RELIGIOUS OF THE SACRED HEART OF MARY IMMACULATE VIRGIN, EAP Formerly Religious of tILe Sacred Heart of Mary Maryfftount InternationAI, Kingston FINANCIAL STATEMENTS FOR THE YEAR ENDED31 AUGUST 2020 Registered Charity Number.. 228365 RELIGIOUS OF THE SACRED HEART OF MARY JMMACULATE VIRGIN, EAP TRUSTEES, REPORT The Trustee5 present the accounts for the year ended 31 August 2020. REFERENCE AND ADMINISTRATIVE DETAILS BOARD OFTRUSTEES Sister Catherine Patten RSHM Sister Catherine Vincie RSHM Sisier Mary Martin RSHM Sist¢T Monica Walsh RSHM Iresigned 2 March 20201 Sister Mary Timoney lappotnt¢d 2 Marrh 20201 ADDRESS MaryEnount Intemaiional School George Road Kingston Upon Thame5 Surrey KT2 7PE ADVISORS Solititors Stone King LLP 13 Queen Square Bath BAI 2HJ Independent ExAminer Lee Stoke5 FC.A Haysrnacintyre LLP 10 Queen Street Place London EC4R IAG Insurance Brokers Hettle Andrews Ltd I l Brindley Place 2 Brun%wick Square Birrningham BI 2LP RELIGIOUS OFTHE SACRED HEART OF MARY IMMACULATE VIRGIN, EAP TRUSTEES. REPORT The a¢¢ounts have been prepared in accordance with the requirements of the Charities Act 2011. the Statemet)i of R￿0mMellded Practice "Accounting and Reporting by Charities" SORP {FRS 1021 second edition effective l January 2019 and the Charity's goveming docllment. On 29 February 2008, the School operating activities and the assets le¥¢luding property) of the Religious of the Sa¢r¢d Heart of Mary IRSHMI, Marytnount Intemational (Charity number 228365) w¢r¢ transferred to Marymount International School Icoillpany number 5325717 and regisiered Charity number 11177861. The Incorporated Trustees ofthe Religiou5 of the Sacred Heart of Mary ICharIty nutnber 2283651 also donated 200/0 of the value of the School preinises to Marymount International School., no reduction in the holding value of property ha5 been included in these accounts as ihe premist5 are Still owned by RSHM. On 12 May 2008, Incorporated Truste¢5 of the Religious of the Sacred Heart of Mary Contracted to lease the School premises to Marymount lotetnational School on a 99 year lease. From May 2008 to May 2018 rental cotnmitments were peppercom rent and in May 2018 the school started paying rent at £200,000 per onnurn. This Charity continues to hold legal title (o the property but no longer trades as Marymount Intemational School. Followin8 the transfer of undertaking of the School to the new company and charity, Marymount lrtternational School (registered ¢harity llUTnb¢r 1117786,. registered coinpany number 53257171, Ihis Charity Ix)ntinues to support the School by being involved in the advan¢ement of religious alld other charit2ble work, boih within the ￿h0o1 and worldwide. STRUCTURQ GOVERNANCE AND MANAGEMENT Board of Trustees The Board of Trustees is responsible for d¢cermining the ovcrall collduct of the Charity. Status Administration Maryrnount International School, Kingston, is condu¢ied by th¢ Religiou5 of the Sacred Heart of Mary, a Congregation founded in 1849 in Btziers, France by the Reverend Jean Antoine Gailhac and Mother St Jean Cure. The S¢hool is under the specific jurisdiction of the Eastern American Province of the Religious of the So¢r¢d Heart of Mary which maintains its Prov&nci81 Office in New Ytsrk, U.S.A. PrioT to l March 2008. the School was registered as 3 Charity in England & Wales {number 2283651 under the name of the 'lnstitut¢ of the Religious of the Sacred Heart of Mary Immaculate Virgin" and operated under the name of Marymount International School {Marymollni}. On 29 February 2008. the bus&ness of the School and its assets (excluding PTopertyl and liabilities were transferyed as a gift to Marymount Intemational School, a regisiered Cotnpany liinited by guarantee Inumber 53257171 and registered Charity (number 11177801, both regisl¢r¢d in England & Wales. The ownership of the School site is retsined by the Religious of the Sacred Heart of Mary wilh the Board of Governors being the Direetors of the new Cotnpany and Trustees of ihe new ChaTlty, responsible for the strategic oversight of the School's operaiions. Recruitment and trAining of Trnste¢5 The Tru5tee5 have due regard to the