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2022-12-31-accounts

Charity Registration No. 233335

CONGREGATION OF PRIESTS OF THE SACRED HEART OF JESUS OF BETHARRAM

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2022

CONGREGATION OF PRIESTS OF THE SACRED HEART OF JESUS OF BETHARRAM

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees The Reverend Frederick Hughes
The Reverend Anthony Madej
Brother Andrew Ferris
Reverend Wilfred Joseph
Reverend Enrico Frigerio
Charity number 233335
Principal address The Friary
St Bernards Road
Olton
Solihull
B92 7BL
Contact Address Granta Lodge
71 Graham Road
Malvern
Worcestershire
WR14 2JS
Auditor Kendall Wadley LLP
Granta Lodge
71 Graham Road
Malvern
Worcestershire
WR14 2JS
Bankers Royal Bank of Scotland Plc
7 Market Street
Leigh
Lancashire
WN7 2EE
Solicitors Tyndallwoods Solicitors
29 Woodbourne Road
Birmingham
B17 8BY
Investment advisors BRI Wealth Management Plc
BRI House
Elm Court
Meriden Business Park
Meriden
CV5 9RL

CONGREGATION OF PRIESTS OF THE SACRED HEART OF JESUS OF BETHARRAM

CONTENTS

Page
Trustees report 1 - 3
Statement of Trustees responsibilities 4
Independent auditor's report 5 - 8
Statement of financial activities 9
Balance sheet 10
Statement of cash flows 11
Notes to the accounts 12 - 22

CONGREGATION OF PRIESTS OF THE SACRED HEART OF JESUS OF BETHARRAM

TRUSTEES REPORT

FOR THE YEAR ENDED 31 DECEMBER 2022

The Trustees present their report and accounts for the year ended 31 December 2022.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the Congregation's Trust Deed dated 26 November 1964, the Charities Act 2011 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)".

Objectives and activities

Charitable objectives

The Congregation's objective is to apply capital or income for such charitable purposes which advance the religious and other charitable work for the time being carried on in England and Wales by or under the direction or with the support of the Congregation as the Trustees with the approval of the Vicariate Superior shall from time to time think fit.

Investment Powers

Investment powers are governed by the Trust Deed, which permits funds to be invested within the prevailing Charities legislation. Assets are held to generate investment income for Charitable expenditure, and are held within the Trustees powers.

Policy

Inspired by our faith in the Word of God the Congregation undertake a broad range of Charitable activities. The principle areas in which the Congregation is involved are set out below:

  1. Pastoral and social care

The members of the Congregation undertake work in the community and their local parish including, the performance of the church, wedding and funeral services.

Social care includes work with the underprivileged, poor, drug addicts and mentally ill. Providing care and support both spiritual and financial.

2. Health care

Members of the Congregation visit the sick, aged, house bound and dying. Administering to their various needs.

Public benefit compliance

The Congregation confirm that they have complied with the duty in section 4 of the Charities Act 2011 to have due regard to the Charity Commission's general guidance on public benefit, 'Charities and Public Benefit'.

Achievements and performance

The Statement of Financial Activities shows that total incoming resources amounted to £343,215 (2021: £379,990), during the year. This includes £95,091 (2021: £95,124) from investment income and £200,493 (2021: £232,098) from donations and legacies.

The movements to fixed assets during the year included the purchase of: fixtures, fittings and equipment of £2,687 (2021: £1,787). A property was also purchased in the year at a cost of £590,487.

At 31 December 2022 the total funds of the Congregation were £4,521,610. Of this £3,173,080, represents investments generating income to finance the work of the Congregation. The investment portfolio is managed by BRI Wealth Management Plc.

Over many years various members of the Congregation have given their working life to the Order. Now in retirement, and losing their tied accommodation, a provision is required to meet their future housing, financial and medical needs. These are to be supported out of the funds invested by the Congregation.

CONGREGATION OF PRIESTS OF THE SACRED HEART OF JESUS OF BETHARRAM

TRUSTEES REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

Financial review

The English Vicariate has 12 members who have given most of their working lives to the Charitable activities of the Congregation. Where this work is for organisations independent of the Congregation, any earnings are received by the Charity.

