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2021-10-31-accounts

HCPT (Hosanna House and Children’s Pilgrimage Trust)

(Company Limited by Guarantee)

Report and Financial Statements for the year ended 31 October 2021

Company Number: 1095198 Charity Number (England & Wales): 281074 Charity Number (Scotland): SC043743

HCPT is a volunteer-based charitable organisation founded in response to Our Lady’s invitation to go on pilgrimage to Lourdes. Our aim is to enable those who may need help, especially the young, to experience pilgrimage, and we do that in small caring groups, seeking to share with joy, the gift of God’s love.

HCPT (Hosanna House and Children’s Pilgrimage Trust)

Trustees’ Report

For the year ended 31 October 2021

Chair’s Report

I started the last Chair’s Report with a reflection on what had been an unprecedented year, due to the impact of the COVID pandemic. Fast forward a year and what felt unprecedented in 2020 became almost a standard part of our lives during 2021. That was unfortunately the case again for HCPT, however this time we were able to make a number of early decisions enabling the teams to better prepare for another virtual pilgrimage season across both Easter and Summer.

For 2021, we again made the decision as a Board and as a team to invest our resources and time in continuing to deliver virtual pilgrimage activities, drive fundraising and engaging our supporters, as well as continuing to transform and improve our organisation, enhance our services and position ourselves to emerge from the pandemic stronger than ever.

We watched with huge gratitude as our organisation came together time and again to design, create and deliver wonderful pilgrimage activities focussed on our beneficiaries, volunteers, and supporters.

Highlights for me included: our Leadership Conference, a mix of brilliant learning, listening, and consulting with the leaders delivering our impact across the UK and beyond; our powerful Carol service at Christmas, brilliantly transitioned to an online activity, yet with the same power to move people, and this time available around the globe; our fully accessible “Lourdes Challenge” virtual cycle to Lourdes, opened up to everyone to do whatever they could to support HCPT - raising money, awareness and most importantly supporting and connecting with one another; and finally, our wonderful Easter pilgrimage, for the first time a fortnight of celebration and activity with celebrations continuing through HCPTV throughout our Summer pilgrimage season. All in, a year of more firsts for us, delivering different and in many cases wider impacts and outcomes for our beneficiaries, volunteers, and supporters.

However, in the midst of that joy and celebration we experienced difficult moments, challenges, and loss, increased in a year where personal and professional hopes and plans were made and then dashed as the pandemic peaked and waned. I am truly thankful to our HCPT community for coming together to support, care for, listen to, and be there for those who needed it most. It’s what makes HCPT the amazing community it is.

As I look forward to 2022, I see another year of challenge but most importantly, opportunity. We have learned much about ourselves, our organisation and how innovative methods thrust upon us have enabled us to engage those who were outside of our reach under the previous ‘normal’. 2022 will (likely) see us restart our wonderful pilgrimages to Lourdes, so our opportunity is how we now combine those innovative methods into our physical pilgrimages to provide a truly accessible and available pilgrimage experience to all those who want to be part of our organisation. Making that a true success will require us to welcome new thinking, new energy, and new opinions. We will continue to grow our willingness and ability to listen and consult on our direction, impact, and outcomes.

As ever, on behalf of the Board and staff, I offer our most sincere thanks to the whole HCPT community for the ongoing dedication, passion, joy, and support you continue to offer and provide to all those around you. God bless, keep well, and continue to share your gifts.

Ian O’Brien

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HCPT (Hosanna House and Children’s Pilgrimage Trust)

Trustees’ Report

For the year ended 31 October 2021

The trustees, who are also directors of the charitable company, are pleased to present their annual Trustees’ Report together with the consolidated financial statements of the charity and its subsidiaries for the year ending 31 October 2021.

OBJECTIVES AND ACTIVITIES

The objects of HCPT are in particular, but not exclusively, the taking of, or assistance in taking of, disabled children and adults on pilgrimage to Lourdes or such other place of pilgrimage as the charity may in its absolute discretion decide with the purpose of enriching the Roman Catholic faith and the relief of sickness and suffering.

The activities currently carried out for the public benefit by HCPT can be summarised as follows:

The charity relies on approximately 3,800 volunteers to accompany our assisted children and adults on our week-long Summer and Easter pilgrimages to Lourdes. In addition, they give their time beforehand in group pilgrimage preparation, fundraising, training and administration. These volunteers are supported by numerous others who do not travel to Lourdes but assist in preparation and fundraising.

In arranging our pilgrimages and all our charitable activities we have regard for the general guidance on public benefit issued by the Charity Commission, and by the Office of the Scottish Charity Regulator.

ACHIEVEMENTS AND PERFORMANCE

Key Events

In more normal times, HCPT’s annual calendar of activity would revolve around a large-scale children’s pilgrimage to Lourdes each Easter, followed by a season of weekly pilgrimages to Hosanna House, HCPT’s retreat centre in Bartrès on the outskirts of Lourdes, throughout the summer. These remain the core of HCPT’s activity by default, and will be resumed as soon as it is safe and practical to do so.

The 2020/21 Financial Year began against a background of a year in which neither the Easter children’s pilgrimage nor the Summer season had taken place, but with a vibrant programme of virtual pilgrimage events delivered across Easter and Summer instead, and very well received. The year also began in the knowledge that we as an organisation had taken the decision to postpone the Easter children’s pilgrimage, with the intention that we would be planning to conduct Children’s pilgrimages in both July and October 2021. We had also made the decision to delay the start of the 2021 Summer season until July 2021. We announced this to our organisation and our supporters in September 2020.

Through close management and input from our management executive, we regrettably had to make the decision to cancel these delayed plans, as the COVID pandemic continued to pose a severe risk to our beneficiaries, volunteers and staff, as well as drive lock-downs and restrict international travel. Unfortunately, due to our determination to do all in our power to be ready to undertake pilgrimages, considerable time and

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HCPT (Hosanna House and Children’s Pilgrimage Trust)

Trustees’ Report

For the year ended 31 October 2021

effort was taken up with the associated consultation, consideration, planning and communication between our groups, trustees and staff.

What did therefore result, was a second year of inspiring, accessible and wide-ranging virtual activities, with virtual techniques often learned in haste in FY19/20, honed and finessed to achieve even greater outcomes. In addition to these wonderful events, we also focussed our teams on continuing to deliver on critical strategic enablers, that are designed to enable us to come out of the pandemic better prepared, enhance our impact and increase the support we can provide to volunteers and beneficiaries.

The first major event of the financial year was our HCPT Conference on 14 November 2020. A key element of our strategic dialogue with our volunteer leadership teams, this is held every three years, with the 2020 conference focussing on sharing our understanding and development work on behaviour management and support techniques, as a major milestone in a wider project in that field. Early planning led to the future proofed decision that the event would be hosted by Warwick University, moving over time from an in-situ approach, via a hybrid model to fully virtual delivery. The result was a very complex programme, with key note speaker, plenary and syndicate sessions which held the attention of nearly 200 of our senior volunteers for a full working day, combining professional development, maintaining our community and demonstrating that our thoughts were focussed firmly on continuing pilgrimage together.

A series of online Advent prayers then led to our next major event, which was our biennial Carol Service on 9 December. The usual model, which has for many years taken place in Westminster Cathedral, would normally blend readings and prayers offered by volunteers with carols performed by a number of schools. The requirement for 2020 was to move to a virtual model, to protect our supporters, volunteers and beneficiaries and align to government restrictions. However, the virtual approach allowed all this, and the benefit of a much wider international participation, attracting over 5,000 viewers, peaking during the event at 175.

The organisation’s decision, taken in September 2020, not to conduct a 2021 Easter Children’s Pilgrimage afforded a much longer planning and preparation time to create an even more meaningful and impactful virtual activity, focussed on our beneficiaries and volunteers, at the Church’s great celebration of Easter.

This began with our first HCPT International Day of Prayer on the Feast of Our Lady of Lourdes on 11 February 2021, with ten activities running between 06.00 and 20.00 and including our first live event broadcasts during the day from Brentwood, Glasgow and Lourdes. The events generated nearly 11,000 views, with a total of 250 hours of content viewed.

In response comments received included the following:

“Well done everyone involved. Great to have this connection to Lourdes and all our wonderful friends on this very special day.”

“Thank you for a day of happiness, prayers, singing, and smiles when I thought of all the friends l have made through the trust. Here's to making new memories and enjoying the love Our Lady of Lourdes shows and gives us all soon. Take care and stay safe. God bless and thank you once again to the team at HQ who put this be special day together.”

A schedule of Holy Week daily virtual reflections (attracting nearly 6,000 views) led to our 2021 Virtual Easter Pilgrimage, offering a very full schedule consisting of 65 events throughout the week. These attracted over 45,000 views with the content viewed for a total of 1,000 hours. Of particular note was the way those engaging used the opportunity to spread the word, with 25% of Facebook posts seen by individuals who were not following HCPT, through over 400 separate shares of the content. An unexpected highlight was our virtual “Prayers on the Stairs” every evening, which offered volunteers and beneficiaries the chance to join together in a wonderful, fully interactive online liturgy.

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HCPT (Hosanna House and Children’s Pilgrimage Trust)

Trustees’ Report

For the year ended 31 October 2021

We are not sure whether HCPT can claim to have coined the phrase “Virtual Pilgrimage,” but certainly to our knowledge we had not encountered its use before our own event at Easter 2020. Such events became quite widespread during the year, leading up to the Shrine of Lourdes’s own event in July 2021, to which HCPT was invited to contribute, both in the form of a recorded interview with our CEO and a face-to-face interview by our Manager of Hosanna House. We also penned an article published in advance in The Tablet newspaper, reflecting on our experience of and our plans for the Virtual Pilgrimage as a concept.

Throughout the pilgrimage year, across Easter and Summer, we maintained the drumbeat of fortnightly HCPTV episodes, including HCPTV’s first outside broadcast from the Shrine of Our Lady of Walsingham on 25 September. Another first was the live streaming of Mass from the Chapel of Hosanna House on 29 September, attracting over 3,500 viewers, peaking at 127 viewers during the Mass itself.

In response comments received included the following:

Seen collectively, our scheduled events such as the triennial Leadership Conference, biennial Carol Service, annual Easter Pilgrimage and Summer Pilgrimages were all delivered during this financial year. All were driven to be virtual by the situation the world found itself in, but ultimately were hugely successful, supplemented by a host of other innovative events in and around those big events, which kept HCPT’s flame burning in homes throughout the world, whilst we await the opportunity to resume activities fully in Lourdes.

