**REGISTERED CHARITY NUMBER: 233881**
## **REPORT OF THE TRUSTEES AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020**
## **FOR**
**ENGLISH PROVINCE OF THE BROTHERS OF CHRISTIAN INSTRUCTION**
**ENGLISH PROVINCE OF THE BROTHERS OF CHRISTIAN INSTRUCTION**
## **CONTENTS**
## **FOR THE YEAR ENDED 31 AUGUST 2020**
||Page:|
|---|---|
|Trustees Report|1 to 4|
|Independent Examiner’s Report|5|
|Statement of financial activities|6|
|Balance sheet|7|
|Notes forming part of the financial statements|8 to 12|
**ENGLISH PROVINCE OF THE BROTHERS OF CHRISTIAN INSTRUCTION**
## **TRUSTEES REPORT**
## **FOR THE YEAR ENDED 31 AUGUST 2020**
## **Trustees**
Patrick Patterson ( Bro. Francis) Peter Tracey (Bro. Peter) (resigned 31 August 2020) James Hayes (Bro. James) (resigned 31 August 2020) Louis Seité (Bro. Louis) (retired 1 Sept 2019) Jacques Jouvance (Bro.Jacques) Yannick Houssay (Bro Yannick) (appointed 30 Jun 2019) Laurent Bouillet (Bro Laurent) (appointed 10 Nov 2019) Herve Asse (Bro Herve) (appointed 31 August 2020)
## **Address and Registered office**
C/o St Francis Xavier’s College Community House 23 Beaconsfield Road Liverpool L25 6EE
## **Independent Examiner**
Mr S E Datlen ACA Moore (South) LLP The Quay 30 Channel Way Ocean Village Southampton Hampshire SO14 3TG
## **Principal bankers**
HSBC Bank PLC Allerton Branch 23 Allerton Rd Liverpool L18 2DA
## **Solicitors**
Payne Marsh Stillwell 6 Carlton Crescent Southampton SO15 2EY
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**ENGLISH PROVINCE OF THE BROTHERS OF CHRISTIAN INSTRUCTION**
## **TRUSTEES REPORT**
## **FOR THE YEAR ENDED 31 AUGUST 2020**
The Trustees present their annual report and the financial statements for the year ended 31 August 2020. 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, the Charities Act 2011 and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their financial statements in accordance with the financial reporting standards applicable in the UK and Republic of Ireland published on 16 July 2014.
## **STRUCTURE, GOVERNANCE AND MANAGEMENT**
## **Governing document**
The Charity is constituted by a 1965 Trust deed and is registered with the Charity Commissioners under Charity number 233881.
## **Trustees**
The Trustees named above have served throughout the year. Appointment of Trustees is governed by the regulations of the Charity as stated in the Trust deeds of 1965. Trustees are elected by members of the English Province of the Brothers of Christian Instruction to serve for a three-year term of office, with the exception of the Provincial Superior, who is a trustee ex-officio. The Provincial Superior is appointed by the General Council of The Brothers of Christian Instruction based in Rome, following consultation of the brothers of the province, for a six-year term of office. He may be re-appointed for one or two three-year terms.
## **Risk management**
The Trustees have in place a risk management policy relating to financial responsibilities and each school has its own risk management policy relating to the activities of a school. The Charity will develop systems to monitor and control these risks to manage any impact that they may have on the Charity in the future.
## **Trustees training**
Input is arranged at one meeting per year and via inter-religious congregation involvement. Trustee representation at conferences relating to Charity Commission matters is encouraged. Individual trustees undertake their own professional in-service training which applies to the educational objectives of the trustees.
## **Organisational structure**
The English Province of The Brothers of Christian Instruction (EPBCI) is part of a worldwide congregation with establishments in twenty-five countries. In keeping with the vision of their founders John de La Mennais and Gabriel Deshayes, who began the Congregation in 1819 in Brittany, France, the Brothers strive to spread the knowledge of Jesus Christ and his Gospel. The Brothers exercise this apostolate chiefly, but not exclusively, in the field of Education.
