Louis Lafosse Educational CIO
Annual Report and Accounts
31 July 2021
Charity Registration Number 1177782
Contents
Reports
| Reports | Reports |
|---|---|
| Reference and administration details of the | |
| charity, its trustees and advisers | 1 |
| Report of the trustees | 2 |
| Independent auditor’s report | 8 |
| Accounts | |
| Statement of financial activities | 13 |
| Balance sheet | 14 |
| Principal accounting policies | 15 |
| Notes to the accounts | 18 |
Louis Lafosse Education CIO
Reference and administration details of the charity, its trustees and advisers
| Trustees | Sister Cara Nagle RCE |
|---|---|
| Sister Rosemary O’Looney RCE | |
| Sister Mary Dawson RCE | |
| Sister Elizabeth McCormack RCE | |
| Cdr Anthony John Woolston (CDipAF) | |
| Principal Address | 2 Woodland Crescent |
| Farnborough | |
| Hampshire | |
| GU14 8BF | |
| Charity Registration Number | 1177782 |
| Accountant | Buzzacott LLP |
| 130 Wood Street | |
| London | |
| EC2V 6DL | |
| Bankers | National Westminster Bank plc |
| PO Box 41 | |
| 1 Queensmead | |
| Farnborough | |
| Hampshire | |
| GU14 7YS | |
| Principal Solicitors | Stone King LLP |
| 13 Queen Square | |
| Bath | |
| BA1 2HJ |
Louis Lafosse Educational CIO 1
Report of the trustees Year ended 31 July 2021
The trustees present their report together with the accounts of the Louis Lafosse Educational CIO (the “charity”) for the year ended 31 July 2021.
The accounts have been prepared in accordance with the accounting policies set out on pages 15 to 17 and comply with applicable United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). The principles set out in Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102).
Introduction
The Institute of Christian Education (the Institute) is a Roman Catholic Religious Institute founded in Échauffour, Normandy in 1817. The Institute is international, operating in England, Ireland, France and America. The Generalate is based in Paris. The Institute is governed by its own constitution.
The accounts accompanying this report are the accounts of Louis Lafosse Educational CIO, a Charitable Incorporated Organisation, registered with the Charity Commission (Charity Registration Number 1177782) through which certain of the educational assets of the Institute in United Kingdom are administered, The charity is governed by a Constitution dated 3 April 2018,
Principal activities, objectives and aims
The charity was set up to continue the educational work of the unincorporated charity, Educating Children In The Roman Catholic Faith Administered in Connection With the Institute Of Christian Education And Other Roman Catholic Purposes, commonly known as the Institute of Christian Education Charitable Trust (Charity Registration Number 244663) (the ”charitable trust”) (the “predecessor charity”). With effect from 1 August 2019 the educational activities and associated assets and liabilities of the unincorporated charitable trust were transferred to the charity.
The objective of the charity is the advancement of education in particular, but not limited to, the education of children in accordance with the principles and doctrines of the Roman Catholic religion by the support of schools and other educational establishments.
Public benefit
The trustees confirm that they have referred to the Charity Commission’s guidance on public benefit in reviewing the charity’s aims, objectives and future plans. Details of how the charity fulfils this responsibility are given above and in the activities and performance section below.
Activities and performance
Education
Members of the Institute are involved as trustees of Farnborough Hill School (founded by the Institute in 1889), a Roman Catholic School which also welcomes students from other faiths . The charity provides bursaries to Farnborough Hill School for pupils who might benefit from the environment the school provides (small class sizes, academic excellence, excellent pastoral care, Catholic ethos) but whose parents are unable to meet the fees.
Louis Lafosse Educational CIO 2
Report of the trustees Year ended 31 July 2021
Activities and performance (continued)
Education (continued)
A recent letter from the Head explains:
“ Farnborough Hill is indebted to the RCE [Religious of Christian Education] for the generous funding it receives each year. This money is used as part of our bursary spending; this allows many girls (up to 50) to benefit from a Farnborough Hill education, who in other circumstances would not be in a financial position to do so.
The girls that benefit add much to the culture and life of the School. We look to support girls from diverse backgrounds, and in line with our Catholic ethos respect the dignity of each believing in the unique gifts and talents of each. In this way we continue the work of the RCE while they are no longer involved in the day-to-day running of Farnborough Hill .”
In October the Governors of the School organised an inspirational Legacy Strategy Day to which all the trustees were invited. In future planning both Governors and staff are very committed to continuing the vision and charism of the Sisters.