Self-catering Villa

Bartrès Villa was bought by HCPT in 2001 to provide self-catering accommodation for smaller groups wishing to go to Lourdes. It is operated commercially through HCPT’s subsidiary trading company SARL HCPT 1980 France, and through careful management over the last 6 years, had seen quite a dramatic increase in use, in turn offering a very useful income to support our charitable operations.

The ability for us to maximise the bookings of the Villa during FY20/21 was inevitably fluid against a background of COVID uncertainty, with a much higher degree than usual of cancellations and re-bookings given COVID peaks and troughs. Even so, an income of almost €23,000 (excluding VAT), from 13 different groups visiting from France, the UK and Germany, in residence for 92 nights was achieved. This represents an increase of €12,575 against the previous financial year.

During the year the opportunity has also been taken to review a number of aspects relating to how the Villa is operated and managed which we hope will optimise yet further its potential as part of our operations.

Further developments

The key events described above relate to a range of hugely successful virtual Pilgrimage activities in line with and delivering against our Objects, Vision, Mission and Values.

Some meaningful face-to-face activity was conducted through the visit by a charitable French partner organisation to Hosanna House during the summer. For a six-week period, up to one hundred guests, mostly young people, took up residency, which benefitted the property through such use, as well as generating a very useful income.

The year has also seen much maintenance and improvement achieved in Hosanna House, including major landscaping works to the grounds, reducing the costs and efforts of future maintenance, as well as bathroom

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HCPT (Hosanna House and Children’s Pilgrimage Trust)

Trustees’ Report

For the year ended 31 October 2021

renovation and the stripping down, treatment and painting of all balcony railings. Very flexible support from the French Government throughout the pandemic enabled our French staff to conduct works at suitable times, whilst falling back on state support when this was not feasible.

Some significant infrastructure work has also been achieved in our Rugby HQ, principally the wholesale replacement of existing strip lighting with energy efficient LED lights. With the renewal of the office telecoms system planned, to replace the system which had been in place since 2013, this will enable a step change in mobile and virtual communication in support of new working practices.

Aside from enabling the key events above, a strategic priority for the organisation has been to deliver our Strategic IT project, which represents a revolution in terms of the way we engage and exchange information with our volunteers. In parallel to the roll-out of a new Customer Relationship Management (CRM) system, replacing the predecessor installed in 2010, a complementary planning system was developed which allows groups to transact directly with our systems in pilgrimage planning online, supplementing and eventually replacing the paper-based systems which had existed previously. As the financial year concluded, trials were ongoing, and with their successful conclusion roll-out has since taken place. What has been achieved thus far represents a step change in capability, but with further development planned over the next 12 – 24 months to enhance further the role of leadership of our volunteer groups, which remains an enduring aspiration in all that we do.

HCPT’S STRATEGIC PLAN

Whilst the continuation of the COVID pandemic meant that 2021 followed 2020 in a form which we would never had chosen, it was very important to continue to seize every opportunity which it afforded to achieve strategic transformation outcomes, which would not have been possible in any other year. Thankfully our existing strategic planning process offered an excellent context within which to work, enabling us to increase the tempo of work already underway or planned.

The following were highlights of the work we were able to achieve.

Core Goal A – Let people know who we are and what we do

Core Goal B – Enable more people to join us

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HCPT (Hosanna House and Children’s Pilgrimage Trust)

Trustees’ Report

For the year ended 31 October 2021

Core Goal C – Strengthen and secure our spiritual foundation

Core Goal D – Provide the best possible care to our pilgrims

Core Goal E – Be the best we can be at what we do

Core Goal F – Protect HCPT for future pilgrims

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HCPT (Hosanna House and Children’s Pilgrimage Trust)

Trustees’ Report

For the year ended 31 October 2021

PLANS FOR THE FUTURE

We are very proud of the way in which HCPT has weathered and prospered over the last two years, both in terms of delivering our Vision and Mission within new and innovative ways and also in capitalising on the opportunity to achieve organisation wide transformation. Throughout, the prospect of a return to face-to-face pilgrimages to Lourdes has been kept under permanent review, with plans and decisions always focussed on the protection of our beneficiaries, volunteers and staff.

We have taken the decision that we will again plan to conduct Easter and Summer Pilgrimages to Lourdes during 2022, and we believe at the point of this report that this is a realistic probability. As in previous years, our plans will include contingencies should that not prove possible, with our focus remaining on the safety and health of our beneficiaries, volunteers and staff.

We will also be refreshing our strategic work against our Strategic Plan, with another set of carefully chosen objectives shaped against our prioritised goals. These will continue to challenge us to transform and improve across a number of areas, but we have also learned that we must prioritise and be mindful of the well-being of our teams both at volunteer, staff and board levels. With that in mind the Board and Management Executive have prioritised the work being planned for 2022, balancing well-being with the desire to restart pilgrimages and drive continuing improvement.

We are all becoming aware that the world that will emerge from this pandemic will very likely be different from that which went before. We are also assuming that the HCPT that emerges may be similarly different from the organisation that existed at the start of 2020. We have a number of existing strategic goals which will help us to start to explore some of these aspects, including our position on sustainability and climate change, our views on our charitable and social impact, as well as how we measure growth into the future. However, as an organisation we will need to reflect, consult and listen to all levels within our organisation, to understand how the world around us has changed, how its impact is felt with HCPT and how our people wish to take the organisation forward, securing HCPT for future generations.

FINANCIAL REVIEW

The Statement of Financial Activities (SOFA) shows that HCPT remains in a secure financial position. Over the financial year our total funds increased by £1,072,253 (2020 also saw an increase of £323,407) to £8,038,285. Of this £3,150,647 is available as undesignated and unrestricted reserves.

For the second year in a row the covid pandemic inevitably had a large impact on the charity’s finances, affecting both income and expenditure, but in particular with respect to the income from charitable activities. The increase in total funds during the financial year can largely be attributed to a small number of generous bequests, totalling £866,500, and unrealised gains in the market value of the investment portfolios of £693,530 together with a reduction in costs. Without these amounts we would have suffered an overall deficit of almost £0.5m.

Our groups and regions are required to raise funds to enable them to partake in HCPT activities and to support the disabled and disadvantaged children and adults who they invite to go to Lourdes. Although they can apply to the central charitable funds for assistance, they raise the majority of their funds locally to achieve this, and rely on the generosity and support of their communities. In a normal year the majority of the pilgrimage income is raised prior to Easter, with a much smaller amount relating to the later summer pilgrimages following on.

The early decision to cancel the 2021 Easter pilgrimage, and subsequent decisions not to continue with any pilgrimages in 2021 meant that both income from charitable activities and voluntary income, specifically

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HCPT (Hosanna House and Children’s Pilgrimage Trust)

Trustees’ Report

For the year ended 31 October 2021

relating to the group support of the beneficiaries’ travel and accommodation costs, were significantly reduced. Groups however did continue to raise funds in anticipation of future pilgrimages, with the virtual “Lourdes Challenge” event which took place in the weeks leading to Easter being particularly well supported. The balances of all the groups’ accounts amounted to a total of £2,749,000 as at the year end which are all held in a designated fund. The income from charitable activities in 2021 was all earned by Hosanna France from events which took place in Hosanna House. In addition in order to reduce costs in France the three permanent members of staff were placed on partial furlough whenever possible. Hosanna France therefore benefitted from income received from French governmental schemes totalling £62,100 to offset staff costs. No seasonal staff were employed to work at Hosanna House during the year in order to minimise the running costs.

General voluntary donations, excluding income specifically raised by groups to support children, remained at a similar level to 2020 and we are very grateful to our loyal supporters for this. We also remain thankful that supporters have remembered us in their wills to the extent that £866,500 of legacy income has been recognised in 2021, in accordance with the accounting requirements for charities. Where a distribution has not been received yet an amount is shown in the corresponding debtors figure.

There was no shop trading during the year by the French subsidiary due to the absence of HCPT pilgrims and other visitors to Hosanna House.

Due to exceptional performance, significant realised and unrealised gains were made by both the Ruffer and Rathbones investment portfolios in the year. The market value of the two portfolios increased by £712,531 over the year which compares to an increase of £186,297 during the previous year. The year end valuation was £4,645,881. This greatly contributed to the surplus for the year made by the charity.

As in the previous year costs were reduced, compared with a pre-pandemic year, reflecting the lower level pilgrimage activity. All UK based staff remained employed throughout the period, undertaking the many projects outlined elsewhere in this report. Work continued on improving the facilities and grounds of Hosanna House, in preparation for the resumption of visits, albeit at a decreased rate than in previous years.

HCPT is still holding £158,000 of funds paid in advance of the 2020 pilgrimages by helpers who have not requested its return. This is shown as deferred income and will be consumed in 2022 or when the individuals next participate in an HCPT pilgrimage. In addition £245,000 is held in a fund which relates to the money raised by groups in preparation for Easter 2020 to pay for the beneficiaries who were to be in their care. This has been put in a designated fund as the donations were raised to support assisted children and adults. This is consistent with the policy from previous years. The abnormally high levels of cash balances shown in the accounts reflect these deposits.

FUNDRAISING

HCPT undertakes a variety of fundraising activity centrally and in support of local groups. The charity is a member of the Fundraising Regulator and adheres to the Code of Fundraising Practice. One member of the Board is a full member of the Institute of Fundraising. HCPT is registered with the Gambling Commission.

The charity has a base of donors who provide financial support through regular giving schemes, events and appeals. The annual grand draw offers a major fundraising opportunity for groups, generating substantial funds in support of the charity’s objectives. The charity receives substantial income through legacies and memorial gifts.

In 2017, HCPT launched a Sustainable Fundraising Programme (SFP) to form the core of its fundraising activities. The SFP is based around a series of Discovery Hour events which highlight the work of the charity and culminate with an annual fundraising lunch where guests are invited to make a long-term financial pledge. With the onset of the COVID pandemic in 2020, this project moved to an online footing, with five Discovery Hours, four CEO Golden Hours and many one-to-one major donor engagement activity beyond. In addition,

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HCPT (Hosanna House and Children’s Pilgrimage Trust)

Trustees’ Report

For the year ended 31 October 2021

the CEO was invited as guest speaker to five larger scale Catenian Circle meetings across the UK, speaking for up to an hour to an audience of up to 100 attendees at a time.

