## **THE CONGREGATION OF OUR LADY OF PITY**
## **REGISTERED CHARITY NO. 233237**
## **FINANCIAL STATEMENTS**
**FOR THE YEAR ENDED 31[ST] AUGUST 2022**
**KING LOOSE & CO STATUTORY AUDITORS**
**ST JOHN'S HOUSE 5 SOUTH PARADE SUMMERTOWN OXFORD OX2 7JL**
**THE CONGREGATION OF OUR LADY OF PITY**
## **FINANCIAL STATEMENTS**
## **FOR THE YEAR ENDED 31[ST] AUGUST 2022**
## **CONTENTS**
## **Page**
**1 2 - 4 4 5 – 5b**
**6 7 8 - 16**
Legal and Administrative Details Trustees Report Statement of Trustees’ Responsibilities Auditors' Report Statement of Financial Activities Balance Sheet Notes to the Financial Statements
**1.**
## **THE CONGREGATION OF OUR LADY OF PITY**
## **LEGAL AND ADMINISTRATIVE DETAILS**
## **FOR THE YEAR ENDED 31[ST] AUGUST 2022**
|**Charity No.**|233237|
|---|---|
|**Trust Deed**|Dated 5thFebruary 1964|
|**Constitution**|Dated 27thMay 1972|
|**Trustees**|Miss V Thomson (Reverend Mother – Sister Veronica)|
||Miss M A Walsh (Sister Antonia)|
||Mrs B Fisher|
||Mrs J Smith|
||Rt Rev Dom C Brogan|
||V Rev Canon D Hopgood|
||Mr U E Schwarzenbach|
|**Principal Address**|St John’s Convent|
||Linden Hill Lane|
||Kiln Green|
||Reading|
||Berkshire RG10 9XP|
|**Bankers**|Barclays Bank Plc|
||Mayfair Group of Branches|
||PO Box 11345|
||London|
||W12 8GG|
|**Investment Brokers**|Charles Stanley & Co Limited|
||55 Bishopsgate|
||London|
||EC2N 3AS|
|**Accounts & Administration**|Andrew J Curtis|
|**Auditors**|King Loose & Co|
||St John’s House|
||5 South Parade|
||Summertown|
||Oxford OX2 7JL|
**2.**
**THE CONGREGATION OF OUR LADY OF PITY**
## **TRUSTEES’ REPORT FOR THE YEAR ENDED 31[ST] AUGUST 2022**
The Trustees have pleasure in presenting the financial statements of the Charity for the year ended 31[st] August 2022. The financial statements have been prepared in accordance with the accounting policies set out on page 8 and comply with the Charity’s Trust Deed and applicable legislation.
## **History of The Congregation**
The Congregation was founded in 1948, under the leadership and direction of Mother Margaret Mary Lauder. From the beginning, the community wanted to offer their lives and work to assist priests, however, this was not realised until 1963.
At that time, some of the sisters went to work in seminaries and parishes – caring for the parish priests and assisting them in parish work. The community have constantly been aware of the need for renewal and re-assessment of their apostolate.
From 1965 until 1995, this apostolate was to care for retired priests who needed care. These priests came from diocese all over the UK and from religious orders. The aim was to provide the priests with personal care during their retirement years and also to see to their spiritual needs: daily Mass, visits from other priests and support from the diocese. From 1996, changes took place as set out in the Charity Objectives below.
## **Charity’s Objectives**
From 1996, the whole process of retirement and pastoral work for older priests changed under a new scheme set up by the diocese of Portsmouth and the clergy are now able to retire earlier when they still have some quality of life. Therefore, instead of full-time pastoral ministry, they perform part-time supply work from St John’s Convent whilst receiving from the sisters the necessary physical and emotional care.
The primary aim of the Congregation remains the care of priests who have to retire from full-time ministry, but has opened up now to short-term care, and also catering for priests and religious brothers and sisters who need time off to make a retreat, have a few weeks rest after missionary work or postoperative care or rest.
