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2022-08-31-accounts

INSTITUTE OF THE

RELIGIOUS OF CHRISTIAN INSTRUCTION

(Registered Charity Number: 243995) FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

Haysmacintyre LLP Chartered Accountants Registered Auditors London

INSTITUTE OF THE RELIGIOUS OF CHRISTIAN INSTRUCTION

(Registered Charity Numbers: 243995)

ANNUAL REPORT FOR THE YEAR ENDED 31 AUGUST 2022

LEGAL AND ADMINISTRATIVE DETAILS

PRINCIPAL OFFICE

TRUSTEES

St. Antony’s Convent Brigid Mary Kennedy (Sister Brede) 6 West Terrace Beatrice Mary O'Flaherty (Sister Josephine) Sherborne Christine Mary Browne (Sister Pauline) Dorset Paul Austin DT9 3ER SUPERIOR Sister Josephine O’Flaherty

SOLICITORS

SOLICITORS INDEPENDENT EXAMINER Tozers Adam Halsey FCA Broadwalk House Haysmacintyre LLP Southernhay West Chartered Accountants Exeter 10 Queen Street Place EX1 1UA London EC4R 1AG PRINCIPAL BANKERS INVESTMENT ADVISERS Lloyds Bank plc, Southampton Rathbones Quilter Cheviot

INSURANCE BROKERS

Gallagher 8 Albany Park Cabot Lane Poole Dorset BH17 7AZ

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INSTITUTE OF THE RELIGIOUS OF CHRISTIAN INSTRUCTION

TRUSTEES' REPORT

The Trustees present their Report and Accounts for the year ended 31 August 2022. The financial statements comply with the current statutory requirements, the Trust Deed and with the Statement of Recommended Practice for Charities (SORP 2015) (Second Edition, effective 1 January 2019).

STRUCTURE, GOVERNANCE AND MANAGEMENT

Details of the trustees who have served in the year and the principal advisors to the charity are set out on page 1.

The Institute of the Religious of Christian Instruction is an unincorporated charitable association established by a Trust Deed made on 11th May 1965 by M L J Mairlot, G N Phillips and H E Felstead. The Deed, as amended by a Scheme dated 15 November 1999, declared trusts: “for such charitable purposes as shall advance the religious and other charitable work of the Province as the trustees with the approval of the Superior shall from time to time think fit but if at any time the Province shall cease to exist or the said Institute shall cease to carry on religious or other charitable work in England or Wales then for such other lawful charitable purposes connected with the advancement of the Roman Catholic Religion as the trustees shall determine” . The Province is defined in the Trust Deed, as amended, to mean “the English Region of the voluntary association or community of women known as the Institute of the Religious of Christian Instruction and now established in England at St Antony’s Convent, Sherborne” .

For the purposes of both Trust Deeds, the Superior is vested the power of appointing and removing trustees.

The Trustees confirm that they have complied with the duty in section 17 of the Charities Act 2011 to have due regard to the Charity Commission’s general guidance on public benefit in determining the activities undertaken by the Charity.

The Superior administers certain funds on behalf of the Institute as a whole. Each year, in accordance with the Institute’s own Rules and Constitutions she submits to the Council a formal account of her administration of those funds. In addition, she is accountable to the Trustees at their regular meetings. Over and above the central administration of its English Region, the Institute's work has been carried out through the Convent at Sherborne (Dorset).

The Institute ran St Teresa's (Senior) School Effingham Hill and St Teresa's Preparatory School, with the help of a governing body constituted under an Instrument of Government adopted on 21 November 1994 until 1 September 2002 when the Trustees handed over the two Schools to a new charity, St Teresa’s School Effingham Trust, in furtherance of their educational work. The Trustees now have no direct role in the schools’ management and following the sale of the freehold reversion the charity now has no financial involvement in the School.

OBJECTS AND ACTIVITIES

Historically, the Institute has fulfilled its principal aims through the education and formation of religious Sisters, by teaching, pastoral and other work at the two schools at Effingham and Leweston, by care and pastoral work in parishes, and by its other charitable works, as well as by the provision of bursaries for Catholic education. More recently the Institute has achieved its objectives by facilitating such charitable causes in a non-direct way including the provision of grants, although the Sisters continue to work in the parish in a voluntary capacity. The Institute continues to support Leweston School by way of a loan.