Financial review
Results for the year
A summary of the charity’s results for the year can be found on page 13 of this report and accounts.
The charity’s income for the year was £130,000 (2020 - excluding amounts transferred from the Institute of Christian Education Charitable Trust (Charity Registration Number 244663), income amounted to £140,000). Of the income, a total of £60,000 (2020 - £70,000) was received by way of a donation from the Sisters of Christian Educational CIO, a Charitable Incorporated Organisation (CIO) registered with the Charity Commission (Charity Registration Number 1177158).
Investment income for both 2021 and 2020 included rent received of £70,000 from the charity’s programme related investments, further details of which are given in note 8 to the accounts.
Expenditure for both 2021 and 2020 included grants and donations to the Farnborough Hill School of £130,000. Further details of grants and donations are provided in note 3 to the accounts. Support costs represent legal and professional fees.
Net expenditure for the year from operating activities amounted to £3,300 (2020 – net income £7,000). The net movement of funds was a deficit of £3,300 (2020- net movement of funds after accounting for the transfer from the predecessor charity of £27,100, was £34,100).
The transfer from the charitable trust in 2020 comprised the charity’s programme related investment with an original cost of £27,000 (further details of which are given in note 8 to the accounts) and cash of £100.
Louis Lafosse Educational CIO 3
Report of the trustees Year ended 31 July 2021
Financial review (continued)
Reserves policy and financial position
Reserves policy
Following the transfer of the educational activities and association assets and liabilities of the charitable trust to the charity with effect from 1 August 2019, the trustees are giving careful thought to the need for reserves and will be determining an appropriate policy in the following year.
Financial position
The charity’s balance sheets shows funds at the year-end of £30,800 (2020 - £34,100). Funds include a programme related investment fund of £27,000 representing the charity’s principal asset comprising land leased to an educational establishment from which it receives a rental income. The balance of the funds represents free reserves of £3,800, available to meet operating expenditure. The trustees believe this level of free reserves is appropriate.
Governance, structure and management
Governance
The charity is a Charitable Incorporated Organisation governed by a Constitution and registered with the Charity Commission on 3 April 2018.
The members of the charity are the charity’s trustees.
The names of the current trustees are given on page 1 of this document.
Trustees are appointed by trustees in office at the date of appointment. At any time there must be a minimum of three trustees.
The trustees are appointed for a term of three years.
In selecting individuals for appointment the charity trustees have regard to the skills, knowledge and experience needed for the effective administration of the CIO.
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:
- select suitable accounting policies and then apply them consistently;
Louis Lafosse Educational CIO 4
Report of the trustees Year ended 31 July 2021
Governance, structure and management (continued)
Trustees’ responsibilities statement (continued)
-
observe the methods and principles in Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable to the United Kingdom and Republic of Ireland (FRS 102);
-
make judgements and estimates that are reasonable and prudent;
-
state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the accounts; and
-
prepare the accounts on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.
The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the accounts comply with the Charities Act 2011, applicable Charity (Accounts and Reports) Regulations and the provisions of the governing document. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Structure and management reporting
The trustees are ultimately responsible for the policies, activities and assets of the charity. The trustees meet regularly to review developments with regard to 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 investment managers, solicitors and accountants.
Key management personnel
The trustees consider that they comprise the key management personnel of the charity in charge of directing and controlling, running and operating the charity on a day to day basis.
Fundraising policy
The charity aims to achieve best practice in the way in which it communicates with donors and other supporters. The trustees take care with both the tone of communications and the accuracy of data to minimise the pressures on supporters. They apply best practice to protect supporters’ data and never sell data, never swap data and ensure that communication preferences can be changed at any time. They manage their own fundraising activities and do not employ the services of professional fundraisers. They undertake to react to and investigate any complaints regarding fundraising activities and to learn from them and so improve service. During the year, the charity received no complaints about its fundraising activities.
Louis Lafosse Educational CIO 5
Report of the trustees Year ended 31 July 2021
Governance, structure and management (continued)
Risk management
The trustees have undertaken a review of the principal risks and uncertainties that the charity faces, categorising the risks between those affecting the governance and management of the charity, operational risks, financial risks, reputational risks and those which occur because of circumstances outside of the charity's control such as changes in government policy, laws and regulations. They regularly review the measures already in place, or needing to be put in place, to establish policies, systems and procedures to mitigate those risks identified in the annual review and ensure that action is taken to implement changes to those policies, systems and procedures should they be needed to minimise or manage any potential impact on the charity should those risks materialise.