The aim is always to provide a quiet, peaceful, relaxing atmosphere for all residents and guests. Under the fourth vow of the Order, that of Apostolic Zeal, a commitment exists to help all people in need, therefore, special attention is given to the care of the homeless, families in need, and orphans. As a religious Congregation, daily lives must be governed by the Gospel, whilst keeping a balance between financing the work and caring for the brothers and sisters who are in need of basic living and human rights.
## **Review of Developments, Activities and Achievements**
The Covid 19 pandemic hit the Charity quite hard, with restrictions on travel for groups, and generally caring for senior and vulnerable people. During the pandemic, income fell from all sources, but there were cost reductions to help compensate for this.
The 2022 accounts show a significant increase in accommodation income, assisted by the cyclical refurbishment of the rooms and bungalows available for this purpose.
Activities are steadily coming back to their previous levels, and works to upgrade the property overall now see the charity well placed to welcome residents and guests.
Ecumenical activities have resumed, now permitted by government protocols, and the Sisters are now frequently called upon to assist families whose lives have been directly affected by pressures imposed by the Coronavirus crisis.
**3.**
**THE CONGREGATION OF OUR LADY OF PITY**
## **TRUSTEES’ REPORT FOR THE YEAR ENDED 31[ST] AUGUST 2022**
## **Public Benefit**
Supporting the community gives the Charity the greatest outreach and provides the greatest public benefit. The Charity continues to engage with, and be accessible to, the community it aims to reach and serve. In considering the Charity’s continuing aims and objects, the Trustees have reviewed the guidance issued by the Charity Commission in relation to public benefit, and consider that the public benefit test continues to be satisfied.
## **Finances and Investment Policy**
The Charity’s investments have continued to be managed with the objective of maintaining a balanced return between long-term capital and income growth. Charles Stanley & Co. Limited, the Charity’s Investment Brokers, work within an investment policy which the Trustees have drawn up.
Due to continuing worldwide problems in the financial markets, the value of the Charity’s investment portfolio decreased over the year, although income levels held relatively well. The previous and continuing restructuring of the portfolio has protected the Charity in such very difficult times. At 31[st] August 2022, the investment portfolio amounted to £665,370, a decrease of 23% across the year.
## **Appointment and Training of Trustees**
The Trustees meet to nominate and appoint Trustees for the Charity.
With regard to training and induction of new Trustees, the policy is informal; new Trustees attend the regular meetings where matters of policy, principle and finance are discussed.
## **Organisational Structure**
The Trustees meet at least bi-annually and decide the policies and principles to be followed. Informal meetings are also held when the need arises. The Reverend Mother – Sister Veronica – is appointed by the Trustees to ensure the decisions are carried out and the Reverend Mother also takes all day to day management decisions.
## **Reserves Policy**
The Trustees carry out an annual review of the Charity’s free reserves policy (free reserves being those funds not tied up in fixed assets, designated or restricted funds), in light of risks and future plans. The Trustees have established a policy to have a minimum free reserve of approximately four months of resources expended, which equates to £110,000. This reserve should enable the Charity to continue to meet its objectives if it faces loss of income, increases in costs or delays in receipts.
## **Risk Management**
The Trustees have examined the major strategic, business and operational risks which the Charity faces or may face and confirm that systems have been established to mitigate the significant risks.
The Trustees consider that the principal risks facing the Charity are:-
- a) Maintaining the value of the investments, in terms of income generation primarily, to support the congregation and its activities, and
- b) Diminishing number of sisters or the Order, worldwide.
Insofar as is possible, the Trustees keep these matters under review.
## **Audit Information**
In so far as the trustees are aware:
- (a) there is no relevant audit information of which the charity’s auditors are unaware; and
- (b) 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 that information.
**4.**
## **THE CONGREGATION OF OUR LADY OF PITY**
## **TRUSTEES’ REPORT FOR THE YEAR ENDED 31[ST] AUGUST 2022**
## **Statement of Trustees’ Responsibilities**
The Trustees are responsible for preparing the annual report and the financial statements in accordance with applicable law and United Kingdom Generally Accepted Accounting Practice.
