## **INSTITUTE OF THE RELIGIOUS OF THE SACRED HEART OF MARY IMMACULATE VIRGIN KNOWN AS** ## **RELIGIOUS OF THE SACRED HEART OF MARY (ENGLISH PROVINCE)** ## **TRUSTEES' REPORT AND FINANCIAL STATEMENTS** **31 December 2020** **English Charity Number: 232190 Scottish Charity Number: SC039536** Haysmacintyre LLP Chartered Accountants Statutory Auditor London **RELIGIOUS OF THE SACRED HEART OF MARY (ENGLISH PROVINCE)** **TRUSTEES’ ANNUAL REPORT** ## **FOR THE YEAR ENDED 31 DECEMBER 2020** The Trustees present their report and the financial statements of the Institute for the year ended 31 December 2020 for the UK Region of the Religious of the Sacred Heart of Mary. The financial statements have been prepared in accordance with the Charities Act 2011 and reporting by charities: Statement of Recommended Practice applicable to charities preparing their financial statements in accordance with the Financial Reporting standard applicable in the UK and Republic of Ireland (FRS102). ## **1) REFERENCE AND ADMINISTRATIVE DETAILS** |Charity number England|232190| |---|---| |Charity Number Scotland|SC039536| |Trustees|Rosemary Lenehan – Appointed 1stNovember 2020| ||Ursula Canavan – Resigned 1stNovember 2020| ||Ellen O’Leary – Resigned 1stNovember 2020| ||Kathleen Buckley – Resigned 1stNovember 2020| ||Catherine Nolan – Appointed 1stNovember 2020| ||Moira Lever – Appointed 1stNovember 2020| ||Mary Mullins – Appointed 1stNovember 2020| |Custodian Trustee|Gailhac Trustees Limited| |Address|54 Grange Road| ||London| ||W5 5BX| |Solicitors|Stone King Sewell| ||13 Queen Square| ||Bath| ||BA1 2HJ| |Auditor|Haysmacintyre LLP| ||10 Queen Street Place| ||London| ||EC4R 1AG| |Investment Managers|Barclays Wealth| ||1 Churchill Place| ||London| ||EC14 5HP| |Governing Instrument|Trust Deed dated 7 November 1963, amended by| ||Scheme dated 11 April 1999| |Objects|Such charitable purposes as shall advance the religious and other| ||charitable work of the Province of the Institute which includes England,| ||as the Trustees with the approval of the Superior shall from time to time| ||think fit.| |Investment Powers|Under the Charity's Trust Deed, the Trustees' powers of investment are| ||any investments authorised by law for the investment of trust funds.| 2 **RELIGIOUS OF THE SACRED HEART OF MARY (ENGLISH PROVINCE)** **TRUSTEES’ ANNUAL REPORT** ## **FOR THE YEAR ENDED 31 DECEMBER 2020** ## **2) STRUCTURE, GOVERNANCE AND MANAGEMENT** The Institute operates as a Charitable Trust and is constituted by a Trust Deed dated 7 November 1963 and its principal object is 'to advance the religious and other charitable work of the Province of the Institute which includes England'. The Institute of the Religious of the Sacred Heart of Mary is an international religious congregation of Roman Catholic Women. Since its foundation in 1849, it has been engaged in religious and other charitable work, particularly education. Its Generalate is in Rome. The accounts accompanying this report are the accounts of the Charitable Trust under which assets of the Institute in the United Kingdom are held. ## **ORGANISATION** Gailhac Trustees Limited acts as the custodian trustee company for the Institute. The Trustees of the Institute are all directors of Gailhac Trustees Limited. The current members of the Provincial Council are: Catherine Nolan (Canonical Representative) Rosemary Lenehan (Area Treasurer) Moira Lever Mary Mullins The power of appointing and removing Trustees rests with the Institute Leader Sr Margaret Fielding who resides in Rome. New trustees are provided with a pack of information covering areas such as finance, policies and the work of the congregation. Training is provided through the attendance at relevant training courses and trustees are regularly updated on matters pertaining to their trustees’ duties by the charity's auditors and legal advisors. On an annual basis the Trustees will discuss the salaries of key management personnel and decide if a pay increase is applicable, using current market rates and taking advice from external bodies. A meeting of the General Chapter of the Religious of the Sacred Heart of Mary took place in Brazil in July 2020. The General Chapter, while it is in session, is the highest authority of the congregation. It made the decision, in July 2020, to change its structure. Thus, parts which had been previously been called provinces, would now become areas, thus, Northern European Province became known as the Northern European Area. On the 1st November 2020, three new trustees became responsible for the Northern European Area: Catherine Nolan, (Canonical representative) Mary Mullins Moira Lever Rosemary Lenehan, (Area Treasurer) At this General Chapter, the decision was also made that the Area of France would no longer be a part of the Northern European Area, but be linked directly to the Institute Leadership Council in Rome. ## _**Risk Review**_ The Trustees have assessed the major risks to which the charity is exposed, in particular, those related to the operations and finances of the trust, and are satisfied that systems are in place to mitigate exposure to the major risks. The Trustees consider that the principal risks of the charity are as follows: - The potential downturn of the economic climate could affect the valuation of investments and any income generated. Investment performance is regularly monitored by attending a number of meetings with the fund managers during the year. - RSHM will continue to incur increasing costs to provide quality care for our elderly Sisters that reside in our Care Homes. The Trustees agree the carefully compiled budgets and forecasts for the Care Homes and communities on an annual basis. Actual costs incurred during the year are constantly monitored against forecasts by the Finance Staff and any variances are highlighted to the Trustees during the year. - The effect of covid-19 presents some risks to the Charity most notably the reduction in income from the retreat centre Noddfa, reduction in dividend income and a reduction in the value of the Charity’s investment portfolio. The trustees believe that the strong reserves of the Charity can mitigate this impact. 