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2021-03-31-accounts

The Sacred Hearts Sisters 1983 Charitable Fund

Annual Report and Accounts

31 March 2021

Charity Registration Number 287232

Contents

Reports

Reports
Reference and administrative details
of the charity, its trustees and advisers 1
Report of the trustees 2
Independent auditor’s report 21
Accounts
Statement of financial activities 26
Balance sheet 27
Statement of cash flows 28
Principal accounting policies 29
Notes to the accounts 35

Reference and administrative details of the charity, its trustees and advisers

Trustees Sister Catherine Collins
Sister Kathleen Corbett
Sister Nora Emperor
Sister Eileen McLoughlin
Sister Mary Mangan
Sister Lorna Walsh
The Superior General Sister Mary Mangan
The Secretary General Sister Kathleen Corbett
The General Treasurer Sister Catherine Collins
Principal address Chigwell Convent
803 Chigwell Road
Woodford Bridge
Essex
IG8 8AU
Telephone 020 8504 1624
Website www.sacredheartsjm.org
Charity registration number 287232
Auditor Buzzacott LLP
130 Wood Street
London
EC2V 6DL
Bankers HSBC plc
91 High Street
Brentwood
Essex
CM1 4RU
Solicitors Stone King LLP
Boundary House
91 Charterhouse Street
London
EC1M 6HR
Insurance Brokers DE Ford Insurance Brokers Limited
Poppleton Grange
Low Poppleton Lane
York
YO26 6GZ

The Sacred Hearts Sisters 1983 Charitable Fund 1

Report of the trustees Year to 31 March 2021

The trustees present their statutory report together with the accounts of the Sacred Hearts Sisters 1983 Charitable Fund (the charity) for the year ended 31 March 2021.

The accounts have been prepared in accordance with the accounting policies set out on pages 29 to 34 and comply with applicable United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). The principles set out in Statement of Recommended Practice on “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), effective from accounting periods commencing 1 January 2015 or later”.

Introduction

The Congregation of the Sisters of the Sacred Hearts of Jesus and Mary (the Congregation) is an International Roman Catholic Religious Congregation supporting 112 sisters worldwide. It was founded in France in 1866. The United Kingdom Congregation became an independent entity in 1903 and has its headquarters at Chigwell Convent in Essex.

The sisters have, over the years, engaged in a variety of services for the poor and deprived, and serve in the United Kingdom, Ireland, USA, Zambia, Uganda, El Salvador and the Philippines.

The Mission Statement of the Sisters is:

“We, the Sisters of the Sacred Hearts of Jesus and

Mary,

urged by the compassion of Christ

and responsive to the anguish of Peoples and Planet,

are called to help shape Communities

of Gentleness, Justice and Peace

that witness to the healing, liberating and empowering

love of God.”

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Report of the trustees Year to 31 March 2021

Introduction (continued)

With effect from midnight on 31 March 2019, in accordance with a legal transfer of undertakings and a resolution of the trustees, certain of the activities, assets and liabilities of the Charitable Trust were transferred as a going concern into a newly formed Charitable Incorporated Organisation (CIO), Sisters of the Sacred Hearts of Jesus and Mary CIO, (the CIO) (Charity Registration Number: 1179804).

Mission

Since the transfer of the majority of assets and congregational activities to the newly formed charitable CIO, The Sacred Hearts Sisters 1983 Charitable Trust continues to support the main activity of education and running two schools, St John’s Special School, Chigwell and Pield Heath House School, Uxbridge.

Activities, achievements, specific objectives and relevant policies

Education

The trustees are responsible for both schools providing education and care of pupils with special needs. Both schools throughout the year, following on from last year, continue to have discussions with external partners, local diocese and the Catholic Education Service in terms of future governance and leadership.

Pield Heath House School, Uxbridge

Pield Heath House School in a non-maintained, co-educational school for young people with special educational needs between the ages of 7 and 19 years, recognised by the Department for Education and under the Trusteeship of The Sacred Hearts Sisters 1983 Charitable Fund.

The school offers day, residential and respite provision to young people with moderate to severe learning difficulties, autistic spectrum disorders and associated speech, language and communication difficulties within a warm and caring environment where daily life is underpinned by Christian principles.

Since its foundation in 1901, Pield Heath House School has helped young people with learning difficulties to develop their full potential. They have a highly skilled and deeply committed team that prides itself on providing a holistic approach to education, within a caring, spiritual environment where every young person is of equal importance, valued for what they are and encouraged to reach their maximum potential. The staff are passionate in their work with the young people to encourage their progress, celebrate their achievements and inspire confidence in their futures, in close partnership with parents and carers. The school’s main purpose is to maximise our students life experience to enable their independence and inclusion in the wider community.

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Report of the trustees Year to 31 March 2021

Activities, achievements, specific objectives and relevant policies (continued)

Education (continued)

Pield Heath House School, Uxbridge (continued)

During the financial year 2020-21 the number of students ranged between 98-100 with the majority of the students from Hillingdon Local Authority due to the demand for places for young people with additional needs in the borough. All students have an Education Health and Care Plan which outlines their needs and the provision required to meet those individual needs. Students needs range from moderate to severe with complex learning needs and difficulties in speech language and communication and sensory processing needs.

Students attending the school during the year came from the following Local Authorities:

The school undertook a review of the curriculum provision following the Challenge Partner Quality Assurance Review in December 2019. Middle and senior leaders visited schools catering for a similar cohort of students to investigate provision particularly for those with complex needs. As a result of our collaboration with The Loddon School in February 2020, we adapted their PLLUSS curriculum known as the PH+ curriculum. (Personalised Learning for Life Using Supportive Strategies). In September 2020 this new pathway was implemented.

The school offers three curriculum pathways: the Pre-formal (PH+ Pathway 1), Semiformal (Pathway 2) and Formal (Pathway 3).

Students work toward gaining a range of accreditations starting at Key Stage 3 and Key Stage 4, ASDAN Personal Progress, Transition Challenge and Bronze Award and at Key Stage 5, NOCC qualifications leading to an Award, Certificate or Diploma.

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Report of the trustees Year to 31 March 2021

Activities, achievements, specific objectives and relevant policies (continued)

Education (continued)

Pield Heath House School, Uxbridge (continued)

We held a reverse Advent Calendar to help the local food bank/parish with items they collected for Christmas. Aware that with the way things have been this year and how it is more important than ever to help out anyone who we can. Donations included; tinned food, dried food, packet food, Christmas decorations, small toiletry gift sets, small gifts for boys/girls, nice treats to make a difference to another family’s joy at Christmas.

ROSE MEMORIAL GARDEN

As this has been such an emotional time for everyone, each class in the school was invited to plant a Rose of their choice in the school grounds. This garden will provide us with a place to think and pray for any loved ones we have lost. Thanks to our Outdoor Learning Development Manager for working with the students to plant and maintain this special garden.

MOTHER’S DAY

All members of VBC B very much enjoyed creating special presents for every student to take home to celebrate Mother’s Day on 14 March.

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Report of the trustees Year to 31 March 2021

Activities, achievements, specific objectives and relevant policies (continued)

Education (continued)

Pield Heath House School, Uxbridge (continued)

THE WELL COMMUNITY CAFÉ On 6 November – The team at “The Well” celebrated Black History Month by preparing a special menu – “A Taste of Africa” creating some delicious dishes, Our favourite feedback was “Thank you to all involved with cooking such delicious food. It made me a tad emotional as it bought back childhood memories of my dad's cooking”

Covid-19

As was expected by all schools across the country during the first National Lockdown in March 2020, a comprehensive remote learning plan was implemented which involved online lessons, remote therapy, resources sent home and providing partial provision on a rota basis. A communication framework was implemented to ensure families whose students remained at home kept in contact and continued learning. Those families who required access to IT were provided with iPads or laptops.

