## **INSTITUTE OF THE** 

## **RELIGIOUS OF CHRISTIAN INSTRUCTION** 

**(Registered Charity Number: 243995) FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2023** 

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 2023** 

## **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 

2 



## **INSTITUTE OF THE RELIGIOUS OF CHRISTIAN INSTRUCTION** 

## **TRUSTEES' REPORT** 

The Trustees present their Report and Accounts for the year ended 31 August 2023.  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 £60,238 (2022:  £5,978) 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 £3,290,979.  This comprises tangible fixed assets with a net book value of £456,153 consisting entirely of assets which are required for the continuing work of the charity.  A further £150,000 represents loans to St Antony’s - Leweston School Trust to assist with its purchase of the freehold properties from the Institute.  The remaining £2,684,826, comprising cash and investments less committed funds, is held to fund the day-today 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 a current balance of £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 2023/2024 similarly to those performed in the 2022/2023 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: 

- select suitable accounting policies and then apply them consistently; 

- observe the methods and principles in the Charities SORP; 

- make judgements and estimates that are reasonable and prudent; 

- state whether the applicable accounting standards have been followed, subject to any material departures 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 in business. 

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: 23 April 2024** 

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 2023 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: 23 April 2024 

7 



## **INSTITUTE OF THE RELIGIOUS OF CHRISTIAN INSTRUCTION** 

## **STATEMENT OF FINANCIAL ACTIVITIES** 

## **FOR THE YEAR ENDED 31 AUGUST 2023** 

||||||**Unrestricted**|**Unrestricted**|
|---|---|---|---|---|---|---|
||||||**Funds**|**Funds**|
|||||**Notes**|**2023**|**2022**|
||||||**£**|**£**|
|**INCOME FROM:**|||||||
|Donations and legacies:|||||||
|Covenanted pensions and Sisters’|income and|stipends|||35,966|29,156|
|Investments – listed investments||||2|85,411|86,947|
|Rents|||||16,310|16,444|
||||||-----------------|-----------------|
|**Total income**|||||137,687|132,547|
||||||------------------|------------------|
|**EXPENDITURE ON:**|||||||
|_Raising funds_|||||||
|Investment management||||3|19,394|21,215|
|_Charitable Activities_|||||||
|Support of members and their mission||||3|178,531|117,310|
||||||---------------------|---------------------|
|Total expenditure|||||197,925|138,525|
||||||---------------------|---------------------|
|**NET**<br>**(EXPENDITURE)**|**BEFORE**|**LOSSES**|**ON**||||
|**INVESTMENTS**|||||(60,238)|(5,978)|
|**INVESTMENT GAINS AND LOSSES:**|||||||
|Realised|||||(4,336)|(77,705)|
|Unrealised||||6|(114,824)|(305,035)|
||||||--------------------|--------------------|
|**NET MOVEMENT IN FUNDS**|||||(179,398)|(388,718)|
|**RECONCILIATION OF FUNDS**|||||||
|**Funds brought forward**|||||3,470,377|3,859,095|
||||||----------------------|----------------------|
|**Funds carried forward**||||11|£3,290,979|£3,470,377|
||||||==========|==========|



