2020-12-31-accounts

SISTERS OF THE HOLY FAMILY

TRUSTEES’ REPORT AND FINANCIAL STATEMENTS AT 31 DECEMBER 2020

Registered Charity No. 233108

Haysmacintyre LLP Chartered Accountants Registered Auditors London

CONTENTS

REFERENCE AND ADMINISTRATIVE DETAILS	1-2
TRUSTEES’ ANNUAL REPORT	1-23
Governance, structure and management	3
Mission and Objectives
Worship and Prayer	4-5
Social and Pastoral Work	6-8
The Support of Overseas Missionary and Development Work	9
Caring for the Elderly Members of the Congregation	10-11
Grant Making	12-13
Number of hours of volunteered work by members of the charity	14
Individual case profile of a Lay Holy Family member in mission	15
FINANCIAL REVIEW	16-17
Independent Auditor’s Report	24-25
Statement of financial activities	26
Balance sheet	27
Cash flow statement	28
Notes to the financial statements	32-38
RISK MANAGEMENT AND POLICIES
Risk Management	18-19
Safeguarding	20
Fundraising Policy	20
Data Protection Policy	21
Ethical Policy	21
Principal Accounting Policies	29-31
FUTURE PLANS	22
TRUSTEES’ RESPONSIBILITIES	23

SISTERS OF THE HOLY FAMILY

LEGAL AND ADMINISTRATIVE DETAILS

FOR THE YEAR ENDED 31 DECEMBER 2020

TITLE OF CHARITY Sisters of the Holy Family (sometimes known as Sisters of the Holy Family of Villefranche or of Saint Emilie) TRUSTEES Sister Irena Madej Sister Mary Brohan Sister Mary Josephine Harney Sister Kathleen O’Donnell SECTOR SUPERIOR Sister Irena Madej PRINCIPAL ADDRESS 35 & 36 Albert Square London SW8 1BZ Telephone: [phone] Fax: [phone] Website: www.holyfamilysisters.org.uk CHARITY REGISTRATION NUMBER 233108 GOVERNING INSTRUMENT Trust Deed dated 1 May 1964 (as amended 1997) NAMED CORRESPONDENT Mr David Clark & ACCOUNTANT 1[st] Floor, Church House 61 College Road Bromley. BR1 3QG AUDITORS Haysmacintyre LLP 10 Queen Street Place London EC4R 1AG BANKERS National Westminster Bank PLC PO Box 7929 91 Westminster Bridge Road London SE1 7HW SOLICITORS Druces LLP Salisbury House London wall London EC2M 5PS

INVESTMENT MANAGERS Brewin Dolphin 12 Smithfield Street London EC1A 9BD

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SISTERS OF THE HOLY FAMILY

LEGAL AND ADMINISTRATIVE DETAILS (continued)

FOR THE YEAR ENDED 31 DECEMBER 2020

INVESTMENT POWERS

THE TRUST OF THE CHARITY

Under the charity’s Trust Deed the Trustees’ power of investment authorised by law for the investment of Trust funds.

To apply Trust property either as capital or as income for such charitable purposes as shall advance the religious and other charitable work of the Sector of the Congregation (Sisters of the Holy Family) as the Trustees with the approval of the Sector Leader shall from time to time think fit and if at any time the Congregation shall cease to exist or to carry on religious or other charitable work in such Sector then for such lawful charitable purposes connected with the advancement of the Roman Catholic religion as the Trustees shall determine

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SISTERS OF THE HOLY FAMILY

TRUSTEES REPORT

FOR THE YEAR ENDED 31 DECEMBER 2020

The Trustees are pleased to present the report and accounts for the year ended 31st December 2020 of the English Sector of the Congregation of the Sisters of the Holy Family Charitable Trust on which the assets of the English Sector are held.

They have been prepared in accordance of the requirements of the Charities Act 2011 and the statement of recommended practice “Accounting and Reporting by Charities” (SORP 2019)

INTRODUCTION

The Congregation of the Sisters of the Holy Family of Saint Emilie (Villefranche) is an International Roman Catholic Religious Congregation supporting 310 sisters worldwide. It was founded in Villefranche-de-Rouergue, France in 1816.

GOVERNANCE, STRUCTURE and MANAGEMENT

In terms of Canon Law, the Congregation is governed at an international level by the Superior General and her General Council in Villefranche-de-Rouergue, France. They are elected every five years at a General Chapter with representatives of all Sectors of the Congregation. The English Sector is administered by an Animation Team, who are elected by the members of the English Sector in consultation with the General Council.

Members of the Animation Team are chosen for their ability to stimulate and coordinate participation, initiative, and the activities of the sisters throughout Great Britain and Ireland. They help to ensure ongoing formation of its members and to secure the best use of personnel and skills. As with many other Congregations we are in the process of reviewing our Structures of Governance in order to find the best way to facilitate our mission and maximise our potential with decreasing numbers. Our next International General Chapter is in 2022.

At present each Community of the English/ Irish Sector is governed by a local Superior who is appointed by the Animation Team in consultation with the General Council. A member of the Animation Team is required to visit each Community at least once a year, and throughout the year there is a system of accountability operational within the Sector to ensure that the Animation Team are aware of the progress and development of the different ministries carried out by the members of the Sector. A visit by the Superior General or her Councillors is made to the English Sector at least once every three years.

The Sector comprises 21 Professed Sisters who are accommodated in 3 houses. These houses are situated in the South and South West of England and one in the Republic of Ireland. The community houses are located in those areas where it is believed that the members can provide care for the pastoral and social needs of the catholic parishes and local communities in which they are inserted. As stated above each community has a local leader appointed by the Animation Team. The local leader is responsible for the care of the sisters in her community and also to ensure that as a community the most pertinent needs of the locality are responded to as far as possible. All local leaders meet each year with the Trustees and the Sector Animation Team to discuss developments, future plans and strategies.

In terms of civil law, the charity is governed by a Trust Deed dated 1st May 1964 (amended in 1997) and is a registered charity: Charity Registration No.233108. Two Trustees are currently members of the Animation Team, the other Trustees are in charge of the communities in Exmouth and Knock, Ireland. As all the trustees are members of the Congregation of the Holy Family Sisters they have a detailed knowledge of the work of the charity and of its structure. Their living and personal costs are borne by the charity. However, they receive no remuneration or expenses for their services as Trustees.

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.

Trustees’ Responsibilities

The Trustees are ultimately responsible for the policies, activities and assets of the Charity. The Trustees meet on a regular basis during the year to review developments with regard to the Charity and its activities and take important decisions as and when necessary. When required the Trustees seek advice and support from the Charity’s professional advisers, including property consultants, investment managers, solicitors and accountants. Trustees attend regular training days throughout the year although this has been more difficult during lockdown. Some training, however, was carried out via zoom.

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SISTERS OF THE HOLY FAMILY

TRUSTEES REPORT (Continued)

FOR THE YEAR ENDED 31 DECEMBER 2020

MISSION, OBJECTIVES and SPECIFIC POLICIES

The object of the English Irish Sector of the Congregation of the Holy Family Sisters Charitable Trust, as set out in its governing document, is the furtherance of the Roman Catholic faith and lawful charitable purposes and works connected with it.

By caring for individual members of the Congregation throughout their lives with the Congregation, the charity aims to enable and support the sisters to live out their faith and to put that faith into practice through a wide variety of religious ministries and other charitable works.

PUBLIC BENEFIT

Through their ministry the Sisters of the Holy Family are involved in a range of activities including education, pastoral support, and chaplaincy. We also network with other charities and are involved in grant giving to those charities which are close to our own particular charism and are of benefit to the public.

The trustees confirm that when reviewing the charity’s aims and objectives and plans for the future they have referred to the guidance contained in the Charity Commission’s general guidance on Public Benefit and in particular to its supplementary guidance on the advancement of religion.

We are conscious of our present reserves and of the need to use these for the good of the public whilst continuing to meet the aims and purposes of our own Charity. We meet constantly to assess existing projects, research new ventures and allocate funds appropriately.

ACHIEVMENTS AND PERFORMANCE IN MISSION

The religious and charitable works of individual members of the Congregation can be divided into five areas:

1. Worship and Prayer,

2. Social and Pastoral Work

3. The support of Overseas Missionary and Development Work.

4. Caring for the Elderly Members of the Congregation

5. Grant Making

Each of these is considered in turn below ending with a particular area of achievement or impact made for the past year.

1. WORSHIP AND PRAYER

• Members of the Congregation have been given the opportunity for private worship as well as the opportunity to continue to develop their knowledge and trust in Christ and the Church through prayer, study of the Gospel and spiritual development. They are encouraged to make a private retreat annually.

• In addition, members of the Congregation have celebrated and prayed with the wider community including people of all faiths and none. They continue to encourage others within their local parish communities to join them in prayer and meditation and aim to provide spiritual direction and guidance for those who ask. They run study courses for those who wish to develop their knowledge in scripture and catechesis

• The members make themselves available by being present within the parish communities and their locality to listen in times of need and to use the telephone for prayer ministry especially for those who are in crisis and want prayer.

