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2022-12-31-accounts

The Religious Sisters of Charity Charitable Trust

Annual Report and Accounts

31 December 2022

Charity Registration Numbers 231323 (England and Wales) and SC039185 (Scotland)

Contents

Reports
Reference and administrative information 1
Trustees’ report 2
Independent auditor’s report 17
Accounts
Statement of financial activities 22
Balance sheet 23
Statement of cash flows 24
Principal accounting policies 25
Notes to the accounts 31

The Religious Sisters of Charity Charitable Trust

Reference and administrative details about the charity, its trustees and its advisers

Trustees Sister Mary Teresa Clarke
Sister Patricia Lenihan
Sister Alice McGilly
Sister Catherine Egan
Provincial Superior Sister Mary Teresa Clarke
Provincial Bursar Sister Alice McGilly
Administrative address St Joseph’s Convent
36 Mare Street
Hackney
London
E8 4AD
Telephone 020 8510 3675
E-mail bursar@rsoccaritas.org
Charity registration number
(England and Wales) 231323
Charity registration number (Scotland) SC039185
Auditor Buzzacott LLP
130 Wood Street
London
EC2V 6DL
Principal bankers HSBC Bank plc
Fenton House
85-89 New London Road
Chelmsford
Essex
CM2 0PP
Investment managers BlackRock Investment Management Limited
33 King William Street
London
EC4R 9AS
Solicitors Stone King LLP
Upper Borough Court
Upper Borough Walls
Bath
BA1 1RG

The Religious Sisters of Charity Charitable Trust 1

Trustees’ report Year to 31 December 2022

The trustees present their report together with the accounts of The Religious Sisters of Charity Charitable Trust (the “charity”) for the year ended 31 December 2022.

The accounts have been prepared in accordance with the accounting policies set out on pages 25 to 30 of the attached accounts and comply with the charity’s trust deed, the Charities Act 2011, the Charities and Trustee Investment (Scotland) Act 2005, regulations applicable to those two Acts and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102).

Introduction

The Religious Sisters of Charity (the “Congregation”) is a Roman Catholic religious congregation, founded by Venerable Mary Aikenhead in Ireland in 1815 where its Generalate is still located. With her Sisters she visited and ministered to the poor in their homes, she visited prisons, started schools and eventually realised her dream: a hospital for the poor where they could be treated with dignity and compassion. Today we carry on this work where possible. The Congregation is governed by its own constitution.

The accounts accompanying this report deal only with the affairs of the charitable trust on which the Congregation has invested all Provincial and Community property used for its purpose in England and Scotland. The charity is governed by a Trust Deed dated 17 December 1962 and is registered with the Charity Commission in England and Wales (Charity Registration Number 231323) and with the Office of the Scottish Charities Regulator in Scotland (Charity Registration Number SC039185).

Mission

The English/Scottish Province of the Congregation of the Religious Sisters of Charity aims to support the religious and other charitable works in the service of the poor, carried out by the members of the Congregation, and to care for those members throughout their lives with the Congregation.

When setting the objectives and planning the work of the charity for the year, and when encouraging the work of the individual sisters, the trustees have given careful consideration to the Charity Commission's guidance on

public benefit.

These ministries of the sisters of the Congregation, all of which benefit numerous members of the general public, can be defined under the following areas:

Worship and prayer

Our prayer life is a very important aspect of our daily living. Our sisters devote time each day to both private and community prayer and with the wider community in the parishes where they live in celebration of the Eucharist. A period of six to eight days is set aside each year for individual retreat. Sisters also celebrate and pray with the wider community in gatherings of people of all faiths and none and are just present and available to listen and guide people with their daily problems and concerns.

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Trustees’ report Year to 31 December 2022

Mission (continued)

Health care

Our mission is to bring the healing ministry of Christ to all who seek our care. A number of our sisters continue to work in Management and Chaplaincy within our associated Hospices.

Our Vision is to strengthen and promote the healing mission of Christ through the provision of Catholic health care within our society. Drawing on the commitment and talents of our people, we will continue to form relevant and strategic relationships so that our health service continues to grow and provide quality care always with a special focus on caring for the poor, the disadvantaged and the marginalised.

Our core values urge us to strive to respect the uniqueness of each person created in the image and likeness of God; to accept people as they are, act with integrity, respecting the rights of all; to excel in all aspects of our healing ministry and create community characterised by harmony and collaboration.

Social and pastoral care

Many of our sisters continue to work in various forms of social and pastoral work in England and Scotland and covering all aspects of Church life. The sisters are a listening ear for those living alone, a sympathetic presence for the sick, isolated, fearful, bereaved and the lonely. We seek to reach out to the poor and marginalised in the areas where we live, regardless of their beliefs, gender or personal circumstances.

Education

Currently through our Parish Ministries we continue to work to support vulnerable children and their families in Schools The sisters working in Hospices continue to support staff by being involved in the various Education programmes centred on our Mission Statement and Core Values.

Activities, specific objectives and relevant policies

Activities and specific objectives

As stated above under “Mission”, the activities of the charity are to care for members of the Congregation and to enable them to carry out their ministries which fall within five principal areas: caring for members of the Congregation, worship and prayer, health care, social and pastoral care, and education. Each of these is considered in turn below.

Caring for members of the Congregation

In common with many religious congregations in England today, the age profile of the members of our Congregation in this Province is increasing as existing members grow older and the number of new vocations becomes minimal. We now have 26 sisters in the Province. The average age of the sisters in this Province at present is 81 years.

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Trustees’ report Year to 31 December 2022

Activities, specific objectives and relevant policies (continued)

Activities and specific objectives (continued)

Caring for members of the Congregation (continued)

The Congregation has an obligation, both moral and legal, to provide for its members, none of whom have resources of their own and all of whom have devoted a significant part of their lives to working either on a voluntary basis or in a paid capacity, for the poor and marginalised in society. As the age profile increases so too does the need to provide increasing and increasingly expensive care to the sisters. We have 10 members receiving care in our communities in London and Scotland. The trustees expect this number to increase over the next decade. In line with this, the trustees are giving careful consideration to the impact of this on individual members of the Province, the property requirements and the financial implications for the Congregation.

Worship and prayer

We, as a Congregation, are committed to spreading the Gospel through our shared worship with the local communities wherever we live, assisting them through prayer, study of the scriptures, public worship, music and the sacraments. The sisters are involved in a number of activities including:

Health care

Our healthcare facilities in England and Scotland have been set up as separate charitable companies. Some sisters serve as trustees on each of the three hospice Boards.

Social and pastoral work

The following are some examples of the social and pastoral work undertaken by individual sisters:

The Religious Sisters of Charity Charitable Trust 4

Trustees’ report Year to 31 December 2022

Activities, specific objectives and relevant policies (continued)

Activities and specific objectives (continued)

Social and pastoral work (continued)

The aims of the trustees with regard to social and pastoral care include:

Education

Currently we have no sisters formally involved in Education. However, our sisters support and participate in the provision of various programmes in parishes and associated hospices.

The trustees aim to enable members to continue to be involved, where possible, in the religious education of the children who do not attend Catholic schools, in the parishes where we live and work.

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Trustees’ report Year to 31 December 2022

Activities, specific objectives and relevant policies (continued)

Review of activities

Worship and prayer

Our retired sisters commit themselves to prayerfully support the endeavours of the Congregation daily.