3

INSTITUTE OF THE RELIGIOUS OF CHRISTIAN INSTRUCTION

TRUSTEES' REPORT (continued)

FINANCIAL REVIEW

The Statement of Financial Activities shows a deficit of £5,978 (2021: £43,887) before investment gains and losses.

The Institute continues to review its finances and needs in order to match future income with expenditure having regard to the increasing number of retired Sisters and until recently its involvement in the Schools at Effingham. No commitments or guarantees have been given in this or any other respect.

At the year end the charity’s total funds including functional property stood at £3,470,377. This comprises tangible fixed assets with a net book value of £390,624 consisting entirely of assets which are required for the continuing work of the charity. A further £30,000 represents loans to St Antony’s - Leweston School Trust to assist with its purchase of the freehold properties from the Institute. The remaining £3,049,753, comprising cash and investments less committed funds, is held to fund the day-to-day activities of the charity and to provide funds for the continuing support of the members of the Institute.

The Institute continues to review its spending plans and needs and makes every effort to manage its existing assets as efficiently as possible in order to generate the income necessary to achieve the charity’s aims, including provision for Sisters in retirement. The Trustees are satisfied that the overall position is sound, but are conscious that their resources are limited in the face of future needs.

RESERVES POLICY

Having reviewed their available funds and income against immediate and foreseeable needs, the Trustees are satisfied that their reserves are not excessive. No specific actuarial projection has been made, but the Trustees have taken note of work done by other religious orders to identify future costs.

A designated Retirement Fund has been established from the sale proceeds of the former convent schools at Sherborne and Leweston, with an initial balance of £1m. It was agreed in previous years to increase this balance to £1.5m. This sum will be kept under review and further additions or deductions made according to need, providing that the Sisters’ continuing work is not impaired. This Fund is essential to provide for the increasing numbers of retired sisters (all of whom have given their lives towards furthering the Institute’s charitable work) and the cost of nursing care when fewer sisters are able to earn an income. Given their age profile, it is believed that this new Retirement Fund will barely be sufficient to meet these needs.

A designated Tangible Fixed Asset Fund has also been established, representing the net book value of the charity’s property used for the support and ministry of sisters and especially for education. Such funds are not therefore readily realisable to meet future contingencies. To complement this fund, acknowledging the likely future costs attributable to the property, a maintenance fund has been established.

A designated fund has also been set up to represent the value of the loan to St Antony’s School, Leweston.

All these funds are considered essential if the important and often unpaid work carried on by the remaining active sisters is to continue in the long term, both in the Schools and in other pastoral work.

INVESTMENT POWERS AND POLICY

The Trustees have the statutory trustee investment powers and any additional powers given to them by the donors of any donated trust funds. The 15 November 1999 Charity Commission Scheme has been superseded by the Trustee Act 2000, permitting the Trustees to where appropriate take advantage of, and have regard to the requirements of, the provisions of the Act to enable a broad-based portfolio to be efficiently administered in the interests of the charity.

The Trustees have also adopted an investment policy which is ethically sound and appropriate to the charity’s needs, particularly with a view to securing capital growth to meet rising income needs in future years. They have resolved to hold substantial liquid funds for the time being, partly because of concerns over stock market performance, although the intention is to invest for the future as outlined elsewhere in this Report.

4

INSTITUTE OF THE RELIGIOUS OF CHRISTIAN INSTRUCTION

TRUSTEES' REPORT (continued)

CONNECTED CHARITIES

There are no related parties or connected charities associated with the charity, although it continues to work closely with Leweston School Trust, St Teresa’s School Effingham Trust and with the Roman Catholic Dioceses of Arundel & Brighton and Plymouth or their local representatives.

FUNDRAISING, VOLUNTARY HELP AND DONATIONS

The charity does not currently engage in fund-raising activities as such with members of the public. It does to some extent depend on voluntary donations and the occasional legacy to sustain its work. No material donations in kind or intangible income were received during the year. The charity does not, to any material extent, depend on volunteers for the provision of its pastoral work.