• They also aim to build up the local parish communities by participating in the celebration of the liturgy with others and through their animation of prayer groups and church services. They offer themselves for ministry in the parishes in which they are inserted whenever possible.

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SISTERS OF THE HOLY FAMILY

TRUSTEES REPORT (Continued)

FOR THE YEAR ENDED 31 DECEMBER 2020

ACHIEVEMENT AND PERFORMANCE IN MISSION (continued)

1. WORSHIP AND PRAYER (continued)

Through their ministry they:

• Promote the values and vision set out in the Gospel including the promotion of human dignity, respect of different cultures, working for a society based on justice and peace and encouraging care and respect for all creation.

• Host prayer groups in their own premises and elsewhere thus giving members of the public from all walks of life the opportunity to escape the stresses of everyday life for a short time and take time for quiet contemplation and reflection and the chance to study and consider the Gospel.

• Provide retreats where those who attend can reflect in a peaceful atmosphere as well as giving access throughout the year to ‘sacred space’ in our houses for people to pray and find peace.

• Encourage family prayer through parish catechesis.

• Animate liturgies and teach and prepare lay people to take up the role of spiritual animation.

• Console and counsel people by telephone.

• Provide religious education as well as train and supervise new catechists.

• Pray and visit with those who are housebound, sick or dying.

PARTICULAR ACHIEVEMENTS FOR THIS YEAR IN WORSHIP AND PRAYER

Due to Covid many of the activities which we normally carry out with parishioners and other groups were greatly curtailed.

However, we did keep up a strong telephone ministry contacting many housebound parishioners and individuals we knew who were isolated and prayed with them on the phone or gave spiritual direction by email or letters.

Some catechesis and bible study continued via zoom.

We encouraged Lay Holy Family members to come and use our gardens for contemplation.

Normally the annual retreat of members takes place in a retreat house run by other Congregations or charities. This year we needed to come up with a different plan. We organised an ecological retreat within our own communities. This allowed the elderly sisters who are not able to travel to retreat centres to participate in the retreat experience. This was a cause of great joy to them and opened our eyes to the possibility of continuing this in the future and developing it further by opening it up to parishioners and Lay Holy Family members.

Our Women’s Group were able to continue with meetings via zoom. This group brings together women from various parishes for prayer, education and empowerment for their particular mission in the Church. This year particular emphasis was given to Racial Justice and Care of the Earth.

In September the new chaplain, Fr. Gerry Mulvihill, moved into his specially refurbished apartment in the Central House and the community there have had the joy of Mass each day as well as other spiritual celebrations. This provided great spiritual support and comfort to the community at Stockwell during lockdown.

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SISTERS OF THE HOLY FAMILY

TRUSTEES REPORT (Continued)

FOR THE YEAR ENDED 31 DECEMBER 2020

Challenges for the Future with regards to Worship and Prayer

• ❖ A great challenge for us post Covid will be to rebuild the groups who previously came to our Central House for various activities. We now have an excellent space for prayer and religious study and are currently considering how we might attract younger parishioners to come to events.

• ❖ We recognise the treasure that we have in the quiet spaces in our premises especially in London where many feel the need for stillness and calm. We continue to research the means for opening our premises to those who would like to avail of such an oasis.

• ❖ The need to work with younger people to take on leadership roles in our local churches and communities.

• ❖ The opening of Emilie House (named after our foundress) for asylum seekers is an exciting new venture for us and we are currently considering what spiritual and pastoral support we might provide to this newly founded community.

2. SOCIAL AND PASTORAL WORK

Active members of the Congregation are involved in various forms of social and pastoral work. These include parish ministry and the co-ordination of programmes that promote the common good and justice in society. These programmes involve both adults and children. This is regarded by the members as being increasingly important in our present-day society but is becoming more difficult for us to manage these ministries as our numbers drop and age levels rise. We are discovering that the best way forward for us in this area is to sponsor other groups and individuals to carry out this mission or for us to network with other charities such as the Jesuit Refugee Service.

As members of the Holy Family Congregation we are eager to promote the value of family life. For this reason we have opened our premises to ‘Marriage Care’ – a counselling organisation that is open to all faiths and none with the aim of helping couples – married or not – to build and sustain strong, fulfilling, healthy relationships, and to provide support in times of difficulty. We are happy that contact has been renewed and that this ministry will continue as soon as Covid restrictions make that possible.

Members also carry out chaplaincy work in care homes. They are engaged in visiting the sick, the lonely and housebound, the marginalised and emotionally deprived.

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SISTERS OF THE HOLY FAMILY

TRUSTEES REPORT (Continued)

FOR THE YEAR ENDED 31 DECEMBER 2020

2. SOCIAL AND PASTORAL WORK (continued)

The members aim to help in particular, the poor and disadvantaged in society regardless of their faith, gender, or individual circumstances. Part of this involves the conscientisation of people within our own parishes to activate for change and for the promotion of a more just society. We support and attend various organisations who promote justice issues in our society.

Conscious of the facilities we have in our various houses we are trying to open them up to various local and national needs. This has led us to the housing of refugees, offering accommodation to particular needs such as priests in busy ministries and families in need of short holiday breaks.

We are also making our premises available for local groups such as local parish groups and women’s support groups.

Several Sisters are engaged in the formation programmes of the Lay Holy Family members who will eventually work alongside the Holy Family Sisters in our pastoral and social care activities.

We had to have a temporary break with our hosting of families from ‘Chain of Hope’. This organisation brings children and their parents from other countries to London for heart surgery and ask individuals and groups such as ourselves to host the family during their recuperation before returning to their own countries.

The objectives of the trustees in this area of social and pastoral work include:

• Enabling members of the Congregation to carry out meaningful social and pastoral work within the community, after assessing the needs of the local area.

• Encouraging and motivating members to work with and assist the poor, elderly and marginalised.

• Discerning new opportunities for our Charity to continue our engagement with the poor and disadvantaged and reviewing how we might respond internally or in collaboration with other agencies and charities within the areas of social and pastoral care.

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SISTERS OF THE HOLY FAMILY

TRUSTEES REPORT (Continued)

FOR THE YEAR ENDED 31 DECEMBER 2020

PARTICULAR ACHIEVEMENTS THIS YEAR IN SOCIAL AND PASTORAL WORK

Due to Covid restrictions we have had to curtail many of our activities this year but were able to move forward with planning and with our associate charities such as the Jesuit Refugee Service

• ➢ The lease agreement with the Jesuit Refugee Society was signed and we are delighted that our premises is now being used for hosting needy asylum seekers. It is a project that is very much in line with our charism and a direct response to the invitation from Pope Francis to religious sisters to involve themselves in the migrant crisis. We will lease the property free of charge on a long-term basis and support the project financially by an agreed annual sum which will mostly be used for the payment of the salaries of two support workers.

• ➢ As stated previously we continue with the provision of funds for our local Catholic Primary School: St Anne’s, Vauxhall. We have set aside £30,000 for the next two years for the employment of an extra teacher in order to reduce class sizes in a school which has recently been awarded merit for its inclusivity. St. Anne’s has a higher than average number of children with special needs and prizes itself on keeping doors open to all children and not to exclude any because their particular difficulties may bring down standards. A recent Ofsted Report reads: The ‘Governors fully support the inclusive ethos and welcome children who may have had difficult experiences elsewhere. Children with no English settle in quickly. Challenging children are not seen as a problem. Staff believe that all children have a right to a good education and they will do their best to ensure each child receives it at St Anne’s. The leadership team recognise that overall standards could be higher if these children were encouraged to be in other schools but that would be a breach of trust and would be deemed as unacceptable here’.

We are happy to be involved in the life of this school where our local children attend and to assist them in providing much needed support at a time when funds in education are very stretched.

• ➢ Due to Covid and a little concern about our the financial uncertainties of this time we decided to terminate a planned programme which we had started to discuss with the Diocese of Plymouth. This project was in view of how to make use of our community house in Exmouth which is now too large for the community. Various options have been considered such as the housing of refugee families or accommodation for those experiencing domestic abuse. The Trustees on reflection, however, decided to find smaller rented accommodation for the few sisters who are now resident there and will set about selling the property in the near future.

It may be in future years that we can revisit our discussion with the Diocese as regards helping to finance another project.

Exmouth Community House

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SISTERS OF THE HOLY FAMILY

TRUSTEES REPORT (Continued)

FOR THE YEAR ENDED 31 DECEMBER 2020

3. THE SUPPORT OF OVERSEAS MISSIONARY and DEVELOPMENT WORK

The Charity provides financial support for our overseas missions and for the development programmes for the poor. The Congregation’s missions are in Africa, Asia, the Middle East and Latin America. The missions are under the control of members of the Congregation and the financial support is used to meet the personal and living expenses of the members as well as their missionary activities. These include schools, hospitals, care of street children and those who need residential care, clinics, chaplaincy work and helping the disadvantaged and marginalized in different capacities. A fund of £30,000 is transferred on an annual basis to the General Council Fund in Villefranche de Rouergue, France to be distributed when required to the various mission stations. Alongside this grant various other grants are given as required.

