not only developed some passionate environmentalists but also enabled some of the children to re-access mainstream education.

Grant: £15,000 towards Beach School

The grant was awarded to allow the charity to provide environmental education.

Impact

The grant will allow the charity to host over 1,000 children and young people at Beach School in 2022/23 and to provide resources to schools that offer the 2 minute challenge in their own school or at home.

Society of the Holy Child Jesus CIO 11

Trustees’ report Year to 31 December 2022

Achievements and performance (continued)

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

Case Study

Lily, aged 9, began attending 2 Minute Beach School in April 2021. She home educates because she feels anxious in large groups and was lacking in selfconfidence and self-esteem. When Lily first began attending sessions, she was withdrawn, very quiet and was reluctant to leave Mum. She was visibly nervous, took time to settle in each session and did not participate verbally even 1:1. Over weeks and months, we have worked hard to build up Lily’s confidence, through encouragement, paying close

attention to what engages and grabs her interest and building a relationship with her through 1:1 attention and kindness. She has opened up to us, developed friendships and has shown an enthusiasm for the ocean and passion for the environment. She is chatty and relaxed, coming confidently to sessions, sharing parts of her week and engages very well with activities and content, participating verbally even in a whole group situation. She is knowledgeable and has an excellent grasp of the topics covered and even supports others to engage and gain a better understanding. The difference in Lily is tremendous and has been made possible by the inspiring outdoor setting, high adult:child ratios and a caring, child-led approach.

The Baobab Centre (London) was formed in 2008 by a group of experienced human rights workers who identified many unmet needs in the treatment and support offered to young asylum seekers and refugees who have been forced to flee their home countries

because of conflict, war and human rights abuses. Baobab is a non-residential therapeutic community that supports young, unaccompanied asylum seekers who have experienced extreme human rights abuses, such as torture, rape or trafficking during their developmental years. The Baobab Centre offers a holistic and integrated specialised service to 70-80 young people a year, providing psychotherapy, casework support, assistance with housing, healthcare and education, as well as advocating for justice for all in their position.

Their objective is for the young people in the community to move forward in their development, shape their own lives and identities, and thrive as adults in the UK. They do this by providing a transitional community, where, alongside group and individual psychotherapy, they can access psychosocial activities and casework support. Baobab helps its community members recover from their traumas, build resilience and reclaim autonomy, as well as process their losses and overwhelming experiences of violence. They also have growing advocacy initiatives and a budding mentor program that will give the young people professional experience in an administrative setting. Key to Baobab’s holistic model is working flexibly and involving and consulting with the young people in the community in order to ensure that they are supported and their needs accommodated.

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Trustees’ report Year to 31 December 2022

Achievements and performance (continued)

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

Grant: £20,000 toward core costs

Impact

The grant we awarded will help the Baobab Centre to support between 70-80 young refugees and asylum seekers from across London as they begin to thrive in their life in exile.

Case Study

F is from a large and loving family in Ethiopia. F loves making jokes, watching sci-fi films and wants to study to be a Dentist. He experienced terrible loss, extreme violence and was forced to flee his home. When F was 13 his brother was imprisoned and killed for his political beliefs and, at his brother’s funeral, his father was arrested and disappeared. Aged 14, F was also taken to prison where he was tortured, humiliated and witnessed the ‘disappearance’ of others. Eventually

his uncle paid a bribe to get him released but then gave him to traffickers, believing he would be taken to safety. F did not even have a chance to say goodbye to his mother. On his journey F experienced and witnessed unspeakable violence and trauma. He was kept locked in houses, beaten if he asked for water or to leave. He saw women raped by a trafficker and travelled through the Sahara past the bodies of those who had not survived. He is still haunted by these experiences and has serious, complex, PTSD. In the UK, he was looked after by social services, allocated foster parents and applied for asylum. However, his asylum was refused and as a result the social services and foster support was ended. He became homeless. Eventually, he was referred to Baobab. Now 21, a fresh asylum claim is being submitted with support from Baobab. Throughout this time F has continued to attend college, following his ambition to study Dentistry and Baobab recently helped him find a placement in a Biomedical Lab. He is a young person with striking resilience and at the same time significant vulnerability. Baobab will continue to support him on his journey, rebuilding his ability to trust, building his resilience and supporting him to create a new life for himself.

Crosslight Advice is an independent, communityfocused charity working to alleviate poverty and hardship through the provision of comprehensive debt advice and accessible financial education. What sets them apart is the person-centred, 'holistic' approach to their work. They look beyond the immediate crisis advice with the aim of meeting individuals at their point of need and walking with them to full restoration, however long that takes. A strong Christian ethos underpins their values and they work closely with local churches to support any adult client who is struggling with practical needs regardless of their background, ethnicity, sexuality, religion, age or any other factor. They provide:

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Trustees’ report Year to 31 December 2022

Achievements and performance (continued)

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

Case Study (continued)

Grant: £24,000 towards core costs

Impact

The grant given by the Society supports ongoing work to alleviate debt poverty within communities. Crosslight operates out of 18 church locations in London and the South of England through both a face to face and telephone appointment model. In 2021 they supported 1,738 people with debt advice and budgeting support and resolved 82% of clients’ main debt issues.

Case Study

After escaping an abusive relationship and losing her business, Sandrine* faced multiple debts piling up over several years - rent arrears, as well as gas and electric bills. Sandrine and her young daughter soon became homeless. She felt she had to hide herself from everyone, as the fear of her debts built up. “I always felt like I was trying to escape,” she recalls. Sandrine worked with another agency to support her in resolving her debts but unfortunately, she didn’t get

the holistic support she needed. She didn’t have computer or internet access, and felt humiliated when she couldn’t complete the tasks they requested of her. “I felt I was being punished for not knowing how the system works.”

Sandrine was soon referred to Crosslight and has been working with an advisor for nearly 10 months. Her advisor managed to obtain a Debt Relief Order (DRO) to help clear her debts, as well as sort out manageable monthly payment plans to get her back on track. Additionally, her advisor discovered £3,000 of rent arrears was a mistake she was not liable for. We are working to appeal this decision and to obtain backdated benefits she is entitled to. Sandrine is now in temporary accommodation in London. She feels less isolated, as well as calmer and more hopeful for the future. “Everyone at Crosslight is so lovely and helpful. They constantly reassure me and allow me to relax. Every time I see my case manager, I get hope for my life. ” *name has been changed.