Law applicable to charities in England and Wales requires the Trustees to prepare financial statements for each financial year, which give a true and fair view of the Charity’s financial activities during the year and of its financial position at the end of the year. In preparing those financial statements, the Trustees are required to:
- Select suitable accounting policies and then apply them consistently;
- Observe the methods and principles in the applicable Charities SORP.
- Make judgements and estimates that are reasonable and prudent;
- State whether applicable accounting standards and statements of recommended practice have been followed, subject to any material departures disclosed and explained in the financial statements;
- Prepare the accounts on the going concern basis unless it is inappropriate to presume that the Charity will continue in business.
The Trustees are responsible for maintaining proper accounting records which disclose with reasonable accuracy at any time the financial position of the Charity, and to enable them to ensure that the financial statements comply with the Charities Act 2011 and the relevant Charities SORP. They are also responsible for safeguarding the Charity’s assets and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
## **Signed on behalf of the Trustees**
…………………………………… …………………………….………….. **V Thomson Dated**
**5.**
## **REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF**
## **THE CONGREGATION OF OUR LADY OF PITY FOR THE YEAR ENDED 31[ST] AUGUST 2022**
## **Opinion**
We have audited the financial statements of The Congregation of our Lady of Pity (the “Charity”), for the year ended 31[st] August 2022, which comprise the statement of financial activities, the balance sheet 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[st] August 2022 and of its income and expenditure for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice;
- have been prepared in accordance with the requirements of Charities Act 2011.
## **Basis for opinion**
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the Charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
## **Conclusions relating to going concern**
In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity’s ability to continue as a going concern for a period of at least 12 months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
## **Other information**
The trustees are responsible for the other information. The other information comprises the information included in the annual report other than the financial statements and our auditor’s report thereon. 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.
**5(a)**
## **REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF**
## **THE CONGREGATION OF OUR LADY OF PITY FOR THE YEAR ENDED 31[ST] AUGUST 2022**
## **Matters on which we are required to report by exception**
In the light of the knowledge and understanding of the Charity and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees’ Annual Report.
We have nothing to report in respect of the following matters in relation to which the Charities Act 2011 requires us to report to you if, in our opinion:
- sufficient accounting records have not been kept;
- the financial statements are not in agreement with the accounting records and returns; or
- we have not obtained all the information and explanations necessary for the purposes of the audit.
## **Responsibilities of the trustees**
As explained more fully in the trustees’ responsibilities statement set out on page 4, the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as they 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.
## **Our responsibilities for the audit of the financial statements**
We have been appointed as auditor under S145 Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.
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:
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows: - ensuring that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognize non-compliance with applicable laws and regulations, which we had identified through discussions with management, and from our commercial knowledge and experience of the entity.
- we focused on specific and relevant laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the entity.
- we assessed the extent of compliance therewith.
**5(b)**
## **REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF**
## **THE CONGREGATION OF OUR LADY OF PITY FOR THE YEAR ENDED 31[ST] AUGUST 2022**
## **Our responsibilities for the audit of the financial statements (continued)**
We assessed the susceptibility of the entity's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud, and;
- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations
To address the risk of fraud through management bias and override of controls, we: - performed analytical procedures to identify any unusual or unexpected relationships and investigated the rationale behind significant or unusual transactions.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
- agreeing financial statement disclosures to underlying supporting documentation;
- enquiring of management as to actual and potential litigation and claims and reviewing any correspondence with relevant regulators.
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify noncompliance with laws and regulations to enquiry of management and the inspection of regulatory and legal correspondence, if any.
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.
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.
This report is made solely to the Charity’s trustees, as a body, in accordance with part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so 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.