Our sisters continue to be available and endeavour to support the Local Parish in a variety of roles. Participation in Parish Liturgies and our roles as Eucharistic Ministers give witness to our continuing commitment to spreading the gospel.

Sisters involved in parish work give a large part of their time to visiting the frail elderly in their homes and bringing them Communion. This can often be the only human contact in the week for some individuals.

Our Sisters working in Parishes, continue to provide Bereavement Care to those alone and who are isolated, sometimes over a long period of time.

Care of members of the Congregation

Our elderly sisters have devoted their lives to caring for others, working either in the education, health care or pastoral social work field. They continue to support those Ministries by prayer and intercession.

Sisters are supported to remain as active as possible and enjoy the various activities available. There are also the lovely secure gardens surrounding the convent where they can relax and enjoy the sunshine!

In 2022 after much reflection and consultation, the trustees, anticipating that increasing numbers of our sisters would need care and support and endeavouring to provide this care on a professional and stable basis, have engaged Neylon’s Facility Management to manage the Care Unit and provide Facility Management for our Convent at St Joseph’s in Hackney, London.

We are very grateful to the Management and staff of Neylon's who continue to accommodate and support our sisters in care and retirement.

Chaplaincy

This ministry involves the provision of spiritual, pastoral and religious care to patients, relatives and staff across the hospice and hospitals where our sisters visit.

The Chaplaincy Team in hospices are always happy to meet with any patient or family member who may feel vulnerable or low in spirits or who just wishes to talk.

A number of sisters are involved in this ministry,

and while one sister receives a salary, others now work in a voluntary capacity.

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Trustees’ report Year to 31 December 2022

Activities, specific objectives and relevant policies (continued)

Review of activities (continued)

Social and pastoral work

Throughout the year, our sisters continued to carry out various forms of social and pastoral work, many of them in a voluntary capacity.

For sisters working in Parishes this may involve just being available, networking with community groups, working with families, participating in prayer groups, working for justice and peace or with organisations such as CAFOD, acting as ministers of the Eucharist, visiting the housebound, helping with preparation for the sacraments and assisting in the general work of a parish.

Education

Currently, we are no longer involved in formal education. However, a few of our members work alongside Parish and other initiatives.

Volunteering

Throughout the year, 15 sisters worked in a voluntary capacity, assisting the poor and marginalised and those in need. The majority of sisters receive no financial contribution for this work which contributes to the overall achievement of the charity’s objectives.

In addition, the sisters are involved in the administration work of the Province and charity, without which the charity would not be able to function as effectively or fully as it does. It is impossible to measure the amount of time sisters actually spend in voluntary work in these areas. A few Sisters work in more than one area, giving their services where necessary.

During 2022, the shadow of the Covid Pandemic cleared allowing sisters once again to reach out and support vulnerable individuals in person. However, using the skills they learned during 2021, they have continued to employ technology wherever possible to aid them in their Ministries.

Investment policy

The charity’s investments are managed by BlackRock Investment Management Limited. There are no restrictions on the charity’s power to invest.

The investment strategy is set out by the trustees and takes into account income requirements, the risk profile and the investment managers’ view of the market prospects in the medium term. The overall investment policy is to maximise total returns through a diversified portfolio, aiming to provide the level of income advised by the trustees and, at the same time, with a view to ensuring that capital appreciation of the fund exceeds inflation over any five year period.

The charity’s policy carries the following ethical restrictions:

  1. Investment in any activity which is in conflict with the ‘sanctity of life’, as identified through the use of the Ethical Investment Research Services;

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Trustees’ report Year to 31 December 2022

Activities, specific objectives and relevant policies (continued)

Investment policy (continued)

  1. Any tobacco companies;

  2. Any company with over 10% of turnover from military sales; and

  3. Any company producing pornography.

In addition, at our Chapter in 2019, we also agreed we would divest from fossil fuels.

Investment performance

At 31 December 2022, the charity had listed investments with a market value of £13,947,130 (2021 - £16,368,837). There are no restrictions on the charity's power to invest.

Representatives of the trustees meet with the investment managers regularly to review the performance of the portfolio and the investment strategy.

Financial report for the year

A summary of the year’s results can be found on page 22 of this annual report and accounts.

In the year to 31 December 2022, total income amounted to £1,177,542 (2021 - £2,830,535) with expenditure being £1,398,092 (2021 - £3,673,177).

The charity's income for the year ended 31 December 2022 comprises investment income, donations including sisters' salaries and pensions, and income from the sale of tangible fixed assets. Expenditure comprises donations and the costs of supporting members of the Congregation and their ministry. Donations for the year to 31 December made to the Congregation’s Generalate were £25,000 (2021: £2,531,914 following the disposal of a property).

Net expenditure before investment losses for the year amounted to £220,550 (2021 - net expenditure of £842,642). Investment losses were £2,021,707 (2021 – gains of £1,485,849) and the net expenditure and decrease in funds for the year, therefore, amounted to £2,242,257 (2021 – net income and net increase in funds of £643,207).

The beneficiaries of our charitable works can be assured that all the income of the charity must be applied for charitable purposes in furtherance of the charity’s object of furthering the Roman Catholic faith. The charity benefits from tax exemption on income from its activities and on its investment income and gains provided these are applied for its charitable aims. As a charity, it is also entitled to a reduction of 80% on business rates on the property it occupies for its charitable purposes.

The financial benefits we receive resulting from these exemptions are used for the purpose of furthering the Roman Catholic faith by enabling the sisters to live out our faith and to put that faith into practice through a wide variety of religious and other charitable works.

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Trustees’ report Year to 31 December 2022

Financial report for the year (continued)

Because of the nature of the charity’s activities, we are unable to reclaim the VAT input tax on our costs as income is exempt for VAT purposes. The charity has also paid tax as an employer through the national insurance contributions it makes.

The charity brings very substantial benefits to local communities and society in general through the social and pastoral work provided by the sisters mainly on a voluntary basis.

The charity also creates social assets without cost to the Exchequer through the sisters’ links with older people within the community and through the significant amount of voluntary work carried out by the sisters.

Reserves policy and financial position

Reserves policy

The trustees have examined the requirement for free reserves i.e., those unrestricted funds not invested in tangible fixed assets, designated for specific purposes or otherwise committed.

The trustees consider that, given the nature of the charity’s work and its future commitments, the level of free reserves should remain relatively high at between 12 and 24 months’ recurring expenditure on general funds. The trustees reached this conclusion after assessing their recurring commitment to: the care of members of the Congregation - many of whom as they grow older will require increased and increasingly expensive healthcare; the need to maintain the charity’s freehold properties - many of which are relatively old - in a high level of maintenance and order; and to healthcare services generally. In addition, the trustees feel it prudent to have sufficient reserves at any point in time to be able to respond to unforeseen emergencies.

The trustees are of the opinion that this level of reserves provides sufficient flexibility to cover shortfalls in incoming resources, adequate working capital to cover core costs, and will allow the charity to meets its commitments to its work in healthcare and to members of the Congregation and will enable the charity to cope and respond to unforeseen emergencies.

Financial position

The balance sheet shows total reserves of £21.6 million (2021 - £23.8 million).