The Congregation has a continuing commitment to support its members by contributing to pension funds now administered by Standard Life and Friends Life. The pension received helps to support members, many of whom continue to carry out charitable work long past the normal retirement age.

Reserves policy

It is the policy of the Congregation that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to between three and six month’s expenditure. The Trustees considers that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the Congregation’s current activities while consideration is given to ways in which additional funds may be raised. This level of reserves has been maintained throughout the year.

Note 19 to the financial statements splits the Congregation's reserves between those designated for specific purposes and those available for day to day requirements.

The General reserve fund represents the unrestricted free reserves arising from past operating results. The Trustees are satisfied that the balance of the fund £421,554 is sufficient to enable the Congregation to carry out the objectives of the Charity. These are constantly under review and will be amended accordingly.

Risk Management

The Trustees have assessed the major risks to which the Congregation is exposed, in particular those related to operations and finance of the Congregation, and are satisfied that systems are in place to mitigate exposure to the major risks.

Structure, governance and management

The Congregation of the Priests of the Sacred Heart of Jesus of Betharram is administered by the Vicariate Superior together with four other Trustees.

The Congregation is governed by a Trust Deed dated 26 November 1964 and is registered with the Charity Commission, Charity Registration Number 233335.

The Trustees who served during the year are shown below:

The Reverend Frederick Hughes The Reverend Anthony Madej Brother Andrew Ferris Reverend Wilfred Joseph Reverend Enrico Frigerio

New Trustees are elected by the Board of Trustees from members of the Order and serve until their retirement.

Trustees are nominated by members of the Board of Trustees and appointed where they have the necessary skills to contribute to the Charity's development.

The statutory power to appoint new Trustees or to remove serving Trustees is vested in the Vicariate Superior.

Auditor

A resolution proposing that Kendall Wadley LLP be reappointed as auditors of the charity will be put to the members.

CONGREGATION OF PRIESTS OF THE SACRED HEART OF JESUS OF BETHARRAM

TRUSTEES REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

Disclosure of information to auditor

Each of the Trustees has confirmed that there is no information of which they are aware which is relevant to the audit, but of which the auditor is unaware. They have further confirmed that they have taken appropriate steps to identify such relevant information and to establish that the auditor are aware of such information.

The Trustees report was approved by the Board of Trustees.

The Reverend Anthony Madej

Trustee Dated: 15 September 2023

CONGREGATION OF PRIESTS OF THE SACRED HEART OF JESUS OF BETHARRAM

STATEMENT OF TRUSTEES RESPONSIBILITIES

FOR THE YEAR ENDED 31 DECEMBER 2022

The Trustees are responsible for preparing the Trustees Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England and Wales requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Congregation and of the incoming resources and application of resources of the Congregation for that year.

In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping sufficient accounting records that disclose with reasonable accuracy at any time the financial position of the Congregation and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the Congregation and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

CONGREGATION OF PRIESTS OF THE SACRED HEART OF JESUS OF BETHARRAM

INDEPENDENT AUDITOR'S REPORT

TO THE TRUSTEES OF CONGREGATION OF PRIESTS OF THE SACRED HEART OF JESUS OF BETHARRAM

Opinion

We have audited the financial statements of Congregation of Priests of the Sacred Heart of Jesus of Betharram (the ‘Congregation’) for the year ended 31 December 2022 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and notes to the financial statements, including 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 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 Congregation 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 Congregation’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The Trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. 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 course of 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 this gives rise to a material misstatement in the financial statements themselves. 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.

CONGREGATION OF PRIESTS OF THE SACRED HEART OF JESUS OF BETHARRAM

INDEPENDENT AUDITOR'S REPORT (CONTINUED)

TO THE TRUSTEES OF CONGREGATION OF PRIESTS OF THE SACRED HEART OF JESUS OF BETHARRAM

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

As explained more fully in the statement of Trustees responsibilities, the Trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the Trustees are responsible for assessing the Congregation’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 cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

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.