In September 2020 the majority of students returned to school. The initial survey of parents indicated that they felt confident for their child or young person to return. Of the 100 students, only 1 student remained at home due to her parents’ high level of anxiety and anticipation of a “second wave”.

All staff completed a survey prior to returning and risk assessments were completed accordingly. All staff returned to school in September. Those who identified themselves as having high levels of anxiety were risk assessed and support put in place. Training for all staff was held regarding the precautionary measures in place as a result of the risk assessment carried out to maximise risk reduction measures.

All staff were provided with their individual PPE packs, had training in the use of PPE and the safe ways to dispose thereof. The school was divided into six bubbles (5 education) which enable a rota of playtimes and breaks.

Students did not leave their class for specialist lessons in order to minimise traffic around the school. One-way systems were put in place and arrows to provide visual aids painted on the ground. Specialist teachers and therapists visited classes with instruction to change PPE between each classroom setting.

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Report of the trustees Year to 31 March 2021

Activities, achievements, specific objectives and relevant policies (continued)

Education (continued)

Pield Heath House School, Uxbridge (continued)

Covid-19 (continued)

During the period September – October 2020 we were fortunate to have no reported positive cases of Covid-19 up until 5 October. By the end of the half term we had 1 teacher and 4 SSA’s diagnosed as Covid positive and 8 teachers and 25 SSA’s having to selfisolate. The main reason for this was the lack of social distancing outside of the school. The school consulted and took advice from Public Health England (PHE) and the Department for Education (DFE) as outlined in national guidelines.

This had some impact on the teaching and learning as non-specialist teachers were delivering lessons they would previously have had no experience.

In January the return of students was delayed until Monday 11 January which provided the school with time to set up the testing site infrastructure and train those who volunteered to support the process. The school reopened to those young people identified as most vulnerable or those whose parents were key workers.

Students attending onsite provision during the period January to March ranged between 54% and 58%. A number of specialist staff did not attend due to Covid related anxiety and this led to non-specialists delivering lessons. Most staff engaged with the process and were tested twice weekly and students were tested once weekly.

As in most schools nationwide the pandemic had a traumatic effect on students, staff and their families.

In spite of these challenges it enabled us to evaluate and re-invent how we deliver our provision. It provided us the opportunity to enhance our person-centred approach with a focus encapsulating all areas of learning, particularly the emotional wellbeing and resilience of the students and staff.

School improvements

KS2 and KS3 classrooms and school corridors were redecorated as part of the plan to standardise a low arousal environment throughout the school. All the carpets throughout the common areas have been replaced to compliment this environment. Much needed storage space in St Paul’s and the VBC Staff Resource room was added.

Break out rooms in two complex needs classrooms have been refurbished which will enable those students who may require 1:1 work space for short periods or to provide a sensory area for the class. In addition, work including disability access to the school community café, The Well, has been completed.

Further development of the IT infrastructure was also carried out.

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Report of the trustees Year to 31 March 2021

Activities, achievements, specific objectives and relevant policies (continued)

Education (continued)

St John’s Special School, Chigwell

St John’s RC School is a non-maintained special school offering day provision for pupils aged 5 to 19 with a wide range of needs including moderate to severe learning difficulties, autistic spectrum disorder (ASD) and those with associated speech, language and communication difficulties. The School continues to be very popular with parents and Local Education Authorities (LEAs), with 96 pupils on roll.

Since September 2015, St John’s has been in partnership with New City College and provides a 19-25 provision for those students who are not quite ready for mainstream college aiming to bridge this gap by meeting their individual needs. The post-19 provision continues to be very successful.

Based in Woodford Green, Essex the School has students from across the county as well as the London Boroughs. Although a Roman Catholic school, St John’s welcomes pupils from all faiths and backgrounds.

St John’s is very proud of its team of highly skilled and dedicated staff, including music, speech and language therapists, learning mentors and learning support assistants who work together to ensure that all pupils achieve and grow in confidence and self-esteem within a community of care and learning; developing their independent living skills to their full potential. By offering a curriculum that is varied and challenging and allowing students to progress through the School, many will achieve accreditation through AQA awards, OCR, Asdan and BTEC where appropriate.

The number of students with language and communication difficulties has increased over the past twelve months and students who present with challenging behaviours are less common than in previous years.

Currently the following Local Education Authorities (LEAs) place children at St John’s:

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Report of the trustees Year to 31 March 2021

Activities, achievements, specific objectives and relevant policies (continued)

Education (continued)

St John’s Special School, Chigwell (continued)

The School continues to offer a broad and balanced curriculum, which meets the needs of our young people and promotes progress and preparation for adulthood. We offer a range of practical subjects which include horticulture, sport and enterprise The students complete BTEC qualifications in all of the aforementioned areas but in the forthcoming year this will be reviewed due to the changing cohort of students and their emerging needs.

The school offers a pre-formal, semi-formal and formal curriculum depending of the pupils’ individual needs and the targets set out in their Educational Health and Care Plans.

The school currently has 96 pupils on role from 10 different local authorities. We receive a number of referrals throughout the year and we are currently full for September 2022, depending on confirmation of funding. The pupils all have an Educational Health and Care Plan and their individual needs range from student’s global development delay, autism and downs syndrome. A large number have communication difficulties, which is why we are very fortunate to have a team of Speech and language therapists, music therapist and occupational health therapist on site.

The school has a very stable staff with limited turnover. A few members of staff have retired over the past year and two of the learning support assistants have moved on to further develop their careers. The more complex nature of some of our pupils has meant that we have increased the number of learning support assistants and we have employed another Speech and Language therapist to meet the needs of our young people’s Educational, Health and Care Plans.

Operational and Covid-19

During the first two weeks of the initial lockdown, the school was closed. This gave the school time to organise and set up systems for those students coming into school and those where parents had chosen to keep them at home (the majority initially).

Communication systems were set up to ensure that staff contacted the families daily by email or phone. Families without access to ICT were provided with equipment such as iPads and laptops. Every student was posted a ‘hard copy’ of the upcoming week’s class work weekly.

Initially, the majority of the families choose to keep their children at home, with the lowest number of students on site being 8. This number slowly increased with an initial average of 40-50%, finally stabilising at around 80% before all students returned to school. Currently there are 3 students still at home for specific reasons – but the ongoing virtual offer remains for them, and the Head reports that staff have ensured high levels of contact have been maintained, including access to school assemblies and religious celebrations.

In January the school set up an onsite testing centre for all staff, to enable testing twice a week. Since April, staff and students. that are able, test at home using lateral flow tests.

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Report of the trustees Year to 31 March 2021

Activities, achievements, specific objectives and relevant policies (continued)

Education (continued)

St John’s Special School, Chigwell (continued)

Operational and Covid-19 (continued)

Temperatures of staff and children are taken on entry to the school daily, and this remains in place now.

Staff have been prioritised for vaccination, and currently there are only 2 out of 106 staff who have not been vaccinated.

When students were at home, therapists played an additional role in providing virtual sessions such as cooking, music sessions etc. The school felt that this had a significant positive impact and was well received. The SALT, OT and Music therapist all played a very proactive part in delivering this offer.

The school reports very good feedback from parents with regards to the virtual offer and level of creative communication provided by school. In addition to therapeutic activities, the school provided social stories, sensory stories, cooking activities, class live sessions, assemblies etc

The school had evidence of numerous Risk Assessments – which staff report had been reviewed and reissued repeatedly for all aspects of school life. Along with guidance, the school increased its cleaning regime, set up a one-way system in some parts of the school, masks are worn when walking around outside class and on transport. Hot meals were reinstated during the Lent term. The staff recognised that in June the guidance may relax further, but staff have kept the arrangements in place until the end of the Summer term.

