REGISTERED CHARITY NUMBER: 21S011 Report olth* Trustees and Flnancial Ststements forthe Year Ended 30 June 2023 for Sacred Hoart Fat￿[$ Trust SB&P Chartered Accountants & Statutory Auditors Oriel House 218 Oriel Road Boolle MètsÈyside L20 7EP Sacred Heart Fathers Trust Cont¥nts of the Flnanclal Statsments for the Y•ar Enfled 30 June 2023 Page Report ofthè Trust 1 to 7 Report ofthe Independent AudltOFS 8 to 10 ststement of Financlal Aetlvlllè$ Bal4nce Sheet 12 Cash Flow Ststsmènt 13 Notes to thè Cash Flowstatement 14 Notes to the Flnanclal Statements 15 to 24 Sacred Heart Fathers Trust Report of the Trustees for the Year Ended 30 June 2023 The trustees p￿sent tt)&r ￿pOrt wrth the ffnaTKi81 slaternents ol the charity for the year ended 30 June 2￿. The trustees have adopted the provIs￿n3 ol Accounting and Reporting by Charits"es". Statsrnent of Recommended Practics applicable to charities prepariNJ their accounts In accordan￿ wth the Finawial Reporb"ng Stsndard appliCa￿e in the UK and Republic of Ireland IFRS 1021 leffective 1 January 20191. OBJECTIVES AND ACTIVITIES Objectives and aims The principal objective ollhe ¢harity is the acfvancemenl of religion. This includes". The pastoral care of individuals and groups. To promde pla￿$ ol spiritual retrèa( courses in personal (lgvelopment and religious educAlion Assistan￿ wth the owoing education ol children and young adu The relief of povety and sicknèss al home and abroad. To assist in the rdiel of povety and its cOnsequen￿S in a￿3$ of mission of the Congregation and in areas of natural disasters. Welcoming studènts from poorer countrie5 to study at aC￿edited eduG4ts"on81 facilities in the UK and I￿rand. Welcoming sludents to study al recognised English language schools to ena￿e thtr international devdopment of the Congregation. Providing places of retreat open to all. fe- long care for Ihe members. To promote the spiritval. moral, and intellectual wellbeing of the Member5 01 the Congregation. To provide &0rwces and nursing care for the sick and elder￿ MeM￿r5 of the cc￿ gregats'on in accordan￿ wlh the core values and ethos of the Congregation. Page 1 Sacred Heart Fathers Trust Report ofthè Tru$ts¥s for the Year Ended 30 Jun• 2023 ACHIEVEMENT ANO PERFORMANCE Charitable activities The main object for which the charity is established is to advance religh)n through the educationd. soaal and chaiitab18 works carried on by the Congregation ol The Priests ol tre S8cred Heart of Jesus in England and Wale5. Swtland, Ireland and Ihroughout the World in aC￿rdan￿ with the ethos, mission and philosophy of Father Leo Jo Dehon and to provide lor Members ol the cong￿98t[On during their lives. The Sacred Heart Fathers continue lo offer support for students. 8dult5. retreats, quiet times, spiritU81 direction a accompanirnenl for individuals and groups in various Socations throughout Great Britain arKI Ireland. ey its very nature the Congregation 15 an awslolic ir￿ll￿te., and so we readily plaTr ourselves at thè sewice of the Church in Its varfous pastoral works. The chaiity provides farililies where Indimduals and groups can gather for penods of prayer, silen and recollection. It also promdes for the rdigious needs ol paople by providing rdtgious $em￿S and offerir¥J $piritual guidance. The administrative Cèntre for the group is at St John'5. Slockp)rt, where, as wsll as offi￿5 for Provin Administration, provision Is mad¢ for older members, assisted by the servI￿S ol the St John of God Hospitaller Se[vi￿. The Sacred Heart Fathers Mlnesse5 to the Christian faith In both the loc& and wder community through the provision ol worship and prayer spa￿. While St John's is the adminislralive ￿ntrt and a residen￿ for the elderly, the facilit￿S ol the house are aso used to enable people lo participate in liturgies and gathenngs for prayer. Courses on faith devdopmenl are offered and groups are able to attend for day retreats or day5 01 recollection. At St John's, the Sacred Heart Fathers also provide for the human development ol people by promding courses on psychology and spirrtuality. A counselling service is J50 provided there. visth.ng mernbers of the Congregath)n from abroad are also welcomèd * St John's. Mernbers come for meetings of the sac￿ Heart Fathers and have the possibTlty to spend scmne time ol Sabbat￿al there. St John's is also the setting for tre Promots'ons offi￿ - Ihe ftjnction ol which is to proTh)te the spirituality of the Sacred Heart and lo keep