OpenCharities

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

2020-12-31-accounts

Roman Catholic Purposes In Connection with The Congregation of the Sisters of St Clare In Ireland

(The Sisters of St Clare Charitable Trust)

Annual Report and Accounts

31 December 2020

Charity Registration Number 0246649

Contents

Reports

Reports
Reference and administrative details
of the charity, its trustees and advisers 1
Trustees’ report 3
Independent auditor’s report 10
Accounts
Statement of financial activities 15
Balance sheet 16
Statement of cash flows 17
Principal accounting policies 18
Notes to the accounts 22

The Sisters of St Clare Charitable Trust

Reference and administrative details of the charity, its trustees and advisers 31 December 2020

Trustees Sister Anne Kelly
Sister Mark Hollywood
Sister Margaret McElgunn
Sister Maureen O’Dea
Sister Kathleen Moore
The trustees are incorporated under the Charities
Act 2011
Principal address St Clare’s Convent
15 Glyndebourne Gardens
Corby
Northamptonshire
NN18 0QA
Abbess General Sister Anne Kelly
Charity registration number 0246649
Auditor Buzzacott LLP
130 Wood Street
London
EC2V 6DL
Bankers Yorkshire Bank
6 Market Street
Kettering
Northamptonshire
NN16 OEA
National Westminster Bank plc
24 New Town Gardens
Kirkby
Liverpool
L32 8RU
National Westminster Bank plc
146 Widnes Road
Widnes
Cheshire
WA8 6BB

The Sisters of St Clare Charitable Trust 1

Reference and administrative details of the charity, its trustees and advisers 31 December 2020

Solicitors Stone King LLP 13 Queen Square Bath BA1 2HJ King-Davies & Partners Lloyds Bank Chambers 18 Talbot Street Maesteg Bridgend CF34 9BP

The Sisters of St Clare Charitable Trust 2

Trustees’ report 31 December 2020

The trustees present their statutory report together with the accounts of the charity for Roman Catholic Purposes in Connection with the Congregation of the Sisters of St Clare in Ireland (also known as The Sisters of St Clare Charitable Trust) for the year ended 31 December 2020.

Under a Uniting Direction issued by the Charity Commission under section 12(1) of the Charities Act 2011, this charity (i.e. Roman Catholic Purposes In Connection With The Congregation of the Sisters of St Clare In Ireland (Charity Registration Number 246649)) is the reporting charity and its related charity, Roman Catholic Purposes In Connection With The Congregation of the Sisters of St Clare In Ireland – The Porthcawl Charity (Charity Registration Number 246649-1) is the linked charity.

The effect of the Uniting Direction for accountancy and reporting purposes is that a single set of accounts is presented for the two charities combined. Under the Uniting Direction, both charities continue to exist as independent entities in all other respects.

The accounts have been prepared in accordance with the accounting policies set out on pages 18 to 21 of the attached accounts and comply with the charities’ trust deeds, applicable laws, applicable United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and the requirements of 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 United Kingdom and Republic of Ireland (FRS 102).

Introduction

The Congregation of the Sisters of St Clare is an international Roman Catholic Religious Congregation divided into a number of separate regions. The Congregation’s Generalate is based in Ireland.

The accounts accompanying this report are the accounts of the charitable trusts on which certain of the assets of the English Region are held and through which its affairs are administered.

Principal aims, activities and policies

Activities and specific objectives

When setting the objectives and planning the work of the charity and its related charity for the year, and when encouraging the work of individual members of the Congregation, the trustees have given careful consideration to the Charity Commission’s general guidance on public benefit.

The general objective of the charity and its related charity is to support the advancement of the charitable ministries carried on by the members of the Congregation for the advancement of the Roman Catholic religion.

The Sisters of St Clare Charitable Trust 3

Trustees’ report 31 December 2020

Principal aims, activities and policies (continued)

Activities and specific objectives (continued)

The activities of the charity and its related charity can be divided into two principal areas:

To care for the members throughout their lives with the Congregation.