School improvements

We have invested in a track on the top field which has proved very popular. Due to lockdown both our staff and students had seen a reduction in the amount of physical activity they had been doing so the installation of the track on the field has proved very popular. The track is marked with distance markers and 8 laps is the equivalent to walking a mile.

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Report of the trustees Year to 31 March 2021

Activities, achievements, specific objectives and relevant policies (continued)

Education (continued)

St John’s Special School, Chigwell (continued)

School improvements (continued)

We have also purchased a number of bicycles, balance bikes and scooters which have been used on both the field and in the playground. This has encouraged the students to use the bikes in a safe and enclosed space, something they find difficult to experience offsite.

This year we have also installed a number of raised beds on the field and next to the greenhouse. These have been used by the students to grow vegetables and flowers. They have not only helped in the horticulture lessons but in a number of other areas of the curriculum.

The kitchen in the post 16 block has been completely redeveloped, improving the old kitchen by increasing the size and updating the equipment. The old kitchen has been redeveloped into a new classroom.

We have also installed a new sound and recording system in the gym which will greatly enhance the delivery of assemblies and drama and music lessons and productions. It will also enable us to use the system on the field when we return to sports and fun days.

A lot of the ICT equipment has also been updated and improved.

We now have new fire safety compliant fire doors throughout the whole site.

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Report of the trustees Year to 31 March 2021

Future plans

Pield Heath is hoping to develop the Sixth Form Complex Needs Hub to further enhance the PH+ curriculum, developing students independent and functional skills within a bespoke learning environment and to review the current residential provision on offer in order to meet the changing needs of the current student population.

Both schools continue to ensure pupil numbers are maintained and continue to provide pupils with the highest standards and support to ensure all children ae supported and cared for throughout their education.

Financial review

Results for the year

A summary of the year’s results can be found on page 26 of this report and accounts.

The statement of financial activities shows net income and an increase in funds during the year of £506,714 (2020 – £437,427) with total income amounting to £8,813,048 (2020 - £8,484,468) and expenditure totalling £8,306,334 (2020 - £8,047,041).

Total income includes £8,684,692 (2020 - £8,316,612) of education fees and related charges generated by the charity’s educational establishments.

Other income includes donations and sundry income in the year.

Total expenditure comprises expenditure on the charity’s schools and educational establishments of £8,306,334 (2020 - £8,038,794). The major part of the expenditure on both the schools is staff costs which totalled £6,658,054 (2020 - £6,343,402) representing payments to the schools’ staff.

Deducting expenditure from income for the year gives a net income figure for the year of £506,714 (2020 – £437,427).

Reserves policy and financial position

Reserves policy

The trustees of the charity have examined the need for free reserves i.e. those unrestricted funds not invested in tangible fixed assets, designated for specific purposes or otherwise committed. The trustees consider that, given the nature of the charity’s work going forward in respect to education, the level of free reserves should be between 3 and 6 months’ projected expenditure.

Financial position

The charity balance sheet shows total reserves of £6,927,776 (2020 - £6,421,062).

Included in this figure was an amount of £693,329 (2020 - £690,429) which was restricted. These monies had either been raised for, and their use restricted to specific purposes, or they comprised donations subject to donor imposed conditions. Full details of these restricted funds can be found in note 14 to the accounts, together with an analysis of movements in the year.

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Report of the trustees Year to 31 March 2021

Financial review (continued)

Reserves policy and financial position (continued)

Financial position (continued)

The tangible fixed assets fund totals £2,158,806 (2020 - £2,061,182) and is represented by those tangible fixed assets not financed out of restricted funds.

The balance of general funds at 31 March 2021 was £4,075,641 (2020 - £3,669,451). These funds are deemed sufficient by the trustees being consistent with the reserves policy set out above.

Governance, structure and management

Governance

In terms of Canon law, the Congregation is governed at an international level by the Congregational Leader and her General Council. They are elected every six years at a General Chapter which is a meeting of representatives from all areas of the Congregation. Members of the General Council are chosen for their personal qualities, their understanding and experience of the ministries of the Sisters throughout the Congregation and to secure a good skills mix among them.

In terms of Civil law, the charity is governed by a trust deed dated 23 May 1983 and is a registered charity, Charity Registration No. 287232. The trustees of the charity are the six members of the Leadership Team. As all trustees are members of the Congregation they have a detailed knowledge of the work of the charity and of its structure. On being appointed, new trustees spend some time with those trustees leaving office. They also meet with the Congregation’s Professional advisers in order to obtain a full briefing of their responsibilities and the charity’s position. They have also attended appropriate study days.

According to the Trust Deed the maximum number of trustees shall not exceed eight in number. They are – The Congregational Leader, four Team Members, General Secretary and the General Treasurer.

During the year all or some of the trustees attended:

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Report of the trustees Year to 31 March 2021

Governance, structure and management (continued)

Governance (continued)

The names of the trustees who served during the year are set out as part of the reference and administrative details on page 1 of this annual report and accounts. Brief biographical details on each of the trustees in office at the date on which this report was signed are given below:

Sister Catherine Collins

Sister Catherine entered the Congregation in February 1964. After qualifying as a teacher in 1971, she taught children with special needs in Pontville, Ormskirk, Lancashire for three years. In 1975 she was assigned to a teaching position at Lwitikila Girl’s Secondary School in Zambia, becoming principal of the school for her last three years there. From 1987 until 2002 she ministered in California, teaching in the Sacred Heart Elementary School from 1987 to 1997, after which she went to St Louis University to study at the Institute for Religious Formation. From 1998 Sister Catherine worked in the Regional Office of the Congregation in California until 2002 when she was appointed Congregational Leader, a position she held until 2008. After a short period in the Philippines she was appointed General Treasurer in January 2012.

Sister Kathleen Corbett

Sister Kathleen entered the Congregation in September 1964. After qualifying as a State Registered Nurse she worked as a theatre nurse in St Winefred’s Hospital Cardiff from 1974 until 1978. She joined the staff of our Convalescent Home in Kelton, Aigurth, Liverpool and worked there until 1985. She followed a course in tropical medicine and obtained a certificate in Tropical Medicine at Liverpool School of Tropical Medicine, University of Liverpool. In 1986 she was missioned to Zambia where she worked for twenty years.

On returning to the UK she obtained a Certificate in Further Education at the University of Wales. She returned to Zambia and was appointed Principal of the School of Nursing in Chilonga Hospital. She remained in post until she was made Matron of Chilonga Hospital, Mpika, Zambia.

Sister Kathleen was then appointed to the role of superior/administrator of our mission in Mbala, Zambia. She attended a Training for Formation programme in Kalundu Study Centre, Lusaka and has, since 1989 been involved in administration and formation within the Congregation. She spent two years in Uganda doing Pastoral Ministry in Mukono. Returning to the UK in 2009 she took up the post of Superior in our Residential Care Home in Herne Bay. Since 2009 she has been involved in the formation programme of our newer members. She was elected to the Leadership Team in August 2014.

Sister Nora Emperor

Sister Nora entered the Congregation in September 1967. She trained as a cook following the City and Guilds course at Guildford College, Surrey. After completion of the course she worked in St Dominic’s School, Hambledon, Surrey and later went to work in The Jane Hodge Residential Care Home in Cardiff. When Marian House Nursing Home was opened in 1988 she was appointed to organise the kitchen. She remained there until 1994 when she was missioned to Zambia, Africa.

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Report of the trustees Year to 31 March 2021

Governance, structure and management (continued)

Governance (continued)

Sister Nora was trained as a Formator at the Kalundu Study Centre, Lusaka and for the next twelve years worked in the Formation programme of our newer members both in Zambia and in the UK.

On her return to Zambia in 2006 she was appointed co-ordinator of Sunsuntila, the Day Care Centre for children orphaned by the AIDS epidemic. She remained at the Centre in Mbala until she was elected to the Leadership Team in August 2014.