8 



## **INSTITUTE OF THE RELIGIOUS OF CHRISTIAN INSTRUCTION** 

## **BALANCE SHEET** 

## **AS AT 31 AUGUST 2023** 

|**Notes**<br>**FIXED ASSETS**<br>Tangible fixed assets<br>5<br>Investments<br>6<br>**LOANS**<br>7<br>**CURRENT ASSETS**<br>Debtors<br>8<br>Cash and bank balances<br>**CREDITORS: Amounts falling due**<br>**within one year**<br>9<br>**NET CURRENT ASSETS**<br> <br>**FUNDS OF THE CHARITY**<br>Unrestricted funds<br>General funds<br>11(a)<br>Designated funds<br>11(b)<br>|**2023**<br>**£**<br>456,153<br>2,799,527<br>~~---------------------~~<br>3,255,680<br>~~---------------------~~<br>30,000<br>~~----------------~~<br>6,606<br>11,414<br>~~----------------~~<br>18,020<br>(12,721)<br>~~----------------------~~<br>5,299<br>~~----------------------~~<br>£3,290,979<br>===========<br> <br>1,129,071<br>2,161,908<br>~~----------------------~~<br>£3,290,979<br>===========<br>|**2022**<br>**£**<br>390,624<br>2,929,360<br>~~---------------------~~<br>3,319,984<br>~~---------------------~~<br>30,000<br>~~----------------~~<br>8,525<br>124,669<br>~~----------------~~<br>163,194<br>(12,801)<br>~~----------------------~~<br>150,393<br>~~----------------------~~<br>£3,470,377<br>===========<br>1,373,998<br>2,096,379<br>~~----------------------~~<br>£3,470,377<br>===========|
|---|---|---|



The financial statements were approved and authorised for issue by the Board of the Trustees on 23 April 2024 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 2023** 

## **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: 

- estimating the economic useful life of tangible fixed assets. 

## **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 



**NOTES TO THE FINANCIAL STATEMENTS** 

## **INSTITUTE OF THE RELIGIOUS OF CHRISTIAN INSTRUCTION** 

## **YEAR ENDED 31 AUGUST 2023** 

## **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: 

- Expenditure on raising funds comprise fees paid in respect of fund management advice in relation to the charity’s portfolio of quoted investments, which is managed under a discretionary management agreement. 

- Expenditure on charitable activities includes the costs of running the charity’s communities as well as all other costs associated with furthering the charitable purposes of the charity through the provision of its charitable activities. These costs comprise charitable grants and donations, direct and support costs in respect to the support of members of the Congregation and their ministry.  It also includes governance costs. 

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. 

|**Tangible Fixed Assets**<br>Expenditure on tangible assets since 1 September 1997 in respect of the convents, has been capitalised.  Expenditure prior to those<br>dates was written off.  Properties owned at 1 September 1997 have been included at a trustees’ estimate of value.   Subsequent<br>acquisitions or improvements are capitalised at cost.|**Tangible Fixed Assets**<br>Expenditure on tangible assets since 1 September 1997 in respect of the convents, has been capitalised.  Expenditure prior to those<br>dates was written off.  Properties owned at 1 September 1997 have been included at a trustees’ estimate of value.   Subsequent<br>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 2023** 

## **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.**<br>**BANK INTEREST AND DIVIDENDS**<br>Bank deposit interest<br>Dividends from listed investments|**2023**<br>**£**<br>2,402<br>83,009<br>~~--------------~~<br>£85,411<br>=======|**2022**<br>**£**<br>2,261<br>84,686<br>|
|---|---|---|
|||~~--------------~~<br>£86,947<br>=======|