£7.1 million (2021 - £6.7 million) is represented by tangible fixed assets used by the sisters. A decision was made to separate this fund from the general funds in recognition of the fact that the tangible fixed assets are used in the day to day work of the charity and the fund cannot therefore be easily realised if needed to meet future contingencies. In addition, £389,762 is represented by a property used for purposes consistent with the charity’s objectives but by another organisation. This is shown on the balance sheet as the programme related investment fund.

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Trustees’ report Year to 31 December 2022

Reserves policy and financial position (continued)

Financial position (continued)

Actuarial calculations performed during the period indicate that £10.7 million is required to fund the long term care of the members of the Congregation living in England and Wales. Given the increasing age profile of the sisters and the lack of new vocations, this sum will provide modest resources to look after the sisters, many of whom will need increasing support and increasingly expensive residential and nursing care. In 2005, the Congregation’s Generalate donated £3.7 million specifically for this purpose. This money has been utilised in part but the balance is held within a restricted “long term care fund” which had a market value of £3.9 million (2021 - £4.4 million) at the year end. The balance of the £6.8 million comprises a designated fund of £6.8 million.

£0.25 million (2021 - £0.25 million) has been set aside or designated for the refurbishment and furnishing of accommodation for elderly members of the Congregation.

Funds which are available to support the work of the sisters in the future are those shown on the balance sheet as general funds or ‘free reserves’ of £3,160,356 (2021 - £4,527,949). At 31 December 2022, the charity’s free reserves fall within the parameters of the above policy. The trustees are content with this position at the present time. The trustees are conscious of the general economic and political uncertainties that exist globally and of the impact these uncertainties may have on world stock markets and the economy more generally.

In particular, the level of reserves is deemed sufficient when considered in the light of the uncertainties arising due to the current macroeconomic and geopolitical concerns.

Future plans.

The trustees will continue to work closely with Neylon’s Facility Management to provide the ongoing facility and care management of the St Joseph’s Convent.

The trustees will continue the process of converting the charitable trust into a Charitable Incorporated Organisation (CIO) which will take place over the course of 2023, in order to modernise the structure, constitution and governance of the charity.

Governance, structure and management

Governance

In terms of Canon law, the Congregation is governed at an international level by the Superior General and her General Leadership Team at our Generalate in Dublin, Ireland. They are elected every six years at a General Chapter, by delegates from each of the Provinces and Regions. The English/Scottish Province is governed by the Provincial and her Council. The Provincial and her Council are appointed by the General Leadership Team, after consultation with the members of the English/Scottish Province. Members of the Provincial Council are chosen for their personal qualities, their understanding and experience of the ministries of the sisters throughout the Province, and to secure good skills mix among them.

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Trustees’ report Year to 31 December 2022

Governance, structure and management (continued)

Governance (continued)

Each community in the Province has a local leader, who is appointed by the Provincial. The Provincial is required to visit each community at least once a year. The Superior General or one of her team will visit the communities at least once every six years.

In terms of Civil law the charity is governed by a trust deed dated 17 December 1962 and is a registered charity – Charity Registration No 231323 (England and Wales) and Charity Registration No SC039185 (Scotland). The trustees of the province, are the Provincial, the Congregational Leader and two members of the Provincial Council. Being members of the Congregation, the trustees’ living and personal expenses are paid by the charity, but they do not receive any remuneration for their services as trustees. As all trustees are members of the Congregation, they have a detailed knowledge of the works of the charity and its structure. On being appointed, the new trustees spend one full day with the Superior General. They also meet with the Congregation’s legal, accounting, investment and property advisers during the course of a day to obtain a full briefing of their responsibilities and the charity’s position.

The names of the trustees who served during the year are set out as part of the reference and administrative details on page 1 of this annual report and accounts and brief biographical details on each of the current trustees are given below.

Sister Mary Teresa Clarke, RSC

Sister Mary Teresa RSC was appointed Provincial Leader for the English and Scottish Province of the Congregation in January 2021. Sister Mary Teresa joined the Religious Sisters of Charity in 1977 and spent her early career working in Palliative Care Nursing and Management, in St Margaret’s and St Andrew’s Hospices. Sister later served as CEO in St Joseph’s Hospice. During this time, she studied for a Diploma in Pastoral Theology (Heythrop College) and later, an MBA (Public Service Management). Sister Mary Teresa spent over 10 years employed in Her Majesty’s Prison Service as a Roman Catholic Chaplain in the North West. In recent years Sister has worked in School Chaplaincy.

Sister Patricia Lenihan

Sister Patricia Lenihan is the Congregational Leader of the Religious Sister of Charity. She is originally from London, England but now living in Dublin, Ireland. She has a BA in Theology for Ministry from the University of London; an MA in Learning Disability Studies from Salford University, and a post-graduate Diploma in Web Design and Development from the University of London. In 2007 she was elected to serve on the General Leadership Team of the Congregation and was appointed Congregational Leader in July 2019.

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Trustees’ report Year to 31 December 2022

Governance, structure and management (continued)

Governance (continued)

Sister Alice McGilly, RSC

Sister Alice originally from Northern Ireland entered the Religious Sisters of Charity in Dublin. Her ministry has been in health care throughout the years. Except for a short period in Nigeria and latterly caring for frail elderly sisters, she served in various roles in the Congregations five Hospices - Cork and Dublin in Ireland, Clydebank and Airdrie in Scotland and Hackney, London. Her nursing qualifications were obtained in Belfast receiving, now known as, RGN and RM. In preparation for Palliative Care Community Nursing in London she did a District Nursing course. In later years she saw the need for further studies and did an MSc in Health Care Management. During 2020 she was appointed Province Bursar and continues to reside in the Hackney Community, London.

Sister Catherine Egan, RSC

Sister Catherine Egan joined the Religious Sisters of Charity in October 1967. Having qualified as a Nurse in 1980 her career has almost been entirely spent in the field of palliative care within the hospice setting. This included time as a Ward Sister at St Joseph’s Hospice, London and moving to St Andrew’s Hospice, Airdrie, Scotland in 1989 as Matron. Currently, she is the Director of Mission and a Member of the Senior Management Team at St Andrew’s Hospice and with additional responsibility for the pastoral care of sick within the Hospice.

Statement of trustees’ responsibilities

The trustees are responsible for preparing the trustees’ report and the accounts in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). The law applicable to charities in England and Wales and in Scotland requires the trustees to prepare accounts for each financial year which give a true picture of the state of affairs of the charity at the end of the year, and of the income and expenditure for that period. In preparing the accounts giving a true and fair view, the trustees are required to:

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Trustees’ report Year to 31 December 2022

Governance, structure and management (continued)

Statement of trustees’ responsibilities (continued)

The trustees are responsible for keeping proper accounting records that are sufficient to show and explain the charity’s transactions and disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the accounts comply with the Charities Act 2011, applicable Charity (Accounts and Reports) Regulations in England and Wales, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2005 and the provisions of the charity’s trust deed. They are also responsible for safeguarding the assets of the charity and hence for taking responsible steps for the prevention and detection of fraud and other irregularities.

Structure and management reporting

The trustees are ultimately responsible for the policies, activities and assets of the charity. They meet monthly to review developments with regard to the charity, its members and its activities and make any important decisions. When necessary, the trustees seek advice and support from our professional advisors including property consultants, investment managers, accountants and solicitors. The day to day management of the charity’s activities, and the implementation of policies, is delegated to the appropriate members of the Congregation.