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.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

Extent to which the audit was considered capable of detecting irregularities, including fraud

CONGREGATION OF PRIESTS OF THE SACRED HEART OF JESUS OF BETHARRAM

INDEPENDENT AUDITOR'S REPORT (CONTINUED)

TO THE TRUSTEES OF CONGREGATION OF PRIESTS OF THE SACRED HEART OF JESUS OF BETHARRAM

Audit response to risks identified

It should be noted that Auditing standards limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the Trustees and others and the inspection of regulatory and legal correspondence, if any.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https:// www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Other matters

Your attention is drawn to the fact that the charity has prepared financial statements in accordance with "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (as amended) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has now been withdrawn.

This has been done in order for the financial statements to provide a true and fair view in accordance with current Generally Accepted Accounting Practice.

Use of our report

This report is made solely to the company’s members, as a body, in accordance with section 391 of the Companies Act 2014. Our audit work has been undertaken so that we might state to the company’s members 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 company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

CONGREGATION OF PRIESTS OF THE SACRED HEART OF JESUS OF BETHARRAM

INDEPENDENT AUDITOR'S REPORT (CONTINUED)

TO THE TRUSTEES OF CONGREGATION OF PRIESTS OF THE SACRED HEART OF JESUS OF BETHARRAM

Elizabeth Needham ACA CTA (VAT) (Senior Statutory Auditor) for and on behalf of Kendall Wadley LLP 15 September 2023 Chartered Accountants Statutory Auditor Granta Lodge 71 Graham Road Malvern Worcestershire WR14 2JS

Kendall Wadley LLP is eligible for appointment as auditor of the Congregation by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.

CONGREGATION OF PRIESTS OF THE SACRED HEART OF JESUS OF BETHARRAM

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2022

Unrestricted Unrestricted
funds
funds
general
designated
2022
2022
Notes
£
£
Income and endowments from:
Donations and legacies
3
200,493
-
Charitable activities
4
43,364
-
Investments
5
95,091
-
Other income
6
4,267
-
Total income
343,215
-
Expenditure on:
Raising funds
7
34,608
-
Charitable activities
8
327,384
-
Total resources
expended
361,992
-
Net gains/(losses) on
investments
12
(392,424)
-
Net
(outgoing)/incoming
resources before
transfers
(411,201)
-
Gross transfers between
funds
13
360,328
(360,328)
Net movement in funds
(50,873)
(360,328)
Fund balances at 1
January 2022
472,427
4,460,384
Fund balances at 31
December 2022
421,554
4,100,056		 Total
Unrestricted
Unrestricted
funds
funds
general
designated
2022
2021
2021
£
£
£
200,493
232,098
-
43,364
44,268
-
95,091
95,124
-
4,267
8,500
-
343,215
379,990
-
34,608
35,435
-
327,384
300,671
-
361,992
336,106
-
(392,424)
534,208
-
(411,201)
578,092
-
-
(525,653)
525,653
(411,201)
52,439
525,653
4,932,811
419,988
3,934,731
4,521,610
472,427
4,460,384		 Total
2021
£
232,098
44,268
95,124
8,500
379,990
35,435
300,671
336,106
534,208
578,092
-
578,092
4,354,719
4,932,811

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

All income and expenditure derive from continuing activities.

CONGREGATION OF PRIESTS OF THE SACRED HEART OF JESUS OF BETHARRAM

BALANCE SHEET

AS AT 31 DECEMBER 2022

2022 2021
Notes £ £ £ £
Fixed assets
Tangible assets 14 926,976 355,009
Investments 15 3,173,080 4,105,375
4,100,056 4,460,384
Current assets
Debtors 17 8,548 5,145
Cash at bank and in hand 433,071 487,834
441,619 492,979
Creditors: amounts falling due within 18
one year (20,065) (20,552)
Net current assets 421,554 472,427
Total assets less current liabilities 4,521,610 4,932,811
Income funds
Designated funds 19 4,100,056 4,460,384
Unrestricted funds-general
Designated funds 19 4,100,056 4,460,385
General unrestricted funds (3,678,502) (3,987,958)
421,554 472,427
4,521,610 4,932,811