Protection of children and vulnerable adults

Along with all other organisations who serve in the community, the trustees recognise the absolute necessity of ensuring the protection and safety of all those the charity and its related charity serve. This means that all sisters who are in any kind of ministry in Great Britain have to obtain clearance from the Disclosure and Barring Service. The trustees are committed to implementing all policies and procedures of the Catholic Safeguarding Advisory Service (CSAS).

Fundraising policy

The charity aims to achieve best practice in the way in which it communicates with donors and other supporters. The charity takes care with both the tone of its communications and the accuracy of its data to minimise the pressures on supporters. It applies best practice to protect supporters’ data and never sells data, it never swaps data and ensures that communication preferences can be changed at any time. The charity manages its own fundraising activities and does not employ the services of professional fundraisers. The charity undertakes to react to and investigate any complaints regarding its fundraising activities and to learn from them and improve its service. During the year, the charity received no complaints about its fundraising activities.

Achievements and performance

Review of activities

Throughout 2020 the Covid-19 pandemic has changed the world as we know it. The pandemic has not only affected social interaction but has had a significant economic impact at all levels. These have been outside of the charity’s control.

The trustees have considered the long and short term impact of Covid-19 on the charity.

Due to social distancing and the message to “stay at home” the work of the charity has faced challenging times.

The Sisters of St Clare Charitable Trust 4

Trustees’ report 31 December 2020

Achievements and performance (continued)

Review of activities (continued)

Covid-19 has meant that the Sisters’ normal apostolic activities have had to find new shape and adapt. As a result of the social distancing rules, whilst largely remaining in lockdown, the Sisters have tried to find new ways of working and supporting those with whom they work.

During the year the sisters have been engaged in the following ministries involving children. Priority is given to children who are disadvantaged, which includes not only education, but the provision of food and clothing, when necessary.

In addition, during the year the Sisters have worked with adults in many areas, always trying to promote peace and justice. Examples of the work done include:

The Sisters of St Clare Charitable Trust 5

Trustees’ report 31 December 2020

Financial review of the year

A summary of the year’s results can be found on page 15 of the attached accounts.

Income for the year totalled £345,761 (2019 – £140,235). The main recurring source of income continues to be salaries and pensions of individual religious received under Gift Aid or Deed of Covenant which amounted to £121,550 (2019 – £123,363). Contributions from the Congregation’s Generalate in Ireland were £214,807 (2019 – £9,360). In the year to 31 December 2020, this amount also included a contribution towards the purchase of a property which totalled £205,807. General donations amounted to £3,192 (2019 – £2,084) and income from other sources amounted to £6,212 (2019 – £5,428).

Expenditure amounted to £144,142 in 2020 (2019 – £143,063) and includes £60,000 (2019 – £54,000) being contributions to the Congregation’s Generalate in Ireland. The monies will be used for the support of the sisters including those returning from overseas missions.

Net income and the increase in funds for the year was £201,619 (2019 – net decrease and decrease in funds of £2,828).

The income and expenditure for the year to 31 December 2020 and the year to 31 December 2019 all relates to the reporting charity. The linked charity was dormant throughout both years.

Reserves policy

Following the disposal by the linked charity of the Porthcawl property in 2017 and the transfer of the sisters, the linked charity became dormant and does not require reserves.

The trustees of the reporting charity have examined the requirement for free reserves i.e. those unrestricted funds not invested in tangible fixed assets, designated for specific purposes or otherwise committed. The trustees consider that, given the nature of the charity’s work, the level of free reserves should be approximately equal to between two- and six-months’ ongoing expenditure (excluding donations).

Financial position

As the linked charity is now dormant, the financial position at 31 December 2020 below is in relation to the reporting charity only.

The balance sheet shows reserves of the reporting charity of £421,083 (2019 – £219,464).