in contact wth benefadors. Various mailings are sènt out during the year to benefactois during the year. A letter is written at least fv￿ce a year informing benefactors ol re￿nt news and events and invit'ng them to make a contribution to the wtsrk of the Sacred Heart Fathers. It is notable that the age ol benefaGtors is increasing and consequently there are less people on the m8iling list. The trustees wll look 81 ways to expand our list of benefactors. The Sacred Heart Fathers greatly value their benefadors and their generous contributl0ll5 In September 2022 the Sacred Heart Fathers handed the administration ol the parish of St Joseph'5. StockporL back to the Di￿eSe of Shrewsbury. The Di0￿$an Bishop wanted to develop a new ministry for his DI0￿Se the￿. cur￿n￿Y, the Order administers the parish of St John Vianney on behalf ol the Archd10￿Se of Dublin In the pastoral care ol Ih05e entrusted to us we aim to give concrete expression to our $piriluality and develop the life of the Church. In the pansh thè Sa¢xed Heart Fathers minister to peO￿e ol all age group5 providing religious servi￿, pastoral accornpaniment and ena￿Ing people to participale in Iilurgitrs. Vvhere possible, the Sacred Heart Fathers assist in ott)èr parishes in England and Wales, Scottand and Ireland. The Saued Heart Fathers are committed lo provide support and assistan￿ in the safeguarding ol children and vulnerable adult5 The Trust implements be51 practice in safeguarding, ènsuring that children and vulnerable adults are sale and wdl looked after while in the care of any ministy of the Congregation. The Charity is commitied to best practi￿ in safeguarding. 11 is affiliated to the national Religious Life Safeguarding servi￿ In England and Wale3, the N*"on81 Bowd for Safeguarding Children in the Catholic Church in Ireland and The Scotb'sh Catholic Safeguarding Standards Agency. Jt also has the serVi￿S of a safeguarding co-ordinator and has a designated liaison person. rnernbers coming from abroad lo engage in any public tninistry rnust prowde a testimony of syltsbility. agree to poli vetb.ng and cornply with all safeguarding policies and procedures. The Sacred Heart Fathers are committed to properfy resour￿ and finan￿ any safeguaiding inth"ab"va. The cOngr￿atIOn continues to d8v81op our ministy at Smilhstone House. Kilwnning, Ayrshire, Scotland. The community organise reltqious serviTrs and adult spiritual formation courses. Adult faith formab'on courses and days ol retreat are given at VariOUS time5. It is possible for people lo spend time here undisturtrEd, in silence and tranquillity. F8cilities here have been developed and improved to provide better Sp￿ for visitors on retreat or attènding religious services. A separate. totally sdf-contained, buiklirvj was built there in 2022 where indiwdLJals Can stay for an extended period wlhout being (Sisturbed - to eXFErIen￿ silen￿, prayer and refreshment. This pl7￿ for ￿len￿ and reflection is open to all people who seek personal Ignewal and silen￿. The building of this facility was the largest spend on buildings during the period - but it is a facility th81 wll benefit many people. Wè ￿11 wntinue io use our lacilits.es for prayer and retreat- both lor individuals and groups. At Smilhslone House the community aso seek8 to Fromote the protection ¢Y tre natural environment through education and encouraging public awareness on the importsnce of the protection of the enmronmenl. Mwnbers are committed lo the philosophy and pffjctice oulined by Pope FrancL% in his Encydical. Laudato Si lour common home is like a sisterwth whom we share our lifel. Page 2 Sacrèd Heart Fathers Trust Report of the Tru¥tees lor the Year Ended 30 June 2023 The community at Inchicore Road, Dublin, Ireland, is the main fomation community and wethffles new caThJidates to the Congregation. It 15 also a residen¢e for dderly ￿tIred member5. A5 the ￿ntre ol formation il a150 welcomes students from thè Congregation who come from abroad lo study. It *so wel¢omes rnembers for sabbats"rA. English Language and renewal. The cornmuryty welcomes indiwdu81s and grwps for pèrsonal devdopment and spiritual growth. To adapt lo thargitu neass ol the Churth and the whder community. members are eno)Jraged to tjevelop wder skills Particular￿ in counselling and psychotherapy. This ministy is available to all peO￿e and is an expression of our desir& to meet the needs of people in a changing world A counselling and spiritual