OpenCharities

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

2021-12-31-accounts

SISTERS OF THE HOLY FAMILY TRUSTEES’ REPORT AND FINANCIAL STATEMENTS AT 31 DECEMBER 2021 Registered Charity No. 233108

Haysmacintyre LLP Chartered Accountants Registered Auditors London

CONTENTS

REFERENCE AND ADMINISTRATIVE DETAILS 1-2
TRUSTEES’ ANNUAL REPORT 1-24
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 10
Caring for the Elderly Members of the Congregation 11-12
Grant Making 13-14
Number of hours of volunteered work by members of the charity 15
Individual case profile of a Lay Holy Family member in mission 16
FINANCIAL REVIEW 17-18
Independent Auditor’s Report 25-26
Statement of financial activities 27
Balance sheet 28
Cash flow statement 29
Notes to the financial statements 33-40
RISK MANAGEMENT AND POLICIES
Risk Management 19-20
Safeguarding 21
Fundraising Policy 21
Data Protection Policy 22
Ethical Policy 22
Principal Accounting Policies 30-32
FUTURE PLANS 23
TRUSTEES’ RESPONSIBILITIES 24

SISTERS OF THE HOLY FAMILY

LEGAL AND ADMINISTRATIVE DETAILS

FOR THE YEAR ENDED 31 DECEMBER 2021

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: 020 7582 2016 Fax: 020 7735 6568 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

1

SISTERS OF THE HOLY FAMILY

LEGAL AND ADMINISTRATIVE DETAILS (continued)

FOR THE YEAR ENDED 31 DECEMBER 2021

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

2

SISTERS OF THE HOLY FAMILY

TRUSTEES REPORT

FOR THE YEAR ENDED 31 DECEMBER 2021

The Trustees are pleased to present the report and accounts for the year ended 31st December 2021 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. The Legal Representative of the Animation Team is a trustee.

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 as well as ensuring that the community as far as possible responds to the most pertinent needs of the locality in which they are inserted.. 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 throughout the year both internally and externally.

3

SISTERS OF THE HOLY FAMILY

TRUSTEES REPORT (Continued)

FOR THE YEAR ENDED 31 DECEMBER 2021

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, 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

4

SISTERS OF THE HOLY FAMILY

TRUSTEES REPORT (Continued)

FOR THE YEAR ENDED 31 DECEMBER 2021

ACHIEVEMENT AND PERFORMANCE IN MISSION (continued)

1. WORSHIP AND PRAYER (continued)

Through their ministry they:

PARTICULAR ACHIEVEMENTS FOR THIS YEAR IN WORSHIP AND PRAYER

With most of the Covid restrictions lifted many of the activities which we normally carry out with parishioners and other groups were able to resume.

Bible study courses were run during the Advent and Lenten Seasons as well as other days for interested parishioners.

Lay Holy Family members were encouraged to come and use our gardens for contemplation and ongoing study sessions were held.

Our annual founders day was celebrated with the unveiling of our freshly painted statue of Saint Emilie

Following on from a very successful ecological retreat for our elderly sisters in 2020 we organised a follow up 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.

Retreats at various venues were attended by members of the Congregation.

Our Women’s Group were able to get together once again with meetings via zoom. This group brings together women from various parishes for prayer, education and empowerment for their particular mission in the Church.

Our chaplain Fr. Gerry Mulvihill, continues to celebrate Mass each day for our elderly sisters as well as other spiritual celebrations. This provides great spiritual support and comfort to the community at Stockwell.

5

SISTERS OF THE HOLY FAMILY

TRUSTEES REPORT (Continued)

FOR THE YEAR ENDED 31 DECEMBER 2021

Challenges for the Future with regards to Worship and Prayer

2. SOCIAL AND PASTORAL WORK

Members of the Congregation who still remain active 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 as our numbers drop and age levels rise it is obviously becoming more difficult for us to manage these ministries. 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 and thus we are networking more with other charities such as the Jesuit Refugee Service, Chain of Hope and others.

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’. In former years this group provided counselling on our premises but now are more involved with preparing couples for their forthcoming marriages in the Catholic Church.

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.

6

SISTERS OF THE HOLY FAMILY

TRUSTEES REPORT (Continued)

FOR THE YEAR ENDED 31 DECEMBER 2021

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, providing 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. This will resume hopefully in the near future and we are in constant communication with this organisation.