3 **RELIGIOUS OF THE SACRED HEART OF MARY (ENGLISH PROVINCE)** **TRUSTEES’ ANNUAL REPORT** ## **FOR THE YEAR ENDED 31 DECEMBER 2020** ## **3) OBJECTIVES AND ACTIVITIES** It is the policy of the Charity to undertake a broad range of charitable activities. One of our most important objectives is to care for our elderly sisters and this number of sisters is increasing every year. We need to provide for the care needs of our sisters in the UK and this is done mainly in Arrowsmith House in Liverpool. However, we also need to care for our elderly sisters in France who live in Beziers and our sisters in Madonna House, Grianan and Naomh Brid in Waterford, Ireland. Therefore, the UK part of the Northern European Area has to support financially the care of the Sisters in Ireland. There have been no material changes in policy during the last year. In setting the aims and objectives of the charity, the Trustees have had due regard to the Charity Commission’s guidance on public benefit. The principal areas in which the Charity is involved are set out below. ## **EDUCATION** The main object of the sisters has always been education. Due to changes in education in the years 1970 - 1990, which affected independent and voluntary aided schools and to declining numbers of women joining the congregation, the sisters had to close schools, sell off land and buildings and transfer the remaining schools to separate ownership. While there are no sisters involved in teaching, others are involved in chaplaincy work, pastoral support for families of children in schools and offering retreats and spiritual guidance to both pupils and staff. The Institute also provides support to some schools formerly owned by the Charity but still have the Trusteeship of Rathmore Grammar School in Belfast. Sisters serve as Governors in Rathmore Grammar School and in Sacred Heart of Mary Girls' School in Upminster, Essex. ## **RELIGIOUS WORKS** Members of the Congregation are involved in - School chaplaincy, literacy support and hospital, hospice and prison chaplaincies - Teaching English to immigrants through local social service organisations - Working with organisations to help the homeless and trafficked women - Retreats, spiritual direction and related activities - Missionary work in the Zambezi region (Zambia and Zimbabwe) - running education and health programmes 4 ## **RELIGIOUS OF THE SACRED HEART OF MARY (ENGLISH PROVINCE)** **TRUSTEES’ ANNUAL REPORT (Continued)** ## **FOR THE YEAR ENDED 31 DECEMBER 2020** ## **CARE OF ELDERLY SISTERS** This work is carried out in the Charity's Care Centre at Arrowsmith House in Liverpool which was built in 1992. Six sisters are cared for in the Centre which is managed by a Lay Care Manager, assisted by lay nurses and care assistants. One sister is Chaplain to the Care Centre, working closely with the Manager to provide quality care for the sisters. Other sisters needing care are looked after at the Charity's convents in St Gabriel's Convent, Carlisle and Seafield Convent, Liverpool. We also care for our sisters in other parts of the Northern European Area - those who live in Ireland, especially our elderly and sick sisters who live in Madonna House, Grianan,and Naomh Brid in Waterford. The work of the Care Centre is constantly under review by the regular meetings of the Management Advisory Board and all staff receive regular in-service training and training on all matters relating to safeguarding issues. ## **GENERAL PASTORAL WORK** - Members of the Congregation undertake work in community based programmes with the homeless and with families, giving religious and material assistance. - Teaching English to immigrants and assisting them with their applications for assistance and support is important work for a number of sisters. - Offering pastoral care to those in hospices, hospitals and prisons. - Noddfa Spirituality Centre, Penmaenmawr provides respite for Carers (those who care for sick relatives at home). The sisters welcome Carers, individually or in groups, for short breaks and for relaxation days or courses. Capacitar practices and relaxation exercises are offered to all carers. These practices have been found to be very helpful to anyone suffering from trauma and so are beneficial to those who have the stress of caring for someone full time. Noddfa is set in beautiful grounds and is near the mountains and the sea, so it offers a peaceful atmosphere for anyone who needs to rest and we believe that we provide what is necessary for that person to feel renewed and to have the courage to return to their role as a Carer. 5 ## **RELIGIOUS OF THE SACRED HEART OF MARY (ENGLISH PROVINCE)** ## **TRUSTEES’ ANNUAL REPORT (Continued)** ## **FOR THE YEAR ENDED 31 DECEMBER 2020** One of our sisters, Sr Rosemary Lenehan, works as a chaplain in Saint Francis Hospice in Havering-Atte-Bower, Romford. She is a member of the Pastoral Care Team who works with patients both in the hospice and in their homes. The hospice cares for patients from the London Boroughs of Havering, Barking, Dagenham, Redbridge and South Essex catering for patients of all faiths and none. Sr Rosemary works mainly in the Inpatient Unit where there are eighteen beds but also with outpatients in Pemberton Place. There is a strong Community Specialist Nurse Service where Sr Rosemary is often called upon to visit patients in their homes, supporting them spiritually and emotionally. Sr Rosemary speaks of her ministry as ‘very rewarding and a great privilege to be able to accompany people at the most vulnerable time in their lives.’ Another sister, Sr Eleanor Dalton, works for the Archdiocese of Liverpool, in the education of the most vulnerable. Sacramental preparation is offered to children and adults using a person-centred approach. Sr Eleanor works in partnership with parents, parish and special schools, supporting and helping each family. With the help of a volunteer or catechist, guidance is provided for children with disabilities within the parish sacramental programme. In Sr Eleanor's ministry, opportunities for on-going faith formation are offered in the form of reflection days and weekend retreats. Parents and children find a sense of belonging and support in Faith & Light groups. A sense of community is built up at the monthly meetings and visits to other communities broaden the interest and contacts for both children and adults alike. Working in collaboration with the Brothers of Charity, L'Arche and the social clubs run by Nugent Care in the Archdiocese, an annual celebration of Mass for and with people with disabilities, is held on the first Sunday of October, every year. Sr Eleanor, and her team, promote and raise awareness of the needs of people with disabilities. They dedicate themselves to creating Catholic communities where all are welcome and where everybody belongs to the Body of Christ. 