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Trustees’ report Year to 31 December 2022

Achievements and performance (continued)

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

Case Study (continued)

Hope at Home provides safe homes and holistic support for survivors of human trafficking and modern slavery. Founded upon Christian principles, they provide safe and secure accommodation for survivors of modern slavery. They have established a growing network of volunteer hosts across the UK who

welcome survivors into their homes and provide much-needed stability at a critical time. When survivors find Hope at Home, they are at the early stages of dealing with past traumas and are incredibly vulnerable to homelessness and re-exploitation. Hope at Home is open to all survivors regardless of a person's country of origin or ethnicity, sexuality, religion, or disability. They believe that a safe and secure home environment is essential for all survivors as they begin to rebuild their lives.

Hosts are led by the guests' needs and are on hand to talk through the challenges they face, provide guidance and help people adjust to a life free of exploitation. Working in unison with partners, Hope at Home assist with legal advice, therapeutic support, health services, housing options, employment, training, and education- increasing the likelihood of positive outcomes and independent living.

Grant: £20,000 toward core costs

Impact

The Society’s grant is helping Hope at Home to scale up their solution to the housing crisis facing survivors of human trafficking and modern slavery in the UK. This year they intend to deliver 36 host volunteer recruitment events and recruit a minimum of 30 new hosts. Alongside individual training sessions they will hold 36 group training sessions. They aim to provide 4,500 nights of safety for 35 survisors and enable 20 people to move from Hope at Home accommodation into a permanent home.

Case Study

Layla, a survivor of modern slavery, and her threeyear-old daughter were going to become homeless, so they were referred to Hope at Home by Unseen. Firstly, they stayed with a short-term host by the sea for a 'summer holiday'. They had never had a holiday before and their caseworker said "Layla was like a new woman when she got in my car. She had such a fantastic time. I felt quite emotional as Layla was telling me all about it! She said she felt so loved and

looked after and formed a great relationship with her host. She felt that she was a real motherly figure to her and loved that experience. Unfortunately, Layla's mother died when she was very young, so she missed out on that relationship, and I think the time spent with her host filled a little part of that gap. It sounds like it was a very healing experience”

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Trustees’ report Year to 31 December 2022

Achievements and performance (continued)

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

Case Study (continued)

Layla then moved on to longer-term hosts in the city where she wanted to live and continued to be supported by her caseworker. Her hosts helped her find a nursery for her daughter, and she settled in so well that she didn't want to come home at the end of the day. The hosts played with the little girl at weekends and introduced her to baking cupcakes with sprinkles and icing. Layla started English lessons at the local college while her daughter was at nursery. When accommodation became available, Layla and her daughter moved into a house not far from their hosts. Her caseworker commented: " Thank you again for all you have done for them. It has been so wonderful for Layla and her little girl to have such amazing placements. Not just nice homes to stay in but the relationships they have formed. We reflected on how great it is for her to have "friends" in the UK now and have all these great memories that she is collecting. Truly life-changing”.

Providence Row helps empower the most marginalised homeless people in London. They help their clients overcome severe disadvantage, helping them get off, and stay off, the streets and begin their journey towards recovery and a stable, secure life. They help those who are socially and financially excluded from society to re-develop trust in others, confidence in themselves and support them to get their lives back on track. We do this through an integrated service of crisis support, advice, recovery, learning and training programmes.

Over the past year they supported 1,048 unique clients through:

Grant: £15,000 towards the Food Distribution Service

Impact

The Society has given a grant to help pay for the staff who run the charity’s vital Catering and Food Distribution Service that supports over 800 clients every year. This project directly addresses food poverty/ insecurity for people experiencing homelessness and through the provision of healthy nutritious food, engages them to address their immediate complex physical and mental health needs, and supports them on a pathway to recovery and longterm resilience to live a life away from homelessness.

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Trustees’ report Year to 31 December 2022

Achievements and performance (continued)

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

Case Study

Client A presented at our day centre and sought help seeking asylum. The client had no money and was unable to feed himself which was impacting on both his physical and mental health. While our advice and support team were gathering information to support him, he was able to access our Catering and Food Provision service for breakfast and lunch, 5 days a week, and was supported with food vouchers as he was unable to work or claim benefits.

Due to his regular attendance we were also able to link him with street outreach mental health services to conduct an assessment and identify appropriate support for him. The client also benefited from attending a health hub by accessing vaccinations, the dental van and Haircuts4theHomeless. He regularly made use of our resource centre facilities (phone and internet) to keep in contact with his family whilst he attended our day centre for food and support. He went through the immigration process with the Home Office but was declined asylum. He continues to receive food at our day centre as we continue to aid him in making informed decisions about his housing and health and well-being.

Since 2013, Walk has supported ex-offenders like Dan from all over the UK. We bridge the gap between prison and the real world, by providing for all their needs including housing, detox, training, bible studies and a pathway to employment, whilst sheltering them in a safe environment until they are ready reintegrate back into their families and communities.

Some of the elements that make the project successful are:

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Trustees’ report Year to 31 December 2022

Achievements and performance (continued)

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

Grant: £25,000 toward a Support Worker’s Salary

Impact

The grant from the Society helped towards the core budget and is enabling other funds to be freed up and used to enhance the Walk programmes.

Case Study

Darren (Past beneficiary and currently employed as a support worker)

“I have been out of prison for more than five years, before that I could never last more than six months before getting sent back. I have had thirty years of addiction and twenty-five years of prison, so I am now in a really good place. Life was always quick before. Quickly getting into trouble, quickly getting into addiction, quickly ending up in prison. At Walk I have learned to slow it all down. To sit and wait, to trust in God and rest, to not rush through anything. Fishing is my pace now. You cannot rush when you fish, you have to take your time. I have enough kit to organise fishing trips for the guys from Walk. We go fishing to relax, slow down and enjoy life. When I’m out fishing I am so thankful to God. Helping men who have gone through similar struggles to me is everything I survived my years of addiction for and everything I hope to do in my future.”

Support of Society Ministry in the Africa Province

The charity continued to offer support to sisters in the African province. The trustees were pleased to support the installation of internet facilities in communities in Nigeria and Ghana, solar panels on a convent in Bauchi, Nigeria, and the building of a nursery primary school in Bauchi, Nigeria.

Installation of internet facilities has been completed and sisters are now benefiting from improved communication. There are some challenges with low bandwidth, but these are being addressed. The facilities have allowed sisters to engage in follow up work to our General Chapter 2022 with online conversations across the Society. The novices in Jos, Nigeria have benefited from online classes with sisters on other continents. It is also making administrative work easier. Sister Josephine Anto commented “ It has helped us to communicate more within the Province, the Society and globally. It has made communication easier despite some challenges. It has brought a lot of exposure to different ways of doing things and acquiring new skills and personal development .”