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

7

SISTERS OF THE HOLY FAMILY

TRUSTEES REPORT (Continued)

FOR THE YEAR ENDED 31 DECEMBER 2021

PARTICULAR ACHIEVEMENTS THIS YEAR IN SOCIAL AND PASTORAL WORK

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.

CHALLENGES FOR THE FUTURE WITH REGARDS TO PASTORAL CARE

8

SISTERS OF THE HOLY FAMILY

TRUSTEES REPORT (Continued)

FOR THE YEAR ENDED 31 DECEMBER 2021

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 disadvantaged. 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 overseas projects. This has not yet been finalized due to the difficulties encountered for meeting during the Covid restrictive period. Trustees will finalise this in 2022.

LEBANON

For nearly two years now, Lebanon has been assailed by compounded crises—specifically, an economic and financial crisis, followed by COVID-19 and, lastly, the explosion at the Port of Beirut on August 4, 2020. Our Sisters write to us of their increasing difficulties and have requested assistance from their religious community around the globe. In response to their cry for help we made the decision to send £30,000 in 2021 and with a promise that we might be able to support them in the coming year.

Our schools in the Lebanon educate both boys and girls in a multifaith environment. They are very keen on the development of the whole human person and the equality of both male and female students. Many of the students come from families with financial difficulty and this is increasing with the present socio-economic crisis.

We have received confirmation from our sisters in Fanar that the bulk of the money which we sent in 2021 was used for a surge protection system which was a real necessity as the school in Fanar is situated in a high risk lightning area and a series of accidents have already occurred with tragic losses. The protection system included an earthing system, protection for boiler pumps as well as protection for computer rooms, data line, power line and UPS units.

A certain amount of the money was given over to updating IT equipment in both schools at Fanar and Jounieh. Various attempts had been made in the past few years to ensure the suitability of the schools IT equipment to coincide with the development of academic curricula.. The degrading economic crisis in the country significantly hampered these efforts. The grant which was very gratefully received assisted both schools with an initial upgrade.

Some of the funds were also used for the payment of staff members and for assisting students whose families are in great financial difficulties at this time.

9

SISTERS OF THE HOLY FAMILY

TRUSTEES REPORT (Continued)

FOR THE YEAR ENDED 31 DECEMBER 2021

3. THE SUPPORT OF OVERSEAS MISSIONARY and DEVELOPMENT WORK

BOLIVIA

Following on from our decision to respond to the call for assistance from our Sisters in Bolivia we sent £20,000 to the project detailed below by a Sister of the Holy Family.

NAME OF THE PROJECT: “HOGAR SANTA EMILIA “ REQUEST OF FINACIAL SUPPORT FOR THE “HOGAR SANTA EMILIA” –

PROJECT DESCRIPTION AND REQUEST FOR HELP

The “Hogar Santa Emilia” is in Bolivia, in the Department of Cochabamba, in the municipality of Vinto, located about 18 kilometres from the city, in the area of Campos Verdes, C/ Colombia, Manzana K-20.

It is an area populated by migrant families that is urbanizing slowly and still does not have all the basic services: sewerage, paved streets, poor lighting, lack of sidewalks, and lack of public transport …

There are 15 girls, aged between 3 and 18, living in the “Hogar Santa Emilia”, they have been assigned to the Hogar by the Department of Social Services of Vinto.

The Hogar aims to be a place of welcome, a family, a reference point, that gives love, attention, care, training, and the stability that the girls and teenagers need.

It has the following staff:

This mission is in need of collaboration in different areas: Administration, education, cooking, health, in the daily living expenses... to give the girls and teenagers an education which takes into account the whole person.

It is a mission results are not immediately evident but the team believes that the Hogar provides all the necessary means to form its members for a dignified life in the society. This mission generates fatigue in staff members as well as lot of economic costs Children are very vulnerable, many of them are abandoned, without social alternatives of living conditions: housing, food and health... The “Hogar Santa Emilia”, in their work and service to the needy girls, generates positive effects that affect civil society.

For us, to count on your support is very important, necessary and meaningful. Therefore, we dare to ask for your collaboration, making you participants of this great mission, the mission of the “Hogar Santa Emilia”.

10

SISTERS OF THE HOLY FAMILY

TRUSTEES REPORT (Continued)

FOR THE YEAR ENDED 31 DECEMBER 2021

3. CARING FOR THE ELDERLY MEMBERS OF THE CONGREGATION

----- Start of picture text -----
Age Profile - 31 December 2021
8
7
6
5
4
3
2
1
0
30-39 40-49 50-59 60-69 70-79 80-89 90+
19 Sisters
----- End of picture text -----

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, seven 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:

11

SISTERS OF THE HOLY FAMILY

TRUSTEES REPORT (Continued)

FOR THE YEAR ENDED 31 DECEMBER 2021

PARTICULAR ACHIEVEMENTS THIS YEAR IN CARING FOR THE ELDERLY MEMBERS

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.