accornpanirnenl SeN1￿ is also provided at Inchicore Road. To piovide for the care of the elderly two staff are employed. Cons8quenVy. the ornmunity at InchSGor$ Fload has a higher wage bill than any other communty. SirKe members atteThJ various academic and training cout5es it also has higher spending in this area. Vvhen the community is unable to wovide alovd of appropriate care, indiwdual sid( and elderty Members txn become resident in a nursing home. Depending on the needs of the individua, this can be on a lernporary or permanent basis. This situation is cor6lantly under ￿vieW. 1115 our intention that all mernbers should be able to stay in the Gommunity for as long as p)ssible. The Trust supwrts mernbers ol the Sacred Heart Fathers who work in sorne of the poorest parts of Europe, e.g. Moldova l Transdnièslèr and across the worfd in the Philippines and Cameroon. The fvnd for Moldova was set up after the visit ol the Pro%4naal to the area 30rne years ago - and is a response to the extrem8 povety ol people there. The fund is used lo help the Congregation develop its spiritual and so(i81 Mission in Moldova provKling material aid and also helping to SUPF)Ort the pastoral work of the C￿grega&'0n in Moklova. Tho funds will be used to alleviate poverty, give support to local crxnmunibes. rxoviding adult and youth formation, and provide part contribution towards the building of pastoral centre and churches, local rnedical ￿lltreS and so on. The project is part of contribution of the Congregation to the overall rnission ol the Churth in Moldova. The Trust also made a conlributh)n lo the work of the Congregation in Cameroon. This is a sign international collaborabon within the Order and helps to fvther the mission of the Sa¢red Heart Fathers. In line Catholic sorial teaching, and with Ihe thinking ol Pope Frands, the tharity will respond in the rel￿f of povetiy and ils consequences both at home and in areas of the mission ol the Congregation and in areas of natural disasters. Where appropriate the Charity will li&5e with other bodie5 invofved in charitable works having 8 main object similar to those ol the Sa¢red Heart Fathers Trust This is an expression of the philosophy and ethos of the Sacrod Heart Fathers. Each cDmmunity uses volunteers in varicxJ$ c3p8catEs. Since Covid 19 there has be￿ a decrease in those Volunt￿rIng. The roles now include assisl'ng in administiation. cariro for the siek, eldèrly 8nd disabled linclLKling some volunteer retired nurses). housekeeping and deaning. Wthilst the volunteers. work is greatly appreciated it is not appropriate to plac8 an econornic value on It and il 15 therefore not induded in the Statement ol Financial Actsvities ke all Religious Orders in Europe the Congregation ha5 seen a decline in membership In r8cenl years- mainly due lo the death ol elderfy members. However. priests and brothels trom other parts of the Order have ¢orne to live and minister here on a permanent or extended bass (always in compliance wlh visa regulations ￿en ￿qUIred). The international leadership of the Sacred Heart Fathers In Rorne is keen to promote tre exchawe ol appropriatety qualified personnel. Exthan9e of persomel is always uncler r￿eW and all rnust compiy wlh pdio vetting and safeguarding policy. Part of the work of the Charity is to promote vocations and ongoing formats"on. TtYS 15 to edwate and train bott) current and new Members of the congregation. In recruth.ng new mernbers, the Charity hope to carry on ils work. In providing ongoing formation lor continual professional development) to current members the Charity aims to maintsin professional standard of ￿rViCe. The Order wll continue to ltyjk for new ways ol fvnd rasing during the year and seek to attract new donors. 11 will also continue tr) dèvelop our promotions resources and material. It wll continue to devdop links with other r￿10￿S of the Congregation to foster the exchange of personnel. 