**Charity number: 211200**
**Sisters of Charity of St Paul the Apostle**
Trustees' report and financial statements
For the year ended 31 December 2021
**Sisters of Charity of St Paul The Apostle**
## **Contents**
||Page|
|---|---|
|**Reference and administrative details of the Charity, its Trustees and advisers**|1|
|**Trustees' report**|2 - 9|
|**Independent auditors' report on the financial statements**|10 - 13|
|**Consolidated statement of financial activities**|14 - 15|
|**Consolidated balance sheet**|16|
|**Charity balance sheet**|17|
|**Consolidated statement of cash flows**|18|
|**Notes to the financial statements**|19 - 41|
**Sisters of Charity of St Paul The Apostle**
## **Reference and administrative details of the Charity, its Trustees and advisers For the year ended 31 December 2021**
|**Trustees**|Sister C Neenan, Superior General|
|---|---|
||Sister T Murphy, Councillor & Bursar|
||Sister A Sullivan, Councillor & Secretary|
||Sister M Mattison, Councillor|
||Sister E Browne, Councillor|
||Sister C Bordea, Councillor|
|**Charity registered**
**numbers**
211200 and SC038528
**Registered office**
St. Pauls Convent
94 Selly Park Road
Selly Park
Birmingham
B29 7LL
**Independent auditors**
Dains LLP
15 Colmore Row
Birmingham
B3 2BH
**Bankers**
Lloyds Bank Plc
134 New Street
Birmingham
B2 4NP
**Solicitors**
Glaisyers
Rowchester Court
10 Printing House Street
Birmingham
B4 6DZ
**Investment Managers**
Smith & Williamson Investment Management
3rd Floor
9 Colmore Row
Birmingham
B3 2BJ||
Page 1
**Sisters of Charity of St Paul The Apostle**
**Trustees' Report For the year ended 31 December 2021**
The Trustees present their annual report together with the audited financial statements of the Sisters of Charity of St Paul the Apostle for the year 1 January 2021 to 31 December 2021.
## **Introduction**
The Sisters of Charity of St Paul the Apostle is an unincorporated charity registered with the Charity Commission of England and Wales under Registration Number 211200.
The Charity is also registered with the Office of the Scottish Charity Regulator under Registration Number SC038528 and with the Charities Regulatory Authority in the Republic of Ireland under Registration Number 20011598.
The Sisters of Charity of St Paul the Apostle is a Religious Congregation founded in 1847 and there are currently 99 members. It is governed and managed by the Superior General together with an elected Council of five Sisters referred to as the Leadership Team. These are the Trustees of the Charity listed on page 1.
## **Objectives and activities**
## **a. Policies and objectives**
The Charity’s Trust Deed states the Trust’s principal objectives to be the support or advancement by lawful charitable means of any charitable work for the time being carried on by the Congregation and if at any time the Congregation ceases to exist or ceases to carry on charitable work then for the advancement of the Roman Catholic Religion by such lawful charitable means as the Trustees or a majority of the Trustees think fit. The Trustees hold meetings on a regular basis to conduct the operations of the Charity and implement its investment and other policies.
In setting objectives and planning for activities, the Trustees have given due consideration to general guidance published by the Charity Commission relating to public benefit, including the guidance 'Public benefit: running a charity (PB2)'.
## **b. Activities undertaken to achieve objectives**
In fulfillment of the objectives of the Trust it is the policy of the Charity to serve the public benefit by undertaking a variety of charitable activities. Members are involved in Education at various levels, Health Care, Care of the Elderly, including elderly and sick members, various forms of Social and Pastoral work, Initial Formation and Training of members. There have been no material changes in policy during the last year. It is the policy of the Charity to serve the public benefit by:
## **1. EDUCATION**
Members of the Congregation teach in Pre-Schools and Primary Schools, and are involved in Diocesan Adult Education and Formation Programmes, Literacy and Numeracy programmes for adult immigrants and children with special needs. They also work as counsellors, school governors and voluntary helpers. Within the field of education, the pastoral care, security and safety of pupils are regarded as a priority. The Charity operates the following schools: -
## **England**
St Paul’s Catholic School for Girls, Birmingham (1,000+ students). This is a Voluntary Aided Roman Catholic non-selective Comprehensive School. The Trustees are those of the Congregation. The school is administered by a Board of Governors with foundation Governors selected by the Trustees. The Congregation owns the freehold land and buildings. Members of the Congregational Trustees are members of the Governing Body and give feedback at the Trustee Meetings.
Page 2
**Sisters of Charity of St Paul The Apostle**
**Trustees' Report (continued) For the year ended 31 December 2021**
## **Objectives and activities (continued)**
## **Ireland**
The Congregation owns the freehold land and buildings of St Paul’s Senior Primary School, Greenhills, Dublin (300+ students), now called Holy Spirit Primary School which is under the patronage of the Archdiocese of Dublin and funded by the Department of Education and Skills.
The Congregation owns the freehold land and buildings of these two schools:
Scoil Pól (St Paul’s) Secondary School, Kilfinane (600+ students)
St. Paul’s Secondary School, Greenhills, Dublin 12 (500+ students)
The Trusteeship was transferred to Le Chéile, a Catholic Schools Trust, on 1st September 2009 with a licence, which expires on 31 August 2029, to use the properties to operate the schools.
A Trustee and Chairpersons of the Board of Management of each of these schools attend regular meetings of the Le Chéile Trust.
## **South Africa**
Selly Park Primary School, Rustenburg (500 students approx.) Selly Park Secondary School, Rustenburg (300+ students)
These are Roman Catholic Multi-racial Schools which are fee-paying and independent. The fees are deliberately fixed at a moderate rate to enable children of poorer families to benefit. The Trustees have approved the provision of Bursaries which took effect in 2007. Staff and members of the Board of Governors in both schools are carefully chosen ensuring that, as far as possible, there is a fair balance of gender, race and expertise. Members of the Congregation’s Trustees visit the schools each year to ensure that the ethos of the schools is in accordance with the spirit of the Congregation, that the properties are well maintained and that the finances are administered efficiently. Feedback from the visits is given at full Trustee Meetings. Both schools are now under the Trusteeship of a Catholic Schools Trust. The properties are in the ownership of the Congregation.
## **Romania**
The Congregation currently finances three Pre-Schools, one Primary School and one Secondary School:
- Câmpulung-Muscel (One Building) Pre-School, Primary School (morning session) and Secondary School (afternoon session) 500+ students. Onesti - Pre-School 100+ Children Tomesti - Pre-School 80+ Children
The Vladimir Ghika Day Centre was officially opened in November 2017. It caters for 30+ children with autism and severe learning difficulties.
The Charity has established sound financial structures for these schools and the accounts are submitted for annual audit. Members of the Congregation’s Trustees visit these schools at least once a year if possible and meet with School Managers to ensure that the ethos of the school is in accordance with the mission of the Congregation, that the properties are well maintained and that the finances are administered efficiently. Feedback from the visit is given at full Trustee Meetings.
The Sisters of Charity of St. Paul the Apostle Romanian Association, encompassing the properties of Campulung, Onesti and Tomesti was established in 2010.
Page 3
**Sisters of Charity of St Paul The Apostle**
**Trustees' Report (continued) For the year ended 31 December 2021**
## **Objectives and activities (continued)**
## **2. HEALTH CARE**
## **Care of the Elderly**
The Congregation operates the following Care Facilities:
## **England**
## **Registered Care Home with Nursing**
St Paul’s Nursing Home, Selly Park, Birmingham (24 beds).
The Trustees have engaged The Saint John of God Hospitaller Services to manage this Care Home and hold quarterly review meetings with them
## **Mother House**
In the Mother House a team of Care Professionals is in place to support frail and elderly members to maintain the activities of daily living for as long as possible.
This Care Provision also operates in branch houses as appropriate.
## **Scotland**
The Charity, which includes the results of St Anne’s Registered Care Home, Musselburgh, Scotland (37 beds), is also listed on the Scottish Charity Register: SC038528.
In this Care Home the Manager and staff provide quality care in compliance with the standards set by the Scottish Care Commission. Board of Management meetings are held regularly at which the Manager presents a comprehensive report to the Trustees.
## **Romania**
In Tomesti, one member works in a Centre for mentally and physically disabled adults.