Having assessed the major risks to which the charity is exposed, the trustees believe that by monitoring reserve levels, by ensuring controls exist over key financial systems, and by examining the operational and business risks faced by the charity, they have established effective systems to mitigate those risks.
Whilst there will be challenges, the continuing Covid-19 pandemic is not expected to present threats to the well-being of the charity or its activities. The trustees recognise their responsibility for the management of risks faced by the charity and will continue to monitor the position.
The key risks for the charity, as identified by the trustees, are described below together with the principal ways in which they are mitigated:
-
Operationally the charity works with children. The trustees recognise the absolute necessity of ensuring the protection and safety of all those that the charity serves. This means that trustees engaged in any ministry in the United Kingdom and all those who work or volunteer for the charity and work with children must obtain clearance from the Disclosure and Barring Service (DBS). The trustees are committed fully to implementing the policies of the Catholic Safeguarding Standards Anency. One of the trustees is responsible for ensuring this policy is adhered to in respect to all sisters, employees and volunteers. In addition, the trustees take part in on-going safeguarding training; update internal policies; and ensure that sisters, staff and volunteers are kept informed about good practice in work and ministry.
-
The charity holds the freehold title to land and buildings leased to Farnborough Hill School operated by the Farnborough Hill Trust where Sister Mary Dawson, Sister Elizabeth McCormack, Sister Rosemary O’Looney and Sister Cara Nagle, trustees of the charity, are company members.
The trustees work closely with the School to ensure that their asset is protected and maintained.
Louis Lafosse Educational CIO 6
Report of the trustees Year ended 31 July 2021
Future plans
It is the intention of the trustees to continue to respond to the needs of the times and fulfil public benefit and to meet the objectives of continuing the educational work of the predecessor charitable trust.
Signed on behalf of the trustees
Elizabeth McCormack RCE
Trustee
Approved by the trustees on: 21[st] February 2022
Louis Lafosse Educational CIO 7
Independent auditor’s report Year ended 31 July 2021
Independent auditor’s report to the trustees of the Louis Lafosse Educational CIO
Opinion
We have audited the accounts of the Louis Lafosse Educational CIO (the charity) which comprise the statement of financial activities, the balance sheet, 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:
-
give a true and fair view of the state of the charity’s affairs as at 31 July 201 and of the income and expenditure for the year then ended;
-
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-
have been prepared in accordance with the requirements of the Charities Act 2011.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the accounts section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the accounts in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the accounts, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the accounts is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity’s ability to continue as a going concern for a period of at least twelve months from when the accounts are authorised for issue.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
Other information
Louis Lafosse Educational CIO 8
Independent auditor’s report Year ended 31 July 2021
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:
-
the information given in the trustees’ report is inconsistent in any material respect with the accounts; or
-
sufficient accounting records have not been kept; or
-
the charity’s accounts are not in agreement with the accounting records and returns; or
-
we have not received all the information and explanations we require for our audit.
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.
Louis Lafosse Educational CIO 9
Independent auditor’s report Year ended 31 July 2021
Auditor’s responsibilities for the audit of the accounts
Our objectives are to obtain reasonable assurance about whether the accounts as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these accounts.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.
How the audit was considered capable of detecting irregularities including fraud
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
-
The engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
-
We identified the laws and regulations applicable to the charity through discussions with management and trustees and from our knowledge and experience of the charity sector;
-
We focused on specific laws and regulations which we considered may have a direct material effect on the accounts or the activities of the charity. These included but were not limited to the Charities Act 2011; Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable to the United Kingdom and Republic of Ireland (FRS 102) (effective 1 January 2019); and
-
We assessed the extent of compliance with the laws and regulations identified above through making enquiries of the trustees and the review of minutes of meetings of the trustees.
We assessed the susceptibility of the charity’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
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Making enquiries of the trustees as to where they considered there was susceptibility to fraud and their knowledge of actual, suspected and alleged fraud; and
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Considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.