The accounts were approved by the Trustees on 15 September 2023

The Reverend Anthony Madej Trustee

CONGREGATION OF PRIESTS OF THE SACRED HEART OF JESUS OF BETHARRAM

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 DECEMBER 2022

2022
Notes
£
Cash flows from operating activities
Cash absorbed by operations
22
Investing activities
Purchase of tangible fixed assets
(593,174)
Additions and disposals of investments
539,871
Interest received
95,091
Net cash generated from investing
activities
Net cash used in financing activities
Net (decrease)/increase in cash and cash
equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year		 £
(96,551)
41,788
-
(54,763)
487,834
433,071		 2021
£
(1,787)
(9,672)
95,124		 £
(30,754)
83,665
-
52,911
434,923
487,834

CONGREGATION OF PRIESTS OF THE SACRED HEART OF JESUS OF BETHARRAM

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

1 Accounting policies

Company information

Congregation of Priests of the Sacred Heart of Jesus of Betharram is a charity registered in England & Wales, number, 233335. The contact address is Granta Lodge, 71 Graham Road, Malvern Worcestershire,WR14 2JS..

1.1 Accounting convention

The financial statements have been prepared in accordance with the Congregation's governing document, the Charities Act 2011, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019). The Congregation is a Public Benefit Entity as defined by FRS 102.

The financial statements have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a true and fair view. This departure has involved following the Statement of Recommended Practice for charities applying FRS 102 rather than the version of the Statement of Recommended Practice which is referred to in the Regulations but which has since been withdrawn.

The financial statements are prepared in sterling, which is the functional currency of the Congregation. Monetary amounts in these financial statements are rounded to the nearest £.

The accounts have been prepared on the historical cost convention, modified to include certain financial instruments at fair value. The principal accounting policies adopted are set out below.

1.2 Going concern

At the time of approving the financial statements, the Trustees have a reasonable expectation that the Congregation has adequate resources to continue in operational existence for the foreseeable future. Thus the Trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the Trustees in furtherance of their charitable objectives.

Designated funds comprise funds which have been set aside at the discretion of the Trustees for specific purposes. The purposes and uses of the designated funds are set out in the notes to the financial statements.

1.4 Incoming resources

Cash donations are recognised on receipt. Other donations are recognised once the Congregation has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time the claim is made.

Legacies are recognised on receipt or otherwise if the Congregation has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.

1.5 Resources expended

Resources expended are recognised in the period in which they are incurred. Resources expended include attributable VAT, which cannot be recovered.

Expenditure relating to charitable activities comprise all expenses that are incurred in the undertaking of the charitable activities of the Congregation.

CONGREGATION OF PRIESTS OF THE SACRED HEART OF JESUS OF BETHARRAM

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

1 Accounting policies

(Continued)

Governance costs include direct and related support costs relating to the governance infrastructure allowing the Congregation to generate information required for public accountability.

1.6 Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Land and buildings 2% straight line Property improvements 10% straight line Computer equipment 25% straight line Fixtures, fittings & equipment 10% to 25% straight line Motor vehicles 25% straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in net income/(expenditure) for the year.

1.7 Fixed asset investments

Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in the statement of financial activities. Transaction costs are expensed as incurred.

The historical cost of investments for the year ended 31 December 2022 is £2,726,777 (2021 - £3,394,813).

1.8 Impairment of fixed assets

At each reporting end date, the Congregation reviews the carrying amounts of its tangible 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 (if any).

Recoverable amount is the higher of fair value less costs to sell and value in use.

If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. An impairment loss is recognised immediately in the statement of financial activities for the year, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised immediately, unless the relevant asset is carried in at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.9 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks and other short-term liquid investments with original maturities of three months or less.

CONGREGATION OF PRIESTS OF THE SACRED HEART OF JESUS OF BETHARRAM

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

1 Accounting policies

(Continued)

1.10 Financial instruments

The Congregation has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the Congregation's balance sheet when the Congregation becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities

Basic financial liabilities, including creditors are initially recognised at transaction price. Financial liabilities classified as payable within one year are not amortised.