## **3. SOCIAL AND PASTORAL CARE**
The Congregation operates a Day Conference Centre which facilitates education and religious/voluntary groups.
Some members contribute to retreat and pastoral programmes in other centres as requested.
Members work in the fields of psychotherapy and counselling, social work and parish pastoral ministries, hospital and prison chaplaincy, a welfare centre, an inter-church project for refugees and asylum seekers, a day centre for the homeless, alcohol/drugs dependency units and in the Anawim women’s project. There is an increasing inter-faith dimension to all of these ministries.
One member is a Diocesan Trustee.
Members work in pastoral and parish ministries in each country where the Congregation has a mission. Members also visit the sick and needy in their own homes.
Page 4
**Sisters of Charity of St Paul The Apostle**
## **Trustees' Report (continued) For the year ended 31 December 2021**
## **Objectives and activities (continued)**
## **4. FORMATION AND TRAINING OF MEMBERS AND TRUSTEES**
The formation and education of new members are regarded as very important. For this purpose, designated houses and personnel are in place in Romania and England. Programmes of on-going training and formation are also provided for all members on a regular basis either by personnel within the Congregation or by other agencies. Members are encouraged to avail of opportunities to develop their own spiritual, theological and professional formation. There is a policy of induction and on-going training for Trustees.
## **5. SAFEGUARDING**
Trustees of the Charity:
- (i) Take appropriate steps to ensure incidents of abuse cannot and do not take place.
- (ii) Have adequate and proper Safeguarding policies and systems in place in accordance with:
- Catholic Safeguarding Advisory Service (CSAS), England.
- The National Board for Safeguarding Children in the Catholic Church, Ireland.
- The Scottish Catholic Safeguarding Service.
- (iii) Ensure they deal with allegations/concerns of abuse seriously and responsibly and in the interests of the Charity.
- (iv) Ensure that members of the Congregation are regularly updated on Safeguarding matters.
Page 5
**Sisters of Charity of St Paul The Apostle**
**Trustees' Report (continued) For the year ended 31 December 2021**
## **Financial review**
## **a. Going concern**
In the current business climate, the Board acknowledges the ongoing COVID-19 pandemic. In response to the pandemic the Leadership Team are monitoring all aspects of the Group’s activities and have implemented operational changes to mitigate the financial impact of COVID-19.
Actions have included a full reforecast of the financial position and cashflows for the period to January 2025 and stress testing the cash position to assess scenarios relating to reductions in investment values. The liquidity of the investments has also been considered to ensure that funds are sufficiently accessible should they be called upon.
A continuity plan has been put in place to manage the charity during the Coronavirus pandemic and they continue to follow the UK Government guidelines and monitor the situation.
The Charity furloughed a number of employees under the Government’s Coronavirus Job Retention Scheme, which affected 5% of staff.
The Trustees have undertaken a detailed assessment of cashflows for the period to January 2025 considering likely income scenarios, cost reductions and government support.
The Trustees recognise that there remains a high degree of uncertainty as a result of the pandemic. However, after considering the level of reserves (current and projected), the diversity of income streams and the steps taken to mitigate including cost reductions, the Trustees assess that the charity will continue to provide its public benefit during the crisis and beyond. They therefore consider that it is appropriate for the financial statements to be prepared on a going concern basis.
## **b. Investments**
The investments held by the Congregation were acquired in accordance with powers available to the Trustees.
The Trustees are mindful of the need to have an ethical approach to investment. The Trustees seek to ensure that they invest only in companies that are supportive and not in conflict with the work of the Charity. The Trustees do not invest in companies involved in the manufacture and sale of armaments nor any involved in illicit or illegal drugs or pharmaceuticals, similarly, they avoid companies that exploit the environment.
Together with the Investment Managers the Trustees decided to divest investment in fossil fuels.
The investment managers report to the Trustees in detail each quarter on the performance of the investments. Comparisons with a number of recognised performance indices enable the Trustees to consider the return on investments to be satisfactory.
## **c. Insurance Cover**
Trustees ensure that there is adequate cover in place for all the activities of the Charity.
Page 6
**Sisters of Charity of St Paul The Apostle**
## **Trustees' Report (continued) For the year ended 31 December 2021**
## **d. Risk Management**
The Trustees have considered the major risks to which the Charity is exposed, in particular those related to the operations and finances of the Charity, and believe that there are adequate systems in place to mitigate exposure to the major risks.
Members working in Romania and South Africa are allowed sufficient funds to ensure their personal safety and to care for their health. They also meet the health and safety requirements of the area in which they work.
The Trustees Risk Assessment document was updated in February 2022.
## **e. Reserves Policy**
## **Unrestricted funds**
General unrestricted funds - it is the policy of the Trustees, having regard to the specific designated funds referred to below, to maintain the total of the General unrestricted funds, which are the free reserves of the charity and the mission and donation fund, at a level which in total would not exceed 6 months expenditure. Such funds may be held in order to finance both the working capital and capital investment in furtherance of the objectives of the charity. Free reserves at 31 December 2021 as defined above of £2,745,211 (2020 - £2,143,930) together with the Mission and Donation fund of £1,500,000 (2020 - £1,500,000) at that date, in aggregate represent not more than 6 months projected expenditure.
Designated funds - this represents amounts that have been put aside out of unrestricted funds at the discretion of the Trustees for particular projects. The designated funds at 31 December 2021 were £26,317,085 (2020 £25,212,481). The designation is for administrative purposes only and does not legally restrict the Trustees discretion to apply the fund. The designated funds are:
## **Retirement and Medical fund**
The Trustees have designated funds to provide for their commitment to make due provision for the retirement and care in old age and sickness of the Congregation’s members.
## **Mission and Donation fund**
Funds are designated for ongoing mission work.
## **Fixed Assets**
In order to fulfil its charitable objectives the Congregation needs a large number of properties. Any property surplus to requirements is sold, but the remainder although unrestricted cannot be realised without undermining the Congregation’s work. The Trustees hold a property review meeting every six months to ensure that properties continue to fulfil the needs of the Congregational Mission.
The contents of the properties and motor vehicles are similarly used in the work of the Congregation.
A proportion of the fixed assets is represented by the Endowment fund. The Trustees consider that the value of all the fixed assets should be reflected by endowment or designated funds and accordingly, have created a designated fund for this purpose
## **Investments**
The investments fund represents the carrying value of investments after deducting the retirement and medical and the mission and donation funds.
Page 7
**Sisters of Charity of St Paul The Apostle**
**Trustees' Report (continued) For the year ended 31 December 2021**
## **Restricted funds**
Restricted funds of £9,463 (2020 - £1,258,752) represent grants, donations and legacies that are allocated by the donor for specific purposes.
## **Endowment fund**
Endowment funds of £6,893,800 (2020 - £7,000,000) represent those assets that must be held permanently by the Charity, comprising the land and buildings occupied by the Mother House. Depreciation on the properties is charged against the fund.
## **f. Results**
The net movement in funds for the year of £350,396 (2020 - £1,544,412) is in line with expectations. With an ageing community, income is increasingly reflected in pensions earned for past services and investment income rather than salaries. This also results in greater reliance on paid lay employees and the importance of managing properties to reflect their best use for the on-going charitable work.
## **Structure, governance and management**
## **a. Constitution**
The Charity is governed by a Trust Deed dated 27 May 1957 and a Charity Commission Scheme of 17 November 1967. The Charity is constituted as an Unincorporated Association.
The Trustees were appointed at the General Chapter meeting in July 2016 and took up office on 1 October 2016.
Trustees are appointed for a six year term, and in accordance with the Constitution, can only serve for a maximum of two full consecutive terms in office. Elections are held every six years.
## **b. Fundraising**
Section 162a of the Charities Act 2011 requires charities to make a statement regarding fundraising activities. Although we do not undertake widespread fundraising from the general public, the legislation defines fund raising as “soliciting or otherwise procuring money or other property for charitable purposes.” Such amounts receivable are presented in our accounts as “income from donations and legacies” and include grants.
The Trustees are aware of the Charity Governance Code. This is a voluntary code which the Trustees have not yet signed up to.