INTERNAL CONTROLS AND PROCEDURES

Little cash is held, and donations and other receipts are invariably by cheque, as is most expenditure. Internal controls of cash, donations and expenditure are therefore considered adequate.

The charity has not historically made grants other than occasional bursaries for pupils of its former schools. The trustees have formalised their grant making policies ensuring that all grants meet Charity Commission guidelines.

RISK ASSESSMENT

The Trustees have continued to give consideration to any major risks facing the charity and what steps, if any, should be taken to mitigate those risks. They have concluded that the greater risk to the charity now is the lack of novices or postulants under training for the religious life and the consequent fall in the number of sisters able to carry out its remaining charitable work and to care for those who need nursing or other assistance.

Despite those concerns, the recent restructuring of its activities has enabled the Institute to face the financial future with greater confidence. In the short to medium term the Trustees are satisfied that all the charity’s obligations can be met as they occur. Adoption of the above Reserves Policy is intended to ensure that the Institute will continue to be able to fulfil such obligations.

FUTURE PLANS

The Trustees will continue its charitable activities in 2022/2023 similarly to those performed in the 2021/2022 financial year.

The Trustees continue to support the schools in Effingham and Leweston.

5

INSTITUTE OF THE RELIGIOUS OF CHRISTIAN INSTRUCTION

TRUSTEES' REPORT (continued)

STATEMENT OF TRUSTEES' 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 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 these financial statements, the trustees are required to:

The trustees are responsible for keeping proper accounting records that 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, the charity (Accounts and Reports) Regulations 2008 and with the Trust Deed dated 11 May 1965. 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.

For and on behalf of the Trustees of the Institute of the Religious of Christian Instruction

Beatrice Mary O’Flaherty (Sister Josephine) Superior

Date: 31 May 2023

6

INDEPENDENT EXAMINER’S REPORT

TO THE TRUSTEES OF THE INSTITUTE OF THE RELIGIOUS OF CHRISTIAN INSTRUCTION

I report to the Trustees on my examination of the accounts of The Institute of the Religious of Christian Instruction for the year ended 31 August 2022 which are set out on pages 8 to 18.

Respective responsibilities of trustees and examiner

The trustees are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (“the 2011 Act”). The trustees are satisfied that an audit is not required for this year under section 144(2) of the Charities Act 2011 (the 2011 Act) and have chosen instead to have an independent examination.

I report in respect of my examination of the Trust’s accounts as carried out under section 145 of the 2011 Act. In carrying out my examination I have followed the requirements of the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

Independent examiner’s statement

I have completed my examination. I confirm that no matters have come to my attention giving me cause to believe that in any material respect:

  1. accounting records were not kept in respect of the charity as required by section 130 of the 2011 Act; or

  2. the accounts do not accord with those records; or

  3. 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.

Adam Halsey FCA Haysmacintyre LLP, Chartered Accountants 10 Queen Street Place London EC4R 1AG

Date: 31 May 2023

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INSTITUTE OF THE RELIGIOUS OF CHRISTIAN INSTRUCTION

STATEMENT OF FINANCIAL ACTIVITIES

FOR THE YEAR ENDED 31 AUGUST 2022

Unrestricted Unrestricted
Funds Funds
Notes 2022 2021
£ £
INCOME FROM:
Donations and legacies:
Covenanted pensions and Sisters’ income and stipends 29,156 25,603
Investments – listed investments 2 86,947 74,395
Rent and lease 16,444 16,045
----------------- -----------------
Total income 132,547 116,043
------------------ ------------------
EXPENDITURE ON:
Raising funds
Investment management 3 21,215 20,328
Charitable Activities
Support of members and their mission 3 117,310 139,601
--------------------- ---------------------
Total expenditure 138,525 159,929
--------------------- ---------------------
NET (EXPENDITURE) BEFORE GAINS AND LOSSES ON
INVESTMENTS (5,978) (43,886)
INVESTMENT GAINS AND LOSSES:
Realised (77,705) 28,403
Unrealised 6 (305,035) 488,859
-------------------- --------------------
NET MOVEMENT IN FUNDS (388,718) 473,376
RECONCILIATION OF FUNDS
Funds brought forward 3,859,095 3,385,719
---------------------- ----------------------
Funds carried forward 11 £3,470,377 £3,859,095
========== ==========