Society of the Holy Child Jesus CIO 18

Trustees’ report Year to 31 December 2022

Achievements and performance (continued)

Support of Society Ministry in the Africa Province (continued)

Buachi, Nigeria is an area where the electricity supply is unstable. The installation of solar panels is making a big difference to the lives of sisters living in the community. “ In the last three months, for instance, we did not have electricity supply in our area. If not for the solar life would have been more difficult for us. Once more we are very grateful for the support that enabled us to install the solar system.” Sr Caroline Mbereke

A Nursery Primary School is being built in Gwalameji, Bauchi, Nigeria, a poor area with a mixed community of Muslims and Christians and few Christian schools. Some Catholics and non-Catholics have asked the sisters to run a school that would offer a solid education for their children. The aim in establishing the school is to make quality education accessible to 500 girls and boys from 2½ to 13 years of age, of diverse ethnic and religious backgrounds.

Society of the Holy Child Jesus CIO 19

Trustees’ report Year to 31 December 2022

Achievements and performance (continued)

Support of Society Ministry in the Africa Province (continued)

The school will be opened with an initial intake of 80 students with an additional intake of 100 students each year until the school enrolment reaches 500. The trustees also agreed to fund a 30 seater mini bus to assist with the transportation of students who do not live close to the school.

Financial review

Results for the period

A summary of the results for the year to 31 December 2022 can be found on page 35 of this report and accounts.

Total income amounted to £3.56million (2021: £4.02m). £0.95 million (2021: £0.84m) was received by way of donations and legacies. This figure includes salaries and pensions of the sisters amounting to £0.84 million donated to the charity using a Gift Aid compliant deed of covenant (2021: £0.83m). Investment income and interest receivable totalled £2.04 million (2021: £1.9m).

Expenditure for the year ended 31 December 2022 totalled £6.67 million (2021: £7.74 million). The total expenditure on the provision of residential care services to fee paying residents was £0.6 million (2021: £0.5 million) with staff costs representing a very significant proportion of this. Staff costs in total amounted to £1.7 million (2021: £1.6 million). Total expenditure incurred on maintaining the members of the Society and supporting them in their pastoral work and ministry amounted to £2.6 million (2021: £2.5 million). Grants and donations amounted to £3.2 million (2021: £4.5 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 £0.2 million (2021: £0.3 million).

Net expenditure before net investment gains was £3,110,351 (2021: £3,717,745). Net investment losses of £14,234,916 (2021: gains of: £7,836,949) resulted in a net decrease in funds for the year of £17,345,267 (2021: net increase of £4,119,204).

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 aftermath of the Covid-19 pandemic.

Society of the Holy Child Jesus CIO 20

Trustees’ report Year to 31 December 2022

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 2022, the charity had net assets totalling £96,878,216 (2021: £114,223,483).

Of this, £2.3 million was restricted and was to be applied for specific purposes.

A further £79.8 million had been set aside or designated by the trustees for specific reasons:

£8.6 million (2021: £8.0 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 2022, the CIO had free reserves of £6.2 million (2021: £13.6 million). The level of free reserves falls short of the amount required by the reserves policy of the CIO set out above. During the year, the charity’s listed investments were affected by the volatility in world stock markets caused by the war in Ukraine and other geopolitical and macroeconomic issues. However, the charity is a long-term investor and the trustees remain confident that markets will stabilise in due course and that the charity’s reserves will recover and the reserves policy will be met. In the meantime, the trustees are satisfied that the charity’s reserves are adequate and do not give cause for concern.

Society of the Holy Child Jesus CIO 21

Trustees’ report Year to 31 December 2022

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 trustees anticipate change in operations over the next two years particularly at the care home in Apley Grange, Harrogate and the Cherwell Centre, Oxford.

Society of the Holy Child Jesus CIO 22

Trustees’ report Year to 31 December 2022

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 members of the CIO have 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 five 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.

Society of the Holy Child Jesus CIO 23

Trustees’ report Year to 31 December 2022

Governance, structure and management (continued)

Governance (continued)

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.

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 Jenny Bullen

Sister Jenny currently works as a primary school teacher and as a counsellor in a secondary school. She will take up office as a member of the Province leadership team on 1 May 2023.

Sister Helen Costigane

Sister Helen is a canon lawyer. She has lectured in Christian Ethics and Canon Law and served as Province Bursar for a number of years. She is a member of the Society’s international finance and planning committee.

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 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 Monica Matthews

Sister Monica is Vicar for Religious for the Diocese of Northampton, a member of the executive of the Conference of Religious in England and Wales and a school governor. She previously served as Province Leader for six years.

Society of the Holy Child Jesus CIO 24

Trustees’ report Year to 31 December 2022

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. She is currently the Province and Society treasurer.

Sister Celestina Oyidu Okwori

Sister Oyidu is a member of the Society Leadership Team. She is also a member of the Society’s International Investment Committee and the International Finance and Planning Committee. She is the member of the Society Leadership Team with particular responsibility for finance.

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:

Society of the Holy Child Jesus CIO 25

Trustees’ report Year to 31 December 2022

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 59 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.

Society of the Holy Child Jesus CIO 26

Trustees’ report Year to 31 December 2022

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 Covid-19 pandemic presented us with challenges and threats to the well-being of our charity and its activities. These continue to be reflected in our risk assessment. 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. An IT disaster recovery plan is being developed and will be incorporated into the Risk Register.

Society of the Holy Child Jesus CIO 27

Trustees’ report Year to 31 December 2022

Governance, structure and management (continued)

Risk management (continued)

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, and 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.

  2. 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.