## **St John’s House**
**5 South Parade Summertown Oxford OX2 7JL**
**King Loose & Co Statutory Auditors**
**King Loose & Co is eligible to act as an auditor in terms of Section 1212 of the Companies Act 2006.**
**6.**
## **THE CONGREGATION OF OUR LADY OF PITY**
## **STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31[ST] AUGUST 2022**
|**Income & Endowments from:**
Voluntary Income
Activities for generating funds:-
Fees for Accommodation
and Services provided
Pensions
Investment Income
**Total Income**
**Expenditure on**
Charitable Activities:
Operating Costs
Grants
Other Support Costs
**Total Expenditure**
Net (Expenditure) for the Year
Before Investment Movements
Net (Losses)/Gains on Investments
**Net Movement in Funds**
Total Funds Brought Forward
**Total Funds Carried Forward**|**Unres-**
**Total**
**Unres- **
**Total**
**tricted**
**Funds**
**tricted**
**Funds**
**Funds 2022**
**Funds**
**2021**
**Note**
**£**
**£**
**£**
**£**
2
51,454
51,454
26,074
26,074
221,714
221,714
121,578
121,578
4,380
4,380
5,580
5,580
3
35,218
35,218
45,619
45,619
________
________
________
________
312,766
312,766
198,851
198,851
________
________
________
________
4
310,659
310,659
234,438
234,438
5
3,375
3,375
14,159
14,159
4
44,257
44,257
43,364
43,364
________
________
________
________
358,291
358,291
291,961
291,961
________
________
________
________
(45,525)
(45,525)
(93,110)
(93,110)
7
(154,834)
(154,834)
126,007
126,007
________
________
________
________
(200,359)
(200,359)
32,897
32,897
2,887,079
2,887,079
2,854,182
2,854,182
________
________
________
________
2,686,720
2,686,720
2,887,079
2,887,079
=======
=======
=======
=======|
|---|---|
There were no other recognised gains or losses other than those reflected in the Statement of Financial Activities.
The notes on pages 8 to 16 form part of these accounts.
**7.**
## **THE CONGREGATION OF OUR LADY OF PITY**
## **BALANCE SHEET AS AT 31[ST] AUGUST 2022**
|**Note**
**£**
**Fixed Assets**
Tangible Assets
6
Investments
7
**Current Assets**
Debtors
8
10,476
Short Term Bank Deposits
18,059
Cash at Bank
9,568
________
38,103
________
**Current Liabilities**
Creditors: Amounts Falling due
within one year
9
10,922
________
**Net Current Assets**
**Total Assets less Current Liabilities**
Creditors: Amounts falling due
after more than one year 10
**Represented By:**
Unrestricted Funds
11|**2022**
**£**
**£**
2,006,553
665,370
________
2,671,923
8,436
12,477
9,334
________
30,247
________
17,177
________
27,181
________
2,699,104
12,384
________
2,686,720
=======
2,686,720
=======|**2021**
**£**
2,008,210
865,799
________
2,874,009
13,070
________
2,887,079
-
________
2,887,079
=======
2,887,079
=======|
|---|---|---|
## **Approved by the Board of Trustees and signed on its behalf by:**
…………………………………………
## **V Thomson**
The notes on pages 8 to 16 form part of the accounts.
………………………………………… **Dated**
**8.**
**THE CONGREGATION OF OUR LADY OF PITY**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] AUGUST 2022**
## **1. Accounting Policies**
The following accounting policies are considered material in relation to the Charity’s financial statements.
## **a) General Information**
These financial statements have been presented in Pound Sterling as this is the currency of the primary economic environment in which the Charity operates.
## **b) Basis of preparation**
The accounts (financial statements) have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant notes(s) to these accounts. The financial statements have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) – Charities SORP (FRS 102); and the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.
The Charity constitutes a public benefit entity as defined by FRS 102.
The charity has taken advantage of the exemption to prepare a cash flow statement, as contained in Financial Reporting Standard 1, on the grounds that it is a small charity.
## **c)**
## **Activities**
The financial statements include the results of the charity's operations as described in the trustees’ annual report, and all of which are continuing.
## **d) Revenue Recognition Investment income**
Investment income is credited to income on a receipts basis, and comprises dividends and interest from listed investments, and interest on deposits.