The Brothers had two communities in England, both of which are closely connected with schools. In Southampton, St Mary's Independent School an Independent Day School for Boys and Girls. It is a separate registered Charity, (No. 1155647) whose Trustees are appointed by EPBCI. The school has two departments. The Preparatory Department with Nursery, Charlton House, caters for children between 3-11, and the senior department for students from 11-16. This school however, ceased activities in the year.
In Liverpool, St Francis Xavier’s College is an Academy for boys from 11-18 with girls accepted into the sixth form. The Academy is a company limited by guarantee (No. 08137421) and an exempt Charity. The trustees are EPBCI who appoint members to the Governing body.
## **Equal opportunities policy**
The Trustees operate an equal opportunities policy, as employer, seeking to appoint employees best qualified to carry out their several duties. With the exceptions permitted within the law they seek to make appointments without regard to gender, race or disability.
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**ENGLISH PROVINCE OF THE BROTHERS OF CHRISTIAN INSTRUCTION**
## **TRUSTEES REPORT**
## **FOR THE YEAR ENDED 31 AUGUST 2020**
## **OBJECTIVES AND ACTIVITIES**
## **Principal activities**
The objects of the Charity are to carry on, or direct any charitable works that advance the religious and other charitable works for the time being carried on, by, or under the direction of the EPBCI.
## **ACHIEVEMENTS AND PERFORMANCE**
## **Review of activities**
## **EDUCATION**
Support of the school in Southampton has ceased following the closure of St Mary’s Independent School. The support of the school in Liverpool continues, which provides facilities for the general public use.
## **FINANCIAL REVIEW**
## **Review of financial position**
The main focus of the Charity's activities continues to be the education provided by the two schools directed by the Brothers themselves.
In Liverpool, the Charity continued its support of the development of St Francis Xavier's College in its identity as an Academy.
In Southampton, the Charity has supported the development of St Mary's Independent School. Financial support amounting to £251,895 (2019:£107,518) was given during the year.
The net movement in funds in the year was a deficit of £460,934 (2019: £259,403) after incurring annual depreciation of £182,003. (2019: £182,003).
## **Reserves**
The Reserves represent the unrestricted funds arising from past operating results. The Trustees have determined that these reserves should be allowed to accumulate to ensure that funds are available to cover expenditure such as housing costs of the Brothers and donations to religious educational establishments which will enable them to advance the religious works as explained in the Charity’s objects.
## **Plans for future periods**
There will be considerable capital developments at St Francis Xavier’s College in the coming years under the Government scheme, supported by the local authority.
As the English Province is now liaised with the French Province, joint financial investments may develop in the intermediate future.
3
**ENGLISH PROVINCE OF THE BROTHERS OF CHRISTIAN INSTRUCTION**
## **TRUSTEES REPORT**
## **FOR THE YEAR ENDED 31 AUGUST 2020**
## **STATEMENT OF TRUSTEES' RESPONSIBILITIES**
The Charity Trustees are responsible for preparing the annual report and the financial statements in accordance with applicable law and 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 Charity at the balance sheet date and of its income and expenditure, for the financial year. In preparing the 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 judgments and estimates that are reasonable and prudent;
- state whichever applicable accounting standards have been followed, subject to any material departures that must be disclosed and explained in the financial statements;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Charity will continue its activities.
The Trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the Charity and enable them to ensure that the financial statements comply with the Charities Act 2011. 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.
## **INDEPENDENT EXAMINERS**
Moore (South) LLP continue to act for the Trustees and a resolution to re-appoint them will be proposed at the annual general meeting.
## **APPROVAL**
Approved by the Trustees and signed on their behalf:
Bro. Francis Trustee
Date: 28 June 2021
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**ENGLISH PROVINCE OF THE BROTHERS OF CHRISTIAN INSTRUCTION**
## **INDEPENDENT EXAMINER'S REPORT**
## **FOR THE YEAR ENDED 31 AUGUST 2020**
I report on the accounts of the Trust for the year ended 31 August 2020, which are set out on pages 6 to 12.
## **Respective Responsibilities of Trustees and Examiner**
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.
It is my responsibility to:
- (1) examine the accounts under Section 145 of the Charities Act;
- (2) to follow the procedures laid down in the General Directions given by the Charity Commissioners under Section 145(5)(b) of the Charities Act; and
- (3) to state whether particular matters have come to my attention.