11 wll 81so continue to support tt)e education of fijlure priests and brothers for the Order. TIE Trust will ¢¢ntinue to use ils resour￿5 for public benefit. The Province wll ¢￿tinUe to build on the work alre8dy beirrfj and seek new and creative ways to promote and d6v6lop the work of the Trust. FINANCIAL REVIEW Investsment policy and objectives The Investment Portfolio Is sutsljy dNersified to reduce volab"lty. The charity's bng term time horizon and the key investment iisk is inflation. The Trustees wish to target a total ￿tUrn objective of inflation plus 4Yo over the long term and selected the Charty Multi-Asset Fund in order to achieve this. The trustees would also like a reguLir, sustainakAe i￿o￿e frorn their investments ar¥J have thosen to invest in tho distribut￿n units target a 4Vk distribution per annum. The ¢harity is able to tolerate volatility ol capitsl value in line wth pursuit of Ihe long term investment objective, the prèservation ol the real capital value There are no antiupated capital cash fiow needs and the Charity has the capaaty to absorb shortterrn losses withoLrt prejudicing the long tem sustainatility. Page 3 Sa¢￿￿ Heart Fathers Trust Report of the Trustees for the Year Ended 30 June 2023 FINANCIAL REVIEW Restrves policy The total chaiity funds have dewsed frorn £11.4m to £11.Om during the year. Induded wthin the total fvnds are restricted funds of £0.20m 12022- £0.20ml. Free reserves are defined as unrèstiicted reserves represented by the total of current assets less creditors. The free reserves at 30 June 2023 were £2.59m12022- £2 75ml. TawiNe assets for use are exduded on the grounds that they are used operab'onalty and their disposal may adversely impact on the chaity's ability lo deliver its aims. The Pen&on Augmentation fvnd represented by £6.2m inve5trnents is also excluded on the grounds that the charity is obliged lo seek a return on capital to c(Yrtribute towards the ongoing personal upkeep and costs tsf elderw and rets'red priests The charitys reserves poliw ￿CognISeS the requirement tts mainta'n a level of free reserves th* provides the followng to support ils varioLlS charitable activities." Working ca￿tal Funding of capttal projects that maintain, improve and develop the charivs portfolio ol ￿IllIng3 aThl activities. Available funds that rnight be required in the event of emergencEs and unforeseen events. Betrween 5 and 7 years running expenses at a level of approxirnalely £400,000 a￿ a guide forthè58 pufFKJses. On thi5 basis actual free reservès nsed lo be betrNeen £2m and £2.8ffl As well as managing fm rèserves the charity rnonllois cash flows carefvlly to ensure that suffiuent fvnds are available to meet orooing operats'ng aThJ caprtal requirements. At the eThJ of the year unre3trictaY cash at bank was £3.3m 12022 - £2.eml Thè trustees review and rnonitor reserves on an annual basis and where they hyents'fy reseNes rise or frdll significant above or bdowtheir target. they consider il corrective acbon is necessary. The Provincial Bursar reports regularfy to the Trustees and r8caNès financial reports bi-annually frorn dl tre o)mmunities which are Ihen reviewed. Cash R•￿rvo$ and Invesknents Frorn the balance sheet on page eknn ol this report it can be seen that there was a dec￿ase in thè value of the trust from £11,437.25210 £11.026.394. Cash held in bank aC￿ntS and in hand has marginally inuoased Irom £3.(K17,360 to £3.468.680. The land at Redbouine in Hertffordshire ￿MainS lèt out as fami land. We renegth.aled the rent a fw years ago but we continue to bok into ways that this resource can improve its iètum for the trust Pa￿4 Sacred Heart Fat￿1$ Tm5t Report of th• Trustees for the Year Ended 30 Junè 2023 STRUCTURE, GOVERNANCE AND MANAGEMENT Structure The Congregab'on ol the Priests of tre Sacred Heart ISCJI was founded in FranTr, in 1878. In Great Britain and Ireland the Congregation is known as the Sacred Heart Fathers. In other part5 of the wod¢J its mernbers are thown as the Dehonians in reference to the Founder, Fi. Leo John Dehon. The Sacred Heart Fathers is a Religious Congregation ol men within the Roman Catholic Chuich 1113 an international Religious Congregation ol over 23CO priests and brothers living and woikin9 in 42 countries in ffve Continents. The Congregation Is dwided into Provin￿$, Regions and Districts. The Great Brrtain Ireland Province cornprises England, Scotland 2nd Ireland The Congregation first CAme lo England in 1936, to Soolland in 1970 and to Irdand in 1978. Wlhin G￿at 8ritain and Ireland Ilhe GBI Prown￿l rt operates as a charitable trust with a single governing body, n8mdy the Provinaal Council. which manages the group according lo Ihe trust deed of the Chafity 8nd the Canon law ol the Churth. The Provinaal Counal are the tru5tee5 of the charity togethèr wth the bursar. There are wular rneetirKJs of the Provincial Council through￿1 the year. Finanaal matters are discyjssed ty a finance committee and by the trustees at designated meet'ngs. The