REGISTERED CHARITY NUMBER: 230756
REPORT OF THE TRUSTEES AND
UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2022
FOR
MISSIONARY SISTERS OF THE SACRED HEART
Chariot House Limited Chartered Accountants
44 Grand Parade Brighton East Sussex BN2 9QA
MISSIONARY SISTERS OF THE SACRED HEART
CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2022
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Report of the Trustees 1 to 6
Independent Examiner's Report 7
Statement of Financial Activities 8
Balance Sheet 9
Notes to the Financial Statements 10 to 13
Detailed Statement of Financial Activities 14
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MISSIONARY SISTERS OF THE SACRED HEART
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31ST DECEMBER 2022
The trustees present their report with the financial statements of the charity for the year ended 31st December 2022. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).
OBJECTIVES AND ACTIVITIES
Objectives and activities
The Trustees present the report and financial statements for the Missionary Sisters of the Sacred Heart. The object of the charity is to support the Missionary Sisters of the Sacred Heart in their charitable work.
The Trustees consider that the accounts comply with current statutory requirements, the governing document and the charity statement of recommended practice.
The Missionary Sisters of the Sacred Heart of Jesus congregation was founded in 1880 by St Francesca Xavier Cabrini who was canonised in 1946. She was an Italian who established a school in the first instance in Brockley SE4, but moved to Honor Oak SE23 in 1910 and established the School in Oaklands and Woodville Hall. In 1930 the present School was built and staffed by the Sisters.
The Sisters developed their mission in south east London by establishing 'The Abbey' for retired ladies, 'Border Lodge' and 'Regina Angelorium' (Cabrini House) originally for boarders, then later used as a short stay holiday home for handicapped children. It has since been used for housing refugees.
The Sisters have taken care of refugees at various times, including 200 Basque refugees during the Spanish Civil War. Forty children who fled from the Germans, numerous Polish, Czech and Belgians have all been catered for at Honor Oak.
The Sisters refurbished Woodville Hall for use as their Convent when it became impractical to continue to live in a Convent, which was spread over a number of mezzanine levels within the school. The Sisters partly refurbished Oaklands to provide a separation between the School and the Refugee Hostel.
St Francesca Cabrini School became voluntary aided on 6 November 1953 as a Junior Girls and Infants School. It became a Junior Mixed and Infant School in 1965. The School was incorporated as a Grant Maintained School in 1993 but at the desire of Archbishop Michael Bowen of Southwark the School reverted to voluntary aided status in September 1999. The Sisters continue to be active in the School life. The Sisters are on the School Governing Body and they provide ongoing pastoral care and support. The Sisters are deeply involved in the promotion of Mission Values within the School, reaching out to pupils, staff and parents.
The Sisters carry out support work in the local parish and undertake home visits to the frail and elderly where they are able to offer individual support and assistance. The Sisters provide food from time to time to a number of destitute men.
The Sisters lead a religious instruction group for people from Latin America. They support the Spanish chaplaincy at St George's Cathedral. Hospitality is provided to missionary workers and overseas teachers coming to learn English. The Sisters provide counselling advice to people in the community, particularly from Latin American communities.
The Convent at Honor Oak is used as a base for Sisters each year who come to London to learn English in preparation for work in Missions around the world. The Sisters at Honor Oak are part of the Holy Spirit Province. There are Convents and mission in Ethiopia, Uganda and Eswatini. Many of the Sisters have been on Missionary Work, teaching and nursing, in different parts of the world from as close as Scotland to throughout the Third World.
The majority of the funds of the community are held in a business money manager account.
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MISSIONARY SISTERS OF THE SACRED HEART
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31ST DECEMBER 2022
OBJECTIVES AND ACTIVITIES Public benefit
From 1 April 2008 section 4 of the Charities Act 2006 requires all charities to meet the legal requirement that it aims are for the public benefit. The Charity Commission in its 'Charities and Public Benefit' guidance states that there are two key principles to be met in order to show that an organisation's aims are for the public benefit: firstly there must be an identifiable benefit and secondly the benefit must be to the public or a section of the public.