Page 8
Sistèrs of Charity of St Paul The Apostle
Trustees, RepDrt l¢ontinuÈdl
For the year ended 31 December 2021
Stalem8nl of Trustees, responsibilities
The Trustees are responsible lor preparing the Trustees, report and the financial slalemenls in accordance with
applicable law and United Kingdom Accounting Standard5 (United Kingdom Generally Accepted Accounting
Praclicel.
The law applicable lo charities in England & Wales and Scotland requires the Trustees lo prepare financial
slalemenls for each linancial year whi¢h give a true and fair view of the slate of affairs Df the Group and the
Charity and ol their incoming resources and application of resources, including their income and expenditure,
for that period. In preparing these financial slalemenls. the Trusle8s aro required lo..
select suitable accounting policies and then apply them ¢onsislenlly',
observe the methods and principles of the Charities SORP IFRS 102).,
make judgements and accounting eslimales that are reasonable and prudent.,
slate whether applicable UK AccDunling Standards IFRS 1021 have been followed, subject lo any
material departure5 disclosed and explained in the financial stalemenls.,
prepare the financial slalemenls on the going Concern basis unless il is inappropriate lo presume that the
Group will continue in business.
The Trustees are responsible for keeping adequate accounting records that are sufficient lo show and explain
the Group and the Charity's transactions and disclDse with reasonable accuracy al any limè the financial
P05I1ion of the Group and the Charity and enable them lo ensure that the financial slalemenls comply with the
Charities Act 2011, the Charity IAccounls and Reports) Regulations 2008, the Charities and Trustee Investment
{Scollandl Act 2005. the Charities Accounts Iscollancll Regulations 2006 las amended) and the provisions of
the Trusl deed. They are also responsible for safeguarding the assets of the Group and the Charity and hence
for taking reasonable steps for the prevention and detection ol fraucl and other irregularities.
Disclosure of information to auditors
Each of the persons who are Trustees al the lime when this Trustees, report is approved has confirmed that..
so far as Ihal Trustee is aware, there is no relevant audit information of which the charitable group's
auditors ar& unawar&, and
that Trustee has taken all the steps Ihal ought lo have taken as a Trustee in order lo be aware of
any relevant audit information and lo establish that the charitable group's auditors are aware of that
information.
Auditors
The auditors, Dains LLP. have indicated their willingness lo continue in office. The designated Trustees will
prorx)se a motion reappointing the audilois al a meeting ol the Trustees.
Approved by order of the members of the bc)èrd of Trustees on 19 May 2022 and signed on their beha by..
Sister C Neenan
Trustee
Page 9
**Sisters of Charity of St Paul The Apostle**
## **Independent auditors' report to the Members of Sisters of Charity of St Paul The Apostle**
## **Opinion**
We have audited the financial statements of Sisters of Charity of St Paul The Apostle (the 'parent charity') and its subsidiaries (the 'group') for the year ended 31 December 2021 which comprise the Consolidated statement of financial activities, the Consolidated balance sheet, the Charity balance sheet, the Consolidated statement of cash flows and the related notes, including a summary of significant accounting policies. 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).
The financial statements have been prepared in accordance with Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standards applicable in the UK and Republic of Ireland (FRS 102) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has been withdrawn.
This has been done in order for the accounts to provide a true and fair view in accordance with the Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2015.
In our opinion the financial statements:
- give a true and fair view of the state of the Group's and of the parent charity's affairs as at 31 December 2021 and of the Group's incoming resources and application of resources, including its 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, the Charities and Trustee Investment (Scotland) Act 2005 and regulations 6 and 8 of the Charities Accounts (Scotland) Regulations 2006.
## **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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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 Group's or the parent charity's 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.
Page 10
**Sisters of Charity of St Paul The Apostle**
## **Independent auditors' report to the Members of Sisters of Charity of St Paul The Apostle (continued)**
## **Other information**
The other information comprises the information included in the Annual report other than the financial statements and our Auditors' report thereon. The Trustees are responsible for the other information contained within the Annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of 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 this gives rise to a material misstatement in the financial statements themselves. 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 where the Charities (Accounts and Reports) Regulations 2008 and the Charities Accounts (Scotland) Regulations 2006 (as amended) 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 financial statements; or
- the parent Charity has not kept sufficient and proper accounting records; or
- the parent Charity financial statements 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 financial statements which give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the Trustees are responsible for assessing the Group's and the parent 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 Group or the parent charity or to cease operations, or have no realistic alternative but to do so.
Page 11
**Sisters of Charity of St Paul The Apostle**
## **Independent auditors' report to the Members of Sisters of Charity of St Paul The Apostle (continued)**
## **Auditors' responsibilities for the audit of the financial statements**
We have been appointed as auditor under section 151 of the Charities Act 2011 and section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and report in accordance with the Act and relevant regulations made or having effect thereunder.
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' 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 financial statements.
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:
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 senior statutory auditor 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 directors and other management, and from our commercial 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 financial statements or the operations of the Charity, including the financial reporting legislation, Charities Act 2011, taxation legislation, anti-bribery, employment, and environmental and health and safety legislation;
- we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and
- identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
We assessed the susceptibility of the Charity’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud;
- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.
To address the risk of fraud through management bias and override of controls, we:
- performed analytical procedures to identify any unusual or unexpected relationships; tested journal entries to identify unusual transactions;
- assessed whether judgements and assumptions made in determining the accounting estimates set out in Note 3 were indicative of potential bias;
- investigated the rationale behind significant or unusual transactions.
Page 12
Sisters of Charlty of St Paul The Apostle
Independenl audltors. report to the Members of Slslers of Charity of St Paul The Apostle Icontinuedl
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures
which included, bul were not limited lo..
agreeing financial slalemenl disclosures lo underlying supporting documenlalion.,
reading the minutes of meetings of those charged with governance.,
enquiring ol management as lo actual and potential liligalion and claims,.
reviewing correspondence with HMRC, relevant regulalois and the Charity's legal advisors.
Because of the inherent limitations of an audit, there is a risk that we will not delecl all irregularities, including
those leading lo a material rnisslalemenl in the financial slalemenls or non-CDmpliance with règulation. This risk
increases the mc>re that compliance with a law or regulation is removed from the events and transactions
reflected in the financial statements, as we will be less likely lo become aware of instances ol non-compliance.
The risk is also greater regarding irregLJlarilies occurring due lo fraud rather than error, as fraud involves
intentional ¢oncealmenl, forgery, collusion, omission or misrepresenlalion.
A further description of our responsibilities for the audit of thè financial slalemenls is located on the Financial
Reporting Council's website al.. wNw.frc.or
.uklaudilorsres
onsibililie5. This description form5 part of our
Auditors, repoil.
Use of our report
This report is made solely lo the charity's Iruslees, as a body, in accordance with Part 4 of the Charities
(Accounts and Reports) Regulations 2008 and regulation 10 01 the Charities Accounls (Scollandl Regulations
2006. Our audit work has been undertaken so that we might slate lo the charitys Iruslees those matters we are
required lo slate lo them in an Audilois, report and lor no other purpose. To the fullest exlenl permitted by law,
we do not accept or assume responsibility lo anyone other than the charity and ils Iruslees, as a body, lor our
audit work, lor this report. or for the opiniDns we have formed.