----- Start of picture text -----
Visits from friends for our elderly Care of the environment Prayer Vigil with Chaplain
members
----- End of picture text -----

CHALLENGES FOR THE FUTURE WITH REGARDS TO CARE OF ELDERLY MEMBERS

Finding suitable accommodation for those who eventually need residential care.

Ensuring that the members have adequate social and occupational activities to suit their needs, whilst still living in community.

12

SISTERS OF THE HOLY FAMILY

TRUSTEES REPORT (Continued)

FOR THE YEAR ENDED 31 DECEMBER 2021

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

We continue to support the above charity which seeks 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 demands 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.

13

SISTERS OF THE HOLY FAMILY

TRUSTEES REPORT (Continued)

FOR THE YEAR ENDED 31 DECEMBER 2021

We continued with our grant of £30,000. To Saint Anne’s School Vauxhall where the children from our local parish and surrounding parishes attend. We are happy to be involved in local education projects in some way as it is so close to the ethos of our Congregation and was the primary motivation of our foundress. The Head Teacher, Mrs Catherine Davis, has written:

St Anne’s Catholic Primary School, Durham Street, London SE11 5JA Sisters of the Holy Family of St Emilie - Funding for St Anne’s Catholic Primary School

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

Telephone: 020 7735 4516 ● Fax: 020 7820 8757 Email: admin@st-annes.lambeth.sch.uk ● Web: www.st-annes.lambeth.sch.uk Head Teacher: Mrs Catherine Davis

09 November 2021

Dear Holy Family Sisters

RE: Financial Assistance for St Anne’s Catherine Davis Head Teacher

Please inform the Board of Trustees that we are so very grateful for the Holy Family Sisters’ extremely generous donation of £30,000. I really don’t know what we would do without it, especially this year. Your donation has meant that, during these difficult times, we have managed to continue to keep several classes as straight classes, not mixed age vertical groupings, and also managed to keep pupil numbers down in those classes, providing a much higher than usual teacher to pupil ratio.

Our children have been through such a difficult time since this pandemic started, dealing with anxiety about the virus and sickness, and losing out on so much education due to the two periods of school closure. The more we can do to settle them back in to ‘normal’ school life and support them in catching up on their missed learning, the better. Your extremely generous donation is supporting us in supporting them in the best possible ways that we can.

Thank you from the staff, the parents, the governors and most importantly, the children!

Yours sincerely Catherine Davis Head Teacher

14

SISTERS OF THE HOLY FAMILY

TRUSTEES REPORT (Continued)

FOR THE YEAR ENDED 31 DECEMBER 2021

ACHIEVEMENT AND PERFORMANCE IN GRANT MAKING (continued)

CHALLENGES FOR THE FUTURE WITH REGARDS TO GRANT MAKING

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
5		 38
Social Work:
Work in Care Centres + Visitation of the Sick		 6 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 86
Total 33 247

15

SISTERS OF THE HOLY FAMILY

TRUSTEES REPORT (Continued)

FOR THE YEAR ENDED 31 DECEMBER 2021

INDIVIDUAL CASE PROFILE OF A RETIRED BUT STILL ACTIVE MEMBER OF THE CHARITY:

( Sr. Kathleen English: Stockwell Community)

I am a retired sister living in community with both active and retired sisters. The retired sisters in community naturally have more time on their hands and so prayer becomes a very important ministry for us. We support the requests of many people who write to us, phone us or visit to ask for prayers.

Having taught and lived in various communities throughout my life I still have many contacts with former pupils, staff members and parishioners who keep in touch. They often write when there is a particular crisis or a sadness in their lives that they are having to deal with. They tell us that our prayer and spiritual advice is a comfort and support to them. At the moment, for example, I am taking special care with an elderly gentleman of ninety two years of age who has recently lost his wife. The grieving process for him is very difficult especially as he has had to move into a retirement home. I believe that giving time to such a mission is an essential part of our calling and although I can only carry it out on a small scale it is worthwhile.

As the house I live in is the central house for the Sector I am sometimes called upon to give English lessons to visiting sisters who may be in need of extra coaching. This always brings me joy and keeps me in touch with my teaching skills. I also spend the afternoons answering the door and phones. The ministry of hospitality is very important in our house and I like to make a special effort to make all callers feel welcome.