Building on the virtual spiritual activity initiated during 2020, the notion of fortnightly webcasts was conceived, and with that HCPTV was launched with its first broadcast on 31 October 2020. During FY20/21 a total of 18 episodes were broadcast, which generated over 32,000 views and content viewed for 4,000 hours. HCPTV has quickly become a central part of our communications, keeping the wonder of what we do in the forefront of minds across our organisation and most importantly outside it, at a time when our normal engagement models have been shut-down. Given its success, we plan to continue HCPTV into the future, growing our engagement and reach across volunteers, beneficiaries and supporters alike.

In line with its usual fundraising activities, 2021 would have seen HCPT conduct its biennial fundraising cycle to Lourdes. As conditions clearly did not allow this to take place, an innovative “Lourdes Challenge 2021” was instead launched, aligned to many other organisations using health, well-being and fitness, as a fantastic opportunity to build community and drive fundraising. Our challenge would run right through Lent up until Easter, allowing both HCPT volunteers and beneficiaries to clock up their target distance in any number of quantifiable and imaginative ways. A total of over 400 individuals from 44 different groupings took part, raising over £60,000 for the charity, clocking up over 80,000 kilometres, equating to over forty round trips to Lourdes or twice around the circumference of the earth. All up, this generated a real feeling of togetherness, connection and a huge buzz across and beyond HCPT.

During the year, we continue to acknowledge the generosity of the many people who leave HCPT a gift in their Will. Legacy income makes a significant difference to HCPT’s operations, and the generosity of everyone who has left HCPT a bequest is remembered (in normal years) during the annual Benefactors Mass in Lourdes.

Local groups receive regular advice and guidance on fundraising good practice, delivered centrally. This is in order to achieve compliance with our fundraising promise and Fundraising Code of Practice, thereby securing and maintaining the reputation of the charity while treating donors fairly.

By being members of the Fundraising Regulator, HCPT adheres to the fundraising promise that outlines the commitment we make to our donors and the public. We ensure that our fundraising is legal, open, honest and respectful. This means that:

HCPT’s fundraising activities are compliant with the Data Protection Act 2018 and the General Data Protection Regulations (GDPR). The charity uses mail, telecommunications, email, social media and advertising to engage with supporters, who are regularly asked to update their preferences. All information is stored securely. Consent is obtained where required and recorded. Supporters are in control of the information they share with us and are able to change the way they hear from HCPT at any time. HCPT does not use third party fundraising agencies and has received no complaints about fundraising activity in the year .

During the year no complaints were received with regard to the way charitably raised funds were used.

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HCPT (Hosanna House and Children’s Pilgrimage Trust)

Trustees’ Report

For the year ended 31 October 2021

RESERVES POLICY

The reserves policy set by the Trustees requires that reserves be maintained at a level allowing our core activities to continue in the event of a period of unforeseen difficulty, and that a proportion be maintained in a readily realisable form such as cash held on deposit. The calculation of the required level of reserves is an integral part of our planning, budget and forecast cycle. It takes into account the risks associated with the income and expenditure of each stream of our charitable activities being different from that budgeted, the planned activity level and our forward commitments.

The reserves policy is reviewed on an annual basis, bearing in mind our main commitments and the main risks to our income and expenditure, and our exposure to additional risks and their concomitant effects on our operations and the possible financial consequences. The level of reserves and the corporate risk register are kept under permanent review. The trustees feel it is appropriate to maintain the previously recommended level of £2,500,000. This takes into consideration the unprecedented uncertainties which remain, with regards to the pandemic and other national and international factors, and takes account of the Charity’s plans for rebuilding after 2 successive years of restricted pilgrimage activity and also future growth.

This allows for:

Unrestricted reserves comprise both designated and general funds. Free reserves are those general unrestricted and designated funds excluding those held as freehold property and those felt by the trustees not to be generally accessible, for example funds raised by, or designated for groups. Restricted reserves must be spent as specified by the donor. The reason for, and purpose of, our restricted and designated funds are set out in note (1) Accounting Policies.

Detailed analyses of the level of our reserves are set out in notes (12) and (13).

The overall figure represents the totality of funds held by HCPT across all entities, both centrally and at group/branch level. It therefore includes:

HCPT strives to ensure that the level of reserves held continues to match the level necessary to meet the needs of the Charity in the event of a period of unforeseen difficulty. Over the past 2 years the reserves held have enabled the charity to continue to invest in people and infrastructure in both the French and UK operations so that HCPT can resume pilgrimage operations as soon as the travel restrictions lift and circumstances allow.

As mentioned in the financial review the amount of designated funds has continued to increase, (by £405,700 in the year), as groups continued to raise more funds than they spent and some additional child sponsorship was raised. It is anticipated that these reserves will start to reduce as soon as the pilgrimages recommence.

£1,196,442 represents the value of the freehold property, including the investment property owned by HCPT, which could only be realised by disposing of these fixed assets. £200,000 is held as a designated fund for

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HCPT (Hosanna House and Children’s Pilgrimage Trust)

Trustees’ Report

For the year ended 31 October 2021

vehicle replacements. In at least the medium term there remains a need to replace four of the five minibuses at Hosanna House and a search for a suitable vehicle to replace the first has already begun.

At the year end £4,629,302 (2020: £4,223,583) was held in designated funds.

A total of £16,947 (2020: £12,246) was received during the year as restricted funds. This was bequeathed or donated to specific HCPT groups and is released to the groups over a number of years. The total held in restricted funds is £258,336 (2020: £288,839).

As with 2020 there was a reduced opportunity for expenditure in the year, in particular on subsidies to the groups and individuals on the HCPT pilgrimages. A large part of the increase in funds is due to unrealised gains showing on the investment portfolios and legacies for which the money is still anticipated. Both these items are unpredictable in their occurrence, size and timing but have led to a level of reserves that is higher than normal. It is not expected to continue at this level with reduced income expected during the next pilgrimage season, and hence expenditure which will exceed income.

Unrestricted and undesignated reserves increased by £697,037 over the year to £3,150,647 (2020: £2,453,610).

Although the current level of free reserves (as defined above – general unrestricted funds plus designated funds, with the exception of freehold property and group sundry accounts) at £3,834,169 is above the minimum as set out in the policy, the trustees do not consider that the funds currently held are excessive. It is anticipated that this situation is unusual and temporary. This is due to a number of factors including a high level of legacies accounted for in this and recent years, of which £789,424 is included in debtors as the money has not been received as yet, exceptional unrealised investments gains (£693,530), and funds raised since the end of 2019 in anticipation of pilgrimages which have not been able to take place. Surplus funds are being invested into operations in a controlled manner in accordance with the strategic objectives and this will increase once circumstances allow and when spending on pilgrimages recommences.

INVESTMENT POLICY

The investment policy of the Trustees is to preserve HCPT’s assets and make suitable investment of the funds that are not immediately required to meet HCPT’s short-term objectives. Cash to meet short, medium and long term needs is kept on interest-bearing deposits. Beyond this, an element of the charity’s funds that is not required in the short term has been placed with two investment managers, in funds with different risk profiles, in order to optimise its potential. The Board of Trustees, advised by the Finance and Audit Committee, and Investment Sub Committee, sets the overall performance criteria under which the Investment Managers (Ruffer and Rathbones) operate, within clearly defined ethical parameters drawn from the teachings of the Roman Catholic Church. The Investment Committee has historically met at least twice a year and monitors the current investments and reviews potential new ones. The investment managers are asked to present to the committee at least twice a year. This year, as with the previous year, due to the increase level of uncertainty and volatility, the committee has continued to meet on a quarterly basis.

RISK MANAGEMENT

The Trustees regularly review the risks HCPT faces in several key areas: Operational, Financial and Commercial, Environmental and External, People, Compliance, Law and Regulation, and Governance. Group Leaders are expected to risk assess the particular activities of their group, as well as prepare risk assessments for vulnerable individuals travelling within the group. All identified risks are assessed for both likelihood of occurrence and potential impact on all aspects of our work, including financial and reputational damage. This information from trustees and group leaders is then used to develop a risk management strategy for HCPT as a whole. The strategy includes monitoring and reviewing existing controls and introducing new controls where the trustees consider it to be necessary. During the year no serious incidents were reported to the Charity Commission .

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HCPT (Hosanna House and Children’s Pilgrimage Trust)

Trustees’ Report

For the year ended 31 October 2021

In terms of financial risk, a Finance and Audit Committee, whose members are either trustees or advisors, meets and reviews management accounts on a quarterly basis.

The principal risks currently facing the charity, and associated mitigation, are considered to be as follows.

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HCPT (Hosanna House and Children’s Pilgrimage Trust)

Trustees’ Report

For the year ended 31 October 2021

medium term planning and longer-term horizon scanning, and will no doubt remain a feature until the pandemic recedes.

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HCPT (Hosanna House and Children’s Pilgrimage Trust)

Trustees’ Report

For the year ended 31 October 2021

STRUCTURE, GOVERNANCE AND MANAGEMENT

Constitution

Established in 1956 as a charity, HCPT (Hosanna House and Children's Pilgrimage Trust) is a company limited by guarantee, incorporated on 8 February 1973. It was established under a memorandum of association which establishes its objects and powers and is governed under its articles of association. The memorandum and articles of association were updated in 1998, 2005, 2012 and 2015.

References and administrative information are set out on page 16, and form part of this report.

The board has considered the advice given by the Charity Commission in the good governance guidelines to ensure that HCPT reflects these standards throughout the organisation and that these are implemented within all of our management.

Trustees have a responsibility for the management of HCPT’s affairs and are elected by the members at an AGM. A Trustee appointed prior to September 2011 can serve a term of three years before needing to seek reelection. A Trustee appointed after this date can serve for five years and would normally serve for a maximum of two consecutive terms.

The members of the Board of Trustees of HCPT are chosen on knowledge and experience of the Trust, together with the individual skills that they can bring to the Board to enable it to function as an effective body. They reflect the geographical spread of HCPT, ensuring that a variety of regions of the Trust are reflected in the membership.

On appointment, new Trustees are given key documents such as a copy of the constitution, latest accounts, and previous minutes, and are required to sign a consent form agreeing to their appointment.

The members of the Board of Trustees, who are also directors under the terms of the Companies Act, are set out on page 17. The members of the Board have no beneficial interest in the group or charity. Trustees are unpaid and details of Trustee expenses and any related party transactions are disclosed in note 16 to the accounts.