ACHIEVEMENT AND PERFORMANCE IN THE SUPPORT OF OVERSEAS MISSIONARY AND DEVELOPMENT WORK

During the early months of 2020 the Trustees were working with our financial consultants to set up a development fund for our oversees projects. This has not yet been finalized due to the difficulties encountered for meeting during the Covid restrictive period. Trustees will finalise this in 2021.

IVORY COAST

In January of 2020 a grant of £5000 was sent to the sector of the Ivory Coast for the educational work carried out by our sisters. Most of this grant was used to pay the salary of an extra teacher in the secondary school.

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SISTERS OF THE HOLY FAMILY

TRUSTEES REPORT (Continued)

FOR THE YEAR ENDED 31 DECEMBER 2020

4. CARING FOR THE ELDERLY MEMBERS OF THE CONGREGATION

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Age Profile - December 2020
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30-39 40-49 50-59 60-69 70-79 80-89 90+
21 Sisters
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In common with many religious congregations in Great Britain, the age profile of the members of our Congregation is increasing as existing members grow older and the number of new vocations becomes minimal. The age profile of the Sector is shown graphically above:

The Congregation has an obligation, both moral and legal, to provide care for its members, none of whom has resources of her own and all of whom have devoted a significant part of their lives to education, pastoral ministry, chaplaincy, care of the sick, and elderly, the poor and marginalized in society. As the age profile of the Congregation increases so too does the need to provide increasingly more expensive care for the members. The Congregation tries to do this for as long as possible in our own communities, however, six members are now receiving full time care in privately owned nursing homes. Over the next decade, the Trustees expect the number requiring full time care to increase. As a consequence, the Trustees are giving careful consideration to the amount of money we reserve for care of elderly members whilst maintaining a missionary dynamic to our financial outlay.

In this regard, the objectives of the Trustees over the next few years include:

• Ensuring all members of the Congregation receive the high level of care they require to provide them with the quality of life they rightly expect.

• Ensuring that our existing community houses have been adapted to meet the needs of the elderly. We will continue to enable and encourage all members of the Congregation to continue living in community for as long as possible and where feasible continuing with a ministry.

• We continue to consider how our buildings that are used for the care of the elderly sisters may have a multipurpose dimension and thus be more open to the wider needs of the locality.

• Ensuring that the members retain a pastoral and missionary outlook even in retirement.

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SISTERS OF THE HOLY FAMILY

TRUSTEES REPORT (Continued)

FOR THE YEAR ENDED 31 DECEMBER 2020

PARTICULAR ACHIEVEMENTS THIS YEAR IN CARING FOR THE ELDERLY MEMBERS

• ➢ Ensuring that each of our elderly members who are still living in community have a personal care plan that includes the spiritual, physical, emotional and social aspects of their lives. In the communities where our elderly members are still resident we ensure that all personal care facilities are bought in including chiropodists, hairdressers and care assistants where necessary. We try to keep in constant contact with their family members and with their friends and associates from their past ministries.

• ➢ The gentle encouragement of members who are no longer able to be cared for in our community houses to enter external residential care. Finding appropriate places to house our elderly members is a priority for us.

• ➢ In Stockwell we involved our elderly members in helping to cultivate the various vegetables and flowers in our new garden. Our annual retreat made them more conscious of the need for our communities to become ‘greener’.

• ➢ We encouraged more of our Lay Holy Family to be involved with the social care of our elderly residents.

• ➢ We encouraged our elderly members to continue their ministry through phone calls and letters especially during the lockdown period.

• ➢ The new resident chaplain has developed and enlivened the spiritual life of the community members in Stockwell greatly.

Leisure activities for our elderly members

Care of the environment

Enjoying a well deserved retirement

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SISTERS OF THE HOLY FAMILY

TRUSTEES REPORT (Continued)

FOR THE YEAR ENDED 31 DECEMBER 2020

5. GRANT MAKING

As our members age and we have less ability to be directly involved in mission activities we are eager to use our financial resources to assist other groups who have a similar ethos to ourselves and who are engaged in charitable projects. The Trustees are constantly reviewing various projects that we feel able to assist. Listed below are those that we have decided to respond to at this point in time in line with our Grant Making Policy.

ACHIEVEMENT AND PERFORMANCE IN GRANT MAKING

• Each year we respond to various request from assistance from our own Congregation of the Holy Family Sisters. This year alongside our annual grant of £30,000 to our General Fund £5000 was given to our sisters in the Ivory Coast to help continue their education projects – see report above in the section on support of overseas missionary and development work.

• The opening of Emilie House named after our foundress Saint Emilie in conjunction with the Jesuit Refugee Service was a source of great joy for us. Our particular contribution is to provide the accommodation in our previous Formation House in Aldebert Terrace, Stockwell on a ten year rent free basis. The house is able to accommodate up to 10 single asylum seekers. The project will be run by the Jesuit Refugee Society and will be supported by us each year with a grant of £80,000.

• Margaret Clitherow Trust

We continue to support the above charity which seek to serve marginalized communities through the provision of social, pastoral and spiritual care to Travellers, Gypsy and Roma communities throughout England and Wales.

The Trustees once again made the decision to continue funding this charity with a donation of £40,000 per annum (which was entirely accrued for in the 2017 accounts). This will enable them to expand their programme and will allow them to fulfil their aims of:

Establishing a well-resourced chaplaincy service for marginalised Travellers across England and Wales to meet all of the demand for faith-based services in this area

Increasing the number of in-house advocacy cases and facilitated legal referrals.

Establishing a trial programme of targeted educational and public health interventions to improve outcomes for Travelling communities.

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SISTERS OF THE HOLY FAMILY

TRUSTEES REPORT (Continued)

FOR THE YEAR ENDED 31 DECEMBER 2020

We continued with our grant of £30,000. To Saint Anne’s School Vauxhall . The Head Teacher, Mrs Catherine Davis, has written:

St Anne’s Catholic Primary School, Durham Street, London SE11 5JA

Telephone: [phone] ● Fax: [phone] Email: [e-mail] ● Web: www.st-annes.lambeth.sch.uk Head Teacher: Mrs Catherine Davis 23 July 2021

Sisters of the Holy Family of St Emilie - Funding for St Anne’s Catholic Primary School

As school budgets are stretched and squeezed to the limit, year on year, the governors and senior leadership team are eternally grateful for the financial support provided to the school by the Sisters of the Holy Family of St Emilie.

Whilst we did have a clear plan for the expenditure of this funding on more targeted teaching for pupils by providing smaller teaching groups, as explained at the end of last year’s report, our plans were thrown into disarray with the arrival of the pandemic. Whilst we had planned in this new academic year (20202021) to boost the ‘Catch Up’ money provided by the government to fund extra Booster sessions for Y5, Y2 and Y1, these were due to start after Christmas. Due to the second wave of coronavirus in the winter, schools were once again closed for much of the spring term.

Due to the two school closures over the last two academic years, £48,602 of the Holy Family’s funding remains protected and unspent and has been deferred from the financial year 2020/21.

Whilst the end of year attainment data shows that our catch-up lessons in English and maths since the return of the children have been more than effective, with most pupils in all classes making accelerated progress in the one term, there has been insufficient time for the children to regain the ground lost during nearly 6 months of closure over two school years.

The falling birth rate resulting in falling pupil rolls across London has meant a significant reduction in funding for this academic year. For financial reasons, we should be maximising the number of children in each class by mixing year groups, allowing us to reduce the number of teachers needed. With the children trying so hard to catch up on the missed learning, I believe this would be the worst thing we could do at this time.

Instead, if the Sisters of the Holy Family were able to support the school with a further £30,000 in the autumn term 2021, the total of £78,602 should be just enough money to pay to replace the two teachers who are leaving from Sep 2021 – July 2022. This would mean that we would not need to mix year groups, giving the teachers and children the best possible chance to finish catching up on the learning they have missed before the statutory assessments in the summer term.

Please join us in praying that all schools avoid further closures so the children’s education remains uninterrupted next year!

Catherine Davis Head Teacher

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SISTERS OF THE HOLY FAMILY

TRUSTEES REPORT (Continued)

FOR THE YEAR ENDED 31 DECEMBER 2020

ACHIEVEMENT AND PERFORMANCE IN GRANT MAKING (continued)

Smaller Grants were given to Care of Retired Clergy in Southwark Diocese.

£1,000 given to the fund for the retired and elderly clergy of the Diocese of Southwark who are no longer in active ministry and are in need of assistance and support.

Parish Grants

Following request from the parish of Saint Francis de Sales in Stockwell we gave a donation of £1000 to their development fund.

PLANS THAT WERE NOT FULFILLED

Covid put restrictions on many of our normal pastoral activities but it also gave us the time and opportunity to reflect further on the development of a project that we were considering with Caritas and the Plymouth Diocese. As stated earlier we had hoped that a part of our property in Exmouth might be used to house a suitable project in conjunction with Caritas and the Diocese of Plymouth but it sadly did not come to fruition and as our sisters numbers decreased even further our Trustees took the decision to put the property on the market in 2021. It may be that a smaller project may be considered in the future as we do hope to keep a small community presence in the parish of Exmouth.