8

INSTITUTE OF THE RELIGIOUS OF CHRISTIAN INSTRUCTION

BALANCE SHEET

AS AT 31 AUGUST 2022

Notes
FIXED ASSETS
Tangible fixed assets
5
Investments
6
LOANS
7
CURRENT ASSETS
Debtors
8
Cash and bank balances
CREDITORS: Amounts falling due
within one year
9
NET CURRENT ASSETS

FUNDS OF THE CHARITY
Unrestricted funds
General funds
11(a)
Designated funds
11(b)
 2022
£
390,624
2,929,360
~~---------------------~~
3,319,984
~~---------------------~~
30,000
~~----------------~~
8,525
124,669
~~----------------~~
163,194
(12,801)
~~----------------------~~
150,393
~~----------------------~~
£3,470,377
===========

1,373,998
2,096,379
~~----------------------~~
£3,470,377
===========
 2021
£
392,051
3,340,177
~~---------------------~~
3,732,229
~~---------------------~~
100,000
~~----------------~~
8,004
31,743
~~----------------~~
39,747
(12,881)
~~----------------------~~
126,866
~~----------------------~~
£3,859,095
===========
1,761,289
2,097,806
~~----------------------~~
£3,859,095
===========

The financial statements were approved and authorised for issue by the Board of the Trustees on 31 May 2023 and were signed below on its behalf by:

Beatrice Mary O’Flaherty (Sister Josephine) Superior

9

INSTITUTE OF THE RELIGIOUS OF CHRISTIAN INSTRUCTION

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 AUGUST 2022

1. ACCOUNTING POLICIES

The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the accounts are laid out below.

Basis of preparation

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 Statement of Recommended Practice for Charities (SORP 2015) (Second Edition, effective 1 January 2019).

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).

Critical accounting estimates and areas of judgement

Preparation of the accounts requires the Trustees to make significant judgements and estimates. It also requires management to exercise judgment in applying the Charity’s accounting policies. The items in the accounts where these judgements and estimates have been made include:

Assessment of going concern

The Trustees have assessed whether the use of the going concern assumption is appropriate in preparing these accounts. The Trustees have made this assessment in respect to a period of one year from the date of approval of these accounts.

The Trustees of the charity have concluded that there are no material uncertainties related to events or conditions that may cast significant doubt on the ability of the charity to continue as a going concern. The Trustees are of the opinion that the charity will have sufficient resources to meet its liabilities as they fall due. The most significant areas of judgement that affect items in the accounts are detailed above. With regard to the next accounting period, the year ending 31 August 2019, the most significant areas that affect the carrying value of the assets held by the charity are the level of investment return and the performance of the investment markets (see the investment policy and the risk management sections of the Trustees’ Report for more information).

Income recognition

Income is 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.

For legacies, entitlement is taken as the earlier of the date on which either: the charity is aware that probate has been granted, the estate has been finalised and notification has been made by the executor(s) to the Trust that a distribution will be made, or when a distribution is received from the estate. Receipt of a legacy, in whole or in part, is only considered probable when the amount can be measured reliably and the charity has been notified of the executor’s intention to make a distribution. Where legacies have been notified to the charity, or the charity is aware of the granting of probate, and the criteria for income recognition have not been met, then the legacy is a treated as a contingent asset and disclosed if material.

Income received in advance is deferred until the criteria for income recognition are met.

In accordance with the Charities SORP FRS102, volunteer time is not recognised.

Dividends are recognised once the dividend has been declared and notification has been received of the dividend due.

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 of the interest paid or payable by the bank.

10

INSTITUTE OF THE RELIGIOUS OF CHRISTIAN INSTRUCTION

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 AUGUST 2022

1. ACCOUNTING POLICIES (continued)

Expenditure recognition and irrecoverable VAT

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. Expenditure is classified under the following activity headings:

Charitable grants and donations are made where the Trustees consider there is real need following a review of the details of each particular case and comprise single year payments rather than multi-year grants. Grants and donations are included in the statement of financial activities when approved for payment. Provision is made for grants and donations approved but unpaid at the year end.