skills required io ￿anagE the a55et held by the charity and its activities. They will appoint new Trustees io fill any identified skills gaps. Appropriate training and induction would be provided to Any new Trustee. Risk Management The Trustees have as5e$5ed the major risks to which the Chariiy is exposed and are sat15fied that there are systems in pla¢¢ io mitagate exposure to such risks. RELIGIOUS OF THE SACRED HEART OF MARY IMMACULATE VIRGIN, EAP TRUSTEES. REPORT {Continued) OBJEcfIvES AND ACTIVITIES Objetts The object of the Charity is to prornote such ¢haritsble purposes as shall advance religious and other charitable work of the cortgregation and if at any time th¢ congregation shall ¢ease to exist or shall cease to carry on religiou5 or other charitable work ihen such other lawful charitable purposes connected with the advancemeni of the Roman Catholic religion a5 th¢ trustee shall determine. AsThS Following the transfer of undertaking of the School to the new cornpany and charity, Marymount International School, this Chartty continues to support the School by being involved in the advanceinent of religious and other charitable work, both within the School and in the wider commutjity. Inextricably link￿ with this obje¢t is the aim of providing public benefit 10 the local, national and tntemational community. Objective5 for the Ye*r The Charity wtll continue to support Marymount International School by leasing PTernises on favourable rental terms and assisting in the advancement of education and religion. In sctting their objectives and planning their activities the Trllsiees have given careful consideration to the Charity Commission's general guidance on public benefit. PrintlPAI Activity Following the transf¢r of the business on 29 February 2008, the Ch&rity supports the educatioii of girls by leasing its properry to the Maryttiount Tniernational School and continu¢5 jts own work in advancing the religious and other Charitable works of the congregation. REVIEW OF ACHIEVEMENTS AND PERFORMANCE The Chariiy mode tts property available to Marymount Intemational School for the education of girls. During the year, rent of £200,000 was charged to the school (2019.. £199,462). FINANCIAL REVIEW The total income generated for the year atnounted to £794,064 {2019.. £199,462). There was an tncrea5e itl in¢ome to the ¢harity due to a legacy from SLSter Bernadette Crook RIP, an RSHM sister in the UK, who bequeathed the Tnajority of her estate to support the charity's objectlVe5. Total expenditure for the year amounied to £815,88712019.. £247.750). Total expenditure in¢luded the following grants payable.. £190,000 ioward5 the buildsng of 2 teaching blocks ai the Diocesan School in Chinhoyi, Zimbabwe. £117,858 was paid in the year RELIGIOUS OF THE SACRED HEART OF MARY IMMACULATE VIRGIN. EAP TRUSTEES, REPORT (Continued) £275.000 towards the building of a n¢w RSHM Life Care Centre in Chinhoyi, Zimbabwe. The ¢entre will promote good health pra¢ti¢es, disra5e prevention and wellness in the community, as well as working with the elderly in care homes, ¢hose with ¢hronic illnesses atld outreach to reduce infant monality. £108.391 was paid in the year. £50,000 toward5 to a Parish in Ibillin. Israel to set up a school whi¢h is based on passing on the skills and dedication to the ¢T¢ation of Byzantine icons The remainin8 expenditure related to depre¢iaiion of assets held of £48.288 (2019.. £48.288) and a grant io ihe Generalate of the Order of £200,00012019.. £199,462). The net income for the year amounted to £21,823 (2019.. net expenditure of £48.288). Reserves Poli¢y The Charity operates a reserves policy based on the prudent managernent PTinciple of having adequate resources to satisfy all outstanding liabilities and commitment5. The Charity's current level of reserves is £1,275,195 of which £1,248,730 is applted towards fixed asseis. Following the transfer of all net assets (excluding prop¢TtyI to the new company Marymount International Srhth)I, the Charity has llo Outstanding liabilities or ¢ommitment5 Other than grants ¢omtnitments and a ¥uaTant¢e to mect the deficit in the School's Defined