The Trustees confirm that they have complied with the duty in section 4 of the Charities Act 2006 to have due regard to the public benefit guidance published by the Commission in determining the activities undertaken by the charity. The Trustees are satisfied that the aims and objectives of the charity, and the activities reported on above to achieve those aims, meet these principles.
ACHIEVEMENT AND PERFORMANCE
Charitable activities
The Sisters, working within Southwark Archdiocese in London, continue to have a keen interest in the well-being of immigrant communities and work closely to develop areas of pastoral and community support for the everchanging immigrant groups in some of the poorest and most deprived areas of London.
The community in London during 2022 comprised one Sister from South America with visits through the year by other Sisters and laity. Working with immigrant communities our Sisters are helping them to achieve residency status and to integrate them into the local community thus helping to lift them out of the poverty trap that isolation can bring.
Our Convent often regularly used by St Francesca Cabrini Primary School community who often visit for a quiet moment.
Following on from Covid 19 we continue to utilise Zoom and other platforms to host meetings with colleagues spread around the world.
As Trustees of St Francesca Cabrini Primary School we are involved with the Headteacher in all aspects of Mission Development and help to organise and facilitate Mission Development training for the staff and Governors of the school. The school draws its children from a variety of immigrant cultures; many of the children are from disadvantaged homes. The Mission permeates through the whole school contributing towards giving the children strong pastoral support with a citizenship focus that directs them towards positive pathways and away from gang culture and crime. We attend all functions and celebrations at the school including Masses and liturgical celebrations. We meet with and regularly have contact with new and existing parents. We are Foundation Governors of the school and take an active part in Mission Development, School Improvement, Buildings and Grounds, Personnel and Finance. We give moral and spiritual support to the Headteacher. We observe the academic and missionary aims and objectives of St Francesca Cabrini Primary School to promote and copy good practice throughout our other institutions worldwide. We provide study books on the life of St Francesca Cabrini for all new children to the school as well as providing teaching aids.
We were greatly saddened when, in December 2022, London Borough of Southwark approved the closure of St Francesca Cabrini Primary School with effect from 1 September 2023 due to a falling roll and therefore an unsustainable financial position for the school.
During 2022 we welcomed a family to share part of the large convent house as their home. The Sisters live in a self-contained wing of the house.
Commencing in 2004 we continue to provide affordable rental accommodation for key workers in Oaklands House. The house has become a stepping-stone for key workers who have been able to move on to their own permanent accommodation. We meet/liaise on a regular basis with the Management Company.
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MISSIONARY SISTERS OF THE SACRED HEART
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31ST DECEMBER 2022
FINANCIAL REVIEW
Reserves policy
The Trustees seek to maintain adequate unrestricted reserves to enable the smooth day to day operations of the charity. The Trustees seek to maintain free reserves of at least one year's normal expenditure.
The Trustees consider that the assets of the charity are sufficient to meet the charity's obligations on a fund by fund basis.
The Sisters' income comprises rent from Oaklands House, the Sisters' pensions, bank interest and a small number of donations towards our mission work.
Investment powers and policy
Trust moneys may be invested in or upon any investments for the time being authorised by law for the investment of Trust funds.
The Trustees have decided that they wish to avoid risk of capital loss and have therefore invested all investment monies in interest bearing accounts seeking to obtain the best rate of interest available.
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MISSIONARY SISTERS OF THE SACRED HEART
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31ST DECEMBER 2022
FUTURE PLANS
St Francesca Cabrini Primary School is a victim of the changing demographics in South East London. A rapid decline in the number of primary school age children resulted in the school being no longer financially viable and London Borough of Southwark approved the closure of the school at the end of the summer term 2023. In the London Borough of Southwark alone there are currently over 6,000 vacant primary school places and other schools being listed for closure. The Sisters will continue to support the school's pupils and staff in the lead up to the school closure. We will support the pupils and staff of St Francesca Cabrini Primary School in celebrating the history of the school.
The Sisters will work with their professional advisors regarding the future and ongoing use of the site.
The Sisters will retain a residence in London and tailor their work in the parish and community accordingly.