Reappointments to the Board

Re-appointments in 2021

Fr John Carroll (May 2021) for a successful handover of the Trust Chaplain role Ian O’Brien (May 2021) as a Trustee and Chair

Resignations and Retirements from the Board

Siobhan Kelly (Resigned August 2021) Claire Shanks (Resigned September 2021)

Appointments to the Board

There were no new appointments to the Board.

The members of the Board are extremely grateful to those who resigned from the Board this year. Their commitment and contribution to HCPT over a number of years has been outstanding and greatly appreciated.

The Board of Trustees currently meets four times per year and focuses on strategic matters. They are supported by an operational management team consisting of the Chief Executive and 15 other full and part time employees in the UK, and 3 full time employees in France, supported by a number of seasonal staff recruited each year when HCPT pilgrimages occur.

14

HCPT (Hosanna House and Children’s Pilgrimage Trust)

Trustees’ Report

For the year ended 31 October 2021

The remuneration of the key management personnel is set by the Human Resources and Remuneration Committee and reviewed annually, with reference to external benchmarking and the internal appraisals policy. The committee also approves the annual review of all other staff salaries.

Liability of Members

The company is limited by guarantee and has no share capital. Clause 11 of the Memorandum and Articles of Association provides that every member, as defined by Clause 14 of the Memorandum and Articles of Association, is liable to contribute a sum not exceeding £5 in the event of the company being wound up whilst he/she is a member or within one year of ceasing to be a member. At the yearend, there were 12 members (2020: 14).

15

HCPT (Hosanna House and Children’s Pilgrimage Trust)

Trustees’ Report

For the year ended 31 October 2021

16

HCPT (Hosanna House and Children’s Pilgrimage Trust)

Trustees’ Report

For the year ended 31 October 2021

REFERENCE AND ADMINISTRATIVE DETAILS

Trustees
Chair Ian O’Brien, APM Prac
Rev. John Carroll
Debbie Reilly
Dr Emma Derby CEng
Bridget Hanlon
Helen Young, BA, MA
Siobhan Kelly, LLB (Hons), Dip. LP NP (Resigned August 2021)
Timothy Madeley BA (Hons)
Dr Chris O’Dowd-Booth
Carl Pandole
Diane Reid, BSc(Hons), MCIOF (Cert)
Timothy Righton, BSc (Hons), ACA
Claire Shanks, BA (Hons) (Resigned September 2021)
Rev. Patrick Sherlock, SDB
Vice Presidents Lady Jane Lothian, Antoni Camponi
Patron HRH The Duchess of Kent GCVO
President Archbishop Leo Cushley
Episcopal Liaison with the Bishops’ Bishop Thomas Williams
Conference of England and Wales
Key Management Personnel
Chief Executive Philip Sparke, MA
Head of Finance Susan Berridge, BA (Hons), ACA (Resigned February 2022)
Steven Randall, CGMA (Appointed February 2022)
Pilgrimage Organiser Philip Burns, BA (Hons)
Head of Education & Youth Andrew Clare, BA (Hons)
Hosanna House Manager Bettina Herrault
Head of HR & Administration Natacha Petithory
Head of Fundraising & Communications Philip Gay (Resigned May 2021)
Jane Harling, BA (Hons) (Interim June 2021 to October 2021)
Bankers NatWest, St Nicholas Centre, Sutton, Surrey, SM1 1NW
Banque Populaire, 2 rue de la Halle, 65100 Lourdes, France
Auditors Haysmacintyre LLP, 10 Queen Street Place, London, EC4R 1AG
Solicitors Tozers, Broadwalk House, Southernhay West, Exeter EX1 1UA
Registered Charity Number 281074 & SCO43743
Company Registration Number 1095198
VAT Registration Number 853 7288 91
Registered Office HCPT, Oakfield Park, 32 Bilton Road, Rugby, CV22 7HQ

17

HCPT (Hosanna House and Children’s Pilgrimage Trust)

Trustees’ Report

For the year ended 31 October 2021

STATEMENT OF TRUSTEES’ RESPONSIBILITIES IN RELATION TO THE FINANCIAL STATEMENTS

Trustees’ Responsibilities

The Trustees who are also directors of the charitable company, are responsible for preparing the Trustees’ Report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the Trustees have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of the profit or loss of the charitable company for that period. In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company’s transactions and disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

So far as each of the Trustees is aware at the time the report is approved:

Auditors

A resolution proposing the re-appointment of Haysmacintyre LLP will be submitted at the Annual General Meeting.

The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Approved by the Board of Trustees and signed on their behalf:

Ian O’Brien Chair of the Board of Trustees 26 February 2022

18

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS AND TRUSTEES OF HCPT (Hosanna House and Children’s Pilgrimage Trust)

Opinion

We have audited the financial statements of HCPT (Hosanna House and Children's Pilgrimage Trust) for the year ended 31 October 2021 which comprise the Group Statement of Financial Activities, the Group and Parent Charitable Company Balance Sheet, the Group Statement of Cash Flows and notes to the financial statements, including a summary of significant accounting policies. 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 financial statements:

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 financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements 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

In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements 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 group's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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

Other information

The trustees are responsible for the other information. The other information comprises the information included in the Trustees’ Report and the Chair’s Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements 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 financial statements 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.

19

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS AND TRUSTEES OF HCPT (Hosanna House and Children’s Pilgrimage Trust)

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees’ Report (which incorporates the strategic report and the directors’ report).

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 and the Charity Accounts (Scotland) Regulations (as amended) require us to report to you if, in our opinion:

Responsibilities of trustees for the financial statements

As explained more fully in the trustees’ responsibilities statement set out on page 18, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements 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 financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the group’s and the parent charitable company’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 group or the parent charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements 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 financial statements.

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:

Based on our understanding of the group and parent charitable company and the environment in which it operates, we identified that the principal risks of non-compliance with laws and regulations related to ATOL regulations, employment law and Charity and Company law, and we considered the extent to which noncompliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006, Charities Act 2011 and Charities SORP.

20

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS AND TRUSTEES OF HCPT (Hosanna House and Children’s Pilgrimage Trust)

We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls). Audit procedures performed by the engagement team included:

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

Use of our report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006, section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and regulation 10 of the Charities Accounts (Scotland) Regulations 2006. Our audit work has been undertaken so that we might state to the charitable company's members 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 charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.

……………………………..
Adam Halsey (Senior Statutory Auditor)
10 Queen Street Place
For and on behalf of Haysmacintyre LLP, Statutory Auditors London
EC4 1AG
Date: 26 February 2022

21

HCPT (HOSANNA HOUSE AND CHILDREN’S PILGRIMAGE TRUST) Company number: 1095198

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES

(incorporating income and expenditure account)

FOR THE YEAR ENDED 31 OCTOBER 2021

Unrestricted Designated Restricted Total Funds Total Funds
Funds Funds Funds 2021 2020
Notes £ £ £ £
INCOME FROM:
Donations, legacies and grants 2a 1,180,866 21,115 16,947 1,218,928 1,055,508
Activities for raising funds 2b 99,511 378,143 - 477,654 585,123
Investment income 2d 62,487 - - 62,487 46,626
Charitable activities 2c 36,591 - - 36,591 14,762
---------------------- --------------------- ------------------- -------------------- --------------------
Total income 1,379,455 399,258 16,947 1,795,660 1,702,019
---------------------- --------------------- ------------------ --------------------- ---------------------
EXPENDITURE ON:
Raising funds
Fundraising trading 332,951 5,712 - 338,663 366,965
Charitable activities
Regular 1,027,024 11,423 - 1,038,447 1,214,069
Building Development Fund - - - - 19,330
---------------------- -------------------- ------------------ -------------------- --------------------
Total expenditure 3a 1,359,975 17,135 - 1,377,110 1,600,364
---------------------- --------------------- ------------------ -------------------- --------------------
Net gains on investments 693,530 - - 693,530 176,916
(Losses)/gains on foreign exchange (39,827) - - (39,827) 44,836
---------------------- --------------------- ------------------ -------------------- --------------------
Net Income 673,183 382,123 16,947 1,072,253 323,407
Transfers between funds 12 23,854 23,596 (47,450) - -
-------------------- --------------------- ------------------- -------------------- --------------------
Net movement in funds for year 697,037 405,719 (30,503) 1,072,253 323,407
Funds brought forward 12 2,453,610 4,223,583 288,839 6,966,032 6,642,625
---------------------- --------------------- ------------------- --------------------- ---------------------
Funds carried forward 12 3,150,647 4,629,302 258,336 8,038,285 6,966,032
========== ========== ========= ========== ==========

There have been no changes in operations during the year and all operations are continuing.

The notes on pages 25 to 43 form part of these accounts.

Full comparative figures for the year ended 31 October 2020 are shown in note 18.

22

HCPT (HOSANNA HOUSE AND CHILDREN’S PILGRIMAGE TRUST) Company number: 1095198

BALANCE SHEET

FOR THE YEAR ENDED 31 OCTOBER 2021

The Group HCPT
2021 2020 2021 2020
Notes £ £ £ £
FIXED ASSETS
Tangible assets 5 1,236,338 1,332,119 1,036,399 1,079,543
Investments 6 4,916,151 4,203,620 4,921,021 4,208,490
----------------------- ----------------------- --------------------- ---------------------
6,152,489 5,535,739 5,957,420 5,288,033
CURRENT ASSETS
Stock 7 21,226 22,565 - -
Debtors and prepayments 8 843,952 242,016 827,228 220,633
Cash at bank and on deposit 9 1,385,198 1,657,641 1,340,595 1,634,394
--------------------- --------------------- --------------------- ---------------------
2,250,376 1,922,222 2,167,823 1,855,027
CREDITORS: amounts falling due
within one year 10 (364,580)
(491,929)		 (322,553) (447,257)
--------------------- --------------------- --------------------- ---------------------
NET CURRENT ASSETS 1,885,796 1,430,293 1,845,270 1,407,770
--------------------- --------------------- --------------------- ---------------------
8,038,285 6,966,032 7,802,690 6,695,803
========== ========== ========== ==========
RESTRICTED FUNDS: 12 258,336 288,839 258,336 288,839
UNRESTRICTED FUNDS
General accumulated 12 3,150,647 2,453,610 2,915,052 2,183,381
Trustees designated 12 4,629,302 4,223,583 4,629,302 4,223,583
--------------------- --------------------- --------------------- ---------------------
8,038,285 6,966,032 7,802,690 6,695,803
========== ========== ========== ==========

The financial statements were approved and authorised for issue by the Board of Trustees on 26 February 2022 and were signed below on its behalf by:

Ian O’Brien Chair of the Trustees Board

The notes on pages 25 to 43 form part of these accounts.