NUMBER OF HOURS OF VOLUNTEERED WORK BY MEMBERS OF THE CHARITY

	Area	Number of Volunteers	Hours volunteered Per week
N.B. The numbers of hours that voluntary work was carried out during the Covid period was greatly reduced although some catechesis did continue on zoom as well as a telephone ministry set up to contact vulnerable parishioners. In normal conditions throughout the year the members of the Congregation give their time to assist those caught in the cycle of poverty and the marginalised The majority of members receive no financial reward for this work which contributes to the overall achievement of the Charity’s objectives. In addition, members are involved in administering the work of the Congregation and the Charity. Without their contribution the Charity would not be able to function as effectively or as fully as it does. Details of the areas in which members gave their time are shown in the table opposite.	Parish/Church Ministry including Catechetics, Teaching and Music Ministry, Eucharistic Ministers in the Local Parish Community. Parental Support Group Conscientisation/ Justice and Peace	6	48
	Social Work: Work in Care Centres + Visitation of the Sick	Pre Lockdown 7	32
	Visiting Nursing, /Residential Homes, Hospitals and a Hospice	5	15
	Befriending individuals. Supporting families. Corresponding with prisoners. Community Building	12	72
	Counselling, Spiritual Direction	1	4
	Hospital Chaplaincy Work	0	0
	Administration	4	96
	Total	35	256

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SISTERS OF THE HOLY FAMILY

TRUSTEES REPORT (Continued)

FOR THE YEAR ENDED 31 DECEMBER 2020

INDIVIDUAL CASE PROFILE OF A LAY HOLY FAMILY MEMBER IN MISSION: Theresa Blythin: Stockwell Community)

I became involved in the Lay Holy Family via my work with the Holy Family Sisters. I was employed in October 2011 by the sisters on a part-time basis to be the personal assistant of the Provincial. The environment of the congregation soon became familiar to me and through my interactions with the sisters, I quickly became very fond of them.

When COVID-19 hit and the country went into lockdown, the sisters became more vulnerable and the decision was made that no ‘outsiders’ would enter the convent premises, so all paid staff were put on to the government furlough scheme. Although I did this initially, it soon became apparent that, without any staff, the sisters were beginning to struggle. I was asked if I would move into the convent to cover some of the cooking, cleaning and caring of the elderly sisters, as well as my regular work in the office. I was fortunate enough to be able to do this, so after a clear COVID test, I moved in and remained for around five months.

During this time, I was able to take part more fully in the spiritual life of the sisters, taking part in regular prayer, Mass and retreats. During this time, I was able to develop spiritually myself and when I was invited to become a Lay Holy Family member, I jumped at the chance. The provincial and the bursar provided me with background information and I had several one to one sessions to help me develop more fully.

Having cared for my elderly mother, the care of the elderly (and sometimes the lack of it) became a passion for me. I have had several elderly neighbours and their care was sometimes questionable and at worst, poor. Whilst here, I have deepened my relationship with the sisters and got to know them individually. We talk of their background, family life and their journey to religious orders. When the weather is good, I have been able to take some of the sisters out for walks and I usually accompany them to any hospital visits or trips to the GP.

In the future I hope to be involved with the mission to asylum seekers who are housed in Emilie House. This project is run by the Jesuit Refugee Service and is funded by the Holy Family Sisters. I would see this volunteering as an extension of my present mission as a Lay Holy Family Member.

15

SISTERS OF THE HOLY FAMILY

TRUSTEES REPORT (Continued)

FOR THE YEAR ENDED 31 DECEMBER 2020

FINANCIAL REVIEW

The Sisters live in small communities and the Province has 22 professed members, the majority of whom have given their working lives to the charitable activities of the Charity. Where the work is for organisations independent of the Charity, any earnings are covenanted to the Charity. Although the average age of the membership is increasing, the number of new vocations is also increasing. Younger members, although taking up important charitable work, tend either to work within the Charity or, if working in Parish ministry, receive only a stipend. In consequence there is a general reduction in the income generated by members. The Charity has a continuing commitment to support members of the Province, many of whom continue to carry out charitable work long past the normal retirement age.

The beneficiaries of the work of the charity have the assurance 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 English Province of the Congregation of the Holy Family Sisters Charitable Trust enjoys tax exemption on income from its activities and on its investment income. The financial benefits received as a result of these exemptions are all applied for the purposes of furthering the Roman Catholic faith by enabling and supporting the sisters to live out their faith and to put that faith into practice through a wide variety of religious and other charitable works.

The Statement of Financial Activities shows that total income was again lower at £682.7k compared to £809.8k in 2019. The decrease was principally due to a fall in investment income. Other voluntary income, which principally consists of Sisters’ pensions donated, fell slightly and it is expected that this is a trend that will continue over the longer term. As a result, there will be an increasing dependency on investment income. It was anticipated in the wake of the COVID-19 pandemic, that investment income would be considerably lower in 2020 and subsequent years.

Although strict control has continued to be maintained over general expenditure, the total for 2020 was considerably higher than the previous year at £1.56m (2019: £988.6k). This was mainly due to a commitment made to pay a grant of £80k per year, over the next 10 years, to the Jesuit Refugee Service (JRS), starting from 2020. Costs of support of Sisters & their Ministry decreased mainly as a result of the reductions in several categories of Community expenses, most notably medical costs, holidays and utility costs. Including the JRS Grant, expenditure in the form of Donations and Grants was £834.03k (2019: £144.3k). Without the JRS Grant, the total was slightly lower than for last year at £109.6k. Support of Overseas Missions of the Congregation reduced with no sums paid towards the Congregation’s work in India and Bolivia in 2020. However, just over £5k was sent to Ivory Coast. Grants to other organisations included a repeat of the sums paid in the previous year of £40k the Margaret Clitherow Trust and £30k to St Anne’s School in Vauxhall.

The result for the year was net expenditure before investment gains/losses of £873.1k (2019: £178.8k). The year saw investment gains of £584.9k after the substantial growth in values in the previous year of £2.36m. There was also a gain of £234.8k after the pension scheme of one of the Sisters reached maturity during the year.

Overall, there was a net deficit of funds of £53.5k (2019: surplus of £2.19m). As a result, the reserves of the Charity fell to just over £25.1m.

Investment policy and performance

The performance of the portfolio and the charity’s investment strategy are reviewed by the Trustees who meet at least three times a year with the investment manager, accountant and advisors. At these meetings, the Trustees ensure that the fund is managed in accordance with their written guidelines and with the religious and ethical principles of the charity. The ethical restrictions prohibit any investment in companies with significant interest in armaments, gambling, tobacco, pornography, child labour and known injustices in the third world. The target set for the fund manager is to achieve a certain return of both income and capital growth with no more than a moderate level of risk.

Investments generated a total return of approximately +5.3% (2019: +17.1%). This was slightly ahead of the benchmark set for the fund managers (which is based on a composite of investment indices for each of the main sectors in which the charity holds investments) and with averages quoted for the charity sector for the year. The return was satisfactory in the view of the Trustees and justified their decision to make no significant changes to investment strategy last year.

16

SISTERS OF THE HOLY FAMILY

TRUSTEES REPORT (Continued)

FOR THE YEAR ENDED 31 DECEMBER 2020

RESERVES POLICY AND FINANCIAL POSITION

At the end of the year to 31 December 2020 the total funds of the charity stood at £25.1m. Of this, £4.6m is represented by fixed assets required for the support of the activities and the administration of the charity. A designated fund has been established for this and for financing the charity’s commitment to provide for the needs of sisters in sickness and old age. Calculations based on actuarial life expectancy tables indicate that a fund of in the region of £13m is required to provide for this commitment of the charity. The level of the fund will be kept under review and further designations will be considered as the need arises and when circumstances permit.

In previous years, the Trustees had designated a building fund in respect of the refurbishment project of the charity’s main property of the Stockwell Community House and our Central House. The sum designated was reduced from £150k in 2019, to Nil in 2020.

In addition, the Trustees have set aside a sum of £2.5m as a Charitable Projects Fund. This is intended to provide funding for various charitable activities which the Trustees will support financially but which will tend not to have direct input from the sisters of the Province. This is considered to be the most effective way of pursuing the aims of the charity in view of the fact that the membership of the Province is aging and the sisters are increasingly unable to work directly in pursuit of the charity’s purposes.

Types of project under consideration include:

• Support of the travelling community in the UK;

• Volunteer work in connection with the congregation’s mission in the Philippines;

• Support of homeless young people in the Philippines;

• Healthcare provided by the congregation in India.

• Support for local catholic school.

• • Setting up accommodation for Asylum Seekers

The balance of over £5.03m in the General Funds at just under four years’ expenditure is in excess of the Trustees’ normal target range of holding one to two years’ expenditure in reserve. However as noted above, expenditure levels are likely to rise and the Trustees are mindful of the likely decline in both investment values and investment income in 2020, and later years, as a result of the COVID-19 pandemic’s negative effect on financial markets. The Trustees, therefore, consider the level of the Charity's reserves to be adequate but not excessive.

The Trustees are also keen to ensure that the Retirement Fund is adequate for the charity’s long-term needs and will continue to monitor this in accordance with changes in sisters’ needs and in financial conditions, most critically low investment returns. They may if the situation warrants it and circumstances permit, make additional designations of funds in future. They will continue to monitor the level and adequacy of free funds and designated funds regularly.