Sister Eileen McLoughlin

Sister Eileen entered the Congregation in 1976 having trained as a Primary School Teacher in Glasgow, Scotland. She taught initially in Cranleigh Residential School for Children with special needs and then for nine years in St John Fisher Primary School in Loughton, Essex.

In 1999 Sister Eileen became the Vocations Promoter for the UK and Ireland before being assigned to Colombia in 2003. There she initiated a programme for young people and adults with special needs in a very poor part of Bogota. Sr Eileen, returned to England in 2002 and later become part of the leadership team in 2008 and is still a member of the present team.

Sister Mary Mangan

Mary Mangan was born in Ireland in 1943. She is a teacher by profession having qualified in 1967 and with twenty three years’ experience between the classroom and Principal of Schools. She was instrumental in handing over a school to another body that carried on the educational work. In 1990 she went to Ireland to develop a service for children/adults with Intellectual Disability – to de-institutionalise the service and set up a community based service.

During 1996 - 2002 she served on the Congregation’s Leadership Team. In 2002-2003 she took a Sabbatical. During 2003 - 2010 she worked with an NGO Ruhama in Dublin, Ireland with women affected by prostitution and women trafficked for sexual exploitation. She retired in 2010 but continued to raise awareness around human trafficking and was influential in setting up an inter-congregational group of religious in Dublin, Ireland to raise awareness against Human Trafficking. She was a member of the Core Group of a Religious European Network against Trafficking Exploitation. She was also involved in spiritual direction ministry. Throughout her career she kept abreast of human development and spiritual growth programmes. In 2014 at the Congregation’s General Chapter she was elected Congregational Leader of the Sisters of the Sacred Hearts of Jesus and Mary.

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Report of the trustees Year to 31 March 2021

Governance, structure and management (continued)

Governance (continued)

Sister Lorna Walsh

Sister Lorna joined the Congregation in 1966. She had trained as a teacher at Notre Dame College, Liverpool before joining the Sisters. She taught in St Dominic’s Primary School, Homerton and then in St John’s Open Air School and when the school closed she went with the students to St Dominic’s School, Hambledon as Deputy Head. While at St Dominic’s, Sister Lorna obtained a BSc from the Open University and in 1976 went to Sacred Heart School, Dagenham as a Science Teacher. She was appointed as Head of Science. When Sacred Heart School merged with Bishop Ward School to become All Saints School, Sister Lorna was appointed as Head of Science for the combined school. In 1990 Sister Lorna was elected to the Leadership Team as Councillor and served for six years until 1996. She then moved to California and worked in low cost housing with the Sisters of Mercy becoming a Senior Manager and working with the homeless population of San Francisco. In 2014 she returned to the UK and was elected onto the Leadership Team.

Trustees’ responsibilities

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

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

The trustees are responsible for keeping proper accounting records that are sufficient to show and explain the charity’s transactions and disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the accounts comply with the Charities Act 2011, the applicable Charity (Accounts and Reports) Regulations and the provisions of the charity’s trust deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

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Report of the trustees Year to 31 March 2021

Governance, structure and management (continued)

Key management

The trustees consider that they together with the Headteachers of the schools, along with the Executive Principal, comprise the key management of the charity in charge of directing and controlling, running and operating the charity on a day to day basis.

All trustees are members of the Congregation they receive no remuneration or reimbursement of expenses in connection with their duties as trustees or key management.

The pay of the Headteachers of the schools is reviewed by the governors and is based on the School Teachers Pay and Conditions Document and Statutory Regulations affecting the employment and conduct of teaching staff, and for associate staff the National Joint Council for Local Government Services Terms and Conditions.

Structure and management reporting

The trustees are ultimately responsible for the policies, activities and assets of the charity. They meet regularly to review developments with regard to the charity or its activities and make any important decisions. When necessary, the trustees seek advice and support from the charity’s professional advisers. The day-to-day management of the charity’s activities, and the implementation of policies, is delegated to the appropriate members of the Congregation or senior staff.

The charity is connected also to Harmony House Community Interest Company (Company Registration No 06565448 (England and Wales)). Several of those who served as trustees of the charity during the year are directors of the company. There were no transactions between the charity and the company.

Working with other organisations

The charity has worked closely with other organisations, charities and public bodies. Working together enhances communication and understanding thus enabling our services and ministries to provide more efficiently and effectively and avoids the duplication of effort. Some of the organisations with which the charity has cooperated during the year are as follows:

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Report of the trustees Year to 31 March 2021

Governance, structure and management (continued)

Public Benefit

Both the charity and the religious Congregation are called to serve by the words of the founder of the Congregation, Father Victor Braun:

“There are two things in life, Jesus Christ and the poorest of God’s people”

The main area in which the charity has provided public benefit is in its educational activities. While the Congregation is no longer able to provide teaching by Sisters in the UK, the work of our schools, all focused on pupils with special needs, continues to produce excellent results. All pupils are assessed by Local Authorities.

Both schools maintain a Catholic ethos, whilst welcoming pupils from all faiths and religious backgrounds. Members of the Congregation, all with many years of specialist experience, voluntarily serve on the schools’ boards of governors, providing guidance and assistance as required.

One Sister is Executive Principal of our two schools and attends all Governors’ meetings, interviews and deals with all legal matters pertaining to employment and training of staff. She reports to the trustees every three months.

Risk management

In line with the requirement for trustees to undertake a risk assessment exercise and report on the same in their annual report, the trustees have looked at the risks and have reviewed the measures already in place, or needing to be put in place, to deal with them.

The trustees and governors continue to review and update the risks as well as the documents and procedures in place. This process is deemed particularly important during the current Covid-19 pandemic.

The trustees have identified the following main areas of risk which may impact on the charity:

The Sacred Hearts Sisters 1983 Charitable Fund 18

Report of the trustees Year to 31 March 2021

Governance, structure and management (continued)

Risk management (continued)

Covid-19

Governance and management

Safeguarding

Financial

Reputational

Operational

The Sacred Hearts Sisters 1983 Charitable Fund 19

Report of the truste•s Year to 31 March 2021 Govemanc•, struduro and managomont Iconllnued) Rlsk managem•nt (continued) Operation81 (continued) Leadership and senKJr management teams feceive tralnlng in all aspects of Health and Safety so as to be aware of the risks and to put in place procedures to deal with them. Trustees meet with our Health & Safety Consultsnls on a regular basis. We also have a risk management eonsultant who advises us on new regulatsons and visits the premise$ that are used by the public on a regular basis. Having assessed the major rfsks to which the charlty is exposed. the Iruslees believe that by monitoring reserve levels, by gnsuring controls exist over key financial systems and by gxamining the operational and business risks faced by the charity, they have established effective syst6ms to mitigate those rfsk$. Fundralslng stalomenl We manage our own fundraising activities and do not employ the services of a Professional Fundraiser. Any complaints about the quality of our fundraising activities are thoroughly invgstigaled so that we find ways to improve the service. During the year ending 31 March 2021 we have not received any complaints. Some of our funding comes from voluntary donations. The trusts8s are vlgllanl in applying the donations aocofding to the wishes of the donors. The charity applies best practice to protect donors, data and never sells data. It never swaps dats with other organisations, and ensures that tts communication pr8f8rences can be changed at any time. Summary and acknowlodgements This report is a brief summary of the work of the charity during the year to 31 March 2021. The accompanying accounts with this report show the movement of funds in the year ellded 31 March 2021. The InJ$tees wish to record their recognition of the professionalism and commitment of all thelr Staff. volunteers and the individual members of the Congreg8tioll who are involved with the schools. Their d8dicalion and positive approach are very much appreciated. We wish also lo record our thanks to the professional bodies on whose advice and expertise we rely. Approved by the trustees and signed on thelr beh81f by: Sister Catherine Collins Trustee Approved by the trustegs on: 11 January 2022 The Saued H&arts Sisters 1983 Charilable Fund 20

Independent auditor’s report 31 March 2021

Independent auditor’s report to the trustees of The Sacred Hearts Sisters 1983 Charitable Fund

Opinion

We have audited the accounts of The Sacred Hearts Sisters 1983 Charitable Fund (the ‘charity’) for the year ended 31 March 2021 which comprise the statement of financial activities, the balance sheet, the statement of cash flows, the principal accounting policies and the notes to the accounts. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the accounts:

Basis for opinion

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

Conclusions relating to going concern

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 charitable company’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.