£389,443 (2019 – £186,236) of the total reserves represents the value of the tangible fixed assets of the charity and is described on the balance sheet as the charity’s tangible fixed assets fund. A decision was made to differentiate these from the general funds and other designated funds in recognition of the fact that the tangible fixed assets are used in the dayto-day work of the charity. The fund value, therefore, cannot be realised with ease or without jeopardising the ongoing work of the reporting charity.

The Sisters of St Clare Charitable Trust 6

Trustees’ report 31 December 2020

Financial review of the year (continued)

Financial position (continued)

Free reserves available to support the work of the sisters in the future are those shown on the balance sheet as general funds and, at 31 December 2020, equated to £31,640 (2019 – £33,228) for the reporting charity. At the date of the balance sheet, free reserves were within the amount inherent in the policy.

This level of reserves is deemed appropriate, and the trustees are content that the charity is a going concern.

Future plans

The trustees are looking at the future needs of the members supported by the reporting charity to ensure that each member is fully supported in her ministry while able to continue to serve the community.

Whilst acknowledging the challenges presented by Covid-19 (see above), the trustees do not anticipate any significant change to the charity and its other activities during 2020. It is the intention of the trustees to continue to meet the charity’s objectives of caring for members of the Congregation and to support the charitable work of the sisters for the foreseeable future.

Structure, governance and management

The Sisters of St Clare Charitable Trust i.e. the reporting charity is governed by a trust deed dated 10 December 1965 and is registered under the Charities Act 2011, Charity Registration No. 0246649.

Organisation

In terms of Canon law, the Congregation is governed by the Abbess General and her General Council. They are elected at a General Chapter or meeting of delegates elected by all the Sisters of the Congregation. Members of the General Council are chosen for their personal qualities, their understanding and experience of the ministries of the sisters throughout the Congregation, and to secure a good skills mix.

In terms of Civil law, the reporting charity is governed by a trust deed dated 10 December 1965 and is registered under the Charities Act 2011, Charity Registration No. 0246649. The trustees are appointed by the members of the Congregation. The trustees who served during the year are shown on page 1.

The trustees are incorporated under the provisions of the Charities Act 2011.

The trustees are ultimately responsible for the policies, activities and assets of the charity and also of the related charity. They meet regularly to review developments with regard to the charities or their activities and make any important decisions. The day-to-day management of the charities’ activities and the implementation of policies is delegated to the appropriate members of the Congregation. Management reporting lines are clearly defined, and the trustees receive regular reports and training as considered necessary to enable them to fulfil their responsibilities.

The Sisters of St Clare Charitable Trust 7

Trustees’ report 31 December 2020

Structure, governance and management (continued)

Key management personnel

The trustees consider that they comprise the key management in charge of directing and controlling, running and operating the charities.

However, as noted above, the day-to-day management is delegated to individual members within each community. All trustees and the individual members of a community are members of the Congregation and, whilst their living and personal expenses are borne by the charities, they receive no remuneration or reimbursement of expenses in connection with their duties as trustees or work as key management.

Statement of trustees’ responsibilities

The trustees are responsible for preparing the trustees' report and the accounts in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England and Wales requires the trustees to prepare accounts for each financial year which give a true and fair view of the state of affairs of the charity and its linked charity and of the income and expenditure of the charity and its linked charity for that period. In preparing these accounts, the trustees are required to:

The trustees are responsible for keeping proper accounting records that are sufficient to show and explain the transactions of the charity and its linked charity and disclose with reasonable accuracy at any time the financial position of the charities and enable them to ensure that the accounts comply with the Charities Act 2011 and the related regulations and the provisions of the charities’ trust deeds. They are also responsible for safeguarding the assets of the charities and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The Sisters of St Clare Charitable Trust 8

Trustees’ report 31 December 2020

Structure, governance and management (continued)

Risk management

In addition to acknowledging the challenges presented by the Covid-19 pandemic, the trustees have assessed the major risks to which the charity and its related charity are exposed. The trustees believe that by monitoring reserve levels, by ensuring controls exist over key financial systems, and by examining the operational risks faced by the charity and its related charity, they have established effective systems to mitigate those risks.