c¥//**Income and**
**endowments from:**
Donations and
legacies
4
Charitable activities
5
Investments
6
Other income
7
**Total income and**
**endowments**
**Expenditure on:**
Raising funds
8
Charitable activities
9
**Total expenditure**
**Net (expenditure) /**
**income before**
**investments**
Net gains/(losses) on
investments
**Net income /**
**(expenditure)**
Transfers between
funds
17
**Net movement in**
**funds before other**
**gains/(losses)**
**Other recognised**
**gains/(losses):**
Gains on revaluation
of fixed assets
Other losses
**Net movement in**
**funds**|**Unrestricted**
**funds**
**2021**
**£**
**2,368,317**
**4,280,817**
**531,902**
**570,863**
**7,751,899**
**65,584**
**8,813,104**
**8,878,688**
**(1,126,789)**
**1,696,639**
**569,850**
**1,216,185**
**1,786,035**
**-**
**(80,150)**
**1,705,885**|**Restricted**
**funds**
**2021**
**£**
**35,346**
**-**
**-**
**-**
**35,346**
**-**
**68,450**
**68,450**
**(33,104)**
**-**
**(33,104)**
**(1,216,185)**
**(1,249,289)**
**-**
**-**
**(1,249,289)**|**Endowment**
**funds**
**2021**
**£**
**-**
**-**
**-**
**-**
**-**
**-**
**106,200**
**106,200**
**(106,200)**
**-**
**(106,200)**
**-**
**(106,200)**
**-**
**-**
**(106,200)**|**Total**
**funds**
**2021**
**£**
**2,403,663**
**4,280,817**
**531,902**
**570,863**
**7,787,245**
**65,584**
**8,987,754**
**9,053,338**
**(1,266,093)**
**1,696,639**
**430,546**
**-**
**430,546**
**-**
**(80,150)**
**350,396**|**Total**
**funds**
**2020**
**£**
2,413,603
4,123,547
503,271
1,819,099
8,859,520
51,403
8,294,133
8,345,536
513,984
(552,812)
(38,828)
-
(38,828)
1,663,897
(80,657)
1,544,412|
|---|---|---|---|---|---|
Page 14
## **Sisters of Charity of St Paul The Apostle**
## **Consolidated Statement of financial activities For the year ended 31 December 2021**
|**Reconciliation of**
**funds:**
Total funds brought
forward
17
Net movement in
funds
**Total funds carried**
**forward**
17|**Unrestricted**
**funds**
**2021**
**£**
**27,356,411**
**1,705,885**
**29,062,296**|**Restricted**
**funds**
**2021**
**£**
**1,258,752**
**(1,249,289)**
**9,463**|**Endowment**
**funds**
**2021**
**£**
**7,000,000**
**(106,200)**
**6,893,800**|**Total**
**funds**
**2021**
**£**
**35,615,163**
**350,396**
**35,965,559**|**Total**
**funds**
**2020**
**£**
34,070,751
1,544,412
35,615,163|
|---|---|---|---|---|---|
The notes on pages 19 to 41 form part of these financial statements.
Page 15
Sister5 of Charlty of St Paul The Apostle
Consolidated Balance Sheet
As at 31 December 2021
2021
2020
Not
Fixed assets
Tangible assets
Investments
13
16,371,325
15,S96,094
16,919,100
13,730,866
14
31,966.419
30,S49,968
Current assets
Debtors due within 1 year
Cash al bank and in hand
15
229,102
4,241,006
299,084
5,082,352
20
4,470.107
5,381,436
Creditors.. amounts falling due within one
year
16
1470,9671
1416,2391
Nèt current assets
3,999,140
4,965,197
Total assets less currènt liabilities
35,965,559
35,615.163
Funds
Endowment funds
Reslricled funds
Unre51ricled funds
17
17
6.893,800
9,463
29,062,296
7,ODO,000
1,258,752
27,356,411
17
Total funds
35,965,559
35,615,163
The financial slalem&nts were approved and aulhorised for issug by the Trustees on 19 May 2022 and signed
on Iheir behalf by..
Sister C Neenan
Trustee
The notes on pages 19 10 41 form part of these financial slalèments.
Page 16
Sistèrs of Charity of St Paul Thg Apostle
Charily Balance Sheet
As al 31 December 2021
2021
2020
Note
FSxed assets
Tangible assets
Investments
13
14
16.370.492
14,979.813
16,916,336
13.188,139
31.350,305
30,104,475
Current assets
Dèbtors
Cash al bank and in hand
15
96,016
2,415,143
430,769
2,890,558
2,511,159
3,321,327
Creditors.. amounts falling due within one
year
16
1155,912
1149,4291
Net current assets
2,355,247
3,171,898
Total net assets
33,705,552
33,276.373
Charity funds
Endowment funds
Reslriclfjd funds
UnreslriGled funds
6,893,800
1,225.648
25,5B6,104
7.000,000
1.258,752
25,017,621
Total funds
33,705.552
33,276,373
The financial slalemersts were approved and aulhorised for issue by the Trustees on 19 May 2022 and signed
on their behalf by..
Sister C Neenan
Trustee
The notes on pages 19 10 41 form part of these linan¢ial slalements.
Page 17
## **Sisters of Charity of St Paul The Apostle**
## **Consolidated Statement of Cash Flows For the year ended 31 December 2021**
|**Note**
**Cash flows from operating activities**
Net cash used in operating activities
20
**Cash flows from investing activities**
Dividends, interests and rents from investments
Proceeds from the sale of tangible fixed assets
Purchase of tangible fixed assets
Proceeds from sale of investments
Purchase of investments
**Net cash provided by investing activities**
**Change in cash and cash equivalents in the year**
Cash and cash equivalents at the beginning of the year
Change in cash and cash equivalents due to exchange rate movements
**Cash and cash equivalents at the end of the year**
21|**2021**
**£**
**(1,759,304)**
**531,902**
**695,978**
**(65,159)**
**1,949,827**
**(1,057,109)**
**2,055,439**
**296,135**
**5,082,352**
**(80,150)**
**5,298,337**|**2020**
**£**
(1,687,626)
503,271
1,809,160
(87,306)
1,378,098
(1,530,095)
**2,073,128**
**385,502**
4,777,507
(80,657)
5,082,352|
|---|---|---|
The notes on pages 19 to 41 form part of these financial statements
Page 18
**Sisters of Charity of St Paul The Apostle**
**Notes to the Financial Statements For the year ended 31 December 2021**
## **1. General information**
Sisters of Charity of St Paul the Apostle is an unincorporated Charity registered in England, Wales and Scotland. The registered office address and registered numbers are given on page 1. The principal activities and objectives of the Charity are set out in the Trustees' Report beginning on page 2.
## **2. Accounting policies**
## **2.1 Basis of preparation of financial statements**
The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - 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 UK and Republic of Ireland (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 Charities and Trustee Investment (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006 (as amended).
The financial statements have been prepared to give a 'true and fair' view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a 'true and fair' view. This departure has involved following the Charities SORP (FRS 102) published in October 2019 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.
Sisters of Charity of St Paul The Apostle meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.
The Consolidated statement of financial activities (SOFA) and Consolidated balance sheet consolidate the financial statements of the Charity and its subsidiary undertaking. The results of the subsidiary are consolidated on a line-by-line basis.
Page 19
**Sisters of Charity of St Paul The Apostle**
**Notes to the Financial Statements For the year ended 31 December 2021**
## **2. Accounting policies (continued)**
## **2.2 Income**
All income is recognised in the statement of financial activities when the conditions for receipt have been met and there is reasonable assurance of receipt. Where a claim for repayment of income tax has or will be made, such income is grossed up for tax recoverable. The following accounting policies are applied to income:
The recognition of income from legacies is dependent on establishing entitlement, the probability of receipt and the ability to estimate with sufficient accuracy the amount receivable. Evidence of entitlement to a legacy exists when the Charity has sufficient evidence that a gift has been left to them (through knowledge of the existence of a valid will and the death of the benefactor) and the executor is satisfied that the property in question will not be required to satisfy claims in the estate. Receipt of a legacy must be recognised when it is probable that it will be received and the fair value of the amount receivable, which will generally be the expected cash amount to be distributed to the Charity, can be reliably measured.
Grants are included in the Consolidated statement of financial activities on a receivable basis. The balance of income received for specific purposes but not expended during the period is shown in the relevant funds on the Balance sheet. Where income is received in advance of entitlement of receipt, its recognition is deferred and included in creditors as deferred income. Where entitlement occurs before income is received, the income is accrued.
Gifts in kind donated for distribution are included at valuation and recognised as income when they are distributed to the projects. Gifts donated for resale are included as income when they are sold.
Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable.
Other income is recognised in the period in which it is receivable and to the extent the goods have been provided or on completion of the service.
## **2.3 Expenditure**
Expenditure is accounted for on an accruals basis and has been classified using the following method:
Expenditure on raising funds includes all expenditure incurred by the Group to raise funds for its charitable purposes and includes costs of all fundraising activities events and non-charitable trading.
Expenditure on charitable activities is incurred on directly undertaking the activities which further the Group's objectives, as well as any associated support costs. Expenditure in each of the houses have been divided on the type of activities carried out by each house. The division is on a percentage basis. The bases of the allocation of percentage is reviewed each year. The percentage allocated to each of the charitable activities for each of the houses has been decided by the Trustees.