Benefit Pension Scheme according io a Recovery Plan approved by the Pensions Regulator. FUTURE DEVELOPMENTS Following the iransf¢r of the S¢hool busines5 to Marymount International School (Charity l 117786). this Charity {2283651 will continue it5 religiou5 and charitable works including the support of the local religious cornrnunity of the sisters of the Religiou5 of the Sacred Heart of Mary and the works of the religious congre¥alion in the United Kingdom and rnis5ionary countries. particularly Africa. The religious work will continue to include organi5ation of prayer and meditation groups open to the general public, visitation of the elderly. voluntary a5525tance at a local primary school. woluntary teaching of English io immigrants and fundraising for the sUPPOrt of overseas missions. The Charity will also assisi Maryrnount International School in fundraising to finance needs based Bursaries. RELIGIOUS OF THE SACRED HEART OF MARY IMMACULATE VIRGIN, EAP TRUSTEES, REPORT (Continued) STATEMENT OF TRUSTEES. RESPONSIBILITIES The Trustees are responsible for preparing the Trustees, Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards Iunited Kingdom Generally Accepted Accounting Pracii¢el. The law applicable to charities in England & Wales requires the Trustees to prepare financial statcments for each flnancial year which give a true and fair view of the state of affair5 of the Charity and of the income and expenditure of the charity for that period. In preparing these financial statements, the Trustces are required to.. Select suitable accounting policies and then apply them ¢onsisien¢ly' Observe the rn¢thods and PTin¢iples in the Charlties SORP; Make judgernents and e5timat¢s that are reasonable and prudent. State whether applicable accounting standards have been followed, subject to any material departures disclosed and explaincd in the financial statements; and Prepare the financial staternents on the going ¢on¢em basis unless it Is inappr(>priate to presume that the Charity will continue in business. The TTUStees ar¢ responsible for keeping proper accounting Tecords thai disclos¢ with reasonable accuracy at any time the financial p051tioD of the charity and enable ihem to ensure that the finaii¢ial statements comply with the Charities Act 201 I, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed dated 26 April 1963. They are also responsible for safeguarding the a5S¢t5 of the c.harity and hence for taking reasonable 51tps for the prevention and detection of fraud and other irregularities. Signed on behalf of the Trustees.. Sister Mary Jo Martin RSHM Trustee 29th March 2021 RELIGIOUS OF THE SACRED HEART OF MARY IMMACULATE VIRGIN, EAP INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF THE RELIGIOUS OF THE SACRED HEART OF MARY IMMACULATE VIRGIN, EAP I report io the Trustees on my examination of the accounts of The R¢ligiou5 of the Sacred Heart of Mary Imma¢ula¢e Virgin, EAP for the year ended 31 Augusi 2020 which are set out on pages 7 to 13. Respective responsibilities of trustees and exgminer The trustee5 are responsible for the preparation of the accounts in a¢cordan¢e with th¢ Tequirements of the Charities Act 2011 I'lhe 2011 Act"). The trustees are satisfjed that att audil is not requircd for this year under section 14412} of th¢ Charities A¢i 201 I Irhe 2011 A¢tl and have chosen instead to have an independent examination. I report in respect of my examination of the Trust's accounts as carried out under section 145 of the 2011 Act. In carrying out my examination I have followed the requirement$ of the 8ppli¢able Directions given by the Charity Commission under section 145151(bl of the 201 l Act. Independent txAmin¢r's $t4tem¢nt Sinre the ¢harily's in¢ome is in ¢xce5s of £250,000, your examiner must be a member of a body listed in the 2011 Act. I can confirm that l am qualifjed to undertake the examination because T am a registered member of th¢ ICAEW which is one of the listed bodies. I have ¢ompleied my exaEnination. l ¢onfim that nts Tnatters have come to my attention givin8 me cause to b¢lieve that in any material respect.. accounting records were Rot kept in