23

HCPT (HOSANNA HOUSE AND CHILDREN’S PILGRIMAGE TRUST) Company number: 1095198

CASH FLOW STATEMENT

FOR THE YEAR ENDED 31 OCTOBER 2021

CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 OCTOBER 2021
Note
Cash flows from operating activities
A
Cash flows from investing activities
Dividends and interest received
Purchase of tangible fixed assets
Proceeds from sale of investments
Purchase of investments
Cash used in investing activities
Change in cash and cash equivalents in the year
B
Cash and cash equivalents at the beginning of the year
TOTAL CASH AND CASH EQUIVALENTS AT THE END OF
THE YEAR
A
Net income for the year
Add back depreciation charge
(Gain) / loss on investment
Exchange losses /(gains) on overseas fixed assets held
Interest income
(Increase) / decrease in stocks
Decrease (increase) in debtors
Increase / (decrease) in creditors
Net cash provided by operating activities
B. Analysis of changes in net cash
Balance at 1
November 2020
Cash in hand
1,657,641
Total
1,657,641
2021
2020
£
£
(315,109)
649,112
==========
==========
62,487
46,626
(820)
(196,442)
1,448,005
943,873
(1,467,006)
(953,254)
-------------------
-------------------
42,666
(159,197)
-------------------
-------------------
(272,443)
489,915
1,657,641
1,167,726
-------------------
-------------------
1,385,198
1,657,641
==========
=========
2021
2020
£
£
1,072,253
323,407
75,341
93,893
(693,530)
(176,916)
21,260
(15,200)
(62,487)
(46,626)
1,339
(9,078)
(601,936)
188,905
(127,349)
290,727
-------------------
-------------------
(315,109)
649,112
==========
=========
Cash Flows
Balance at 31
October 2021
(272,443)
1,385,198
(272,443)
1,385,198

24

HCPT (HOSANNA HOUSE AND CHILDREN’S PILGRIMAGE TRUST) Company number: 1095198

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 OCTOBER 2021

1. ACCOUNTING POLICIES

a) Statement of compliance

The financial statements are prepared under the historical cost convention as modified to include the revaluation of investments. The format of the financial statements has been presented to comply with the Companies Act 2006 and in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice (SORP) (Second Edition, effective 1 January 2019) applicable to charities preparing accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) and the Charities Act 2011. The Charity is a Public Benefit Entity as defined by FRS102.

b) General information

The Charity is a private company limited by guarantee, incorporated in England and Wales (company number: 1095198), a charity registered in England and Wales (charity number: 281074) and a charity registered in Scotland (charity number: SC043743). The Charity’s registered office address is: HCPT, Oakfield Park, 32 Bilton Road, Rugby, CV22 7HQ.

c) Basis of Consolidation

These financial statements consolidate the results, assets and liabilities of the Charity’s trading subsidiaries (HCPT (1980) Ltd, Hosanna France, SARL HCPT (1980) France) on a line by line basis. Uniform group accounting policies have been applied. The Charity’s own Statement of Financial Activities has not been presented, as permitted by section 408 of the Companies Act 2006. The Charity’s net movement in funds for the year as an individual entity was a surplus of £1,106,887.

d) Going concern

The Trustees consider that, despite the situation regarding Covid19 which, for a second year, prevented the Charity from undertaking many of its normal operations in 2021, there are no material uncertainties which would cast doubt on the Charity’s ability to continue as a going concern. HCPT remains in a strong financial position and is preparing to resume pilgrimages to Lourdes at Easter 2022, following the advice of HCPT’s internal Covid Task Force and reflecting UK and French government policy. Throughout the pandemic the Charity has kept in contact with its volunteers, supporters and beneficiaries and is confident that there remains both the need for its charitable activities, and the willingness to perform them. It is likely, however that the pilgrimage will be on a smaller scale at Easter in 2022, but a full season of summer pilgrimages is planned.

e) Investments

Cash held on short term deposit in furtherance of the charity’s activities is shown as Current Assets. Investments held for the long-term to generate income or capital growth are carried at fair value as fixed assets. Realised and unrealised gains are accounted for within the Statement of Financial Activities.

HCPT has an interest in the freeholds of certain properties. Where these are held for rental return or future capital gain, these are treated as investment properties. Such freeholds are deemed investment properties because they are held for the purpose of:

Investment properties are revalued when deemed appropriate and the aggregate surplus or deficit is transferred to the general reserve. No depreciation is provided in respect of investment properties. The Trustees consider that, because these properties are not held for consumption but for their investment potential, to depreciate them would not give a true and fair value.

The villa in Bartrès, France owned by HCPT (Hosanna House & Children’s Pilgrimage Trust) was last revalued in 2020.

25

HCPT (HOSANNA HOUSE AND CHILDREN’S PILGRIMAGE TRUST) Company number: 1095198

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 OCTOBER 2021

f) Depreciation of tangible fixed assets

Fixed assets owned by HCPT are included in the accounts at cost less depreciation. Assets costing below £1,000 are expensed in the year of purchase. Depreciation is provided to write off the cost of fixed assets on a straight line basis, with a full year‘s worth of depreciation charged in the year of purchase, at the following annual rates:

Freehold buildings excluding land 2% Computer equipment 20% Laptops 3 yrs Furniture and fittings 10% Motor vehicles 25% or 7 yrs

Computer software is written off within 12 months of being brought into use.

Fixed assets owned by the French entities, Association Hosanna France and SARL HCPT (1980) France are included in the accounts at cost less depreciation. Depreciation is provided to write off the cost of fixed assets on a straight line basis, with depreciation charged from the date of purchase, at the following annual rates:

Computer equipment 50% Office equipment 3 yrs Electrical equipment 20% Motor vehicles 7 yrs Medical beds 7 yrs Furniture and fittings 10%

g) Foreign currency – Euro

Euros are usually purchased whenever funds are available to buy at an advantageous spot rate. Due to a reduced requirement for Euros in 2021 no purchases were made during the year. The rate obtained for Easter 2020 was at an average of €1.18 to £1.

For all other expenditure in France, an average exchange rate is calculated at the end of the year and all transactions, including capital expenditure are translated at this rate. The average rate calculated was €1.15 to the £1.

Monetary assets and liabilities held in foreign currencies at the balance sheet date are translated at the rate of exchange ruling on that date. The rate used as at 31 October 2021 was € 1.18 to the £1 (2020: €1.11).

Any resulting difference on translation is taken through the Statement of Financial Activities, with gains being shown in Other Incoming Resources and losses shown under resources expended.

h)

Income

All income is recognised in the statement of financial activities when the conditions for receipt have been met and there is reasonable assurance of receipt. The following accounting policies are applied to income:

i. Income

Easter Child Sponsorship

Income from the regions is brought into account in the period in which it is received by HCPT except that Child Sponsorship received after 30 April is treated as relating to the following years’ pilgrimage. In order to comply with SORP 2017, the income is credited to a designated fund and transferred to general accumulated income in the following financial year.

Donations, Gifts and Legacies

Donations and gifts and any associated income tax reclaimable from HM Revenue and Customs are recognised on a receivable basis. Donations received for the general purposes of the Charity are credited to unrestricted funds. Donations subject to specific wishes of the donors are carried to relevant restricted funds.

Legacies are accounted for as they are received or, if before receipt, following confirmation of entitlements, the receipt is probable and value can be measured.

26

HCPT (HOSANNA HOUSE AND CHILDREN’S PILGRIMAGE TRUST) Company number: 1095198

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 OCTOBER 2021

Donations and all other similar receipts are reported gross and the related fundraising costs are reported in costs of raising funds.

Coronavirus Job Retention Scheme (CJRS) Income

No CJRS income was claimed during the year.

French government grant income has been recognised in the Statement of Financial Activities in the period to which the underlying staff costs relate.

ii. Activities for raising funds

Fundraising Activities

Activities for generating income, including any trading activity carried out by HCPT (1980) Limited and HCPT (1980) France SARL, are accounted for when the income is received or there is probable assurance of the receipt. No activity has been carried out by HCPT (1980) during the year.

Investment Income

Investment income is accounted for in the period to which it relates and consists of income from bank deposits, and the investment portfolio.

iii. Income from charitable activities

Income from charitable activities includes all other income directly related to the charitable objects of the company.

Local groups raise money to pay for their helpers and sponsored children to travel to Lourdes. HCPTs income figures are a consolidation of all local groups’ income and income received directly into central funds.

i) Expenditure

The costs of goods sold by HCPT (1980) Limited and SARL HCPT (1980) France are included under cost of generated funds.

This expenditure includes all direct costs associated with the objects of the charity, together with all support costs which are directly connected with such charitable activities.

Indirect support costs are allocated on an appropriate, reasonable, justifiable and consistent basis using various methods such as time spent, staff numbers involved, the relative size of the two main pilgrimages, floor space used.

iii. Governance costs

Governance costs includes all direct and support costs incurred in the general governance of the charity, including all costs associated with constitutional and statutory requirements. Governance costs are apportioned in line with the percentage time allocated for staff time.

iv. VAT

Any irrecoverable VAT is written off in the period in which it is incurred.

j) Stock

Stock is valued at the lower of cost and net realisable value and consists wholly of goods for resale.

27

HCPT (HOSANNA HOUSE AND CHILDREN’S PILGRIMAGE TRUST) Company number: 1095198

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 OCTOBER 2021

k) Funds

Unrestricted Funds

i. General accumulated

General funds are unrestricted funds which are available for use at the discretion of the trustees in furtherance of the charitable objectives. The general accumulated fund arises from donations, bequests and other income received or generated for charitable purposes and represents the net surplus made by HCPT during its operations to date.

Designated Funds

Designated funds comprise unrestricted funds that have been set aside by the trustees for a specific purpose

The following funds have been designated by the Trustees:

Income received for Child Sponsorship after 30th April which is treated as income available for the following year, except in cases where the group leader states it is for the current year.

iii. Freehold Property

This represents the net book value of Freehold Land and Buildings held by HCPT in France and recognises that such reserves are held on a long term basis. This includes the Villa held as an investment property.

iv. HH Window Fund Appeal

Income received from the appeal for new stained glass windows in the Chapel of Hosanna House were allocated to this fund and expenditure incurred to design, construct and install the windows was charged to this account. Surplus funds are used for further work in the Chapel.