All expenditure is inclusive of irrecoverable VAT.
Page 20
**Sisters of Charity of St Paul The Apostle**
**Notes to the Financial Statements For the year ended 31 December 2021**
## **2. Accounting policies (continued)**
## **2.4 Government grants**
Government grants, including the Coronavirus Job Retention Scheme, are credited to the Consolidated statement of financial activities as the related expenditure is incurred.
## **2.5 Tangible fixed assets and depreciation**
Tangible fixed assets are initially recognised at cost. After recognition, under the revaluation model, tangible fixed assets whose fair value can be measured reliably shall be carried at a revalued amount, being their fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The freehold land and buildings occupied by the Mother House, namely St Paul's Convent, have been included in the financial statements at their fair value based on the results of a professional valuation carried out in December 2020, with depreciation being charged since this date and subsequent improvements included at cost.
The other property held by the Charity, namely the branch houses, are held at historical cost, the cost being deemed as the value of the properties on transition to FRS102 following a professional valuation in 2005.
The value of land is estimated by the Trustees and is not depreciated because it has an indefinitely long useful life.
Furniture, fixtures and fittings have been included in the financial statements at the Trustees’ valuation at 31 December 1996, with subsequent acquisitions with an individual cost in excess of £5,000 included at cost.
Revaluations are made with sufficient regularity to ensure that the carrying amount does not differ materially from that which would be determined using fair value at the end of the reporting date.
Fair values are determined from market-based evidence by appraisal that is normally undertaken by professionally qualified valuers. If there is no market-based evidence of fair value because of the specialised nature of the tangible fixed asset and it is rarely sold, except as part of a contributing business, a Charity may need to estimate fair value using an income or depreciated replacement cost approach.
At each reporting date the Charity assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined to be the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.
Page 21
**Sisters of Charity of St Paul The Apostle**
## **Notes to the Financial Statements For the year ended 31 December 2021**
## **2. Accounting policies (continued)**
## **2.5 Tangible fixed assets and depreciation (continued)**
Tangible fixed assets held for charitable purposes are depreciated at rates calculated to write off their estimated historic cost over the term of their useful lives as follows using the straight-line method.
The rates of depreciation are as follows:
|Land|-|no depreciation|
|---|---|---|
|Buildings|-|2% straight line method|
|Motor vehicles|-|20% straight line method|
|Fixtures and fittings|-|10% straight line method|
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the Consolidated statement of financial activities.
## **2.6 Investments**
Investments in subsidiaries are valued at cost less provision for impairment.
Other fixed asset investments, which mainly comprise investments quoted on recognised stock exchanges, are stated at middle market value at the year end.
Realised and unrealised gains and losses are shown netted off in the appropriate section of the Consolidated statement of financial activities.
## **2.7 Financial instruments**
The Charity only has financial assets and liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.
## **2.8 Foreign currencies**
Monetary assets and liabilities are translated into sterling at the rates of exchange ruling at the balance sheet date. Differences on exchange are credited or charged to the Statement of financial activities in the period in which they arise.
## **2.9 Interest receivable**
Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Group; this is normally upon notification of the interest paid or payable by the institution with whom the funds are deposited.
## **2.10 Debtors**
Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.
## **2.11 Cash at bank and in hand**
Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.
Page 22
**Sisters of Charity of St Paul The Apostle**
**Notes to the Financial Statements For the year ended 31 December 2021**
## **2. Accounting policies (continued)**
## **2.12 Liabilities and provisions**
Liabilities 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.
Liabilities are recognised at the amount that the Charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.
Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Consolidated statement of financial activities as a finance cost.
## **2.13 Pensions**
The Group operates a defined contribution pension scheme and the pension charge represents the amounts payable by the Group to the fund in respect of the year.
## **2.14 Fund accounting**
The charity maintains various types of funds as follows:
## _Unrestricted funds_
Designated funds which represent amounts set aside out of unrestricted funds at the discretion of the Trustees for particular projects. The designation is for administrative purposes only and does not legally restrict the Trustees discretion to apply the fund.
General unrestricted funds represent unrestricted income that is expendable at the discretion of the Trustees in the furtherance of the objects of the charity. Such funds may be held in order to finance both working capital and capital investment.
## _Restricted funds_
Restricted funds represent grants, donations and legacies received which are allocated by the donor for specific purposes.
## _Endowment fund_
Representing those assets that must be held permanently by the Charity, comprising the Land & Buildings occupied by the Mother House. Depreciation on the properties is charged against the fund.
Investment income, gains and losses are allocated to the appropriate fund.
Page 23
**Sisters of Charity of St Paul The Apostle**
## **Notes to the Financial Statements For the year ended 31 December 2021**
## **3. Judgements in applying accounting policies and key sources of estimation uncertainty**
In preparing these financial statements, the Trustees are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from those estimates and underlying assumptions are continually reviewed.
Key sources of estimation uncertainty:
- Tangible fixed assets are depreciated over their useful lives taking into account residual values where appropriate. The actual lives of these assets are assessed annually and may vary depending on a number of factors. In assessing asset lives, factors such as life cycle and maintenance programmes are taken into account. Residual value assessments consider issues such as the remaining life of the asset and project disposal values.
- At each reporting date, trade debtors are assessed for recoverability. If there is any evidence of impairment, the carrying amount of the debtor is reduced to its recoverable amount. The impairment loss is recognised immediately in the income statement.
- The valuation of fixed asset investments is estimated by the Charity’s investment manager with reference to readily available market prices of quoted shares, traded bonds and similar investments.
- The valuation of land and buildings is estimated by experienced professional valuers commissioned by the Trustees.
## **4. Income from donations and legacies**
|**Emoluments and pensions**
Salaries
Occupational pensions
State pensions
Supplementary benefits
**Subtotal**
Legacies
Other donations and gifts|**Unrestricted**
**funds**
**2021**
**£**
163,240
855,527
1,037,926
139,935
2,196,628
63,938
107,751
2,368,317|**Restricted**
**funds**
**2021**
**£**
-
-
-
-
-
-
35,346
35,346|**Total**
**funds**
**2021**
**£**
**163,240**
**855,527**
**1,037,926**
**139,935**
**2,196,628**|
|---|---|---|---|
||||**63,938**
**143,097**
**2,403,663**|
Page 24
**Sisters of Charity of St Paul The Apostle**
## **Notes to the Financial Statements For the year ended 31 December 2021**
## **4. Income from donations and legacies (continued)**
|**Emoluments and pensions**
Salaries
Occupational pensions
State pensions
Supplementary benefits
**Subtotal**
Other donations and gifts
**5.**
**Income from charitable activities**
Healthcare fees
Education - school fees
Grants received|**Unrestricted**
**funds**
**2020**
**£**
178,732
916,234
978,890
235,706
2,309,562
83,058
2,392,620
**Unrestricted**
**funds**
**2021**
**£**
1,377,655
2,749,968
153,194
4,280,817|**Restricted**
**funds**
**2020**
**£**
-
-
-
-
-
20,983
20,983
**Total**
**funds**
**2021**
**£**
**1,377,655**
**2,749,968**
**153,194**
**4,280,817**|**Total**
**funds**
**2020**
**£**
178,732
916,234
978,890
235,706
2,309,562|
|---|---|---|---|
||||104,041
2,413,603|
||||**Total**
**funds**
**2020**
**£**
1,518,529
2,563,239
41,779
4,123,547|
All income from charitable activities in 2020 was attributable to unrestricted funds.
Page 25
**Sisters of Charity of St Paul The Apostle**
## **Notes to the Financial Statements For the year ended 31 December 2021**
## **6. Investment income**
|**Unrestricted**
**funds**
**2021**
**£**
Dividends (net) and interest (gross) from quoted investments
526,567
Bank interest receivable
-
Rent received
5,335
531,902
All income from investments in 2020 was attributable to unrestricted funds.|**Total**
**funds**
**2021**
**£**
**526,567**
**-**
**5,335**
**531,902**|**Total**
**funds**
**2020**
**£**
491,572
2,325
9,374
503,271|
|---|---|---|
||||
## **7. Other incoming resources**
|Gain on sales of property, land and other assets
Sale of goods & earned income
PTA levies, sport and culture
Coronavirus job retention scheme
Refunds and maintenance|**Unrestricted**
**funds**
**2021**
**£**
439,572
105,036
19,536
2,710
4,009
570,863|**Total**
**funds**
**2021**
**£**
**439,572**
**105,036**
**19,536**
**2,710**
**4,009**
**570,863**|**Total**
**funds**
**2020**
**£**
1,512,820
103,493
125,299
74,532
2,955
1,819,099|
|---|---|---|---|
All other incoming resources in 2020 were attributable to unrestricted funds.