The trustees are aware that there is both a moral and legal obligation to care for the older members. None of the sisters have resources of their own as all earnings, pensions and other income have been donated to the charity under a Gift Aid compliant Deed of Covenant. As the age profile increases, so too does the need to provide care for the sisters. Key elements of the management of this risk are: (a) ensuring that there are sufficient financial resources to finance this care both now and, in the years, ahead by ensuring that funds are available in the future; and (b) ensuring that the sisters are accommodated in properties that are suitable for their needs and also with other members of the Congregation where the sisters receive the necessary care and support.

Signed on behalf of the trustees

Sister Anne Kelly

Trustee

Approved by the trustees on: 4 October 2021

The Sisters of St Clare Charitable Trust 9

Independent auditor’s report 31 December 2020

Independent auditor’s report to the trustees of The Sisters of St Clare Charitable Trust

Opinion

We have audited the accounts of The Sisters of St Clare Charitable Trust (Charity Registration No 246649) which in accordance with the terms of a Uniting Direction issued by the Charity Commission under section 12(1) of the Charities Act 2011, are combined with those of The Sisters of St Clare Charitable Trust (Charity Registration No 246649-1). The accounts, which are for the year ended 31 December 2020, comprise the statement of financial activities, the balance sheet, the statement of cash flows, the principal accounting policies and the notes to the accounts. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the accounts:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor’s responsibilities for the audit of the accounts section of our report. We are independent of the charities in accordance with the ethical requirements that are relevant to our audit of the accounts in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

Reporting charity

In auditing the accounts, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the accounts is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity’s ability to continue as a going concern for a period of at least twelve months from when the accounts are authorised for issue.

The Sisters of St Clare Charitable Trust 10

Independent auditor’s report 31 December 2020

Conclusions relating to going concern (continued)

Reporting charity (continued)

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Linked charity

At 31 December 2020, the linked charity had no assets and no liabilities. Since that date it has remained dormant and will continue to do so until such time as the trustees decide to apply for it to be removed from the Central Register of Charities maintained by the Charity Commission for England and Wales. This may or may not be within twelve months of the date on which the accounts are authorised for issue. Any such decision will not have any impact on the accounts. Our opinion is not modified in respect to this matter.

Other information

The trustees are responsible for the other information. The other information comprises the information included in the Annual Report and Accounts, other than the accounts and our auditor’s report thereon. Our opinion on the accounts does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the accounts, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the accounts or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the accounts or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities Act 2011 requires us to report to you if, in our opinion:

The Sisters of St Clare Charitable Trust 11

Independent auditor’s report 31 December 2020

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement, the trustees are responsible for the preparation of the accounts and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of accounts that are free from material misstatement, whether due to fraud or error.

In preparing the accounts, the trustees are responsible for assessing each charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the accounts

Our objectives are to obtain reasonable assurance about whether the accounts as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these accounts.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

How the audit was considered capable of detecting irregularities including fraud

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

The Sisters of St Clare Charitable Trust 12

Independent auditor’s report 31 December 2020

Auditor’s responsibilities for the audit of the accounts (continued)

We assessed the susceptibility of the charities’ accounts to material misstatement, including obtaining an understanding of how fraud might occur, by:

To address the risk of fraud through management bias and override of controls, we:

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the trustees and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

We did not identify any irregularities, including fraud.