As part of the Holy Spirit Region (combining London, Ethiopia, Eswatini and Uganda) we are approved by the Home Office to Sponsor Licence Applications for our Sisters and lay volunteers from overseas to come and work in and support the London Community. We will continue to seek to base Sisters and volunteers from other parts of the Holy Spirit Region in London. They will help us to expand on the changing nature of the work that we are committed to with immigrants in London in particular supporting them to build strong family, pastoral and community links.
The Holy Spirit Region continues to publish a newsletter where the work of the HSR can be shared and celebrated by our wider Cabrinian Community.
We will continue to work closely with our Parish Priest to continue to offer pastoral support and help to needy members of the local community.
Other plans include young Sisters who are currently training in Ethiopia, Brazil, central and south America being based in London to complete their missionary studies, improve their English language skills and work with the permanent members of the community to further develop our missionary work with immigrants.
We will continue to rent Oaklands House to key workers in the community.
We will look to formally sub-divide the convent building to create a part that can be rented for family accommodation and a separate self-contained part that will provide a smaller convent.
We will continue to build a closer relationship with our lay collaborators in London by offering them attendance at Regional meetings so that they may see and understand more fully the work of the Missionary Sisters in other parts of the Holy Spirit Region as well as participating in International Financial Administrators meetings to offer the lay administrators who support the Institute access to a formation program that is global, focused, integrated and ongoing.
We will look to expand the pool of Trustees to include lay members.
A resolution to re-appoint John Thacker of Chariot House Limited as the Independent Examiner of the Charity will be proposed at the Annual General Meeting.
STRUCTURE, GOVERNANCE AND MANAGEMENT
Governing document
The Missionary Sisters of the Sacred Heart is an unincorporated charity, set up under a Trust Deed dated 12 June 1963. The governing document is the Trust Deed dated 12 June 1963 and a scheme sealed on 6 August 1990.
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MISSIONARY SISTERS OF THE SACRED HEART
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31ST DECEMBER 2022
STRUCTURE, GOVERNANCE AND MANAGEMENT
Recruitment and appointment of new trustees
The statutory power of appointing new Trustees and the removal thereof shall be vested in the Superior.
Decisions of the charity are made by the trustees in consultation with the Mother House.
Law applicable to charities in England and Wales requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the charity's financial activities during the year and of its financial position at the end of the year. In preparing the financial statements giving a true and fair view, the Trustees should follow best practice and:
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select suitable policies and apply them consistently;
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make judgements and estimates that are reasonable and prudent;
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state whether applicable accounting standards and statements of recommended practice: Accounting by Charities, have been followed, subject to any material departures disclosed and explained in the financial statements;
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.
The Trustees are responsible for keeping accounting records which disclose with reasonable accuracy the financial position of the charity and which enable them to ensure that the financial statements comply with the Charities Act 1993. They have general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the charity and to prevent and detect fraud and other irregularities.
Risk management
The major risks to which the Charity is exposed, as identified by the Trustees, have been reviewed and systems have been established to manage those risks.
REFERENCE AND ADMINISTRATIVE DETAILS Registered Charity number
230756
Principal address
Sacred Heart Convent Forest Hill Road Honour Oak London SE23 3LE
Trustees
Sister D D Molle Sister P Godoy (resigned 20/3/2023) Sister M P Bennett Sister H D Beyene (resigned 20/3/2023) Mr P M Maguire (appointed 20/3/2023) Sister B L Staley (appointed 20/3/2023)
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MISSIONARY SISTERS OF THE SACRED HEART
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31ST DECEMBER 2022
REFERENCE AND ADMINISTRATIVE DETAILS Independent Examiner John Thacker FCA DChA Chariot House Limited Chartered Accountants 44 Grand Parade Brighton East Sussex BN2 9QA
Bankers
HSBC 47 Rye Lane Peckham London SE15 5ET
Solicitors Memery Crystal LLP 44 Southampton Buildings London WC2A 1AP Approved by order of the board of trustees on ............................................. and signed on its behalf by:
........................................................................ Sister D D Molle - Trustee
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INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF MISSIONARY SISTERS OF THE SACRED HEART
Independent examiner's report to the trustees of Missionary Sisters Of The Sacred Heart
I report to the charity trustees on my examination of the accounts of Missionary Sisters Of The Sacred Heart (the Trust) for the year ended 31st December 2022.