Covenanted salaries and pensions are received under deeds of covenant from members of the Society and are stated inclusive of income tax but net of any deductions for social security payments and contributions to occupational pension schemes.

Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.

Allocation of support and governance costs

Support costs represent indirect charitable expenditure. In order to carry out the primary purposes of the charity it is necessary to provide support in the form of personnel development, financial procedures, provision of office services and equipment and a suitable working environment.

Tangible Fixed Assets

Expenditure on tangible assets since 1 September 1997 in respect of the convents, has been capitalised. Expenditure prior to those dates was written off. Properties owned at 1 September 1997 have been included at a trustees’ estimate of value. Subsequent acquisitions or improvements are capitalised at cost.

. .
acquisitions or improvements are capitalised at cost.		 . .
acquisitions or improvements are capitalised at cost.
Improvements to land and buildings and purchase of other assets costing more than £2,000 are capitalised. Depreciation is now
provided on all tangible fixed assets at rates calculated to write off each asset evenly over its expected useful life as follows:
Land - Not depreciated
Freehold buildings - 100 years (from 1 September 1997)
Plant and equipment - Between 3 and 15 years
Building improvements - 15 and 50 years
Motor vehicles - 4 years

Investments

Quoted investments are valued at fair value on the balance sheet date.

Realised and unrealised gains or losses are reflected in the Statement of Financial Activities in the year in which they occur.

Cash Flow Statement

As a small charity, the trustees have not prepared a Cash Flow Statement.

11

INSTITUTE OF THE RELIGIOUS OF CHRISTIAN INSTRUCTION

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 AUGUST 2022

1. ACCOUNTING POLICIES (continued)

Financial Instruments

The charity only holds 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.

Debtors

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

Cash at bank and in hand

Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account. Deposits for more than three months and up to one year have been disclosed as short-term deposits. Cash placed on deposit for more than one year is disclosed as a fixed asset investment.

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 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 due.

Services provided by members of the Congregation

For the purposes of these accounts, no value has been placed on administrative and other services provided by the members of the Congregation.

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.

2.
BANK INTEREST AND DIVIDENDS
Bank deposit interest
Dividends from listed investments		 2022
£
2,261
84,686
~~--------------~~
£86,947
=======		 2021
£
1,505
72,890
~~--------------~~
£74,395
=======

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INSTITUTE OF THE RELIGIOUS OF CHRISTIAN INSTRUCTION

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 AUGUST 2022

3. EXPENDITURE - 2022 Total Total
Staff Costs Other Depreciation 2022 2021
£ £ £ £ £
Charitable Activities
Support of members and their mission
Provincial and Communities
- Community and living costs - 71,666 - 71,666 54,496
- Other costs - 16,365 11,436 27,801 25,314
- Grants and donations - - - - 50,000
~~----------------~~ ~~------------------~~ ~~---------------~~ ~~--------------------~~ ~~--------------------~~
- 88,031 11,436 99,467 129,810
~~----------------~~ ~~------------------~~ ~~---------------~~ ~~--------------------~~ ~~--------------------~~
Governance
- Audit and accountancy - 15,769 - 15,769 8,491
- Legal and professional - 2,074 - 2,074 1,300
~~--------------~~ ~~--------------~~ ~~---------------~~ ~~--------------~~ ~~--------------~~
- 17,843 - 17,843 9,791
~~--------------~~ ~~--------------~~ ~~---------------~~ ~~--------------~~ ~~--------------~~
Investment management fees
(see below) - 21,215 - 21,215 20,328
~~--------------~~ ~~------------------~~ ~~---------------~~ ~~---------------------~~ ~~---------------------~~
Total expenditure £- £127,089 £11,436 £138,525 £159,929
======= ========= ======= ========== ==========
EXPENDITURE - 2021 Total
Staff Costs Other Depreciation 2021
£ £ £ £
Charitable Activities
Support of members and their mission
Provincial and Communities
- Community and living costs - 54,496 - 54,496
- Other costs - 14,623 10,691 14,623
- Grants and donations - 50,000 - 50,000
~~----------------~~ ~~------------------~~ ~~---------------~~ ~~--------------------~~
- 119,119 10,691 129,810
~~----------------~~ ~~------------------~~ ~~---------------~~ ~~--------------------~~
Governance
- Audit and accountancy - 8,491 - 8,49
- Legal and professional - 1,300 - 1,300
~~--------------~~ ~~--------------~~ ~~---------------~~ ~~--------------~~
- 9,791 - 9,791
~~--------------~~ ~~--------------~~ ~~---------------~~ ~~--------------~~
Investment management charges - 20,328 - 20,328
~~--------------~~ ~~------------------~~ ~~---------------~~ ~~---------------------~~
Total expenditure £ - £149,238 £10,691 £159,929
======= ========= ======= ==========