6 **RELIGIOUS OF THE SACRED HEART OF MARY (ENGLISH PROVINCE)** **TRUSTEES’ ANNUAL REPORT (Continued)** ## **FOR THE YEAR ENDED 31 DECEMBER 2020** ## **4) ACHIEVEMENTS AND PERFORMANCE** ## 1. Education Activities In the work of education sisters have continued to offer support and direction as Governors of Academies. They have been involved in the appointment process for a new deputy headteacher for an Academy; attended in service meetings with staff; participated in both the financial and pastoral committees of a Governing Body and been available for ongoing support to the headteacher and staff. Education continues to be a major focus for sisters' work, even though they are no longer actively engaged in full time teaching in the classroom. The teaching of English to immigrants, assisting in the literacy programmes in the local Catholic primary school enables the sisters to continue their commitment to education. Consultancy work has also been offered to a number of Dioceses in the area of leadership and management of education in Catholic schools. ## 2. Overseas Activities The Charity continues to support members of the Congregation in its missions in Zambia and Zimbabwe, through correspondence, financial assistance, sending reading materials and, on occasions personnel, to enable sisters to return home for rest and holiday. The Charity also contributed to the administration of the General Level of the Congregation in Rome. ## 3. The Support and Care of Members of the Charity and their Ministries Sisters continue to be engaged in works of pastoral support to our elderly sisters in 2 care centres in Ireland, and Liverpool. The care communities create an atmosphere of safety and spiritual support to the sisters, as well as providing, when necessary, ongoing medical assistance from nursing staff, local doctors and lay care staff appointed to assist in the running of the care communities. There are currently 20 sisters in care, with the number increasing each year. These sisters understand themselves to be part of the mission of the Institute, supporting the work of our mission by their prayer. They offer support to each other and participate in the various meetings of the Area to implement the General Chapter direction which calls us to a global awareness and concern for the earth as well as service to those in need. Participating in so far as they are able, the sisters are actively engaged in the mission of the Institute: ## 'I have come that you may have life, and have it to the full.' John 10:10 We are constantly reviewing our provision of health care for our sisters and now have lay managers in our care communities in Waterford and Liverpool. ## 4. Service to those in Need Extensive involvement in pastoral work has been offered and undertaken by members of the Charity. Service to the homeless through voluntary work at day centres for the homeless has engaged a number of Sisters. Hospital Chaplaincy is being undertaken in local areas, working with a team of Chaplains from various religious traditions. Sisters are also involved in visiting the sick and housebound in their homes and doing shopping for them. The spiritual and pastoral support for those who are fulltime carers for others has been a major part of the work of Noddfa Spirituality Centre in Penmaenmawr. Respite for carers, as well as short courses to support and offer encouragement, have been offered throughout the year. Retreats have also been offered for those who want spiritual support and over 2,400 people have availed of the facilities and the opportunities provided in Penmaenmawr. This is a major part of the work of the members in this part of the country and it is well established and highly regarded. 7 **RELIGIOUS OF THE SACRED HEART OF MARY (ENGLISH PROVINCE) TRUSTEES’ ANNUAL REPORT (Continued)** ## **FOR THE YEAR ENDED 31 DECEMBER 2020** Members of the Charity have also been engaged with working with prisoners, their families and helping their re-integration back into society. Supporting refugees through attendance at day centres, assisting them in the learning of English as well as offering a sympathetic ear, has also been a part of the work carried out by the members during the past year. Assisting refugees to fill in forms to ensure they receive the benefits to which they are entitled, has been an important part of this work. 5. Objectives for 2021 - Continue the works of the Institute in the advancement of education - Ongoing support of the members who are currently serving in Africa - Continue to care for our elderly sisters in the Northern European Area - Ensure that, in the care of our elderly sisters, we are always compliant with the law - To proceed with our plans, established at our Provincial Chapter, to downsize our properties - To review our structures as a follow up to the General Chapter 2020. ## **5) FINANCIAL REVIEW** The UK region currently has 36 (2019: 40) members out of a total of 82 members in the Northern European Area combined, the majority of whom have given most of their working lives to the charitable activities of the Institute. When this work is outside the Charity, any earnings are covenanted to the Charity. The number of new vocations is declining and therefore the average age of the membership is tending to increase. The Charity has a continuing commitment to support members of the Institute, many of whom continue to carry out charitable work long past retirement age. The Statement of Financial Activities show that total income decreased by £309k on the previous accounting period. This is mainly attributable to the absence of the sale of a property in 2019 that resulted in a net gain of £151k and the reduction of income generated through charitable activities of £184k as a result of the impact of Covid 19. Salaries and pensions decreased by £37k, one Sister received a one off back payment of £39k in 2020 however one Sister had received a one off back payment of £70k in 2019, general pension increases £15k, and a reduction of £11k in pensions due to the sad loss of Sisters passing away. The charity received gifts of £50k in the accounting period, £30k specifically for the charitable work carried out in Zambezi and £17k was received by friends of Noddfa. Noddfa received £43k from the Government Furlough scheme. The total £17k gift received by Noddfa was used to pay for the salaries paid not covered by the Furlough scheme. Total expenditure decreased by £308k. £645k was transferred to Ireland to support the Sisters living there which is an increase of £27k compared to 2019, it is understood that this support will continue every year. There was also £25k transferred to the General level Solidarity and Global Funds, a decrease of £15k from the previous accounting period. The CBIS investment held in the UK was transferred to Ireland in 2019 at a value of £218k, there was no transfer of investment from the UK to Ireland in 2020. There was a decrease of £133k in direct running and premises costs from the previous accounting period. The market value of quoted investments increased by £323k, this is the net result of various purchases, disposals and unrealised gains during the accounting period particularly the value of the Barclays Wealth Limited portfolio. Trustees’ aim is that these investments should generate sufficient funds in future to provide adequately for the sisters’ retirement needs, this is a matter which will be continually reviewed. Generally, it is felt that the Charity’s investments have continued to perform at a satisfactory level of performance. The Charity has delegated its investment powers to its investment managers, Barclays Wealth Limited. The Trustees meet regularly with the fund managers and ensure that the investments are managed in accordance with the religious and ethical principles of the Charity. The fund managers are expected to achieve income and capital growth with no more than a moderate level of risk. Opportunities for further rationalisation of properties will continue to be kept under review to avoid the need for expensive maintenance and to generate additional funds. ## _**Investment Policy**_ The Charity has a discretionary Investment Management agreement with Barclays Wealth Limited. The Trustees meet with the fund managers once every three months and ensure that the fund is managed in accordance with their written guidelines and with the religious and ethical principles of the Charity. The target set for the fund manager is to achieve a certain return of both income and capital growth based on an agreed asset allocation which contains no more than a moderate level of risk. In the year to 31 December 2020, income was £165,178 (2019: £213,035). Investments were considered to have generated a satisfactory level of return. 