## **Basis of Independent Examiner's Statement**
My examination was carried out in accordance with the 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 you as Trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit, and consequently I do not express an audit opinion on the view given by the accounts.
## **Independent Examiner's Statement**
In connection with my examination, no matter has come to my attention:
- (1) which gives me reasonable cause to believe that in any material respect the trustees have not met the requirements:
to keep proper accounting records in accordance with Section 130 of the Charities Act; and
to prepare accounts which agree with the accounting records and comply with the accounting requirements of the Charities Act; or
- (2) to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached.
S E Datlen ACA Moore (South) LLP The Quay 30 Channel Way Ocean Village Southampton Hampshire SO14 3TG
Date: 28 June 2021
5
**ENGLISH PROVINCE OF THE BROTHERS OF CHRISTIAN INSTRUCTION**
## **STATEMENT OF FINANCIAL ACTIVITIES**
## **FOR THE YEAR ENDED 31 AUGUST 2020**
|**Note**
**Income**
**Incoming resources from generating funds:**
Voluntary income:
Donations and gifts
2
Investment income
3
Rental Income
**Total income**
**Expenditure:**
Charitable activities
4
**Total expenditure**
**Net movements in funds**
Other movements
Balance brought forward at 1 September 2019
**Balance carried forward at 31 August 2020**|**Total**
**unrestricted**
**funds**
**2020**
**£**
**170,543**
**96**
**5,920**
**176,559**
**637,493**
**637,493**
**(460,934)**
**-**
**5,189,091**
**4,728,157**|**Total**
**unrestricted**
**funds**
**2019**
**£**
154,806
71
5,940|
|---|---|---|
|||160,817|
|||420,220|
|||420,220|
|||(259,403)
(6,000)
5,454,494|
|||5,189,091|
The statement of financial activities includes all gains and losses recognised in the year.
All incoming resources and resources expended derive from continuing activities.
The notes on pages 8 to 12 form part of these financial statements
6
**ENGLISH PROVINCE OF THE BROTHERS OF CHRISTIAN INSTRUCTION**
## **BALANCE SHEET**
## **AS AT 31 AUGUST 2020**
|**Note**
**Fixed assets**
Tangible assets
6
**Current assets**
Other debtors
7
Cash and cash equivalents
8
**Current liabilities**
Creditors amounts falling due within one year
9
**Net current (liabilities)/assets**
**Total assets less current liabilities**
**Creditors:**amounts falling due after more than one
year
10
**Net assets**
**Total unrestricted funds**
11|**2020**
**£**
**5,246,196**
**-**
**123,326**
**123,326**
**641,365**
**(518,039)**
**4,728,157**
**-**
**4,728,157**
**4,728,157**|**2019**
**£**
5,428,199|
|---|---|---|
|||-
122,919|
|||122,919
45,500|
|||77,419|
|||5,505,618
316,527|
|||5,189,091|
|||5,189,091|
Approved by the Board of Trustees on 28 June 2021 and signed on its behalf by
Bro. Francis Trustee
The notes on pages 8 to 12 form part of these financial statements.
7
**ENGLISH PROVINCE OF THE BROTHERS OF CHRISTIAN INSTRUCTION**
## **NOTES FORMING PART OF THE FINANCIAL STATEMENTS**
## **FOR THE YEAR ENDED 31 AUGUST 2020**
## **1 Accounting policies**
## _Basis of preparation and assessment of going concern_
The financial statements are prepared under the historical cost convention as modified by the inclusion of investments at market value and land and buildings at valuation. The financial statements have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their financial statements in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) issued on 16 July 2014 and the Charities Act 2011.
The Trust constitutes a public benefit entity as defined by FRS102.
The Trustees consider that there are no material uncertainties about the Trust’s ability to continue as a going concern.
The financial statements are prepared in sterling which is the functional currency of the Charity rounded to the nearest £.
The Trust has taken advantage of the exemption not to produce a cash flow statement under SORP2015 update bulletin dated 2 February 2016.
## _Income recognition_
All income is recognised once the Charity is entitled to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably. The main income of the Charity results from the Brothers salaries and pensions credited directly to the Charity bank account. See note 2.