Louis Lafosse Educational CIO 10
Independent auditor’s report Year ended 31 July 2021
Auditor’s responsibilities for the audit of the accounts
How the audit was considered capable of detecting irregularities including fraud
To address the risk of fraud through management bias and override of controls, we:
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Performed analytical procedures to identify any unusual or unexpected relationships;
-
Tested and reviewed journal entries to identify unusual transactions;
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Carried out substantive testing of expenditure including the authorisation thereof;
-
Gained an understanding of the processes in place for the management of the charity’s investments and confirmed the validity of investment movements; and
-
Investigated the rationale behind significant or unusual transactions.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
-
Reviewing the minutes of meetings of trustees;
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Enquiring of management as to actual and potential litigation and claims; and
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Agreeing accounts disclosures to underlying supporting documentation.
As a result of our procedures we did not identify any key audit matters relating to irregularities.
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the trustees and other management and the inspection of regulatory and legal correspondence, if any.
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.
A further description of our responsibilities for the audit of the accounts is located on the Financial Reporting Council’s website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
Louis Lafosse Educational CIO 11
Independent auditor’s report Year ended 31 July 2021
Use of our report
This report is made solely to the charity’s trustees, as a body, in accordance with section 144 of the Charities Act 2011 and with regulations made under section 154 of that Act. Our audit work has been undertaken so that we might state to the charity’s trustees those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.
Buzzacott LLP Statutory Auditor 130 Wood Street London EC2V 6DL
10 March 2022
Buzzacott LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006
Louis Lafosse Educational CIO 12
Statement of financial activities Year ended 31 July 2021
| Notes | 2021 £ |
2020 £ |
|---|---|---|
| Income from: Donations 1 Programme related investments 2 Transfer from Institute of Christian Education Charitable Trust (Charity Registration No: 244663) (see below) 13 Total income Expenditure on: Charitable activities . Grants and donations 3 . Support costs - governance costs 4 Total expenditure Net (expenditure) income and net movement in funds Reconciliation of funds: Fund balances brought forward at 1 August 2020 Fund balances carried forward at 31 July2021 |
60,000 70,000 |
70,000 70,000 |
| 130,000 — |
140,000 27,100 |
|
| 130,000 | 167,100 | |
130,000 3,300 |
130,000 3,000 |
|
| 133,300 | 133,000 | |
| (3,300) 34,100 |
34,100 — |
|
| 30,800 | 34,100 |
All income and expenditure of the charity is in respect to unrestricted funds. All recognised gains and losses are included in the statement of financial activities.
The charity’s activities commenced on 1 August 2019. All of the charity’s activities derived from continuing operations during both the above financial years.
Louis Lafosse Educational CIO 13
Balance sheet 31 July 2021
| Notes | 2021 £ |
2020 £ |
|---|---|---|
| Fixed assets Programme related investments 8 Current assets Debtors 9 Cash at bank and in hand Current liabilities Creditors: amounts falling due within one year 10 Net current assets Total net assets The funds of the charity: Funds and reserves Unrestricted funds . Programme related investment fund 11 . General fund |
27,000 | 27,000 |
| 10,000 100 |
10,000 100 |
|
| 10,100 **(6,300) ** |
10,100 (3,000) |
|
| 3,800 | 7,100 | |
| 30,800 | 34,100 | |
| 27,000 3,800 |
27,000 7,100 |
|
| 30,800 | 34,100 |
Approved by the trustees and signed on their behalf by:
Elizabeth McCormack RCE
Trustee
Approved on: 21[st] February 2022
Louis Lafosse Educational CIO 14
Principal accounting policies 31 July 2021
The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the accounts are laid out below.
Basis of preparation
These accounts have been prepared for the year to 31 July 2021 with the comparatives stated for the year to 31 July 2020.
The accounts have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant accounting policies below or the notes to these accounts. The accounts are presented in sterling and are rounded to the nearest pound.
The accounts have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (Charities SORP FRS 102), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.
The charity constitutes a public benefit entity as defined by FRS 102.
Critical accounting estimates and areas of judgement
Other than the estimation of future income and expenditure flows for the purpose of assessing going concern (see below), the preparation of the accounts did not require the trustees to make any significant judgements or estimates.
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.
During the financial period, the Covid-19 pandemic has continued to change the shape and nature of the world. It has impacted not only the basic nature of social interactions but has also had a significant economic impact at every level in ways which have been outside of the charity’s control.
The charity’s principal asset comprises land leased to an educational establishment. The charity’s anticipated income and expenditure are not expected to be affected materially by Covid-19 or other factors and, whilst the trustees will continue to keep the position under review, they do not anticipate that the impact of Covid-19 or other factors on the charity’s income flows, its expenditure flows and its financial position will be such as to call into question the charity’s ability to continue as a going concern. The trustees are of the view that the charity will be able to meet the challenges that lie ahead.
