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2023-12-31-accounts

MISSIONARY SISTERS

SERVANTS OF THE HOLY SPIRIT

FINANCIAL STATEMENTS

31 DECEMBER 2023

(Charity Number: 233377)

MISSIONARY SISTERS - SERVANTS OF THE HOLY SPIRIT

TRUSTEES’ REPORT

FOR THE YEAR ENDED 31 DECEMBER 2023

LEGAL AND ADMINISTRATIVE DETAILS

Trustees Joan Quirke
Carmen Lee
Mary Patricia Hudson
Joanna Kubisz
Lizy Joseph
Yudith Anu
Regional Superior Joan Quirke
Regional Bursar Joanna Kubisz
Principal Office The Convent
11 Kings Weston Lane
Lawrence Weston
Bristol
BS11 0QU
Charity Registration Number 233377
Governing Instrument Trust Deed dated 25 September 1965 (as amended by a scheme dated
26 July 1967 and as amended on 14 May 2024)
Independent Examiner Olayinka Tomori
& Charity Commission named correspondent Longmeade Consult Ltd
Regus House
Victory Way, Admiral’s Park
Dartford
DA2 6QD
Solicitors Stone King
13 Queen Square
Bath
BA1 2HJ
Principal Bankers Lloyds Bank
Fleet
P O Box 1000
Andover
BX1 1LT
Investment Managers Charles Stanley Asset Management
55 Bishopsgate
London
EC2N 3AS
Investment Powers There are no restrictions on the trustees’ powers of investment

MISSIONARY SISTERS - SERVANTS OF THE HOLY SPIRIT

TRUSTEES’ REPORT

FOR THE YEAR ENDED 31 DECEMBER 2023

INTRODUCTION

The trustees present their report together with the accounts for the year ended 31 December 2023.

The financial statements have been prepared in accordance with the Charities Act 2011 and the 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) (Second Edition effective 1 January 2019) and comply with the charity’s trust deed.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Objects

The objects of the charity are to advance the religious and other charitable work of the Missionary Sisters as the Trustees, with the approval of the Superior, shall from time to time think fit and for such other lawful charitable purposes connected with the advancement of the Roman Catholic religion as the Trustees shall determine.

Trustees and Governance

All trustees are members of the Congregation. The power of appointment and removal of trustees rests with the Superior General for the time being. The trustees meet as frequently as is required for the purposes of the charity’s activities and will meet at least twice per year. As members of the Congregation all trustees are well-versed in its charism, or ethos, and the objectives and activities of the charity.

When necessary, the trustees seek advice and support from the charity’s professional advisers and attend courses, conferences and training days as required in order to keep up-to-date with legal, regulatory and other such matters.

ACTIVITIES AND ACHIEVEMENTS

The Missionary Sisters – Servants of the Holy Spirit is an international Roman Catholic Congregation with a Region in the UK. The charity exists to carry out the charitable aims of the Congregation and is the legal vehicle through which its UK assets are held. Throughout 2023, there were communities of Sisters in Bristol and in Birmingham. Substantial refurbishments and upgrading works are ongoing at the charity’s property in Bristol.

The Sisters of the Congregation in England undertake a wide variety of activities in pursuit of the Congregation’s charitable aims.

Our charitable activities

MISSIONARY SISTERS - SERVANTS OF THE HOLY SPIRIT

TRUSTEES’ REPORT

FOR THE YEAR ENDED 31 DECEMBER 2023

ACTIVITIES AND ACHIEVEMENTS - Our charitable activities (continued)

o Religious Activities

Work during the year

During the year our work included:

Minority Groups

In 2022/2023, the charity conducted an in-depth review of its policies for the protection of children and vulnerable adults and it continues to ensure that they have in place detailed guidance for all those working in the pursuit of the charity’s aims.

The charity had no volunteers supporting its activities in the year.

PUBLIC BENEFIT GUIDANCE OF THE CHARITY COMMISSION

The trustees confirm that they have referred to the guidance contained in the Charity Commission’s general guidance on Public Benefit when reviewing the charity’s aim and objectives and in planning future activities. In particular, the trustees consider how planned activities will contribute to the aims and objectives they have set.

