SISTERS OF THE HOLY TRINITY
(Registered Charity Number: 234767)
TRUSTEES’ REPORT AND ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2023
SISTERS OF THE HOLY TRINITY
LEGAL AND ADMINISTRATIVE DETAILS
FOR THE YEAR ENDED 31 DECEMBER 2023
The trustees present their report along with the financial statements of the charity for the year ended 31 December 2023.
| TRUSTEES | Religious Trustees |
|---|---|
| J A M Baudras-Chardigny | |
| A M L H Jeanneteau | |
| B Lecaillon | |
| N M S Razafindrasoa | |
| C F Sullivan (until 26 March 2024) | |
| A M Timmins | |
| Lay Trustees | |
| J A Denby | |
| C J Forster | |
| M L Poupard | |
| C A A Zammit | |
| LOCAL SUPERIOR | A M Timmins |
| SUPERIOR GENERAL | N M S Razafindrasoa |
| PRINCIPAL OFFICE | Holy Trinity House |
| 15, Marian Gardens | |
| Bromley | |
| Kent, BR1 3FH | |
| CHARITY REGISTRATION NUMBER | 234767 |
| GOVERNING INSTRUMENT | Trust Deed dated 28 April 1964 |
| INDEPENDENT EXAMINER | Olayinka Tomori ACA DChA |
| Longmeade Consult Ltd | |
| The Old Rectory | |
| Springhead Road | |
| Northfleet, Kent | |
| DA11 8HN | |
| SOLICITORS | Lee Bolton Monier-Williams |
| 1 The Sanctuary | |
| Westminster | |
| London, SW1P 3JT | |
| PRINCIPAL BANKERS | National Westminster Bank |
| 143 High Street | |
| Bromley | |
| Kent, BR1 1JH | |
| INVESTMENT POWERS | The provisions of the Trustee Act 2000 apply. |
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SISTERS OF THE HOLY TRINITY
TRUSTEES’ ANNUAL REPORT
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.
OBJECTIVES, ACTIVITIES, ACHIEVEMENTS AND PERFORMANCE
The Charity’s Trust Deed states the objectives to be the advancement of religious and other charitable work carried out by or under the direction of the Congregation of the Sisters of the Holy Spirit (the Congregation). The Congregation has withdrawn from England and the last active members left the Convent in Bromley, Kent at the end of January 2021 and are now residing in convents overseas.
Although the Congregation has withdrawn from England the Charity of the Sisters of the Holy Trinity has continued to care for two retired members of the Congregation who are in residential nursing care, in accordance with the objectives of the Trust.
The Congregation in England
, The Congregation has not had any active members in England since January 2021. However, two retired elderly members who have given their working lives to its charitable activities were being cared for in residential nursing homes during 2023. Since March 2024 only one retired member is now left in residential care. The Trustees are in the process of winding down the activities of the charity.
FINANCIAL REVIEW
The year to 31 December 2023 saw a deficit before revaluation losses of £22,443 (2022: £78,054). Income rose from £28,711 in 2022 to £115,893 in 2023 with more government funding for one of the sisters residing in nursing care and the substantial rise in bank interest earnings following global increases in bank interest rates. There was a rise in expenditure from £106,765 in 2022 to £138,336 in 2023, reflecting increased costs for the sisters in nursing care. £8,000 was also taken off the value of investment property following its sale early in 2024.
£60,000 of the deferral of the proceeds from the sale of the Convent to the Parish of Saints Joseph and Swithun, Bromley (part of the Roman Catholic Archdiocese of Southwark) was redeemed during the year. This had the effect of reducing the deferred consideration to £180,000.
Reserves Policy
The balance of unrestricted funds at the year-end was £3.43m (2022: £3.47m). Of this, £0.45m is tied up in fixed asset investments – which includes the revaluation reserve of £73,513, leaving £2.98m as free reserves. This exceeds the targeted minimum level of free reserves (unrestricted reserves not tied in fixed assets) of approximately £200k, equivalent to one year’s recurring expenditure. Since the charity is responsible for the care of two sisters who are in residential nursing care in England and for the care of sisters who gave significant parts of their working lives to charitable activities maintained by the Congregation in England but are now overseas, the Trustees estimate that the liabilities exceed the reserves held. This is on the basis that a fund of at least £350,000 will be required for the care of each sister for which the charity has a commitment.