Legacies are recognised following the granting of probate when the estate has notified the Charity in writing both the amount and settlement date. In the event that the gift is in the form of an asset other than cash, recognition is subject to the value of the gift being reliably measured and title is transferred to the Charity.
Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Charity; this is normally upon notification by the bank.
## _Expenditure recognition_
Liabilities are recognised as expenditure as soon as there is a constructive or legal obligation committing the Charity to that expenditure and the amount can be measured reliably. Expenditure is included on an accruals basis. VAT is not recoverable by the Charity and is included with the item of expense to which it relates. The costs are allocated to either charitable activities or governance costs as appropriate.
Grants and donations are payments made in the furtherance of the charitable objectives of the Trust.
## _Tangible fixed assets and depreciation_
Land is not depreciated. Depreciation of other assets is provided at rates calculated to write off the excess of cost over estimated residual amount over the estimated useful economic lives of each asset as follows:
Buildings : 50 years Fixtures and Fittings : 25% reducing balance Motor vehicles : 25% straight line
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**ENGLISH PROVINCE OF THE BROTHERS OF CHRISTIAN INSTRUCTION**
## **NOTES FORMING PART OF THE FINANCIAL STATEMENTS**
## **FOR THE YEAR ENDED 31 AUGUST 2020**
## **2 Donations and gifts receivable**
|From Trustees
Donations
**3**
**Investment income**
Bank Interest
**4**
**Expenditure: Charitable activities**
Donation to St Mary’s Independent School
Other donations
Administration fee
Housing costs (see below)
Wages (note 5)
Maintenance
Transport
Printing, postage and telephone
Accountancy and other fees
Depreciation
Profit on disposal of fixed assets
Foreign exchange difference
Bank charges
Legal and professional
_Housing costs_
Rates and water
Light, heat and power
Food and living expenses
Repairs to rental properties
Depreciation
**5**
**Staff costs**
Wages and salaries|**2020**
**£**
**141,511**
**29,032**
**170,543**
**2020**
**£**
**96**
**2020**
**£**
**251,895**
**67,357**
**-**
**67,046**
**9,080**
**13,958**
**18,164**
**3,331**
**10,308**
**175,703**
**-**
**20,204**
**447**
**-**
**637,493**
**2020**
**£**
**4,131**
**7,847**
**48,768**
**-**
**6,300**
**67,046**
**2020**
**£**
**9,080**|**2019**
**£**
154,595
211
154,806
**2019**
**£**
71|
|---|---|---|
|||2019
£
107,518
809
10,909
67,233
8,320
7,845
26,526
2,712
8,100
175,703
(1,200)
5,268
477
-|
|||420,220|
|||2019
£
3,541
10,476
46,916
-
6,300
67,233
**2019**
**£**
8,320|
No employee earned over £60,000 in the year (2019: none). The average number of employees, calculated on full time equivalent basis was 1 (2019: 1).
The Trustees neither received nor waived any emoluments during the year (2019: £nil).
Payments of £nil (2019: £nil) were made to the Trustees in the year.
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**ENGLISH PROVINCE OF THE BROTHERS OF CHRISTIAN INSTRUCTION**
## **NOTES FORMING PART OF THE FINANCIAL STATEMENTS**
## **FOR THE YEAR ENDED 31 AUGUST 2020**
## **6 Tangible Fixed assets**
|_Cost_
At 1 September 2019
Additions
Disposals
At 31 August 2020
_Depreciation_
At 1 September 2019
Charge for the year
Disposals
At 31 August 2020
Net book value
At 31 August 2020
At 31 August 2019|**Land and**
**buildings**
**at cost**
**£**
737,416
-
-
**737,416**
294,962
14,748
-
**309,710**
**427,706**
442,454|**Land and**
**buildings at**
**estimated**
**cost**
**£**
8,252,946
-
-
**8,252,946**
3,277,026
163,980
-
**3,441,006**
**4,811,940**
4,975,920|**Fixtures and**
**fittings**
**£**
101,723
-
-
**101,723**
101,723
-
-
**101,723**
**-**
-|**Motor**
**vehicles**
**£**
23,056
-
-
**23,056**
13,231
3,275
-
**16,506**
**6,550**
9,825|**Total**
**£**
9,115,141
-
-|
|---|---|---|---|---|---|
||||||**9,115,141**|
||||||3,686,942
182,003
-|
||||||**3,868,945**|
||||||**5,246,196**
5,428,199|
Included in land and buildings is land valued at £54,000 (2019: £54,000) which is not depreciated.