12 



## **INSTITUTE OF THE RELIGIOUS OF CHRISTIAN INSTRUCTION** 

## **NOTES TO THE FINANCIAL STATEMENTS (continued)** 

## **FOR THE YEAR ENDED 31 AUGUST 2023** 

|**3.**|**EXPENDITURE - 2023**||||**Total**|**Total**|
|---|---|---|---|---|---|---|
||**Staff Costs**||**Other**|**Depreciation**|**2023**|**2022**|
|||**£**|**£**|**£**|**£**|**£**|
||**Charitable Activities**||||||
||**Support of members and their mission**||||||
||Provincial and Communities||||||
||- Community and living costs|-|74,541|-|74,541|71,666|
||- Other costs|-|21,032|15,885|36,917|27,801|
||- Grants and donations|-|-|-|-|-|
||~~----------------~~||~~------------------~~|~~---------------~~|~~--------------------~~|~~--------------------~~|
|||-|95,573|15,885|111,458|99,467|
||~~----------------~~||~~------------------~~|~~---------------~~|~~--------------------~~|~~--------------------~~|
||**Governance**||||||
||- Audit and accountancy|-|25,180|-|25,180|15,769|
||- Legal and professional|-|41,893|-|41,893|2,074|
||~~--------------~~||~~--------------~~|~~---------------~~|~~--------------~~|~~--------------~~|
|||-|67,073|-|67,073|17,843|
||~~--------------~~||~~--------------~~|~~---------------~~|~~--------------~~|~~--------------~~|
||Investment management fees||||||
||(see below)|-|19,394|-|19,394|21,215|
|||~~--------------~~|~~------------------~~|~~---------------~~|~~---------------------~~|~~---------------------~~|
||**Total expenditure**|£-|£182,040|£15,885|£197,925|£138,525|
|||=======|=========|=======|==========|==========|
||**EXPENDITURE - 2022**||||**Total**||
||**Staff Costs**||**Other**|**Depreciation**|**2022**||
|||**£**|**£**|**£**|**£**||
||**Charitable Activities**||||||
||**Support of members and their mission**||||||
||Provincial and Communities||||||
||- Community and living costs|-|71,666|-|71,666||
||- Other costs|-|16,365|11,436|27,801||
||- Grants and donations|-|-|-|-||
||~~----------------~~||~~------------------~~|~~---------------~~|~~--------------------~~||
|||-|88,031|11,436|99,467||
||~~----------------~~||~~------------------~~|~~---------------~~|~~--------------------~~||
||**Governance**||||||
||- Audit and accountancy|-|15,769|-|15,769||
||- Legal and professional|-|2,074|-|2,074||
||~~--------------~~||~~--------------~~|~~---------------~~|~~--------------~~||
|||-|17,843|-|17,843||
||~~--------------~~||~~--------------~~|~~---------------~~|~~--------------~~||
||Investment management charges|-|21,215|-|21,215||
|||~~--------------~~|~~------------------~~|~~---------------~~|~~---------------------~~||
||**Total expenditure**|£ -|£127,089|£11,436|£138,525||
|||=======|=========|=======|==========||



13 



## **INSTITUTE OF THE RELIGIOUS OF CHRISTIAN INSTRUCTION** 

## **NOTES TO THE FINANCIAL STATEMENTS (continued)** 

## **FOR THE YEAR ENDED 31 AUGUST 2023** 

## **3.** 

|**EXPENDITURE (continued)**|||
|---|---|---|
||**2023**|**2022**|
||**£**|**£**|
|Included in expenditure:|||
|Independent examiner’s fees|5,000|5,000|
||=========|=========|



Amounts totalling £2,914 (2022: £2,074) 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 2022|121,244|400,000|8,959|14,827|545,030|
||Additions|80,812|-|-|603|81,415|
|||-----------------|--------------------|----------------|---------------|-------------------|
||At 31 August 2023|202,056|400,000|8,959|15,430|626,445|
|||-----------------|-------------------|-----------------|----------------|------------------|
||**DEPRECIATION**||||||
||At 1 September 2022|34,959|100,000|8,959|10,488|154,406|
||Charge for the year|10,103|4,000|-|1,783|15,886|
|||----------------|------------------|-----------------|-----------------|------------------|
||At 31 August 2023|45,062|104,000|8,959|12,271|170,292|
|||---------------|------------------|-----------------|----------------|------------------|
||**NET BOOK VALUE**||||||
||At 31 August 2023|£156,994|£296,000|£-|£3,159|£456,153|
|||========|=========|=======|========|==========|
||At 31 August 2022|£86,285|£300,000|£-|£4,339|£390,624|
|||========|==========|=======|========|==========|