Page 26
**Sisters of Charity of St Paul The Apostle**
## **Notes to the Financial Statements For the year ended 31 December 2021**
## **8. Expenditure on raising funds**
## **Costs of raising voluntary income**
||**Unrestricted**|**Total**|**Total**|
|---|---|---|---|
||**funds**|**funds**|**funds**|
||**2021**|**2021**|**2020**|
||**£**|**£**|**£**|
|Investment management fees|65,584|**65,584**|51,403|
## **9. Analysis of expenditure on charitable activities**
## **Summary by fund type**
|Education
Formation and Training
Healthcare
Social and Pastoral|**Unrestricted**
**funds**
**2021**
**£**
2,827,807
89,386
4,649,256
1,246,655
8,813,104|**Restricted**
**funds**
**2021**
**£**
68,450
-
-
-
68,450|**Endowment**
**funds**
**2021**
**£**
-
-
106,200
-
106,200|**Total**
**funds**
**2021**
**£**
**2,896,257**
**89,386**
**4,755,456**
**1,246,655**
**8,987,754**|
|---|---|---|---|---|
|Education
Formation and Training
Healthcare
Social and Pastoral|**Unrestricted**
**funds**
**2020**
**£**
2,395,674
71,306
4,417,615
1,270,468
8,155,063|**Restricted**
**funds**
**2020**
**£**
32,870
-
-
-
32,870|**Endowment**
**funds**
**2020**
**£**
-
-
106,200
-
106,200|**Total**
**funds**
**2020**
**£**
2,428,544
71,306
4,523,815
1,270,468
8,294,133|
|---|---|---|---|---|
Page 27
**Sisters of Charity of St Paul The Apostle**
## **Notes to the Financial Statements For the year ended 31 December 2021**
## **10. Analysis of expenditure by activities**
|Education
Formation and Training
Healthcare
Social and Pastoral|**Activities**
**undertaken**
**directly**
**2021**
**£**
2,247,837
89,386
3,656,823
947,028
6,941,074|**Support**
**costs**
**2021**
**£**
648,420
-
1,098,633
299,627
2,046,680|**Total**
**funds**
**2021**
**£**
**2,896,257**
**89,386**
**4,755,456**
**1,246,655**
**8,987,754**|
|---|---|---|---|
|Education
Formation and Training
Healthcare
Social and Pastoral
**Analysis of direct costs**|**Activities**
**undertaken**
**directly**
**2020**
**£**
1,909,115
71,306
3,571,530
1,010,754
6,562,705|**Support**
**costs**
**2020**
**£**
519,429
-
952,285
259,714
1,731,428|**Total**
**funds**
**2020**
**£**
2,428,544
71,306
4,523,815
1,270,468
8,294,133|
|---|---|---|---|
|||||
|Staff costs
Depreciation
Provisions and Sisters expenses|**Total**
**funds**
**2021**
**£**
**3,826,397**
**353,606**
**2,761,071**
**6,941,074**|**Total**
**funds**
**2020**
**£**
3,699,376
245,053
2,618,276
6,562,705|
|---|---|---|
Page 28
**Sisters of Charity of St Paul The Apostle**
## **Notes to the Financial Statements For the year ended 31 December 2021**
## **10. Analysis of expenditure by activities (continued)**
## **Analysis of support costs**
|Donations and gifts
Establishment
Travelling
Office, garden and grounds
Church and sundries
Governance|**Total**
**funds**
**2021**
**£**
**146,012**
**1,356,395**
**116,043**
**193,104**
**171,174**
**63,952**
**2,046,680**|**Total**
**funds**
**2020**
**£**
165,964
1,078,631
93,774
183,827
162,429
46,803
1,731,428|
|---|---|---|
## **11. Staff**
|Wages and salaries
Social security costs
Pension costs|**Group**
**2021**
**£**
**3,685,320**
**105,444**
**35,633**
**3,826,397**|**Group**
**2020**
**£**
3,537,452
122,348
39,576
3,699,376|**Charity**
**2021**
**£**
**1,745,131**
**105,444**
**35,633**
**1,886,208**|**Charity**
**2020**
**£**
1,788,161
122,348
39,576
1,950,085|
|---|---|---|---|---|
Included in staff costs are redundancy payments totaling £15,098 in respect of 3 staff who applied for voluntary redundancy in the year.
The average number of persons employed by the Charity during the year was as follows:
||**Group**|**Group**|**Charity**|**Charity**|
|---|---|---|---|---|
||**2021**|**2020**|**2021**|**2020**|
||**No.**|**No.**|**No.**|**No.**|
|Average number of employees during the year|**190**|215|**39**|41|
Page 29
**Sisters of Charity of St Paul The Apostle**
## **Notes to the Financial Statements For the year ended 31 December 2021**
## **11. Staff (continued)**
No employee received remuneration amounting to more than £60,000 in either year.
Key management personnel is limited to the trustees of the Charity. There are no employee benefits paid to key management personnel.
None of the Trustees received any emoluments or had any expenses reimbursed during the year.
All of the Trustees are members of the Congregation and in addition to their responsibilities as Trustees, are actively involved in carrying out the objects of Charity. Accordingly, all the Trustees benefited from the accommodation costs and other associated expenditure disclosed as charitable activities in the Statement of financial activities, however these benefits were consistent with those received by the rest of the Congregation and there were no financial incentives awarded to Trustees.
The Charity has arranged insurance to protect the Charity from loss arising from neglect or default of its Trustees, employees or agents and to indemnify the Trustees and officers from the consequences of any neglect or default on their part. The annual cost of such insurance was £6,664 (2020 - £6,697).
## **12. Net movement in funds**
Net movement in funds is stated after charging/(crediting):
||**2021**|**2020**|
|---|---|---|
||**£**|**£**|
|Auditor's remuneration - audit of group financial statements|**13,500**|13,000|
|Auditor's remuneration - preparation of group financial statements|**11,500**|-|
|Depreciation of tangible fixed assets|**353,553**|245,053|
|Surplus on disposal of fixed assets|**(439,572)**|(1,512,820)|
|Surplus on revaluation of fixed assets|**-**|(1,663,897)|
|Currency losses|**80,150**|80,657|
Page 30
**Sisters of Charity of St Paul The Apostle**
## **Notes to the Financial Statements For the year ended 31 December 2021**
## **13. Tangible fixed assets**
## **Group**
|**Cost or valuation**
At 1 January 2021
Additions
Disposals
At 31 December 2021
**Depreciation**
At 1 January 2021
Charge for the year
On disposals
At 31 December 2021
**Net book value**
At 31 December 2021
At 31 December 2020|**Freehold**
**property**
**£**
**20,724,818**
**40,579**
**(356,913)**
**20,408,484**
**3,906,094**
**327,295**
**(97,532)**
**4,135,857**
**16,272,627**
16,818,724|**Fixtures and**
**fittings**
**£**
**616,012**
**16,680**
**-**
**632,692**
**532,079**
**13,257**
**-**
**545,336**
**87,356**
83,933|**Motor**
**vehicles**
**£**
**225,047**
**7,900**
**(6,500)**
**226,447**
**208,604**
**13,001**
**(6,500)**
**215,105**
**11,342**
16,443|**Total**
**£**
**21,565,877**
**65,159**
**(363,413)**
**21,267,623**
**4,646,777**
**353,553**
**(104,032)**
**4,896,298**
**16,371,325**
16,919,100|
|---|---|---|---|---|
The value of freehold land, which is not depreciated, has been estimated by the Trustees at £4,004,025 (2020 - £4,093,253).
The majority of the tangible fixed assets are used for charitable activities.
A professional valuation of St Paul's Convent was undertaken by Eddisons in December 2020, resulting in a valuation of £7,000,000.