Louis Lafosse Educational CIO 15
Principal accounting policies 31 July 2021
Cash flow statement
The accounts do not include a cash flow statement because the charity, as a small reporting entity, is exempt from the requirement to prepare such a statement under the Charities SORP (FRS 102) Update Bulletin 1.
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 and investment income.
Donations are recognised 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.
Investment income comprises rental income from the charity’s programme related investments and is recognised when due under the terms of the lease.
Expenditure recognition
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to make a payment to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably.
All expenditure is accounted for on an accruals basis. All expenses are allocated to the applicable expenditure headings. The majority of expenditure is directly attributable and any apportionment between headings is negligible.
Expenditure on charitable activities includes all costs associated with furthering the charitable purposes of the charity through the provision of its charitable activities and includes:
- Grants and donations to support the charity’s educational work with Farnborough Hill School, an organisation with objectives consistent with those of the charity, are included in the statement of financial activities when approved and when the intended recipient has either received the funds or been informed of the decision to make the donation and has satisfied all related conditions. Grants approved but not paid at the end of the financial year are accrued for.
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Principal accounting policies 31 July 2021
Expenditure recognition (continued)
- Support costs represent indirect charitable expenditure and include governance costs comprising the costs involving the public accountability of the charity (including audit costs) and costs in respect to its compliance with regulation and good practice. All costs are in relation to the charity’s grant making activity.
All expenditure is stated inclusive of irrecoverable VAT.
Programme related investments
Programme related investments comprise land and buildings occupied by a third party but applied for purposes consistent with the pursuit of the charity’s charitable purposes. These are stated at cost.
Debtors
Debtors are recognised at their settlement amount, less any provision for nonrecoverability. 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.
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 group and charity anticipate they will pay to settle the debt. They have been discounted to the present value of the future cash payment where such discounting is material.
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Notes to the accounts 31 July 2021
1 Income from: Donations
Donations comprise amounts due from the Sisters of Christian Education CIO, a connected charity, of £60,000 (2020 - £70,000).
2 Income from: Programme related investments Income from investments comprises rental income of £70,000 (2020 - £70,000) received from Farnborough Hill School in accordance with the terms of a lease.
3 Expenditure on: Grants and donations
- Grants and donations of £130,000 (2020 - £130,000) were payable to Farnborough Hill School in support of advancement of education (note 8).
4 Expenditure on: Support costs - governance costs
- Governance costs comprise legal and professional fees of £3,300 (2020 - £3,000).
5 Net (expenditure) income
This is stated after charging auditor’s remuneration for the current period of £3,300 including VAT (2020 - £3,000).
6 Staff costs and remuneration of trustees and key management personnel
During the years to 31 July 2021 and 31 July 2020, the charity employed no staff and therefore incurred no staff costs.
The trustees consider that they comprise the key management of the charity in charge of directing and controlling, running and operating the charity on a day to day basis.
The trustees receive no remuneration or reimbursement of expenses in connection with their duties.
7 Taxation
Louis Lafosse Educational 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.
8 Programme related investments:
At 31 July 2021 and 31 July 2020 programme related investments comprised land and buildings applied for educational purposes costing £27,000.
As the properties are applied for educational purposes, the trustees are of the opinion that the relevant land and buildings should be classified as programme related investments. They were transferred to the charity from the Institute of Christian Education Charitable Trust (Charity Registration No: 244663) with effect from 1 August 2019.
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Notes to the accounts 31 July 2021
8 Programme related investments: (continued)
The property at Farnborough Hill is subject to a lease in favour of The Farnborough Hill Trust. The lease is for a period of 999 years and was granted on 20 August 2003 with a provision for five yearly rent reviews. The rent was last reviewed in 2018 by the predecessor charitable trust when it was agreed at £70,000 per annum.
The Farnborough Hill Trust is an incorporated charity constituted as a company limited by guarantee (Company Registration Number 2941378), and operates Farnborough Hill School, an independent Roman Catholic day school for girls aged 11-18 years.