We have quite a number of groups visiting our house. I welcome those who come for Marriage Preparation, the Sacramental and Study Groups and I am particularly involved with some elderly parishioners who come to our ‘Knit and Natter’ Group. This is a real friendship group for the elderly and also gives the opportunity to for all of us to learn new skills. Some of the completed articles are sent to another charity called ‘Knit for Peace’ and then sent on to areas of need around the world.

Our communities are ever conscious of the problems our planet faces with global warming. I am involved in the day to day management of the house and this involves making sure we do all we can to use the earth’s resources carefully and to recycle diligently. We use our little garden well and I have been involved in sowing and planting flowers for our rooftop garden as a way of encouraging bees and butterflies to thrive in inner city London.

I am now eighty six years of age but happy that I can still contribute to the life of our Congregation and our Charity in a small but active way.

16

SISTERS OF THE HOLY FAMILY

TRUSTEES REPORT (Continued)

FOR THE YEAR ENDED 31 DECEMBER 2021

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 considerably higher at £1.045m compared to £682.7k in 2020. The increase was principally due to a gain, over net book value, on the sale of Fixed Assets of £351.7k, as a result of the sale of the charity’s property in Tullamore, Ireland, which had become surplus to requirements. It was anticipated in the wake of the COVID-19 pandemic, that investment income remains at a considerably lower level but in 2021 its level increased to almost £500k having fallen to £460.6k in 2020. Other voluntary income, which principally consists of Sisters’ pensions donated, again fell and it is expected that this is a trend that will continue over the longer term, with an ageing group of sisters. As a result, there will be an increasing dependency on investment income. .

Strict control has continued to be maintained over general expenditure. It reduced to £882.3k in 2021 after being significantly higher in 2020 at £1.56m - due mainly to a commitment made to pay a grant of £80k per year, over the next 10 years, to the Jesuit Refugee Service (JRS). Costs of support of Sisters & their Ministry decreased due to reductions in several categories of Community expenses, most notably medical costs and salaries. Expenditure in the form of Donations and Grants in 2021 was £170k. In 2020, this included the JRS Grant of £834.03k, on a timediscounted basis. Support of Overseas Missions of the Congregation increased with sums paid towards the Congregation’s work in India, Bolivia and Lebanon. However, no sum was sent to Ivory Coast in 2021. Grants to other organisations once again included £41k to the Margaret Clitherow Trust and £30k to St Anne’s School in Vauxhall.

The result for the year was net income before investment gains/losses of £163k (2020: net expenditure of £873.1k). The year saw substantial investment gains of £2.41m. This included a gain of £211.1k on the only remaining deferred annuity contract linked to the life of a sister which reached maturity during 2021. In 2020, the gains on investments and the maturity of a deferred annuity contract were £584.9k and £234.8k respectively.

Overall, there was a net surplus of funds of £2.57m (2020: deficit of £53.5k). As a result, the reserves of the Charity grew to just over £27.7m (2020: £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 +13.5% (2020: +5.3%). 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.

17

SISTERS OF THE HOLY FAMILY

TRUSTEES REPORT (Continued)

FOR THE YEAR ENDED 31 DECEMBER 2021

RESERVES POLICY AND FINANCIAL POSITION

At the end of the year to 31 December 2021 the total funds of the charity stood at £27.7m. Of this, £4.5m 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 was reviewed during 2021 and it was decided that the level was adequate but not excessive provision for the charity’s commitment. The level will continue to be kept under review and further designations, or releases from the fund, will be considered as circumstances and needs change.

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 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:

The balance of over £7.7m in the General Funds at just over nine 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, and later years, as a result of the wider economic and social pressures that have become evident in recent months, with, for example, rising inflation and increasing levels of poverty. The Trustees, therefore, will assess the level of the Charity's reserves against future commitments and spending plans as well as the needs that the charity and the wider Congregation might meet.

18

SISTERS OF THE HOLY FAMILY

TRUSTEES REPORT (Continued)

FOR THE YEAR ENDED 31 DECEMBER 2021

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 well managed. 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 2021 was 83 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:

• Health and Safety:

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.

Since Covid and with the increasing number of elderly and vulnerable members on our own 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.

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. As Trustees we have decided to keep this measure in place at least for one more year.

This year we aim for all staff and active members in the Central House to update their First Aid Training and for our kitchen employees update their Food and Hygiene training We are moving to greener/ safer cleaning products.