We now have 26 sisters at present in the English/Scottish Province living in seven different locations. The communities are located in the poorer areas of the cities and towns, in order to enable the sisters to provide help for the poor and marginalised. In general, these areas are socially deprived with people needing pastoral care and support, which is given voluntarily by the sisters. The local leader in each Community is responsible for both the needs and the care of the sisters in her community and she liaises regularly with the Provincial. All local leaders meet together twice a year with the trustees to discuss developments and future plans.

Key management personnel

The trustees consider that they comprise the key management of the charity in charge of directing and controlling, running and operating the charity on a day to day basis.

All trustees are members of the Congregation and whilst their living and personal expenses are borne by the charity, they receive no remuneration or reimbursement of expenses in connection with their duties as trustees or work as key management.

Working with other organisations

The charity works closely with a number of other charities and public bodies in the field of providing pastoral care and support, this work is carried out on a voluntary basis.

In all cases, working together with other charities and public bodies enhances communication and understanding thus enabling services to these people to be provided more efficiently and avoiding duplication of effort.

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Trustees’ report Year to 31 December 2022

Governance, structure and management (continued)

Working with other organisations (continued)

Examples of some of the organisations, the sisters have worked with which the charity has cooperated during the year are as follows:

Risk management

The trustees recognise their responsibility for the management of risks faced by the charity, the Congregation in England and Scotland and its individual members.

The areas identified for particular attention within our risk management strategy are:

Governance and management looks at the risk of the Congregation, and hence the charity, suffering from a lack of direction, at the skills and training of its members and staff, and the good use of its resources.

Operational looks at the risks inherent in the charity’s activities including the care of the older and frail sisters, the members of the Congregation engaging in inappropriate activities, the unsuitability of buildings, poor maintenance, shortcomings in the services provided, difficulties with staff, poor health and safety, lack of a disaster recovery plan, etc.

Financial risks include those arising as a result of poor budgetary control, inappropriate spending, poor accounting, inappropriate investment policies, etc.

Reputational looks at possible damage to the Congregation’s, and hence the charity’s, reputation.

Regulatory looks at the effects of government policies, the consequences of non-compliance with laws and regulations and poor risk assessment.

Having assessed the major risks to which the charity is exposed, the trustees believe that by monitoring reserve levels, by ensuring controls exist over key financial systems, and by examining the operational and business risks faced by the charity, they have established effective systems to mitigate those risks.

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Trustees’ report Year to 31 December 2022

Governance, structure and management (continued)

Risk management (continued)

The key risks for the charity, as identified by the trustees, are described below together with the principal ways in which they are mitigated:

The Catholic Safeguarding Standards Agency (CSSA).

The Scottish Safeguarding Standards Agency (SCSSA)

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Trustees’ report Year to 31 December 2022

Governance, structure and management (continued)

Risk management (continued)

The charity aims to achieve best practice in the way in which it communicates with donors and other supporters. It takes care with both the tone of its communications and the accuracy of its data to minimise the pressures on supporters. It applies best practice to protect supporters’ data and never sells data, it never swaps data and ensures that communication preferences can be changed at any time. The charity does not actively engage in fundraising activities and does not employ the services of professional fundraisers. The charity undertakes to react to and investigate any complaints regarding its fundraising activities and to learn from them and improve its service. During the year, the charity received no complaints about its fundraising activities.

To members of the Province and all colleagues.

The trustees wish to record their thanks for the professionalism and commitment of all their colleagues and the individual sisters in this Province. Their dedication and continued service are very much appreciated.

Signed on behalf of the trustees:

Sister Mary Teresa Clarke

Trustee

Approved by the trustees on: 5th September 2023

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Independent auditor’s report 31 December 2022

Independent auditor’s report to the trustees of The Religious Sisters of Charity Charitable Trust

Opinion

We have audited the accounts of The Religious Sisters of Charity Charitable Trust (the ‘charity’) for the year ended 31 December 2022 which comprise the statement of financial activities, the balance sheet, the statement of cash flows, the principal accounting policies and the notes to the accounts. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the accounts:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor’s responsibilities for the audit of the accounts section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the accounts in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the accounts, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the accounts is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity’s ability to continue as a going concern for a period of at least twelve months from when the accounts are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

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Independent auditor’s report 31 December 2022

Other information

The trustees are responsible for the other information. The other information comprises the information included in the Annual Report and Accounts, other than the accounts and our auditor’s report thereon. Our opinion on the accounts does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the accounts, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the accounts or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the accounts or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities Act 2011 and the Charities Accounts (Scotland) Regulations 2006 (as amended) requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement, the trustees are responsible for the preparation of the accounts and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of accounts that are free from material misstatement, whether due to fraud or error.

In preparing the accounts, the trustees are responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.

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Independent auditor’s report 31 December 2022

Auditor’s responsibilities for the audit of the accounts

Our objectives are to obtain reasonable assurance about whether the accounts as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these accounts.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.

How the audit was considered capable of detecting irregularities including fraud

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

We assessed the susceptibility of the charity’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

The Religious Sisters of Charity Charitable Trust 19

Independent auditor’s report 31 December 2022

Auditor’s responsibilities for the audit of the accounts (continued)

How the audit was considered capable of detecting irregularities including fraud (continued)

To address the risk of fraud through management bias and override of controls, we:

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the trustees and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

We did not identify any irregularities, including fraud.

A further description of our responsibilities for the audit of the accounts is located on the Financial Reporting Council’s website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

The Religious Sisters of Charity Charitable Trust 20

Independent auditor’s report 31 December 2022

Use of our report

This report is made solely to the charity’s trustees, as a body, in accordance with section 144 of the Charities Act 2011 and with regulations made under section 154 of that Act and in accordance with section 44 (I)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and Regulation 10 of the Charities Accounts (Scotland) Regulations 2006. Our audit work has been undertaken so that we might state to the charity’s trustees those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Buzzacott LLP Statutory Auditor 130 Wood Street London EC2V 6DL

27 September 2023

Buzzacott LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006

The Religious Sisters of Charity Charitable Trust 21

Statement of financial activities Year to 31 December 2022

Notes
Un-
restricted
funds
£		 Restricted
funds
£		 2022
Total
funds
£		 Un-
restricted
funds
£		 Restricted
funds
£		 2021
Total
funds
£
Income from:
Donations and legacies
1
Investment income and interest
receivable
2
Other sources
. Surplus on disposal of tangible
fixed assets
10
. Miscellaneous sources
Total income
Expenditure on:
Charitable activities
. Charitable grants and donations
3
. Support of members of the
Congregation and their ministry
4
Total expenditure
Net (expenditure) income before
transfers and before (losses)
gains on investments
6
Transfer between funds
Net (expenditure) income before
(losses) gains on investments
Net (losses) gains on
investments
12
Net movement in funds
Reconciliation of funds:
Total funds brought forward at
1 January 2022
Total funds carried forward at
31 December 2022
347,689

314,572

14,301
2,362		 379,950
118,668
—
—		 727,639
433,240
14,301
2,362		 355,649
310,733
2,046,576
4,125		 —
113,452
—
—		 355,649
424,185
2,046,576
4,125
678,924 498,618 1,177,542 2,717,083 113,452 2,830,535

25,567
1,253,857		 —
118,668		 25,567
1,372,525		 2,534,743
1,024,982		 —
113,452		 2,534,743
1,138,434
1,279,424 118,668 1,398,092 3,559,725 113,452 3,673,177
(600,500)
379,950		 379,950
(379,950)		 (220,550)
—		 (842,642)
—		 —
—		 (842,642)
—
(220,550)
(1,468,350)		 —
(553,357)		 (220,550)
(2,021,707)		 (842,642)
1,089,419		 —
396,430		 (842,642)
1,485,849
(1,688,900)
19,374,636		 (553,357)
4,438,975		 (2,242,257)
23,813,611		 246,777
19,127,859		 396,430
4,042,545		 643,207
23,170,404
17,685,736 3,885,618 21,571,354 19,374,636 4,438,975 23,813,611

All activities of the charity derived from continuing operations during the above two financial years.