A further description of our responsibilities for the audit of the accounts is located on the Financial Reporting Council’s website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

The Sisters of St Clare Charitable Trust 13

Independent auditor’s report 31 December 2020

Use of our report

This report is made solely to the charities’ trustees, as a body, in accordance with section 145 of the Charities Act 2011 and with regulations made under section 154 of that Act. Our audit work has been undertaken so that we might state to the charities’ trustees those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the reporting and linked charity and their trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Buzzacott LLP Statutory Auditor 130 Wood Street London EC2V 6DL

8 October 2021

Buzzacott LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006

The Sisters of St Clare Charitable Trust 14

Statement of financial activities Year to 31 December 2020

Notes Unrestricted funds Unrestricted funds

2020
£		 2019
£
Income from:
Donations
1
Other sources
2
Total income
Expenditure on:
Charitable expenditure
. Support of members of the Congregation and their ministry
3
. Donations
4
Total expenditure
Net income (expenditure) and net movement in funds
6
Reconciliation of funds:
Balances brought forward at 1 January 2020
Balances carried forward at 31 December 2020
339,549

6,212		 134,807
5,428
345,761 140,235

81,631

62,511		 86,616
56,447
144,142 143,063

201,619
219,464		 (2,828)
222,292
421,083 219,464

All recognised gains and losses have been included in the above statement of financial activities and hence a separate statement of total recognised gains and losses has not been prepared.

All activities of the reporting charity derived from continuing operations during the above two financial periods.

The Sisters of St Clare Charitable Trust 15

Balance sheet 31 December 2020

Notes
2020
£		 2020
£		 2019
£		 2019
£
Fixed assets
Tangible assets
9
Current assets
Cash at bank and in hand
Current liabilities
Creditors: amounts falling due
within one year
10
Net current assets
Total net assets
Represented by:
Funds and reserves
. Reporting charity unrestricted
funds
.. Tangible fixed assets fund
11
.. General fund
40,840

(9,200)		 389,443
31,640		 43,385
(10,157)		 186,236
33,228
421,083 219,464
389,443
31,640		 186,236
33,228
421,083 219,464

Approved by the trustees and signed on their behalf by:

Sister Anne Kelly

Trustee

Approved on: 4 October 2021

The Sisters of St Clare Charitable Trust 16

Statement of cash flows Year to 31 December 2020

Notes 2020
£		 2019
£
Cash flows from operating activities:
Net cash provided by operating activities
A
Cash flows from investing activities:
Purchase of tangible fixed assets
Net cash used in investing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents at 1 January 2020
B
Cash and cash equivalents at 31 December 2020
B
**204,262 **		 579
(206,807) (1,672)
(206,807) (1,672)
(2,545)

43,385		 (1,093)
44,478

40,840		 43,385

Notes to the statement of cash flows for the year to 31 December 2020

A Reconciliation of net income (expenditure) and movement in funds to net cash provided by operating activities

operating activities
B 2020
£		 2019
£
Net income (expenditure) and movement in funds (as per the
statement of financial activities)
Adjustments for:
Depreciation charge
Decrease in creditors
**Net cash provided by operating activities **
201,619
3,600
**(957) **		 (2,828)
4,867
(1,460)
204,262 579
Analysis of cash and cash equivalents 2020
£		 2019
£
Total cash and cash equivalents:Cash at bank and in hand 40,840 43,385

The Sisters of St Clare Charitable Trust 17

Principal accounting policies 31 December 2020

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

These accounts have been prepared for the year to 31 December 2020 with comparative information provided in respect to the year to 31 December 2019.

The accounts have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant accounting policies below or the notes to these accounts.

The accounts combine, on a line-by-line basis, the results of the charity and its linked or related charity (see note 15), made up to the balance sheet date.

The activities of the linked charity, The Sisters of St Clare Charitable Trust (Charity Registration No 246649-1), ceased during 2017 following the sale of the property in Porthcawl. Further information on the cessation of activities by the linked charity is provided in the notes to the accounts. Following the disposal of the linked charity’s property in 2017, its net assets were donated to the Generalate of the Congregation. The objectives of the Generalate are consistent with the objectives of the linked charity and the funds will be applied towards the support of the sisters, including those returning from overseas missions.