respect of the charity as required by section 130 of the 2011 ACL or the accounts do not accord with th05¢ records; or the accounts do not comply with the applicable requirernents concerning the forni and content of accounis set out in ¢h¢ Charities IA¢¢ounts and Reports) Regulations 2008 other than any requirement thai ihe a¢¢ount5 give a true and faiT view which 15 not a matter considered as part of an ind¢pendent examination. have no concerns and have come across no other matters In conne¢tion with the exaTnination to which attention should be drawn in this report in order to enable a proper understanding of the account5 to be reached. Lee Stokes FCA Haysmac&ntyre LLP 10 Queen Street Place London EC4R IAG Date.. 13 April 2021 RELIGIOUS OF THE SACRED HEARTOF MARY IMMACULATE VIRGIN, EAP STATEMENT OF FINANCIAL ACTIVITIES YEAR ENDED 31 AUGUST 2020 2020 2019 Notes Income: Legacy income Rent weivable from Marymount International School 594,064 200,000 199,462 Total IncO￿t 794,064 199.462 Expenditure: Cost of r#i$ing fEtnds Financing ¢ostg 2,660 ChAritAble Activitie5: Grants payable Premise5 Costs Support Costs 762,57 48,288 2.368 199,462 48,288 2b Tot21 Expenditure 815,887 247,750 Net InComel{Exp¢ndit￿re) for the year (21,8231 (48,2881 Balances brought forward at I September 2019 1.297.018 1,345,306 Balances Carried forward at 31 August 2020 £1,275,195 £1 ?97,018 All funds are unrestricted. The accompanying notes forni part of these accounts. RELIGIOUS OF THE SACRED HEART OV MARY IMMACULATE VIRGIN, EAP BALANCE SHEET AS AT 31 AUGUST 2020 2020 2019 Notes TANGIBLE FIXED ASSETS 1,248,730 1.297.018 CURRENT ASSETS Cash & Bank 312,787 CURRENT LIABILI'fiES Creditors- Grants payable 1286,322) NET CURRENT ASSETS 26,465 TOTAL NET ASSETS £1,275.195 £1,297.018 Unrestrieted Funds General ,275,195 1.297.018 £1,275,195 £1.297.018 The financial staterllents were approved and auihorised for i55ue by the Board of Trustees on 29th March 2021 and were signed below on lis behalf by.. Sister Mary Jo Trustee rtin RSHM The accompanytng noles fortn part of the5¢ accounts. RELIGIOUS OF THE SACRED HEART OF MARY IMMACULATE VIRGIN, EAP NOTES TO THE ACCOUNTS ACCOUNTING POLICIES The financial statements have been prepared in accordance with the Financial Reporting Standard applicable in the UK and R¢publi¢ of Treland IFRS1021, and the Siaterncnt of Recommended Practice applicable to Charities preparing their a¢count5 in a¢¢ordance with the Financial Reporting Practice applicable in the UK and Republic of Ireland IFRS 1021 second edition tffective l January 2019. The functional ¢UTren¢y of the Charity is considered to be GBP because that is the ¢urrett¢y of the primary economic environment in which the Charity opeTates. The Charity is a Public Benefit Entity registered as a charity in England and Wales Charity numbeT: 228365. BASIS of preparAtiOEh The a¢counis are prepared under the historical cost ￿nVention. Going concern The Truste¢5 hav¢ a Teasonable expectatioft that the Charity has adequate resources to continue its activities for the foreseeable futUTe and ronsider that there were no material uncertainties over th¢ C.haTIty's financial viabilit>'. Accordingly, they also continue io adopt the going concem basis in preparing the rinancial statements as outlined in tlie Statem¢rLt Trustees. Responsibilities on page 5. Critical accounting judgements #Dd key $otyrtes of estimAtion ￿nCertAinty In the 8pplicaiion of the accounting policies. TN5tees are Tequired to make judgemeni. estimates, and assumptions about ihe carrying value of assets and liabilities that are not readily appareni from other sources. The estiTllates and und¢rlyTng assumptions are based on historical experience and oiheT factors thai aTe Considered to be relevant. Actual results rnay diffeT from these esiimales. The estimatcs and underlyin¥ assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the eslimaie is revised if the revision affects only that period, or in the period of the revision and future periods if the revision offe¢ted current and future periods. The key estimate In the charity's financial statements Is deprcciation. which Is based on an estimation of each asset'5 Useful econoTnic life. In the view of the Trustees, no assumptions conceming the future or estimaiion uncertainty affecting assets or liabiliti¢s at the balan¢e sheet dale are likely to result in a material adjustTnertt to their carrying arnounts in the llcxt financial yeaT. d) TAngible fixed assets Fixed assets are stated at cost or deemed cost less accurnulated depreciation and impairment losses. Depreciation is calculated by the following methods at the following rates'.