17

SISTERS OF THE HOLY FAMILY

TRUSTEES REPORT (Continued)

FOR THE YEAR ENDED 31 DECEMBER 2020

RISK MANAGEMENT

The trustees undertake an annual review of the principal risks and uncertainties that the charity faces categorising the risks between those affecting the governance and management of the charity, operational risks, financial risks, reputational risks and those which occur because of circumstances outside of the charity's control such as changes in government policy, laws and regulations. They regularly review the measures already in place, or needing to be put in place, to establish policies, systems and procedures to mitigate those risks identified in the annual review and ensure that action is taken to implement changes to those policies, systems and procedures should they be needed to minimise or manage any potential impact on the charity if those risks materialise. 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. The key risks for the charity, as identified by the trustees, are described below together with the principal ways in which they are mitigated.

• Financial Risks

Aware of our lack of expertise in the area of finance we have employed a team of financial advisors to manage our investment portfolio. We are aware that much of our income now comes from our investments and so it is essential that these are managed well. The volatility of world markets and the possibility of global financial crisis naturally causes us some concern as well as the ongoing crisis within our own country regarding Brexit as well the after effects of the pandemic and for this reason we have opted for a portfolio that is diversified and which hopefully can weather any financial storms.

An analysis of the age profile of the members of the Institute shows that the average age in the Province at 31 December 2020 was 81 years. The trustees are aware that there is both a moral and legal obligation to care for the older members. None of the members 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. As the age profile increases, so too does the need to provide care for the sisters. Key elements of the management of this risk are:

• (a) ensuring that the charity has the available financial resources to finance this care both now and in the years ahead by setting aside assets in a designated fund, the value of which has been based on actuarial principles;

• (b) ensuring that processes are in place to review regularly the ministries and needs of individual sisters encouraging those who need it to take on less demanding ministries and for identifying those who need extra care and help.

• Health and Safety: Major Reconstruction

Covid provided many challenges for us over the past twelve months and in order to keep as many of our elderly members safe we decided for the most part to keep the care of our members to ourselves except for those who were already in Nursing Homes. This involved an amount of labour on our part but we felt that the risk of bringing the virus into the house was too great if we held on to external carers coming into the premises.

We have put stringent measures in place for the staff that continue to work on our premises and make a monthly review of our situation alongside government policies in the UK and Ireland.

Conscious that most of the caring of our elderly sisters and the administration of our charity is carried out by other members of the charity and that they themselves are at the risk of suffering burnout we are beginning to engage more external help. We are also putting better structures in place for all our members to live a healthy balanced life.

As Trustees we made the decision that all members who are living with vulnerable adults must be vaccinated. Any member who is not willing to receive the vaccine will be asked to live outside the community.

18

SISTERS OF THE HOLY FAMILY

TRUSTEES REPORT (Continued)

FOR THE YEAR ENDED 31 DECEMBER 2020

RISK MANAGEMENT (continued)

• Risks involved in Grant Making

As Trustees we are very aware that we must avoid exposing our charity’s resources, its reputation or the wellbeing of its beneficiaries to inappropriate risk and that it is essential to identify and consider risks in relation to a particular grant proposal and respond to them proportionately, as risks will vary in their significance from case to case. As the number of our members in this country decreases we will most likely be using our financial assets to assist other charities and groups that are in line with our own charitable purposes and therefore it is essential that we have a strategy for assessing together the risks involved whilst seeking good legal and financial advice as we are doing at present.

Our grant making policy is renewed by our trustees on a regular basis.

The vast majority of donations sent overseas are to fund projects administered directly by members of our own Congregation. Whether or not the funds are used here in Great Britain or overseas, the trustees always ensure that they are fully briefed about and familiar with the work of a potential recipient of funds, that funds are transferred via bank transfer, that proof of receipt is obtained and that, wherever possible (and always in the case of monies sent overseas), a full written report of how the monies have been utilised and applied is obtained from the recipient.

• Attack from Cyber Criminals

We are now more fully aware of the magnitude that an attack from cyber criminals could have on small charities like ours and we are trying to put in place more training for our staff and members in order to manage our website data collection activities and build new processes to assist us in this management. This has been somewhat delayed due to Covid 19.

• Training Needs

In the coming year we need to ensure that several members update their First Aid training and that our kitchen employees update their Food and Hygiene training.

Once again this was not fulfilled last year due to Covid 19 and the restrictions.

19

SISTERS OF THE HOLY FAMILY

TRUSTEES REPORT (Continued)

FOR THE YEAR ENDED 31 DECEMBER 2020

SAFEGUARDING

The Trustees recognise the absolute necessity of ensuring the protection and safety of all those the Charity serves. This means that all members who are in any kind of ministry in Great Britain have had to obtain clearance from the Criminal Records Bureau. The Trustees are committed to implementing all policies and procedures of the Catholic Safeguarding Advisory Service (CSAS). All our communities have now become aligned with the Roman Catholic Diocese of Southwark’s Safeguarding Commission. Theresa Blythin our part-time Sector Secretary has taken on the position of Local Safeguarding Officer.

All safeguarding representatives will ensure that any allegations of abuse are promptly reported to the Charities Commission and that the statutory authorities which may become involved are given the fullest support.

An update on training was carried out at both Assemblies in 2020 and this has now become an annual feature at our annual National Assembly.

In England we use the CSAS Manual for our Safeguarding Policy.

The Trustees continue to promote the study of the document ‘Integrity in Ministry’ produced by the Conference of Religious in order that the communities are familiar with its content and are able to make full use of it in our training and Safeguarding Procedures.

The sector leader has completed an online safer recruitment training course and will encourage all Trustees and Community Leaders to complete the same course.

Three of the Trustees as well as our Safeguarding representative took part in sessions run by the Conference of Religious in order to find the way forward for all religious communities in England and Wales with regard to the management and implementation of Safeguarding policies and actions.

FUNDRAISING POLICY

The charity aims to achieve best practice in the way in which it communicates with donors and other supporters.

The charity 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 manages its own 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.

20

SISTERS OF THE HOLY FAMILY

TRUSTEES REPORT (Continued)

FOR THE YEAR ENDED 31 DECEMBER 2020

DATA PROTECTION POLICY

The Charity registered with DPR on 1[st] May 2018.

We are conscious of the need to educate ourselves more fully on all the data we store particularly on staff members and new recruits.

Our Data protection principles:

The Charity is committed to processing data in accordance with its responsibilities under the GDPR.

Article 5 of the GDPR requires that personal data shall be:

• a. processed lawfully, fairly and in a transparent manner in relation to individuals;

• b. collected for specified, explicit and legitimate purposes and not further processed in a manner that is incompatible with those purposes; further processing for archiving purposes in the public interest, scientific or historical research purposes or statistical purposes shall not be considered to be incompatible with the initial purposes;

• c. adequate, relevant and limited to what is necessary in relation to the purposes for which they are processed;

• d. accurate and, where necessary, kept up to date; every reasonable step must be taken to ensure that personal data that are inaccurate, having regard to the purposes for which they are processed, are erased or rectified without delay;

• e. kept in a form which permits identification of data subjects for no longer than is necessary for the purposes for which the personal data are processed; personal data may be stored for longer periods insofar as the personal data will be processed solely for archiving purposes in the public interest, scientific or

• f. historical research purposes or statistical purposes subject to implementation of the appropriate technical and organisational measures required by the GDPR in order to safeguard the rights and freedoms of individuals; and processed in a manner that ensures appropriate security of the personal data, including protection against unauthorised or unlawful processing and gains

Since registration in 2018 the Data Protection Officer has been working on our own inhouse Data Protection including updating the addresses of the next of kin of our members. All members have asked for permission from their next of kin for their addresses to be stored in our system until they die. Names of next of kin will then be removed from our files.

Any groups who are attached to the Holy Family Sisters such as Lay Holy Family Members have given permission for their names, emails and addresses to be safely stored in our system with the assurance that they will not be passed on to any individuals or companies.

ETHICAL POLICY

The members of the charity take seriously their commitment to peace with justice for all people and to care of the environment. They have, therefore, developed an explicit ethical policy for investment which is in keeping with charity law while avoiding, where possible, investments which have specific negative social or environmental impact, or conflict with Church teaching.

Fund managers observe these restrictions while maintaining a strategy to maximise total returns, income and capital within acceptable levels of risk.

An active, practical concern for the environment and protection of the planet forms a basic part of the members lives and is of increasing concern to the Trustees who are presently reviewing our ethical investment policy in the light of the present climate crisis.

The Charity has an auto enrolment pension scheme for all employees.

21

SISTERS OF THE HOLY FAMILY

TRUSTEES REPORT (Continued)

FOR THE YEAR ENDED 31 DECEMBER 2020

FUTURE PLANS FOR THE CHARITY

Our financial resources are still such that we wish to make greater use of them and of our properties for public benefit. We continue our research into ways of accomplishing this and naturally aim to align ourselves with groups and projects that are in keeping with our own particular charism. The following are some actions and projects that we hope to take and support in the coming year:

• Responding to the call of Pope Francis who has asked that all religious communities look to the needs of refugees and asylum seekers in their midst. We are keen to do our part and are delighted that our project with the Jesuit Refugee service to 10 asylum seekers in Emilie House is now up and running.