The accounts 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 United Kingdom and Republic of Ireland (Charities SORP FRS 102) issued on 16 July 2014, the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.

Both the reporting charity and its linked charity constitute public benefit entities as defined by FRS 102.

The accounts are presented in sterling and are rounded to the nearest pound.

Critical accounting estimates and areas of judgement

Preparation of the accounts requires the trustees to make significant judgements and estimates.

The items in the accounts where these judgements and estimates have been made include:

The Sisters of St Clare Charitable Trust 18

Principal accounting policies 31 December 2020

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.

Linked charity

At 31 December 2020, the linked charity had no assets and no liabilities. Since 31 December 2017 it has remained dormant and will continue to do so until such time as a decision is made to remove it from the Register of Charities.

Reporting charity

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 at least 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.

Income recognition

Income is recognised in the period in which the charities have entitlement to the income, the amount can be measured reliably, and it is probable that the income will be received.

Income comprises donations and miscellaneous income. Miscellaneous income includes income from charitable activities such as contributions from visitors and other sundry income.

Donations, including salaries and pensions of individual religious received under Gift Aid or deed of covenant, are recognised when the charities have confirmation of both the amount and settlement date. In the event of donations pledged but not received, the amount is accrued for where the receipt is considered probable. In the event that a donation is subject to conditions that require a level of performance before either charity is entitled to the funds, the income is deferred and not recognised until either those conditions are fully met, or the fulfilment of those conditions is wholly within the control of the relevant charity, and it is probably that those conditions will be fulfilled in the reporting period.

Other income is measured at fair value and accounted for on an accruals basis.

In accordance with the Charities SORP FRS 102 volunteer time is not recognised.

Expenditure recognition

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing either charity to make a payment to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably.

The Sisters of St Clare Charitable Trust 19

Principal accounting policies 31 December 2020

Expenditure recognition (continued)

All expenditure is accounted for on an accruals basis. All expenses are allocated to the applicable expenditure headings. The majority of expenditure is directly attributable and any apportionment between headings is negligible.

Expenditure on charitable activities includes all costs associated with furthering the charitable purposes of the relevant charity through the provision of its charitable activities and includes:

Expenditure on the support of members of the Congregation and their ministry. Such expenditure enables the members to carry out the work of the relevant charity in the areas of the advancement of the Roman Catholic faith, the relief of poverty and supporting the other charitable activities of members of the Congregation.

Grants and donations to support the Congregation’s own work overseas and to support other charitable organisations with objectives consistent with those of the relevant charity.

All expenditure is stated inclusive of irrecoverable VAT.

Support and governance costs

Support costs represent indirect charitable expenditure. In order to carry out the primary purposes of the charities it is necessary to provide support in the form of financial procedures, provision of office services and equipment and professional fees.

Governance costs comprise the costs involving the public accountability of the relevant charity (including audit costs) and costs in respect to its compliance with regulation and good practice.

All expenditure on support and governance is allocated to the charitable activities of care of members of the community and enabling their ministry as any costs in relation to provision of donations and grants or raising funds is considered to be minimal.

Tangible fixed assets

All assets costing more than £1,000 and with an expected useful life exceeding one year are capitalised.

The Sisters of St Clare Charitable Trust 20

Principal accounting policies 31 December 2020

Debtors

Debtors are recognised at their settlement amount, less any provision for nonrecoverability. Prepayments are valued at the amount prepaid. They have been discounted to the present value of the future cash receipt where such discounting is material.

Cash at bank and in hand

Cash at bank and in hand represents such accounts and instruments that are available on demand or have a maturity of less than three months from the date of acquisition.

Creditors and provisions

Creditors and provisions are recognised when there is an obligation at the balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Creditors and provisions are recognised at the amount the charity anticipates it will pay to settle the debt. Creditors are discounted to the present value of the future cash payment where such discounting is material.

Fund structure

Each charity’s funds comprise unrestricted income funds which are available for application towards that charity’s objectives. Within such funds the trustees have identified those non-liquid funds represented by tangible fixed assets.