8 ## **RELIGIOUS OF THE SACRED HEART OF MARY (ENGLISH PROVINCE)** **TRUSTEES’ ANNUAL REPORT (Continued)** ## **FOR THE YEAR ENDED 31 DECEMBER 2020** ## _**Reserves**_ At the balance sheet date, 31 December 2020, the total funds of the Charity were £13.8 million. Of this £3.6 million represents fixed assets needed for the work of the charity, £7.8 million is designated to provide for the support of the older members of the Institute. The balance of approximately £2.4 million which the Trustees believe is sufficient to provide against unforeseen emergencies. ## **STATEMENT OF TRUSTEES’ RESPONSIBILITIES** The Trustees are responsible for preparing the Trustees’ Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Accepted Accounting Practice). The law applicable to charities in England & Wales and Scotland requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Charity and of the incoming resources and application of resources of the Charity for that period. In preparing these financial statements, the Trustees are required to: - Select suitable accounting policies and then apply them consistently; - Observe the methods and principles in the Charities SORP; - Make judgements and estimates that are reasonable and prudent; - State whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; - Prepare the financial statements on the going concern basis unless it is inappropriate to presume that this basis applies. The Trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the Charity and which enable them to ensure that the financial statements comply with the Charities Act 2011, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 and with the Trust Deed dated 7 November 1963. They are also responsible for safeguarding the assets of the Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Approved by the Trustees on 27 September 2021 and signed as authorised on their behalf by: Rosemary Lenehan RSHM Trustee 9 ## **INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF THE INSTITUTE OF THE RELIGIOUS OF THE SACRED HEART OF MARY IMMACULATE VIRGIN** ## **Opinion** We have audited the financial statements of the Institute of the Religious of the Sacred Heart of Mary Immaculate Virgin for the year ended 31 December 2020 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and the related notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 _The Financial Reporting Standard applicable in the UK and Republic of Ireland_ (United Kingdom Generally Accepted Accounting Practice). In our opinion, the financial statements: - give a true and fair view of the state of the charity’s affairs as at 31 December 2020 and of the charity’s net movement in funds for the year then ended; - have been properly prepared in accordance with the requirements of the Charities Act 2011 and the Charities and Trustee Investment (Scotland) Act 2005 and regulation 8 of the Charities Accounts (Scotland) regulations. ## **Basis for opinion** We have been appointed as auditor under section 144 of the Charities Act 2011, and section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and report in accordance with the Acts and relevant regulations made or having effect thereunder. 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 financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements 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 financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report. ## **Other information** The trustees are responsible for the other information. The other information comprises the information included in the Trustees’ Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the 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 financial statements 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 (Accounts and Reports) Regulations 2008 and the Charities Accounts (Scotland) Regulations 2006 require us to report to you if, in our opinion: - adequate accounting records have not been kept by the charity; or - sufficient and proper accounting records have not been kept; or - the charity financial statements are not in agreement with the accounting records and returns; or - we have not received all the information and explanations we require for our audit. 10 ## **INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF THE RELIGIOUS OF THE SACRED HEART OF MARY IMMACULATE VIRGIN (continued)** ## **Responsibilities of trustees for the financial statements** As explained more fully in the trustees’ responsibilities statement set out on page 9, the trustees are responsible for the preparation of the financial statements 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 financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the 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. ## **Auditor’s responsibilities for the audit of the financial statements** Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an 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 financial statements. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: Based on our understanding of the charity and the environment in which it operates, we identified that the principal risks of non-compliance with laws and regulations related to provision of care regulations, health and safety regulations, employment law, safeguarding regulations and Charity law, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Charities Act 2011 and the Charities SORP. We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to depreciation charges. Audit procedures performed by the engagement team included: - Inspecting minutes of Trustees’ meetings; - Reviewing calculations for depreciation including reviewing estimated useful economic lives; - Inspecting correspondence with regulators and tax authorities; - Discussions with management including consideration of known or suspected instances of non-compliance with laws and regulation and fraud; - Evaluating management’s controls designed to prevent and detect irregularities; - Identifying and testing journals, in particular journal entries posted with unusual account combinations, postings by unusual users or with unusual descriptions; - Reviewing valuations of investments; and - Challenging assumptions and judgements made by management in their critical accounting estimates. These related to depreciation. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report. ## **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 regulations made under section 154 of that Act, and section 44(1)(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’s trustees as a body for our audit work, for this report, or for the opinions we have formed. Haysmacintyre LLP 10 Queen Street Place Statutory Auditors London EC4R 1AG 27 September 2021 haysmacintyre is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006 11 ## **RELIGIOUS OF THE SACRED HEART OF MARY (ENGLISH PROVINCE)** ## **STATEMENT OF FINANCIAL ACTIVITIES** ## **FOR THE YEAR ENDED 31 DECEMBER 2020** ||||**Designated**||| |---|---|---|---|---|---| ||||**Fund**||| ||||**Sisters’**||| |||**General**|**Retirement**|**Total**|**Total**| |||**Fund**|**Fund**|**2020**|**2019**| ||**Notes**|**£**|**£**|**£**|**£**| |**Income from:**|||||| |_Donation and legacies_|||||| |- Sisters' salaries and pensions||894,085|-|894,085|931,481| |- Legacies and gifts||50,397|-|50,397|5,740| |- Activity income||72,371|-|72,371|256,783| |_Investments_|||||| |- Interest and dividends||165,178|-|165,178|213,035| |_Other_|||||| |- Gains on disposal of properties||500|-|500|151,195| |- Furlough Grant from Government||43,304|-|43,304|-| |- Other income||26,848|-|26,848|3,936| |||-------------------|-----------------|-------------------|-------------------| |**Total income**|2|1,252,683|-|1,252,683|1,562,170| |||-------------------|-----------------|-------------------|-------------------| |**Expenditure on:**|||||| |_Raising funds_|||||| |- Investment managers’ fees||42,155|-|42,155|41,880| |_Charitable activities:_|||||| |- Support of members and their ministry||891,498|350,862|1,242,360|1,374,934| |- Support of the Congregation’s work|||||| |Overseas||700,000|-|700,000|875,496| |||-------------------|-----------------|-------------------|-------------------| |**Total expenditure**|3|1,633,653|350,862|1,984,515|2,292,310| |||-------------------|-----------------|-------------------|-------------------| |**Net expenditure before net**|||||| |**gains on investments**||(380,970)|(350,862)|(731,832)|(730,140)| |**Net gains on investments**||209,517|-|209,517|919,115| |||-------------------|-----------------|-------------------|-------------------| |**Net (expenditure)/income**||(171,453)|(350,862)|(522,315)|188,975| |Transfers between funds|12|(251,847)|251,847|-|-| |||-------------------|-----------------|-------------------|-------------------| |**Net movement in funds**||(423,300)|(99,015)|(522,315)|188,975| |Fund balances brought forward||6,362,085|7,927,421|14,289,506|14,100,531| |||--------------------|---------------------|---------------------|---------------------| |**Fund balances carried forward**|11|5,938,785|7,828,406|13,767,191|14,289,506| |||==========|==========|==========|==========| All recognised gains and losses are included in the Statement of Financial Activities. All the above results are derived from continuing activities. Details of comparative figures by fund are disclosed in note 15. 12 ## **RELIGIOUS OF THE SACRED HEART OF MARY (ENGLISH PROVINCE)** ## **BALANCE SHEET** ## **AS AT 31 DECEMBER 2020** |||**2020**||**2019**|| |---|---|---|---|---|---| ||**Notes**|**£**|**£**|**£**|**£**| |**FIXED ASSETS**|||||| |Tangible fixed assets|6||3,584,743||3,685,365| |Investments|7||7,850,684||7,528,086| ||||----------------------||----------------------| ||||11,435,427||11,213,451| |**CURRENT ASSETS**|||||| |Debtors|8|63,057||65,968|| |Cash at bank and in hand||2,648,051||3,349,749|| |||-------------------||-------------------|| |||2,711,108||3,415,717|| |**CREDITORS**: Amounts falling|||||| |due within one year|9|(242,846)||(203,502)|| |||-------------------||-------------------|| |**NET CURRENT ASSETS**|||2,468,262||3,212,215| ||||-------------------||-------------------| |**TOTAL ASSETS LESS**|||||| |**CURRENT LIABILITIES**|||13,903,689||14,425,666| |**CREDITORS:**Amounts falling|||||| |due after more than one year|10||(136,498)||(136,160)| ||||---------------------||---------------------| |**NET ASSETS**|||13,767,191||14,289,506| ||||==========||==========| |**FUNDS**|||||| |Unrestricted Income Fund -|||||| |General Fund|11||5,938,785||6,362,085| |Designated Fund -|||||| |Retirement Fund|12||7,828,406||7,927,421| ||||---------------------||---------------------| ||||13,767,191||14,289,506| ||||===========||===========| The notes on pages 15 to 23 form part of these financial statements. The financial statements were approved by the Trustees on 27 September 2021 and are signed as authorised on their behalf by: Rosemary Lenehan RSHM Trustee 13 **RELIGIOUS OF THE SACRED HEART OF MARY (ENGLISH PROVINCE)** ## **STATEMENT OF CASH FLOWS** ## **FOR THE YEAR ENDED 31 DECEMBER 2020** ||**2020**||**2019**|**2019**| |---|---|---|---|---| ||**£**|**£**|**£**|**£**| |**Cash flows from operating activities:**||||| |**_Net cash (used in)/provided by operating activities_**||(729,684)||(1,384,424)| |**Cash flows from investing activities:**||||| |Dividends, interest and rents from investments|165,178||213,035|| |Proceeds from the sale of property, plant and equipment|500||236,216|| |Purchase of property, plant and equipment|(24,611)||(34,800)|| |Proceeds from sale of investments|1,379,293||2,087,399|| |Purchase of investments|(1,492,374)||(2,082,042)|| ||-----------------||-----------------|| |**_Net cash provided by/(used in) investing activities_**||27,986||419,808| |||------------------||------------------| |**Change in cash and cash equivalents in the reporting**||||| |**period**||(701,698)||(964,616)| |**Cash and cash equivalents at the beginning of the**||||| |**reporting period**||3,349,749||4,314,365| |||------------------||------------------| |**Cash and cash equivalents at the end of the reporting**||||| |**Period**||2,648,051||3,349,749| |||========||========| |**Reconciliation of net income to net cash flow from operating**|**activities**|||| ||||**2020**|**2019**| ||||**£**|**£**| |**Net income/(expenditure) for the reporting period**||||| |**(as per the statement of financial activities)**|||(522,315)|188,975| |**Adjustments for:**||||| |Depreciation charges|||125,233|121,931| |Gains on investments|||(209,517)|(919,115)| |Dividends, interest and rents from investments|||(165,178)|(213,035)| |Profit on the sale of fixed assets|||(500)|(151,195)| |Decrease in debtors|||2,911|5,379| |Increase/(decrease) in creditors|||39,682|(417,364)| ||||-----------------|-----------------| |**Net cash (used in)/provided by investing activities**|||(729,684)|(1,384,424)| ||||========|========| |**Analysis of cash and cash equivalents**|||**2020**|**2019**| ||||**£**|**£**| |Cash in hand|||2,648,051|3,379,749| ||||---------------------|---------------------| |**Total cash and cash equivalents**|||2,648,051|3,349,749| ||||==========|==========| 14 **RELIGIOUS OF THE