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TRUSTEES’ ANNUAL REPORT (continued)
FOR THE YEAR ENDED 31 DECEMBER 2023
FUTURE PLANS
Since the trustees sold the last investment property held by the charity in April 2024, they are considering how the charity can be wound up in accordance with statutory requirements and objectives of the Trust, whilst ensuring commitments in England are met by the Congregation.
STRUCTURE, GOVERNANCE AND MANAGEMENT
The Congregation of the Sisters of the Holy Trinity is an international religious congregation with headquarters in France. It has liquid assets and commitments in England which are administered by the Charity’s religious trustees with the support of four lay trustees and the Secretary of the Parish of Saints Joseph and Swithun. The Charity is governed by a Trust Deed dated 28 April 1964 and is registered with the Charity Commission, Charity Registration No 234767.
The trustees are kept informed on charity sector issues by professional advisors and through the resources provided by the Charity's legal advisors and accountant.
The accounts accompanying this report are the accounts of the charitable trust. They record all the assets that it holds in England.
Organisation
The Charity had ten Trustees during 2023 but since March 2024 the number of trustees reduced to nine on the death of C. F. Sullivan; the Superior General, four other members of the religious order and four lay members. The lay members were appointed to provide the expertise required for the next phase of the charity’s operation. The power of appointing new Trustees rests with the religious Trustees. Given the size and nature of the activities of the charity, the religious Trustees also manage the day-to-day activities of the charity with the support of the lay trustees.
Risk Review
The Trustees continue to review and identify major risks to which the charity is exposed, in particular, those related to the operations and finances of the Charity and the Trustees are satisfied that systems are in place to mitigate our exposure to the major risks.
Public Benefit
In setting the charity’s objectives, the Trustees have given due consideration to the Charity Commission’s guidance on Public Benefit. The Objectives, Activities, Achievements and Performance section above reflect how the charity fulfils this obligation.
POST BALANCE SHEET EVENT
The charity sold its investment property for £452,000 in April 2024. The trustees believe the valuation of the property at the year end aligns with the sale proceeds and have adjusted the value of the investment at the year end to reflect this.
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SISTERS OF THE HOLY TRINITY
TRUSTEES’ ANNUAL REPORT (Continued)
FOR THE YEAR ENDED 31 DECEMBER 2023
STATEMENT OF TRUSTEE’S RESPONSIBILITIES
The Trustees are responsible for preparing the Trustees’ Annual 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 of the charity to prepare financial statements 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 those financial statements, the Trustees are required to:
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles of the Charities SORP;
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make judgements and estimates that are reasonable and prudent;
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state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that this basis applies.
The Trustees are responsible for keeping 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, the applicable Charity (Accounts and Reports) Regulations and with the Trust Deed dated 28 April 1964. 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 28 October 2024 and signed on their behalf by:
……………………………………..
J A M Baudras-Chardigny Trustee
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INDEPENDENT EXAMINER’S REPORT
TO THE TRUSTEES OF SISTERS OF THE HOLY TRINITY
I report to the charity trustees on my examination of the accounts of the charitable company for the year ended 31 December 2023.
Responsibilities and basis of report
As the charity trustees of the Trust you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (‘the Act’).
I report in respect of my examination of the Trust’s accounts carried out under section 145 of the 2011 Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.
Independent examiner's statement
I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
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accounting records were not kept in respect of the Trust as required by section 130 of the Act; or
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the accounts do not accord with those records; or
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the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a ‘true and fair view which is not a matter considered as part of an independent examination.
I have no concerns and 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 The Old Rectory Springhead Road Northfleet Kent, DA11 8HN
28 October 2024
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SISTERS OF THE HOLY TRINITY
STATEMENT OF FINANCIAL ACTIVITIES
FOR THE YEAR ENDED 31 DECEMBER 2023
| Unrestricted | |||
|---|---|---|---|
| Total | Total | ||
| 2023 | 2022 | ||
| Notes | £ | £ | |
| Income and Endowments: | |||
| Covenanted stipends and pensions | 24,531 | 11,167 | |
| Investments: | |||
| Bank deposit interest | 91,362 | 5,208 | |
| Rental income from investment properties | - | 12,336 | |
| ----------------- | ----------------- | ||
| Total Income and Endowments | 115,893 | 28,711 | |
| ----------------- | ----------------- | ||
| Expenditure on: | 2 | ||
| Raising funds | 5,992 | 6,289 | |
| Charitable Activities | 132,344 | 100,476 | |
| ----------------- | ----------------- | ||
| Total Expenditure | 138,336 | 106,765 | |
| ------------------ | ------------------ | ||
| Net (expenditure) before transfers and other gains/(losses) | (22,443) | (78,054) |
|
| Revaluation loss on investment properties | 4 | (8,000) | - |
| ------------------ | ------------------ | ||
| Net movement in funds | (30,443) | (78,054) |
|
| Reconciliation of funds: | |||
| Total fund brought forward | 3,466,323 | 3,544,377 | |
| --------------------- | --------------------- | ||
| Total funds carried forward | £3,435,880 | £3,466,323 | |
| ========== | ========== |
All amounts arise from continuing activities and there are no recognised gains or losses other than those shown above in the Statement of Financial Activities.