## **Pensions**
Such income is either state pension, or sourced from the sisters’ activities, either current or previous, and is wholly covenanted to the charity by the sisters, on a receipts basis. **Donations and Legacies**
Donations are credited to income when received. Legacies are credited to income when the charity is legally entitled to the income and the amount can be verified with reasonable accuracy.
## **Fees for accommodation and services**
Such income is sourced from the sisters’ activities, and is credited to income on a receivable basis, at the point at which the charity is entitled to the income.
All incoming resources are thus included in the Statement of Financial Activities when the charity is legally entitled to the income, and the amount can be verified with reasonable accuracy.
## **e)**
## **Expenditure Recognition**
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that settlement will be required and the amount of the obligation can be reliably measured.
Expenditure is included on an accruals basis and has been classified under headings that aggregate all costs related to the category.
Expenditure represents the costs of supporting the sisters both personally, and in their activities on behalf of the charity.
**9.**
**THE CONGREGATION OF OUR LADY OF PITY**
**NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] AUGUST 2022**
## **1. Accounting Policies (continued)**
## **f) Grants and Donations**
Prior to his sad death, the on-site Chaplain was supported by the Charity through the provision, free of charge, of accommodation and housekeeping, catering and general care services. A market value assessment of this support is shown under Grants and Donations expended, and the Charity’s Accommodation Income augmented by this same value to more fairly reflect the Trustees’ stewardship of available assets and resources (ceased in 2021).
## **g) Value Added Tax**
Value Added Tax is not recoverable by the Charity, and is included in the relevant costs in the Statement of Financial Activities.
## **h) Tangible Assets and Depreciation**
Property, plant and equipment are initially recognised at cost which is the purchase price plus any directly attributable costs. Subsequently property, plant and equipment are measured at cost less accumulated depreciation and impairment losses.
Land and buildings are measured at fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. Revaluations are considered every year ensuring the carrying amount does not differ materially from the fair value determined at the end of the reporting period.
At 31[st] August 2022, the trustees were satisfied that no revaluation adjustments were required.
|Depreciation is provided on tangible fixed assets in order to write off each asset over its|Depreciation is provided on tangible fixed assets in order to write off each asset over its|Depreciation is provided on tangible fixed assets in order to write off each asset over its|
|---|---|---|
|expected economic life. The rates of depreciation applied to each class of asset are:-|||
|Freehold land|-|not depreciated|
|Freehold buildings|-|1% on revalued amount plus|
||-|subsequent additions|
|Furniture and fittings|-|15% on reducing balance|
|Equipment|-|25% on straight line basis|
|Motor vehicles|-|25% on reducing balance|
## **i)**
## **Investments**
Investments are shown in the accounts at fair value which has been determined as follows:-
- (i) Listed securities and securities on the Unlisted Securities Market (USM) are shown by reference to mid-market price and other appropriate financial information.
- (ii) Other unlisted securities are valued having regard to latest dealings, professional valuations, asset values and other appropriate financial information.
- (iii) Unit trust investments are stated at the mid-point of the latest prices quoted by their respective managers prior to 31[st] August 2022.
- (iv) Where appropriate, investments held in foreign currencies have been valued on the relevant basis and translated into sterling at the rate ruling on 31[st] August 2022.
- (v) Gains and losses, whether realised or not, are reported in the Statement of Financial Activities.
**10.**
**THE CONGREGATION OF OUR LADY OF PITY**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] AUGUST 2022**
## **1. Accounting Policies (continued)**
## **j) Financial Assets and Liabilities**
**a. Cash and cash equivalents.** Cash and cash equivalents include cash in hand, deposits held with banks, and other short term highly liquid investments with original maturities of three months or less.
**b. Investments.** Investments comprise Quoted Stocks and Shares as detailed in the notes to the accounts, for which a fair value can be measured reliably. Such investments are initially recognised at fair value, which is the transaction price excluding transaction costs, and are subsequently measured at fair value with movements being reflected through the statement of financial activities.
**c. Trade and other payables.** Trade and other payables that are payable within one year are measured at the undiscounted amount of the cash expected to be paid.