SACRED HEART OF MARY (ENGLISH PROVINCE)** **NOTES TO THE ACCOUNTS** ## **FOR THE YEAR ENDED 31 DECEMBER 2020** ## **1. ACCOUNTING POLICIES** The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are as follows: ## **Basis of preparation** The financial statements 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 Statement of Recommended Practice for Charities (SORP 2015) (Second Edition, effective 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). The charity meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s). ## **Preparation of accounts on a going concern basis** The trustees consider there are no material uncertainties about the charity’s ability to continue as a going concern. Despite the impact of Covid-19 the review of our financial position, strong reserves levels and future plans gives trustees confidence that the charity remains a going concern for the foreseeable future. ## **Income** All income is included in the statement of financial activities when the charity is entitled to the income, it is probable that income will be received and the amount can be quantified with reasonable accuracy. The following specific policies are applied to particular categories of income: ## _Sisters’ Salaries and Pensions_ Sisters’ salaries and pensions are received under deeds of covenant and are stated inclusive of income tax but net of any deductions for social security payments and contributions to occupational pension schemes. Receipts of lump sums from occupational pension schemes upon the retirement of members are credited to the Designated Sisters’ Retirement Fund. ## _Donations and legacies_ Donations and legacies are recognised when receivable or when the Charity becomes legally entitled to them. Receipts of property, investments or other gifts in kind are included at market value. ## _Activity income_ Income from retreats and other activities held at the Charity’s activity centres (Institutions) is accounted for in the year in which the activities take place. ## **Expenditure** Expenditure on specific categories of activity consists of all expenditure directly relating to that activity, together with certain central costs which are allocated on the basis of Trustees’ estimates of time spent on the relevant activities. Cost of raising funds consists of investment management charges. Irrecoverable VAT is included with the category of expense to which it relates. ## **Tangible fixed assets** The Trustees, having taken appropriate professional advice, re-valued freehold land and buildings at as August 1997. Subsequent additions of £2,000 and above are capitalised at cost. Depreciation is calculated to write off the cost/valuation, less anticipated residual value, over the expected useful economic lives of assets as follows:- Freehold buildings 2% straight line Long leasehold property 2% straight line or the life of the lease if less than 50 years Furniture and equipment 10% reducing balance Motor vehicles 20% on cost 15 **RELIGIOUS OF THE SACRED HEART OF MARY (ENGLISH PROVINCE)** **NOTES TO THE ACCOUNTS (Continued)** ## **FOR THE YEAR ENDED 31 DECEMBER 2020** ## **1. ACCOUNTING POLICIES (Continued)** ## **Investments** Investments are a form of basic financial instruments and are initially shown in the financial statements at market value. Movements in the market values of investments are shown as unrealised gains and losses in the Statement of Financial Activities. Profits and losses on the realisation of investments are shown as realised gains and losses in the Statement of Financial Activities. Realised gains and losses on investments are calculated between sales proceeds and their opening carrying values or their purchase value if 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. Realised and unrealised investment gains and losses are combined in the Statement of Financial Activities. ## **Debtors** Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due. ## **Cash at bank and in hand** Cash at bank and cash in hand includes cash and short term highly liquid investments. ## **Creditors and provisions** Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due ## **Funds** General funds comprise funds which are available to be used for the general purposes of the charity. Designated funds as those earmarked by the Trustees for specific purposes or projects as noted in the financial statements. Restricted funds are held subject to specific conditions declared by the donor as explained in the financial statements. ## **Employee benefits** ## _Short term benefits_ Short term benefits including holiday pay are recognised as an expense in the period in which the service is received. ## _Employee termination benefits_ Termination benefits are accounted for on an accrual basis and in line with FRS 102. ## _Pension scheme_ The charity operates a defined contribution pension scheme for the benefit of its employees. The assets of the scheme are held independently from those of the charity in an independently administered fund. The pensions costs charged in the financial statements represent the contributions payable during the year. ## **Critical accounting judgements and key sources of estimation uncertainty** In the application of the accounting policies, trustees are required to make judgement, estimates, and assumptions about the carrying value of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affected current and future periods. 16 **RELIGIOUS OF THE SACRED HEART OF MARY (ENGLISH PROVINCE)** **NOTES TO THE ACCOUNTS (Continued)** ## **FOR THE YEAR ENDED 31 DECEMBER 2020** ## **1. ACCOUNTING POLICIES (Continued)** Judgements made by the trustees, in the application of these accounting policies that have significant effect on the financial statements and estimates with a significant risk of material adjustment in the next year are deemed to be in relation to the depreciation rates of tangible fixed assets and are discussed above. In the view of the trustees, no assumptions concerning the future or estimation uncertainty affecting assets or liabilities at the balance sheet date are likely to result in a material adjustment to their carrying amounts in the next financial year. ## **General information** The Charity is registered in England and Wales (charity number: 282729) and Scotland (charity number: SC039536). The Charity’s office address is 54 Grange Road, London, W5 5BX. |**2.