Services provided by members of the Congregation

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

The Sisters of St Clare Charitable Trust 21

Notes to the accounts 31 December 2020

1 Income from: Donations and legacies

Income from: Donations and legacies
2020
£		 2019
£
Salaries and pensions of individual religious received under Gift Aid or Deed
of Covenant
Contributions from the Congregation’s Generalate in Ireland (note 15)
General donations		 121,550
214,807
3,192		 123,363
9,360
2,084
339,549 134,807

Contributions from the Congregation’s Generalate in 2020 include £205,807 towards the purchase of a freehold property.

2 Income from: Other sources

Income from: Other sources
2020
£		 2019
£
Fuel allowance
Miscellaneous		 300
5,912		 300
5,128
6,212 5,428

3 Expenditure on: Support of members of the Congregation and their ministry

2020
£		 2019
£
Premises
Sisters’ living and personal expenses
Education, training and spiritual renewal
Support costs
. General administration and support
. Governance costs (note 6)		 18,778
44,511
3,293
5,649
9,400		 19,790
49,491
4,725
4,710
7,900
81,631 86,616

4 Expenditure on: Donations

The charities make donations principally in support of the overseas work of the Congregation of the Sisters of St Clare and other causes which further the Christian faith and alleviate poverty.

The donations paid during the year were as follows:

The donations paid during the year were as follows:
2020
£		 2019
£
Contributions to the Congregation’s Generalate in Ireland (note 16)
Donations to institutions
Donations to individuals		 60,000
785
1,726		 54,000
656
1,791
62,511 56,447

Donations to individuals comprise a number of small monetary gifts aimed at relieving poverty by enabling the recipients to purchase food, clothing, etc.

5 Governance costs

Governance costs
2020
£		 2019
£
Audit fees 9,400 7,900

The Sisters of St Clare Charitable Trust 22

Notes to the accounts 31 December 2020

6 Net income (expenditure) and movement in funds

This is stated after charging (crediting):

Net income (expenditure) and movement in funds
This is stated after charging (crediting):
2020
£		 2019
£
Staff costs (note 7)
Auditor’s remuneration (including VAT)
. Statutory audit services
.. Current year
.. Prior year
Depreciation		 2,832
9,200
200
3,600		 2,022
8,800
(900)
4,867

7 Staff costs, key management personnel and trustees’ remuneration

The reporting charity incurred staff costs of £2,832 during the year (2019 – £2,022) in respect to one individual (2019 – one).

Staff costs relate to support of members of the Congregation. No employee earned £60,000 per annum or more (including taxable benefits) during the year (2019 – none).

As members of the Congregation, certain of the trustees’ living expenses during the year were borne by the charities. No trustee received any remuneration or reimbursement of expenses in connection with their duties as trustees during the year (2019 - £nil).

The members of the individual communities who are responsible for the implementation of the trustees’ policies at community level are also members of the Congregation and their living expenses during the year were borne by the charity. The members did not receive any remuneration or reimbursement of expenses in connection with their duties during 2020 or 2019.

8 Taxation

Both the reporting charity and the linked charity are registered charities and, therefore, are not liable to income tax or corporation tax on income derived from their charitable activities, as it falls within the various exemptions available to registered charities.

The Sisters of St Clare Charitable Trust 23

Notes to the accounts 31 December 2020

9 Tangible fixed assets

Tangible fixed assets
Freehold
land and
buildings:
non-specialised
£
Motor
vehicles
£
Furniture
and
equipment
£		 Total
£
At cost
At 1 January 2020
Additions
At
Depreciation
At 1 January 2020
Charge in the year
At 31 December 2020
Net book values
At 31 December 2020
At 31 December 2019		 180,000
206,807		 33,378
—		 3,029
—		 216,407
206,807
386,807 33,378 3,029 423,214
—
—		 30,081
3,297		 90
303		 30,171
3,600
— 33,378 393 33,771
386,807 — 2,636 389,443
180,000 3,297 2,939 186,236

As explained under principal accounting policies, the book value of the non-specialised land and buildings shown above is stated at historical cost. As permitted by FRS 102, both charities have continued to adopt a policy of not revaluing their tangible fixed assets.