## **k) Impairment of Assets**
At each reporting date the Company reviews the carrying value of its assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss.
The recoverable amount of an asset is the higher of fair value less costs to sell and value in use. Value in use is the present value of the future cash flow expected to be derived from the asset, or cash generating unit. The present value calculation involves estimating the future cash inflows and outflows to be derived from continuing use of the asset, and from its ultimate disposal, applying an appropriate discount rate to those future cash flows.
Where the receivable amount of an asset is less than the carrying amount, an impairment loss is recognised immediately in the statement of financial activities. An impairment loss recognised for all assets is reversed in a subsequent period if, and only if, the reasons for the impairment loss have ceased to apply.
## **l)**
## **Leasing and Hire Purchase**
Lease arrangements are classified as a finance lease where the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee. All other lease arrangements are classified as an operating lease.
Assets held under finance lease arrangements are recognised as assets within property, plant and equipment at their fair value, or, if lower, at the present value of the minimum lease payments, each determined at the inception of the lease. The assets are subsequently depreciated over the shorter of the lease term and their useful life. The corresponding finance lease liability is recognised as a finance lease obligation, with lease payments being apportioned between finance charges and a reduction in the lease obligation so as to achieve a constant rate of interest on the remaining amount of the liability. Finance charges are recognised within the statement of financial activities.
Payments made under operating lease arrangements are charged to the statement of financial activities on a straight line basis over the lease term.
## **m) Employee Benefits – Pensions**
The charity operates a defined contribution pension scheme in respect of certain paid employees. The scheme and its assets are held by independent managers. The pension charge represents the amounts payable by the charity to the fund in respect of the year.
**11.**
**THE CONGREGATION OF OUR LADY OF PITY**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] AUGUST 2022**
## **1. Accounting Policies (continued)**
## **n) Fund Accounting**
Funds held by the Charity are either:
- Unrestricted General Funds – these are funds which can be used in accordance with the charitable objects at the discretion of the Trustees.
- Designated Funds – these are funds set aside by the Trustees out of unrestricted general funds for specific future purposes or projects.
All of the charity’s assets are currently represented by Unrestricted General Funds.
## **o) Going Concern**
The financial statements have been prepared on a going concern basis.
The current economic conditions present increased risks for all entities. In response to such conditions, the trustees have carefully considered these risks, including an assessment of uncertainty on future trading projection for a period of at least 12 months from the date of signing the financial statements, and the extent to which they might affect the preparation of the financial statements.
The trustees have concluded that the going concern basis remains appropriate.
## **2. Donations, Grants and Legacies**
Included within the figure for donations, grants and legacies are the following gifts:-
**£** Thames Side Court 1,000 M J Dodsworth 1,000 J Harding 3,000 St Cecilia’s Abbey 1,000 P. Lawes 1,000
The Trustees are sincerely grateful for these generous gifts.