Page 31
**Sisters of Charity of St Paul The Apostle**
**Notes to the Financial Statements For the year ended 31 December 2021**
## **13. Tangible fixed assets (continued)**
## **Charity**
|**Cost or valuation**
At 1 January 2021
Additions
Disposals
At 31 December 2021
**Depreciation**
At 1 January 2021
Charge for the year
On disposals
At 31 December 2021
**Net book value**
At 31 December 2021
At 31 December 2020|**Freehold**
**property**
**£**
**20,724,818**
**40,579**
**(356,913)**
**20,408,484**
**3,906,093**
**327,295**
**(97,532)**
**4,135,856**
**16,272,628**
16,818,725|**Fixtures and**
**fittings**
**£**
**616,012**
**16,680**
**-**
**632,692**
**532,079**
**13,257**
**-**
**545,336**
**87,356**
83,933|**Motor**
**vehicles**
**£**
**214,838**
**7,900**
**(6,500)**
**216,238**
**201,160**
**11,070**
**(6,500)**
**205,730**
**10,508**
13,678|**Total**
**£**
**21,555,668**
**65,159**
**(363,413)**
**21,257,414**
**4,639,332**
**351,622**
**(104,032)**
**4,886,922**
**16,370,492**
16,916,336|
|---|---|---|---|---|
Page 32
**Sisters of Charity of St Paul The Apostle**
## **Notes to the Financial Statements For the year ended 31 December 2021**
## **14. Fixed asset investments**
|**Group**
**Market valuation**
At 1 January 2021
Additions
Disposals
Revaluations
Income net of fees
Amounts transferred in/(withdrawn)
At 31 December 2021
**Charity**
**Market valuation**
At 1 January 2021
Additions
Disposals
Revaluations
Income net of fees
Amounts transferred in/(withdrawn)
At 31 December 2021|**Listed**
**investments**
**Cash trading**
**account**
**£**
**£**
**13,730,866**
**-**
**1,057,109**
**(1,057,109)**
**(1,346,102)**
**1,918,737**
**1,095,889**
**-**
**-**
**428,924**
**-**
**(233,220)**
**14,537,762**
**1,057,332**
**Listed**
**investments**
**Cash trading**
**account**
**£**
**£**
**13,188,139**
**-**
**1,057,109**
**(1,057,109)**
**(1,346,102)**
**1,918,737**
**1,023,335**
**-**
**-**
**428,924**
**-**
**(233,220)**
**13,922,481**
**1,057,332**|**Total**
**£**
**13,730,866**
**-**
**572,635**
**1,095,889**
**428,924**
**(233,220)**
**15,595,094**
**Total**
**£**
**13,188,139**
**-**
**572,635**
**1,023,335**
**428,924**
**(233,220)**
**14,979,813**|
|---|---|---|
The historical cost of the Charity's investments at 31 December 2021 was £9,337,122.
There were no investments individually greater than 5% of the portfolio value at 1 January 2021 and 31 December 2021.
Details of the subsidiary undertakings are given in note 25.
Page 33
**Sisters of Charity of St Paul The Apostle**
## **Notes to the Financial Statements For the year ended 31 December 2021**
## **15. Debtors**
|Amounts owed by group undertakings
Other debtors
Prepayments and accrued income|**Group**
**2021**
**£**
**-**
**214,312**
**14,790**
**229,102**|**Group**
**2020**
**£**
-
283,126
15,958
299,084|**Charity**
**2021**
**£**
**-**
**81,226**
**14,790**
**96,016**|**Charity**
**2020**
**£**
295,018
119,793
15,958|
|---|---|---|---|---|
|||||430,769|
## **16. Creditors: Amounts falling due within one year**
|Other taxation and social security
Other creditors
Accruals and deferred income|**Group**
**2021**
**£**
**28,433**
**350,320**
**92,214**
**470,967**|**Group**
**2020**
**£**
27,763
296,511
91,965
416,239|**Charity**
**2021**
**£**
**28,433**
**35,265**
**92,214**
**155,912**|**Charity**
**2020**
**£**
27,763
29,701
91,965|
|---|---|---|---|---|
|||||149,429|
Page 34
**Sisters of Charity of St Paul The Apostle**
## **Notes to the Financial Statements For the year ended 31 December 2021**
|**17.**
**Statement of funds**
**Statement of funds -**
**Unrestricted funds**
**Designated funds**
Retirement and
medical
Mission and
donation
Fixed assets
Investments
South Africa
education
St Martha's Retreat
**General funds**
General funds
**Total Unrestricted**
**funds**
**Endowment funds**
Endowment
**Restricted funds**
Romania fund
St Paul's School fund
**Total of funds**|**current year**
**Balance at 1**
**January**
**2021**
**£**
**11,182,678**
**1,500,000**
**8,670,045**
**3,567,662**
**292,096**
**-**
**25,212,481**
**2,143,930**
**27,356,411**
**7,000,000**
**9,697**
**1,249,055**
**1,258,752**
**35,615,163**|**Income**
**£**
**-**
**-**
**-**
**526,567**
**-**
**-**
**526,567**
**7,225,332**
**7,751,899**
**-**
**35,346**
**-**
**35,346**
**7,787,245**|**Expenditure**
**£**
**-**
**-**
**(214,536)**
**(65,584)**
**(17,252)**
**-**
**(297,372)**
**(8,581,316)**
**(8,878,688)**
**(106,200)**
**(35,580)**
**(32,870)**
**(68,450)**
**(9,053,338)**|**Transfers**
**in/(out)**
**£**
**-**
**-**
**1,022,016**
**(2,812,868)**
**169,622**
**800,000**
**(821,230)**
**2,037,415**
**1,216,185**
**-**
**-**
**(1,216,185)**
**(1,216,185)**
**-**|**Gains/**
**(Losses)**
**£**
**-**
**-**
**-**
**1,696,639**
**-**
**-**
**1,696,639**
**(80,150)**
**1,616,489**
**-**
**-**
**-**
**-**
**1,616,489**|**Balance at**
**31**
**December**
**2021**
**£**
**11,182,678**
**1,500,000**
**9,477,525**
**2,912,416**
**444,466**
**800,000**
**26,317,085**|
|---|---|---|---|---|---|---|
|||||||**2,745,211**|
|||||||**29,062,296**|
|||||||**6,893,800**|
|||||||**9,463**
**-**
**9,463**|
|||||||**35,965,559**|
Page 35
**Sisters of Charity of St Paul The Apostle**
**Notes to the Financial Statements For the year ended 31 December 2021**
## **17. Statement of funds (continued)**
## **Designated funds**
The retirement and medical fund has been established for the purpose of providing for retired members of the Congregation.
The mission and donation fund represents an ongoing fund for donations. The Charity has a long-term involvement with a number of charitable projects, particularly in Romania and South Africa, and has made considerable donations in support of these activities. It is the intention of the Trustees to continue to support these projects and further donations are likely to be made in future years, although no legally binding commitments have been entered into in this regard.
The fixed asset fund represents the book value of the Charity’s tangible fixed assets, principally land and buildings currently held for use in activities in furtherance of the objects of the charity and the funds are therefore unavailable for use. A proportion of the fixed assets are represented by the Restricted and Endowment fund.
The investments fund represents the carrying value of investments after deducting the retirement and medical and the mission and donation funds.
The South Africa education fund represents amounts earmarked for specific purposes by the South African subsidiary, such as sports & grounds, tuckshop and fundraising.
St Martha's Retreat represents monies set aside for the planned improvement works at St Paul's Convent expected to be completed in March 2023.
## **Restricted funds**
The Romania fund represents monies collected specifically for projects in that country.
The St. Paul’s School capital fund represents grant monies received specifically for the improvements to St. Paul’s Secondary School for Girls. The fund has been transferred into the designated fixed assets fund since the original terms of the restricted grant have been fulfilled.
## **Endowment funds**
The endowment fund represents those assets that must be held permanently by the Charity, comprising the land and buildings occupied by the Mother House. Depreciation on the properties is charged against the fund.