MISSIONARY SISTERS - SERVANTS OF THE HOLY SPIRIT

TRUSTEES’ REPORT

FOR THE YEAR ENDED 31 DECEMBER 2023

FINANCIAL REVIEW

The charity’s principal sources of income continue to be income donated by the sisters of the Congregation from pensions, salaries and stipends. There is also income from general donations and investment income. Another substantial donation of £131.2k (2022: £300.6k) was received from the Irish Region in the year which, as in the prior year, has been applied to property refurbishments in Bristol. Rental income is a constant source of income, which arises from the letting of a property, not required for the charity’s own charitable work. For the time being it is let to a third-party organisation (a registered charity assisting disabled people). The rent is set below the market rate, to enable the organisation to pursue its charitable purposes, which are parallel to those of the charity. Total income in the year was £252.8k (2022: £409.4k)

Expenditure to support charitable activities were £201.6k compared to £147.2k in 2022. The Sisters continue to closely monitor costs, but community and administration expenses rose in the year due to persistently high inflation in the year, especially on household and utility costs. Increased operating costs was a result of preliminary building works on Bristol while support costs rose as temporary accommodation was rented for the sisters pending completion of works at Bristol. The charity also continues to spend a significant amount for visa sponsorship licence for sisters to work or study in the UK.

£693k was spent on the refurbishment work at Bristol and these costs have been capitalised. Most of the building project had been completed by the end of the year.

The net movement in funds for the year was £75.8k (2022: £212.2k). At the end of the year, the net funds had increased to £1,918k from £1,842k in 2022.

Investment policy and performance

The trustees’ investment strategy is to maximise total return within acceptable levels of risk and within certain ethical constraints. The fund manager is instructed to avoid investment in companies whose main activities are considered to be in conflict with the teachings of the Roman Catholic Church. This includes tobacco and armaments, coal and unconventional fossil fuel resources and extraction techniques.

The year to 31 December 2023 returned to the downward trend experienced during the height of the pandemic in 2020. However, this was because of the instability brought to the world economy with the war in Ukraine. Consequently, there were substantial losses in stock values.

Withdrawals are made from the portfolio to meet fund management fees. The total return (income plus/minus capital gains/losses) on the portfolio was +8.87% (2022: -7.65%.), reflecting the rallying of the stock markets in 2023.

Whilst this represents a substantial reduction in values, the trustees consider this to have been a satisfactory return especially in the light of uncertainties in the global economy over the period. The trustees will continue to monitor closely the performance of the portfolio and will meet with the charity’s investment manager at least once every six months.

Reserves Policy

The charity owns Fixed Assets in the form of properties in Farnham, Birmingham and Bristol. The Farnham property is now considered to be surplus to the needs of the sisters. As noted above, the trustees are furthering the charity’s objects by means of letting this property to a third-party charity. The trustees continue to keep the charity’s property requirements under review. The trustees are confident that the properties have a market value in excess of the net book value of £1,086k.

At the end of 2023, the total of cash and investments was £917.5k (2022: £1,508.1k); the reduction due to costs of refurbishing the property in Bristol. While accumulated cash and investment reserves have fallen, the trustees believe the refurbishment in Bristol will contribute to the long-term wellbeing of its members.

The trustees consider that the charity should hold approximately two years’ expenditure in general reserve; that is around £250k to £300k at current levels. The demographics of the Congregation’s membership also mean more planning is required to avert significant financial pressures in the longer term. The properties held by the charity are worth substantially more than the carrying value in the financial statements and these are seen as a reserve, to add to other resources as a form of Retirement Fund for the care of sisters in sickness and old age. Given that providing care in a nursing home for one sister could cost upwards of £60k per annum, the resources available is viewed by the trustees as very much a minimum sum required and they will continue to monitor this closely. Currently, there are 10 Sisters in the UK Region.

MISSIONARY SISTERS - SERVANTS OF THE HOLY SPIRIT

TRUSTEES’ REPORT

FOR THE YEAR ENDED 31 DECEMBER 2023

FUTURE PLANS

The charity commenced a significant refurbishment of its property in Bristol, to make the property more user friendly for people from the parish and surrounding area, wishing to use the house and chapel for meetings. The refurbishment work was also undertaken with the future requirements of the Sisters in mind. The project is expected to be completed in the first half of 2024.

Early in 2024, the trustees commissioned an external review of current and future cashflow requirements to ensure resources are available for the vital activities supported by the charity and to ensure sufficient resources are also available for the care of Sisters in old age or in sickness. The process is ongoing, and the trustees will review this periodically, to ensure the aims of the charity are met.

There are no immediate plans to change significantly the way that the charity operates.

STATEMENT OF TRUSTEES' RESPONSIBILITIES

The trustees are responsible for preparing the trustees' report and the accounts 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 accounts for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that period.