All recognised gains and losses are included in the statement of financial activities.

The Religious Sisters of Charity Charitable Trust 22

Balance sheet 31 December 2022

Notes 2022
£		 2022
£		 2021
£		 2021
£
Fixed assets
Tangible assets
10
Programme related investments
11
Investments
12
Current assets
Debtors
13
Cash at bank and in hand
Liabilities
Creditors: amounts falling due within
one year
14
Net current assets
Total net assets
Represented by:
The funds of the charity
Restricted funds
15
Unrestricted funds
. General funds
. Tangible fixed assets fund
16
. Programme related investment fund
17
. Designated funds
18
Total funds		 145,601
234,189		 7,135,618
389,762
13,947,130		 123,832
474,757		 6,656,925
389,762
16,368,837
21,472,510
98,844		 23,415,524
398,087
379,790
(280,946)		 598,589
(200,502)
21,571,354 23,813,611
3,885,618
3,160,356
7,135,618
389,762
7,000,000		 4,438,975
4,527,949
6,656,925
389,762
7,800,000
21,571,354 23,813,611

Approved by the trustees and signed on their behalf by:

Sister Mary Teresa Clarke

Trustee

Approved by the trustees on: 5th September 2023

The Religious Sisters of Charity Charitable Trust 23

Statement of cash flows Year to 31 December 2022

Notes
2022
£		 2021
£
Cash flows from operating activities:
Net cash used in operating activities
A
Cash flows from investing activities:
Investment income and interest received
Proceeds from the disposal of tangible fixed assets
Purchase of tangible fixed assets
Proceeds from the disposal of investments
Net cash provided by investing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents at 1 January 2022
B
Cash and cash equivalents at 31 December 2022
B

**(456,822) **		 (3,204,934)


431,371
14,301
(629,418)
400,000		 421,242
2,682,881
(68,608)
300,000
216,254 3,335,515

(240,568)


474,757
 130,581
344,176

234,189		 474,757

Notes to the cash flow statement for the year to 31 December 2022

A Reconciliation of net movement in funds to net cash used in operating activities

2022
£		 2021
£
Net movement in funds (as per the statement of financial activities)
Adjustments for:
Depreciation charge
Losses (gains) on investments
Investment income and interest receivable
Surplus on disposal of tangible fixed assets
Increase in debtors
Increase (decrease) in creditors
Net cash used in operating activities		 (2,242,257)
150,725
2,021,707
(433,240)
(14,301)
(19,900)
80,444		 643,207
144,591
(1,485,849)
(424,185)
(2,046,576)
(11)
(36,111)
(456,822) (3,204,934)

B Analysis of cash and cash equivalents

Analysis of cash and cash equivalents
2022
£
234,189		 2021
£
Cash at bank and in hand 474,757

No separate reconciliation of net debt has been prepared as there is no difference between the net cash (debt) of the charity and the above cash and cash equivalents.

The Religious Sisters of Charity Charitable Trust 24

Principal accounting policies 31 December 2022

The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the accounts are laid out below.

Basis of preparation

These accounts have been prepared for the year to 31 December 2022 with comparative information provided for the year to 31 December 2021.

The accounts have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant accounting policies below or the notes to these accounts.

The accounts have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (Charities SORP FRS 102) issued on 16 July 2014, the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), the Charities Act 2011 and the Charities and Trustee Investment (Scotland) Act 2005 and applicable Charities Accounts (Scotland) Regulations.

The charity constitutes a public benefit entity as defined by FRS 102.

The accounts are presented in sterling and are rounded to the nearest pound.

Critical accounting estimates and areas of judgement

Preparation of the accounts requires the trustees to make significant judgements and estimates.

The items in the accounts where these judgements and estimates have been made include:

Assessment of going concern

The trustees have assessed whether the use of the going concern assumption is appropriate in preparing these accounts. The trustees have made this assessment in respect to a period of at least one year from the date of approval of these accounts.

The Religious Sisters of Charity Charitable Trust 25

Principal accounting policies 31 December 2022

Assessment of going concern (continued)

The trustees do not expect material concerns to arise over the charity’s financial position or going concern. The trustees are of the opinion that the charity will have sufficient resources to meet its liabilities as they fall due. The most significant areas of judgement that affect items in the accounts are detailed above.

With regard to the next accounting period, the year ending 31 December 2023, the most significant areas that affect the carrying value of the assets held by the charity are the level of investment return and the performance of the investment markets (see the investment policy and the risk management sections of the trustees’ report for more information).

Income recognition

Income is recognised in the period in which the charity has entitlement to the income, the amount of income can be measured reliably and it is probable that the income will be received.

Income comprises donations, legacies, investment income, interest receivable, the surplus on disposal of tangible fixed assets and miscellaneous income.

Donations, including salaries and pensions of individual religious received under Gift Aid or deed of covenant, are recognised when the charity has confirmation of both the amount and settlement date. In the event of donations pledged but not received, the amount is accrued for where the receipt is considered probable. In the event that a donation is subject to conditions that require a level of performance before the charity is entitled to the funds, the income is deferred and not recognised until either those conditions are fully met, or the fulfilment of those conditions is wholly within the control of the charity and it is probable that those conditions will be fulfilled in the reporting period.

Legacies are included in the statement of financial activities when the charity is entitled to the legacy, the executors have established that there are sufficient surplus assets in the estate to pay the legacy, and any conditions attached to the legacy are within the control of the charity.

Entitlement is taken as the earlier of the date on which either: the charity is aware that probate has been granted, the estate has been finalised and notification has been made by the executor to the charity that a distribution will be made, or when a distribution is received from the estate. Receipt of a legacy, in whole or in part, is only considered probable when the amount can be measured reliably and the charity has been notified of the executor’s intention to make a distribution. Where legacies have been notified to the charity, or the charity is aware of the granting of probate, but the criteria for income recognition have not been met, then the legacy is treated as a contingent asset and disclosed if material. In the event that the gift is in the form of an asset other than cash or a financial asset traded on a recognised stock exchange, recognition is subject to the value of the gift being reliably measurable with a degree of reasonable accuracy and the title of the asset having being transferred to the charity.

Investment income is recognised once the dividend has been declared and notification has been received of the dividend due.

The Religious Sisters of Charity Charitable Trust 26

Principal accounting policies 31 December 2022

Income recognition (continued)

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the bank.

A surplus on the disposal of tangible fixed assets is defined as the difference between the sale proceeds and the net book value of the asset at the time of disposal and after deducting any costs associated with the disposal. The surplus is recognised at the time when legal completion of the sale takes place.