Society of the Holy Child Jesus CIO 28

Trustees, report Year to 31 December 2022 Governance, structure and management (eonb'nued} Risk management (continued) 2. Safeguarding allegations. The charity is fulty compliantwith the safeguarding policies of the Roman Catholic Church in England and Wales and rrEmbers receNe appropriate training and updating. All active MeM￿[S of the Society have been DBS checked. as have all staff involved in the care of vulnerable adults and any volunteers who wotk with vulnerable members of the Society. The care home at Apley Grange has its own safeguarding policy and training sessions are regularly gwen to staff. Safeguarding in the Catholic Chur¢h is being reslruclured. In the past the Society was aligned with the Roman Catholic DI0￿Se of Lancaster Safeguarding Commission. It is now a member of the Catholic Safeguarding Slandards Agency ICSSA) to whom il is axountable and with whom it contracts seNices. The Society is also a member of the Religious Life SafegLFarding servi￿ IRLSSI which will provide services siniilar to those previously provided by the Di0ts5e of Lancaster Safeguarding Commission. Should there be an allegation of historic abuse. the Society is very well supwted. 3. Misuse ol reSoUr￿s. Budgets are drawn up annualty and monrf(ored. Any large rtems of expenditure are ful discussed with the trustees at their meetings. Signtficanlly large donations for the development of ministries in the growing African Province of the Society are fully documented and the Provin￿ Leader is invofved in negotiations and nv)niloring through attendan￿ at intemab'onal meetings of the whole Society. 4. Lack of compliance with regulations. Thi5 applies particularfy to the care home. Apley Grange in Harrogate. To mitigate risk, the Govemance Board, comprising of provinee leadership team members. the independent director and the management team. meets quartedy.11 alerts the trustees lo any Signifi￿nt issues. The home manager has in place all the required policies. risk assessments and pro￿lUreS. The home is regularty inspected ty the Care Quality Commission. Employees, volunteers, and members of the Society The trustees wish lo 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 tnjstees and signed on their behalf by: D'Z_ Angela O'connor Tnjslee Approved by the trustees on". /3 2023 s￿Iety of the Holy Child Jesus CIO 29

Independent auditor’s report 31 December 2022

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 year ended 31 December 2022, 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 30

Independent auditor’s report 31 December 2022

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 31

Independent auditor’s report 31 December 2022

Auditor’s responsibilities for the audit of the accounts

Our objectives are to obtain reasonable assurance about whether the accounts as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these accounts.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

How the audit was considered capable of detecting irregularities including fraud

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

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

Society of the Holy Child Jesus CIO 32

Independent auditor’s report 31 December 2022

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.

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 33

Independent auditor’s report 31 December 2022

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: 17 July 2023

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 34

Statement of financial activities Year ended 31 December 2022

2022 2021
Unrestricted
funds
£		 Restricted
funds
£		 Total
funds
2022
£		 Unrestricted
funds
£		 Restricted
funds
£		 Total
funds
2021
£
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
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
before (losses) gains on
investments
8
Net investment (losses)
gains
Net (expenditure) income
and net movement in funds
Reconciliation of funds:
Fund balances at 1 January
Fund balances at
31 December
948,419

1,955,498
486,925
34,957
—

2,125		 —
80,422
—
—
52,359
—		 948,419
2,035,920
486,925
34,957
52,359
2,125		 848,684
1,780,441
482,668
2,473
—
749,030		 —
89,109
—
—
69,159
—		 848,684
1,869,550
482,668
2,473
69,159
749,030
3,427,924 132,781 3,560,705 3,863,296 158,268 4,021,564
172,554

2,608,112

603,944

1,442.325		 —
37,034
15,325
1,791,762		 172,554
2,645,146
619,269
3,234,087		 252,729
2,478,720
470,908
4,404,793		 —
48,917
20,242
63,000		 252,729
2,527,637
491,150
4,467,793
4,826,935 1,844,121 6,671,056 7,607,150 132,159 7,739,309

(1,399,011)
(13,834,074)
(1,711,340)

(400,842)		 (3,110,351)
(14,234,916)		 (3,743,854)
7,585,879		 26,109
251,070		 (3,717,745)
7,836,949
(15,233,085)
109,840,224
(2,112,182)
4,383,259		 (17,345,267)
114,223,483		 3,842,025
105,998,199		 277,179
4,106,080		 4,119,204
110,104,279
94,607,139 2,271,077 96,878,216 109,840,224 4,383,259 114,223,483

Society of the Holy Child Jesus CIO 35

Balance sheet 31 December 2022 2022 2021 Notes Flxod assets: Tangible assets Investments 11 8,63B.318 7.970,977 12 86.726,159 105,567,664 95,364.477 113.538,641 CU￿ent assgts: Debtors Cash al bank and In hand Total current assels 13 358,049 1,802.834 2.160.883 128,19) 1.215,905 1.344.095 Llabilities: Creditors.. amounts faHirvJ due within one year 14 (602.144) (569,253) Net eurTrnt assets 1.558,739 774.842 Totsl net assets less current Ilabilities 96,923.216 114,313.483 Creditors: amounts faling due after mcKe than one year Totsl net assets 14 145,000} {90.000) 96.878.216 114,223,483 The funds ofthe charity: Restricted funds Unrestiicted ftmds Designated fvnds - Tangible r￿ed assets fvnd . General funds 15 2,271,077 4.383.259 16 17 79.775.625 88.309.276 8.638,318 7,970,977 6.193,196 13,559,971 96,878,216 114,223.483 Approved by the tnjstees and signed on their behalf by: Trustee Approvedon.. /3k a 2Dz3. Society of the Holy Child Jesus CIO 36

Statement of cash flows Year ended 31 December 2022

Notes 2022
£
2021
£
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
B		 (5,174,146) (6,215,392)
2,035,920
2,125
(881,574)
17,573,873
**(14,451,265) **
1,865,286

1,131,920

(131,211)
47,067,759
(38,818,058)
4,279,079 11,115,696
(895,067)
56,131
1,215,905
6,524,102
4,900,304

31,277

1,110,133

1,698,293

6,901,071
7,740,007

Notes to the statement of cash flows for the period to 31 December 2022.

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

2022
£		 2021
£
Net movement in funds (as per the statement of financial activities)
Adjustments for:
Depreciation charge
Losses (gains) on investments
Investment income and interest receivable
Net gains on disposal of tangible fixed assets
(Increase) decrease in debtors
Decrease in creditors
Net cash used in operating activities		 (17,345,267)
214,233
14,234,916
(2,035,920)
(2,125)
(227,874)
(12,109)		 4,119,204
232,879
(7,836,949)
(1,869,550)
(749,030)
3,837
(115,783)
(5,174,146) (6,215,392)

B Analysis of cash and cash equivalents

31
December
2022
£
31
December
2021
£
Cash at bank and in hand
Cash held by investment managers
Total cash and cash equivalents		 1,802,834
5,098,237		 1,215,905
6,524,102
6,901,071 7,740,007

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 37

Principal accounting policies Year ended 31 December 2022

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

Basis of preparation

These accounts have been prepared for the year to 31 December 2022 with comparative information provided in respect to the year ended 31 December 2021.

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) effective 1 January 2019, 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 at least one year from the date of approval of these accounts.

Society of the Holy Child Jesus CIO 38

Principal accounting policies Year ended 31 December 2022

Assessment of going concern (continued)

With regard to the next accounting period, the year ending 31 December 2023, the most significant areas that affect the carrying value of the assets held by the charity are the level of investment return and the performance of the investment markets (see the investment policy and the risk management sections of the trustees’ report for more information).