## **7 Debtors**
|Loan
**8**
**Cash and cash equivalents**
Cash at bank
Cash
**9**
**Current liabilities**
Accruals and deferred income
Loan|**2020**
**£**
**-**
**2020**
**£**
**121,693**
**1,633**
**123,326**
**2020**
**£**
**8,400**
**632,965**
**641,365**|**2019**
**£**
-|
|---|---|---|
|||**2019**
**£**
121,194
1,725
122,919
**2019**
**£**
9,300
36,200
45,500|
10
**ENGLISH PROVINCE OF THE BROTHERS OF CHRISTIAN INSTRUCTION**
## **NOTES FORMING PART OF THE FINANCIAL STATEMENTS**
## **FOR THE YEAR ENDED 31 AUGUST 2020**
## **10 Creditors: amounts falling due after one year**
||**2020**|**2019**|
|---|---|---|
||**£**|**£**|
|Loan|**-**|316,527|
In January 2016, a loan was taken out with the French Province for €200,000. This is due for repayment by 5 annual instalments of €40,000 commencing January 2017. In June 2018, further loans were agreed totalling approximately €300,000. Further to this, other loans were granted in 2020 totalling £318,182. Further monies now advanced total €660,186 making the total to date €860,186. This loan was fully repaid in February 2021.
## **11 Analysis of charitable funds**
|Unrestricted
Designated|**Fund**
**B/fwd**
**£**
5,167,398
21,693
5,189,091|**Income**
**£**
176,513
46
176,559|**Expenditure**
**£**
(637,427)
(66)
(637,493)|**Loan**
**Repayment**
**£**
-
-
-|**Fund**
**C/fwd**
**£**
**4,706,484**
**21,673**
**4,728,157**|
|---|---|---|---|---|---|
The Designated Funds arose from monies in St Francis Xavier's College and will be used for projects specific to this school.
## **12 Analysis of Net Assets between funds**
|Tangible fixed assets
Bank and cash
Current liabilities|**Unrestricted**
**£**
5,246,196
101,653
(641,365)
4,706,484|**Designated**
**£**
-
21,673
-
21,673|**Total**
**£**
**5,246,196**
**123,326**
**(641,365)**
**4,728,157**|
|---|---|---|---|
## **13 Transactions with Trustees**
As members of the order, the Trustees’ living expenses during the year were borne by the Trust, but the Trustees did not receive any remuneration or other benefits in connection with their duties as trustees during the year.
## **14 Related parties**
As described in the Trustees Report on page 2 the EPBCI is closely connected to two schools, St Mary's Independent School in Southampton (Charity number 1155647) and St Francis Xavier's College in Liverpool, an Academy. The trust has secured the overdraft facilities of St Mary's Independent School by a charge on certain fixed assets.
St Mary's Independent School as an independent school, is a separately registered Charity and shares the same Board of Trustees as EPBCI. From time to time EPBCI has made considerable financial donations to St Mary's Independent School. During the year donations totalling £251,895 (2019: £107,518) were made to St Mary's Independent School.
The salaries and pensions received by the Trustees of St Francis Xavier's College amounting to £141,511 (2019: £154,595) were covenanted directly to EPBCI and form the main source of income of the Charity.
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**ENGLISH PROVINCE OF THE BROTHERS OF CHRISTIAN INSTRUCTION**
## **NOTES FORMING PART OF THE FINANCIAL STATEMENTS**
## **FOR THE YEAR ENDED 31 AUGUST 2020**
The Trustees are members of the Xaverian Club Council who rent (under a licence agreement) buildings and fixtures and fittings from EPBCI. Rent receivable in the year amounted to £Nil (2019: £nil)
## **15 Post balance sheet event**
In May 2020, St Mary’s Independent School ceased trading and is currently in administration. The Trustees’ believe that this charity’s balance sheet will be unaffected by this event as the current value of the site exceeds the balance sheet value.
14