Income received and expenditure incurred by individual HCPT Groups is credited or charged to this fund. This represents accumulated funds available for use by these groups in future years for charitable activities. The money in this fund will be expended when groups recommence preparation for future pilgrimages.

vi. Group Donations

Unusually large donations received by groups are held in this fund and released to them over a period of time.

vii. Vehicle Replacement

This was created in order to ensure that funds are available for the replacement of the vehicles in France when this is deemed necessary. It is envisaged that four minibuses will need to be replaced in the short to medium term and the search for suitable replacements has already commenced.

viii. St Jude’s Society (Cathcap)

This money was donated by a society which had previously been set up to benefit people from Cardiff and the surrounding area. The fund is used to support pilgrims from Wales and is expended whenever beneficiaries travel as part of groups from there.

Restricted Funds

Restricted funds comprise funds received for specific expenditure as specified by the donor.

ix. Wheelchairs and other Accessibility Equipment

Specific donations which are received by HCPT for the purchase of wheelchairs and other disability aids are credited to this fund and any expenditure on such equipment is charged to this fund.

x. Bartrès Villa

An appeal was established to raise funds for upgrading and maintaining the facilities of the freehold property owned in Bartrès. Specific donations which are received by HCPT are credited to this fund. Expenditure incurred on maintenance and upgrading the Villa is charged to this fund.

28

HCPT (HOSANNA HOUSE AND CHILDREN’S PILGRIMAGE TRUST) Company number: 1095198

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 OCTOBER 2021

xi. Hosanna House Appeal Fund

An appeal was established to raise funds for upgrading the facilities in the St Bernadette Wing of Hosanna House. Specific donations which are received by HCPT are credited to this fund.

xii. Building Development

A Building Development Fund has been established to provide for future building works at Hosanna House.

xiii. Anna’s Fund

This fund has been established in memory of Anna Sparke by her parents to be used at their discretion.

xiv. Bequests to HCPT Groups

This represents bequests received in the current and earlier years where the bequest has been left to a specific group or region for its charitable activity in accordance with the terms of the will.

xv. Ros’s Fund

This fund has been established from a donation to be used to support Group 536.

l)

Operating leases

Costs in respect of operating leases are charged to the Income and Expenditure Account on a straight line basis over the terms of the lease.

m) Staff costs and overhead expenses

Staff costs are allocated to activities on the basis of staff time spent. Overhead expenses are allocated to activities as they are incurred.

n) Significant judgments and sources estimation uncertainty

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Charity’s accounting policies. The areas subject to significant judgement and estimation are the valuation of the investment property and accrued legacy income.

o) Financial instruments

Basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable are accounted for on the following basis:

Cash and cash equivalents

Cash and cash equivalents includes cash in hand, deposits held at banks, other short-term highly liquid investments with original maturities of three months or less and bank overdrafts. Bank overdrafts, when applicable, are shown within current liabilities.

Debtors and creditors

Debtors and creditors are measured at the transaction price less any provision for impairment. Any losses arising from impairment are recognized as expenditure.

Bank borrowings

Liabilities for borrowings which are subject to a market rate of interest are measured at the value of the amount advanced, less capital repayments.

p) Employee benefits

Short term benefits

Short term benefits including holiday pay are recognised as an expense in the period in which the service is received.

Pensions

The charity operates a defined contribution pension scheme. Payments were made to an insurance company which is financially separate from the charity. The payments have been charged to the Statement of Financial Activities in

29

HCPT (HOSANNA HOUSE AND CHILDREN’S PILGRIMAGE TRUST) Company number: 1095198

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 OCTOBER 2021

the year in which they become payable. Differences between contributions payable in the year and contributions actually paid are shown either as other creditors or prepayments in the balance sheet.

2. INCOME 2021 2020
£ £
a) Donations, Legacies and Grants
Bequests and legacies 866,544 508,243
Donations and similar 260,831 505,656
French Government Grants / Furlough 62,106 29,363
---------------------- ----------------------
1,189,481 1,043,262
-
Group Bequests and Specific Donations 29,447 12,246
---------------------- ----------------------
1,218,928 1,055,508
=========== ===========
b) Activities for Raising Funds
Groups and Regional Activities 378,143 522,789
Sales of HCPT (1980) Limited Group 19,745 12,584
Fundraising income 79,766 49,750
--------------------- ---------------------
477,654 585,123
========== ==========
c) Charitable Activities
Hosanna House Income 36,591 14,762
---------------------- ----------------------
36,591 14,762
=========== ===========
d) Investment income
Income from investments 62,059 45,186
Interest receivable 428 1,440
---------------------- ----------------------
62,487 46,626
=========== ===========

Included in group bequests is £16,947 (2020: £12,246) which is restricted.

30

HCPT (HOSANNA HOUSE AND CHILDREN’S PILGRIMAGE TRUST) Company number: 1095198

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 OCTOBER 2021

3. EXPENDITURE

Direct costs are allocated specifically to the relevant charitable activity as they are incurred.

UK staff costs for both charitable and fundraising activities have been allocated on the basis of staff time involved. This has been estimated as a percentage of the total payroll costs as follows:

2021 2020
% %
Charitable activities 70 70
Fundraising 23 23
Governance 7 7
--------- ---------
100 100
--------- ---------

French staff costs are charged 100% to support costs of charitable activities in France.

Details of Employment and Staff Costs are shown in Note 4.

Support costs are allocated either directly to the charitable activity to which they relate or on a reasonable basis taking into account usage, time cost, floor space occupied or number of people employed.

2021 2020
£ £
Operating expenditure includes:
Depreciation of tangible fixed assets 75,341 93,893
Auditors’ remuneration – audit fee 11,350 11,330
Auditor’s remuneration – other services 750 750
Operating lease: Land and Buildings 27,000 27,000
Office equipment rental 800 800
======== ========
3a. Analysis of Total Expenditure
Staff Support Other direct Total
Costs Costs Costs 2021
£ £ £ £
Unrestricted funds
Cost of raising funds 143,702 85,782 103,467 332,951
Charitable activities
Easter Pilgrimage 224,926 134,268 13,282 372,476
Summer Pilgrimages 212,430 126,809 315,309 654,548
------------------ ------------------- --------------------- ---------------------
Total unrestricted expenditure 581,058 346,859 432,058 1,359,975
========= ========= ========== ==========
Designated funds
Cost of raising funds - - 5,712 5,712
Charitable Activities - - 11,423 11,423
------------------- ------------------ --------------------- ---------------------
Total designated expenditure - - 17,135 17,135
========= ========= ========== ==========
Total restricted expenditure - - - -
========= ========= ========== ==========
Total Expenditure 2021 581,058 346,859 449,193 1,377,110
========= ========= ========== ==========

31

HCPT (HOSANNA HOUSE AND CHILDREN’S PILGRIMAGE TRUST) Company number: 1095198

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 OCTOBER 2021

Previous year comparison
Staff Support Other direct Total
Costs Costs Costs 2020
£ £ £ £
Unrestricted funds
Cost of raising funds 148,975 74,350 118,555 341,880
Charitable activities
Easter Pilgrimage 272,039 135,770 136,148 543,957
Summer Pilgrimages 181,359 90,514 348,070 619,943
------------------ ------------------- --------------------- ---------------------
Total unrestricted expenditure 602,373 300,634 602,773 1,505,780
========= ========= ========== ==========
Designated funds
Cost of raising funds - - 25,085 25,085
Charitable Activities - - 50,169 50,169
------------------- ------------------ --------------------- ---------------------
Total designated expenditure - - 75,254 75,254
========= ========= ========== ==========
Restricted funds
Charitable activities
Building Development Fund - - 19,330 19,330
---------------- ---------------- --------------- ------------------
Total restricted expenditure - - 19,330 19,330
======== ======= ======== ========
Total expenditure 2020 602,373 300,634 697,357 1,600,364
======== ======== ========== =========

32

HCPT (HOSANNA HOUSE AND CHILDREN’S PILGRIMAGE TRUST) Company number: 1095198

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 OCTOBER 2021

3b. Analysis of support costs Raising Easter Summer Total
Funds Pilgrimage Pilgrimages 2021
£ £ £ £
Premises 12,917 20,218 19,095 52,230
Safeguarding 281 440 415 1,136
Communication & IT 26,978 42,226 39,881 109,085
General administration 9,083 14,217 13,428 36,728
Financial costs 10,371 16,234 15,331 41,936
Unrecovered VAT 11,210 17,546 16,571 45,327
Governance 14,942 23,387 22,088 60,417
---------------- ---------------- ---------------- ------------------
85,782 134,268 126,809 346,859
======== ======== ======== =========
Previous year comparison Raising Easter Summer Total
Funds Pilgrimage Pilgrimages 2020
£ £ £ £
Premises 17,051 31,137 20,758 68,946
Safeguarding 1,622 2,962 1,974 6,558
Communication & IT 6,831 12,474 8,316 27,621
General administration 10,662 19,469 12,979 43,110
Financial costs 11,050 20,177 13,452 44,679
Unrecovered VAT 8,546 15,606 10,404 34,556
Governance 18,589 33,945 22,630 75,164
---------------- ---------------- ---------------- ------------------
74,351 135,770 90,513 300,634
======== ======== ======== =========

33

HCPT (HOSANNA HOUSE AND CHILDREN’S PILGRIMAGE TRUST) Company number: 1095198

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 OCTOBER 2021

4. EMPLOYMENT 2021 2020
Number Number
The average number employed in the United
Kingdom during the year was 15 (2020: 17) and by function:
Charitable 8 10
Fundraising 4 4
Administration 3 3
------------ ------------
15 17
====== ======
£ £
Staff costs in the UK include:
Salaries 539,254 563,429
Social security costs 53,872 51,656
Other pension costs 31,668 32,627
------------------- -----------------
624,794 647,712
========= ========

£581,058 (2020 : £602,373) of these staff costs are allocated to charitable activities and the cost of raising funds. £43,736 (2020 : £45,339) is included within support costs.

In addition, in 2021 there were 3 full time employees but no seasonal employees in France (2020: 3 & 1) incurring total payroll expenditure, excluding government subsidies, in the year of £93,494 (2020: £134,410).