Miscellaneous income is measured at fair value and accounted for on an accruals basis.

Expenditure recognition

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to make a payment to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably.

All expenditure is accounted for on an accruals basis. Expenditure comprises direct costs and support costs. All expenses, including support costs, are allocated or apportioned to the applicable expenditure headings.

Expenditure on charitable activities includes all costs associated with furthering the charitable purposes of the charity through the provision of its charitable activities. Such costs include charitable grants and donations, costs in respect to the support of members of the Congregation and enabling their ministry including governance costs.

Charitable grants and donations are made where the trustees consider there is real need following a review of the details of each particular case and comprise single year payments rather than multi-year grants. Grants and donations are included in the statement of financial activities when approved for payment. Provision is made for grants and donations approved but unpaid at the period end.

Grants payable are included in the statement of financial activities when approved and when the intended recipient has either received the funds or been informed of the decision to make the grant and has satisfied all performance conditions. Grants approved but not paid at the end of the financial year are accrued. Grants where the beneficiary has not been informed or has to fulfil performance conditions before the grant is released are not accrued for but are disclosed as financial commitments in the notes to the accounts.

All expenditure is stated inclusive of irrecoverable VAT.

Support and governance costs

Support costs represent indirect charitable expenditure. In order to carry out the primary purposes of the charity it is necessary to provide support in the form of personnel development, financial procedures, provision of office services and equipment and a suitable working environment.

The Religious Sisters of Charity Charitable Trust 27

Principal accounting policies 31 December 2022

Support and governance costs (continued)

Governance costs comprise the costs involving the public accountability of the charity (including audit costs) and costs in respect to its compliance with regulation and good practice.

All expenditure on support and governance is attributed directly to the charitable activities of supporting members of the Congregation and enabling their ministry and hence there has been no apportionment between headings.

Tangible fixed assets

All assets costing more than £1,500 and with an expected useful life exceeding one year are capitalised.

Land and buildings comprise:

Computer equipment 4 years
Furniture 5 years
Plant and similar assets 15 years

The Religious Sisters of Charity Charitable Trust 28

Principal accounting policies 31 December 2022

Programme related investments

Programme related investments relate to a freehold property used by another charitable organisation for purposes consistent with the charity’s objectives. The property is included at deemed cost.

Fixed asset investments

Listed investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date using the closing quoted market price.

The charity does not acquire put options, derivatives or other complex financial instruments.

As noted above the main form of financial risk faced by the charity is that of volatility in equity markets and investment markets due to wider economic conditions, the attitude of investors to investment risk, and changes in sentiment concerning equities and within particular sectors or sub sectors.

Realised gains (or losses) on investment assets are calculated as the difference between disposal proceeds and their opening carrying value or their purchase value is acquired subsequent to the first day of the financial year. Unrealised gains and losses are calculated as the difference between the fair value at the year end and their carrying value at that date. Realised and unrealised investment gains (or losses) are combined in the statement of financial activities and are credited (or debited) in the year in which they arise.

Debtors

Debtors are recognised at their settlement amount, less any provision for non-recoverability. Prepayments are valued at the amount prepaid. They have been discounted to the present value of the future cash receipt where such discounting is material.

Creditors and provisions

Creditors and provisions are recognised when there is an obligation at the balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Creditors and provisions are recognised at the amount the charity anticipates it will pay to settle the debt. They have been discounted to the present value of the future cash payment where such discounting is material.

Fund structure

General funds represent those monies which are freely available for application towards achieving any charitable purpose that falls within the charity’s charitable objects.

The tangible fixed assets fund comprises the net book value of the charity’s tangible fixed assets, the existence of which is fundamental to the charity being able to perform its charitable work and thereby achieve its charitable objectives. The value represented by such assets should not be regarded, therefore, as realisable.

The Religious Sisters of Charity Charitable Trust 29

Principal accounting policies 31 December 2022

Fund structure (continued)

The programme related investments fund represents the book value of those properties classified as programme related investments i.e. those properties occupied by other organisations at a peppercorn rent or reduced market value rent but used for purposes consistent with the charitable objectives of the charity.

Designated funds comprise monies set aside out of unrestricted general funds for specific future purposes or projects.

Restricted funds comprise monies raised for, or their use restricted to, a specific purpose, or contributions subject to donor imposed conditions.

Services provided by members of the Congregation

For the purposes of these accounts, no value has been placed on administrative and other services provided by the members of the Congregation.

Pension contributions

Contributions in respect of the charity’s defined contribution pension scheme are charged to the statement of financial activities when they are payable to the scheme. The charity’s contributions are restricted to the contributions disclosed in note 7. There were no outstanding contributions at the year-end. The charity has no liability beyond making its contributions and paying across the deductions for the employees’ contributions.

The Religious Sisters of Charity Charitable Trust 30

Notes to the accounts Year to 31 December 2022

1 Income from: donations and legacies

Income from: donations and legacies
Unrestricted
funds
£		 Restricted
funds
£		 2022
Total
funds
£
Salaries and pensions of individual religious received
under Gift Aid or Deed of Covenant
Donations
2022 Total funds		 341,870
5,819		 —
379,950		 341,870
385,769
347,689 379,950 727,639
Unrestricted
funds
£		 Restricted
funds
£		 2021
Total
funds
£
Salaries and pensions of individual religious received
under Gift Aid or Deed of Covenant
Donations
2021 Total funds		 353,881
1,768		 —
—		 353,881
1,768
355,649 — 355,649

2 Income from: investment income and interest receivable

Unrestricted
funds
£		 Restricted
funds
£		 2022
Total
funds
£
Income from listed investments
. UK Charity Authorised Investment Funds
2022 Total funds		 314,572 118,668 433,240
Unrestricted
funds
£		 Restricted
funds
£		 2021
Total
funds
£
Income from listed investments
. UK Charity Authorised Investment Funds
2021 Total funds		 310,733 113,452 424,185

3 Expenditure on: Charitable activities – Charitable grants and donations

Unrestricted
funds
£		 Restricted
funds
£		 2022
Total
funds
£
General donations
Contributions to the Congregation’s Generalate
2022 Total funds		 567
25,000		 —
—		 567
25,000
25,567 — 25,567

The Religious Sisters of Charity Charitable Trust 31

Notes to the accounts Year to 31 December 2022

3 Expenditure on: Charitable activities – Charitable grants and donations (continued)

Unrestricted
funds
£		 Restricted
funds
£		 2021
Total
funds
£
General donations
Contributions to the Congregation’s Generalate
2021 Total funds		 2,829
2,531,914		 —
—		 2,829
2,531,914
2,534,743 — 2,534,743

4 Expenditure on: Charitable activities – Support of members of the Congregation and their ministry

their ministry
Unrestricted
funds
£		 Restricted
funds
£		 2022
Total
funds
£
Premises
Facility management fee and related costs (see below)
Staff costs
Sisters’ personal expenses
Education, training and spiritual renewal
Miscellaneous expenses
Governance (note 5)
2022 Total funds		 284,456
468,870
171,767
195,224
8,659
8,024
116,857		 —
—
118,668
—
—
—
—		 284,456
468,870
290,435
195,224
8,659
8,024
116,857
1,253,857 118,668 1,372,525
Unrestricted
funds
£		 Restricted
funds
£		 2021
Total
funds
£
Premises
Staff costs
Sisters’ personal expenses
Education, training and spiritual renewal
Miscellaneous expenses
Governance (note 5)
2021 Total funds		 274,257
435,654
195,743
6,734
16,715
95,879		 —
113,452
—
—
—
—		 274,257
549,106
195,743
6,734
16,715
95,879
1,024,982 113,452 1,138,434

From June 2022, the charity outsourced the management of its convent facility at Hackney to Neylons Facility Management.