**|**INCOME**|**Province**|**Local**||**Total**|**Total**| |---|---|---|---|---|---|---| |||**Centre**|**Communities**|**Institutions**|**2020**|**2019**| |||**£**|**£**|**£**|**£**|**£**| ||**Income from:**|||||| ||_Donations and legacies_|||||| ||- Sisters' salaries and pensions|894,085|-|-|894,085|931,481| ||_-_Legacies and gifts|33,104|-|17,293|50,397|5,740| ||- Activity Income|-|-|72,371|72,371|256,783| ||_Investments_|||||| ||- Interest and dividends|165,178|-|-|165,178|213,035| ||_Other_|27,348|-|43,304|70,652|155,131| |||--------------------|----------------|-------------------|-------------------|-------------------| ||**TOTAL**|1,119,715|-|132,968|1,252,683|1,562,170| |||==========|========|=========|=========|=========| ||**Comparative analysis:**|||||| |||**Province**|**Local**||**Total**|| |||**Centre**|**Communities**|**Institutions**|**2019**|| |||**£**|**£**|**£**|**£**|| ||**Income from:**|||||| ||_Donations and legacies_|||||| ||- Sisters' salaries and pensions|931,481|-|-|931,481|| ||_-_Legacies and gifts|5,740|-|-|5,740|| ||- Activity Income|-|-|256,783|256,783|| ||_Investments_|||||| ||- Interest and dividends|213,035|-|-|213,035|| ||_Other_|155,131|-|-|155,131|| |||--------------------|----------------|-------------------|-------------------|| ||**TOTAL**|1,305,387|-|256,783|1,562,170|| |||==========|========|=========|=========|| 17 **RELIGIOUS OF THE SACRED HEART OF MARY (ENGLISH PROVINCE)** ## **NOTES TO THE ACCOUNTS (Continued)** ## **FOR THE YEAR ENDED 31 DECEMBER 2020** |**3.**|**EXPENDITURE**|**Staff costs**|**Other**|**Depreciation**|**2020**|**2019**| |---|---|---|---|---|---|---| |||**£**|**£**|**£**|**£**|**£**| ||**_Raising funds_**|||||| ||Investment managers’ fees|-|42,155|-|42,155|41,880| |||------------------|-----------------|-------------------|-----------------|-----------------| ||**_Charitable activities_**|||||| ||_Support of members and their_|||||| ||_Ministry_|||||| ||Province Centre|||||| ||- Direct running costs|104,054|69,335|-|173,389|159,298| ||- Premises and equipment|-|74,165|9,800|83,965|82,771| ||- Direct support costs|-|5,280|-|5,280|10,343| ||- Allocated support costs|-|35,728|-|35,728|46,459| |||------------------|-----------------|-------------------|-----------------|-----------------| |||104,054|184,508|9,800|298,362|298,871| ||Local Communities|||||| ||- Direct running costs|8,589|302,818|-|311,407|333,246| ||- Premises and equipment|-|30,673|98,609|129,282|154,789| ||- Direct support costs|-|21,750|-|21,750|31,200| ||- Allocated support costs|-|5,104|-|5,104|6,637| |||------------------|-----------------|-------------------|-----------------|-----------------| |||8,589|360,345|98,609|467,543|525,872| ||Institutions|||||| ||- Direct running costs|332,105|95,598|-|427,703|450,430| ||- Premises and equipment|-|20,401|16,824|37,225|84,749| ||- Direct support costs|-|1,319|-|1,319|1,738| ||- Allocated support costs|-|10,208|-|10,208|13,274| |||------------------|-----------------|-------------------|-----------------|-----------------| |||332,105|127,526|16,824|476,455|550,191| |||------------------|------------------|------------------|------------------|------------------| |||444,748|672,379|125,233|1,242,360|1,374,934| |||------------------|------------------|------------------|------------------|------------------| ||Support of the Congregation’s|||||| ||work overseas|||||| ||- Contributions to Generalate|-|55,000|-|55,000|40,000| ||- Support of Irish region|-|645,000|-|645,000|835,496| |||------------------|-----------------|-------------------|-----------------|-----------------| |||-|700,000|-|700,000|875,496| |||------------------|------------------|------------------|------------------|------------------| |||------------------|-----------------|-------------------|-----------------|-----------------| ||**Total expenditure**|444,748|1,414,534|125,233|1,984,515|2,292,310| |||=========|=========|=========|=========|=========| ||Included in the above costs is:|||||| ||Auditor’s remuneration - audit fee including VAT||||13,800|13,380| ||||||=======|=======| 18 **RELIGIOUS OF THE SACRED HEART OF MARY (ENGLISH PROVINCE)** ## **NOTES TO THE ACCOUNTS (Continued)** ## **FOR THE YEAR ENDED 31 DECEMBER 2020** ## **3. EXPENDITURE (Cont.)** |**Comparative analysis:**||||| |---|---|---|---|---| ||**Staff costs**|**Other**|**Depreciation**|**2019**| ||**£**|**£**|**£**|**£**| |**_Raising funds_**||||| |Investment managers’ fees|-|41,880|-|41,880| ||------------------|-----------------|-------------------|-----------------| |**_Charitable activities_**||||| |_Support of members and their_||||| |_Ministry_||||| |Province Centre||||| |- Direct running costs|96,550|62,748|-|159,298| |- Premises and equipment|-|72,971|9,800|82,771| |- Direct support costs|-|10,343|-|10,343| |- Allocated support costs|-|46,459|-|46,459| ||------------------|-----------------|-------------------|-----------------| ||96,550|192,521|9,800|298,871| |Local Communities||||| |- Direct running costs|4,930|328,316|-|333,246| |- Premises and equipment|-|59,482|95,307|154,789| |- Direct support costs|-|31,200|-|31,200| |- Allocated support costs|-|6,637|-|6,637| ||------------------|-----------------|-------------------|-----------------| ||4,930|425,635|95,307|525,872| |Institutions||||| |- Direct running costs|327,448|122,982|-|450,430| |- Premises and equipment|-|67,925|16,824|84,749| |- Direct support costs|-|1,738|-|1,738| |- Allocated support costs|-|13,274|-|13,274| ||------------------|-----------------|-------------------|-----------------| ||327,448|205,919|16,824|550,191| ||------------------|------------------|------------------|------------------| ||428,928|824,075|121,931|1,374,934| ||------------------|------------------|------------------|------------------| |Support of the Congregation’s||||| |work overseas||||| |- Contributions to Generalate|-|40,000|-|40,000| |- Support of Irish region|-|835,496|-|835,496| ||------------------|-----------------|-------------------|-----------------| ||-|875,496|-|875,496| ||------------------|------------------|------------------|------------------| ||------------------|-----------------|-------------------|-----------------| |**Total expenditure**|428,928|1,741,451|121,931|2,292,310| ||=========|=========|=========|=========| 19 **RELIGIOUS OF THE SACRED HEART OF MARY (ENGLISH PROVINCE)** ## **NOTES TO THE ACCOUNTS (Continued)** ## **FOR THE YEAR ENDED 31 DECEMBER 2020** |**4.**|**STAFF COSTS**|**2020**|**2019**| |---|---|---|---| |||**£**|**£**| ||Wages and salaries|358,742|344,981| ||(Agency costs included in above)||| ||Social security costs|74,047|72,653| ||Other pensions costs|11,959|11,295| |||-----------------|-----------------| |||444,748|428,929| |||========|========| ||The average number of employees||| ||in the year was:|**No**|**No**| ||Institutions|8|8| ||Healthcare|18|18| |||---------------|---------------| |||26|26| |||=======|=======| No employee earned total emoluments exceeding £60,000 during the year under review (2019– none). Total remuneration for key management personnel in the year was £91,685 (2019: £85,194). ## **5. TRANSACTIONS WITH TRUSTEES** The Trustees of the Charity are also members of the Institute and as such have taken vows of poverty under which they have renounced all personal rights to income and capital. The Charity provides for the essential needs of all members of the Institute within the Province. The living costs of the Trustees are therefore borne by the Charity. |**6.