Our Certificate of Employees liability for 2022 – 2023 is displayed prominently in our workplaces.

19

SISTERS OF THE HOLY FAMILY

TRUSTEES REPORT (Continued)

FOR THE YEAR ENDED 31 DECEMBER 2021

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 on the various projects 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.

We are aware that we have not followed through on this training and are presently seeking advice on where we might go for such training.

20

SISTERS OF THE HOLY FAMILY

TRUSTEES REPORT (Continued)

FOR THE YEAR ENDED 31 DECEMBER 2021

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 sisters living in the Republic of Ireland are also aligned with the Irish Safeguarding Authorities (National Board for Safeguarding Children in the Catholic Church in Ireland (NBSCCCI)).

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 is our local Safeguarding Officer. Our safeguarding policies and procedures are regularly reviewed. The Sister-in- Charge and the Safeguarding Officer take part in regular updates and training, including zoom sessions during lockdown.

As we still have sisters living in community who are now quite elderly, we are aware that we need to develop our policy on the care and treatment of vulnerable adults.

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. In England we use the CSAS Manual ‘Integrity in Ministry’ as a support for our Safeguarding Policy.

The Trustees continue to promote the study of this document 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 issue as to whether religious communities within England and Wales are best served by local diocese with regard to the management and implementation of safeguarding policies and actions, is still under review/discussion.

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

21

SISTERS OF THE HOLY FAMILY

TRUSTEES REPORT (Continued)

FOR THE YEAR ENDED 31 DECEMBER 2021

DATA PROTECTION POLICY

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

Our Data protection principles:

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

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. This year we have spent a great deal of time deliberating and carrying out further research with regards to our investments in fossil fuel companies. We hope that within the next year we will no longer hold any shares in fossil fuel companies

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.

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

22

SISTERS OF THE HOLY FAMILY

TRUSTEES REPORT (Continued)

FOR THE YEAR ENDED 31 DECEMBER 2021

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:

The Trustees having discussed at length 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 and have now started to make more concrete plans with the architects and planners as well as beginning a fuller discernment with our Mother House. 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.

23

SISTERS OF THE HOLY FAMILY

TRUSTEES REPORT (Continued)

FOR THE YEAR ENDED 31 DECEMBER 2021

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:

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:

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: 6 September 2022

24

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 2021 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:

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:

Responsibilities of trustees for the financial statements

As explained more fully in the trustees’ responsibilities statement set out on page 24, 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.

25

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

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:

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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: 12 September 2022

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

26

SISTERS OF THE HOLY FAMILY

STATEMENT OF FINANCIAL ACTIVITIES

FOR THE YEAR ENDED 31 DECEMBER 2021

2021 2020
Notes £ £
INCOME from
Donations and legacies 1 194,397 222,020
Investments 2 499,331 460,645
Gain on Sale of Fixed Assets 3 351,687 -
------------------------ ------------------------
Total Income 1,045,415 682,665
------------------------ ------------------------
EXPENDITURE on
Cost of raising funds
- Investment management fees 89,317 76,418
Charitable activities 4
- Support of members of the Congregation and their ministry 622,901 645,378
- Donations and grants paid 170,092 834,013
------------------------ ------------------------
Total expenditure 882,310 1,555,809
------------------------ ------------------------
Net (expenditure) before gains/(losses) on investments 163,105 (873,144)
Other recognised gains and losses
Net gains on investments 2,410,029 819,687
------------------------ ------------------------
Net (expenditure)/income and net movement in funds for the year 2,573,134 (53,457)
Total funds brought forward 25,128,587 25,182,044
------------------------ ------------------------
Total funds carried forward at 31 December 2021 £27,701,721 £25,128,587
============ ============

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.

27

SISTERS OF THE HOLY FAMILY

BALANCE SHEET

AS AT 31 DECEMBER 2021

2021 2020
Notes £ £ £ £
FIXED ASSETS
Tangible fixed assets 10 4,470,854 4,597,701
Investments 11 22,055,727 20,006,548
--------------------- ---------------------
26,526,581 24,604,249
CURRENT ASSETS
Debtors 12 - 319,869
Cash 1,802,096 893,425
-------------------- --------------------
1,802,096 1,213,294
CREDITORS:Amounts falling
due within one year 13 (126,285) (124,544)
-------------------- --------------------
NET CURRENT ASSETS 1,675,811 1,088,750
CREDITORS:Amounts falling
due after more than one year 13 (500,671) (564,412)
----------------------- -----------------------
NET ASSETS £27,701,721 £25,128,587
=========== ===========
FUNDS
General unrestricted funds 7,730,867 5,030,886
Designated 14
- Fixed Assets 4,470,854 4,597,701
- Retirement Fund 13,000,000 13,000,000
- Charitable Projects Fund 2,500,000 2,500,000
- Building Fund - -
--------------------- ---------------------
19,970,854 20,097,701
----------------------- -----------------------
£27,701,721 £25,128,587
=========== ===========