Sacred Heart Fathers operate in accordarKe with th￿r Con5btLrtions and also the Provincial Directory of September 2014. Risk Management The trusteès 8￿Pt their responsibllty to i%rry out to respond lo a regular review of the risks to which the Charty is exposed. By means of aLJdits and expert guidan￿ they seek to ensure that appropriate finawia controls ar& in pla to provide reasonable assuranGe against error and fraud M8nagement recommendations arising frorn the annual audit are fully discussed at a finan￿ meets.ng of the trustees and whenever thanges are requi￿ to be rnade these are i[n￿eMented as fully arKI quidily as possibk. Publ1¢ Ben•fit The trustees 8cknovAedge the Charity Commission's guidan￿ on Public Benefit and have taken this into account when remewing and planning their actiwties. In Ihwr planning for 2072 - 2023 Ihey wnsidered in pa￿cUlar. how best lo use the resources ol Chanty in respect ol the duty ol care owed lo the older membèrs. The agreed the improvement of some facilities at IwhKore Road to piovide better Ca￿ of thè sick members. The community al Inchicore Road welcomed more members for Study and ongoing formatr'on enabliNJ continuing professional developnenl 8ss8ntial to our ministy to people. They also approved the development tsf facilitie5 at Smithstone House lo develop our ministry a￿j offer people modern comfortable Spaces for retreat, recollecbon, prayer and renewal. They agieed the irnprovernent ol some facilities at Sl Jom's, StockKX)rt. to c¥eate an apwokM"ate sp￿e for counsellirKJ and group meetings. On.Going TralnSng I Prof•ssional Development New trustees ara given induction and training as appropriate and have beèn provided wrth rdevant materkql. ICC3. & CC35. from the Chanty commissi(￿ for England and Wales) The bu15ar attends courses and conferen￿5 designed to keep him up-ltrdate with best practice in Britain and Ireland. He has professional assistan￿ from a firm ol thartèr8d 8ccDuntants wth understanding of the Charity sector. The bursar is 8 rnember of the ASs(￿latIon of Province Bursais IAPBI and participates in professional developme FKogrammes nab"onally and internationally. REFERENCE AND ADMINISTRATIVE DETAILS Registered Charfity nurnber 21S)11 Principal address St John's 266 Wellington Road North stockport Cheshire SK42QR Page 5 Sacred Hoart Fathers Trust Report of the Trustees forthe Year Endgd 30 June 2023 Trustees Reverend H Hanley SCJ Reverend J Kelly SCJ Reverend J Matthews SCJ I￿SIgned 1.3.231 Reverend R Mann SCJ Reverènd P Murphy SCJ I￿sIgned 1.3.231 Reverend M SZ8￿ SCJ lappointed 1.3.231 Reverend M S Temgo SCJ (app￿nted 1.3.231 Audltors SB&P Chartered Aco)untants & Statutory Auditors Oriel House 218 Orpl Road Bootle Merseyside L20 7EP Prlnclpal Soll¢ltt>r Royds RDW 2 Crane Court Fleet Street London EC4A 2BL Prin¢lpal Bank Lloyd5 Bank Regent Street Wrexharn LL11 1SE Reglst¢red in Scotland SC (41571 Reglstered In Irgland CHY7096 STATEMENT OF TRUSTEES. RESPONSIBILITIES The trustees are respon&ble for preparing the Report of the Trustees and thè financial statements in aC￿rdanCe wth law applicable to charities operating in England and Wales. and in Scotfand, namely the Charities Act 2011, Charity (Accounts and Reports) Regulations 2008. the Charities and Trustee Inveslrnent (Scotland) Act 2005, Charities Accounts (Scolandl Regulats'ons 20(6 and the provisions of the trust deed requires the trustees to prepare financ￿1 ststements for eath finanaal year which give a true and fair view of the state of affairs of the charity and of the incoming ￿SOU￿5 and application of r8source5. induding tte income and expenditure, ol the tharity for that period. In prepariro those financial Statements, the tiustèes are required to.. sdect suitable accounting policies and then apply them consistsnly., observe Ihe mèthods and principles in the Charity SORP., rnake judgements and estimates that are reasonable and prudent., prepare the financial statements on the going con￿rn bas15 unless it is inappropriate to pr85ume that the charty will continue in busness. The trustees are responsible for keeping pioper accounl'ng records disclose wlh reasonable aCoJr￿Y at any time the financial posth.on of the charity and to enable thern to ensure that the finarrid statements comply with the Chaiib"e5 kl 2011, the Chaiity (Accounts and Reports) Regulats'ons 2￿8, the Charities and Trustee Investrnenl (Scotlandl Act 2005. the Charities Accounts (Scollandl Regulats"on5 20CE. and the provi&ons ol the tiust deed. They are also responsiblè for safeguarding the assds of the charity and hen￿ for 18kirg reasonable steps for the prevention and dete(*ion ol fraud aThJ other irregularity'es. Page 6 Sacred H•art Father¥ Tr[￿t Roport of the Trustees for the Year Ended 30 June 2023 2511112024 Approved by order olthe board oflrLths on................................. . and s4gned on its trehalf by". 