**|**TANGIBLE FIXED**||**Long**|||| |---|---|---|---|---|---|---| ||**ASSETS**|**Freehold**|**Leasehold**|**Furniture and**|**Motor**|| |||**Land**||||| |||**and Buildings**|**Property**|**Equipment**|**Vehicles**|**Total**| |||**£**|**£**|**£**|**£**|**£**| ||**COST OR VALUATION**|||||| ||At 1 January 2020|4,866,392|204,250|178,563|174,477|5,423,682| ||Additions|-|-|11,752|12,859|24,611| ||Disposals|-|-|-|(21,650)|(21,650)| |||-------------------|---------------|---------------|----------------|--------------------| ||At 31 December 2020|4,866,392|204,250|190,315|165,686|5,426,643| |||-------------------|---------------|---------------|----------------|--------------------| ||**DEPRECIATION**|||||| ||At 1 January 2020|1,372,234|89,432|138,509|138,142|1,738,317| ||Charge|95,128|3,885|5,181|21,039|125,233| ||Release on disposals|-|-|-|(21,650)|(21,650)| |||-------------------|---------------|---------------|----------------|--------------------| ||At 31 December 2020|1,467,362|93,317|143,690|137,531|1,841,900| |||-------------------|---------------|---------------|----------------|--------------------| ||**NET BOOK VALUE**|||||| ||At 31 December 2020|3,399,030|110,933|46,625|28,155|3,584,743| |||==========|=======|=======|=========|=========| ||At 31 December 2019|3,494,158|114,818|40,054|36,335|3,685,365| |||==========|=======|=======|=========|=========| 20 **RELIGIOUS OF THE SACRED HEART OF MARY (ENGLISH PROVINCE)** ## **NOTES TO THE ACCOUNTS (Continued)** ## **FOR THE YEAR ENDED 31 DECEMBER 2020** |**7.**|**INVESTMENTS**||| |---|---|---|---| |||**2020**|**2019**| |||**£**|**£**| ||Value at 1 January 2020|7,528,087|6,614,328| ||Additions|1,492,374|2,082,042| ||Disposals|(1,377,082)|(2,087,027)| ||Revaluation gains|207,305|918,743| |||---------------------|----------------------| ||Value at 31 December 2020|7,850,684|7,528,086| |||==========|==========| ||Cost at 31 December 2020|6,260,159|6,169,507| |||==========|==========| ||Accumulated unrealised gains at 31 December 2020|1,590,525|1,358,579| |||==========|==========| ||||**£**| ||Quoted investments comprise||| ||Fixed Interest||584,903| ||UK Equities||4,112,340| ||Property||568,139| ||Overseas funds||2,268,930| ||Bank deposits||316,372| ||||----------------------| ||||7,850,684| ||||==========| |**8.**|**DEBTORS**|**2020**|**2019**| |||**£**|**£**| ||Prepayments|63,057|65,968| |||========|========| ||All debtor balances are due within one year.||| |**9.**|**CREDITORS: Amounts falling due within one year**|**2020**|**2019**| |||**£**|**£**| ||Amounts held on behalf of overseas branches and missions|204,972|166,191| ||Accruals|37,874|37,311| |||-----------------|-----------------| |||242,846|203,502| |||========|========| |**10.**|**CREDITORS: Amounts falling due after**|**2020**|**2019**| ||**more than one year**|**£**|**£**| ||Amounts held on behalf of Sisters|136,498|136,160| |||========|========| 21 **RELIGIOUS OF THE SACRED HEART OF MARY (ENGLISH PROVINCE)** ## **NOTES TO THE ACCOUNTS (Continued)** ## **FOR THE YEAR ENDED 31 DECEMBER 2020** |**11.**|**ANALYSIS OF NET**|||| |---|---|---|---|---| ||**ASSETS BETWEEN**|**General**|**Retirement**|**Total**| ||**FUNDS**|**Fund**|**Fund**|**2020**| |||**£**|**£**|**£**| ||Tangible fixed assets|74,780|3,509,963|3,584,743| ||Investments|3,532,241|4,318,443|7,850,684| ||Current assets|2,711,108|-|2,711,108| ||Current liabilities|(242,846)|-|(242,846)| ||Long term liabilities|(136,498)|-|(136,498)| |||---------------------|---------------------|----------------------| |||5,938,785|7,828,406|13,767,191| |||==========|==========|==========| ||**Comparative analysis:**|||| |||**General**|**Retirement**|**Total**| |||**Fund**|**Fund**|**2019**| |||**£**|**£**|**£**| ||Tangible fixed assets|76,389|3,608,976|3,685,365| ||Investments|3,209,641|4,318,445|7,528,086| ||Current assets|3,415,717||3,415,717| ||Current liabilities|(203,502)|-|(203,502)| ||Long term liabilities|(136,160)|-|(136,160)| |||---------------------|---------------------|----------------------| |||6,362,085|7,927,421|14,289,506| |||==========|==========|==========| ## **12. DESIGNATED FUND** The Trustees have designated funds out of the unrestricted funds for specific purposes as follows:- ## **Sisters’ Retirement Fund** A fund has been designated in respect of the Charity’s commitment to provide for the retirement of members of the congregation and the services they continue to perform when salaried employment has ceased as well as for their care in old age and sickness. Lump sums received from members’ occupational pension schemes upon their retirement are credited to this fund, as are transfers from General Funds as circumstances permit. Actuarial calculations show that a fund in excess of £10m (at today’s values) will be needed. It is anticipated that this shortfall will be met by the realisation of tangible fixed assets and the continuing careful husbanding of resources. ## **13. RELATED PARTY TRANSACTIONS** There were no related party transactions during the year (2019: None). ## **14. CAPITAL COMMITMENTS** There were no capital commitments at the end of the year to 31 December 2020 (2019 – none). 22 **RELIGIOUS OF THE SACRED HEART OF MARY (ENGLISH PROVINCE)** ## **NOTES TO THE ACCOUNTS (Continued)** ## **FOR THE YEAR ENDED 31 DECEMBER 2020** ## **15. COMPARATIVE STATEMENT OF FINANCIAL ACTIVITIES** |||**Designated**|| |---|---|---|---| |||**Fund**|| |||**Sisters’**|| ||**General**|**Retirement**|**Total**| ||**Fund**|**Fund**|**2019**| ||**£**|**£**|**£**| |**Income from:**|||| |_Donation and legacies_|||| |- Sisters' salaries and pensions|931,481|-|931,481| |- Legacies and gifts|5,740|-|5,740| |- Activity income|256,783|-|256,783| |_Investments_|||| |- Interest and dividends|213,035|-|213,035| |_Other_|||| |- Gains on disposal of properties|151,195|-|151,195| |- Other income|3,936|-|3,936| ||-------------------|-----------------|-------------------| |**Total income**|1,562,170|-|1,562,170| ||-------------------|-----------------|-------------------| |**Expenditure on:**|||| |_Raising funds_|||| |- Investment managers’ fees|41,880|-|41,880| |_Charitable activities:_|||| |- Support of members and their ministry|1,045,568|329,366|1,374,934| |- Support of the Congregation’s work|||| |Overseas|875,496|-|875,496| ||-------------------|-----------------|-------------------| |**Total expenditure**|1,962,944|329,366|2,292,310| ||-------------------|-----------------|-------------------| |**Net expenditure before net**|||| |**gains/(losses) on investments**|(400,774)|(329,366)|(730,140)| |**Net gains/(losses) on investments**|919,115|-|919,115| ||-------------------|-----------------|-------------------| |**Net income/(expenditure)**|518,341|(329,366)|188,975| |Transfers between funds|(173,770)|173,770|-| ||-------------------|-----------------|-------------------| |**Net movement in funds**|344,571|(155,596)|188,975| |Fund balances brought forward|6,017,514|8,083,017|14,100,531| ||--------------------|---------------------|---------------------| |**Fund balances carried forward**|6,362,085|7,927,421|14,289,506| ||==========|==========|==========| 23