5 Governance costs

Governance costs
Unrestricted
funds
£		 Restricted
funds
£		 2022
Total
funds
£
Audit fees
Legal fees
Other governance expenses		 27,097
41,417
48,343		 —
—
—		 27,097
41,417
48,343
116,857 — 116,857

The Religious Sisters of Charity Charitable Trust 32

Notes to the accounts Year to 31 December 2022

5 Governance costs (continued)

Governance costs(continued)
Unrestricted
funds
£		 Restricted
funds
£		 2021
Total
funds
£
Audit fees
Legal fees
Other governance expenses		 21,134
18,908
55,837		 —
—
—		 21,134
18,908
55,837
95,879 — 95,879

6 Net (expenditure) income before transfers and before (losses) gains on investments This is stated after charging:

Unrestricted
funds
£		 Restricted
funds
£		 2022
Total
funds
£
Staff costs (note 7)
Auditor’s remuneration
-Statutory audit services
-Other services: Advisory
Depreciation		 290,435
23,335
3,762
150,725		 —

—
—
—		 290,435
23,335
3,762
150,725
Unrestricted
funds
£		 Restricted
funds
£		 2021
Total
funds
£
Staff costs (note 7)
Auditor’s remuneration
-statutory audit services
-Other services: Advisory
Depreciation		 435,654
19,646
1,488
144,591		 113,452
—
—
—
549,106

19,646

1,488

144,591

7 Staff costs and remuneration of key management personnel

Staff costs and remuneration of key management personnel
2022
Total
funds
£		 2021
Total
funds
£
Staff costs during the year were as follows:
Wages and salaries
Social security costs
Other pension costs
Staff costs per function were as follows:
Support of members of the Congregation and their ministry		 266,493
20,161
3,781		 494,654
43,736
10,716
290,435 549,106
290,435 549,106

From June 2022 the charity outsourced the management of its convent facility at Hackney to Neylons Facility Management. All employees were transferred to Neylons Facility Management on 15 June 2022 under the Transfer of Undertakings (Protection of Employment) Regulations (TUPE).

The Religious Sisters of Charity Charitable Trust 33

Notes to the accounts Year to 31 December 2022

No employee earned £60,000 per annum or more (including taxable benefits) during the year ended 31 December 2022 (2021 – none).

The average number of employees, analysed by function, for the period to 15 June 2022 (year to 31 December 2021) was as follows:

2022
No.		 2021
No.
Support of members of the Congregation and their ministry 9 21

The key management personnel of the charity in charge of directing and controlling, running and operating the charity on a day-to-day basis comprise the trustees. The total remuneration (including taxable benefit but excluding employer’s pension contributions) of the key management personnel for the year was £nil (2021 - £nil).

8 Trustees’ expenses and remuneration and transactions with trustees

The charity’s trustees are all members of the Congregation and consequently their living and personal expenses, all of which are consistent with the amounts paid in respect to other members of the Congregation, are borne by the charity. No trustee received any remuneration or reimbursement of expenses in connection with their duties as trustees (2021 – none).

As members of the Congregation, none of the trustees have resources of their own as all earnings, pensions and other income have been donated to the charity under a Gift Aid compliant Deed of Covenant. During the year, the total amount donated by the trustees to the charity was £44,038 (2021 - £40,207).

9 Taxation

The Religious Sisters of Charity Charitable Trust is a registered charity and, therefore, is not liable to income tax or corporation tax on income or gains derived from its charitable activities, as they fall within the various exemptions available to registered charities.

The Religious Sisters of Charity Charitable Trust 34

Notes to the accounts Year to 31 December 2022

10 Tangible fixed assets

Freehold Non
specialised
£		 Leasehold
Non
specialised
£		 Long
leasehold
Specialised
£
Computers,
furniture and
equipment
£
Motor
vehicles
£
Total
£
Cost or deemed cost
At 1 January 2022
Additions
Disposals
At 31 December 2022
At cost
Deemed cost (1999
valuation)
Depreciation
At 1 January 2022
Charge for the year
On disposals
At 31 December 2022
Net book values
At 31 December 2022
At 31 December 2021		 2,857,883
273,404
—
—

326,164

—
5,757,757

—

—
815,831

21,581

—
122,823

8,269

(24,995)
9,554,294
629,418
(24,995)
3,131,287
326,164
5,757,757
837,412
106,097		 10,158,717
1,745,950
1,385,337
326,164
5,757,757
—
837,412

—
106,097

—
8,773,380

1,385,337
3,131,287
326,164
5,757,757
837,412
106,097		 10,158,337
889,680
—
—
—

—

—
1,237,674

115,155

—
662,196

27,430

—
107,819

8,140

(24,995)
2,897,369

150,725
(24,995)
889,680
—
1,352,829
689,626
90,964
3,023,099
2,241,607
326,164
4,404,928
147,786
15,133
7,135,618
1,968,203
—
4,520,083
153,635
15,004
6,656,925

As permitted under Financial Reporting Standard 102 (FRS 102) the charity has continued to adopt a policy of not revaluing its tangible fixed assets. The book value of freehold land and buildings is based on a 1999 valuation net of depreciation, where appropriate, with additions since that date at cost and after adjusting for any impairment losses. As permitted under the transitional arrangements for FRS 102, the charity has elected to treat this valuation as deemed cost. Other tangible fixed assets are stated at cost.

It is likely that there are differences between the open market value of the freehold land and buildings and their book values. These arise because of the specialised nature of several of the properties. The amount of such differences cannot be ascertained without incurring significant costs, which, in the opinion of the trustees, is not justified in terms of the benefit to the users of the accounts. The historical cost of the freehold land and buildings included above at valuation cannot be ascertained with accuracy without incurring significant research time and costs which in the opinion of the trustees are not justified.

During the year, the charity disposed of three cars realising a surplus of £14,301.

Capital commitments

At 31 December 2022, the charity had no capital commitments (2021 - £260,000 in respect to additions of freehold non-specialised property additions that had been authorised but not contracted for).

The Religious Sisters of Charity Charitable Trust 35

Notes to the accounts Year to 31 December 2022

11 Programme related investments

Programme related investments
2022
£		 2021
£
At 1 January2022 and 31 December 2022 389,762 389,762

The charity owns a freehold property and on 30 October 2017 the property was made available to The Medaille Trust Limited (Charity Registration Number 1117830), a charity established to help the victims of human trafficking in the UK, for a ten year lease period at a peppercorn rent.

12 Investments

Investments
Total
2022
£		 Total
2021
£
Listed investments
Fair (market) value at 1 January 2022
Disposal proceeds
Realised (losses) gains on disposal
Net unrealised investment (losses) gains
Fair (market) value at 31 December 2022
Cost of listed investments at 31 December 2022		 16,368,837
(400,000)
(34,896)
(1,986,811)		 15,182,988
(300,000)
25,015
1,460,834
13,947,130 16,368,837
13,553,689 13,923,586

Net investment losses of £1,468,350 (2021 - gains of £1,089,419) are attributable to unrestricted funds and net investment losses of £553,357 (2021 - gains of £396,430) are attributable to restricted funds.