4¢5 Reverend J Kelly SQJ- Trustee Page 7 Rèport ofthe Indewndent Auditors to th• Trust•è$ of Sacred Hèart Fathers Trust Opinion We have audited the fina￿la4 statements ol Sa￿d Heart Fathers Trust Ithe'charity'l for the year ended 30 Junè 2023 which comwse the Statement ol Finanaal Actiwties, the BalanTr Sheet, the Cash Flow Statement and notes to the financial stslements. induding a summary of sigrufrant accounting pdicies. The financial repotting framework that has been applied in their preparation is appli(2ble law and United ￿n9￿orn Accounting Standards (United Kingdom Generally AcLepte(J Accounb'ng Practice). In our opinion the fjnancjal statements". gNe a true and fair view of the state of the Charty's affairs as at 30 June 2023 ol its incoming resources 8nd application of resour￿$, for the year then ended, - have ￿en properly preparerl in accord8nTr wth United Kingdom Generally Accepted Accounting Pradrce., and have been prepared in accordance wth the requirements ol the Charities Act 2011 and the Charities and Trustee Investment IScotLandl Act2005 and regulthon 8 of the Charities Accounts Iscotlandl Regulatic￿S 20C6. Basls for oplnlon We conducted our aud￿ In ￿COrdan￿ Internat￿nal Standards on Audi*"ng (UK) IISAS IUK)) and ap￿rtable law. Our responsibilities under those standards are further described in Auditors, responsibilities for the audit of the financial statements sedion ol our repotL We are independent of the charity in accordance wrth the ethical requirements that are relevant to our audit ol the finanaa Statements in the UK, including the FRC'S Ethical Standard, and wè have fulfilled our other ethi{31 responsibilities in accordance with these requirements. We believe that the audt evidence we have obtsined 15 suffiaent and approyiale to provide a basis foi our opnion. Conelusions relating to golng cone•rn In auditing the financial statements, we have concluded that the trustees. use of the going concem basis ol accountwg in the preparation of the finanoal statements is appropriate. Based on the work we have performed, ￿ have not idenb'fied any material Un￿rtaIntIeS relats.ro to events or rKlitions that, individualty or collectively. may cast $1gnificant doubt on the charity's ability to continue as a going conc6m for a period of al leasttwelve tnwlhs frorn when the finanual statements are authorised for issue. Our responsibilities and the re51x)n￿bIlitIeS of the trLlStees Te5pect to 9￿￿j ￿¢eM are described in the relevant sections of this report. Other irrformation The trustees are responsible for the other inlotrnab"on. The other infomaknon comprises the information indudad in the Annual Report, other than the finanaal statements and our Report of the Independent Auditors thereon. Our opinion on the finanual staternents does not o)ver the other infomats.on and. ex￿p1 to the extent otheNi%e expi￿VY stated in our report. we do not express any form of a55Ul8nTr conclusion thereon. In connection wth our audit of Ihe finar￿la1 ststements, our responsibility is to read Ihe other infomation and in ddng so. consider whether the other inf(Kmalion is materially inconsislenl with the finarrial statements or our kn￿edge obtained in the audit or othewse appears to be materially misstatad. If we identify such material Inconsislen(ies or apparent material misstatements. we are required to detemiine whether tt)Is gives rise to a material misstatement in the financial Statements themsdves. If. ba￿d on the work we have performed, we conclude that there is a material misstatement oflhis other infumation, wè are ￿qUIr￿ to rewrt that fact. We have nothing to report in this regard. Mattèrs on which we are requlred to report by exceptlon We have nothing to report in respect of the followng rnatters ￿ere the Charitses (Accounts and Reports) R¢gulalDns 2C4)8 and the Chanties Accounts (Scollandl Regulations 2006 requires us to repcxt to you if, in our opinion.. the informats'on given in Ihe Rep￿t of the Trusiees is inconsistent in any material ￿spe4 with the finarrial