2021 2020
£ £
Hosanna France
Salaries 54,310 96,158
Social security costs 21,763 26,540
------------------ -----------------
76,073 122,698
========= ========
HCPT (1980) France SARL
Salaries 12,380 9,473
Social security costs 5,041 2,239
------------------ -----------------
17,421 11,712
========= ========

One employee paid by the Trust had emoluments paid between £70,000 - £80,000 (2020:80,000 - £90,000). Pension contributions totalling £8,553 (2020: £8,456) were made to the scheme on behalf of employees whose emoluments exceeded £60,000.

Key management personnel remuneration for 2021 was £356,102 (2020: £356,885).

No directors of the group companies were paid (2020: none). None of the Trustees received any remuneration for their services (2020: none). Five Trustees and one advisors to the Board (2020: 11 Trustees and two advisors to the Board) claimed for travel, subsistence and accommodation expenses incurred whilst representing the charity at official functions and in order to attend Board and Committee meetings.

2021 2020
£ £
Trustees’ and advisors’ expenses 1,193 4,845
======== ========

34

HCPT (HOSANNA HOUSE AND CHILDREN’S PILGRIMAGE TRUST) Company number: 1095198

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 OCTOBER 2021

5. TANGIBLE FIXED ASSETS Group Group HCPT HCPT
2021 2020 2021 2020
£ £ £ £
In France (note 5a)
Freehold land and buildings 926,171 950,025 926,171 950,025
Furniture and fittings 188,589 236,061 3,072 3,789
Motor vehicles 99,171 114,753 85,641 96,346
Computer Equipment 892 1,897 - -
------------------- ------------------ ------------------- -----------------
1,214,823 1,302,736 1,014,884 1,050,160
In the UK (note 5b)
Computer equipment 17,549 24,666 17,549 24,666
Furniture and fittings 3,966 4,717 3,966 4,717
----------------- ----------------- ------------------- -----------------
21,515 29,383 21,515 29,383
----------------- ----------------- ------------------ -----------------
1,236,338 1,332,119 1,036,399 1,079,543
========== ========== ========== ==========

The Trustees consider there is no material difference between the carrying value and market value of land and buildings shown above.

In the year to 31 October 2021 £50,000 was paid for the development of new software. In accordance with HCPT’s accounting policy this was written off in the year the expenditure was incurred.

a) In France (group) Freehold
Land & Computer Furniture Motor
Buildings Equipment & Fittings Wheelchairs Vehicles Total
£ £ £ £ £ £
Cost
At 31 October 2020 1,606,365 19,609 510,739 30,199 379,439 2,546,351
Additions - - 820 - - 820
Exchange losses on fixed - (366) (19,242) - (1,652) (21,260)
assets held
------------------- -------------- ---------------- --------------- --------------- -------------------
At 31 October 2021 1,606,365 19,243 492,317 30,199 377,787 2,525,911
------------------ ------------- ---------------- --------------- --------------- -------------------
Depreciation
At 31 October 2020 656,340 17,712 274,678 30,199 264,686 1,243,615
Charge for the year 23,854 639 29,050 - 13,930 67,473
----------------- ------------- ----------------- ---------------- ---------------- ------------------
At 31 October 2021 680,194 18,351 303,728 30,199 278,616 1,311,088
----------------- ------------- ----------------- ---------------- ---------------- -------------------
Net Book Value
At 31 October 2021 926,171 892 188,589 - 99,171 1,214,823
========= ======== ========= ======== ======== ==========
At 31 October 2020 950,025 1,897 236,061 - 114,753 1,302,736
========= ======== ========= ======== ========= ==========

35

HCPT (HOSANNA HOUSE AND CHILDREN’S PILGRIMAGE TRUST) Company number: 1095198

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 OCTOBER 2021

5. TANGIBLE FIXED ASSETS (continued) Furniture
Computer &
b) In the UK (group) Equipment Equipment Total
£ £ £
Cost
At 31 October 2020 95,956 107,447 203,403
Additions - - -
--------------- -------------- -------------------
At 31 October 2021 95,956 107,447 203,403
---------------- -------------- ------------------
Depreciation
At 31 October 2020 71,290 102,730 174,020
Charge for the year 7,117 751 7,868
---------------- -------------- -----------------
At 31 October 2021 78,407 103,481 181,888
---------------- -------------- ------------------
Net Book Value
At 31 October 2021 17,549 3,966 21,515
======== ======== =========
At 31 October 2020 24,666 4,717 29,383
======== ======== =========
6. INVESTMENTS Group Group HCPT HCPT
2021 2020 2021 2020
£ £ £ £
Investment in subsidiary
Cost at 1 November 2020 - - 4,870 4,870
-------------------- -------------------- -------------------- --------------------
Cost at 31 October 2021 - - 4,870 4,870
========== ========== ========== ==========
Investment property
Cost at 1 November 2020 270,270 270,270 270,270 270,270
Revaluation - - - -
-------------------- -------------------- -------------------- --------------------
Cost at 31 October 2021 270,270 270,270 270,270 270,270
========== ========== ========== ==========
Listed investments at market value
Market value at 1 November 2020 3,933,350 3,747,053 3,933,350 3,747,053
Additions and movement in cash 1,467,006 1,181,128 1,467,006 1,181,128
Disposals (1,448,005) (1,171,747) (1,448,005) (1,171,747)
Net unrealised/realised gains 693,530 176,916 693,530 176,916
-------------------- -------------------- -------------------- --------------------
Market value at 31 October 2021 4,645,881 3,933,350 4,645,881 3,933,350
========== ========== ========== ==========
Listed investments 4,529,123 3,701,519 4,529,123 3,701,519
Cash awaiting investments 116,758 231,831 116,758 231,831
Investment in subsidiary - - 4,870 4,870
Investment property 270,270 270,270 270,270 270,270
-------------------- -------------------- -------------------- --------------------
Market value at 31 October 2021 4,916,151 4,203,620 4,921,021 4,208,490
========== ========== ========== ==========

The Villa owned by HCPT is classified as an investment property as it is used primarily to generate income for the Charity rather than for charitable purposes. The villa was valued in November 2020 and the trustees do not consider that the value has altered since that date.

36

HCPT (HOSANNA HOUSE AND CHILDREN’S PILGRIMAGE TRUST) Company number: 1095198

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 OCTOBER 2021

6. INVESTMENT (HCPT ONLY) (continued)

HCPT (1980) Limited

HCPT holds 100% of the issued share capital of HCPT (1980) Limited, a company incorporated in England. The investment is included at cost of £ 4,870 (2020: £4,870).

HCPT (1980) Limited holds 100% of the issued share capital of HCPT (1980) France SARL, a company incorporated in France.

Relevant financial information regarding HCPT (1980) Limited and its subsidiary HCPT (1980) France SARL is as follows:

CONSOLIDATED PROFIT AND LOSS ACCOUNT 2021 2020
HCPT (1980) Ltd Group £ £
TURNOVER 32,858 12,584
Cost of sales (6,285) (5,205)
----------------- -----------------
GROSS PROFIT 26,573 7,379
Bank interest - -
----------------- -----------------
26,573 7,379
Administration expenses (26,418) (19,764)
----------------- -----------------
PROFIT ON ORDINARY ACTIVITIES BEFORE TAXATION 155 (12,385)
Taxation - -
----------------- -----------------
PROFIT ON ORDINARY ACTIVITIES AFTER TAXATION 155 (12,385)
Balance brought forward at 1 November 2020 3,122 15,507
---------------- ----------------
Balance carried forward at 31 October 2021 3,277 3,122
======== ========

The results of HCPT (1980) Limited have been consolidated on the basis of the net profit after transfers to HCPT (Hosanna House and Children’s Pilgrimage Trust).

HCPT (1980) Ltd has not traded during the year.

CONSOLIDATED BALANCE SHEET 2021 2020
£ £
Fixed assets 2,084 3,921
Current assets 41,755 43,405
Creditors falling due within one year (35,692) (39,334)
--------------- ---------------
8,147 7,992
======= =======
Represented by:
Paid up share capital 4,870 4,870
Profit and loss account 3,277 3,122
----------------- -----------------
8,147 7,992
======== =========

37

HCPT (HOSANNA HOUSE AND CHILDREN’S PILGRIMAGE TRUST) Company number: 1095198

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 OCTOBER 2021

6. INVESTMENT (HCPT ONLY) (continued)

Hosanna France

The entity Hosanna France was registered in France on the 1st July 2012 to ensure compliance for our French operations. The entity is wholly owned by HCPT (Hosanna House and Children’s Pilgrimage Trust) and was established to enable HCPT to provide accommodation for our summer pilgrims. Hosanna France also provides services to HCPT groups during the Easter pilgrimage.

The relevant financial information for Hosanna France is as follows:

PROFIT AND LOSS ACCOUNT 2021 2020
£ £
Income 242,709 303,162
Expenditure (277,498) (294,321)
-------------------- --------------------
Net income (34,789) 8,841
Funds brought forward 267,107 258,266
------------------- -------------------
Balance carried forward at 31 October 232,318 267,107
========= =========
BALANCE SHEET
Fixed assets 197,854 248,655
Debtors and prepayments 43,069 41,045
Cash at bank and on deposit 27,633 12,569
Creditors: amounts falling due within one year (36,238) (35,162)
----------------- -----------------
NET CURRENT ASSETS 232,318 267,107
======== ========
Represented by:
Profit and loss account 232,318 267,107
======== ========
7. STOCK The Group HCPT
2021 2020 2021 2020
£ £ £ £
Goods for resale 21,226 22,565 - -
======= ======= ======= =======
8. DEBTORS AND PREPAYMENTS The Group HCPT
2021 2020 2021 2020
£ £ £ £
Trade debtors - - - -
Legacy debtors 789,424 169,256 789,424 169,256
Sundry debtors 15,672 41,031 3,253 14,802
Amounts owed by subsidiary undertaking - - - 13,514
Taxation and social security 3,558 9,499 - 2,119
Prepayments 35,298 22,230 34,551 20,942
------------------- ------------------- ----------------- -----------------
843,952 242,016 827,228 220,633
========== ========= ========= =========

38

HCPT (HOSANNA HOUSE AND CHILDREN’S PILGRIMAGE TRUST) Company number: 1095198

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 OCTOBER 2021

9. CASH

Cash balances in 2021 include deposits and fares by instalments held over from the 2020 cancelled pilgrimages, where pilgrims have not requested refunds, and also money raised to pay for sponsored children at Easter 2020. This will be expended when pilgrimages are undertaken again by the people or groups concerned.