Page 36
**Sisters of Charity of St Paul The Apostle**
## **Notes to the Financial Statements For the year ended 31 December 2021**
## **17. Statement of funds (continued) Statement of funds - prior year**
|**Unrestricted funds**
**Designated funds**
Retirement and
medical
Mission and
donation
Fixed assets
Investments
South Africa
education
**General funds**
General funds
**Total Unrestricted**
**funds**
**Endowment funds**
Endowment
**Restricted funds**
Romania fund
St Paul's School
fund
**Total of funds**|**Balance at**
**1 January**
**2020**
**£**
12,160,000
1,500,000
10,844,219
4,038,776
-
28,542,995
668,333
29,211,328
3,563,600
13,897
1,281,925
1,295,822
34,070,750|**Income**
**£**
-
-
-
-
-
-
8,838,537
8,838,537
-
20,983
-
20,983
8,859,520|**Expenditure**
**£**
-
-
(212,183)
-
-
(212,183)
(8,075,300)
(8,287,483)
-
(25,183)
(32,870)
(58,053)
(8,345,536)|**Transfers**
**in/(out)**
**£**
(977,322)
-
(1,961,991)
(110,309)
292,096
(2,757,526)
985,023
(1,772,503)
1,772,503
-
-
-
-|**Gains/**
**(Losses)**
**£**
-
-
-
(360,805)
-
(360,805)
(272,663)
(633,468)
1,663,897
-
-
-
1,030,429|**Balance at**
**31**
**December**
**2020**
**£**
11,182,678
1,500,000
8,670,045
3,567,662
292,096
25,212,481|
|---|---|---|---|---|---|---|
|||||||2,143,930|
|||||||27,356,411|
|||||||7,000,000|
|||||||9,697
1,249,055
1,258,752|
|||||||35,615,163|
Page 37
## **Sisters of Charity of St Paul The Apostle**
## **Notes to the Financial Statements For the year ended 31 December 2021**
## **18. Summary of funds**
## **Summary of funds - current year**
||||||||||||**Balance at**|
|---|---|---|---|---|---|---|---|---|---|---|---|
||**Balance at 1**||||||||||**31**|
||**January**||||||**Transfers**||**Gains/**||**December**|
||**2021**||**Income**||**Expenditure**||**in/(out)**||**(Losses)**||**2021**|
||**£**||**£**||**£**||**£**||**£**||**£**|
|Designated||||||||||||
|funds|**25,212,481**||**526,567**||**(297,372)**||**(821,230)**||**1,696,639**||**26,317,085**|
|General funds|**2,143,930**||**7,225,332**||**(8,581,316)**||**2,037,415**||**(80,150)**||**2,745,211**|
|Endowment||||||||||||
|funds|**7,000,000**||**-**||**(106,200)**||**-**||**-**||**6,893,800**|
|Restricted||||||||||||
|funds|**1,258,752**||**35,346**||**(68,450)**||**(1,216,185)**||**-**||**9,463**|
||**35,615,163**||**7,787,245**||**(9,053,338)**||**-**||**1,616,489**||**35,965,559**|
|||||||||||||
|**Summary of funds - prior year**||||||||||||
||||||||||||**Balance at**|
||**Balance at**||||||||||**31**|
||**1 January**||||||**Transfers**||**Gains/**||**December**|
||**2020**||**Income**||**Expenditure**||**in/(out)**||**(Losses)**||**2020**|
||**£**||**£**||**£**||**£**||**£**||**£**|
|Designated||||||||||||
|funds|28,542,995||-||(212,183)||(2,757,526)||(360,805)||25,212,481|
|General funds|668,333||8,838,537||(8,075,300)||985,023||(272,663)||2,143,930|
|Endowment||||||||||||
|funds|3,563,600||-||-||1,772,503||1,663,897||7,000,000|
|Restricted||||||||||||
|funds|1,295,822||20,983||(58,053)||-||-||1,258,752|
||34,070,750||8,859,520||(8,345,536)||-||1,030,429||35,615,163|
Page 38
**Sisters of Charity of St Paul The Apostle**
## **Notes to the Financial Statements For the year ended 31 December 2021**
## **19. Analysis of net assets between funds**
## **Analysis of net assets between funds - current year**
|**Unrestricted**
**funds**
**2021**
**£**
Tangible fixed assets
9,477,525
Fixed asset investments
15,595,094
Current assets
4,460,644
Creditors due within one year
(470,967)
**Total**
29,062,296|**Restricted**
**funds**
**2021**
**£**
-
-
9,463
-
9,463|**Endowment**
**funds**
**2021**
**£**
6,893,800
-
-
-
6,893,800|**Total**
**funds**
**2021**
**£**
**16,371,325**
**15,595,094**
**4,470,107**
**(470,967)**
**35,965,559**|
|---|---|---|---|
## **20. Reconciliation of net movement in funds to net cash flow from operating activities**
|Net income/expenditure for the year (as per Statement of Financial
Activities)
**Adjustments for:**
Depreciation charges
Gains/(losses) on investments
Dividends, interests and rents from investments
Gain on sale of fixed assets
Decrease/(increase) in debtors
Increase/(decrease) in creditors
**Net cash used in operating activities**|**Group**
**2021**
**£**
**430,546**
**353,553**
**(1,696,639)**
**(531,902)**
**(439,572)**
**69,982**
**54,728**
**(1,759,304)**|**Group**
**2020**
**£**
(38,828)|
|---|---|---|
|||245,053
552,812
(503,271)
(1,512,820)
(61,978)
(368,594)|
|||(1,687,626)|
## **21. Analysis of cash and cash equivalents**
|Cash at bank
Cash in investment portfolio
**Total cash and cash equivalents**|**Group**
**2021**
**£**
**4,241,005**
**1,057,332**
**5,298,337**|**Group**
**2020**
**£**
4,338,256
744,096|
|---|---|---|
|||5,082,352|
Page 39
**Sisters of Charity of St Paul The Apostle**
**Notes to the Financial Statements For the year ended 31 December 2021**
## **22. Analysis of changes in net debt**
||**At 1**||**At 31**|
|---|---|---|---|
||**January**||**December**|
||**2021**|**Cash flows**|**2021**|
||**£**|**£**|**£**|
|Cash at bank and in hand|**5,082,352**|**(841,347)**|**4,241,005**|
## **23. Pension commitments**
The Charity operates a defined contribution pension scheme, the assets of which are held separately from those of the Charity in an independently administered fund. The pension cost charge represents contributions payable by the Charity and amounted to £35,633 (2020 - £39,576).
The pension liability and expense is allocated wholly to unrestricted funds on the basis that all staff costs are met from general funds.
## **24. Related party transactions**
Following the sale of one of the Irish houses, as at 31 December 2020 an amount totaling £295,018 was due to the Charity from its Irish subsidiary, Sisters of Charity of St Paul The Apostle (Republic of Ireland).
In 2021, a fixed term deposit held by the Mother House of £224,963 was lodged into the Irish Congregation's bank account, and therefore was recorded as income in the Irish subsidiary's financial statements.
The Irish congregation subsequently advanced £943,463 to the Mother House. Accordingly, the amount due from the Charity's Irish subsidiary at 31 December 2021 became £Nil, with the balance of the transfer of £648,445 being recorded as income in the Charity's Statement of financial activities.
Page 40
**Sisters of Charity of St Paul The Apostle**
## **Notes to the Financial Statements For the year ended 31 December 2021**
## **25. Principal subsidiaries**
The following were subsidiary undertakings wholly controlled by the Charity:
|**Names**||**Charity registration**|**Charity registration**|**Included in**|
|---|---|---|---|---|
|||**number**||**consolidation**|
|Sisters of Charity of St Paul The Apostle (Republic of Ireland)||20011598||Yes|
|Sisters of Charity of St Paul The Apostle (South Africa)||PBO 18/11/13/2860||Yes|
|The financial results of the subsidiaries for the year were:|||||
|**Names**||**Income**|**Net**|**Net assets**|
|||**2021**|**movement**|**31**|
|||**£**|**in funds**|**December**|
||||**2021**|**2021**|
||||**£**|**£**|
|Sisters of Charity of St Paul The Apostle (Republic of||**634,968**|**(310,300)**|**615,829**|
|Ireland)|||||
|Sisters of Charity of St Paul The Apostle (South Africa)|**2,893,742**||**230,070**|**1,643,988**|
The financial results of the subsidiaries for the year were:
The net assets of both subsidiaries wholly represent unrestricted funds and are therefore included in the total unrestricted funds shown in note 17.
Page 41