The Sacred Hearts Sisters 1983 Charitable Fund 21

Independent auditor’s report 31 March 2021

Other information

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

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

We have nothing to report in this regard.

Matters on which we are required to report by exception

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

Responsibilities of trustees

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

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

The Sacred Hearts Sisters 1983 Charitable Fund 22

Independent auditor’s report 31 March 2021

Auditor’s responsibilities for the audit of the financial statements

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

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

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

The Sacred Hearts Sisters 1983 Charitable Fund 23

Independent auditor’s report 31 March 2021

Auditor’s responsibilities for the audit of the financial statements (continued)

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

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

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

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

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

The Sacred Hearts Sisters 1983 Charitable Fund 24

Independent auditor’s report 31 March 2021

Use of our report

This report is made solely to the charity’s trustees, as a body, in accordance with section 144 of the Charities Act 2011 and with regulations made under section 154 of that Act. Our audit work has been undertaken so that we might state to the charity’s trustees those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Buzzacott LLP Statutory Auditor 130 Wood Street London EC2V 6DL

28 January 2022

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

The Sacred Hearts Sisters 1983 Charitable Fund 25

Statement of financial activities Year to 31 March 2021

Notes
Unrestricted
funds
£		 Restricted
funds
£		 Total
funds
2021
£		 Unrestricted
funds
£		 Restricted
funds
£		 Total
funds
2020
£
Income from:
Donations and legacies
1
Charitable activities
. Provision of education
2
Other sources
3
. Surplus on disposal of tangible fixed
assets and other property
. Miscellaneous income
Total income
Expenditure on:
Charitable activities
. Provision of education
4
. Support of the sisters and their
ministry
5
Total expenditure
Net income and net movement in
funds
8
Reconciliation of funds:
Fund balances brought forward
at 1 April 2020
Fund balances carried forward
at 31 March 2021
36,217

8,170,974

—
59,468		 3,427
513,718
—
29,244		 39,644
8,684,692
—
88,712		 9,360
8,067,640
44,477
54,240		 24,768
248,972
—
35,011		 34,128
8,316,612
44,477
89,251
8,266,659 546,389 8,813,048 8,175,717 308,751 8,484,468

7,762,845

—		 543,489
—		 8,306,334
—		 7,765,872
8,247		 272,922
—		 8,038,794
8,247
7,762,845 543,489 8,306,334 7,774,119 272,922 8,047,041

503,814
5,730,633		 2,900
690,429		 506,714
6,421,062		 401,598
5,329,035		 35,829
654,600		 437,427
5,983,635
6,234,447 693,329 6,927,776 5,730,633 690,429 6,421,062

All recognised gains and losses are included in the above statement of financial activities.

All of the charity’s activities in the above two financial periods derived from continuing operations.

The Sacred Hearts Sisters 1983 Charitable Fund 26

Balanco shggt 31 Mar¢h 2021 2021 2021 2020 2020 Notes Flxed assets Tangible assets 2,718.975 2.622.983 Curr•nt aaSgt• Debtors Short t8rm depostts Cash at b8nk and in hand 12 775,580 154.075 3,548,340 4,477,995 625.635 154,075 3.210,508 3,99),218 Llabllltle$: Credltors.. amounts f811ing due withln on? year Nèt current assots 13 269,1941 192.1391 4,208,801 3,798,079 Total not 488ets 6,927,776 6,421,062 Th fund• ofth• charfty Restricted funds UnreSt￿cted funds . Tangibje fixed assets fund . General fund 14 893,329 690.429 15 1158.806 4.075,641 2.061,182 3,669,451 6,234,447 6,927,T76 5,730,633 6,421,062 Approved by the trustees and signed on their behalf by.. Sister Catherine Collins Trustee Approved on.. 11 january 2022 The Sacred Hearts Sisters 1983 Chadtable Fund 27

Statement of cash flows Year to 31 March 2021

Notes
2021
£		 2020
£
Cash flows from operating activities:
Net cash provided by operating activities
A
Cash flows from investing activities:
Purchase of tangible fixed assets
Proceeds from the disposal of tangible fixed assets
Net cash used in investing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents at 1 April 2020
B
Cash and cash equivalents at 31 March 2021
B
780,203		 693,639
(442,371)
—		 (645,934)
126,209
(442,371) (519,725)
337,832

3,364,583		 173,914
3,190,669

3,702,415		 3,364,583

Notes to the statement of cash flows for the year to 31 March 2021.

A Reconciliation of net movement in funds to net cash provided by (used in) operating activities

activities
2021
£		 2020
£
Net movement in funds (as per the statement of financial activities)
Adjustments for:
Depreciation charge
Net loss (gains) on disposal of tangible fixed assets
Increase in debtors
Increase in creditors
Net cashprovided by operating activities
506,714
326,495
14,250
(145,353)
78,097		 437,427
297,273
(44,477)
(25,888)
29,304
780,203 693,639

B Analysis of cash and cash equivalents

Analysis of cash and cash equivalents
2021
£		 2020
£
Short term deposits (less than three months)
Cash at bank and in hand
Total cash and cash equivalents		 154,075
3,548,340		 154,075
3,210,508
3,702,415 3,364,583

No separate statement of changes in net debt has been prepared as there is no difference between the movements in cash and cash equivalents and movement in net cash (debt).

The Sacred Hearts Sisters 1983 Charitable Fund 28

Principal accounting policies 31 March 2021

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

Basis of preparation

These accounts have been prepared for the year to 31 March 2021 with comparative information provided in respect to the year to 31 March 2020.

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

The accounts have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (Charities SORP FRS 102), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.

The charity constitutes a public benefit entity as defined by FRS 102.

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

Critical accounting estimates and areas of judgement

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

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

Assessment of going concern

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

The Sacred Hearts Sisters 1983 Charitable Fund 29

Principal accounting policies 31 March 2021

Assessment of going concern (continued)

In making that assessment, the trustees have considered the continuing impact of the Covid-19 pandemic on the charity’s income and expenditure and financial position.

During the year to 31 March 2021, the charity’s schools were closed for a period of time for the majority of pupils. However, during that period the charity has continued to receive the majority of school fees and grant funding from Local Authorities and the ESFA and has continued to pay its staff and suppliers. Since the year end, the schools have continued to operate with minimal financial repercussions as a result of the pandemic.

Undoubtedly there will be some challenges ahead due to the continuing pandemic but the trustees do not expect material concerns to arise over the charity’s financial position or going concern.

The trustees have concluded that the charity will have sufficient resources to meet its liabilities as they fall due.

Income recognition

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

Income comprises donations, legacies, investment income and interest receivable, income from charitable activities and other income including the surplus on the disposal of tangible fixed assets and other property.

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

Donated services and facilities provided to the charity are recognised in the period when it is probable that the economic benefits will flow to the charity, provided they can be measured reliably. This is normally when the service is provided, or the facilities are used by the charity. An equivalent amount is included as expenditure.

Donated services and facilities are recognised on the basis of the value of the gift to the charity which is the amount the charity would have been willing to pay to obtain facilities or services of equivalent economic benefit on the open market.