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INSTITUTE OF THE RELIGIOUS OF CHRISTIAN INSTRUCTION

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 AUGUST 2022

3.

EXPENDITURE (continued)
2022 2021
£ £
Included in expenditure:
Independent examiner’s fees 5,000 4,800
========= =========

Amounts totalling £2,074 (2021: £1,300) were paid to Paul Austin, a trustee for professional investment advice and assistance. No amounts were owed or owing at the year-end.

4. TRANSACTIONS WITH RELIGIOUS TRUSTEES

The religious trustees of the Charity are also members of the Society 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 Society within the Region. The living costs of the trustees are therefore borne by the Charity but the trustees receive no additional benefit by virtue of their office.

5. TANGIBLE FIXED
ASSETS Property Freehold land Motor Furniture &
improvements and buildings vehicles equipment Total
£ £ £ £ £
COST
At 1 September 2021 111,360 400,000 8,959 14,702 535,021
Additions 9,884 - - 125 10,009
----------------- -------------------- ---------------- --------------- -------------------
At 31 August 2022 121,244 400,000 8,959 14,827 545,030
----------------- ------------------- ----------------- ---------------- ------------------
DEPRECIATION
At 1 September 2021 28,897 96,000 8,959 9,114 142,970
Charge for the year 6,062 4,000 - 1,374 11,436
---------------- ------------------ ----------------- ----------------- ------------------
At 31 August 2022 34,959 100,000 8,959 10,488 154,406
--------------- ------------------ ----------------- ---------------- ------------------
NET BOOK VALUE
At 31 August 2022 £86,285 £300,000 £- £4,339 £390,624
======== ========= ======= ======== ==========
At 31 August 2021 £82,463 £304,000 £- £5,588 £392,051
======== ========== ======= ======== ==========

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INSTITUTE OF THE RELIGIOUS OF CHRISTIAN INSTRUCTION

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 AUGUST 2022

6. FIXED ASSETS INVESTMENTS 2022 2021
£ £
Fair value at 1 September 2021 3,177,566 2,654,118
Acquisitions at cost 540,864 678,423
Less disposals (625,919) (672,238)
Net gains on revaluation at 31 August 2022 (382,740) 517,263
-------------------- --------------------
Fair value at 31 August 2022 2,709,771 3,177,566
Cash held for reinvestment 219,589 162,612
---------------------- ----------------------
£2,929,360 £3,340,178
=========== ===========
Historical cost at 31 August 2022 £2,338,042 £2,411,911
=========== ===========
Represented by:
Investments in the UK, listed on the London Stock Exchange
UK Government stock 50,890 55,348
Fixed interest 26,123 30,240
Equities 740,894 949,230
Open ended investment companies, unit trusts and investment companies 1,866,994 2,117,568
Commodities 24,870 25,180
Cash 219,589 162,612
---------------------- ----------------------
£2,929,360 £3,340,178
=========== ===========

7. LOANS

After the sale of the freehold of St Antony’s Leweston School on 1 October 2000 and another property on 30 November 2004 to St Antony’s – Leweston School Trust loans were granted.

Following a variation of legal charges dated 30 March 2010 the loans and accrued interest were consolidated and will be interest free and repayable by annual instalments of £50,000 commencing 30 September 2010.