Approved by the Trustees on 6 September 2022 and signed on their behalf by

Irena Madej

Sister Irena Madej Trustee

The accompanying notes form part of these financial statements.

28

SISTERS OF THE HOLY FAMILY

CASH FLOW STATEMENT

FOR THE YEAR ENDED 31 DECEMBER 2021

2021 2020
Notes
£		 £
Cash flows from Operating Activities
Net cash outflow from operating activities A (358,635) (932,704)
------------------- -------------------
Cash flows from investing activities
Dividends and interest from investments 499,331 460,645
Payments to acquire fixed assets (191,562) (118,170)
Receipts from sales of fixed assets 598,687 -
Payments to acquire investments (4,072,486) (1,575,719)
Receipts from sales of investments 4,160,330 1,661,044
Receipts on maturity of Deferred Annuity Contract 273,006 294,868
-------------------- --------------------
Net cash provided by/(used in) investing activities 1,267,306 722,668
-------------------- --------------------
Change in cash and cash equivalents in year C 908,671 (210,036)
Cash and cash equivalents at 1 January 2021 893,425 1,103,461
Change in cash and cash equivalents due
to exchange rate movements - -
-------------------- --------------------
Cash and cash equivalents at 31 December 2021 B £1,802,096 £893,425
=========== ===========
Notes to the Cash Flow Statement
A. Reconciliation of net movement in funds to net cash flow from operating activities
2021 2020
£ £
Net movement in funds
(as per the Statement of Financial Activities) 2,573,134 (53,457)
Adjustments for
(Gains)/Losses on investments (2,410,029) (819,687)
Surplus on disposal of fixed assets (351,687) -
Dividends and interest from investments (499,331) (460,645)
Depreciation 71,409 76,544
Decrease/(Increase) in debtors 319,869 (319,760)
(Decrease)/Increase in creditors (62,000) 644,301
-------------------- --------------------
Net cash (used in) operating activities (358,635) (932,704)
=========== ===========
B. Analysis of cash and cash equivalents
Cash at bank and in hand £1,802,096 £893,425
=========== ===========
C. Analysis of changes in net cash funds
At 1 January At 31 December
2020 Cashflows 2020
£ £ £
893,425 908,671 1,802,096
-------------------- -------------------- --------------------
£893,425 £908,671 £1,802,096
=========== =========== ===========

29

SISTERS OF THE HOLY FAMILY

PRINCIPAL ACCOUNTING POLICIES

FOR THE YEAR ENDED 31 DECEMBER 2021

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).

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 that affect the application of the charity’s accounting policies and the reported assets, liabilities, income and expenditure and the disclosures made in the financial statements. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

The items in the accounts where significant judgements and estimates have been made are:

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 2022, 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.

30

SISTERS OF THE HOLY FAMILY

PRINCIPAL ACCOUNTING POLICIES

FOR THE YEAR ENDED 31 DECEMBER 2021

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:

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.

31

SISTERS OF THE HOLY FAMILY

PRINCIPAL ACCOUNTING POLICIES

FOR THE YEAR ENDED 31 DECEMBER 2021

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.

32

SISTERS OF THE HOLY FAMILY

NOTES TO THE FINANCIAL STATEMENTS (Continued)

FOR THE YEAR ENDED 31 DECEMBER 2021

1. DONATIONS AND LEGACIES
2021 2020
£ £
Sisters' salaries and pensions 186,732 212,625
Furlough support 5,399 7,853
Other donations 2,266 1,542
-------------------- --------------------
£194,397 £222,020
========== ==========
2. INVESTMENT INCOME
2021 2020
£ £
Income from listed securities and cash held by Brokers 499,221 459,894
Bank and other interest 110 751
-------------------- --------------------
£499,331 £460,645
========== ==========
3. SURPLUS ON DISPOSAL OF TANGIBLE FIXED ASSETS
2021 2020
£ £
Proceeds (net of costs) 598,687 -
Net book value (247,000) -
-------------------- --------------------
Gain on disposal of freehold property £351,687 £-
========== ==========