In preparing these accounts, the trustees are required to:

The trustees are responsible for keeping proper accounting records that are sufficient to show and explain the charity’s transactions and disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the accounts comply with the Charities Act 2011 and the applicable Charity (Accounts and Reports) Regulations and the provisions of the charity’s constitution. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Approved by the Trustees on 16[th] May 2024 and signed on their behalf by:

……………………………….. Lizy Joseph Trustee

INDEPENDENT EXAMINERS’ REPORT TO THE TRUSTEES OF

MISSIONARY SISTERS - SERVANTS OF THE HOLY SPIRIT

I report to the charity trustees on my examination of the accounts of the Missionary Sisters – Servants of the Holy Spirit Charitable Trust (the Trust) for the year ended 31 December 2023 which comprise the Statement of Financial Activities, the Balance Sheet and related notes.

RESPECTIVE RESPONSIBILITIES OF TRUSTEES AND EXAMINER

The charity's trustees are responsible for the preparation of the accounts. The charity’s trustees consider that an audit is not required for this year under section 144 of the Charities Act 2011 (“the Charities Act”) and that an independent examination is needed. The charity’s gross income exceeded £250,000 and I am qualified to undertake the examination by being a qualified member of the Institute of Chartered Accountants in England and Wales.

It is my responsibility to:

BASIS OF INDEPENDENT EXAMINER’S STATEMENT

My examination was carried out in accordance with general Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from the trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit, and consequently no opinion is given as to whether the accounts present a ‘true and fair’ view and the report is limited to those matters set out in the statement below.

INDEPENDENT EXAMINER’S STATEMENT

In connection with my examination, no material matters have come to my attention which gives me cause to believe that in, any material respect:

I have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

………………………………… Olayinka Tomori ACA, DChA

Longmeade Consult Ltd Regus House Victory Way, Admiral’s Park Dartford DA2 6QD

16[th] May 2024

MISSIONARY SISTERS - SERVANTS OF THE HOLY SPIRIT

STATEMENT OF FINANCIAL ACTIVITIES

FOR THE YEAR ENDED 31 DECEMBER 2023

Unrestricted Unrestricted
2023 2022
Total Total
Notes £ £
INCOME from
Donations and legacies:
Sisters’ salaries and pensions 46,098 48,020
Donation from Irish Region of the Congregation 131,164 300,569
Other donations 8,193 1,667
Investments:
Investment income and bank interest 27,272 14,700
Rental income 26,520 26,520
Other income 13,598 17,922
---------------- ----------------
Total Income 252,845 409,398
---------------- ----------------
EXPENDITURE on
Raising funds
Investment management costs 3,100 3,231
Charitable activities 3 198,509 143,953
------------------- -------------------
Total expenditure 201,609 147,184
------------------- -------------------
Net income before gains on investments 51,236 262,214
Net gains/(losses) on investments 6 24,561 (50,031)
------------------- -------------------
Net movement of funds 75,797 212,183
Fund balances brought forward
at beginning of year 1,842,025 1,629,842
-------------------- --------------------
Fund balances carried forward
at end of year 1,917,822 1,842,025
========== ==========

The accompanying notes form part of these financial statements.

There are no other gains or losses other than those disclosed in the statement above.

MISSIONARY SISTERS - SERVANTS OF THE HOLY SPIRIT

BALANCE SHEET

AS AT 31 DECEMBER 2023

Notes 2023 2022
£ £ £ £
FIXED ASSETS
Tangible Fixed Assets 5 1,119,493 418,651
Investments 6 447,178 425,877
-------------------- --------------------
1,566,671 844,528
CURRENT ASSETS
Debtors 14,709 14,764
Cash at bank and in hand 470,347 1,082,247
------------------ ------------------
485,056 1,097,011
CURRENT LIABILITIES
CREDITORS:
Amounts due within one year 7 (133,905) (99,514)
----------------- -----------------
NET CURRENT ASSETS 997,497
351,151
-------------------- --------------------
NET ASSETS 1,917,822 1,842,025
========== ==========
`
REPRESENTED BY:
Funds
- General 1,917,822 1,842,025
-------------------- --------------------
1,917,822 1,842,025
========== ==========

Approved by the Trustees on 16[th] May 2024 and signed on their behalf by:

…………………………… Lizy Joseph Trustee

The accompanying notes form part of these financial statements.

MISSIONARY SISTERS - SERVANTS OF THE HOLY SPIRIT

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

1. STATEMENT OF ACCOUNTING POLICIES

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) (Second edition effective 1 January 2019) – Charites SORP (FRS102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) and the Charities Act 2011.

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).

Stipends and Pensions

Income from stipends and pensions are 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. Income received in advance is deferred until the criteria for income recognition are met.

Donations and Legacies

Donations and legacies are recognised when receivable or when the charity becomes legally entitled to them and the value can be estimated with reasonable certainty. Receipts of property, investments or other gifts in kind are included at market value.