All the funds in the prior year were unrestricted and therefore the information above suffices for the purposes of disclosure of a comparative Statement of Financial Activities.
The accompanying notes form part of these financial statements.
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SISTERS OF THE HOLY TRINITY
BALANCE SHEET
AS AT 31 DECEMBER 2023
| 2023 | 2022 | ||
|---|---|---|---|
| Notes | £ | £ | |
| TANGIBLE ASSETS | |||
| Fixed assets investments | 4 | 452,000 | 460,000 |
| ---------------------- | ---------------------- | ||
| 452,000 | 460,000 | ||
| =========== | =========== | ||
| CURRENT ASSETS | |||
| Debtors | 5 | 180,000 | 240,000 |
| Cash at bank and in hand | 2,810,126 | 2,768,423 | |
| -------------------- | -------------------- | ||
| 2,990,126 | 3,008,423 | ||
| CURRENT LIABILITIES | |||
| CREDITORS: Amounts falling due within one year | 6 | (6,246) | (2,100) |
| ------------------- | ------------------- | ||
| NET CURRENT ASSETS | 2,983,880 | 3,006,323 | |
| ------------------- | ------------------- | ||
| ----------------------- | ----------------------- | ||
| TOTAL NET ASSETS | £3,435,880 | £3,466,323 | |
| =========== | =========== | ||
| FUNDS | 7 | ||
| Unrestricted Funds: | |||
| General Unrestricted Funds | 3,362,367 | 3,384,810 | |
| Revaluation Reserve | 73,513 | 81,513 | |
| ----------------------- | ----------------------- | ||
| TOTAL FUNDS | £3,435,880 | £3,466,323 | |
| =========== | =========== |
Approved by the Board of Trustees and authorised for issue on 28 October 2024 and signed on their behalf:
……………………………… J A M Baudras-Chardigny Trustee
The accompanying notes form part of these financial statements.
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SISTERS OF THE HOLY TRINITY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
1. ACCOUNTING POLICIES
The financial statements have been prepared 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) (Second Edition effective 1 January 2019) - (Charities SORP (FRS 102) and the Charities Act 2011.
The charity meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes.
Going Concern
Although plans for the dissolution of the charity are ongoing, the trustees believe there are no material uncertainties about the Charity’s ability to continue to meet its liabilities until it is dissolved. Consequently, all assets are held at estimated recoverable amount. Trustees are actively considering, in consultation with their advisors how liabilities and assets will be transferred, in compliance with the Trust Deed dated 28 April 1964, to the Congregation’s headquarters in France.
Covenanted Stipends and Pensions
Covenanted stipends and pensions are received under deeds of covenant from Sisters of Holy Trinity and are stated inclusive of income tax but net of any deductions for social security payments and contributions to occupational pension schemes.
These are recognised in the financial statements when they become receivable.
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.
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.
Irrecoverable VAT is included with the category of expense to which it relates.
Fixed Assets Investments - Investment Properties
Investment properties are included in the financial statements at their current market valuation as obtained by the trustees.
Debtors
Trade and other debtors are recognised at the settlement amount due after any discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.
Creditors and provisions
Creditors and provisions are recognised where the charity has a present obligation from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts.
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SISTERS OF THE HOLY TRINITY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Financial instruments
The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.
Fund accounting
Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees. Designated funds are unrestricted funds earmarked by the trustees for application to a specific purpose.