14 



## **INSTITUTE OF THE RELIGIOUS OF CHRISTIAN INSTRUCTION** 

## **NOTES TO THE FINANCIAL STATEMENTS (continued)** 

## **FOR THE YEAR ENDED 31 AUGUST 2023** 

|**6.**|**FIXED ASSETS INVESTMENTS**|**2023**|**2022**|
|---|---|---|---|
|||**£**|**£**|
||Fair value at 1 September 2022|2,709,771|3,177,566|
||Acquisitions at cost|256,320|540,864|
||Less disposals|(291,643)|(625,919)|
||Net loss on revaluation at 31 August 2023|(119,161)|(382,740)|
|||--------------------|--------------------|
||Fair value at 31 August 2023|2,555,287|2,709,771|
||Cash held for reinvestment|244,240|219,589|
|||----------------------|----------------------|
|||£2,799,527|£2,929,360|
|||===========|===========|
||Historical cost at 31 August 2023|£2,331,236|£2,338,042|
|||===========|===========|
||Represented by:|||
||Investments in the UK, listed on the London Stock Exchange|||
||UK Government stock|226,119|50,890|
||Fixed interest|101,632|26,123|
||Equities|1,504,220|740,894|
||Open ended investment companies, unit trusts and investment companies|707,298|1,866,994|
||Commodities|16,017|24,870|
||Cash|244,241|219,589|
|||----------------------|----------------------|
|||£2,799,527|£2,929,360|
|||===========|===========|



## **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<br>Repayable after more than one year|**2023**<br>**£**<br>-<br>30,000<br>~~-------------------~~<br>£30,000<br>**=========**|**2022**<br>**£**<br>-<br>30,000<br>~~-------------------~~<br>£30,000<br>**=========**|
|---|---|---|



During the year, no repayment was received and the loan remains at £30,000. 

15 



## **INSTITUTE OF THE RELIGIOUS OF CHRISTIAN INSTRUCTION** 

## **NOTES TO THE FINANCIAL STATEMENTS (continued)** 

## **FOR THE YEAR ENDED 31 AUGUST 2023** 

|**8.**|**DEBTORS**||||**2023**|**2022**|
|---|---|---|---|---|---|---|
||||||**£**|**£**|
||Other debtors and prepayments||||£6,606|£8,525|
||||||**=======**|**=======**|
|**9.**|**CREDITORS: Amounts falling due within one**||**year**||**2023**|**2022**|
||||||**£**|**£**|
||Other creditors, accruals and deferred income||||£12,721|£12,801|
||||||**=======**|**=======**|
|**10.**|**STATEMENT OF FUNDS – 2023**||||||
|||**Balance at**|||**Transfers &**|**Balance at**|
|||**1 September**|||**Investment**|**31 August**|
|||**2022**|**Income**|**Expenditure**|**losses**|**2023**|
|||**£**|**£**|**£**|**£**|**£**|
||Designated funds:||||||
||Tangible fixed assets fund|390,624|-|(15,885)|81,414|456,153|
||Retirement fund|1,500,000|-|-|-|1,500,000|
||Property maintenance|55,755|-|-|-|55,755|
||Schools fund|150,000|-|-|-|150,000|
|||----------------------|------------------|--------------------|-----------------------|----------------------|
||Total Designated funds|2,096,379|-|(15,885)|81,414|2,161,908|
||General reserves|1,373,998|137,687|(182,040)|(200,574)|1,129,071|
|||-----------------------|--------------------|--------------------|---------------------|-----------------------|
|||£3,470,377|£137,687|£(197,925)|£(119,160)|£3,290,979|
|||===========|==========|==========|==========|===========|
||**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|
|||===========|==========|==========|==========|===========|



16 



**INSTITUTE OF THE RELIGIOUS OF CHRISTIAN INSTRUCTION** 

## **NOTES TO THE FINANCIAL STATEMENTS (continued)** 

## **FOR THE YEAR ENDED 31 AUGUST 2023** 

## **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 -2023** 

||**Designated Funds**|**Designated Funds**||||
|---|---|---|---|---|---|
||**Tangible**|||**General**||
||**fixed assets**|**Retirement**|**Other**|**Funds**|**Total**|
||**£**|**£**|**£**|**£**|**£**|
|Fund balances at 31 August 2023||||||
|are represented by:||||||
|Tangible fixed assets|456,153|-|-|-|456,153|
|Investments|-|1,500,000|-|1,299,527|2,799,527|
|Loan to St. Antony’s Leweston||||||
|School|-|-|30,000|-|30,000|
|Current assets|-|-|175,755|(157,735)|18,020|
|Current liabilities|-|-|-|(12,721)|(12,721)|
||-------------------|---------------------|--------------------|--------------------|----------------------|
||£456,153|£1,500,000|£205,755|£1,129,071|£3,290,979|
||==========|==========|=========|=========|===========|