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

Legacies are included in the statement of financial activities when the charity is entitled to the legacy, the executors have established that there are sufficient surplus assets in the estate to pay the legacy, and any conditions attached to the legacy are within the control of the charity.

The Sacred Hearts Sisters 1983 Charitable Fund 30

Principal accounting policies 31 March 2021

Income recognition (continued)

Entitlement is taken as the earlier of the date on which either: the charity is aware that probate has been granted, the estate has been finalised and notification has been made by the executor to the charity that a distribution will be made, or when a distribution is received from the estate. Receipt of a legacy, in whole or in part, is only considered probable when the amount can be measured reliably and the charity has been notified of the executor’s intention to make a distribution. Where legacies have been notified to the charity, or the charity is aware of the granting of probate, but the criteria for income recognition have not been met, then the legacy is treated as a contingent asset and disclosed if material. In the event that the gift is in the form of an asset other than cash or a financial asset traded on a recognised stock exchange, recognition is subject to the value of the gift being reliably measurable with a degree of reasonable accuracy and the title of the asset having being transferred to the charity.

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the bank.

Income from charitable activities comprises fees and related charges for the provision of education. In addition to fees and related charges in respect to the provision of education, the charity’s two schools receive grants from the Department for Education and other trusts and foundations.

Income derived from the levying of fees and charges for the provision of education is measured at the fair value of the consideration received or receivable, excluding discounts and rebates.

Grants from government departments and other trusts and foundations have been included as income from charitable activities where these amount to a contract for services, but as donations where the money is given in response to an appeal or with greater freedom of use, for example monies for core funding.

Income from other sources includes the surplus on the disposal of tangible fixed assets and property assets and miscellaneous income. The surplus on the disposal of tangible fixed assets and property assets is measured at fair value being the difference between the disposal proceeds and the net book value of the assets at the time of sale less any costs associated with the disposal. Such income is accounted for on an accruals basis and is accrued for with effect from the date on which the income is receivable under a signed contract for sale.

Income arising from the disposal of interests in land, including the sale of land subject to a reversionary clause in favour of the charity, are accounted for in accordance with the legal agreements relating to such disposals. The amounts receivable are measured at fair value and accounted for when the amounts due are capable of such measurement and when receipt is probable. In reality, this is on the legal completion of the sale of the relevant land.

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

The Sacred Hearts Sisters 1983 Charitable Fund 31

Principal accounting policies 31 March 2021

Expenditure recognition

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

All expenditure is incurred on charitable activities on an accruals basis. Expenditure comprises direct costs and support costs. All expenses, including support costs, are allocated or apportioned to the applicable expenditure headings.

Expenditure on charitable activities includes all costs associated with furthering the charitable purposes of the charity through the provision of education. Such costs included in providing education at the charity’s two schools for children with special needs include:-

All expenditure is stated inclusive of irrecoverable VAT.

Allocation of support and governance costs

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

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

Support costs and governance costs are apportioned directly to the activity to which they relate or an allocation is made based on the proportion of the direct expenditure on each activity.

The Sacred Hearts Sisters 1983 Charitable Fund 32

Principal accounting policies 31 March 2021

Tangible fixed assets

The freehold of the land and buildings legally owned by the charity and occupied rent free on behalf of the trustees of the governing bodies of Catholic voluntary-aided schools, which are separate charities and publicly funded, are valued at £nil. The trustees consider that no meaningful value can be attributed to these assets, since they are not used directly by the charity, do not generate income and cannot be disposed of in the open market or put to alternative use while such occupation, which may be indefinite, continues.

The original land and buildings were financed and provided by the Congregation and as such the assets were transferred to the CIO at 31 March 2019. Expenditure to adapt and improve the buildings financed directly by the schools is capitalised in these accounts. Such improvements are depreciated at between 2% and 10% per annum.

The specialist cycle track at Pield Heath School is depreciated at 5% per annum (i.e. over 20 years) on a straight line basis.

Major building improvements are capitalised and depreciated on a straight line basis at a rate of 10% per annum in order to write the improvements off over their estimated useful life to the charity.

Expenditure on the purchase and replacement of items of furniture and equipment, including computer equipment, with a cost in excess of £2,000 is capitalised and depreciated over a three to five year period on a straight line basis.

Motor vehicles are capitalised and depreciated over a four year period on a straight line basis, in order to write off each vehicle over its estimated useful life.

Debtors

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

Cash at bank and in hand

Cash at bank and in hand represents such accounts and instruments that are available on demand or have a maturity of less than three months from the date of acquisition. Deposits for more than three months but less than one year have been disclosed as short term deposits.

The Sacred Hearts Sisters 1983 Charitable Fund 33

Principal accounting policies 31 March 2021

Creditors and provisions

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

Fund accounting

The general fund comprises those monies which may be used towards meeting the charitable objectives of the charity and which may be applied at the discretion of the trustees.

The tangible fixed assets fund represents the net book value of those tangible fixed assets which are not financed out of restricted funds or included in the schools and homes fund.

The designated funds are monies set aside out of general funds and designated for specific purposes, although the trustees may ultimately use such funds for other purposes.

The restricted funds are monies raised for, and their use restricted to, a specific purpose, or donations subject to donor imposed conditions.

Pension costs

Contributions in respect to defined benefit schemes are recognised in the statement of financial activities so as to spread the cost of pensions over employees’ working lives.

Contributions in respect to defined contribution schemes are charged to the statement of financial activities in the year in which they are payable to the schemes.

Services provided by members of the Congregation

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

Operating leases

Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged to the statement of financial activities on a straight line basis over the lease term.

The Sacred Hearts Sisters 1983 Charitable Fund 34

Notes to the accounts 31 March 2021

1 Donations and legacies

Donations and legacies
Unrestricted
funds
£
Restricted
funds
£		 Total
funds
2021
£		 Unrestricted
funds
£
Restricted
funds
£		 Total
funds
2020
£
Total funds:Donations 36,217 3,427 39,644 9,360 24,768
34,128

2 Income from charitable activities

Unrestricted
funds
£
Restricted
funds
£		 Total
funds
2021
£		 Unrestricted
funds
£
Restricted
funds
£		 Total
funds
2020
£
Provision of education
Education fees and charges
Grants, contracts and
agreements
. Department for Education
.. Base Funding
.. Capital improvements grant
.. Looked after Children
… Covid Catch up Premium
… Covid Mass testing Grant
… Mass testing exception
… Schools Emergency support
.... Covid Staff Cover Costs
.. Teachers Pension Grant
.. PE Grant
..Teachers Pay Grant
.. Pupil Premium
Total funds		 6,127,186 — 6,127,186 6,010,134 —
6,010,134
1,982,258
—
—
—
61,530
—
—
—
—
—
—
—		 —
75,150
6,229
11,580
—
11,607
49,793
117,104
102,917
25,653
37,139
76,546		 1,982,258
75,150
6,229
11,580
61,530
11,607
49,793
117,104
102,917
25,653
37,139
76,546		 2,057,506
—
—
—
—
—
—
—
—
—
—
—		 —
56,046
—
—
—
—
—
—
62,609
24,383
30,051
75,883		 2,057,506
56,046
—
—
—
—
—
—
62,609
24,383
30,051
75,883
2,043,788 513,718 2,557,506 2,057,506 248,972
2,306,478
8,170,974 513,718 8,684,692 8,067,640 248,972
8,316,612

3 Income from other sources

Unrestricted
funds
£
Restricted
funds
£		 Total
funds
2021
£		 Unrestricted
funds
£
Restricted
funds
£		 Total
funds
2020
£
Surplus on the disposal of
tangible fixed assets
Other miscellaneous income
Total funds		 —
59,468		 —
29,244		 —
88,712		 44,477
54,240		 —
35,011
44,477