• As the project develops we hope to be more involved with the project pastorally and educationally. Our house chaplain is also likely to have a pastoral involvement as well as our Lay Holy Family.

• We recognize that for such a project to function it would also need financial backing and as a way of being involved in the care of migrants and asylum seekers we have committed ourselves to an annual contribution of £80,000 for the next five years which is renewable.

• We wish to continue our support to the Margaret Clitherow Project. This Charity aims to serve marginalized communities in the U.K. This funding will assist them in the pastoral support they give to clients, their catechetical work as well as their training programmes and transport costs.

• Recognising that the modified property in Stockwell could in future years become too large for the community we have begun to consider how we might share the property whilst remaining resident in one section of the house.

One consideration is to make use of the house for retreats and days of reflection for individuals who would not have the finance to participate in such events.

Another consideration which the Trustees are in the process of discussing is the re development of part of the property into three or four small apartments that could be used for key workers, care assistants or lay holy family volunteers. The modifications necessary for this re development would be minimal but we can envisage that this could be a very good use of our property for future missionary/pastoral activity and would also provide an income in future years.

The decision has been taken by the Trustees to sell the property in Exmouth as it is now too large for our community needs. We are presently searching for sheltered accommodation for the sisters who wish to remain in the parish to continue their mission of pastoral support to the parish.

• Considering the current political and social situation of our sisters in Lebanon we intend to respond to their request for assistance with a grant of £30,000. This has yet to be finalised at our next Trustees meeting when we receive more information of the needs of the community.

• Conscious of the crisis in our world due to global warming and of our own need to reduce our carbon footprint we intend to review our Environmental Policy.

In line with this we are considering how we might look at alternatives to our present heating system which may well need to be replaced in line with government policy. We are presently looking at various greener alternatives. Heat pumps we are told can give you 50-60% reduction in a household’s greenhouse gas pollution footprint and shouldn’t increase the energy bill. This may be a choice that we make in the future.

We are trying to develop an inner - city roof garden that will attract bees and butterflies to assist pollination and to grow plants that will help to improve air quality in the locality.

22

SISTERS OF THE HOLY FAMILY

TRUSTEES REPORT (Continued)

FOR THE YEAR ENDED 31 DECEMBER 2020

TRUSTEES’ RESPONSIBILITIES

The Trustees of the charity are required to prepare for each financial year accounts 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 those financial statements, the Trustees are required to:

• select suitable accounting policies and then apply them consistently;

• 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 the reasonable accuracy at any time the financial position of the charity and to enable them to ensure that the financial statements comply with statutory requirements and with the Trust Deed. 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.

They are also responsible for identifying the major risks to which the charity is exposed, reviewing those risks and establishing systems to mitigate them.

So far as each of the Trustees is aware at the time the report is approved:

• there is no relevant audit information of which the charity’s auditors are unaware; and

• the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of this information.

The accounts accompanying this report comply with current statutory requirements and the Trust Deed and are the accounts for the Charitable Trust in which the assets of the Sisters of the Holy Family in the English Province are held.

The Trust is governed by a Deed dated 1 May 1964 as amended by a Charity Commission scheme of 12 February 1997 and is registered with the Charity Commission. The Charity Registration Number is 233108.

The Trustees wish to record their recognition of the professionalism and commitment of all their employees and the individual members of the Congregation. Their dedication and commitment to the Charity is deeply appreciated.

Approved by the trustees and signed on their behalf by:

Irena Madej

……………………………………………….

Sr Irena Madej Trustee

Date: 11 October 2021

23

Independent auditor’s report to the trustees of Sisters of the Holy Family

Opinion

We have audited the financial statements of Sisters of the Holy Family for the year ended 31 December 2020 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and 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 United Kingdom Generally Accepted Accounting Practice; and

• have been prepared in accordance with the requirements of the Charities Act 2011.

Basis for opinion

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act 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 trustee’s 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 directors 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 require us to report to you if, in our opinion:

• adequate accounting records have not been kept by the charity; or

• the charity’s financial statements are not in agreement with the accounting records and returns; or

• • certain disclosures of trustees’ remuneration specified by law are not made; or

• we have not received all the information and explanations we require for our audit;

24

Independent auditor’s report to the trustees of Sisters of the Holy Family (continued)

Responsibilities of trustees for the financial statements

As explained more fully in the trustees’ responsibilities statement set out on page 23, the trustee 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 sector in which it operates, we identified that the principal risks of non-compliance with laws and regulations related to regulatory requirements of the Charity Commission, 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.

We evaluated management’s opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to posting inappropriate journal entries and incorrect application of the income recognition policy for donation and legacies income. Audit procedures performed by the engagement team included:

• Inspecting correspondence with regulators;

• Discussions with management;

• Evaluating management’s controls designed to prevent and detect irregularities;

• Review of minutes of meetings to identify instances of fraud or irregularities;

• Identifying and testing journals, in particular journal entries posted with unusual account combinations, postings by unusual users or with unusual descriptions; and

• Challenging assumptions and judgements made by management in their critical accounting estimates, including review of how donation or legacies income has been recognised at the year end.

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. 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 Statutory Auditors 10 Queen Street Place London EC4R 1AG

Date: 11 October 2021

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

25

SISTERS OF THE HOLY FAMILY

STATEMENT OF FINANCIAL ACTIVITIES

FOR THE YEAR ENDED 31 DECEMBER 2020

		2020	2019
	Notes	£	£
INCOME from
Donations and legacies	1	222,020	227,767
Investments	2	460,645	582,022
		------------------------	------------------------
Total Income		682,665	809,789
		------------------------	------------------------
EXPENDITURE on
Cost of raising funds
- Investment management fees		76,418	79,386
Charitable activities	3
- Support of members of the Congregation and their ministry		645,378	764,928
- Donations and grants paid		834,013	144,254
		------------------------	------------------------
Total expenditure		1,555,809	988,568
		------------------------	------------------------
Net (expenditure) before gains/(losses) on investments		(873,144)	(178,779)
Other recognised gains and losses
Net gains on investments		584,901	2,364,196
Realised gains on The Phoenix Pension Scheme		234,786	-
		------------------------	------------------------
Net (expenditure)/income and net movement in funds for the year		(53,457)	2,185,417
Total funds brought forward		25,182,044	22,996,627
		------------------------	------------------------
Total funds carried forward at 31 December 2020		£25,128,587	£25,182,044
		============	============

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

The accompanying notes form part of these financial statements.

All funds are unrestricted funds.

26

SISTERS OF THE HOLY FAMILY

BALANCE SHEET

AS AT 31 DECEMBER 2020

			2020		2019
	Notes	£	£	£	£
FIXED ASSETS
Tangible fixed assets	9		4,597,701		4,556,075
Investments	10		20,006,548		19,567,054
			---------------------		---------------------
			24,604,249		24,123,129
CURRENT ASSETS
Debtors	11	319,869			109
Cash		893,425		1,103,461
		--------------------		--------------------
		1,213,294		1,103,570
CREDITORS:Amounts falling
due within one year	12	(124,544)		(44,655)
		--------------------		--------------------
NET CURRENT ASSETS			1,088,750		1,058,915
CREDITORS:Amounts falling
due after more than one year	12		(564,412)		-
			-----------------------		-----------------------
NET ASSETS			£25,128,587		£25,182,044
			===========		===========
FUNDS
General unrestricted funds			5,030,886		4,975,969
Designated	13
- Fixed Assets		4,597,701		4,556,075
- Retirement Fund		13,000,000		13,000,000
- Charitable Projects Fund		2,500,000		2,500,000
- Building Fund		-		150,000
		---------------------		---------------------
			20,097,701		20,206,075
			-----------------------		-----------------------
			£25,128,587		£25,182,044
			===========		===========

Approved by the Trustees on 11 October 2021 and signed on their behalf by

Irena Madej

Sister Irena Madej Trustee

The accompanying notes form part of these financial statements.