Responsibilities and basis of report
As the charity trustees of the Trust you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 ('the Act').
I report in respect of my examination of the Trust's accounts carried out under Section 145 of the Act and in carrying out my examination I have followed all applicable Directions given by the Charity Commission under Section 145(5)(b) of the Act.
Independent examiner's statement
I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
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accounting records were not kept in respect of the Trust as required by Section 130 of the Act; or
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the accounts do not accord with those records; or
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the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination.
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
John Thacker FCA DChA
Chariot House Limited Chartered Accountants 44 Grand Parade Brighton East Sussex BN2 9QA
Date: .............................................
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MISSIONARY SISTERS OF THE SACRED HEART
STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31ST DECEMBER 2022
| Notes INCOME AND ENDOWMENTS FROM Donations and legacies Charitable activities Rent for keyworker accommodation Other trading activities 2 Investment income 3 Total EXPENDITURE ON Charitable activities Supporting the work of the Missionary Sisters NET INCOME/(EXPENDITURE) RECONCILIATION OF FUNDS Total funds brought forward TOTAL FUNDS CARRIED FORWARD |
Unrestricted funds £ 2,831 41,926 6,989 1,482 53,228 123,047 (69,819) 1,574,083 1,504,264 |
Restricted funds £ 1,200 - - - 1,200 - 1,200 1,600 2,800 |
2022 Total funds £ 4,031 41,926 6,989 1,482 54,428 123,047 (68,619) 1,575,683 1,507,064 |
2021 Total funds £ 1,800 4,785 6,507 101 13,193 88,055 (74,862) 1,650,545 1,575,683 |
|---|---|---|---|---|
The notes form part of these financial statements
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MISSIONARY SISTERS OF THE SACRED HEART
BALANCE SHEET
31ST DECEMBER 2022
| Notes FIXED ASSETS Tangible assets 5 CURRENT ASSETS Debtors 6 Cash at bank CREDITORS Amounts falling due within one year 7 NET CURRENT ASSETS TOTAL ASSETS LESS CURRENT LIABILITIES CREDITORS Amounts falling due after more than one year 8 NET ASSETS FUNDS 10 Unrestricted funds Restricted funds TOTAL FUNDS |
Unrestricted funds £ 1,139,036 2,541 1,085,563 1,088,104 (2,706) 1,085,398 2,224,434 (720,170) 1,504,264 |
Restricted funds £ - - 2,800 2,800 - 2,800 2,800 - 2,800 |
2022 Total funds £ 1,139,036 2,541 1,088,363 1,090,904 (2,706) 1,088,198 2,227,234 (720,170) 1,507,064 1,504,264 2,800 1,507,064 |
2021 Total funds £ 1,181,407 2,240 1,117,498 1,119,738 (5,292) 1,114,446 2,295,853 (720,170) 1,575,683 1,574,083 1,600 1,575,683 |
|---|---|---|---|---|
The financial statements were approved by the Board of Trustees and authorised for issue on ............................................. and were signed on its behalf by:
............................................. Sister D D Molle - Trustee
The notes form part of these financial statements
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MISSIONARY SISTERS OF THE SACRED HEART
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2022
1. ACCOUNTING POLICIES
Basis of preparing the financial statements
The financial statements of the charity, which is a public benefit entity under FRS 102, 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)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Charities Act 2011. The financial statements have been prepared under the historical cost convention.
Income
All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.
Expenditure
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.
Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Freehold property - 2% on cost
Taxation
The charity is exempt from tax on its charitable activities.
Fund accounting
Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.
Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.
Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.
2. OTHER TRADING ACTIVITIES
| OTHER TRADING ACTIVITIES | ||
|---|---|---|
| 2022 | 2021 | |
| £ | £ | |
| Pensions | 6,989 | 6,507 |
continued...