Derecognition of financial liabilities

Financial liabilities are derecognised when the Congregation’s contractual obligations expire or are discharged or cancelled.

1.11 Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

1.12 Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

2 Critical accounting estimates and judgements

In the application of the Congregation’s accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

CONGREGATION OF PRIESTS OF THE SACRED HEART OF JESUS OF BETHARRAM

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

3 Donations and legacies

Donations and gifts
Donations and gifts
Chaplaincy fees
Pensions
Other
Charitable activities
Mass StipendsSupply income
and Stole fees
Christmas and
Easter
Offerings
£
£
£
Charitable activities
8,095
16,223
19,046
For the year ended 31 December 2021
Unrestricted funds - general
11,942
20,324
12,002		 2022
£
200,493
56,826
93,062
50,605
200,493
Total
2022
£
43,364		 2021
£
232,098
65,067
94,479
72,552
232,098
Total
2021
£
44,268
44,268

4 Charitable activities

5 Investments

Income from listed investments
Interest receivable
Other income
Other income		 general
2022
£
94,761
330
95,091
general
2022
£
4,267		 general
2021
£
95,106
18
95,124
general
2021
£
8,500

6 Other income

CONGREGATION OF PRIESTS OF THE SACRED HEART OF JESUS OF BETHARRAM

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

7 Raising funds

Investment management fees
8
Charitable activities
Staff pension costs
Depreciation and impairment
Priests expenses
Provisions, clothing and laundry
Travelling and motor expenses
Telephone
Stationery, postage and computer consumables
Nursing care, chemists, dentist
Pilgrimage and retreat expenses
Staff costs - domestic wages
Sundries
Bank charges
Holidays
Appeal and regional levy
Insurance
Repairs and maintenance
General Council Rome
Donations, gifts and charity
Missions
Share of governance costs (see note 9)
Analysis by fund
Unrestricted funds - general
For the year ended 31 December 2021
Unrestricted funds - general		 2022
£
34,608
2022
£
54,459
21,207
5,500
42,357
35,753
4,703
3,664
5,686
19,639
14,567
8,804
1,299
3,061
200
3,905
1,258
20,340
228
51,503
298,133
29,251
327,384
327,384
327,384		 2021
£
35,435
2021
£
51,439
20,014
4,285
39,371
29,323
4,339
4,243
6,825
12,368
16,942
5,344
528
4,102
200
3,482
3,009
21,100
1,290
44,981
273,185
27,486
300,671
300,671
300,671

CONGREGATION OF PRIESTS OF THE SACRED HEART OF JESUS OF BETHARRAM

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

9 Support costs

Support
costs
Governance
costs
£
£
Accountancy
-
16,221
Audit
-
2,700
Professional fees
-
10,330
-
29,251
Analysed between
Charitable activities
-
29,251		 2022
£
16,221
2,700
10,330
29,251
29,251		 2021
£
16,338
2,700
8,448
27,486
27,486

Governance costs includes payments to the auditors of £2,700 (2021- £2,700) for audit fees.

10 Trustees

The Trustees of the Congregation are also members of the Order 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 Order within the English Vicariate. The living costs of the Trustees are therefore borne by the Congregation.

11 Employees

Number of employees

The average monthly number of employees during the year was:

2022 2021
Number Number
5 5
Employment costs 2022 2021
£ £
Wages and salaries 14,567 16,942
Other pension costs 54,459 51,439
69,026 68,381

There were no employees whose annual remuneration was £60,000 or more.

The trustees are deemed to be the key management personnel and as noted above, whilst they receive no remuneration, their living costs are borne by the Congregation, and includes contributions to a pension plan of £54,459 (2021 - £51,439) which are incorporated in the above figures.

CONGREGATION OF PRIESTS OF THE SACRED HEART OF JESUS OF BETHARRAM

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

12 Net gains/(losses) on investments
2022 2021
£ £
Revaluation of investments (392,424) 534,208

13 Transfers

During the year £360,328 has been transferred from designated funds to unrestricted funds to maintain the correct level of designated funds.