27

SISTERS OF THE HOLY FAMILY

CASH FLOW STATEMENT

FOR THE YEAR ENDED 31 DECEMBER 2020

		2020	2019
	Notes	£	£
Cash flows from Operating Activities
Net cash outflow from operating activities	A	(697,918)	(724,890)
		-------------------	-------------------
Cash flows from investing activities
Dividends and interest from investments		460,645	582,022
Payments to acquire fixed assets		(118,170)	(732,255)
Payments to acquire investments		(1,515,637)	(1,956,895)
Receipts from sales of investments		1,661,044	2,032,155
		--------------------	--------------------
Net cash provided by/(used in) investing activities		487,882	(74,973)
		--------------------	--------------------
Change in cash and cash equivalents in year	C	(210,036)	(799,863)
Cash and cash equivalents at 1 January 2020		1,103,461	1,903,324
Change in cash and cash equivalents due
to exchange rate movements		-	-
		--------------------	--------------------
Cash and cash equivalents at 31 December 2020	B	£893,425	£1,103,461
		===========	===========
Notes to the Cash Flow Statement
A. Reconciliation of net movement in funds to net cash flow from operating		activities
		2020	2019
		£	£
Net movement in funds
(as per the Statement of Financial Activities)		(53,457)	2,185,417
Adjustments for
(Gains)/Losses on investments		(584,901)	(2,364,196)
Dividends and interest from investments		(460,645)	(582,022)
Depreciation		76,544	73,779
(Increase)/Decrease in debtors		(319,760)	791
Increase/(Decrease) in creditors		644,301	(38,659)
		--------------------	--------------------
Net cash (used in) operating activities		(697,918)	(724,890)
		===========	===========
B. Analysis of cash and cash equivalents
Cash at bank and in hand		£893,425	£1,103,461
		===========	===========
C. Analysis of changes in net cash funds
At 1 January			At 31 December
2020		Cashflows	2020
£		£	£
1,103,461		(210,036)	893,425
--------------------		--------------------	--------------------
£1,103,461		£(210,036)	£893,425
===========	===========		===========

28

SISTERS OF THE HOLY FAMILY

PRINCIPAL ACCOUNTING POLICIES

FOR THE YEAR ENDED 31 DECEMBER 2020

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

Statement of Compliance

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) – Charites SORP (FRS102) (second edition, effective 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) and the Companies Act 2006.

The charity meets the definition of a public benefit entity under FRS102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s).

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:

• estimating the economic useful life of tangible fixed assets.

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 one year from the date of approval of these accounts.

The Trustees of the charity have concluded that there are no material uncertainties related to events or conditions that may cast significant doubt on the ability of the charity to continue as a 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 2021, 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).

Fund accounting

Unrestricted funds are available to spend on activities that further any of the purposes of charity. Designated funds are unrestricted funds of the charity which the trustees have decided at their discretion to set aside to use for a specific purpose. Restricted funds are donations which the donor has specified are to be solely used for particular areas of the charity’s work or for specific projects being undertaken. To the extent that monies received for restricted purposes are fully utilised during the year, that is with no brought forward or carry forward balance of restricted funds, they are not shown as restricted in the Statement of Financial Activities.

29

SISTERS OF THE HOLY FAMILY

PRINCIPAL ACCOUNTING POLICIES

FOR THE YEAR ENDED 31 DECEMBER 2020

Income recognition

Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the item(s) of income have been met, it is probable that the income will be received and the amount can be measured reliably.

For legacies, 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(s) to the Trust 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, and the criteria for income recognition have not been met, then the legacy is a treated as a contingent asset and disclosed if material.

Income received in advance of the provision of care services service it is deferred until the criteria for income recognition are met.

In accordance with the Charities SORP FRS102, volunteer time is not recognised.

Dividends are recognised once the dividend has been declared and notification has been received of the dividend due. 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.

Expenditure recognition and irrecoverable VAT

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. Expenditure is classified under the following activity headings:

• Costs of raising funds comprise fees paid in respect of fund management advice in relation to the charity’s portfolio of quoted investments, which is managed under a discretionary management agreement.

• Expenditure on charitable activities includes the costs of running the charity’s convents as well as all other costs associated with furthering the charitable purposes of the charity through the provision of its charitable activities. These costs comprise charitable grants and donations, direct and support costs in respect to the support of members of the Congregation and their ministry. It also includes governance costs.

• Employment benefits, including holiday pay, are recognised in the period in which they are earned. Termination benefits are recognised in the period in which the decision is made and communicated to the relevant employee(s).

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 normally 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. The provision of a multi-year grant is recognised where settlement is due over more than one year from the date of the award, there are no unfulfilled performance conditions under the control of the charity that would permit the charity to avoid making the future payments, settlement is probable. Such grants are recognised at their discounted present value where the effect of the discounting is material. The discount rate used is the average rate of investment yield in the year in which the grant is made. This discount rate is regarded by the trustees as providing the most current available estimate of the opportunity cost of money reflecting the time value of money to the charity.

Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.

Allocation of 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. Support costs are allocated to activities on the basis of estimated usage and are currently entirely allocated to Support of Members of the Congregation and their ministry.

30

SISTERS OF THE HOLY FAMILY

PRINCIPAL ACCOUNTING POLICIES

FOR THE YEAR ENDED 31 DECEMBER 2020

Tangible fixed assets

Tangible fixed assets are stated at cost less accumulated depreciation. Individual fixed assets costing £2,000 or more are capitalised at cost and are depreciated over their estimated useful economic lives on a straight-line basis as follows:

	Annual rate
Freehold land	Nil
Freehold buildings	2%
Fixtures and fittings	10%
Motor vehicles	25%

Financial Instruments

The charity only holds financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.

Investments

Investments are a form of basic financial instrument and are initially shown in the financial statements at market value. Movements in market value are shown as unrealised gains and losses in the financial statements.

In addition, the charity has established a pension scheme for certain sisters. The scheme is a Deferred Annuity Contract whereby a certain guaranteed sum is payable to the charity at a fixed future date. No value can readily be attributed to the contract as future returns are dependent on bonuses which in turn depend on investment returns and inflation. Therefore the asset included in the balance sheet in respect of this scheme is valued on the basis of premiums paid to date in respect of Sisters still in the scheme. Receipts on maturity are credited to the Statement of Financial Activities net of the relevant premiums.

Debtors

Trade and other debtors are recognised at the settlement amount due. Prepayments are valued at the amount prepaid.

Cash at bank and in hand

Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account. Deposits for more than three months and up to one year have been disclosed as short-term deposits. Cash placed on deposit for more than one year is disclosed as a fixed asset investment.

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.

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.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of the transaction. Exchange differences are taken into account in arriving at the net movement in funds.

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 6. 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.

31

SISTERS OF THE HOLY FAMILY

NOTES TO THE FINANCIAL STATEMENTS (Continued)

FOR THE YEAR ENDED 31 DECEMBER 2020

1.	DONATIONS AND LEGACIES	2020	2019
		£	£
	Sisters' salaries and pensions	212,625	224,648
	Furlough support	7,853	-
	Other donations	1,542	3,119
	Legacies	-	-
		--------------------	--------------------
		£222,020	£227,767
		==========	==========
2.	INVESTMENT INCOME	2020	2019
		£	£
	Income from listed securities and cash held by Brokers	459,894	578,887
	Bank and other interest	751	3,135
		--------------------	--------------------
		£460,645	£582,022
		==========	==========
3.	EXPENDITURE ON CHARITABLE ACTIVITIES	2020	2019
		£	£
	Support of members of the Congregation and their ministry
	Sisters' living and ministry expenses	397,800	492,972
	Premises costs	65,844	99,108
	Charitable Projects (Music & Education)	1,080	3,240
	Depreciation	76,544	73,779
	Other support costs	83,090	75,129
	Governance costs (note 4)	21,020	20,700
		--------------------	--------------------
		645,378	764,928
	Donations and grants	------------------	------------------
	Support of the overseas mission of the Congregation
	Generalate	27,630	30,022
	Indian Mission	-	8,042
	Ivory Coast Mission	5,035	-
	Bolivia Mission	-	20,039
		--------------------	--------------------
		32,665	58,103
		------------------	------------------
	Grants to other organisations
	Margaret Clitherow Trust	40,000	40,000
	St Anne's School	30,000	30,000
	Jesuit Refugee Service	724,412	-
	Appeal re Parish Church Roof Repairs	1,000	-
	Clergy Support Group	2,000	2,000
	St Francis de Sales Church Donation	100	1,500
	JMBS Leprosy Care Centre Project	-	5,000
	Centre For Catholic Education Annual Donation	-	4,000
	General alms & donations	2,836	2,322
	Various	1,000	1,329
		--------------------	--------------------
		801,348	86,151
		--------------------	--------------------
	Total Donations and grants	834,013	144,254
		--------------------	--------------------
	Total Charitable Expenditure	£1,479,391	£909,182
		==========	==========

32

SISTERS OF THE HOLY FAMILY

NOTES TO THE FINANCIAL STATEMENTS (Continued)

FOR THE YEAR ENDED 31 DECEMBER 2020

4.	GOVERNANCE COSTS	2020	2019
		£	£
	Auditors remuneration
	- Statutory audit	10,600	10,820
	Other professional fees	10,420	9,880
		--------------------	--------------------
		£21,020	£20,700
		==========	==========
5.	NET MOVEMENT IN FUNDS	2020	2019
		£	£
	This is stated after charging/(crediting):
	Exchange (gain)/loss	(4,125)	17,617
	Staff costs (note 7)	38,459	39,636
	Auditors remuneration
	- Statutory audit	10,600	10,820
	Depreciation	76,544	73,779
		===========	===========

6. STAFF COSTS AND REMUNERATION OF KEY PERSONNEL

Staff costs are minor as the activities of the Charity are conducted by Sisters of the Society who receive no remuneration.