9 Debtors
| Debtors | ||
|---|---|---|
| 2021 £ |
2020 £ |
|
| Amounts due from Sisters of Christian Education CIO(note 14) | 10,000 | 10,000 |
10 Creditors: amounts falling due within one year
| Creditors: amounts falling due within one year | ||
|---|---|---|
| 2021 £ |
2020 £ |
|
| Accruals | 6,300 | 3,000 |
11 Designated funds – programme related investment fund
| Designated funds – programme related investment fund | ||
|---|---|---|
| 2021 £ |
2020 £ |
|
| At 1 August 2020 Transfer from the Institute of Christian Education Charitable Trust (Charity Registration No: 244663) At 31 July2021 |
27,000 — |
— 27,000 |
| 27,000 | 27,000 |
The programme related investment fund represents the value of the charity’s programme related investments. As explained in note 8, these investments comprise land and buildings owned by the charity but used by The Farnborough Hill Trust, a charity with objectives consistent with those of the charity. It is the intention of the trustees that such assets should continue to be used for these purposes and, as such, their value should not be regarded as realisable with ease in order to meet future contingencies and/or obligations.
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Notes to the accounts 31 July 2021
12 Analysis of net assets between funds
| Analysis of net assets between funds | |||
|---|---|---|---|
| General funds £ |
Programme related investment fund £ 27,000 — — — 27,000 |
Total funds 2021 £ |
|
| Programme related investments Cash at bank and in hand Debtors Creditors: amounts falling due within one year |
— 100 10,000 (6,300) |
27,000 100 10,000 (6,300) |
|
| 3,800 | 30,800 | ||
| General funds £ |
Programme related investment fund £ 27,000 — — — 27,000 |
Total funds 2020 £ |
|
| Programme related investments Cash at bank and in hand Debtors Creditors: amounts falling due within one year |
— 100 10,000 (3,000) |
27,000 100 10,000 (3,000) |
|
| 7,100 | 34,100 |
13 Connected Charities
The trustees of the charity are also the trustees of Sisters of Christian Education CIO (Charity Registration Number 1177158). Four trustees of the charity are trustees of the Institute of Christian Education Charitable Trust (Charity Registration No: 244663) (the charitable trust), the predecessor charity.
With effect from 1 August 2019, the educational activities and associated assets and liabilities of the charitable trust were transferred as a going concern to the charity. The remaining assets were transferred to the Sisters of Christian Education CIO. Details of the net assets and funds transferred to the two CIOs are as follows:
| Sisters of Christian Education CIO £ 316,728 (42,453) 274,275 — 8,327,994 5,666 221,943 (150,225) (100,000) 8,579,653 |
Louis Lafosse Educational CIO £ |
Total £ |
|
|---|---|---|---|
| Tangible fixed assets . Cost . Depreciation Programme related investments Fixed asset investments Debtors Cash at bank and in hand Creditors . Amounts falling due within one year . Amounts falling due after one year |
— — |
316,728 (42,453) |
|
| — 27,000 — — 100 — — |
274,275 27,000 8,327,994 5,666 222,043 (150,225) (100,000) |
||
| 27,100 | 8,606,753 |
Louis Lafosse Educational CIO 20
Notes to the accounts 31 July 2021
13 Connected Charities (continued)
The net assets transferred were represented by the following funds:
| Sisters of Christian Education CIO £ |
Louis Lafosse Educational CIO £ |
Total £ |
|
|---|---|---|---|
| Charitable funds . Tangible fixed assets fund . Designated funds . General funds |
274,275 7,830,000 475,378 |
— 27,000 100 |
274,275 7,857,000 475,478 |
| 8,579,653 | 27,100 | 8,606,753 |
14 Related party transactions
The trustees of the charity are also the trustees of the Sisters of Christian Education CIO (Charity Registration No 1177158). In addition, as noted above, four trustees of the charity are trustees of the Institute of Christian Education Charitable Trust (Charity Registration No: 244663) (the charitable trust). The transactions with the charitable trust during the year to 31 July 2020 are set out in note 13 above.
During the year, the charity was notified of a donation of £60,000 (2020- £70,000) from the Sisters of Christian Education CIO (note 1). At 31 July 2021, the charity was owed £10,000 (2020 - £10,000) by the Sisters of Christian Education CIO (note 9).
The charity has made donations totalling £130,000 (2020 - £130,000) to The Farnborough Hill Trust, a charitable company, where Sister Mary Dawson, Sister Elizabeth McCormack, Sister Rosemary O’Looney and Sister Cara Nagle, trustees of the charity, are company members. These donations were made for the purpose of the advancement of education of children at the school.
15 Membership and liability of members
The trustees are members of the charity.
If the charity is wound up, the members of the charity have no liability to contribute to its assets and no personal responsibility for settling its debts and liabilities.
Louis Lafosse Educational CIO 21