Statement of cash flows
As a small charity, Sisters of the Holy Trinity is exempt from the requirement to produce a Statement of Cash Flows.
| 2. | EXPENDITURE | Total | Total |
|---|---|---|---|
| 2023 | 2022 | ||
| £ | £ | ||
| Raising funds (rental costs of investment properties) | 5,992 | 6,289 | |
| Charitable Activities | |||
| Support of Sisters and their ministry | 128,474 | 96,816 | |
| Missions and charitable grants | - | ||
| Governance costs | 3,870 | 3,660 | |
| ------------------ | ------------------ | ||
| 138,336 | 106,765 | ||
| ======== | ======== | ||
| Expenditure on raising funds includes costs incurred for the maintenance of the charity’s investment | properties. |
| £ | £ | |
|---|---|---|
| Net expenditure is stated after charging: | ||
| Independent examination fees (excl VAT) – in Governance costs: | ||
| Independent Examination | 1,600 | 1,700 |
| Accounting and other support | 400 | 400 |
| ======= | ======= | |
| EXPENDITURE (Prior Year) | Total | |
| 2022 | ||
| £ | ||
| Raising funds (rental costs of investment properties) | 6,289 | |
| Charitable Activities | ||
| Support of Sisters and their ministry | 96,816 | |
| Governance costs | 3,660 | |
| ------------------ | ||
| 106,765 | ||
| ======== |
3. STAFF COSTS
The charity had no staff in the year under review (2022: nil).
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SISTERS OF THE HOLY TRINITY
NOTES TO THE FINANCIAL STATEMENTS (Continued)
FOR THE YEAR ENDED 31 DECEMBER 2023
| 4. | FIXED ASSETS INVESTMENTS | 2023 | 2022 |
|---|---|---|---|
| £ | £ | ||
| Opening balance | 460,000 | 460,000 | |
| Disposal proceeds | - | - | |
| Loss on disposal | - | - | |
| Loss on revaluation | (8,000) | - | |
| ----------------- | ----------------- | ||
| 452,000 | 460,000 | ||
| ======== | ======== |
The fixed asset investments at the beginning of the 2021 were two identical investment properties purchased in 2015 for £756,974. An independent market valuation of the two properties was obtained from a qualified chartered surveyor as at 28[th] February 2020 of £920,000. One of the properties was sold in 2021 for net proceeds of £443,676.
The one remaining investment property was sold after the year end - in April 2024, for £452,000. Trustees have therefore revised the valuation in the financial statements in line with the sale price which they deem to be the value of the property as at 31 December 2023.
| 5. | DEBTORS | 2023 | 2022 |
|---|---|---|---|
| £ | £ | ||
| Other debtors –Deferred consideration (see below) | 180,000 | 240,000 | |
| ======== | ======== | ||
| Deferred consideration | |||
| Receivable within one year | 60,000 | 60,000 | |
| Receivable in two to five years | 120,000 | 180,000 | |
| Receivable after five years | - | - | |
| ----------------- | ----------------- | ||
| 180,000 | 240,000 | ||
| ======== | ======== |
The deferred consideration represents the difference between the sale price of £1,500,000 for the charity’s freehold Convent and the cash sum of £800,000 paid by the Parish of Saints Joseph and Swithun on completion of the sale on 9 November 2021. A further payment of £400,000 and the first of five instalment payments of £60,000 were received during 2022, in accordance with the sale contract. A second instalment of £60,000 was received in 2023. The balance of £180,000 is due in three annual instalments of £60,000 on subsequent anniversaries of the completion of the sale. The third instalment is due on the 9 November 2024 and the final instalment on the 9 November 2026.
6. CREDITORS: Amounts falling due within one year
| CREDITORS: Amounts falling due within one year | 2023 | 2022 |
| £ | £ | |
| Accruals | 6,246 | 2,100 |
| ======== | ======== |
7. ANALYSIS OF NET ASSETS BETWEEN FUNDS
All funds held the year end are unrestricted. Included in Unrestricted Funds are revaluation reserve balances of £73,513 arising from the revaluation of the charity’s investment properties in 2020 and 2023 – see Note 4.
8. TRANSACTIONS WITH TRUSTEES
The religious trustees are members of the Congregation of the Sisters of the Holy Trinity and have renounced any rights to personal income or capital. Consequently, the living and residential care expenses of religious trustees who served the Charity in England which were due during the year were borne by the Charity.
The religious trustees and the lay trustees did not receive any remuneration or other benefits in connection with their duties as Trustees during the year.
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