33

SISTERS OF THE HOLY FAMILY

NOTES TO THE FINANCIAL STATEMENTS (Continued)

FOR THE YEAR ENDED 31 DECEMBER 2021

4. EXPENDITURE ON CHARITABLE ACTIVITIES
2021 2020
£ £
Support of members of the Congregation and their ministry
Sisters' living and ministry expenses 373,939 397,800
Premises costs 59,109 65,844
Charitable Projects (Music & Education) 1,020 1,080
Depreciation 71,409 76,544
Other support costs 93,974 83,090
Governance costs (note 4) 23,450 21,020
-------------------- --------------------
622,901 645,378
------------------ ------------------
Donations and grants
Support of the overseas mission of the Congregation
Generalate 30,000 27,630
Indian Mission 2,000 -
Ivory Coast Mission - 5,035
Bolivia Mission 20,000 -
Lebanon Mission 30,000 -
-------------------- --------------------
82,000 32,665
------------------ ------------------
Grants to other organisations
Margaret Clitherow Trust 41,000 40,000
St Anne's School 30,000 30,000
Appeal re Parish Church Roof Repairs - 1,000
Clergy Support Group - 2,000
St Francis de Sales Church Donation - 100
Jesuit Refugee Service 16,259 724,412
General alms & donations 833 2,836
Various - 1,000
-------------------- --------------------
88,092 801,348
-------------------- --------------------
Total Donations and grants 170,092 834,013
-------------------- --------------------
Total Charitable Expenditure £792,993 £1,479,391
========== ==========

34

SISTERS OF THE HOLY FAMILY

NOTES TO THE FINANCIAL STATEMENTS (Continued)

FOR THE YEAR ENDED 31 DECEMBER 2021

5. GOVERNANCE COSTS
2021 2020
£ £
Auditors remuneration
- Statutory audit 14,270 10,600
Other professional fees 9,180 10,420
-------------------- --------------------
£23,450 £21,020
========== ==========
6. NET MOVEMENT IN FUNDS
2021 2020
£ £
This is stated after charging/(crediting):
Exchange loss/(gain) 38,953 (4,125)
Staff costs (note 7) 84,162 38,459
Auditors remuneration
- Statutory audit 14,270 10,600
Depreciation 71,409 76,544
=========== ===========

7. 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:
2021 2020
£ £
Wages and salaries 76,658 36,229
Social security costs 5,597 1,320
Other pension costs 1,907 910
---------------------- ----------------------
£84,162 £38,459
=========== ===========
No No
The average number of employees in the year was: 6 5
=========== ===========

The number of employees whose emoluments exceeded £60,000 was nil (2020: 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 (2020: nil).

35

SISTERS OF THE HOLY FAMILY

NOTES TO THE FINANCIAL STATEMENTS (Continued)

FOR THE YEAR ENDED 31 DECEMBER 2021

8. 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.

9. 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.

10. TANGIBLE FIXED ASSETS Freehold land Fixtures & Motor
and building Fittings Vehicles Total
£ £ £ £
COST OR VALUATION
At 1 January 2021 5,395,333 53,885 14,176 5,463,394
Additions 191,562 - - 191,562
Disposals (325,000) - - (325,000)
---------------------- --------------------- --------------------- ----------------------
At 31 December 2021 5,261,895 53,885 14,176 5,329,956
--------------------- -------------------- -------------------- ---------------------
DEPRECIATION
At 1 January 2021 806,266 45,251 14,176 865,693
Charge for the year 67,901 3,508 - 71,409
On disposal (78,000) - - (78,000)
------------------- -------------------- ------------------- --------------------
At 31 December 2021 796,167 48,759 14,176 859,102
------------------- -------------------- ------------------- --------------------
NET BOOK VALUE
At 31 December 2021 £4,465,728 £5,126 £- £4,470,854
=========== ========== ========== ===========
At 31 December 2020 £4,589,067 £8,634 £- £4,597,701
=========== ========== ========== ===========

Net book value at 31 December 2021 represents Fixed Assets used for direct charitable purposes.