However, 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.

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.

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.

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

Investment income is recognised once the dividend has been declared and notification has been received of the dividend due.

Society of the Holy Child Jesus CIO 39

Principal accounting policies Year ended 31 December 2022

Income recognition (continued)

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.

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:

Society of the Holy Child Jesus CIO 40

Principal accounting policies Year ended 31 December 2022

Expenditure recognition (continued)

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.

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

Non-specialised buildings are all freehold properties and are defined as those designed as, and used wholly or mainly for, private residential accommodation. They were stated at a trustees’ valuation made, with professional assistance, in 1996 based on market value for existing use, with additions since stated at cost. 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. Such buildings are not depreciated. Their value and condition are reviewed annually by the trustees, who are satisfied that their residual value is not materially less than their book value.

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.

Society of the Holy Child Jesus CIO 41

Principal accounting policies Year ended 31 December 2022

Tangible fixed assets (continued)

Fixed asset investments

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

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

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

Realised gains (or losses) on investment assets are calculated as the difference between disposal proceeds and their opening carrying value or their purchase value 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.

Society of the Holy Child Jesus CIO 42

Principal accounting policies Year ended 31 December 2022

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.

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 31 December 2022. 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 43

Notes to the accounts Year ended 31 December 2022

1 Income from: Donations

Unrestricted
Funds
£

837,220
58,832
52,367
948,419		 2022 Unrestricted
Funds
£
830,478
—
18,206
848,684		 2021



Restricted
Funds
£

—

—

—

—		 Total
£
837,220
58,832
52,367
948,419


Restricted
Funds
£

—

—

—

—		 Total
£
830,748
—
18,206
848,684
Salaries, pensions, social
security and similar support
of individual religious
received under Gift Aid
compliant deed of covenant
Legacies receivable
Other donations

2 Income from: Investments and interest receivable

2022 Total
£		 2021
Un-
restricted
Funds
£
Restricted
Funds
£		 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
915,185
1,034,804
37,743

42,679		 952,928
1,077,483
884,211
895,828
44,263

44,844		 928,474
940,672
1,949,989
80,422		 2,030,411 1,780,039
89,107		 1,869,146
4,687
822
—

—		 4,687
822		 68
334
2

—		 70
334
5,509
—		 5,509 402
2		 404
1,955,498
80,422		 2,035,920 1,780,4h41
89,109		 1,869,550

3 Income from: Surplus on disposal of tangible fixed assets

2022 2021
Unrestricted
Funds
**£ **
Restricted
Funds
£		 Total
£		 Unrestricted
Funds
£		 Restricted
Funds
£
Total
£
Surplus on disposal of
motor vehicles
Surplus on disposal of land
and buildings		 2,125
**— **
—

—		 2,125
—		 —
749,030
—

—		 —
749,030
**2,125 **
—		 2,125 749,030
—		 749,030

Society of the Holy Child Jesus CIO 44

Notes to the accounts Year ended 31 December 2022

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

2022 Total
£
1,307,596
757,415
455,892
11,631
69,980
42,631
2,645,146		 2021
Un-
restricted
Funds
£
Restricted
Funds
£		 Unrestricted
Funds
£
1,236,160
629,028
477,378
7,839
108,592
19,723
2,478,720
Restricted
Funds
£		 Total
£
Staff costs
Premises
Sisters’ living and ministry
expenses
Education, training and
spiritual renewal
Governance costs (note 7)
Other		 1,307,596
757,415
418,858
11,631
69,980
42,631
—

—

37,034

—

—

—
—

—

48,917

—

—

—
1,236,160

629,028

526,295

7,839

108,592

19,723
2,608,112
37,034
48,917
2,527,637

5 Expenditure on: Provision of residential care services

2022 Unrestricted
Funds
£
398,880
40,632
31,396
470,908		 2021
Un-
restricted
Funds
£		 Restricted
Funds
£		 Total
£		 Restricted
Funds
£

—

—

20,242

20,242		 Total
£
Staff costs
Premises
Welfare and other		 423,381
135,660
44,903		 —
—
15,325		 423,380
135,660
60,228		 398,880
40,632
51,638
603,944 15,325 619,269 491,150

Society of the Holy Child Jesus CIO 45

Notes to the accounts Year ended 31 December 2022

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

2022 Unrestricted
Funds
£		 2021
Total
£
Un-
restricted
Funds
£		 Restricted
Funds
£		 Total
£		 Restricted
Funds
£
Support of the work of
the Society overseas
Africa
Lagos
Chad
Ghana
Generally through the
Society’s Generalate
General donations –
education
Baytree Centre
Comboni Sisters
Create Arts
Gatehouse
Life Skills – Mowbray
Community Church
Peacechild
Read Easy Oxford
Royal Philharmonic
Orchestra
St Augustines RC Primary
St Augustines School
St Marys Catholic
Academy		 367,868
—
—
—
93,212		 1,640,255
300
—
2,000
—		 2,008,123
300
—
2,000
93,212		 3,242,413
5,000
50
—
64,846
—

—

—

—

—		 3,242,413
5,000
50
—
64,846
461,080 1,642,555 2,103,635 3,312,309
—		 3,312,309
—
—
—
—
—
—
—
—
—
—
—		 —
—
—
2,000
—
—
—
—
2,000
2,197
1,000		 —
—
—
2,000
—
—
—
—
2,000
2,197
1,000		 —
—
—
—
—
—
—
—
—
—
—
15,000

2,000

15,000

1,500

2,000

15,000

1,500

10,000

—

—

1,000		 15,000
2,000
15,000
1,500
2,000
15,000
1,500
10,000
—
—
1,000
— 7,197 7,197 —
63,000		 63,000

Society of the Holy Child Jesus CIO 46

Notes to the accounts Year ended 31 December 2022

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

2022 2021
Unrestricted
Funds
£		 Restricted
Funds
£		 Total
£		 Unrestricted
Funds
£		 Restricted
Funds
£
Total
£
General donations – other
Institutions
British Red Cross
CAFOD
Darton Longman & Todd
Dementia UK
Faith in the Community
Fareshare
Justice & Peace Network
Lancaster Diocesan Trust
Mowbray Community
Church
Oarsome Chance
Pax Christi
Power 2 Ltd
Reach Out Youth
Religious Life Safeguarding
Service
SEN Families Support
Group
South Bristol Youth
Trussell Trust
UK & Europe World
Literacy Foundation
Unicef
Voluntary Sector North
West
Warm Hut UK
General donations under
£1,000
General donations to
individuals		 5,000
4,000
—
3,000
—
10,000
—
—
—
—
—
—
—
—
3,400
—
10,000
—
2,000
—
—
24,577
—