Repayable within one year
Repayable after more than one year		 2022
£
-
30,000
~~-------------------~~
£30,000
=========		 2021
£
-
100,000
~~-------------------~~
£100,000
=========

During the year, a repayment of £70,000 was received thereby reducing the loan to £30,000.

15

INSTITUTE OF THE RELIGIOUS OF CHRISTIAN INSTRUCTION

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 AUGUST 2022

8. DEBTORS 2022 2021
£ £
Other debtors and prepayments £8,525 £8,004
======= =======
9. CREDITORS: Amounts falling due within one year 2022 2021
£ £
Other creditors, accruals and deferred income £12,801 £12,881
======= =======
10. STATEMENT OF FUNDS – 2022
Balance at Transfers & Balance at
1 September Investment 31 August
2021 Income Expenditure Gains/(losses) 2022
£ £ £ £ £
Designated funds:
Tangible fixed assets fund 392,051 - (11,436) 10,009 390,624
Retirement fund 1,500,000 - - - 1,500,000
Property maintenance 55,755 - - - 55,755
Schools fund 150,000 - - - 150,000
---------------------- ------------------ -------------------- ----------------------- ----------------------
Total Designated funds 2,097,806 - (11,436) 10,009 2,096,379
General reserves 1,761,289 132,547 (127,089) (392,749) 1,373,998
----------------------- -------------------- -------------------- --------------------- -----------------------
£3,859,095 £132,547 £(138,525) £(382,740) £3,470,377
=========== ========== ========== ========== ===========
STATEMENT OF FUNDS – 2021
Balance at Transfers & Balance at
1 September Investment 31 August
2020 Income Expenditure Gains/(losses) 2021
£ £ £ £ £
Designated funds:
Tangible fixed assets fund 395,076 - (10,691) 7,666 392,051
Retirement fund 1,500,000 - - - 1,500,000
Property maintenance 55,755 - - - 55,755
Schools fund 150,000 - - - 150,000
---------------------- ------------------ -------------------- ----------------------- ----------------------
Total Designated funds 2,100,831 - (10,691) 7,666 2,097,806
General reserves 1,284,888 116,123 (149,238) 509,516 1,761,289
----------------------- -------------------- -------------------- --------------------- -----------------------
£3,385,719 £116,123 £(159,929) £517,182 £3,859,095
=========== ========== ========== ========== ===========

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INSTITUTE OF THE RELIGIOUS OF CHRISTIAN INSTRUCTION

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 AUGUST 2022

11. STATEMENT OF FUNDS (continued)

(a) General Fund

The general reserve represents the free funds of the charity.

(b) Designated Funds

The trustees have designated funds out of the unrestricted funds for specific purposes as follows:

Tangible fixed asset fund

The Charity holds a number of properties required to fulfil its charitable objectives. These properties are unrestricted assets, however they cannot be realised without undermining the Charity’s work and the trustees therefore consider it appropriate to reflect the investment in fixed assets by means of a designated fund. Transfers are made to and from the fund to reflect increases/decreases in the net book value of fixed assets.

Retirement fund

A fund has been designated to provide for the charity’s commitment to provide for the retirement and care in old age and sickness of the Congregation’s members. A review of the age profile of the Congregation’s membership has indicated that a fund of at least £1.5m is required to finance the Charity’s commitment to provide care for its elderly members. Further details are included in the Trustees’ Report under “Reserves Policy”.

Mission Fund

During the year, with the potential sale of the freehold interest in the Effingham Schools site in mind, meetings were held between senior council members of the congregation and the trustees to hear and discuss the international priorities and strategies. Having now determined that funds can be allocated for international mission work and still leave the charity with sufficient residual reserves, the trustees have designated £725,000 into a mission fund. A formal grant application will be considered by the trustees and decisions made based on the suitability and consistency with the charity’s core objectives. During the year the balance of the fund was paid to Congo Missions.

Maintenance Fund

To complement the fixed assets fund, acknowledging the likely future costs attributable to the property, a maintenance fund has been established.

Schools Fund

A designated fund has been set up to represent the value of the loan to St Anthony’s School, Leweston (see note 7).