36

SISTERS OF THE HOLY FAMILY

NOTES TO THE FINANCIAL STATEMENTS (Continued)

FOR THE YEAR ENDED 31 DECEMBER 2021

11. INVESTMENTS Total Total
2021 2020
£ £
Quoted investments
Balance at 1 January 2021 19,944,646 19,446,891
Additions 4,072,486 1,573,898
Disposals
Proceeds (4,160,330) (1,661,044)
Gains/(Losses) 146,634 (234,844)
------------------------ ------------------------
(4,013,696) (1,895,888)
Unrealised (loss)/gain 2,052,291 819,745
------------------------ ------------------------
£22,055,727 £19,944,646
============ ============
Listed on a UK stock exchange 21,429,952 19,522,952
Bank deposits 625,775 421,694
------------------------ ------------------------
22,055,727 19,944,646
Deferred Annuity contracts - cost - 61,902
------------------------ ------------------------
Balance at 31 December 2021 £22,055,727 £20,006,548
============ ============
The cost of the quoted investments was £15,327,486 (2020: £13,935,549)
Quoted investments comprise:-
2021 2020
£ £
Fixed interest securities 2,498,223 2,355,216
UK Equities 11,440,632 10,528,328
Overseas investments - Investment and Unit trusts 7,491,097 6,639,408
Cash 625,775 421,694
------------------------ ------------------------
£22,055,727 £19,944,646
============ ============

37

SISTERS OF THE HOLY FAMILY

NOTES TO THE FINANCIAL STATEMENTS (Continued)

FOR THE YEAR ENDED 31 DECEMBER 2021

12. DEBTORS
2021 2020
£ £
Prepayments and accrued income - 24,957
Other debtors - 44
The Phoenix Pension Scheme - 294,868
------------------------ ------------------------
£- £319,869
============ ============
13a) CREDITORS: Amounts falling due within one year
2021 2020
£ £
Accrued Grants - Jesuit Refugee Service 80,000 80,000
Accruals and deferred income 45,785 44,044
Taxation & social security 500 500
------------------------ ------------------------
£126,285 £124,544
============ ============
13b) CREDITORS: Amounts falling due after more than one year
2021 2020
£ £
Accrued Grants - Jesuit Refugee Service 500,671 564,412
------------------------ ------------------------
£500,671 £564,412
============ ============

38

SISTERS OF THE HOLY FAMILY

NOTES TO THE FINANCIAL STATEMENTS (Continued)

FOR THE YEAR ENDED 31 DECEMBER 2021

14. 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 below

Balance Net Income/ Balance
1 January 2021 (Expenditure) Transfers 31 December 2021
Movements - Current year £ £ £ £
Fixed asset fund 4,597,701 (318,409) 191,562 4,470,854
Retirement fund 13,000,000 - - 13,000,000
Charitable Projects Fund 2,500,000 - - 2,500,000
Building Fund - - - -
------------------------ -------------------- ---------------------- ------------------------
£20,097,701 £(318,409) £191,562 £19,970,854
============= ========== =========== =============
Balance Net Income/ Balance
1 January 2020 (Expenditure) Transfers 31 December 2020
Movements - Prior 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
============= ========== =========== =============

39

SISTERS OF THE HOLY FAMILY

NOTES TO THE FINANCIAL STATEMENTS (Continued)

FOR THE YEAR ENDED 31 DECEMBER 2021

15. ANALYSIS OF NET ASSETS

Fund Balances at 31 December 2021

were represented by:

General
Fund
£
Tangible fixed assets
-
Investments
6,755,727
Current assets
1,602,096
Current liabilities
(626,956)
---------------------------
£7,730,867
============		 Designated Funds
Fixed
Assets
Retirement
Fund
Charitable
Projects
Fund
Building
Fund
Total
£
£
£
£
£
4,470,854
-
-
-
4,470,854
-
13,000,000
2,300,000
-
22,055,727
-
-
200,000
-
1,802,096
-
-
-
-
(626,956)
------------------------
-------------------------
-------------------------
----------------------
-------------------------
£4,470,854
£13,000,000
£2,500,000
£-
£27,701,721
===========
============
===========
==========
============

Fund Balances at 31 December 2020

were represented by:

Designated Funds

Charitable
General Fixed Retirement Projects Building
Fund Assets Fund Fund Fund Total
£ £ £ £ £ £
Tangible fixed assets - 4,597,701 - - - 4,597,701
Investments 4,706,548 - 13,000,000 2,300,000 - 20,006,548
Current assets 1,013,294 - - 200,000 - 1,213,294
Current liabilities (688,956) - - - - (688,956)
------------------------ ------------------------- ---------------------- ---------------------- ------------------------- -------------------------
£5,030,886 £4,597,701 £13,000,000 £2,500,000 £- £25,128,587
============ =========== ============ =========== ========== ============

40