—

—

—

—

—

—

2,500

2,200

24,375

—

22,582

20,000

—

—

15,000

—

25,000

—

—

20,000

—		 5,000
4,000
—
3,000
—
10,000
—
2,500
2,200
24,375
—
22,582
20,000
—
3,400
15,000
10,000
25,000
2,000
—
20,000
24,577		 —
—
5,000
2,800
5,000
5,000
1,000
—
—
—
1,000
—
—
10,000
—
—
—
—
10,000
3,000
—
12,500
—

—

—

—

—

—

—

—

—

—

—

—

—

—

—

—

—

—

—

—

—

—
—

—

5,000

2,800

5,000

5,000

1,000

—

—

—

1,000

—

—

10,000

—

—

—

—

10,000

3,000

—

12,500
61,977
131,657		 193,634 55,300
—
55,300
4,891
10,353		 15,244 12,272
—
12,272

Society of the Holy Child Jesus CIO 47

Notes to the accounts Year ended 31 December 2022

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

2022 2021
Un-
restricted
Funds
£		 Restricted
Funds
£		 Total
£		 Un-
restricted
Funds
£		 Restricted
Funds
£		 Total
£
Grants
2 Minute Foundation
A Rocha UK
Abigail Housing
Advice for renters
Amber Trust
ANAWIM
Apps for Good
Asylum Welcome
ATLEU
Baby Basics
Back on Track Manchester
Bakhita House
Bangladeshi Women’s
Association
Baobab Centre
Beacon
Beyond the Streets
Bolton Lads and Girls Club
Bradford City of Sanctuary
Brentwood Childrens
Catholic Society
Cardinal Hume Centre
Catholic Association for
Racial Justice
Catholic Workers Farm
CHAS Bristol
Children’s Trust
Cirencester Housing for
Young People
Cirencester Opportunity
Group
Climate Movement
Community Pride Salford
CIC
Cranfield Trust
Crosslight Advice
EcoBirmingham
ECPAT UK
Emmaus Oxford
Faithworks Wessex
Faith in Schools
Family Links
Family Works at St Johns
Father Hudson's Care
FoodCycle
Global Arrk
Greater Manchester
Migrant Destitution Fund
Growing Together
Levenshulme
Hackney Migrant Centre
Hear Me Out Music
Totals carried forward		 15,000
10,000
12,000
—
—
10,000
—
12,000
—
—
—
—
—
20,000
10,000
20,000
15,000
7,000
20,000
15,000
—
—
—
—
8,000
—
10,000
20,000
20,000
24,000
15,000
—
15,000
—
15,000
—
—
—
—
—
15,000
10,000
10,000
—		 —
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—		 15,000
10,000
12,000
—
—
10,000
—
12,000
—
—
—
—
—
20,000
10,000
20,000
15,000
7,000
20,000
15,000
—
—
—
—
8,000
—
10,000
20,000
20,000
24,000
15,000
—
15,00
—
15,000
—
—
—
—
—
15,000
10,000
10,000
—		 —
15,000
—
24,600
25,000
—
19,000
—
25,000
20,000
10,000
20,000
15,000
—
—
—
—
—
—
20,000
20,000
25,000
15,000
25,000
—
22,214
—
—
—
—
—
25,000
—
20,000
25,000
10,000
15,000
10,703
7,500
—
—
20,000
10,000		 —
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—		 —
15,000
—
24,600
25,000
—
19,000
—
25,000
20,000
10,000
20,000
15,000
—
—
—
—
—
—
20,000
20,000
25,000
15,000
25,000
—
22,214
—
—
—
—
—
25,000
—
20,000
25,000
10,000
15,000
10,703
7,500
—
—
20,000
10,000
328,000 — 328,000 444,017 — 444,017

Society of the Holy Child Jesus CIO 48

Notes to the accounts Year ended 31 December 2022

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

2022 2021
Un-
restricted
Funds
£		 Restricted
Funds
£		 Total
£		 Un-
restricted
Funds
£		 Restricted
Funds
£
—		 Total
£
Grants
Totals brought forward
Home Start Cymru
Home Start Northampton
Hope at Home
Humans MCR
Independent Community
Advocacy Network
International Care Network
It’s a Penalty
Justice
Justlife Foundation
Kingsgate Church
Lantern Trust
Lateef Project
Leeds Justice & Peace
Commission
Marriage Care
Matthew 25 Mission
Million Minutes
Music4WellBeing
MYTIME Young Carers
Nehemiah Project
Newham Community
Renewal Programme
North Bristol Advice
Centre
Off the Streets Essex
Operation Noah
Oswin Project
Owlerton PCC
Oxford Winter Night
Shelter
Prama Life
Prisoners Education
Providence Row
Racial Justice
Read Easy UK
Refugee Resource
Rekindle
Right to Remain
Safe in Sussex
SAFE Foundation
Salford Loaves and Fishes
Sanctuary in Chichester
Separated Child
Shine Youth
Spitafields Crypt Trust
St George’s Youth Club
St Joseph's Hospice
Step by Step
Strength and Stem
Totals carried forward		 328,000 — 328,000 444,017 444,017
15,000
15,000
20,000
20,000
—
—
—
5,000
15,000
10,000
—
15,000
7,377
10,000
20,000
10,000
—
—
20,000
—
20,000
15,000
10,000
25,000
15,000
15,000
—
—
15,000
20,000
20,000
—
20,000
19,000
—
20,000
15,000
—
15,000
10,000
—
15,000
—
—
15,000		 —
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—		 15,000
15,000
20,000
20,000
—
—
—
5,000
15,000
10,000
—
15,000
7,377
10,000
20,000
10,000
—
—
20,000
—
20,000
15,000
10,000
25,000
15,000
15,000
—
—
15,000
20,000
20,000
—
20,000
19,000
—
20,000
15,000
—
15,000
10,000
—
15,000
—
—
15,000		 —
—
—
—
25,000
10,000
15,000
5,000
—
—
20,000
—
—
10,000
—
—
10,000
25,000
—
24,425
—
—
10,000
—
—
20,000
16,000
25,000
20,000
—
20,000
24,500
20,000
—
24,970
—
25,000
10,000
—
18,000
18,000
—
20,000
20,000
—		 —
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—		 —
—
—
—
25,000
10,000
15,000
5,000
—
—
20,000
—
—
10,000
—
—
10,000
25,000
—
24,425
—
—
10,000
—
—
20,000
16,000
25,000
20,000
—
20,000
24,500
20,000
—
24,970
—
25,000
10,000
—
18,000
18,000
—
20,000
20,000
—
794,377 — 794,377 879,912 — 879,912