89,251
59,468 29,244 88,712 98,717 35,011
133,728

4 Provision of education

Provision of education
Unrestricted
funds
£
Restricted
funds
£		 Total
funds
2021
£		 Unrestricted
funds
£
Restricted
funds
£		 Total
funds
2020
£
Teaching
Welfare
Premises (including
depreciation)
Management of the Schools
Allocation of support costs
(note 6)
Total funds		 5,601,171
491,395
1,004,576
621,834
43,869		 442,347
30,144
70,953
45
—		 6,043,518
521,539
1,075,529
621,879
43,869		 5,586,476
546,563
1,048,482
529,113
55,238		 240,777
15,560
16,548
37
—
5,827,253

562,123

1,065,030

529,150

55,238
7,762,845 543,489 8,306,334 7,765,872 272,922
8,038,794

The Sacred Hearts Sisters 1983 Charitable Fund 35

Notes to the accounts 31 March 2021

Unrestricted
funds
£
Restricted
funds
£		 Total
funds
2021
£		 Unrestricted
funds
£
Restricted
funds
£		 Total
funds
2020
£
Premises costs
Allocation of support costs
(note 6)
Total funds		 —
—		 —
—		 —
—		 809
7,438		 —
—
809

7,438
— — — 8,247 —
8,247

6 Support costs

Support costs
Provision
of
education
£		 Provision of
care
£		 Support of
sisters and
their
ministry
£		 Total
2021
£		 Basis of apportionment
Legal and professional fees
Governance costs (note 7)
Miscellaneous expenditure		 19,954
23,820
95		 —
—
—		 —
—
—		 19,954
23,820
95		 Pro rata expenditure
Pro rata expenditure
Pro rata expenditure
43,869 — — 43,869
Provision of
education
£		 Provision of
care
£		 Support of
sisters and
their
ministry
£		 Total
2020
£		 Basis of apportionment
Legal and professional fees
Governance costs (note 7)
Miscellaneous expenditure		 31,238
24,000
—		 —
—
—		 4,395
3,000
43		 35,633
27,000
43		 Pro rata expenditure
Pro rata expenditure
Pro rata expenditure
55,238 — 7,438 62,676

7 Governance costs

Governance costs
Unrestricted
funds
£
Restricted
funds
£		 Total
funds
2021
£		 Unrestricted
funds
£
Restricted
funds
£		 Total
funds
2020
£
Total funds:
Auditor’s remuneration		 23,820 — 23,820 27,000 —
27,000

8 Net income and net movement in funds

This is stated after charging:

Net income and net movement in funds
This is stated after charging:
Total
2021
£		 Total
2020
£
Staff costs (note 9)
Auditor’s remuneration:
. Statutory audit – overall accounts
. Non-statutory audit – schools and homes
Depreciation
Operatinglease rentals		 6,658,054
4,260
19,560
326,495
35,259		 6,343,402
3,000
24,000
297,273
37,656

The Sacred Hearts Sisters 1983 Charitable Fund 36

Notes to the accounts 31 March 2021

9 Staff costs and remuneration of key management

Staff costs and remuneration of key management
2021
£		 2020
£
Staff costs during the year were as follows:
Wages and salaries
Social security costs
Other pension costs
Payments to agency staff
Apprenticeship levy		 5,101,974
438,384
528,455		 4,848,932
409,262
478,160
6,068,813
575,024
14,217		 5,736,354
593,586
13,462
6,658,054 6,343,402

Payments to agency staff reflect the cost of supply teaching staff and agency nurses used because of difficulties recruiting permanent employees as a result of the national shortage of such staff.

2021
£		 2020
£
Staff costs per function were as follows:
Provision of education		 6,658,054 6,343,402
6,658,054 6,343,402

There were 5 employees (2020 – three) who earned between £60,000 and £70,000 per annum and 1 employee (2020 – 1 between £80-90,000) who earned between £90,000 and £100,000 per annum (excluding employer’s pension contributions but including taxable benefits) during the year. Employer’s pension contributions into the defined benefit scheme for those employees totalled £98,164 (2020 - £56,382).

The average number of employees, analysed by function, was:

The average number of employees, analysed by function, was:
2021
No.		 2020
No.
Provision of education 205 203

During the year, the key management personnel of the charity in charge of directing and controlling, running and operating the charity on a day to day basis comprised the trustees, the governors of the schools and Headteachers of the schools. During the year ended 31 March 2019, the Care Manager of the care home was also a member of the key management personnel.

No trustee or governor received any remuneration in respect to their services during the year (2020 - £nil) nor any reimbursements of expenses (2020 - £nil).

The total remuneration (including taxable benefits and employer's pension contributions) of the key management personnel for the year was £220,791 (2020 - £209,398).

10 Taxation

The Sacred Hearts Sisters 1983 Charitable Fund is a registered charity and, therefore, is not liable to income tax or corporation tax on income or gains derived from its charitable activities, as they fall within the various exemptions available to registered charities.

The Sacred Hearts Sisters 1983 Charitable Fund 37

Notes to the accounts 31 March 2021

11 Tangible fixed assets

Freehold
land and
buildings
£
Furniture &
equipment
£		 Motor
vehicles
£		 Total
£
Cost
At 1 April 2020
Additions
Disposals
At 31 March 2021
Depreciation
At 1 April 2020
Charge for the year
On disposals
At 31 March 2021
Net book values
At 31 March 2021
At 31 March 2020		 3,938,070
329,940
(52,975)		 688,309
106,797
(18,277)		 188,911
—
—		 4,815,290
436,737
(71,252)
4,215,035 776,829 188,911 5,180,775
1,681,324
183,127
(42,380)		 352,023
135,012
(14,622)		 158,960
8,356
—		 2,192,307
326,495
(57,002)
1,822,071 472,413 167,316 2,461,800
2,392,964 304,416 21,595 2,718,975
2,256,746 336,286 29,951 2,622,983

As permitted under Financial Reporting Standard 102, the charity has continued to adopt a policy of not revaluing its tangible fixed assets. The book value of the land and buildings is based on cost, or where cost is not available, at a trustees’ valuation made in 1996. As permitted by FRS 102, with effect from 1 April 2014, the values assigned to these properties are now deemed to be their cost. Other tangible fixed assets are stated at cost.

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

Certain of the charity’s properties are subject to covenants which restrict their use and disposal.

12 Debtors

Debtors
2021
£		 2020
£
Education fees and charges
Prepayments and accrued income
Other debtors		 513,219
71,020
191,341		 548,510
73,370
3,755
775,580 625,635

13 Creditors: amounts falling due within one year

Creditors: amounts falling due within one year
2021
£		 2020
£
Social security and other taxes
Accruals and deferred income
Other creditors		 60,980
40,781
167,433		 —
132,010
60,129
269,194 192,139

The Sacred Hearts Sisters 1983 Charitable Fund 38

Notes to the accounts 31 March 2021

14 Restricted funds

The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust to be applied for specific purposes:

At 1
April
2020
£		 Income
£		 Expenditure
£		 At 31
March
2021
£
Capital grants fund
St John’s R.C. Special School development fund
Pield Heath House School appeal fund
Pield Heath House School cycle track and mobility
training centre fund
Other restricted funds		 148,221
50,801
104,409
184,703
202,295		 75,151
—
534
—
470,704		 (39,532)
(14,839)
(7,231)
(13,193)
(468,694)
183,840

35,962

97,712

171,510
204,305
690,429 546,389 (543,489) 693,329
At 1
April
2019
£		 Income
£		 Expenditure
£		 At 31
March
2020
£
Capital grants fund
St John’s R.C. Special School development fund
Pield Heath House School appeal fund
Pield Heath House School cycle track and mobility
training centre fund
Other restricted funds		 126,641
66,580
104,383
197,896
159,100		 56,046
—
4,536
—
248,169		 (34,466)
(15,779)
(4,510)
(13,193)
(204,974)
148,221

50,801

104,409

184,703
202,295
654,600 308,751 (272,922) 690,429

The specific purposes for which the funds are to be applied are as follows:

This fund represented the liability of the trustees to repay to Government Departments any grants made from public funds towards the capital costs of buildings, additions or improvements thereto, such grants being subject to an undertaking to repay in the event of the asset ceasing to be used for the purpose for which the grant was made.