- Building improvements Science and Skx)rts Centres, Our Lady's Hall and St Joseph's Hall IOO/o pa straight line 20/0 pa straight line Debtors Rent receivable is measured at tyan$2Ction price. Cash gt bAnk and in hand C&8h is made of solely cash ai bank. RELJCJOUS OF THE SACRED HEART OF MARY IMMACULATE VIRGIN, EAP NOTES TO THE ACCOiiNTS (Continued) g) Creditors Creditors are recognised where the chariry has a preserti obligaiiot) resulting from a past event that will probably result in the transfer of funds lo a third party and the amount due to settle the obligation can be measured o¥ estimated reliably. Cr¢ditor5 are rhormally recognised at thetr settlement amouni. h) Funds Unrestri¢ied g¢neral funds are funds which can be used in accordance with the charitable obj¢¢ts ai the discreiion of the Trustees. Income r¢¢ognition All illcome is recognised once the charity has eniitlemenl to income, it is probable that income will be received and the amount of income receivable Can be measured reliably. Expenditure recognitio Expenditure consists of grants, premises sllpport and financing ¢osts. which are allocated a￿5 of activity in line with the level of direct costs for ea¢h area of activity. Grants payable are accounted for when either the recipient has a reasonable expe¢&tion that they will receive the grant or the Trustees have agreed io pay the gTant without Condition. io RELIGIOUS OFTHE SACRED HEART OF MARY IMMACULATE VIRGIN. EAP NOTES TO THE ACCOUNTS (Continued) Grathts Payable 2020 2019 Grant5 payable can be fvrther analysed as= Grant for Diocesan teaching block5. Zimbabwe Gran¢ for RSHM Lift Care Centre, Zimbabwe Grant to Ibillin Parish Grant to the Religious of the Sacred Heart of Mary Eastern American Province 207,757 304,814 50,000 200,000 199,462 £762,571 £199,462 2b. ANALYSIS OF EXPENDITURE 2020 2019 Total expenditure includes: Premises- depreciation £48,288 £48,288 STAFF COSTS There were no employees during the Cu￿ent or prior years. The aggregate amount of reimbursed expenses paid to Trustees was £Nil (2019.. £Nill. z< RELIGIOUS OF THE SACRED HEART OF MARY IMMACULATE VIRGIN. EAP NOTES TO THE ACCOUNTS {Continuedl TRANSFER OF ASSETS On 29 February 2008. the business of the school and its assets lex¢luding property) and liabilities were transferred as a gift to Marymount International School, a registere(f Company limited by guarantee (number 53257171 and registered Charity (number 11177861, both registered in England & Wa1¢5. The trustees also donated 20070 of the value of the school premises to the new charitable cotnpany at that date. On 12 May 2008, Incorporated Trustees of the Religious of the Sacred Heart of Mary (charity number 2283651 Colltracted to lea5¢ the school premises to Marymount International School on a 99 year lease. Renial commitments are peppercom rent payable (if dernandedl for ihe fjrsi ten years of the lease tenn. Following the conclusion of this period, in 2019120 rent of £200,00012018119.. £199.4621 was charged to the School. GUARANTEE On transfer of the business of the school and its assets (excluding property) and liabilities to Marymount lllternational School the charity made a guarantee to meet the liability in the school's delirted benefli pension scheme according to a recovery plan approved by the Pensions Regulator. RELATED PARTY TRANSACTIONS During 2019120 grants of £200,000 were madelpledged to the Religioug of the Sacred Heart of Mary Eastern American Province 12018119.. £199,462), a relaied American organisalion. A balance of £nil was outstanding between the two organisations ai 31 August 2020 l£nil outstanding at 31 August 20191. 13