Society of the Holy Child Jesus CIO 49

Notes to the accounts Year ended 31 December 2022

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

2022 2021
Un-
restricted
Funds
£		 Restricted
Funds
£		 Total
£		 Un-
restricted
Funds
£		 Restricted
Funds
£		 Total
£
Grants
Totals brought forward
Sullivan’s Heroes
The Boaz Trust
Via Wings
Vineyard Community
Centre
Voices in Exile
Voices of Hope
Walk Ministries
Watford and Three Rivers
Refugee Partnership
Wigan Youth Zone
Women’s Health & Family
Services
Woman’s Trust
YMCA Burton
Total donations andgrants		 794,377 — 794,377 879,912 — 879,912
—
15,000
—
20,000
15,000
20,000
15,000
15,000
—
20,000
—
—		 —
—
—
—
—
—
—
—
—
—
—
—		 —
15,000
—
20,000
15,000
20,000
15,000
15,000
—
20,000
—
—		 25,000
—
10,000
20,000
20,000
—
—
—
20,000
—
25,000
25,000		 —
—
—
—
—
—
—
—
—
—
—
—		 25,000
—
10,000
20,000
20,000
—
—
—
20,000
—
25,000
25,000
914,377 — 914,377 1,024,912 — 1,024,912
1,442,325 1,791,762 3,234,087 4,404,793 63,000 4,467,793

7 Governance costs

Year ended 31 December 2022 Year ended 31 December 2022 Year ended 31 December 2022 Year ended 31 December 2021
Unrestricted
Funds
£
Restricted
Funds
£
Total
£
108,592
—
108,592		 Year ended 31 December 2021
Unrestricted
Funds
£
Restricted
Funds
£
Total
£
108,592
—
108,592		 Year ended 31 December 2021
Unrestricted
Funds
£
Restricted
Funds
£
Total
£
108,592
—
108,592
Un-
restricted
Funds
£		 Restricted
Funds
£		 Total
£		 Restricted
Funds
£		 Total
£
108,592
Legal andprofessional fees 69,980
—		 69,980 108,592 —

8 Net (expenditure) income for the period before (losses) gains on investments This is stated after charging:

2022
£		 2021
£
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		 1,730,977
31,200
1,345
12,499
214,233
52,411		 1,594,598
31,200
—
9,936
232,879
42,122

Society of the Holy Child Jesus CIO 50

Notes to the accounts Year ended 31 December 2022

2022
£		 2021
£
Staff costs during the period were as follows:
Wages and salaries
Social security costs
Pension costs		 1,558,607
142,383
29,986		 1,455,406
113,306
25,886
1,730,977 1,594,598

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

2022
£		 2021
£
Support of Members of the Society and their ministry, the operation of
residential care home andgrant making		 83 83

The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000, was:

2022
No.		 2021
No.
£70,000-£80,000 1 —

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 home manager 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 year to 31 December 2022 was £148,431 (2021: £124,012).

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 (2021 – none).

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 year, the total amount donated by the trustees to the charity was £145,848 (2021: £97,467).

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.

Society of the Holy Child Jesus CIO 51

Notes to the accounts Year ended 31 December 2022

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 January 2022
Additions
Disposals and eliminations
At 31 December 2021
At cost
At deemed cost
Depreciation
At 1 January 2022
Charge for year
On disposals and eliminations
At 31 December 2022
Net book values
At 31 December 2022
At 31 December 2021		 3,478,110
825,000
—		 6,339,213
—
—		 1,974,295
8,605
—		 114,915
47,969
(23,644)
11,906,533

881,574
(23,644)
4,303,110 6,339,213 1,982,900 139,240
12,764,463
4,303,110
—		 4,186,213
2,153,000		 1,982,900
—		 139,240
—
10,611,463
2,153,000
4,303,110 6,339,213 1,982,900 139,240
12,764,463
—
—
—		 2,029,644
126,784
—		 1,796,584
79,851
—		 109,328
7,598
(23,644)
3,935,556

214,233
(23,644)
— 2,156,428 1,876,435 93,282
4,126,145
4,303,110 4,182,785 106,465 45,958
8,638,318
3,478,110 4,309,569 177,711 5,587
7,970,977

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 2022 of £500,000, and The Sacristy at Mayfield Chapel included in specialised land and buildings which is held on a 999-year lease, and which has a net book value of £nil.

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.

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.

Society of the Holy Child Jesus CIO 52

Notes to the accounts Year ended 31 December 2022

12 Investments

2022
£		 2021
£
Listed investments
Unlisted investments
. Deferred annuity contracts		 86,726,159
—		 105,509,548
58,116
86,726,159 105,567,664
Listed investments 2022
£		 2021
£
Fair (market) value at 1 January 2022
Additions
Disposals (proceeds: £17,573,873; realised losses: £2,587,967)
Net unrealised investment (losses) gains
Fair (market) value at 31 December 2022
Cash held by investment managers for reinvestment
Cost of listed investments at 31 December 2022		 98,985,445
14,451,265
(20,161,840)
(11,646,949)		 99,398,196
38,818,058
(44,657,610)
5,426,801
81,627,922
5,098,237		 98,985,445
6,524,102
86,726,159 105,509,597
78,757,350 83,099,956

Listed investments (excluding cash held by investment managers for re-investment) held at 31 December 2022 comprised the following:

2022
£		 2021
£
Listed investments – UK
Listed investments – Overseas		 38,188,661
43,439,261		 49,169,703
49,815,742
81,627,922 98,985,445

The following holding represented a material holding when compared to the total portfolio valuation at 31 December 2022:

Sarasin Climate active endowments fund class A income
 Market
value
£

28,867,429		 Percentage
of
portfolio
%
35.4

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

Deferred annuity contracts
Valuation at 1 January 2022
Additions
Withdrawals
Surplus on withdrawal
Deficit on revaluation
Valuation at 31 December 2022		 2022
£		 2021
£
58,116
—
(63,241)
5,125
—		 89,395
500
(26,170)
1,751
(7,360)
— 58,116

The contracts, which matured during the year, were held with the Eagle Star Assurance Company Limited.