statements." ( - sufficient accounting records have not tEen kept., or - Ihe finanii81 stslements are not in ag￿emeNt with the a￿oUntIng iecord5 and return4 or -we have not r8caived all the information aThJ explanations we require for our aud Page 8 Report ofthe Independent Auditors to the Trustees of sacr￿ Heart Father8 Trust Re8ponslbllltles of trustee5 As explained mue fully in the Statement of Trust8e3' Responsibilities. the trustees are ￿sponSible for the preparatic of the financial statements which give a knje and frdir view. and for such intemal control as the trustees determine is ne￿SSary lo enable the preparatson of financial statements that are free from material rnisstatement, whether due to fraud or error. In preparing the financial statements, the tDJstees ar¢ reskY)nsible for assessing the charity's ability to COnth￿ as a going con¢ein. disclosing, as applit>ble, rnatters related to going concem and usin9 the going concem basis of accounting unless the trustees either intend lo liquidate the ¢hanty or to Trase operats"ons. or have no reaistic lemats've but to do so. Our responslbllities forthe audit of the fjnancial statements We have been appointed as auditors under Sectlon 144 01 the Chari*"es Act 2011 and under Section 4411lc of the Chanlie5 and Trustee Investment (Scollandl Act 2005 and reFA)rt in accordan￿ wlh those Acts and relevant ulatK)ns made or having effect t￿*￿under. Our objectives are to obtain reasonable assuran￿ about whether the financial stalernents as a whde are fr8a from material misstaternenl, whether due to fraud or error, and to issue a Rewrt of the Independent Auditors that indudes our D￿nIon. Reasonable assuran￿ is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAS IUK) wll alway5 detect a material misstatement when it exists. Mis5taternenls can arise frorn fraud or error and are considered material if, individually or in the aggregate, they could rè3$¢nably be expected to influenTr the economic dwsions of users taken on the ba&s of these financi81 statements. The extent lo which our ￿￿0￿ureS are (xpable ol de￿tIng irregularities. including fraud Is detailed below.. Thè objecbves of our audit aro to identify and assess the risk$ ol material misstatement of Ihe finanaal statements due to fraud ￿ error." lo obtain sufficient appropri8le audit eviden￿ regarding assessed 1Ssks of material misstatement due lo fraud or error, and lo respond appropriately to those risks. Owng to the inherent limitations of an audit. there is an unavoidable risk that material mis5talements in tha financial 5taternents may not b8 detected, ev￿ though the audrt is property planned and performed in accordance with the ISAS IUKI. In identifying and assessing risk of material misstatement in respect ol itr£gularil'es, induding fraud and nonr vehicles Cornputw 4uipment 2% on c05t 5% on reducing balan 25°k on cost 25% on reducing balance Investment property The investment propety has been valued at £50,QCKJ by the board of truste¢s. Taxatlon The eharty is exemptfrom tax on its charitable a￿v￿e¥. Fund aecounting Unreslricled funds (xn be used in accordan￿ wth the ch8ritable objectives at the discretion of the trustees. Designated funds cornprise unrestricted ftJnd5 Set aside by the trustees for particular purposes. The trustees operale each comrnunity and projecl ol the charity a5 a separdte designated fund. Page15 conbnued... Sacred Heart Fathers Tru$t Notes to the Flnan¢ial Statements- eontrnued for the Year Ended 30 June 2023 ACCOUNTING POLICIES- ¢ontinued Fund accountin9 Restricted fiJnds can only be used for paiti¢ular restricted purposes wthin the objects of the charity. Restnthons arise when speafied by the donor orwhen funds are raised for parhcular restiioted purp03es. Further ex$￿ana￿"on of the nature and purpose of each fund is induded In the notes to the finanoal statements. Fund transfers OCLur knannually in the charity to reall(Kaltr fin8TTrGid resources btheen the designated fUr￿S and the gefftral fund ol the charty. Fund5 ra13ed or donation5 authorised by the trusteès. for the restricted activities are also transferred. Forelgn eurr8ncies Assets and liabilities in foreign cu￿ncle$ are translated into stwling al the rates of exchange r￿Ing 81 the balance stEet date. Transa¢#ions in foreign currencie5 are tran￿ated into sterling at the rale ol exchange ruli at the date of transacbc In¥8stm+nts Investments are included in the financial statements at the year 6nd