|**3.**|**Investment Income**
**2022**
**2021**
**£**
**£**
From Listed Investments
35,215
45,616
From Bank Deposits
3
3
________
________
35,218
45,619
=======
=======|**2021**|
|---|---|---|
**12.**
## **THE CONGREGATION OF OUR LADY OF PITY**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] AUGUST 2022**
|**4.**|**Expenditure**
**Operating**
**Costs**
**£**
Food, Provisions &
Sundries
27,457
Light and Heat
27,527
Rates/Council Tax
10,900
Telephone
9,190
Insurance
12,061
Repairs & Renewals
80,146
Garden Maintenance
1,498
Motor &Travelling
Expenses
5,087
Holidays/ Pilgrimage/
Retreat
-
Staff Costs
65,405
Newspapers, Magazines
& Recoverable Expenses
844
Printing, Stationery,
Postage, & Computing
4,360
Advertising
-
Chapel Expenses
11,231
Clothing and Linen
4,266
Medical Expenses/
Nursing Home Fees
19,470
Audit Fees
-
Bank Charges
-
Cleaning, Sundries &
Subscriptions
7,374
Depreciation:
Motor Vehicles
1,378
Furniture & Equipment 4,472
Freehold Property
18,000
Legal & Professional Fees 1,966
Equip. Hire(Fire Alarms) 1,646
Invest. Managers’ costs
-
Hire Purchase Interest
156
Profit on asset disposals
(3,775)
_______
310,659
======|**Other**
**Total**
**Support**
**Funds **
**Costs**
**2022**
**£**
**£**
-
27,457
-
27,527
-
10,900
-
9,190
-
12,061
-
80,146
-
1,498
-
5,087
-
-
33,756
99,161
-
844
-
4,360
-
-
-
11,231
-
4,266
-
19,470
2,744
2,744
327
327
-
7,374
-
1,378
-
4,472
-
18,000
166
2,132
-
1,646
7,264
7,264
-
156
-
(3,775)
_______
_______
44,257
354,916
======
======|**Operating**
**Costs**
**£**
18,594
20,893
10,376
8,229
12,451
49,910
913
5,506
-
53,769
1,433
2,989
1,160
12,049
2,519
5,716
-
-
1,534
1,309
3,852
18,000
1,824
1,239
-
173
-
_______
234,438
======|**Other**
**Total**
**Support**
**Funds**
**Cost**
**2021**
**£**
**£**
-
18,594
-
20,893
-
10,376
-
8,229
-
12,451
-
49,910
-
913
-
5,506
-
-
32,417
86,186
-
1,433
-
2,989
-
1,160
-
12,049
-
2,519
-
5,716
2,748
2,748
458
458
-
1,534
-
1,309
-
3,852
-
18,000
150
1,974
-
1,239
7,591
7,591
-
173
-
-
_______
_______
43,364
277,802
======
======|**Total**
**Funds**|**Total**|
|---|---|---|---|---|---|---|
**13.**
## **THE CONGREGATION OF OUR LADY OF PITY**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] AUGUST 2022**
|**5.**
**6.**|**Grants and Donations**
To Individuals
To Other Charities
Support for Chaplain
**Tangible Fixed Assets**
**Cost or Valuation**
At 1stSeptember 2021
Additions in Year
Disposals
At 31stAugust 2022
**Depreciation**
At 1stSeptember 2021
Charge for the Year
Disposals
At 31stAugust 2022
**Net Book Values**
At 31stAugust 2022
At 31stAugust 2021|**Freehold**
**Property**
**£**
2,549,995
-
-
________
_
2,549,995
=======
568,519
18,000
-
________
_
586,519
=======
1,963,476
=======
1,981,476
=======
|**Motor**
**Vehicles**
**£**
17,859
22,053
(17,859)
_______
22,053
=======
13,931
1,378
(13,931)
_______
1,378
=======
20,675
=======
3,928
=======|**2022**
**2021**
**£**
**£**
100
175
3,275
3,984
-
10,000
________
________
3,375
14,159
=======
=======
**Furniture**
**& Equip**
**Total**
**£**
**£**
153,144
2,720,998
4,068
26,121
-
(17,859)
________
________
157,212
2,729,260
=======
=======
130,338
712,788
4,472
23,850
-
(13,931)
________
________
134,810
722,707
=======
=======
22,402
2,006,553
=======
=======
22,806
2,008,210
=======
=======|
|---|---|---|---|---|
|||||
|
The following assets were held under hire purchase agreements:
|Motor vehicles|
**Net book**|
**Net book**|**2022**
**Depreciation**
**£**
1,378
=====|
**Net book**|
**Net book**|**2021**
**Depreciation**
**£**
1,136
=====|**2021**
**Depreciation**
**£**
1,136
=====|
|---|---|---|---|---|---|---|---|
||||
|||
||
||**Value**
**£**
20,675
=====|**Value**||=|**value**||
**£**
1,136
=====|
||||||**£**
3,408
====|||
The freehold property was last revalued on 17[th] August 2000 at £2,450,000, by M W Heath F.R.I.C.S. of Martin Heath Associates. The Trustees used this figure to restate the carrying value of the freehold property as at 31[st] August 2000, with subsequent additions being reflected at cost.