10. CREDITORS: falling due within one The Group HCPT
Year 2021 2020 2021 2020
£ £ £ £
Trade creditors 22,412 6,612 17,957 3,682
Deferred income 168,816 312,423 166,669 312,423
Accruals 29,547 46,861 24,966 42,080
Amounts owed to subsidiary undertaking - - - -
Taxation and social security 29,086 28,065 14,541 13,662
Loan 11,600 11,600 11,600 11,600
Other creditors 103,119 86,368 86,820 63,810
----------------- --------------- --------------- ----------------
364,580 491,929 322,553 447,257
======== ======== ======== ========

The loan is interest free and repayable upon demand.

11. DEFERRED INCOME Group HCPT
£ £
Balance as at 1 November 2020 312,423 312,423
Amounts released to income or transferred to group (154,816) (154,816)
funds
Amount deferred in the period 11,209 9,062
---------------- ---------------
Balance as at 31 October 2021 168,816 166,669
======== ========

Deferred income is made up of payments received in advance for pilgrimages and fundraising events due to take place during the next financial year.

12. STATEMENT OF FUNDS Balance Balance
1 November Transfers 31 October
2020 Income Expenditure and gains 2021
£ £ £ £ £
General Accumulated Fund 2,453,610 1,379,455 (1,359,975) 677,557 3,150,647
========== ========= ========= ======== ==========
Designated funds
Future Easter Sponsorship 230,455 8,615 - 5,850 244,920
Freehold property 1,220,296 - - (23,854) 1,196,442
HH Window Fund 6,314 - - - 6,314
HCPT Groups 2,325,830 378,143 (17,135) 62,500 2,749,338
Group Donations 52,888 12,500 - (5,900) 59,488
Vehicle Replacement 200,000 - - - 200,000
St Jude’s Society 187,800 - - (15,000) 172,800
-------------------- ------------------ ------------------ ------------------ --------------------
Total Designated Funds 4,223,583 399,258 (17,135) 23,596 4,629,302
========== ========= ========= ======== ==========

39

HCPT (HOSANNA HOUSE AND CHILDREN’S PILGRIMAGE TRUST) Company number: 1095198

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 OCTOBER 2021

12. STATEMENT OF FUNDS (continued)

Balance Balance
1 November Transfers 31 October
2020 Income Expenditure and gains 2021
£ £ £ £ £
Restricted Funds
Accessibility Equipment 27,911 - - - 27,911
Bartrès Villa 12,258 - - - 12,258
Hosanna House Appeal Fund 5,425 - - - 5,425
Building Development 45,332 - - - 45,332
Ros’ Fund 41,000 - - (3,000) 38,000
Anna’s Fund 4,198 - - - 4,198
Specific Bequests
Group 56 4,570 - - (3,000) 1,570
Group 73 - 1,000 - (1,000) -
Group 81 6,950 - - (6,950) -
Group 97 - 1,000 - (1,000) -
Group 101 - 5,947 - (3,000) 2,947
Group 139 41,500 - - (3,000) 38,500
Group 148 - 2,000 - (2,000) -
Group 151 14,000 - - (3,000) 11,000
Group 154 31,500 - - (3,000) 28,500
Group 194 7,000 - - (3,000) 4,000
Group 209 - 2,000 - (2,000) -
Group 230 7,000 - - (3,000) 4,000
Group 540 33,195 - - (4,500) 28,695
Scottish Region - 5,000 - (3,000) 2,000
Met South East Region 7,000 - - (3,000) 4,000
-------------------- -------------------- ----------------- ----------------- --------------------
Total restricted funds 288,839 16,947 - (47,450) 258,336
========== ========== ========= ======== ==========
TOTAL FUNDS 6,966,032 1,795,660 (1,377,110) 653,703 8,038,285
========== ========== ========== ======== ==========

The transfers between designated and restricted funds (to)/from the general accumulated fund were as follows: Freehold property fund no longer required: (£23,854) Transfers between funds were made as follows:

Restricted bequests released to groups: (£47,450)

Designated donations released to groups: (£15,050)

40

HCPT (HOSANNA HOUSE AND CHILDREN’S PILGRIMAGE TRUST) Company number: 1095198

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 OCTOBER 2021

Previous year Balance Balance
comparison
1 November Transfers 31 October
2019 Income Expenditure and gains 2020
£ £ £ £ £
General Accumulated 2,731,074 972,710 (1,505,780) 255,606 2,453,610
Fund
========== ========= ========= ======== ==========
Designated funds
Future Easter 36,181 194,274 - - 230,455
Sponsorship
Freehold property 1,244,150 - - (23,854) 1,220,296
HH Window Fund 6,314 - - - 6,314
HCPT Groups 1,869,171 484,651 (75,254) 47,262 2,325,830
Group Donations 20,000 38,138 - (5,250) 52,888
Vehicle Replacement 200,000 - - - 200,000
St Jude’s Society 202,800 - - (15,000) 187,800
-------------------- ------------------ ------------------ ------------------ --------------------
Total Designated 3,578,616 717,063 (75,254) 3,158 4,223,583
Funds
========== ========== ========== ========= ==========
Restricted Funds
Accessibility 27,912 - - (1) 27,911
Equipment
Bartrès Villa 12,258 - - - 12,258
Hosanna House 5,425 - - - 5,425
Appeal Fund
Building 64,662 - (19,330) - 45,332
Development
Ros’s Fund 44,000 - - (3,000) 41,000
Anna’s Fund 4,199 - - (1) 4,198
Specific Bequests
Group 49 - 46 - (46) -
Group 56 7,570 - - (3,000) 4,570
Group 72 - 200 - (200) -
Group 75 - 2,000 - (2,000) -
Group 81 7,800 - - (850) 6,950
Group 139 44,500 - - (3,000) 41,500
Group 151 17,000 - - (3,000) 14,000
Group 154 34,500 - - (3,000) 31,500
Group 194 10,000 - - (3,000) 7,000
Group 230 10,000 - - (3,000) 7,000
Group 540 39,195 - - (6,000) 33,195
Group 719 & young 3,057 - - (3,057) -
helpers
Scottish Region 857 - - (857) -
Met South East - 10,000 - (3,000) 7,000
Region
-------------------- -------------------- ----------------- ----------------- --------------------
Total restricted funds 332,935 12,246 (19,330) (37,012) 288,839
========== ========== ========= ======== ==========
TOTAL FUNDS 6,642,625 1,702,019 (1,600,364) 221,752 6,966,032
========== ========== ========== ======== ==========

41

HCPT (HOSANNA HOUSE AND CHILDREN’S PILGRIMAGE TRUST) Company number: 1095198

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 OCTOBER 2021

13. ANALYSIS OF NET ASSETS Unrestricted Designated Restricted Total
BETWEEN FUNDS £ £ £ £
Tangible assets - 1,236,338 - 1,236,338
Investments 2,166,813 2,749,338 - 4,916,151
Current assets 1,348,414 643,626 258,336 2,250,376
Current liabilities (364,580) - - (364,580)
-------------------- -------------------- ------------------- ---------------------
3,150,647 4,629,302 258,336 8,038,285
========== ========== ========= ===========
Previous year comparison
ANALYSIS OF NET ASSETS Unrestricted Designated Restricted Total
BETWEEN FUNDS £ £ £ £
Tangible assets - 1,332,119 - 1,332,119
Investments 1,877,790 2,325,830 - 4,203,620
Current assets 1,067,749 565,634 288,839 1,922,222
Current liabilities (491,929) - - (491,929)
-------------------- -------------------- ------------------- ---------------------
2,453,610 4,223,583 288,839 6,966,032
========== ========== ========= ===========
14. FORWARD COMMITMENTS 2021 2020
£ £
The total of future minimum lease payments under non-cancellable operating
leases for each of the following periods:
Land and buildings: Not later than one year 27,000 27,000
Land and buildings: Later than one year and not later than five years 20,250 47,250
Land and buildings: Later than five years - -
Other plant and machinery: Not later than one year 667 800
Other plant and machinery: Later than one year and not later than five years - 667

15. CAPITAL COMMITMENTS

There were no capital commitments as at 31[st] October 2021.

16. RELATED PARTY TRANSACTIONS

Three Trustees made donations totalling £1,939 (2020 –Three Trustees made donations totalling £1,863).

Transactions with Hosanna France, HCPT (1980) Limited and HCPT (1980) France SARL are not disclosed as exemption has been taken under Financial Reporting Standard 102 for wholly owned subsidiaries.

There were no related party balances outstanding at 31[st] October 2021 (2020: none).

17. TAXATION

The company is a registered charity and as such is exempt from taxation on its income so long as it is applied for charitable purposes.

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HCPT (HOSANNA HOUSE AND CHILDREN’S PILGRIMAGE TRUST) Company number: 1095198

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 OCTOBER 2021

18. COMPARATIVE 2020

8.
COMPARATIVE 2020
Unrestricted Designated Restricted Total Funds
Funds Funds Funds 2020
Notes £ £ £
INCOME FROM:
Donations, legacies and grants 2a 848,988 194,274 12,246 1,055,508
Activities for raising funds 2b 62,334 522,789 - 585,123
Investment income 2d 46,626 - - 46,626
Charitable activities 2c 14,762 - - 14,762
---------------------- --------------------- ------------------- --------------------
Total income 972,710 717,063 12,246 1,702,019
---------------------- --------------------- ------------------ ---------------------
EXPENDITURE ON:
Raising funds
Fundraising trading 341,880 25,085 - 366,965
Charitable activities
Regular 1,163,900 50,169 - 1,214,069
Building Development Fund - - 19,330 19,330
---------------------- -------------------- ------------------ --------------------
Total expenditure 3a 1,505,780 75,254 19,330 1,600,364
---------------------- --------------------- ------------------ --------------------
Net gains on investments 176,916 - - 176,916
Gains/(losses) on foreign exchange 44,836 - - 44,836
---------------------- --------------------- ------------------ --------------------
Net (expenditure)/income (311,318) 641,809 (7,084) 323,407
Transfers between funds 12 33,854 3,158 (37,012) -
-------------------- --------------------- ------------------- --------------------
Net movement in funds for year (277,464) 644,967 (44,096) 323,407
Funds brought forward 12 2,731,074 3,578,616 332,935 6,642,625
---------------------- --------------------- ------------------- ---------------------
Funds carried forward 12 2,453,610 4,223,583 288,839 6,966,032
========== ========== ========= ==========

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