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MISSIONARY SISTERS OF THE SACRED HEART
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31ST DECEMBER 2022
3. INVESTMENT INCOME
| INVESTMENT INCOME | ||
|---|---|---|
| 2022 | 2021 | |
| £ | £ | |
| Investment income | 1,482 | 101 |
4. TRUSTEES' REMUNERATION AND BENEFITS
There were no trustees' remuneration or other benefits for the year ended 31st December 2022 nor for the year ended 31st December 2021.
Trustees' expenses
There were no trustees' expenses paid for the year ended 31st December 2022 nor for the year ended 31st December 2021.
5. TANGIBLE FIXED ASSETS
| COST At 1st January 2022 and 31st December 2022 DEPRECIATION At 1st January 2022 Charge for year At 31st December 2022 NET BOOK VALUE At 31st December 2022 At 31st December 2021 6. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR 2022 £ Prepayments 2,541 |
Freehold property £ 2,118,520 |
|---|---|
| 937,113 42,371 |
|
| 979,484 | |
| 1,139,036 | |
| 1,181,407 | |
| 2021 £ 2,240 |
continued...
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MISSIONARY SISTERS OF THE SACRED HEART
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31ST DECEMBER 2022
| 7. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR 2022 £ Other creditors - Accruals and deferred income 2,706 2,706 8. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR 2022 £ Other loans (see note 9) 720,170 9. LOANS An analysis of the maturity of loans is given below: 2022 £ Amounts falling due in more than five years: Repayable by instalments: Loan from Mother House (Rome) 720,170 10. MOVEMENT IN FUNDS Net movement At 1/1/22 in funds £ £ Unrestricted funds General fund 1,574,083 (69,819) Restricted funds The Dubbo Mission 1,600 1,200 TOTAL FUNDS 1,575,683 (68,619) Net movement in funds, included in the above are as follows: Incoming Resources resources expended £ £ Unrestricted funds General fund 53,228 (123,047) Restricted funds The Dubbo Mission 1,200 - TOTAL FUNDS 54,428 (123,047) |
2021 £ 132 5,160 5,292 2021 £ 720,170 2021 £ 720,170 At 31/12/22 £ 1,504,264 2,800 1,507,064 Movement in funds £ (69,819) 1,200 (68,619) |
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continued...
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MISSIONARY SISTERS OF THE SACRED HEART
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31ST DECEMBER 2022
10. MOVEMENT IN FUNDS - continued
Comparatives for movement in funds
| At 1/1/21 £ Unrestricted funds General fund 1,650,145 Restricted funds The Dubbo Mission 400 TOTAL FUNDS 1,650,545 Comparative net movement in funds, included in the above are as follows: Incoming resources £ Unrestricted funds General fund 11,993 Restricted funds The Dubbo Mission 1,200 TOTAL FUNDS 13,193 |
Net movement in funds £ (76,062) 1,200 (74,862) Resources expended £ (88,055) - (88,055) |
At 31/12/21 £ 1,574,083 1,600 1,575,683 Movement in funds £ (76,062) 1,200 (74,862) |
|---|---|---|
The Dubbo is a restricted fund specifically for the mission in Dubbo, Ethiopia.
11. RELATED PARTY DISCLOSURES
There were no related party transactions for the year ended 31st December 2022.
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MISSIONARY SISTERS OF THE SACRED HEART
DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31ST DECEMBER 2022
| INCOME AND ENDOWMENTS Donations and legacies Donations Subscriptions Other trading activities Pensions Investment income Investment income Charitable activities Rent for keyworker accommodation Total incoming resources EXPENDITURE Charitable activities Sisters' maintenance Religious costs General admin Sisters' personal maintenance Ordinary maintenance Accountancy and independent examination Depreciation of tangible fixed assets Total resources expended Net expenditure |
2022 £ 6,800 (2,769) 4,031 6,989 1,482 41,926 54,428 3,417 8,110 8,947 583 56,973 2,646 42,371 123,047 123,047 (68,619) |
2021 £ 1,800 - 1,800 6,507 101 4,785 13,193 5,151 2,785 3,343 627 32,062 1,716 42,371 88,055 88,055 (74,862) |
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This page does not form part of the statutory financial statements
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