The entire net book value at 31[st] August 2022 represents fixed assets used for direct charitable purposes.
**14.**
## **THE CONGREGATION OF OUR LADY OF PITY**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] AUGUST 2022**
|**7.**|**Fixed Asset Investments**
**2022**
**£**
Valuation at 1stSeptember 2021
865,799
Add:
Acquisitions at Cost
86,083
Less:
Disposals
(137,508)
________
814,374
Change in Market Value
(149,004)
________
Market Value at 31stAugust 2022
665,370
=======|
|---|---|
|**Represented By:**
Investments listed on a recognised Stock Exchange, including
Investments and Unit Trusts, are as follows:
UK
Overseas
Fixed Interest and Govt. stock
**Analysis of Net Investment Losses**
Unrealised Losses for the Year
Losses Realised on Disposal etc
Net Investment Losses
**Material Investments as at 31st August 2022**
Practical Investment Fund
Reckitt Benckiser Group
AstraZeneca
SSE plc
Polar Capital Technology Trust
=|**Market**
**Value**
**£**
35,085
36,564
37,254
33,050
32,320
======|**2022**
**£**
409,220
228,742
________
637,962
27,408
________
665,370
=======
**£**
149,004
5,830
________
154,834
=======
**% of Port-**
**folio Total**
5.27
5.49
5.60
4.96
4.85
=======|
|---|---|---|
**15.**
## **THE CONGREGATION OF OUR LADY OF PITY**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] AUGUST 2022**
|**8.**
**9.**
**10.**
**11.**|**Debtors**
**2022**
**2021**
**£**
**£**
Prepayments and Sundry Debtors
5,683
5,152
Income Tax Recoverable
4,793
3,284
________
________
10,476
8,436
=======
=======
**Creditors– Amounts Falling Due Within One Year**
**2022**
**2021**
**£**
**£**
Trade Creditors
4,792
10,772
Social Security and Other Taxes
-
-
Accruals
4,558
4,753
Hire Purchase Creditor
1,572
1,652
________
________
10,922
17,177
=======
=======
**Creditors– Amounts Falling Due After More Than One Year**
**2022**
**2021**
**£**
**£**
Hire Purchase Creditor Due 1-2 years
1,572
-
Due 2-5 years
10,812
-
________
________
12,384
-
=======
=======
**Unrestricted Funds**
**2021**
**£**
**The movement in unrestricted funds during the year is as follows:**
At 1stSeptember 2021
2,887,079
Net (Outgoing) Resources for the Year
(45,525)
Losses on Investment Assets
(154,834)
________
At 31stAugust 2022
2,686,720
=======|
|---|---|
## **12. Trustees’ Remuneration and Expenses**
The Trustees received no remuneration (2020 – nil). Two of the Trustees, Reverend Mother Sister Veronica (Miss V Thomson) and Sister Antonia (Miss M A Walsh), have use of the Charity’s motor vehicles and all motor, living and other expenses are paid by the Charity to enable them to carry out their work on its behalf.
**16.**
**THE CONGREGATION OF OUR LADY OF PITY**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31[ST] AUGUST 2022**
## **13. Employees’ Remuneration**
No employee earned emoluments of more than £60,000 p.a. during the year.
|**Staff Costs**|**2022**|**2021**|
|---|---|---|
||**£**|**£**|
|Wages and Salaries|93,905|83,719|
|Social Security Costs (net of Employment Allowance)|4,009|1,441|
|Pension Costs|1,247|1,026|
||________|________|
||99,161|86,186|
||=======|=======|
|The average number of staff for the year were:|**No**|**No**|
|Sisters|2|2|
|Operational Staff|3|3|
|Administrative staff|1|1|
||=======|=======|
## **14. Contingent Liabilities**
The Charity had no material contingent liabilities at 31[st] August 2022.
## **15. Secured Liabilities**
Hire Purchase Creditors are secured on certain of the Charity’s fixed assets as detailed in note 6 to these accounts.