17 



**INSTITUTE OF THE RELIGIOUS OF CHRISTIAN INSTRUCTION** 

## **NOTES TO THE FINANCIAL STATEMENTS (continued)** 

## **FOR THE YEAR ENDED 31 AUGUST 2023** 

## **12. ANALYSIS OF NET ASSETS BETWEEN FUNDS - 2022** 

||**Designated Funds**|**Designated Funds**||||
|---|---|---|---|---|---|
|**ASSETS BETWEEN 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|
||==========|==========|=========|=========|===========|



18 



## **INSTITUTE OF THE RELIGIOUS OF CHRISTIAN INSTRUCTION** 

## **INCOME AND EXPENDITURE NOTES** 

## **FOR THE YEAR ENDED 31 AUGUST 2023** 

|**INCOME**<br>Rent<br>Pensions and attendance allowance<br>Dividends and interest<br>**TOTAL INCOME**<br>**EXPEDITURE**<br>Investment fees<br>Property costs<br>Living costs<br>Community<br>Administration<br>Exceptional donations<br>**TOTAL EXPENDITURE**<br>**NET (EXPENDITURE)**<br>(Losses) on investment assets<br>- Realised<br>- Unrealised<br>**NET MOVEMENT IN FUNDS**|||
|---|---|---|
||<br>|~~---~~<br>|
|||~~---~~<br>|



19 



**INSTITUTE OF THE RELIGIOUS OF CHRISTIAN INSTRUCTION,** 

## **INCOME AND EXPENDITURE NOTES** 

## **FOR THE YEAR ENDED 31 AUGUST 2023** 

|**EXPENDITURE**<br>Property cost<br>Light and heat<br>House<br>Grounds<br>Rates<br>Living costs<br>Food and household<br>Medical (doctor,  dentist, optician)<br>Nursing homes fees<br>Community<br>Travel and petrol<br>Donations<br>Retreats<br>Cook/cleaner<br>Administration<br>Office equipment, post and telephone<br>Insurance and licences<br>Accountancy<br>Legal and professional<br>Bank charges<br>Foreign Exchange<br>Depreciation|**Total**<br>**2023**<br>**£**<br>7,561<br>1,073<br>654<br>3,021<br>~~----------------~~<br>£12,309<br>**========**<br> <br>12,115<br>3,951<br>-<br>~~----------------~~<br>£16,066<br>**========**<br> <br>10,460<br>2,761<br>-<br>45,254<br>~~--------------~~<br>£58,475<br>=======<br>3,576<br>2,509<br>25,180<br>41,893<br>29<br>(12)<br>15,886<br>~~---------------~~<br>£89,061<br>========<br>|<br>**2022**<br>**£**<br>5,052<br>1,300<br>267<br>3,613<br>~~----------------~~<br>£10,232<br>**========**<br>7,727<br>13,727<br>20,000<br>~~----------------~~<br>£41,454<br>**========**<br>4,869<br>2,725<br>130<br>22,488<br>~~--------------~~<br>£30,212<br>=======<br>4,061<br>2,644<br>15,769<br>2,074<br>65<br>(637)<br>11,436<br>~~---------------~~<br>£35,412<br>========|
|---|---|---|



20 



## **INSTITUTE OF THE RELIGIOUS OF CHRISTIAN INSTRUCTION** 

## **INCOME AND EXPENDITURE NOTES (continued)** 

## **FOR THE YEAR ENDED 31 AUGUST 2023** 

|Exceptional Expenditure<br>Undertaker and Stonemason<br>Investment management charges|**Total**<br>**2023**<br>**£**<br>2,438<br>~~-------------------~~<br>£2,438<br>=========<br>£19,394<br>=========|<br>**2022**<br>**£**<br>-<br>~~-------------------~~<br>£-<br>=========<br>£21,215<br>=========|
|---|---|---|



21