Listed investments held at 31 December 2022 comprised the following:

2022
£		 2021
£
UK CharityAuthorised Investment Funds 13,947,130 16,368,837

At 31 December 2022, the charity owned the following investments which represented a material holding relative to the market value of the total listed investments portfolio held at that date:

Holding 2022 2022 2021 2021
Market
value of
holding
£		 Percentage
of portfolio
%		 Market
value of
holding
£		 Percentage
of portfolio
%
BlackRock Catholic Charities
Growth & Income Fund		 13,942,156 99,96% 16,362,575 99.96%

All listed investments were dealt in on a recognised stock exchange.

The Religious Sisters of Charity Charitable Trust 36

Notes to the accounts Year to 31 December 2022

13 Debtors

Debtors
2022
£		 2021
£
Prepayments
Amount due from St Joseph’s Hospice, Hackney
Investment income receivable
Total		 16,643
21,287
128,958		 18,030
—
105,802
145,601 123,832

14 Creditors: amounts falling due within one year

Creditors: amounts falling due within one year
2022
£		 2021
£
Amounts due to the Generalate of the Religious Sisters of Charity
Amounts due to the Irish Province of the Religious Sisters of Charity
Amount due to St Joseph’s Hospice, Hackney
Accruals		 25,000
38,700
1,543
215,703		 25,000
58,050
86,246
31,206
280,946 200,502

15 Restricted funds

The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trusts to be applied for a specific purpose:

Long term care fund
Property fund		 At
1 January
2022
£		 Income
£
Expenditure
£		 Losses
£
Transfers
£		 At 31
December
2022
£
4,438,975
—		 118,668
379,950
(118,668)

—		 (553,357)
—
—

(379,950)		 3,885,618
—
4,438,975 498,618
(118,668)		 (553,357) (379,950) 3,885,618
Long term care fund At
1 January
2021
£		 Income
£
Expenditure
£		 Gains
£
Transfers
£		 At 31
December
2021
£
4,042,545 113,452
(113,452)		 396,430
—		 4,438,975

The long term care fund is to be used for the sisters’ long term care. This sum will provide modest resources to look after the sisters, many of whom will need increasing support and increasingly expensive residential and nursing care.

The property fund comprised monies received from the Congregation’s Generalate for the purpose of acquiring property. The property was duly purchased during the year and the funds have been transferred to, and reflected in the net movement in, the tangible fixed assets fund (note 16).

The Religious Sisters of Charity Charitable Trust 37

Notes to the accounts Year to 31 December 2022

16 Tangible fixed assets fund

Tangible fixed assets fund
2022
£		 2021
£
At 1 January 2022
Net movement in year
At 31 December 2022		 6,656,925
478,693		 7,369,213
(712,288)
7,135,618 6,656,925

The tangible fixed assets fund represents the net book value of the charity’s tangible fixed assets. A decision was made to separate this fund from the general fund and other designated funds of the charity in recognition of the fact that the tangible fixed assets are essential to the day-to-day work of the charity and as such their value should not be regarded as funds that would be realisable with ease, in order to meet future contingencies.

17 Programme related investment fund

2022
£		 2021
£
At 1 Januaryand 31 December 2022 389,762 389,762

The programme related investments fund represents the book value of the property assets classified as programme related investments i.e. the property owned by the charity but occupied by the Medaille Trust at a peppercorn rent for purposes consistent with the charitable objectives of the charity.

18 Designated funds

The income funds of the charity include the following designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes:

At
1 January
2022
£		 Released/
added
in year
£		 At 31
December
2022
£
Sisters’ retirement fund
Repairs and maintenance fund		 7,550,000
250,000		 (800,000)
—		 6,750,000
250,000
7,800,000 (800,000) 7,000,000
At
1 January
2021
£		 Released/
added
in year
£		 At 31
December
2021
£
Sisters’ retirement fund
Repairs and maintenance fund		 7,550,000
250,000		 —
—		 7,550,000
250,000
7,800,000 — 7,800,000

The Religious Sisters of Charity Charitable Trust 38

Notes to the accounts Year to 31 December 2022

18 Designated funds (continued)

Actuarial calculations performed during the year indicate that £10.7 million is required to fund the long term care of the members of the Congregation living in England and Wales.

Part of the fund is represented by an investment portfolio which had a value of £3.9 million at 31 December 2022 and is part of the charity’s restricted funds (note 15).

The designated fund comprises the balance of £6.8 million set aside by the trustees in order to provide fully for the sisters in their retirement. The fund will be utilised over the expected lives of the sisters.

19 Analysis of net assets between funds

General
funds
£		 Tangible
fixed asset
funds
£		 Programme
related
investment
fund
£		 Designated
funds
£		 Restricted
funds
£		 Total
2022
£
Fund balances at 31
December 2022 are
represented by:
Tangible fixed assets
Programme related
investments
Investments
Net current assets
Total net assets		 —
—
3,061,512
98,844		 7,135,618
—
—
—
—

389,762

—

—
—

—

7,000,000

—
—

—

3,885,618

—
7,135,618

389,762

13,947,130

98,844
3,160,356 7,135,618
389,762
7,000,000
3,885,618
21,571,354
General
funds
£		 Tangible
fixed asset
funds
£		 Programme
related
investment
fund
£

—

389,762

—

—

389,762
Designated
funds
£

—

—

7,800,000

—

7,800,000		 Restricted
funds
£

—

—

4,438,975

—

4,438,975		 Total
2021
£

6,656,925

389,762

16,368,837

398,087

23,813,611
Fund balances at 31
December 2021 are
represented by:
Tangible fixed assets
Programme related
investments
Investments
Net current assets
Total net assets		 —
—
4,129,862
398,087		 6,656,925
—
—
—
4,527,949 6,656,925

The Religious Sisters of Charity Charitable Trust 39

Notes to the accounts Year to 31 December 2022

19 Analysis of net assets between funds (continued)

The total unrealised gains as at 31 December 2022 constitute movements on revaluation and are as follows:

2022
£		 2021
£
Unrealised gains included above:
On investments
Total unrealised gains at 31 December 2022
Reconciliation of movements in unrealised gains
Unrealised gains at 1 January 2022
Less: released on disposals
Add: net (losses) gains arising on revaluation in the year
Total unrealisedgains at 31 December 2022		 393,441 2,445,251
393,441 2,445,251
2,445,251
(64,999)
(1,986,811)		 1,002,579
(18,162)
1,460,834
393,441 2,445,251

20 Ultimate control

The charity, which is constituted as a trust, was controlled throughout the period by the Province of Great Britain and Ireland of the Religious Sisters of Charity by virtue of the fact that the Superior of the Congregation appoints the trustees. The Province does not hold any assets, incur liabilities or enter into any transactions in its own right. Assets and liabilities of the Province in England and Wales are vested in the trustees of the charity, who undertake all transactions entered into in the course of the Province’s charitable activities.

21 Related party transactions

With the exception of the transactions referred to in note 8 to these accounts, there were no other related party transactions (2021 - none).

22 Post balance sheet events

The Religious Sisters of Charity Charitable Trust 40