Expenditure

Charitable expenditure consists of all expenditure relating to the objects of the Charity. All costs are directly attributable to the activities under which they have been analysed. Irrecoverable VAT is included with the category of expense to which it relates.

Governance costs which form part of support costs, include expenditure on the governance of the charity and its assets and are primarily associated with constitutional and statutory requirements.

Tangible Fixed Assets

Individual fixed assets costing £1,500 or more are capitalised at cost and are depreciated annually over their estimated useful economic lives on a straight-line basis as follows:

Freehold land Nil
Freehold buildings 2%
Building improvements 10%
Motor vehicles 25%

Investments

Quoted investments are valued at their closing middle market price on the final day of the financial year for inclusion in the Statement of Assets and Liabilities.

Debtors

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

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 obligation can be measured or estimated reliably.

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.

Statement of cash flows

The charity qualifies as a small charity, hence is exempt from the requirement to produce a Statement of Cash Flows.

MISSIONARY SISTERS - SERVANTS OF THE HOLY SPIRIT

NOTES TO THE ACCOUNTS (Continued)

FOR THE YEAR ENDED 31 DECEMBER 2023

2. TRANSACTIONS WITH TRUSTEES

The trustees of the charity are members of the religious Congregation and as such have taken vows of poverty under which they renounce all personal rights to income and capital in favour of the charity. The living expenses of the trustees are therefore borne by the charity.

3. CHARITABLE ACTIVITIES

3. CHARITABLE ACTIVITIES
2023 2022
£ £
Supporting Sisters and their ministries:
Community 49,513 30,737
Formation and Education 20,542 21,992
Operating expenses 48,892 30,608
Apostolic work 4,325 3,023
Congregational support (Note 4) 2,000 2,000
Depreciation 16,626 15,645
Support costs 45,142 32,668
Governance costs 11,469 7,280
------------------- -------------------
198,509 143,953
========= =========
Included in governance costs are:
Independent examiner’s fees – examination 1,300 1,200
Independent examiner’s fees - other 3,120 3,120
======== ========
4. CHARITABLE SUPPORT OF THE CONGREGATION’S 2023 2022
GENERALATE AND MISSIONS £ £
Payments to overseas branches of the Congregation comprise:
Generalate in Italy 2,000 2,000
========= =========

MISSIONARY SISTERS - SERVANTS OF THE HOLY SPIRIT

NOTES TO THE ACCOUNTS (Continued)

FOR THE YEAR ENDED 31 DECEMBER 2023

5. TANGIBLE FIXED ASSETS

Freehold land Furniture & Motor
& buildings equipment Vehicles Total
£ £ £ £
Cost or valuation
At 1 January 2023 652,808 72,535 37,444 762,787
Additions 693,044 - 24,424 717,468
Disposals - - - -
------------------ --------------- --------------- --------------------
At 31 December 2023 1,345,852 72,535 61,868 1,480,255
------------------ --------------- --------------- --------------------
Depreciation
At 1 January 2023 249,538 72,532 22,066 344,136
Charge for year 10,520 - 6,106
Disposals - - - 16,626
--------------- -------------- ------------ ------------------
At 31 December 2023 260,058 72,532 28,172 360,762
--------------- -------------- ------------- ------------------
Net book value
At 31 December 2023 1,085,794 3 33,696 1,119,493
========= ========= ======== =========
At 31 December 2022 403,270 3 15,378 418,651
========= ========= ======== =========

All fixed assets are held entirely for use in the fulfilment of charitable purposes.

6. FIXED ASSET INVESTMENTS

2023 2022
£ £
Market value at 1 January 2023 425,877 479,098
Additions at cost 10,756 16,619
Disposals (at opening market value) (14,016) (19,809)
Net Gains/(Losses) 24,561 (50,031)
------------------- -------------------
Market value at 31 December 2023 447,178 425,877
========= =========
Cost at 31 December 2023 340,651 331,994
========= =========
2023 2022
The investment portfolio consists of: £ £
Listed on a recognised stock exchange 308,787 306,151
Bank deposits 9,763 13,089
Overseas investments 128,628 106,637
------------------ ------------------
447,178 425,877
========= =========

MISSIONARY SISTERS - SERVANTS OF THE HOLY SPIRIT

NOTES TO THE ACCOUNTS (Continued)

FOR THE YEAR ENDED 31 DECEMBER 2023

7. CREDITORS: Amounts falling due within one year
2023 2022
£ £
Other creditors and accruals 45,341 10,950
Dowries and Patrimony – held on behalf of sisters 88,564 88,564
---------------- ----------------
133,905 99,514
======== ========