Expenditure on charitable activities includes Domestic wages as follows:

Expenditure on charitable activities includes Domestic wages	as follows:
	2020	2019
	£	£
Wages and salaries	36,229	37,588
Social security costs	1,320	1,130
Other pension costs	910	918
	----------------------	----------------------
	£38,459	£39,636
	===========	===========
	No	No
The average number of employees in the year was:	5	5
	===========	===========

The number of employees whose emoluments exceeded £60,000 was nil (2019: nil).

The key management personnel of the charity in charge of directing and controlling, running and operating the charity on a day-to-day basis solely comprises the trustees.

The total remuneration of (including taxable benefits but excluding employer's pension contributions) of the key management personnel was nil (2019: nil).

33

SISTERS OF THE HOLY FAMILY

NOTES TO THE FINANCIAL STATEMENTS (Continued)

FOR THE YEAR ENDED 31 DECEMBER 2020

7. TRUSTEES' EXPENSES & REMUNERATION AND TRANSACTIONS WITH TRUSTEES

The Trustees of the Charity are also members of the Congregation 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 Congregation within the Province.

The living costs of the four Trustees are therefore borne by the Charity.

8. TAXATION

The Sisters of the Holy Family is a registered charity and therefore is not liable to Income Tax or Capital Gains Tax on income or gains derived from its charitable activities as it falls with the various exemptions available to registered charities.

9.

TANGIBLE FIXED ASSETS	Freehold land	Fixtures &	Motor
	and building	Fittings	Vehicles	Total
	£	£	£	£
COST OR VALUATION
At 1 January 2020	5,283,818	47,230	14,176	5,345,224
Additions	111,515	6,655	-	118,170
	----------------------	---------------------	---------------------	----------------------
At 31 December 2020	5,395,333	53,885	14,176	5,463,394
	---------------------	--------------------	--------------------	---------------------
DEPRECIATION
At 1 January 2020	737,031	37,942	14,176	789,149
Charge for the year	69,235	7,309	-	76,544
	-------------------	--------------------	-------------------	--------------------
At 31 December 2020	806,266	45,251	14,176	865,693
	-------------------	--------------------	-------------------	--------------------
NET BOOK VALUE
At 31 December 2020	£4,589,067	£8,634	£-	£4,597,701
	===========	==========	==========	===========
At 31 December 2019	£4,546,787	£9,288	£-	£4,556,075
	===========	==========	==========	===========

Net book value at 31 December 2020 represents Fixed Assets used for direct charitable purposes.

34

SISTERS OF THE HOLY FAMILY

NOTES TO THE FINANCIAL STATEMENTS (Continued)

FOR THE YEAR ENDED 31 DECEMBER 2020

10.	INVESTMENTS		Total	Total
			2020	2019
			£	£
	Quoted investments
	Balance at 1 January 2020		19,446,891	17,161,517
	Additions		1,573,898	1,953,333
	Disposals
	Proceeds	1,661,044	2,032,155
	Gains/(Losses)	(234,844)	46,892
		------------------------	------------------------
			(1,895,888)	(1,985,263)
	Unrealised (loss)/gain		819,745	2,317,304
			------------------------	------------------------
			£19,944,646	£19,446,891
			============	============
	Listed on a UK stock exchange		19,522,952	19,186,833
	Bank deposits		421,694	260,058
			------------------------	------------------------
			19,944,646	19,446,891
	Deferred Annuity contracts - cost		61,902	120,163
			------------------------	------------------------
	Balance at 31 December 2020		£20,006,548	£19,567,054
			============	============
	The cost of the quoted investments was £13,935,549 (2019:		£13,432,589)
	Quoted investments comprise:-
			2020	2019
			£	£
	Fixed interest securities		2,355,216	2,564,961
	UK Equities		10,528,328	10,555,571
	Overseas investments - Investment and	Unit trusts	6,639,408	6,066,301
	Cash		421,694	260,058
			------------------------	------------------------
			£19,944,646	£19,446,891
			============	============

35

SISTERS OF THE HOLY FAMILY

NOTES TO THE FINANCIAL STATEMENTS (Continued)

FOR THE YEAR ENDED 31 DECEMBER 2020

11.	DEBTORS
		2020	2019
		£	£
	Prepayments and accrued income	24,957	-
	Other debtors	44	109
	The Phoenix Pension Scheme	294,868	-
		------------------------	------------------------
		£319,869	£109
		============	============
12a)	CREDITORS: Amounts falling due within one year
		2020	2019
		£	£
	Accrued Grants - Jesuit Refugee Service	80,000	-
	Accruals and deferred income	44,044	44,155
	Taxation & social security	500	500
		------------------------	------------------------
		£124,544	£44,655
		============	============
12b)	CREDITORS: Amounts falling due after more than one year
		2020	2019
		£	£
	Accrued Grants - Jesuit Refugee Service	564,412	-
		------------------------	------------------------
		£564,412	£-
		============	============

36

SISTERS OF THE HOLY FAMILY

NOTES TO THE FINANCIAL STATEMENTS (Continued)

FOR THE YEAR ENDED 31 DECEMBER 2020

13. DESIGNATED FUNDS

The trustees have designated funds out of the unrestricted funds for specific purposes as follows:

Fixed Assets Fund

In order to fulfil its charitable objectives the Charity needs a number of properties and other fixed assets. These assets, although they are for unrestricted purposes, cannot be realised without undermining the Charity's work and the trustees therefore feel that it is appropriate to reflect the investment in fixed assets by means of a designated fund. Depreciation is charged against the fund. Transfers are made to reflect the net investment/disinvestment in fixed assets during the year.

Retirement Fund

A fund has been designated to provide for the Charity's commitment to provide for the retirement and care in old age and sickness of its members. Transfers from general funds are credited to this fund. In 2010 the fund was re-assessed in the light of lower interest rates. There are 23 professed Sisters to provide for and estimates indicate a fund of at least £13million is required to finance the Charity's commitment to provide care for its elderly members after taking account of their occupational pension rights. The trustees are in the process of reviewing the level of the designation with a view to releasing funds for other purposes now that the number of sisters has fallen.

Charitable Projects Fund

The Trustees have set aside this fund in order to finance giving to charitable projects that they wish to support but for which they lack the personnel. The fund will provide both capital and income. The Trustees are currently identifying the projects that they will support and the funds that they can commit to each of these. Further details are set out in the Future Plans section of the Trustees’ Report.

Building Fund

During 2020, the Fund was reduced to Nil – see note 15 below

	Balance	Net Income/		Balance
	1 January 2020	(Expenditure)	Transfers	31 December 2020
Movements - Current year	£	£	£	£
Fixed asset fund	4,556,075	(76,544)	118,170	4,597,701
Retirement fund	13,000,000	-	-	13,000,000
Charitable Projects Fund	2,500,000	-	-	2,500,000
Building Fund	150,000	-	(150,000)	-
	------------------------	--------------------	----------------------	------------------------
	£20,206,075	£(76,544)	£(31,830)	£20,097,701
	=============	==========	===========	=============
	Balance	Net Income/		Balance
	1 January 2019	(Expenditure)	Transfers	31 December 2019
Movements - Prior year	£	£	£	£
Fixed asset fund	3,897,599	(73,779)	732,255	4,556,075
Retirement fund	13,000,000	-	-	13,000,000
Charitable Projects Fund	2,500,000	-	-	2,500,000
Building Fund	800,000	-	(650,000)	150,000
	------------------------	--------------------	----------------------	------------------------
	£20,197,599	£(73,779)	£82,255	£20,206,075
	=============	==========	===========	=============

37

SISTERS OF THE HOLY FAMILY

NOTES TO THE FINANCIAL STATEMENTS (Continued)

FOR THE YEAR ENDED 31 DECEMBER 2020

14. ANALYSIS OF NET ASSETS Fund Balances at 31 December 2020

were represented by:

General Fund £ Tangible fixed assets - Investments 4,706,548 Current assets 1,013,294 Current liabilities (688,956) --------------------------- £5,030,886 ============

Designated Funds Fixed Assets Retirement Fund Charitable Projects Fund Building Fund Total £ £ £ £ £ 4,597,701 - - - 4,597,701 - 13,000,000 2,300,000 - 20,006,548 - - 200,000 - 1,213,294 - - - - (688,956) ------------------------ ------------------------- ---------------------- ---------------------- ------------------------- £4,597,701 £13,000,000 £2,500,000 £- £25,128,587 =========== ============ =========== ========== ============

Fund Balances at 31 December 2019

were represented by:

General Fund £ Tangible fixed assets - Investments 4,267,054 Current assets 753,570 Current liabilities (44,655) ------------------------ £4,975,969 ============

Designated Funds Fixed Assets Retirement Fund Charitable Projects Fund Building Fund Total £ £ £ £ £ 4,556,075 - - - 4,556,075 - 13,000,000 2,300,000 - 19,567,054 - - 200,000 150,000 1,103,570 - - - - (44,655) ------------------------- ---------------------- ---------------------- ------------------------- ------------------------- £4,556,075 £13,000,000 £2,500,000 £150,000 £25,182,044 =========== ============ =========== ========== ============

15. CAPITAL COMMITMENTS

Authorised and contracted for

2020	2019
£	£
£-	£150,000
============	============

The above commitment relates to a project to refurbish and improve the charity's property in Stockwell, London.

38