It is likely that there are material differences between the open market values of each charity’s non-specialised land and buildings and their book values. The amount of such differences cannot be ascertained without incurring significant costs, which, in the opinion of the trustees, is not justified in terms of the benefit to the users of the accounts.

Other tangible fixed assets are stated at cost.

10 Creditors: amounts falling due within one year

10 Creditors: amounts falling due within one year
11 2020
£		 2019
£
Accruals and other creditors 9,200 10,157
Tangible fixed assets fund 2020
£		 2019
£
At 1 January
Net movement in year
At 31 December		 186,236
203,207		 188,074
(1,838)
389,443 186,236

The tangible fixed assets funds represent the net book value of each charity’s tangible fixed assets. A decision was made to separate these funds from the general funds of each charity in recognition of the fact that the tangible fixed assets are essential to the day-today work of each charity and as such their value should not be regarded as funds that would be realisable with ease, in order to meet future contingencies.

The Sisters of St Clare Charitable Trust 24

Notes to the accounts 31 December 2020

12 Analysis of net assets between the reporting charity and the linked charity

2020
£		 2019
£
Fund balances at 31 December are represented by:
Tangible fixed assets
Cash at bank and in hand
Creditors: amounts falling due within one year
Net current assets
Total net assets		 389,443 186,236
40,840
(9,200)		 43,385
(10,157)
31,640 33,228
421,083 219,464

There are no unrealised gains included in the assets of the reporting or the linked charity.

13 Ultimate control

The charities, both of which are constituted as a trust, were controlled throughout the period by The Congregation of the Sisters of St Clare by virtue of the fact that the Abbess General of the Congregation and her Councillors comprise the trustees. The English Region does not hold any assets, incur liabilities or enter into any transactions in its own right. Assets and liabilities of the English Region are vested in the trustees of the charities, who undertake all transactions entered into in the course of the Region’s charitable activities.

14 Uniting direction

Following an application to the Charity Commission, the reporting and linked charities were issued with a Uniting Direction under section 12(1) of the Charities Act 2011. Roman Catholic Purposes In Connection With The Congregation of the Sisters of St Clare In Ireland (Charity Registration Number 246649) is the reporting charity and its related charity, Roman Catholic Purposes In Connection With The Congregation of the Sisters of St Clare In Ireland – The Porthcawl Charity (Charity Registration Number 246649-1) is the linked charity.

The effect of the Uniting Direction for accountancy and reporting purposes is that a single set of accounts is presented for the two charities combined. Under the Uniting Direction, both charities continue to exist as independent entities in all other respects.

As previously noted, the linked charity is now dormant and will remain as such until such time as trustees decide to apply to the Charity Commission to have the linked charity removed from the Register of Charities.

The Sisters of St Clare Charitable Trust 25

Notes to the accounts 31 December 2020

15 Connected charity and related party transactions

The reporting charity and the linked charity (note 14) are connected to the Congregation’s Generalate (which has charitable status in the Republic of Ireland) as a result of the charities’ trustees also being trustees of the Irish charity.

During the year the following transactions took place between the reporting charity and the Irish charity:

Irish charity:
2020
£		 2019
£
Transactions during the year
Settlement of professional fees and expenses by the Generalate on
behalf of the charities (note 1)
Contribution received toward property purchase (note 1)
Contributionspaid(note 4)		 (9,000)
(205,807)
60,000		 (9,360)
—
54,000

There were no related party transactions between the linked charity and the Congregation’s Generalate.

There were no other related party transactions during the year requiring disclosure (2019 – none).

The Sisters of St Clare Charitable Trust 26