market value. Income from investments, bank and other deposits are included ￿ an ac(xuals b8SiS. DONATIONS AND LEGACIES 30.6.23 30.6.22 Donattons Mass stipends Stole fee5 Supply fees Education and training 1.081 10A31 5,758 5.524 30,833 23,392 2,041 4,128 52,134 22,794 112,528 OTHER TRADING ACTIVITIES 30.6.23 30 6.22 Fundraislng events other income 15.072 1.040 4,830 4830 16,112 INVESTMENT INCOME 30.6.23 30.6.22 Rents r￿1Ved Dividend income Deposit xcounl interest 1,575 278,873 2,025 1,575 271,970 2,547 282,473 276,092 Page 16 C￿ntinUed... Sa¢rod Heart Fathers Trust Notes to the FSnanclal Stat•ments- continued forthg Year Ended 30 June 2023 INCOME FROM CHARITABLE ACTIVITIES 30.6.23 Actiwty Genera Contributions from rnembers 90,967 98.907 RAISING FUNDS In¥estm•nt management ¢osts 30.6.23 30.6 22 Portfolio rnanagement 19.470 20.555 CHARITABLE ACTIVITIES COSTS Support costs (see note 81 Direct Cost5 Totals General $00,207 92,743 592.950 SUPPORT COSTS Govemance costs Management Other TotsL8 General 41.$36 966 50.241 92,743 TRUSTEES, REMUNERATION AND BENEFtTS The￿ were no trustees. re￿￿eration or other banèfi15 for the year ended 30 June 2023 noi for the year ended 30 June 2022. Trustees, expenses There were no trustees, eKFEnses paid for the year ended 30 June 2023 nor for the year endad 3) June 2022. 10. STAFF COSTS 30.6.23 30.6.22 Wages and salar￿9 Sctial securty costs 42,7TT 5.314 43,836 5,421 48,091 49,057 average mr￿1hIY nurnber ol employees during the year was as follows.. 30.6.23 30.6.22 Charitable Activities No employees re￿Ne￿ emoluments in excess of£60,0W. Page 17 continued... Sa¢red Heart Fathérs Trust Notes to thè Financial Statements- eontlnued for the Year Ended 30 June 2023 11. TANGIBLE FIXED As$￿s lrnprovemen¢s Equipment and rThture Freehold propety pr(ygrty COST At 1 July 2022 Additions 1,366,046 1,143,576 191,097 At 30 Jure 2￿23 1,366,046 1.143,576 191.097 DEPRECIATION At 1 July 2022 Charge for year 489.227 27,321 238,413 22,874 11.750 567 At 30 June 2023 51&548 261,287 12317 NET BOOK VALUE At 30 June 2023 849,498 882,289 178.780 At 30 June 2022 876,819 905,163 179,347 Fixtu￿$ and fittings Motor vehcjes Computor equiprnenl Totsls COST At 1 July 2022 Add￿.(￿5 13,6(N) 88,962 8.250 3,181 2,806,462 8,250 At 30 June 2023 13,600 97,212 3.181 2,814,712 DEPRECIATION At 1 July 2022 Charge foryear 4,091 476 78,748 8,015 2,762 105 824,991 59,358 AI 30 ￿ne 2023 4.567 86,763 2,867 884,349 NET BOOK VALUE At 30 June 2023 9,033 10,449 314 1.930,363 At 30 June 2022 9,509 10,214 419 1,981,471 Induded in Equlpmenl and fijmiture are paintiryJs and works of art th81 were gifted to the chanty in 2W2. These assets are believed to have residual values not materially different to the carrying values and are therefore not depreciated These assets were Independently valued in March 2002 wlh a value of £166,￿0. The replacement value for insurance purposes al Septembèr 2014 was approximatèly £2￿.000. At 30 June 2023 Smithstone House in KI￿innIng S¢ot18nd. is disclosed at 8 (xrrying v￿ue of £265,257 induding improvement costs of £257,390, in the opinion of the trustees this has an approximate market value of £750.000. The market value of all other freehdd propety is not considered to be rnaterially different from the carrying value& Page 18 conts"M8d. . Sacred Hèart Fathers Trust Not•s to the Financlal Staternents. contlnuefl forthe Year Ended 30 June 2023 12. FIXED ASSET INVESTMENTS UK quoted fixed interest Other 11sted investsnents Totals MARKETVALUE At 1 July 2022 Revaluats'ons 6,432.874 1205,285} 19,744 5,782 6,4S2,618 1199.5031 At 30 June 2023 6,227,589 25,526 6,253.115 NET BOOK VALUE At 30 June 2023 6.227,589 25,526 6,253.115 At 30 June 2022 6.432.874 19,744 6.452,618 There were no investment assets outside the UK. Cost orvalualion at 30 June 2023 is reprtsented by.. UK quoted rixèd interest Other Ilsted inve5trnents Totals ValLJation in 2022 Valuation in 2023 6,432,874 12052851 19,744 5,782 6,452,618 1199,5031 6,227,589 25,526 6.253,115 13. INVESTMENT PROPERTY 30.06.19 30.(￿.18 AgA¢ullural laThS- Redbourne. Hertfordshire 50,OCO 50,000 DEBTORS.. AMOUNTS FALLING DUE WITHIN ONE YEAR 30.6.23 30.6.22 Other debtors 130,975 71 Page 19 conthued... Sacred Heart Fatheys Trust Notss to the Flnancial Statements- conttnued forthe Year Ended 30 June 2023 15. CREDITORS.. AMOUNTS FALLING DUE WITHIN ONE YEAR 30.6.23 30.6.22 other creditors 806.739 S4,￿8 16. L&4SING AGREEMENTS Minimum lease payments urKler non