CONGREGATION OF PRIESTS OF THE SACRED HEART OF JESUS OF BETHARRAM

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

14 Tangible fixed assets

Cost
At 1 January 2022
Additions
At 31 December 2022
Depreciation and impairment
At 1 January 2022
Depreciation charged in the year
At 31 December 2022
Carrying amount
At 31 December 2022
At 31 December 2021		 Land and
buildings
Property
improvements
£
£
585,385
19,560
590,487
-
1,175,872
19,560
251,926
9,137
13,444
1,957
265,370
11,094
910,502
8,466
333,459
10,423		 Computer
equipment
£
8,342
-
8,342
7,807
146
7,953
389
535		 Fixtures,
fittings &
equipment
Motor vehicles
£
£
47,371
55,137
2,687
-
50,058
55,137
41,767
50,149
1,336
4,324
43,103
54,473
6,955
664
5,604
4,988		 Total
£
715,795
593,174
1,308,969
360,786
21,207
381,993
926,976
355,009

CONGREGATION OF PRIESTS OF THE SACRED HEART OF JESUS OF BETHARRAM

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

15 Fixed asset investments

Listed
investments
£
Cost or valuation
At 1 January 2022
3,963,852
Additions
268,822
Valuation changes and portfolio management fee
(392,539)
Cash drawn out
-
Accumulated income
-
Disposals
(1,055,658)
At 31 December 2022
2,784,477
Impairment
At 1 January 2022
-
Portfolio management fee
-
At 31 December 2022
-
Carrying amount
At 31 December 2022
2,784,477
At 31 December 2021
3,963,852
16
Financial instruments
Carrying amount of financial assets
Instruments measured at fair value through profit or loss
17
Debtors
Amounts falling due within one year:
Prepayments and accrued income
18
Creditors: amounts falling due within one year
Accruals and deferred income		 Cash in
portfolio
141,522
(268,706)
-
(600,025)
94,761
1,055,658
423,210
-
34,608
34,608
388,602
141,523
2022
£
2,784,477
2022
£
8,548
2022
£
20,065		 Total
£
4,105,374
116
(392,539)
(600,025)
94,761
-
3,207,687
-
34,608
34,608
3,173,079
4,105,375
2021
£
3,963,852
2021
£
5,145
2021
£
20,552

CONGREGATION OF PRIESTS OF THE SACRED HEART OF JESUS OF BETHARRAM

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

19 Designated funds

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

Balance at
1 January 2021
£
Tangible fixed assets
373,236
Investments
3,561,495
3,934,731
20
Analysis of net assets between funds
Unrestricted
fund
Designated
fund
2022
2022
£
£
Fund balances at 31
December 2022 are
represented by:
Tangible assets
-
926,976
Investments
-
3,173,080
Current assets/(liabilities)
421,554
-
421,554
4,100,056		 Transfers
Balance at
1 January 2022
Transfers
Balance at
31 December
2022
£
£
£
£
(18,226)
355,009
571,967
926,976
543,880
4,105,375
(932,295)
3,173,080
525,654
4,460,384
(360,328)
4,100,056
Total Unrestricted
fund
Designated
fund
Total
2022
2021
2021
2021
£
£
£
£
926,976
-
355,009
355,009
3,173,080
-
4,105,375
4,105,375
421,554
472,427
-
472,427
4,521,610
472,427
4,460,384
4,932,811

21 Related party transactions

There were no disclosable related party transactions during the year (2021 - none).

22 Cash generated from operations

Cash generated from operations
(Deficit)/surpus for the year
Adjustments for:
Investment income recognised in statement of financial activities
Fair value gains on investments
Depreciation and impairment of tangible fixed assets
Movements in working capital:
(Increase)/decrease in debtors
(Decrease) in creditors
Cash absorbed by operations		 2022
£
(411,201)
(95,091)
392,424
21,207
(3,403)
(487)
(96,551)		 2021
£
578,092
(95,124)
(534,208)
20,014
607
(135)
(30,754)

CONGREGATION OF PRIESTS OF THE SACRED HEART OF JESUS OF BETHARRAM

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

23 Analysis of changes in net funds

The Congregation had no debt during the year.