This fund was established in 1994 to raise monies to enhance the development of St John’s School.

This fund was established as a separate fund on 3 November 1988. The fund consists of monies donated to the appeal specifically set up to raise and manage funds required to finance the redevelopment and maintenance of the school buildings, and any other improvements, which from time to time may be necessary. Appeal funds may also be used for any purpose connected with the school, its equipment and pupils, at the discretion of the appeal committee.

In the event that the appeal fund is dissolved for any reason, any assets remaining shall be given to the school for its general purposes.

In the event that the premises no longer function as a school, the monies may be used at the discretion of the trustees of the Sacred Hearts Sisters 1983 Charitable Fund.

Transfers from the fund represent expenditure on tangible fixed assets. When the asset is purchased, an amount equal to its cost is released to unrestricted funds.

The Sacred Hearts Sisters 1983 Charitable Fund 39

Notes to the accounts 31 March 2021

14 Restricted funds (continued)

These funds comprise grants and donations received mainly in order to fund events at, and the purchase of equipment within, certain of the charity’s homes and schools.

15 Tangible fixed assets fund

Tangible fixed assets fund
Total
2021
£		 Total
2020
£
At 1 April 2020
Net movement in year
At 31 March 2021		 2,061,182
97,624		 81,730
1,979,452
2,158,806 2,061,182

The tangible fixed assets fund represents the net book value of the charity’s tangible fixed assets which have not been financed out of restricted funds or the schools and home fund. A decision was made to separate this fund from the other funds of the charity in recognition of the fact that the tangible fixed assets are essential to the day to day work of the charity and as such their value should not be regarded as funds that would be realisable with ease, in order to meet future contingencies.

16 Analysis of net assets between funds

General
fund
£		 Tangible
fixed
assets
fund
£		 Designated
funds
£		 Restricted
funds
£		 Total
2021
£
Fund balances at 31 March 2021 are
represented by:
Tangible fixed assets
Net current assets
Total net assets		 —
4,075,641		 2,158,806
—		 —
—		 560,169
133,160		 2,718,975
4,208,801
4,075,641 2,158,806 — 693,329 6,927,776
General
fund
£		 Tangible
fixed
assets
fund
£		 Designated
funds
£		 Restricted
funds
£		 Total
2020
£
Fund balances at 31 March 2020 are
represented by:
Tangible fixed assets
Net current assets
Total net assets		 —
3,669,451		 2,061,182
—		 —
—		 561,801
128,628		 2,622,983
3,798,079
3,669,451 2,061,182 — 690,429 6,421,062

The Sacred Hearts Sisters 1983 Charitable Fund 40

Notes to the accounts 31 March 2021

17 Pension commitments

Retirement benefits for academic employees of the charity's Schools are provided by a defined benefit scheme, the Teachers’ Pension Scheme (TPS), which is funded by contributions from the charity and the employees.

The Teachers' Pension Scheme (TPS) is a statutory, contributory, defined benefit scheme, governed by the Teachers’ Pension Scheme Regulations 2014. Membership is automatic for fulltime teachers in academies and, from 1 January 2007, automatic for teachers in part-time employment following appointment or a change of contract, although they are able to opt out.

The TPS is an unfunded scheme and members contribute on a ‘pay as you go’ basis – these contributions along with those made by employers are credited to the Exchequer. Retirement and other pension benefits are paid by public funds provided by Parliament.

Valuation of the Teachers’ Pension Scheme

The valuation of the TPS is carried out in line with regulations made under the Public Service Pension Act 2013. Valuations credit the teachers’ pension account with a real rate of return assuming funds are invested in notional investments that produce that real rate of return.

The latest actuarial review of the TPS was carried out as at 31 March 2016. The valuation report was published by the Department for Education (the Department) in April 2019. The valuation reported total scheme liabilities (pensions currently in payment and the estimated cost of future benefits) for service to the effective date of £218 billion, and notional assets (estimated future contributions together with the notional investments held at the valuation date) of £198 billion giving a notional past service deficit of £20 billion.

As a result of the valuation, new employer contribution rates were set at 23.68% of pensionable pay from September 2019 onwards (compared to 16.48% during 2018/19). DfE has agreed to pay a teacher pension employer contribution grant to cover the additional costs during the 2020-21 academic year.

A full copy of the valuation report and supporting documentation can be found on the Teachers’ Pension Scheme website.

Under the definitions set out in FRS 102, the TPS is an unfunded multi-employer pension scheme. The charity has accounted for its contributions to the scheme as if it were a defined contribution scheme.

The contributions payable to the Scheme for the year were £420,793 (2020 - £367,161).

The Sacred Hearts Sisters 1983 Charitable Fund 41

Notes to the accounts 31 March 2021

18 Operating lease commitments

At 31 March 2021, the charity had the following future minimum commitments under noncancellable leases:

Equipment Equipment
2021
£		 2020
£
Operating lease payments due:
. Within one year
. One to two years
. Two to five years		 30,210
30,210
62,443		 31,267
31,087
76,174
122,863 138,528

19 Related party transactions

The trustees of the Charitable Trust are also the trustees of the Sisters of the Sacred Hearts of Jesus and Mary CIO, (Charity Registration Number: 1179804). With effect from midnight on 31 March 2019, certain of the activities, assets and liabilities of the Charitable Trust were transferred to the CIO in accordance with a legal transfer of undertakings deed.

During the year the Charitable Trust paid the CIO £7,654 (2020 - £7,140) towards staffing costs borne by the CIO in administering the Charitable Trust. The Charitable Trust paid the CIO £290,000 (2020 - £290,000) in the year as a rental for the 2 schools buildings occupied under licence by the Charitable Trust along with a payment of a salary for one sister who remains employed by the Charitable Trust of £75,914 (2020 - £73,855). The CIO donated £31,931 (2020 - £nil) to one of the schools within the Charitable Trust during the year to assist towards staffing costs.

There were no other related party transactions during the year which require disclosure (2020 – none).

20 Other connected entities

Harmony House Dagenham Community Interest Company (Company No. 06565448 (England and Wales)) works in partnership with the Local Authority, Community and Voluntary organisations in delivering a range of community based services and projects. For several years it has been at the forefront of support provision for refugees and other immigrant groups. It provides also childcare services including a nursery for children aged 3 months to 5 years and services for older people in the borough. Several of the trustees of the charity are directors of the Community Interest Company.

21 Contingent liability

A contingent liability arises in respect of allegations concerning the standard of care provided to children at the Congregation's schools between approximately 1960 and 1980. The amount involved cannot be quantified, but the trustees deny any liability based on the facts available to them.

The Sacred Hearts Sisters 1983 Charitable Fund 42

Notes to the accounts 31 March 2021

22 Ultimate control

The charity, which is constituted as a trust, was controlled throughout the period by the Sisters of the Sacred Hearts of Jesus and Mary by virtue of the fact that the members of the Congregation and/or the Superior General appoint the trustees. The Congregation within the United Kingdom does not hold any assets, incur liabilities or enter into transactions in its own right. Assets and liabilities of the Congregation in the United Kingdom are vested in the trustees of the charity, who undertake all transactions entered into in the course of the Congregation’s charitable activities in the United Kingdom.

The Sacred Hearts Sisters 1983 Charitable Fund 43