Society of the Holy Child Jesus CIO 53

Notes to the accounts Year ended 31 December 2022

13 Debtors

Debtors
2022
£		 2021
£
Investment income and income tax recoverable
Care home fees receivable
Other debtors
Legal and professional fees in respect to future building project
(see below)
Prepayments		 25,613
16,480
18,445
280,848
16,663		 23,628
43,749
5,065
—
55,748
358,049 128,190

Legal and professional fees included above relate to feasibility, architect’s and similar fees paid in connection with the planned building and refurbishment work to the charity’s care home. The fees will be capitalised on the commencement of the project.

14 Creditors

Creditors
2022
£		 2021
£
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 donationspayable
279,341
24,916
252,887
45,000		 284,045
20,637
219,571
45,000
602,144 569,253
45,000 90,000

(2021 - £2,202,433) which are payable on the satisfaction of certain conditions.

15 Restricted funds

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

Cornelia Connelly Fund
Donations for specific purposes
Cornelia Connelly Fund
Donations for specific purposes		 At
1 January
2022
£
4,383,259
—		 Income
£
80,422
52,359
132,781
Income
£
89,109
69,159
158,268		 Expenditure
£		 Gains
£		 At
31
December
2022
£
(1,791,762)
(52,359)
(400,842)
—		 2,271,077
—
4,383,259 (1,844,121) (400,842) 2,271,077
At
1 January
2021
£
4,106,080

—
4,106,080		 Expenditure
£
(63,000)
(69,159)
(132,159)		 Gains
£		 At
31
December
2021
£

251,070
—		 4,383,259
—
251,070 4,383,259

Society of the Holy Child Jesus CIO 54

Notes to the accounts Year ended 31 December 2022

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

At 1
January
2022
£		 New
designations
£		 Utilised/
released
£		 At
31
December
2022
£
Society Strategic Plan fund
. Retirement fund for support of the
African Province
. Support of goals
Property development and refurbishment fund
Grants reserve
Retirement reserve		 9,875,331
6,860,341
6,000,000
34,665,326
30,908,278		 (972,291)
—
267,500
(3,831,316)
—		 —
(2,196,158)
(410,309)
(914,377)
**(476,700) **		 8,903,040
4,664,183
5,857,191
29,919,633
30,431,578
88,309,276 (4,536,107) (3,997,544) 79,775,625
At 1
January
2021
£
8,907,539
10,102,754
350,000
32,432,098
32,416,890
84,209,281		 New
designations
£

967,792

—

5,650,000

3,258,140

—

9,875,932		 Utilised/
released
£
—
(3,242,413)
—
(1,024,912)
(1,508,612)
(5,775,937)		 At
31
December
2021
£
9,875,331
6,860,341
6,000,000
34,665,326
30,908,278
88,309,276
Society Strategic Plan fund
. Retirement fund for support of the
African Province
. Support of goals
Property development and refurbishment fund
Grants reserve
Retirement reserve

Society of the Holy Child Jesus CIO 55

Notes to the accounts Year ended 31 December 2022

16 Designated funds (continued)

The Society Strategic Plan 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. At 31 December 2022, £2,320,145 (2021 - £2,202,433) of the Support of Goals fund had been committed to specific projects, and becomes payable on satisfaction of certain conditions. The balance of the fund was £2,344,039 (31 December 2021 - £4,657,908).

The property development and refurbishment fund represents monies designated by the trustees to build and refurbish a number of the charity’s freehold premises. At the year end the trustees had committed to develop and refurbish the property known as Apley Grange.

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 January 2022
Net movement in the year
At 31 December 2022		 7,970,977
667,341
8,638,318
Total
£
At 1 January 2021
Net movement in the year
At 31 December 2021		 8,455,535
(484,558)
7,970,977

Society of the Holy Child Jesus CIO 56

Notes to the accounts Year ended 31 December 2022

18 Analysis of net assets between funds

Analysis of net assets between funds
General
funds
£		 Designated
funds
£		 Restricted
funds
£		 Total
2022
£
Fund balances at 31 December 2022
are represented by:
Tangible fixed assets
Investments
Net current assets
Creditors: amounts falling due after one year
Total net assets		 —
4,679,457
1,558,739
(45,000)		 8,638,318
79,775,625
—
—		 —
2,271,077
—
—		 8,638,318
86,726,159
1,558,739
(45,000)
6,193,196 88,413,943 2,271,077 96,878,216
General
funds
£		 Designated
funds
£		 Restricted
funds
£		 Total
2021
£
Fund balances at 31 December 2021
are represented by:
Tangible fixed assets
Investments
Net current assets
Creditors: amounts falling due after one year
Total net assets		 —
12,875,129
774,842
(90,000)		 7,970,977
88,309,276
—
—		 —
4,383,259
—
—		 7,970,977
105,567,664
774,842
(90,000)
13,559,971 96,280,253 4,383,259 114,223,483

The total unrealised gains on listed investments as at 31 December 2022 constitute movements on revaluation and are as follows:

2022
£		 2021
£
Unrealised gains included above:
On investments
Total unrealised gains at 31 December 2022
Reconciliation of movements in unrealised gains (losses)
Unrealised gains at 1 January 2022
In respect to disposals in the period
Add: net (losses)/gains arising on revaluation arising in the period
Total unrealisedgains at 31 December 2022		 2,870,577 15,885,489
2,870,577 15,885,489
15,885,489
**(1,367,963) **		 20,469,958
(10,011,270)
14,517,526
(11,646,949)		 10,458,688
5,426,801
2,870,577 15,885,489

Society of the Holy Child Jesus CIO 57

Notes to the accounts Year ended 31 December 2022

19 Operating lease commitments

At 31 December 2022, the charity had future minimum commitments in respect to noncancellable operating leases in respect to land and buildings as follows:

2022
£		 2021
£
Land and buildings
Payments which fall due:
. Within one year
. Within two to five years		 13,500
16,875		 13,500
30,375
30,375 43,875
2022
£		 2021
£
Equipment
Payments which fall due:
. Within one year
. Within two to five years
. Over five years		 45,780
132,114
104,293		 28,622
51,892
20,866
282,187 101,380

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 £15,000 (2021: £25,000) was paid to Salford Loaves and Fishes, a charity of which Sister Anne Stewart, a trustee of the CIO, was a trustee until 31 December 2021.

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 (2021 – none).

22 Post balance sheet events

Since the year end, on 6 April 2023 the charity has purchased seven leasehold flats in Harrogate, to house Sisters, at a cost of £2,381,500. At 31 December 2022 reservation deposits totalling £14,000 had been paid.

Since the year end the sale of the freehold property at Norham Gardens has progressed and an offer has been accepted.

Society of the Holy Child Jesus CIO 58