12. ANALYSIS OF NET ASSETS BETWEEN FUNDS -2022

Designated Funds Designated Funds
Tangible General
fixed assets Retirement Other Funds Total
£ £ £ £ £
Fund balances at 31 August 2022
are represented by:
Tangible fixed assets 390,624 - - - 390,624
Investments - 1,500,000 - 1,429,360 2,929,360
Loan to St. Antony’s Leweston
School - - 30,000 - 30,000
Current assets - - 175,755 (42,561) 133,194
Current liabilities - - - (12,801) (12,801)
------------------- --------------------- -------------------- -------------------- ----------------------
£390,624 £1,500,000 £205,755 £1,373,998 £3,470,377
========== ========== ========= ========= ===========

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INSTITUTE OF THE RELIGIOUS OF CHRISTIAN INSTRUCTION

NOTES TO THE FINANCIAL STATEMENTS (continued)

FOR THE YEAR ENDED 31 AUGUST 2022

12. ANALYSIS OF NET ASSETS BETWEEN FUNDS - 2021

Designated Funds Designated Funds
ASSETS BETWEEN FUNDS Tangible General
fixed assets Retirement Other funds Total
£ £ £ £ £
Fund balances at 31 August 2021
are represented by:
Tangible fixed assets 392,051 - - - 392,051
Investments - 1,500,000 - 1,840,178 3,340,178
Loan to St. Antony’s Leweston
School - - 100,000 - 100,000
Current assets - - 105,755 (66,008) 39,747
Current liabilities - - - (12,881) (12,881)
------------------- --------------------- -------------------- -------------------- ----------------------
£392,051 £1,500,000 £205,755 £1,761,289 £3,859,095
========== ========== ========= ========= ===========

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INSTITUTE OF THE RELIGIOUS OF CHRISTIAN INSTRUCTION

INCOME AND EXPENDITURE NOTES

FOR THE YEAR ENDED 31 AUGUST 2022

INCOME
Rent
Pensions and attendance allowance
Dividends and interest
Donations
TOTAL INCOME
EXPEDITURE
Investment fees
Property costs
Living costs
Community
Administration
Exceptional donations
TOTAL EXPENDITURE
NET (EXPENDITURE)
(Losses)/gains on investment assets
- Realised
- Unrealised
NET MOVEMENT IN FUNDS

~~---~~
~~---~~

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INSTITUTE OF THE RELIGIOUS OF CHRISTIAN INSTRUCTION,

INCOME AND EXPENDITURE NOTES

FOR THE YEAR ENDED 31 AUGUST 2022

EXPENDITURE
Property cost
Light and heat
House
Grounds
Rates
Living costs
Food and household
Medical (doctor, dentist, optician)
Nursing homes fees
Community
Travel and petrol
Donations
Retreats
Cook/cleaner
Other
Administration
Office equipment, post and telephone
Insurance and licences
Accountancy
Legal and professional
Bank charges
Foreign Exchange
Depreciation		 Total
2022
£
5,052
1,300
267
3,613
~~----------------~~
£10,232
========

7,727
13,727
20,000
~~----------------~~
£41,454
========

4,869
2,725
130
22,488
-
~~--------------~~
£30,212
=======
4,061
2,644
15,769
2,074
65
(637)
11,436
~~---------------~~
£35,412
========
2021
£
4,424
1,067
47
2,549
~~----------------~~
£8,087
========
6,882
10,657
21,754
~~----------------~~
£39,293
========
2,893
5,825
200
6,285
-
~~--------------~~
£15,023
=======
4,197
2,310
8,491
1,300
29
-
10,691
~~---------------~~
£26,692
========

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INSTITUTE OF THE RELIGIOUS OF CHRISTIAN INSTRUCTION

INCOME AND EXPENDITURE NOTES (continued)

FOR THE YEAR ENDED 31 AUGUST 2022

Exceptional Expenditure
Donation
Investment management charges		 Total
2022
£
-
~~-------------------~~
£-
=========
£21,215
=========
2021
£
50,000
~~-------------------~~
£50,000
=========
£20,238
=========

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